Dec 2009 Vol. 12 No. 12

Pension future benefit changes to be discussed

Pension meetings in early 2010

In January and February, NCCRC Executive Officer Bob Alvarado, joined by Gene Price, Administrator of the Carpenters Pension Trust Fund, will hold a series of meetings to discuss required changes to the pension fund. The changes to future accruals and funding are necessary to offset the current “critical” status of the fund’s investments under requirements put in place during President Bush’s Administration. Anyone who is currently retired and receiving a monthly benefit payment from the Pension Fund will continue to receive their monthly checks without interruption.

Each year the Pension Protection Act requires the Carpenters Pension Trust Fund for Northern California to perform a financial review and certify the status of the Fund. On December 23, 2009, a letter will be sent by the Fund Office advising the results of the annual Zone Certification for fiscal year beginning September 1, 2009. That notice will advise interested parties that, as a result of the investment earnings over the past two years, the Plan is certified as being labeled in critical status, or as being in the Red Zone. Plans that are certified in the Red Zone are required to develop a Rehabilitation Plan to address funding issues.

The Bargaining Parties have met to develop a Rehabilitation Plan, and that plan will be presented in the series of meetings scheduled throughout Northern California. You and your spouse are encouraged to attend one of these meetings where the details of the Plan will be discussed. The Rehabilitation Plan is intended to continue providing meaningful pension security from a financially secure Fund. To achieve this goal, some changes to future accruals and funding will be discussed.

We understand that any discussion regarding the financial status of the Pension Plan can be alarming, particularly for current retirees receiving monthly benefit payments. While future changes are required to ensure compliance with financial measurements established by the Pension Protection Act, if you are currently retired and receiving a monthly benefit payment from the Pension Fund, your monthly check will continue uninterrupted.

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