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GENERAL QUESTIONS What Type of Pension Plan Is the Central Pension Fund? The Central Pension Fund is a defined-benefit plan. What is the connection between the Central Pension Fund and the International Union of Operating Engineers (IUOE)? The Central Pension Fund and the IUOE are separate legal entities, but participation in the Central Pension Fund is limited to individuals represented by the IUOE. Does any portion of union dues go to the Central Pension Fund? No. Contributions from Participating Employers on behalf of participants are the sole contributory source for CPF. No individual contributions are permitted. How is the Fund Administered? The Fund is administered by the Board of Trustees, half of whom represent the Participating Employers and half of whom represent the Participating Employees. The Trustees hire a staff which is under the direction of a salaried Chief Executive Officer who reports directly to the Board of Trustees. The Board of Trustees also retain legal counsel, actuary, consultants and auditors as needed in order to perform the tasks assigned to them by the Trust agreement and the Employee Retirement Income Security Act (ERISA) of 1974. The Board of Trustees are the Administrators of the Plan. The Plan is called the Central Pension Fund of the International Union of Operating Engineers and Participating Employers. Its business address is 4115 Chesapeake Street, N.W., Washington, D.C. 20016-4665, the telephone number is (202) 362-1000, fax number is (202) 364-2913. Who Are The Agents For Legal Service? Mr. Michael R. Fanning, Chief Executive Officer of the Fund is the person designated as agent for service of legal process at 4115 Chesapeake Street, N.W., Washington, D.C. 20016-4665. What Is the PBGC and What Does it Do? Benefits under this Plan are insured by the Pension Benefit Guaranty Corporation (PBGC), if the Plan terminates. Generally, the PBGC guarantees most vested normal age retirement benefits, early retirement benefits and certain disability and survivor pensions. However, the PBGC does not guarantee all types of benefits under covered plans; and the amount of benefit protection is subject to certain limitations. The PBGC guarantees vested benefits at the level in effect on the date of plan termination. However, if benefits have been increased within five years before it terminates, the whole amount of the plan's vested benefits or the benefit increase may not be guaranteed. In addition, there is a ceiling on the amount of monthly benefits the PBGC guarantees which is adjusted periodically. Currently, the PBGC's maximum guarantee limit is $16.25 per month times a participant's years of service. For more information on the PBGC insurance protection and its limitations, ask your Plan Administrator or the PBGC's . Inquiries to the PBGC should be addressed to the Technical Assistance Division, PBGC, 1200 K Street, N.W., Suite 930, Washington, D.C. 20005-4026. The PBGC may also be reached by calling (202) 326-4000 (not a toll free number). Additional information is available through the PBGC's web site at http://www.pbgc.gov. How Is The Plan Funded? The Plan is funded by employer contributions, which are held in trust pursuant to a Trust Agreement between the International Union of Operating Engineers and Participating Employers who have collective bargaining agreements with the International Union of Operating Engineers or affiliated local unions. Contributions are made by Participating Employers under the provisions of their respective Collective Bargaining Agreements. What Is the Source of Contributions? Participating Employers pay a monthly amount based upon the hours worked and/or paid based on the provisions of the relevant Collective Bargaining Agreement. The amounts contributed are pre-tax contributions and are not considered employee wages for purposes of income tax or Social Security Tax. Who manages CPF's assets? CPF's assets are managed by professional managers who follow the investment objectives established by the Board of Trustees. Is the Central Pension Fund Financially sound? Yes. The Central Pension Fund 's vested benefit obligations are fully funded and the Fund is financially sound. How often is the Fund valued? An Actuarial Valuation of this Fund is prepared annually. How often is this Fund audited? This Fund is audited annually, and a financial statement is published in the Central Pension Fund newsletter (CPF Report) once a year. The CPF Report is circulated to all participants. What Is The Plan Year? The Plan Year is February 1 to January 31. Who Sponsors The Plan and Who Makes the Contributions? The Plan is sponsored by the International Union of Operating Engineers and Participating Employers who have signed a Collective Bargaining and/or Participation Agreement(s). The Participating Employers make payments in accordance with the Collective Bargaining Agreement with the Local Union. What is a merged plan? Merged Plans are pension plans which were established independently of the Central Pension Fund and later became a part of this Fund. If you were a participant in a plan that merged into the Central Pension Fund, your benefit will be calculated as specified in the merger agreement. Reciprocity Reciprocity provides a means of combining service credits earned under the Central Pension Fund with service credits earned in other IUOE pension plans that have signed the International Union of Operating Engineers National Reciprocity Agreement (Related Pension Plans), so that you will have a right to a monthly benefit. You could benefit from this provision if your years of Vesting Service have been divided between the Central Pension Fund and one or more Related Pension Plans. The Central Pension Fund uses the pro-rata method in calculating reciprocity. To have a right to a pro-rata monthly benefit you must:
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