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Plan Improvement - January 2001

On January 18, 2001, the Board of Trustees adopted an amendment to the Plan of Benefits that increased the benefit accrual rate for current active participants, whose retirement dates are on or after January 1, 2001.

The amendment increased the benefit accrual rate for all contributions for service prior to January 1, 2001 to 3.5%, provided a participant had earned at least 1,000 hours of Credited Future Service during the year 2000, or the participant earns at least 1,000 hours of Credited Future Service in a calendar year after January 1, 2001 and prior to his or her retirement date.

If the participant did not accrue 1,000 hours of Credited Future Service in the year 2000, and does not accrue 1,000 hours in any future year before retirement, his or her benefit will be calculated at the rate in effect prior to January 1, 2001, that is, 3.4% for service prior to January 1, 1999 and 3.3% for service from January 1, 1999 to January 1, 2001.

The accrual rate for contributions for service on or after January 1, 2001 remains at 3.3%, preserving the Board's ability to increase the value of that service in the future, when and if it is prudent to do so.

This increase is limited to active participants to assure that it benefits those who are currently supporting the Fund. Plan participants who have left the Fund, and who do not return, maintain the level of benefits in effect when they last participated.

Examples:

  1. Participant A has worked through December 31, 2000, with 1,000 hours of Credited Future Service for the calendar year 2000, and continues to work after that date. His or her accrual rate is 3.5% on all service prior to January 1, 2001, and 3.3% for service after that date.

    2.  

  2. Participant B has worked through December 31, 1999, with no Credited Future Service after that date; his or her accrual rate is 3.4%. If Participant B returns to work after January 1, 2001 and earns at least 1,000 hours of Credited Future Service in a calendar year, his or her accrual rate for the earlier service will become 3.5%, and for service earned after January 1, 2001 the accrual rate is 3.3%. If Participant B returns to work after January 1, 2001 but earns less than 1,000 hours of Credited Future Service in a calendar year, his or her accrual rate remains at 3.4%.

    3.  

  3. Participant C has worked through December 31, 2000, with less than 1,000 hours of Credited Future Service for the calendar year 2000. His or her accrual rate is 3.4% for Credited Future Service through December 31, 1999 and 3.3% for Credited Future Service after that year.  However, if Participant C earns at least 1,000 hours of Credited Future Service in any calendar year prior to retirement, the accrual rate for his or her earlier service will become 3.5%, and for service earned after January 1, 2001 the accrual rate is 3.3%.

 

These are examples only. They assume the Participant meets all other Plan criteria for benefit. If you have specific questions about your hours or benefit, please contact:

Participant Records Department
Central Pension Fund
4115 Chesapeake St. N.W.
Washington DC 20016

Tel: (202) 362-1000
Office Hours: 7:30 - 4:00 EST