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 BenefitsBoard approves new benefit formula (July 2007) By Lionel Railton, CEB, PPAC, Administrator EAs discussed at the 2006 province-wide special membership meetings, the Operating Engineers’ Pension Plan has achieved fully funded status and, in keeping with the principle of certainty, the Board, at the recommendation of the plan’s actuary and advisors, filed the Plan’s April 30, 2006 Valuation Report and new Benefit Formulary Resolutions with the Provincial Regulator for approval. The new benefit formulary is reflective of the plan’s ability to fund and pay pension benefits in a persistent low- interest rate environment. Regulator approval of the new formulary was received in January of this year. The new formulary will apply to pension credits earned from May 1, 2007 forward. Accrued pension benefits earned to date are unaffected. The new formulary is based on contributions received and sees the elimination of the “200-Hour Bands” of the old pension formulary. Members will receive credit for all employer contributions received by the plan. As in the past, the maximum annual pension benefit amount a member can earn in a plan year is based on 3,000 hours of employer and or self-pay contributions in a plan year. A plan member can still self-pay for additional pension benefit provided the plan has received 100 hours of employer contributions in the plan year. These new benefit formularies are reflective of the advice received by our members, beneficiaries and professionals wherein you told us you prefer a conservative approach to plan design and funding, providing the greatest level of certainty that is within the trustees’ control. New Operating Engineers’ Pension Plan booklets will be distributed by mail once printing is complete. As always, if we can be of assistance, please do not hesitate to call upon us at the Plan Office and we would be happy to respond to your inquiry. Best wishes for a happy and safe summer. |
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