The SC has made changes to its Specified Plan Change process:
- To limit confusion we will prepare the explanatory materials you or others may need, before posting plan change proposals online.
- Plan change proposals will be published shortly after May 15th to provide us with sufficient time.
- The SC will defer decisions to its June 25th meeting to allow time for your review and input.
We recently announced our 2013 results and our funding deficit at December 31, 2013. The funding deficit decreased by $1.3 billion to $8.6 billion at December 31, 2013 from $9.9 billion at December 31, 2012. With this result, we remain on track to eliminating the deficit by the year 2025.
To keep us on that track, however, our contribution rates may need to be sustained at their current levels until 2025. And, since there is limited capacity to increase contribution rates and further increases would be unwelcome, any disruptions (economic or otherwise) would be difficult to weather.
It’s with this reality in mind that the SC’s Specified Plan Change (SPC) process begins – the process where the SC reflects on the Plan’s current financial realities and considers the benefits provided by the Plan, the contribution rates needed to fund those benefits and whether either of these need to change.
Minor process and timeline changes have been made to the SPC process for 2014. Plan change proposals will continue to be tabled by individual SC directors in March and April during which time they may consider amending or withdrawing their proposals. To limit the confusion generated last year, we will develop and make explanatory materials available before we post the proposals, including a thorough explanation of any changes being proposed and how they might impact stakeholders. This material is also intended to assist you and your organization with explaining the process and the proposals to your constituents.
To allow us sufficient time to develop the materials and to allow directors to more fully develop their proposals before publishing, proposals will be published shortly after May 14th.
Given the change to when proposals are published, the SC will not make decisions on the proposals at its May meeting but will delay decisions until June, to allow you to consider the information for each proposal and provide your input.
Thank you to those organizations and individuals who provided stakeholder requests for plan changes by the March 1st deadline. The Plan Design Information Committee will review all of the submissions and report on them to the SC Board. Individual SC directors will then consider your ideas, their own ideas, and decide whether or not to make a formal proposal (SPC) for the SC to consider.
We will keep you informed with this newsletter as we move through the process, but you can also refer to www.omerssc.com for up-to-date information. More detail on the SPC process can also be found there.
“If you or your organization would like to discuss the 2014 Specified Plan Change process, please contact Chris Vanden Haak.”
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