Trust Amendment Regarding Benefits Effective January 1, 2018
New Section Shall be Enacted Entitled “Benefit Changes Effective January 1, 2018”
Section 1. Benefits for Non-Active Participants as of January 1, 2018
a) Notwithstanding any other provisions of this Trust Indenture, all monthly pension benefits in payment status on January 1, 2018 shall be reduced by thirty-five percent (35%), effective as of that date, including normal retirement pensions, early retirement pensions, disability retirement pensions, vested pensions, pensions paid pursuant to a joint and survivor option, and spouses' pensions in lieu of death benefit and any other form of pension.
b) Notwithstanding any other provisions of this Trust Indenture, and without regard to the terms of any Vested Benefit Certificate, all benefits of terminated vested participants, as described in Article V, Section 8, of this Trust Indenture which are not in payment status on January 1, 2018, shall be reduced by thirty-five percent (35%), effective as of that date.
Section 2. Benefits for Active Participants as of January 1, 2018
Notwithstanding any other provisions of this Trust Indenture, Trust Indenture Article V, Section 3(a) shall be restated to provide that active participants in the Inter-Local Pension Fund after January 1, 2018, shall be entitled to receive a benefit equal to one point seventy-five percent (1.75%) of all contributions.
Section 3. Future Benefit Adjustments
a) The Trustees are authorized to make such further benefit reductions in any plan year for retirees, beneficiaries and inactive vested participants as are necessary to maintain at least an 80% funded status, based on reasonable actuarial assumptions and methods, provided that:
i. The first such reduction shall not take place before July 1, 2021, unless a massive market downturn requires such an adjustment, and
ii. Any such reduction shall be reported to each participating Local Union at least five months prior to the effective date of any reduction and shall become effective as of such date unless (A) a proposed adjustment decreasing benefits is disapproved by a majority of the participating Locals at regular or special meetings held by such Locals within 60 days of notice of such adjustment and (B) further provided that if a sufficient number of participating Locals disapprove such proposed adjustment and that adjustment is thereafter disapproved by a vote of a majority of the active and retired participants in a referendum conducted by the Fund among such active and retired participants.
b) Prior to the beginning of any plan year in which benefits will be reduced in accordance with paragraph 3(a) of this Amendment, the Trustees shall advise retirees, beneficiaries and inactive vested participants of the Fund of the adjusted benefits that will be provided by the Fund.
c) If the Plan actuary certifies that the ILPF is fully funded over a three-year period, based upon reasonable actuarial assumptions and methods as determined by that actuary, the Trustees may equitably improve the benefits provided by the Fund.
Section 4. Trustees’ Discretion to Interpret and Apply these Changes
Notwithstanding any other provisions of this Trust Indenture, the Trustees shall continue to have the discretion to interpret and apply these changes in the administration of the Trust as they deem appropriate based upon all of the facts and circumstances.
Section 5. Conformation of the Trust and the Summary Plan Description to Reflect these Changes
Upon ratification of this Amendment by the participants in accordance with the procedure under the Trust Agreement, the Trustees shall conform the terms of the Trust Indenture and the Summary Plan Description of the Trust to conform to this Amendment.