Keeping the Pension Plan Healthy, a newsletter detailing changes to the funding of CSI’s US Pension Plan, has been sent to plan participants. While the pension plan is currently fully funded, the board is acting proactively to keep the plan in good health.
Like all pension plans, CSI’s plan has been impacted by low investment returns, low interest rates, increasing government premiums for “pension insurance,” and increasing life expectances. In order to provide financial security for the plan, the board researched several options.
Three changes have been put into effect immediately: schools can move up in their contribution levels to the plan, but not down; schools that choose to leave the plan will have to make a withdrawal payment; and the investment asset mix has been updated. Other changes have been proposed to take place September 1, 2017: a 50 percent contribution add-on will be introduced, and the pension accrual rate for new benefits will be 40 percent times employee contributions rather than the current 50 percent times employee contributions.
None of these changes impact current pension payments.
Webinars to discuss these changes will take place on October 10 and 11. Schools are encouraged to attend as board and staff. To register, click here. Questions can be directed to Howard Van Mersbergen, vice president of employee benefits, at gro.enilnoisc@negrebsremnavh">hvanmersbergen@csionline.org.