Sisters and Brothers:
This newsletter is a follow up to the letter you received from Vestcor regarding the potential impact to the NBCHU CUPE Local 1252 pension plan if two groups were to leave the CUPE Hospital Pension Plan.
The Board of Trustees representing our plan have a fiduciary responsibility to inform the plan members, active and retirees, when there are potential impacts to the plan whether good or bad. The information provided is only an assumption at this time, but they must inform you it could happen.
With the current funding of our plan, the full cost of living/indexing is paid 94.5% of the time, but if this number of members leave, the cost of living/indexing could only be paid at 85% until the plan recovers, then the plan is designed to have the opportunity for retro of the cost of living/ indexing. This does not affect your benefit; our plan was designed to withstand these types of events.
All plans have sustained downturns due to COVID-19, but we are now seeing positive turnarounds and the plan is rebounding.
CUPE 1252 will continue to monitor this situation on your behalf as we move forward through this situation.
President, NBCHU CUPE Local 1252