June 2004:
On
April 27, 2004, your Union held a membership meeting to discuss the financial
position of our Supplemental Unemployment Benefit (SUB) Fund.
Since its inception in 1997, the SUB Fund has collected over $2 million
in employer contributions.
More than 700 participants have collected over $1.4million in benefits
and over $600,000 has been directed to individual Retirement Savings accounts.
Unfortunately, the recent period of unemployment has left the Fund with a
balance of less than $50,000.
In
order to keep the Fund solvent, the membership overwhelmingly agreed to provide
financial support for the SUB Fund by approving a one time transfer of up to
$100,000.00 from the Union’s General Fund and approving a $.10 per hour
increase in the contribution rate to $.20 per hour effective
June 1, 2004.
In
addition, the SUB Fund’s Board of Trustees has agreed to the following
modifications in the Plan rules effective June 1, 2004.
Benefit
Rate
For
periods of unemployment on or after June 1, 2004, the benefits payable will be
changed to provide:
- $20.00
per day during periods when the Fund balance is less than $500,000.00; and,
- $25.00
per day during periods when the Fund balance is greater than or equal to
$500,000.00 but less than $750,000.00; and,
- $30.00
per day during periods when the Fund balance is greater than or equal to
$750,000.00.
Directing
contributions to the IBEW 701 Retirement Savings Fund
Effective
June 1, 2004, the amounts directed to the RSF will be determined by the Fund
balance according to the following schedule:
- When
the Fund balance is less than $500,000.00, employer contributions for an
individual in excess of $1000.00 will be directed to the individual’s RSF
account.
- When
the Fund balance is less than $750,000.00, employer contributions for an
individual in excess of $750.00 will be directed to the individual’s RSF
account.
- When
the Fund balance is greater than or equal to $750,000.00, employer
contributions for an individual in excess of $500.00 will be directed to the
individual’s RSF account.
