Plan Changes Approved in March 2010

The Retirement Committee of the Co-op Retirement Plan met on March 30, 2010, with their independent investment advisors and independent actuaries for the purpose of considering changes in the contribution rates for the Co-op Retirement Plan.    After reviewing preliminary estimates of the investment returns on the Plan’s invested portfolio for the fiscal year ending March 31, 2010, and considering estimated future funding obligations, the Committee lowered the total contribution rates effective July 1, 2010.   A grid reflecting the cost of the various accrual options and employee contribution options is now available on this website.  Click here to view the cost grid.  It is anticipated that these new rates will remain in effect for at least 12 months.

The Committee also approved the offering of one additional accrual rate.  In addition to the 1.75%, 1.50%, and 1.25% accrual options, an accrual option of 1.00% is now available.   The cost of this new accrual option is included in the cost grid referenced above, and the new option is available as of July 1, 2010.

A letter detailing these new changes, along with a Rate-Choice Election Form, is being mailed to all Participating Employers on April 1, 2010.   All employers will need to respond as to whether or not they wish to change their current election of accrual rate and/or employee contribution rate.   The letter being mailed on April 1 will indicate the appropriate deadlines for returning the Rate-Choice Election Form to United Benefits Group.

In addition to the Committee’s reduction in contribution rates and addition of a new accrual choice, the United Benefits Group Board of Directors amended the Plan to allow each employer to choose, from among three methods of counting hours worked, the method that works best for its organization.   Taking into account computer system programming needs, the target date for offering this new choice is September 1, 2010.  The April 1, 2010 letter referenced above will include a list of the choices each employer will have.  It is expected that employers will be mailed additional, detailed information and an election form on which to make their choice sometime this summer.  It should be noted that any changes in the method selected by the employer will apply only on a go-forward basis from the effective date of the choice.  All employees previously required to come into the Plan will remain in the Plan.  All employees having acquired hours toward eligibility under a previous method will retain those hours for eligibility going-forward even if an employer changes the method on a go-forward basis.