News & Changes

Pension Fund Notice of Election of Funding Relief

Last June, Congress passed a law that provides relief from certain funding requirements for eligible multiemployer plans under certain conditions..  The relief gives plans a longer period to overcome the investment losses that they suffered in 2008 and early 2009 for the purposes of meeting statutory minimum funding requirements.  For a plan to qualify for relief, its actuary has to certify that the plan is projected to have enough assets to cover all benefit payments and expenses for the extended funding period.

We are pleased to report that, based on our actuary's report, our plan qualifies for the relief.  We have decided to use the following elements of the new funding relief:

  1. The investment losses that the Plan incurred for the plan year ending June 30, 2009 will be amortized over up to 29 years, rather than the 15-year period that the regular rules would have required, and
  2. The Plan will adjust the asset value that is used for minimum funding purposes as of July 1, 2009 to recognize the recent investment losses over a 10 year, rather than the usual 5-year, period to smooth out or lessen the negative effect on the Plan's assets.

By choosing to use this funding relief, the annual minimum required contribution is lower than what it would otherwise have been and we were able to keep the plan in the green zone for at least an extra year.  The decision to use the relief means that, for up to the next six plan years (i.e., until July 1, 2017), the plan cannot be amended to increase benefits unless there are new contributions to pay for such increase or the Trustees elect to opt-out at an earlier date.

If you have questions about this or any other aspect of the Pension Fund, please contact Mr. Peter Sclafani, Executive Director, 12 Edison Place, Springfield, NJ 07081, (973) 376-7230.

Please click here for the notice

Share this Post: