Graphic Communications Conference of the International Brotherhood of Teamsters
National Pension Fund
Fund Enters Critical Status Effective May 1, 2008: Board of Trustees Adopts and Implements Rehabilitation Plan
On Tuesday, August 28, 2007, the Fund's Actuary certified the GCC/IBT-NPF would enter Critical Status, as defined under the Pension Protection Act of 2006 ("PPA"), at the begining of its next Plan year starting May 1, 2008. As required by the provisions of PPA: 1) a Notice announcing the Certification was mailed to all affected parties on SEPTEMBER 12, 2007, and 2) the Board of Trustees has adopted a Rehabilitation Plan projecting the Fund will emerge from Critical Status within a 10 year period; and 3) the Rehabilitation Plan was implemented May 1, 2008.
If you were a Retire or Beneficiary receiving benenfits or if you had filed your Application for Retirement - Part "A" with the Fund Office on or before September 12, 2007, you are not affected by the Rehabilitation Plan.
GCIU Local 20-B Retirement Benefit Plan Merges Into GCC/IBT-NPF
Effective May 1, 2008, the GCIU Local 20-B Retirement Benefit Plan has merged into the GCC/IBT-NPF. Due to the size of the 20-B Plan, there was a need to merge into a larger fund such as the GCC/IBT-NPF, so as to capitalize on the economies of scale in the operation of the pension plan. The $12 million 20-B Plan as approximately 550 Retirees, 330 Deferred Vested Participants and 60 Active Participants. The nearly $1 billion GCC/IBT-NPF has approximately 20,000 retirees, 13,000 Deferrred Vested Participants and 7,000 Active participant. The merger is expected to be seemless.
Notice of New 75% Joint and Survivor Form of Benefit effective for Retirements on or after May 1, 2009
Please be advised that the Board of Trustees of the GCC/IBT-NPF, on January 27, 2009, approved a change to the Fund’s Pension Plan adding a new Form of Benefit.
The Trustees took action to amend the Pension Plan to provide, in addition to the 50% Joint and Survivor Benefit, a 75% Joint and Survivor Benefit available to all Participants who are married at the date of retirement and are eligible, and retire, on or after May 1, 2009. Under the current 50% Joint and Survivor Benefit, a Participant receives, for as long as the Participant lives, a monthly benefit upon retirement, but after the Participant's death 50% of the Participant's benefit is then paid to the Participant's spouse for the rest of his or her life.
Under the New Form of Benefit, known as the 75% Joint and Survivor Benefit, upon the death of the Participant, the surviving spouse will receive 75% of the Participant's benefit for as long as the spouse lives. Upon election of the 75% Joint and Survivor Benefit, the Participant's monthly benefit will be actuarially reduced based on the Participant's age and the spouse's age at the date of retirement.
Board of Trustees Elect to Defer Immediate Changes to Rehabiliatation Plan and Lengthen its Duration by Three Years Pursuant to Worker, Retiree, and Employer Recovery Act of 2008 (WRERA)
On July 29, 2009, the Board of Trustees of the GCC/IBT-NPF formally filed the Fund's election with the Internal Revenue Service to take advantage of the options available under WRERA. This action provides additional time to asses the following: 1) whether Congress will pass additional legislative relief being considered; 2) the impact of any new legislation on the Fund's particular circumstances; and 3) the impact that any economic recovery might have on the Fund's investments.
Pension Protection Act of 2006 Mandates Further Changes to the GCC/IBT National Pension Fund's Retirement Plan in Order to Forestall Insolvency
The Board of Trustees has adopted an Amended Rehabilitation Plan effective May 1, 2011. Notwithstanding implementation of the original Rehabilation Plan and a favorable 18% return on investments for the Plan Year ended April 30, 2010, the Fund, like most other pension plans, has been unable to make up ground from the near 40% combined decline in the Fund's asset base experienced during the Plan Years ending April 30, 2008 and 2009.
After extensive review and deliberation, the Board of Trustees has now determined that it would be unreasonable to conclude that the Fund will emerge from Critical Status.
The Pension Protection Act of 2006 now requires the Board of Trustees to amend the Fund's existing Rehabilitation Plan by taking reasonable measurs in order to forestall the insolvency of the Fund. Therefore, the Trustees have adopted an Amended Rehabilitation Plan that provides for contribution increases and benefit adjustments that will preserve participation in the Fund, and which is designed to forestall insolvency
Retirees, beneficiaries and eligible Participants who file their Application for Retirement - Part "A" by April 30, 2011 requesting a retirement effective date of May 1, 2011 will not be affected by any of the changes called for in the Amended Rehabilitation Plan.
Board of Trustees Conclude evaluation of Multiemployer Pension Relief Act (MPRA) -- No action expected
As noted in last years Pension Communicator, the Board of Trustees of the GCC/IBT-NPF has concluded its evaluation of the relief mechanisms available under MPRA and has concluded that hte Fund does not meet the criteria necessary to qualify for relief under the law. Therefore, there will be no changes to the benefit structure at this time.