WELCOME TO THE “FUNDING STATUS” PAGE
This page replaces the former “Rehabilitation Plan” page and contains links to important information about the NPF’s Funded Status under federal law.
As you know, the NPF has faced significant funding challenges over the past several years. Since 2008, the Pension Protection Act of 2006 (PPA) has put pension plans like the NPF into different “zones,” based on their funding levels. PPA requires the Plan’s actuary to certify NPF’s zone status every year. Generally, PPA directs that plans with more severe funding problems are in Critical Status (also called the “red zone”). PPA places plans with less serious challenges in Endangered Status (the “yellow zone”). The Plan’s actuary had certified that the NPF was in Critical Status for every Plan Year from 2008 through 2013.
On January 15, 2014, the Plan’s actuary reported improvement. The actuary certified that the NPF has emerged from Critical Status (red zone) and into Endangered Status (yellow zone) for the 2014 Plan Year. On January 15, 2014, the NPF sent a notice titled “2014 Notices of Change in Zone Status,” to all Participants, including Retirees & Beneficiaries, Employers, and Local Unions advising of this change. To see copies and get additional details, click on the links below.
When the NPF was in Critical Status, PPA required the Trustees to issue a Rehabilitation Plan and Schedules, which made certain permanent changes to benefits. Now that NPF has entered Endangered Status, PPA requires the Trustees to take steps to achieve a significant increase in the NPF’s funded percentage. To accomplish this, in March 2014, the Trustees issued a Funding Improvement Plan (“FIP”) and FIP Schedule. Links to copies of these documents are below.
Thank you for your continued support of the National Pension Fund.