Click here to learn more about the experience apportionment process.A 4.7 percent experience apportionment for the Pension Plan is effective July 1. As a result, retirees will see an increase in their pension checks and active members will see an increase in pension credits.
What is an experience apportionment?
An experience apportionment is a lifelong increase in pension benefits or credits, depending on employment status:
- For retirees and eligible survivors, an experience apportionment is an increase in the individual’s current pension benefit for as long as the person lives, expressed as a percentage of benefits received. Pensioners are being notified of the amount of the increase in their pension checks; their July pension checks will reflect the new amount.
- For active and terminated vested members, the experience apportionment is an increase in the individual’s pension credits accrued as of December 31, 2014, expressed as a percentage of the accumulated credits. Active members will be able to see the pension credits attributable to the apportionment in a separate line item on their online Statement of Benefits through Benefits Connect in early July. Terminated vested members will be notified of the increase in their pension credits in mid-July.
Who decides if there will be an experience apportionment?
Experience apportionments are not guaranteed each year. According to the Experience Apportionment Policy, the Pension Plan must be at least 110 percent funded before an apportionment is considered. This guideline ensures that the plan is able meet all existing pension commitments. In early March, the Board of Directors reported that the plan’s funded status was 130.5 percent and voted to grant a 4.7 percent apportionment for the 2014 plan operation year.