ARTICLE XVIII - Pension Plan
Par. 1. The National Elevator Industry, Inc., and the International
Union of Elevator Constructors shall continue the Pension Trust
Fund known as the "National Elevator Industry Pension Plan,"
which is administered by a board of eight (8) Trustees, four
(4) appointed by the National Elevator Industry, Inc., and four
(4) appointed by the International Union of Elevator Constructors.
The Board of Trustees have adopted a Declaration of Trust and
Plan of Pension Benefits which shall be a part of this Agreement
and binding on all parties signatory to this Agreement.
The normal retirement age of the Pension Plan is sixty - five
(65) years of age.
Par. 2. The Plan of Pension Benefits shall be financed by contributions
as provided herein. The Company agrees to continue to pay and
contribute two dollars and fifty one cents ($2.51) for each
hour of work performed by all Elevator Constructor Mechanics,
Helpers and Apprentices in its employ.
The two dollars and fifty one cents ($2.51) hourly contribution
shall increase upon every anniversary of the wage rate change
of each Local Union, in accordance with the following (except
as modified pursuant to Article V, Paragraph 3):
| Effective Date |
Amount of Increase |
Hourly Contribution Rate |
| January 1, 2003 |
$0.37 |
$2.88 |
| January 1, 2004 |
$0.27 |
$3.15 |
| January 1, 2005 |
$0.27 |
$3.42 |
| January 1, 2006 |
$0.27 |
$3.69 |
| January 1, 2007 |
$0.27 |
$3.96 |
Payments of said contributions by the Company shall be in accordance
with the terms of the Declaration of Trust adopted by the Board
of Trustees. However, in no event shall contributions by the
Company exceed the lowest contribution paid by any Employer
contributor to the Pension Plan for the type of work covered
by this Agreement performed in the same geographical jurisdiction
of a given local.
Par. 3. It is understood and agreed that the increased contributions
provided for in Par. 2 shall be used by the Trustees, taking
into consideration the financial limitations of the Pension
Plan, to significantly improve the Plan of Pension Benefits
in accordance with the letter of Buck Consultants dated February
28, 2002 so that by, February 1, 2007 there will be a gradual
increase in the applicable benefit rate for normal retirement
benefit from $90.00 to $110.00 per year of credited service,
and that, effective July 1, 1997, there will be an improvement
in the early retirement benefits, as set forth in said letter
dated April 9, 1997. The implementation of the foregoing improvements
shall be subject to the following paragraph:
The parties intend that the Pension Plan be funded in a manner
designed to have no withdrawal liability and to fund the actuarial
liabilities over a period of twenty - five (25) years. Therefore,
in adopting benefit improvements to the Pension Plan, the Trustees
are directed to consider (a) whether at that time there is withdrawal
liability under Title IV of ERISA, (b) whether, in the opinion
of the Plan's Actuary, the improvement is likely to create a
withdrawal liability, and (c) the policy of amortizing unfunded
actuarial liabilities over a period of twenty - five (25) years.
Each year, as soon as feasible after the financial and actuarial
information for the Pension Plan as of the last day of the Plan
Year is available, the Plan Actuary shall advise the Trustees
with respect to the funding of the Pension Plan, taking into
account the criteria set forth in Paragraph 3. It is understood
and agreed that the improvements in the Plan of Pension Benefits
which are referenced in the Buck Consultant's letter of February
28, 2002 should be approved by the Trustees only if the increase
in the Plan of Pension Benefits shall not require any increase
in the hourly contribution rates set forth in Par. 2 and the
three criteria set forth in the immediately preceding paragraph
have been met.
