Congress enacted the Pension Protection Act of 2006 (“PPA”) to strengthen defined benefit plans such as the Graphic Arts Industry Joint Pension Trust (the “Fund”). On September 21, 2010, the Fund’s actuary certified to the U.S. Department of the Treasury and the Trustees that the Plan is in Critical Status for the Plan Year beginning July 1, 2010.
A Notice of the Fund’s Critical Status Certification was mailed to all affected individuals on September 27, 2010, with additional Notice of Critical Status and Notice of Critical and Declining Status letters having been mailed each year. The Fund and many other pension funds continue to deal with the challenges posed by the PPA.
To comply with the PPA and improve the Fund’s funded status, benefit adjustments and contribution increases were implemented pursuant to the Rehabilitation Plan adopted by the Board of Trustees.
The Fund’s Rehabilitation Plan consists of two schedules: the Preferred Schedule and the Default Schedule. The Preferred Schedule requires additional contributions from Employers but preserves more benefits for Participants. The Default Schedule requires a higher level of contribution increases from Employers and reduces more benefits for Participants than the Preferred Schedule.
99% of the Fund’s active Participating Employers and Local Unions agreed to the Preferred Schedule of the Fund’s Rehabilitation Plan.