Greetings Siblings,

Many of you have heard about the change to the lump sum pension that will take effect on November 1. I found and posted an article on our Facebook page when we learned of this that explains how this works in layman’s terms. This has gotten the attention of many who might be affected by this, but I know not all of you have had a chance to see that. I wanted to put something out to make sure that everyone who may be affected is aware. The lump sum is calculated based on a factor that combines mortality and interest, and that factor changes on a yearly basis. The plan year for that begins November 1 each year. We received the new lump sum factors from the Company two weeks ago, and at that time realized that the difference in lump sum payments beginning on November 1 of this year would be substantial. I believe the Company has also sent out a letter explaining this. I want to make clear that this has nothing to do with our CBA and everything to do with interest rates. Basically, when interest rates increase, it has a negative impact on lump sum payments. For a real numbers example, a 55-year-old with 30 years of service who retires on October 1 would receive a lump sum of around $240,000. Waiting until November 1, that payment would decrease to around $175,000. For those who were thinking of retiring soon and taking the lump sum, you would need to retire and commence pension on October 1 to avoid being impacted by this. The entire process has to be completed by September 5 in order to guarantee an October 1 lump sum payment. You would really need to start the process to retire immediately, in order to meet the timeframes and deadlines in the retirement process. If this will impact you, and you would like assistance, please contact me at the Union Hall and I can help you get started. I am including the article I referenced below, for your information.

In Solidarity,

Emily Brannon

Pension and Insurance Rep