Variable Annuity Plan. As of the effective date of the new future service defined benefit variable annuity plan (VAP), future service benefit accruals will be earned in the VAP, a multiemployer variable annuity defined benefit plan. Participants’ service earned under the Sound Retirement Trust (SRT) and the VAP will be recognized for participation, vesting and benefit eligibility purposes in both plans. In the event of a short plan year running from the transfer date to December 31, the benefit guarantee will apply for the short plan year and the subsequent initial full plan year ending December 31, 2021. The VAP shall operate on a calendar plan year basis.
Variable Annuity Plan. As of the effective date of the VAP for this Employer unit, future service benefit accruals will be earned in the VAP, a multiemployer variable annuity defined benefit plan. Participants’ service earned under the SRT and the VAP will be recognized for participation, vesting and benefit eligibility purposes in both plans. In the event of a short plan year running from the transfer date to December 31, the benefit guarantee will apply for the short plan year and the subsequent initial full plan year ending December 31, 2022. The VAP shall operate on a calendar plan year basis. The Employer will contribute one dollar and twenty-five cents ($1.25) per hour for each eligible active participant to the VAP, commencing with the effective date. Effective April 1, 2022, that rate will be increased by five cents ($.05) per hour, and by another five cents ($.05) per hour effective April 1, 2023. Contributions will be made on behalf of current active employees and future newly hired employees in classifications for whom contributions have been made under the current collective bargaining agreement. Salary shall be gross wages per payroll period. Contributions shall be remitted monthly, in the same manner as they have been made to the SRT. The benefit accrual under the VAP will be periodically reviewed (but at least every three years) to ensure that the plan is designed to maintain full funding of all benefit liabilities, with the first review no later than December 31, 2021. All actuarial assumptions of the plan will be reviewed and adjusted as necessary on an annual basis for the term of this CBA. In addition, the Employer will contribute three cents ($.03) per hour for each eligible active participant to the VAP, commencing with the effective date of the VAP through December 31, 2021. The Employer agrees to promptly provide, on a periodic basis, such salary data for employees intended to be covered by the VAP to allow the actuaries for the parties developing the VAP to determine the benefit accrual rate from the VAP that can be funded with such contributions determined above and in the future as the VAP operates to allow administration of the VAP. The VAP board of trustees will formulate a stabilization reserve policy which will define the board’s discretion to manage the stabilization reserve and determine how and when it is used to support benefit accruals in years in which the plan investments underperform the hurdle rate. The Employer will contribute to the stabi...
