Recent Pension Update
December 2006
TO: All Pension Plan Participants, Retirees and Beneficiaries
RE: Pension Plan Update
The Board of Trustees of the Western Conference of Teamsters Pension Trust recently approved an accrual rate increase for covered work performed during calendar year 2007. The accrual rate will increase from 1.2 percent to 1.65 percent for that period.
Strong investment and demographic experience, such as your Plan achieved in 2005, enables the Trustees to adjust benefit accrual levels (when the established funding guidelines allow). Investment performance, employer contribution levels and demographic factors play a key role in determining the Plan’s actuarial health and funding strength.
Your Plan’s enrolled actuary (plus a separate independent actuarial firm retained by the Trust) now report that as of January 1, 2006, the Trust no longer has an unfunded vested benefit liability (UVBL). This means there is no withdrawal liability for employers who withdraw from the Plan in 2006.
The Trustees will continue to keep you informed of the latest investment results and the positive effect of this experience in reducing funding shortfalls related to the weak investment environment of 2000 through 2002.
Plan experience is monitored by the Trustees on a quarterly basis. At all times, your benefit earned as of any date is safe and secure.
The Trust’s 2005 investment results are published in the Summary Annual Report and Annual Funding Notice. If you did not receive a copy, contact your Area Administrative Office.
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