This Summary of Plan Changes explains improvements to the Plan formula that your Pension Plan’s union-employer Board of Trustees has adopted to increase the benefit percentages that working participants earn for covered work in 2007 and 2008:
- For covered work performed during calendar year 2007, the benefit percentage was raised from 1.20% to 1.65%. The percentage is not affected by years of service.
- For covered work performed during calendar year 2008, the benefit percentage goes up again. If you have 20 or fewer years of service before 2008, your benefit percentage for 2008 will be 2.00%. If you have more than 20 years of service before 2008, your benefit percentage for 2008 will be 2.65%.
There has been no change in the benefit percentage that applies to covered work performed after December 31, 2008. For covered work performed during calendar year 2009 and beyond, the benefit percentage remains 1.20%. The percentage is not affected by years of service.
Also, benefit amounts earned before the changes are not affected in any way. And current retirees will continue to receive the benefits promised to them at retirement.
Changes to the Plan’s benefit percentages are made possible by the financial performance of your Pension Plan in recent years, as determined by the Funding Policy of the Trust. The Trustees will continue to monitor the funding status of your Pension Plan with an eye to future changes in the Plan’s benefit percentages when the financial performance of the Plan permits.
Contact your Administrative Office if you have questions about how the changes apply to you.