As we previously notified you, the UNITE HERE Northwest Pension Trust Fund (Northwest Plan) merged into the new Western UNITE HERE and Employers Pension Fund (Western Pension Fund or Fund) on January 1, 2024.
We are providing this notice to share some good news about the financial status of the Fund and an increase in your benefits.
Western Pension Fund is Certified in Green Zone
The Western Pension Fund has been certified in the Green Zone for 2024. This means that the Internal Revenue Service considers the Fund to be “healthy” under IRS rules (that is, not in “endangered” or “critical” financial status). As a Green Zone plan, the Western Pension Fund is not subject to the restrictions that apply to plans that are in endangered or critical status. For example, the Fund is not restricted from increasing benefits in accordance with the Fund documents.
Benefit Earnings on Full Amount of Employer Contributions beginning January 1, 2024
Prior to the merger, the Northwest Plan’s funded status was certified in the Red Zone (critical status) for each year since 2012. While it was in the Red Zone, the Northwest Plan was subject to special rules and benchmarks designed to improve its funded status. One of these requirements was that employers had to make additional contributions to pay for benefits that had already been earned. The additional employer contributions could not be used to pay for future benefit accruals.
With the recent merger and the Fund’s Green Zone certification, the Red Zone requirements no longer apply to your benefits. This means that the full amount of the contributions employers are paying can now be used to pay for future benefit accruals.
This change will be effective starting with hours you work beginning January 1, 2024.
Additional Increase in Benefits Beginning January 1, 2024 for Expense Savings Due to Merger
Because of the Fund’s Green Zone status and the significant savings in operating expenses the Fund will receive as a result of the merger, the Board of Trustees has approved a 25% increase in the benefit accrual rate for hours worked beginning January 1, 2024.
This benefit increase is in addition to the change described above relating to employer contributions. This means that you will earn benefits under the plan equal to 1.25% of all employer contributions starting January 1, 2024.
You don’t need to do anything to receive the benefits described in this notice; the Plan Administrator will update your records automatically. In addition, your pension benefit calculation and benefit statement will be adjusted to reflect these changes. We note that to receive these benefits, you must satisfy the Fund’s requirements including the requirement to have at least 400 covered hours in the plan year.
Should you have any questions or need further information, please contact the Plan Administrator (Northwest Administrators) at (844) 411-0786.
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This notice is a Summary of Material Modifications (“SMM”) that describes changes to the terms of the Plan. Please read it carefully and keep it with your Summary Plan Description and other Plan information. If there is any discrepancy between the Plan information previously provided to you and the changes described in this notice, the rules described in this notice will govern.