Tuesday, December 12, 2017
   
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Pension Fund

Benefit Plan Amendment

Click here to download CPF Notice of Reduction

 

The CPF Report containing the Notice of Reduction in the Benefit Accrual Rate for Future Service Only is being mailed to all participants, beneficiaries, contributing employers, and Local Unions on Friday, March 13, 2009.

To assist in responding to questions that may be raised, this is to advise you that the Notice itself, and the detailed explanation of the Notice which will appear in the Spring 2009 issue of The Operating Engineer magazine have both been posted on the Central Pension Fund’s website www.cpfiuoe.org.

There is a banner on the opening page on the website advising that information on the reduction in the accrual rate may be accessed by clicking on the banner. Doing so takes the reader to the “What’s New” page where the Notice and the detailed explanation are posted.

 

CPF in the Current Market Turmoil --- A Message to Our Participants

As the investment markets continue to churn, and a massive federal bailout of Wall Street is deliberated, CPF’s retirees and participants have no need for concern that their benefits are at risk.

While the value of the Fund’s portfolio will rise and fall with the returns of the equity and fixed-income markets, CPF is a long-term investor that has a broadly diversified portfolio with a wide array of investment vehicles.

More importantly, if a protracted downturn does require adjustments to the Fund’s schedule of benefits, by law such changes can only be applied prospectively to benefits that will accrue in the future. The benefits accrued to date cannot be reduced.

This ability to adjust future benefits, while always preserving the benefits already earned, is why defined benefit plans like the Central Pension Fund are far superior to 401(k) plans. As we see on the nightly news, 401(k) participants are being severely impacted every day by the current market conditions.