This blog was posted at an earlier date.  FYI and in light of the recent mailing of the NPF Annual Funding Notice it is being posted once again.

 

The National Pension Fund (NPF) has posted its Actuarial Report as of January 1, 2014. (Through 2013)  The Actuarial Review is an important document that should be familiar to every member of the I.A.  Every Local 28 official (full time and part time) MUST be familiar with this document.

On page 39 of the report there is a comparison of data from all contributing I.A. local unions.  In 2013, Local 28 contributed an average of 1601 hrs. @ an average hourly rate of $11.65.

The average I.A. local contributed an average of 1660 hrs. @ an average hourly rate of $4.35.

According to a data analysis on page 16, in 2013 there were only 240 members throughout the entire I.A. who received a 55/30 (60/30) pension.  Their average pension awards were $2,552.00 each.

The average normal NPF pension in 2004 was $1,289.00.  The average normal pension in 2014 was $930.00, a decline of $359.00 per month since 2004.

In 2004 there were 68,296 I.A. working members contributing to the NPF.  Through 2013 that number has declined by 14,014 members.  Over the same span (2004 through 2013) the number collecting pensions increased by 6,472.  Thus we now have 14,014 fewer members supporting 6,472 more retirees.  (pg.38) 

This is the most dangerous trend in the NPF and requires the full attention of the SMART General Executive Council, and Joe Nigro.  Organization of the unorganized has got to be prioritized by SMART.

The Actuarial Review data tells us Local 28 is the highest hourly and total contributor to the NPF.  In 2013, using the NPF’s average Local 28 member count, (2300), Local 28 contributed $42,898,795.00 on 3,682,000 Local 28 hrs. worked. (Pg. 39)

(2300 average members x 1601 average hours = 3,682,000 total 28 hours x $11.65 average rate = $42,898,795.00 total Local 28 $ contribution.)

Local 28’s $42,479,700.00 contribution is 9.16%% of the NPF’s $389,378,479.00 total employer contribution for 2013.

As the NPF’s top contributor, every member of Local 28, every I.A. official, every Local 28 official and all would be Local 28 officials should be familiar with the content of the Actuarial Report.  Read it.  Study it.

There is good news and bad news in the report.  At the top of the good news category is the NPF’s investment return for the 2013 calendar year.  The NPF earned 20%+- last year.  That is an outstanding result – but must be judged against investment loss years such as the 27% Republican Recession loss in 2008.  The NPF also exited Critical Status or the Red Zone as per Internal Revenue Code (IRC) regulations.  The NPF improved its funding status to Endangered Status (Yellow Zone) in 2013.  That is also good news.  The trend is your friend.

On an actuarial basis the NPF achieved a funding level of 59%+- in 2013.  That too is good news and an improvement over previous years.  The trend is your friend.

Unfortunately, on a current liability basis, as reported on page 34 of the report, we see the enormous current liability sum of $11,291,679,667.00 representing the total of all pension benefits owed by the NPF to all categories of NPF participants.

Using the current liability funding standard, the current liability amount of $11,291,679,667.00 is compared to the current value of all current NPF assets which are valued at $3,818,123,174.00.  The result is the NPF’s current liability funded status.  Thus the current liability funding standard of the NPF in 2013 was 33.8% which soberly compares to the 59% actuarial funding standard for the same year.  Pick your poison.

Ventlines will be posting more blogs on the NPF Actuarial Report.  The membership should know that Local 28 has one of its ablest employers, Ron Palmerick sitting as a NPF employer trustee.  Mr. Palmerick is probably among the I.A.’s largest employer contributors to the NPF.  Honk your horn if you think Local 28 should have a labor trustee on the NPF.

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