Trustees Approve Another Pension Benefit Increase

The Equity League Pension Fund continues to perform very well. In recognition of that performance, and the continuing rise in living costs, the Trustees have agreed to amend the plan for an increase in Pension benefits.

How a regular pension is calculated?

If you retire with a regular pension, your benefit is calculated in two parts, according to this formula:

Part One	PLUS	Part Two	EQUALS	Your annual regular pension
3.0% of your earnings in covered employment per year		$132 X years of vesting service earned after January 1, 1945

Benefits will increase for most pensioners as follows:

• Pensioners who have retired on or before June 1, 2005.

Trustees have approved a $40 per month increase in their monthly pensions.

This increase is retroactive to June 1, 2005.
Retroactive adjustments will be calculated as of January 1, 2007, payable on February 1, 2007

• Pensioners who retired on or after July 1, 2005.

Trustees have approved an $11. 00 per month benefit for each year of vesting service (instead of the old benefit of $10.00 per month).

This increase is retroactive back to your original pension effective date.
Retroactive adjustments will be calculated as of January 1, 2007, payable on February 1, 2007

These increases apply to Beneficiaries with respect to their interest as well.

To see how the new benefits apply to Pensioners, let’s look at two examples.

1) Pensioner who retired on January 1 of 2005, and had a monthly pension of $1000 per month. That member will have a new pension benefit of $1040 retroactive to June 1, 2005.
Therefore, on or about February 1, that pensioner will receive a check for $1800 ($1040 for January of 2007 plus $760 for the 19 months from June 1, 2005 through December 1, 2006). Beginning in March, the amount received will be $1040.

January 1, 2007

PLUS

Retroactive payments from
June 1, 2005

EQUALS

February 1, 2007
Payment

New pension Benefit
$1,040

$40 x 19 months=$760

$1,800

2) Pensioner who retired after June 1, 2005. Let’s consider the case of a member who retired July 1, 2005 and had an $1100 monthly regular* pension. Let’s assume that monthly pension was comprised of $100 per month for 10 years of vested service ($120 x 10 years = $1200 per year or $100 per month) and $1000 per month based on accumulated earnings ($400,000 x 3% is $12,000, or $1000 per month).
That member would see an increase in her/his monthly pension to $1110 (the $1000 portion of the pension earned on the basis of accumulated income would not change, but each of the 10 years for which a $120 benefit had been earned would see an increase to $132 per year, or an increase of $1.00 per month). The check received in February would be for $1290 ($1110 plus $180 for the 18 months prior to January 1, 2007. Thereafter, the monthly pension would be $1110.

January 1, 2007	PLUS	Retroactive payments from June 1, 2005	EQUALS	February 1, 2007 Payment
New pension Benefit $1,110		$10 x 18 months=$180
				$1,290

*Please note that if you elected Early Retirement or a Joint & Survivor Option, the appropriate reductions will apply to the increased amounts and to Retroactive payments.

Pensioners who receive the minimum monthly pension of $200 would not necessarily see an increase in their benefits. For example, a pensioner who retired on or after July 1, 2005, and whose earnings and service entitled them to a $150 per month benefit, would have received the minimum pension benefit of $200 per month. Such a pensioner would not see an increase in his/her pension under the new rules. In contrast, a pensioner who was entitled to $190 per month on the basis of earnings and service would see an increase to $230 per month (reflecting the $40 per month benefit increase for those who retired on or before June 1, 2005).

If you have any questions, please contact the Fund Office for additional information.