SMACNA Council of Chapter representatives - … Council of Chapter representatives . Updated slides NPF Dec 2013 . SMACNA Chapter Reps Dec 2013 1

SMACNA Council of Chapter representatives

Updated slides NPF Dec 2013

SMACNA Chapter Reps Dec 2013 1

Hours & Contributions. Year-over-year the first 7 months 2012 v. first 7 months of 2013: hours -2.55%; contributions + 3.20%. Jan 1, 2013 Actuarial Valuation. The PPA funded % as of 1/1/2013 was 57.4% vs. 56.7% as of 1/1/2012, and --

A. the active count increased year over year from 55,131 to 55,440

B. the three-year average actuarial Market Value Investment Return is 8.25%


Hours & Valuation excerpts

a. Assets as of Jan 1, 2013 at $3.245 bil (audited Financial Statements)

b. Investment Assets as of Nov 15, 2013 over about $3.65 bil

(internal) c. Return on investment as of Dec 31, 2012 on actuarial

Market Value basis was 11.98% [12.66%] d. Return on investments as of Nov 15, 2013 (internal market

basis) was +18%


FINANCIAL UPDATE

Beginning on Jan 1, 2014, NPFs benefit formula (accrual rate) will be the VARIABLE BENEFIT ACCRUAL

RATE, or VBAR for short.


Starting in 2014, the VBAR for each year will be based on the most recent 3-year average market value investment return from the Valuation, as of, January 1 of the preceding year.

Actuary reports the average market value investment return over the 3 most recent years. Valuations come out the fall of each year, using actuarial & Plan data as of the end of the preceding plan year.


Where does VBAR Come From?

For the 2014 Plan Year, the Average Market Value Investment Return for the 3-year period ending Dec 31, 2012 is 8.25%


2010 14.48%

2011 -1.72%

2012 11.98%

Plug the 3-Year Average Return into this Chart


IF, the three-year average market value investment return percentage reported in the preceding Plan Years Actuarial Valuation and Review is:

THEN, the VBAR rate of Accrual for the Plan Year will be:

10% or higher 1.25%

8.5% or higher, but less than 10% 1.0%

6.5% or higher, but less than 8.5% .75%

Greater than 0%, but less than 6.5% .5%

0% or less 0%

Unless investment returns or the active count fall significantly from current levels, it is likely NPF will emerge into Endangered Status.

BARGAINING PARTIES PLEASE NoTE RESTRIcTIoNS oN whAT cAN BE NEGoTIATED IN ENDANGERED STATuS: CANNOT reduce NPF contributions for any participant,

and/or SUSPEND NPF contributions for any time period (like a

probation period) and/or EXCLUDE directly or indirectly younger or newly hired

employees from NPF participation & contributions. SMACNA Chapter Reps Dec 2013 8

ZONE STATUS RESTRICTIONS in 2014

What happens to the Rehab Plan?

Its benefit adjustments are permanent (more or less). The Funding Improvement Plan & schedules will supersede it. Designed to meet annual benchmarks

To increase funded percentage by one-third of the

difference between the starting percentage and 100%, over the 10-year funding improvement period.



Schedules? LIKE WHAT? Law:

Why does NPF send EMPLOYERS all these

Notices, Notices, Notices?

[email protected] [email protected]


mailto:[email protected]:[email protected]

THE SMART PROTOCOL


NPF sends SMART a list of potential candidates SMART investigates

If an employer is found delinquent, SMART directs the

Business Managers to remove labor (or do not dispatch) Labor may be restored, only at SMARTs direction, if full

payment or settlement is fully consummated. SMACNA Chapter Reps Dec 2013 13

Basic Procedure to Pull Labor From Delinquent employers

solutionsnotbailouts.com SMACNA Chapter Reps Dec 2013 14

http://www.solutionsnotbailouts.com/

Commission Recommendations Are Additional Tools for Plans Strictly Voluntary:

Plans are not required to adopt any new provisions

Trustees of many plans need more flexibility to address challenges


Background

Slide borrowed from NCCMP

End


SMACNA Council of Chapter representativesHours & Valuation excerptsFINANCIAL UPDATESlide Number 4Where does VBAR Come From?For the 2014 Plan Year, the Average Market Value Investment Return for the 3-year period ending Dec 31, 2012 is 8.25%Plug the 3-Year Average Return into this Chart ZONE STATUS RESTRICTIONS in 2014 What happens to the Rehab Plan?Schedules? LIKE WHAT? Law: Why does NPF send EMPLOYERS all these Notices, Notices, [email protected] [email protected] SMART PROTOCOLBasic Procedure to Pull Labor From Delinquent employersSlide Number 14BackgroundEnd

SMACNA Council of Chapter representatives - … Council of Chapter representatives . Updated slides NPF Dec 2013 . SMACNA Chapter Reps Dec 2013 1

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