The Emeriti Retiree Health Model Plan
This is a Summary of Material Modifications regarding your Emeriti Retiree Health Model Plan (the “VEBA Trust Plan”). It describes an important change to the terms of your Plan.
This Summary of Material Modifications highlights the change from the Summary Plan Description (“SPD”) previously provided to you.
Prior to January 1, 2023, the Transition Amount for the Emeriti Retiree Health Model Plan for Class 2 Employees was:
A retiree will receive additional pay-as-you-go payments developed to simulate the fund amount that would be available under the following criteria:
- Payments had begun for that individual at the later of age 35 or the date of hire, and would last for 25 years; and,
- Payments would be $980 in 2005, and decrease going back in the past at 4% per year; and,
- Fund assets would have grown at 6.5% per year; and,
- At retirement, the fund balance would have been converted to an annuity, increasing at 5% per year.
As of January 1, 2023, Number 4 above is amended to read:
4. At retirement, the fund balance will be converted to an annuity. Any increases shall be at the discretion of the Employer.