7/5/2017Learn more about the experience apportionment process.
A 2 percent experience apportionment for the Pension Plan was effective July 1. An experience apportionment is a lifelong increase in pension benefits or credits, depending on a member’s status:
- For retirees and eligible survivors, an experience apportionment is an increase in the individual’s current pension benefit, expressed as a percentage of benefits received, for as long as the person lives. Pensioners are being notified of the amount of the increase in their pension checks; 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, expressed as a percentage of accumulated credits, accrued as of December 31, 2016. Active members may log on to Benefits Connect to view their estimated pension benefit, reflecting the experience apportionment. Terminated vested members will be notified in July of the increase in their pension credits.
Is an experience apportionment granted each year?
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 enables the plan to honor its three primary tenets:
- solvency of the plan (meeting all existing pension commitments)
- generational equity (ensuring that no one group of plan members fares materially better, or worse, than another)
- inflation protection
At its March 2017 meeting, the Board of Directors of the Board of Pensions reported that the plan’s funded status was 123.7 percent as of December 31, 2016, and voted to grant the 2 percent apportionment.