Pensions
As we enter these negotiations, there will be much discussion about the UFCW Local 1500 Pension Plan. The UFCW Local 1500 Pension Plan is doing well but is now classified as being "endangered", or in the “yellow zone”, according to Federal pension law.
What does Yellow Zone status mean?
The law requires actuaries for multi-employer pension plans like ours to certify the plan's funded, or zone status, every year. The Local 1500 Pension Plan actuaries have certified that the Pension Plan is in the yellow zone because it is less than 80 percent funded. You will be receiving a notice about this from the Pension Plan.
The Local 1500 Pension Fund Trustees must now adopt a "funding improvement plan". This is an action plan designed to restore the Plan's financial health and it will be given to the bargaining parties. During these negotiations, the Union and the employers will be discussing how to improve the Pension Plan's funding. You should understand that federal law prohibits any Pension Plan from increasing benefits while in the yellow zone.
The protection of your Pension is a number 1 priority for your UFCW Local 1500 negotiators.