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Employee Benefit News
Carpenters’ Combined Funds, Inc.
VOLUME XI SEPTEMBER 2012 • PITTSBURGH, PA No. 1
UNDERSTANDING THE PENSION PLAN’S FINANCIAL POSITION
by Jim Klein
I recently read an article that noted that Social Security is not the deal it once was for workers. People retiring today are part of the first generation of workers who have paid more in Social Security taxes during their careers than they will receive in benefits after they retire. It’s a historic shift that will only get worse for future retirees, according to an analysis by The Associated Press. The trustees who oversee Social Security say its funds will run dry in 2033 unless Congress acts. At that point, payroll taxes would provide enough revenue each year to pay about 75% of benefits. To cover the shortfall, future retirees will have to pay higher taxes while they are working, accept lower benefits after they retire, or some combination of both. By the way, are you aware that Social Security already reduces the benefit, for anyone born in 1960 or after, by about 6% per year for each year of retirement under the age of 67? If you want to start collecting Social Security at age 62, you’ll receive about 70% of your full benefit amount if you were born in 1960 or after.
The dilemma being faced by the Social Security System is not really much different from that being faced by state and local pension plans, building trades pension plans and carpenter pension plans such as our Plan. Participants are living longer. Market returns have been weak. In particular, the year 2008 was horrible. Hours of employment have also been down for many plans. Put all of this together and you have a recipe for disaster. Fortunately, things are not as bad for our plan as for some others. Actually, on a relative basis, we are rather strong. Compared to the private sector where most employers no longer offer a defined benefit pension plan, we are clearly fortunate. We still have both a defined benefit and a defined contribution plan. In the private sector, studies indicate that participation in defined benefit plans has declined from 38% in 1979 to 15% in 2010. That erosion is continuing with companies such as General Motors Co. and Ford Motor Co. announcing plans to terminate pension plans for hundreds of thousands of employees.
Let us consider the specifics of our plan as presented by our Actuary at the July 25th Board of Trustees meeting. The 2012 preliminary Actuarial Valuation results indicate that our plan was “endangered” because we are 77.2% funded, below the 80% threshold to be considered “safe status.” Because the Plan was certified as being endangered, we are required by law to develop a Funding Improvement Plan aimed at
Employee Benefit Newspublished by the
CARPENTERS’ COMBINED FUNDS
INCORPORATEDWILLIAM R. WATERKOTTE
President
JAMES R. KLEINAdministrator
k650 Ridge Road – Suite 300
Pittsburgh, PA 15205
PLEASE CALL US WITH ANY COMMENTS, QUESTIONS OR SUGGESTIONS
Phone: 412-922-5330Toll Free Number: 1-800-242-2539www. carpenterscombinedfunds.org
(Continued on page 8)
Page Two — EmployEE BEnEfit nEws
TRUSTEESGreater Pennsylvania
Carpenters’ Annuity/Savings Fund
william R. watERkottEChairman
John p. Gadomski
timothy m. styBoRski
Jack w. RamaGECo-Chairman
fREdERick Episcopo
John p. maffEo, JR.
Greater Pennsylvania Carpenters’
Pension Fundwilliam R. watERkottE
ChairmanmichaEl J. dinGEy
louis R. GilBERti, JR.lEE J. manGEs
RoBERt d. mEyER
michaEl w. platt
timothy m. styBoRski
michaEl p. wElsh
RichaRd f. RivERs, JR.Secretary-TreasurerEuGEnE B. BRown
RoBERt BuEchEl
dwiGht E. kuhn
thomas a. landau
RoBERt f. lEahEy
tERREncE m. mcdonouGh
Jack w. RamaGE
kEnnEth wolf
Greater Pennsylvania Carpenters’ Medical Plan
william R. watERkottEChairman
RichaRd f. dEluca
michaEl J. dinGEy
fElix a. follEtti
RoBERt J. GRaswick
RichaRd R. okRaszEwski
samuEl shillinG
timothy m. styBoRski
tERREncE m. mcdonouGhCo-Chairman
RoBERt BuEchEl
fREdERick Episcopo
thomas a. landau
John p. maffEo, JR.stanlEy mERzlak
John moRRis
Raymond a. volpatt, JR.
Annuity/Savings Fund InformationHERE IS A SUMMARY OF MARKET VALUE ASSETS AS OF JUNE 30, 2012
Percent Market Value of Total
Federated Total Return Bond Fund ............................ $ 5,591,912.84 2.23%
American Beacon Large Cap Value Fund .................... 5,570,202.84 2.22%
Blackrock Index Equity ................................................. 2,924,032.22 1.17%
Carpenters Stable Value Fund ...................................... 171,166,044.29 68.35%
American Century Strategic Alloc. Conservative ......... 5,576,275.12 2.23%
American Century Strategic Alloc. Moderate .............. 9,354,130.92 3.74%
American Century Strategic Alloc. Aggressive ............ 21,821,050.81 8.72%
Federated Mid-Cap Index Fund .................................. 3,005,112.19 1.20%
Wells Fargo Advantage Growth Fund ......................... 9,173,321.27 3.66%
American Fund EuroPacific Growth Fund ................. 7,970,220.86 3.18%
Royce Pennsylvania Class FI ........................................ 3,065,065.74 1.22%
Fidelity Advisor Small Cap Fund ................................. 5,194,340.46 2.08%
TOTAL .......................................................................... $250,411,709.56 100.00%
SELECTED TOTAL RETURN INFORMATION ON EACH FUND AS OF JUNE 30, 2012 IS LISTED BELOW
Quarter 1-Year 5-Year 10-Year Ending Ending Ending Ending 6/30/12 6/30/12 6/30/12 6/30/12
Federated Total Return Bond Fund ....... 1.47% 6.72% 6.82% 5.70%
American Beacon Large Cap Value Fund ......................... -4.46% 2.24% -2.26% 5.88%
Blackrock Index Equity ............................ -2.86% 5.04% -.09% 4.93%
Carpenters Stable Value Fund — (not net of its annual investment management fee) .................................. 1.0.% 4.32% N/A N/A
American Century Strategic Alloc. Conservative ......................................... -.89% 3.94% 3.22% 5.09%
American Century Strategic Alloc. Moderate .............................................. -2.25% 2.03% 2.18% 5.94%
American Century Strategic Alloc. Aggressive ............................................. -3.28% .10% 1.15% 6.16%
Federated Mid-Cap Index Fund ............. -5.05% -2.84% 2.16% 7.74%
Wells Fargo Advantage Growth Fund...................................................... -6.66% 5.31% 8.22% N/A
American Fund EuroPacific Growth Fund ........................................ -6.21% -12.93% -2.57% 7.42%
Royce Pennsylvania Class FI ................... -7.23% -7.23% .32% N/A
Fidelity Advisor Small Cap Fund ............ -9.98% -12.43% .79% 7.35%
Additional information can be obtained by calling the Vested Interest Response Line at 1-800-374-4631 or by reviewing your Quarterly Statement
when mailed to you by PNC Bank.
EmployEE BEnEfit nEws — Page Three
WELCOME TO RETIREMENTLOCAL UNION No. 81
Glenn A. HarpstKenneth M. Hermann
Alfred J. MachinskiJoseph E. Polchlopek
John W. WhiteMichael D. Wojtecki
LOCAL UNION No. 84Stephen J. HaluskaJeffrey M. JellotsRonald G. Kraeer
John W. Maleski Jr.Dane McCormick
James U. Smith
LOCAL UNION No. 86Ronald B. FeitsVincent Picchi
LOCAL UNION No. 142Thomas A. BaurDean J. Betris Sr.Ronald W. GibsonDaniel E. KelleyJoseph B. Monda
Donald P. OesterleRobert P. Palscak
LOCAL UNION No. 165George R. Besselman
Larry R. ClarkLouis Guastaferro
Donald HarrisCharles C. Jones
Daniel R. KennellyRalph M. Malay
Donald W. Nelson Jr.Bernard J. Riley
Robert M. ShanerWilliam E. Stehle
Nicholas M. ValenzaGary A. Weber
LOCAL UNION No. 211Steven J. BeresTim A. Blazier
Joseph A. CampanellaAlex R. Dixon
James L. KnappJohn E. MankevichDaniel G. Romano
Charles A. Slaney III
LOCAL UNION No. 214Elias G. Adams Jr.Roger A. Barton
Raymond C. Bobb IIIRocky B. CorradoFrank J. George
James M. GesselmanEdward T. GilgerBrent A. Grace
Eddie L. HurleySteven M. KnaubStanley G. Kreider
Roger S. LeedJohn P. Letcavage Jr.Herman L. ManningWalter F. Nickel III
Richard C. OberlanderHarry R. Odell
Thomas J. PeifleyThomas J. Quinn
Ralph RichStanley J. Rusesky
Gerald L. SchrawderJames R. Shuller
Stanley L. SimplerEmmons F. Smith
Ralph E. SpadeRandolph E. SwailsRobert L. SwartzWalter R. Warble
Donald J. Zapcic Jr.
LOCAL UNION No. 230Arthur T. AlbertMelvin J. Gouker
Richard E. KinneerPaul J. Kohnen
Charles L. Paterick Jr.Edward C. StoeckerAnthony R. Timlin
Raymond W. Vogel Jr.
LOCAL UNION No. 268Rodney E. BrantJames E. Busch
Jonathan E. MatisDonald P. Wig
John F. Zentner
LOCAL UNION No. 645Robert C. Abrams
Charles O. ApplegateJoseph Aulisio Jr.
George A. Charnogursky
Paul ConstantiniRichard W. Conte
Richard D. DestefanoRonald A. ForePaul E. Furtak
Michael A. GoodlavageRobert Gray Jr.
Joseph H. HalowichThomas C. HinkleGary T. Horrocks
Alan T. JeffreyWilliam T. Kudrako Jr.
Jeffrey D. MayGary A. MekeelJames D. Reiner
James A. Rostock Jr.Michael Sluck Jr.
Richard H. StancavageJoseph H. Summers
Joseph V. UlozasCharles T. Volovitch
Leonard Wincek
LOCAL UNION No. 759Jon J. Best
Joseph E. Bigenho Jr.Michael G. ClarkAndrew J. MeskoKevin M. Shirey
Anthony SquillaceWilliam G. Wadding
LOCAL UNION No. 922Bruno J. Borello
Donald R. MerrimanRobert J. Mihalinac Jr.
Robert T. SummersTerry W. Wilfong
LOCAL UNION No. 947Anthony J. Adamczyk
Daniel K. CheatleJack E. Johnson
Theodore L. McFarlandPaul D. SanfordJohn W. Shirey
LOCAL UNION No. 950Kevin S. HooverDonald L. IzzettAnthony J. Koguc
LOCAL UNION No. 1160Ralph E. Houseman
James R. Iskey
Robert M. PlutkoHans J. Prew Jr.
Carl E. SantaviccaGary R. Sausto
David W. Wagner
LOCAL UNION No. 1419Lawrence E. Hager
Brian D. InschoMichael S. JacobyEdward A. Robb
Robert M. SankovitchDennis J. StrazisarStephen R. Walters
LOCAL UNION No. 1759Henry D. Karbowski
George S. Lancaster Sr.Richard W. Lynch Jr.
LOCAL UNION No. 2235Kenneth E. Cywinski
Robert W. GableLeonard E. Gathers
Stanley J. HockenberryGerald F. Mazur
Frank G. Veranese
LOCAL UNION No. 2237Donald A. ArmenHank W. Imhof
Randy C. MorningstarRonald A. Williams
LOCAL UNION No. 2274Harvey M. Fisher
Raymond M. GorskiRonald C. Guers
Charles G. HooverDavid J. Housel Sr.
William J. MatthewsJerry A. Mazza
Ronald J. McQuaitRonald R. MelleDrew A. Parker
Robert L. TostenDale W. Tressler
LOCAL UNION No. 2507Donald G. Eutzy
Robert E. Whitmer
LOCAL UNION No. 2590Darrell G. Kribbs
Page Four — EmployEE BEnEfit nEws
IN MEMORIAMWe pause in respectful silence to honor the memory of all our members or former members
whose deaths have been reported to the Fund Office since our last newsletter.
LOCAL UNION No. 81EDWARD H. BERNRITTER
January 13, 2012
LEON BROWNJune 15, 2012
JOSEPH F. KONKOLMay 10, 2012
HARVEY J. LINDYSeptember 4, 2011
RANDY W. MITCHELLJanuary 22, 2012
JOSEPH A. NITCZYNSKIJanuary 4, 2012
DOUGLAS C. REIDMay 15, 2012
JAMES L. SHEARERJanuary 7, 2012
FREDERIC M. SILVISJune 17, 2012
LOCAL UNION No. 84WALTER W. BARCLAY
April 9, 2011
HARRY F. CLARKNovember 9, 2011
CHELSIE EIFORDNovember 18, 2011
KENNETH GALLENTINEApril 7, 2012
JOHN T. KRAYNAKFebruary 13, 2012
CHARLES W. MARTIN JR.June 25, 2012
JACK C. MURRAYSeptember 25, 2011
JOHN J. ROCKWELLMarch 2, 2012
ANDY J. SHENALMarch 24, 2012
LOCAL UNION No. 142LOUIS S. BENKO
July 6, 2012
SALVATORE M. BOSCOFebruary 19, 2012
SARAFINA H. CALIGUIREAugust 7, 2012
GRANT E. CRABTREEDecember 13, 2011
PHILLIP J. DIDIONDecember 5, 2011
ANDREW FEDEROUCHNovember 22, 2011
RONALD C. GIAMBERDINIApril 13, 2012
JOHN R. GREEN SR.December 28, 2011
THOMAS W LANGDONApril 1, 2012
NICK MARAVICHMay 31, 2012
JOHN W. MITCHELLMay 12, 2012
FRANK A. ORIOLODecember 6, 2011
JOSEPH SCHROCKJanuary 8, 2012
ROBERT M. SEHNMarch 23, 2010
JOHN L. SULLIVAN SR. April 23, 2011
FRANK J. WALASIK JR.May 10, 2012
JAMES W. YECKELSeptember 8, 2011
LOCAL UNION No. 165CHARLES G. COCHRANE III
March 19, 2012
NUNZIO FRATANGELONovember 25, 2011
FRANK G. GILLETTEMarch 25, 2012
VINCENT GRAY JR.July 13, 2007
ANDREW M. JEANNETTJuly 19, 2012
STANLEY B. SOKOLOWSKIApril 15, 2012
JOHN TRANCHINEMarch 16, 2012
LOCAL UNION No. 211WALTER J. BEVERIDGE
November 26, 2011
JAMES M. CAIRNSNovember 18, 2011
JOSEPH DENGLER JR.October 15, 2011
WALTER E. FAFATASeptember 14, 2011
ALEX C. GRAPERMay 15, 2012
JAMES C. GROGAN JR.July 26, 2012
JOSEPH E. HEINLEMay 5, 2012
WALTER J. KLINGDecember 8, 2011
JAMES R. PETERMAN JR.October 26, 2011
JOSEPH N. REDONDOMay 2, 2012
GERALD L. ROONEY JR.July 8, 2012
LEONARD F. SCHMANDTFebruary 12, 2012
HARRY P. YOSTNovember 29, 2011
LOCAL UNION No. 214EDWARD P. ANTONOVAGE
November 30, 2011
DAVID T. BAGENSTOSEFebruary 14, 2012
DONALD M. BASHOREApril 13, 2012
LEON S. BOYERJuly 30, 2011
FRANK F. CHRONISTER JR.May 19, 2012
JOSEPH D. COVELY JR.September 6, 2011
EVERETTE CROUSEApril 28, 2010
DAVID M. DASCANIDecember 26, 2011
CLAIR P. FISHERJuly 25, 2012
WILLIAM L. GARBERFebruary 20, 2012
EUGENE W. GEESEYJune 15 , 2012
HAROLD G. GRAYMarch 28, 2012
JAMES A. HENRYJanuary 20, 2012
GLENN A. LANEFebruary 25, 2012
DONALD R. LAWYERMarch 12, 2012
JOSEPH MEDARACOctober 25, 2011
ELBERT C. MOFFITTNovember 22, 2011
WILLIAM C. MOOSESeptember 9, 2011
JOSEPH J. MOTYKAJanuary 17, 2012
CLARENCE W. MOYERDecember 10, 2011
PENROD P. MYERSMay 19, 2012
FLOYD PLOWMANJuly 8, 2012
ELMER H. POTTEIGER JR.March 17, 2010
RALPH H. RAMSEY JR.June 24, 2012
ELI L. SCHAEFERDecember 18, 2011
THOMAS B. SCHOLTESMarch 27, 2012
RODGER L. SMITHAugust 1, 2011
JOHN T. SPICERJuly 26, 2012
LEE E. STRAWBRIDGEFebruary 24, 2012
JOHN D. TOROKFebruary 6, 2012
DONALD L. TRIMMERDecember 3, 2011
ROLAND W. VANCAMPENJanuary 3, 2012
WILLIAM M. WALKERDecember 22, 2011
KENNETH W. WILKINSON JR.September 17, 2011
EDWARD L. ZIMMERMANSeptember 21, 2011
LOCAL UNION No. 230RONALD A. CASE
August 3, 2012
LEONARD M. DOUGLASSMay 18, 2012
ARTHUR E. DOVEDOTJanuary 15, 2012
MARK L. GAYDOSAugust 23, 2011
JOHN B. HOUSTONOctober 3, 2011
MARTIN M. HUDACEKJuly 10, 2012
VINCENT C. LUTCHSeptember 15, 2011
DANIEL M. MILLSFebruary 24, 2012
RICHARD W. NICHOLSONJanuary 26, 2012
THOMAS J. PANZEKFebruary 13, 2012
WILLIAM A. TAYLORFebruary 8, 2012
WILLIAM H. TAYLORMarch 22, 2012
DAVID B. WILLIAMSMay 18, 2012
DONALD E. WILSONFebruary 8, 2012
THOMAS S. WOODRINGNovember 28, 2011
LOCAL UNION No. 268 ROBERT A. BOUQUIN
January 9, 2012
EmployEE BEnEfit nEws — Page Five
IN MEMORIAMWe pause in respectful silence to honor the memory of all our members or former members
whose deaths have been reported to the Fund Office since our last newsletter.
ANTHONY FLEODecember 6, 2011
RAYMOND M. NEWMANMarch 4, 2012
JOSEPH A. ROCHMarch 16, 2012
WILBER W. SEELEY SR.October 23, 2003
LOCAL UNION No. 645KENNETH P. AREY
March 2, 2012
DANIEL BAKERDecember 19, 2011
WILLIAM BARTLESONOctober 10, 2011
ANDREW S. BISTRANDecember 7, 2011
STANLEY G. BODEKAugust 2, 2011
JOHN M. BOYLEApril 18, 2012
LOUIS CAVALIERIJune 3, 2011
EDWARD F. COLLINSNovember 4, 2011
FRANCIS J. DUBASDecember 25, 2011
JOHN J. DUDAApril 4, 2012
DOMINICK M. FRANCESCHELLIJuly 10, 2012
JOHN A. FRANCESCHELLIJuly 11, 2012
FRANK T. GIRVANNovember 17, 2011
ROBERT E. GOBLEJanuary 16, 2012
DENNIS D. GOSSJanuary 24, 2012
KEVIN L. HOLLENBECKDecember 30, 2011
JAMES HUDELSONMay 17, 2012
JOSEPH HUSTYMay 4, 2012
BECKUS KOREYOctober 18, 2011
ROBERT E. LEE JR.May 16, 2012
JOSEPH J. MAZUKANovember 14, 2011
CARL RIFENBERYJanuary 30, 2012
HAROLD L. SHEMANAugust 2, 2012
LEWIS A. TETERMarch 20, 2012
JOHN L. USEFARASeptember 21, 2011
JOHN J. YONCHIKDecember 24, 2011
LOCAL UNION No. 759RUSSELL C. CRIBBS
February 22, 2012
WALLACE W. EDMONDSOctober 28, 2011
WILLIAM E. GEARYJune 11, 2012
GENE A. NADERMay 31, 2008
RICHARD R. PEZZIFebruary 17, 2012
CHARLES K. RITTMANJuly 18, 2012
DONALD J. RUGHOctober 4, 2011
JOHN F. SKOKJanuary 9, 2012
LEWIS E. STEINJuly 21, 2012
JACK D. TAPPERNovember 25, 2011
JAMES R. WILLIAMSJanuary 17, 2012
LINCOLN M. YOUNTOctober 14, 2011
KENNETH R. ZERFOSSApril 10, 2009
LOCAL UNION No. 922KENNETH M. ALBERTS
December 23, 2011
PETER CHUPAMarch 24, 2012
CLARK E. COMPSTONNovember 14, 2011
ARTHUR B. HARDMANNovember 27, 2011
WALTER W. KRISASeptember 1, 2011
JOHN C. McCULLOUGHJune 3, 2012
PHILLIP J. MOLDOVAN SR.September 9, 2011
DOUGLAS A. PICKETT JR.April 14, 2012
EARL J. REITHJanuary 21, 2012
WALTER J. SERTIK JR.May 5, 2012
CHARLES H. STAMM JR.February 9, 2012
LESTER A. ZAHNOctober 21, 2011
LOCAL UNION No. 947CURTIS L. CARLSON
February 2, 2012
DONALD L. SCHUCKERSApril 3, 2012
JOSEPH E. SHEMBEDAJanuary 15, 2012
JAMES F. THOMASFebruary 3, 2012
DENNIS A. WOLFEApril 1, 2012
LOCAL UNION No. 950HOLLIS E. BEATTY
February 9, 2012
KENNETH A. HOCKENBROCHNovember 9, 2011
VICTOR C. PILLOTDecember 25, 2011
FERN E. RUSSLERApril 25, 2012
JOBE SIMCOXNovember 24, 2011
WILLIAM M. SIXFebruary 28, 2012
IVAN L. SMITH SR.March 30, 2012
LOCAL UNION No. 1160GARY J. FLORIJAN
October 27, 2011
MICHAEL HOSTLERJanuary 29, 2012
HARRY C. KRAMEROctober 2, 2011
LEO T. LISWOSKIAugust 14, 2012
THEODORE G. STREIFFJanuary 11, 2012
KARL B. WEIGANDNovember 14, 2011
LOCAL UNION No. 1233GERRY L. HARVEY
September 1, 2011
MICHAEL J. SINKAFebruary 22, 2012
MARK A. WILMESMay 6, 2012
JAMES F. ZIGLERJanuary 23, 2012
Page Six — EmployEE BEnEfit nEws
LOCAL UNION No. 1419GLENN ANDERSON
February 24, 2012
ANTHONY J. DEBIASEApril 30, 2012
KIM W. KONCHANOctober 31, 2011
ROBERT D. LUSCZEKMay 30, 2012
JAMES T. MOONJune 18, 2012
ALFRED E. PILEOctober 29, 2011
JOHN SBARDELLADecember 2, 2011
WILLIAM B. SCHNAVELYJanuary 8, 2012
LOCAL UNION No. 1759RICHARD W. McMASTER
May 27, 2012
JOSEPH S. POPLOWSKINovember 9, 2011
LOCAL UNION No. 1936BRICE T. HOOK JR.
April 29, 2012
LOCAL UNION No. 2235JOHN D. BARCLAY
November 20, 2011
JOHN J. BENEDETTIJanuary 11, 2012
KENNETH H. BENTZOctober 4, 2011
JOHN J. BOLSINGERDecember 30, 2011
ROBERT F. BOLSINGERApril 28, 2012
FRANK BOWERS SR.December 9, 2011
JOSEPH L. DUGANNovember 11, 2011
STANLEY KARAICAApril 28, 2012
PATRICK J. KUBANNovember 11, 2011
HARRY L. LIPPERTNovember 9, 2011
MARK A. LUTESNovember 6, 2011
STEPHEN M. PUKANSKYJanuary 10, 2012
VALENT V. RABOVSKYJune 22, 2012
IN MEMORIAMWe pause in respectful silence to honor the memory of all our members or former members
whose deaths have been reported to the Fund Office since our last newsletter.
WILLIAM J. SOLOMONSeptember 24, 2011
ELI ZLOKAS SR.July 20, 2012
LOCAL UNION No. 2274ROLAND J. BODNAR
November 12, 2011
CHARLES L. COFFMANOctober 12, 2011
WILLIAM J. FENIMOREJune 3, 2012
ROBERT W. FRIESELFebruary 16, 2012
DELBERT M. GLESSNERDecember 22, 2011
LEO J. GRESSICK SR.June 20, 2012
DONALD J. GRIFFITHOctober 2, 2011
JAMES R. HOLLERDecember 12, 2011
JOHN J. JAMISONOctober 21, 2011
GEORGE LOOPENovember 29, 2011
REECE NICHOLSONDecember 1, 2011
ALBERT F. PELLISHFebruary 11, 2012
GLENN R. PIERCEDecember 2, 2011
NELIS T. PLOSS JR.May 22, 2012
ARNOLD W. PRITTSJuly 27, 2012
DONALD P. SHRUMJanuary 20, 2012
ALBERT SUMMERS JR.February 28, 2012
ANDREW TIMKOJanuary 23, 2012
DARRYL P. TRABUCCOFebruary 23, 2012
THOMAS R. VENESKYSeptember 3, 2011
THEODORE F. WIRSINGJuly 15, 2011
LOCAL UNION No. 2507HARRY L. MILLER
November 13, 2011
THEADORE C. NAUGLEOctober 24 , 2011
EmployEE BEnEfit nEws — Page Seven
Date
October 5, 2012 Open enrollment packet to be mailed to eligible participants.
October 8, 2012 through Open enrollment. Please do not wait until the last minute to enroll. If you do not respond by November 7, 2012 November 7, 2012, you will automatically default into the same level of coverage as in 2012.
November 14, 2012 Last day to receive your selection confirmation letter.
November 27, 2012 Bank statement/invoices to be mailed to members.
December 17, 2012 Last day to make payment.
January 1, 2013 Coverage to begin.
TENTATIVE SCHEDULE FOR 2013 GREATER PENNSYLVANIA CARPENTERS’ MEDICAL PLAN OPEN ENROLLMENT
DAVIS VISION RENEWAL RATES9/1/2012 to 8/31/2014
Member only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $115.68
Member plus one . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $231.60
Member plus family . . . . . . . . . . . . . . . . . . . . . . . . . . . $347.16
For more information on Davis Vision,please call the Fund Office.
Page Eight — EmployEE BEnEfit nEws
OPTION ON 2010 ANNUITY/SAVINGS
PLAN DOLLARSAnyone eligible for an option on 2010 Annuity/
Savings Plan dollars should receive that statement from PNC Bank in the same envelope with the September 30, 2012 quarterly statement. Anyone exercising the option to withdraw all or part of the 2010 money will receive the check from PNC Bank during the first week of December 2012.
If you decide to exercise your option to withdraw money, please remember to sign the option form and check the box for the percentage you want to withdraw (100% or 50%). Return the form prior to the due date to the Fund Office using the enclosed envelope.
improving the funded position of the Plan. Here are some of the numbers from our 2012 Valuation:
millions$1,073 Our actuarial liability. What we would need
in the bank today to meet all of our benefit promises accrued to date. This assumes we can make 7.5% going forward and all of our other assumptions are right on.
$ 828 Our actuarial value of assets. This is what the law allows us to use to compare to our actuarial liability to determine our funded percentage. Thus, we have 77.2% of our actuarial liability.
$ 690 Our assets at market value. This represents the actual amount of money in the bank. Note that this is $138 million less than our actuarial value. On a market value basis, we are only 64% funded.
$ 44 The contributions we received last year to fund the plan.
$ 74 The amount paid out last year to our members in retirement, death and disability benefits.
As a result of the plan being 77.2% funded on an actuarial basis, Committee meetings were held to explore alternatives to get the fund safe and recommendations were made to the Board of Trustees who adopted a Plan Amendment to satisfy the criteria of a valid Funding Improvement Plan. You were recently notified of this amendment which lowered the future benefit accrual rate (effective January 2013) from 1.0% to a 0.83%. What this means is that your benefit will not grow as quickly as it did before the change was made. However, this has no impact on the benefit amount you earn prior to January 1, 2013 and, in fact, will help to secure them.
It is important for you to understand that, without modifications such as this and others made in recent years, the Plan’s funded status could deteriorate. Eventually, the Plan would not have enough money to pay all of our current and future retirees (our current active members) for as long as they live.
The Trustees of the plan will continue to be proactive to ensure the long term survival of the fund. If the Trustees are not proactive and did not take appropriate steps, what are the risks? There are multiemployer funds out there who are contemplating mass withdrawals and insolvency.
Aren’t the plan benefits insured by the Pension Benefit Guaranty Corporation (PBGC)? Yes, they are. However,
Understanding the Pension Plan’s Financial Position (continued from page 1)
the PBGC’s guarantee equates to a maximum of $35.75 per month times a participant’s year of service. For example, the maximum monthly guarantee for a retiree with 30 years of service would be $1,072.50. The vast majority of our current active members with 30 years of service will have benefits much higher than that level.
One may ask, with the recent amendment, what is the outlook for the plan? If the plan was to earn 7.5% per year and all of our other assumptions turn out to be realized, it is projected that the Plan would be 100% funded in 2031. If however the plan earns only 6.5% going forward (1% less than our current assumption of 7.5%), the plan would not be fully funded until 2045. If that were the case, our Actuary points out to us that the Fund would be facing additional plan changes in the interim as our status would fall into the critical stage and we would be required to come up with a Rehabilitation Plan consisting of further benefit or contribution rate changes.
In conclusion, our long-time members have been fortunate to have been plan participants during a period when the plan was fully funded and provided for a higher multiplier. Hopefully, not too far down the road, our newer members will also be able to enjoy a higher benefit accrual rate. We all anxiously look forward to that time. What will help most is strong financial market returns and maintaining and increasing our hours of employment by remaining a competent and competitive workforce.
EmployEE BEnEfit nEws — Page Nine
Active Members and Early Retirees Can Save Money on Prescriptions
The following article was submitted to us by Medco (Express Scripts). Keep in mind that, when you use the mail order program, you pay only two copays for a ninety day supply. Retail, you will pay three copays and have to make three trips to the pharmacy.
The Medco Pharmacy®: Savings, safety, and support Did you know that one of the most effective ways to help control your prescription costs is to get the medications you use on a regular basis by mail from the Medco Pharmacy? Mail service is convenient and affordable, and it's already part of your prescription drug plan.
With the Medco Pharmacy, you’ll get:
• Potential savings for you and the Greater Pennsylvania Carpenters’ Medical Plan, because a 90-day supply of medication through the Medco Pharmacy usually costs less than a 90-day supply at retail.
• A state-of-the-art dispensing process with multiple quality checks to help ensure safety and accuracy.
• Convenient delivery right to you, and there’s never a charge for standard shipping.
The Medco Pharmacy offers the support of Medco Specialist Pharmacists. Medco Specialist Pharmacists are available by phone 24/7 to work with you and your doctors to help make sure that your medications work together safely and effectively. These pharmacists each have expertise in the medications used to treat a specific ongoing condition, such as high blood pressure, high cholesterol, depression, diabetes, asthma, osteoporosis, or cancer. Medco Specialist Pharmacists are available to everyone in your prescription drug plan, at no additional cost.
These pharmacists could help you save money on your prescriptions.
Taking your medication as your doctor directed is one of the best ways to help maintain or improve your health. But to take your medication regularly, it helps when it’s affordable. Using potentially lower-cost brands or generics may be ways that could save you money on your medications. In most cases, generic drugs cost less than brand-name drugs.
Medco Specialist Pharmacists can help you see if there are any lower-cost alternatives available under your plan. They can work with your doctor to help you get the right drug for you, based on health and cost.
So join the growing number of Greater Pennsylvania Carpenters’ Medical Plan members who use the Medco Pharmacy mail-order service. To talk with a Medco Specialist Pharmacist privately, or to get started using mail order, just call the number on the back of your prescription drug ID card.
www.medco.com
Are you going through a divorce and need help dealing with the effects? Are you in need of financial advice? Have you lost a loved one and need help dealing with the loss? Is your teenager acting out and you don’t understand why?
Member Assistance Program
These are a few types of questions your MAP can help you resolve. MAP is available to assist you and your family members with these concerns 24/7, 365 days a year. The MAP provides personalized assistance that will meet your needs and the needs of your family members.
To get to the Carpenter’s informational page, go to www.lytleeap.com, enter your password, carpenters, in the Member Log-In box. You will find links to all the components that make-up the MAP - Legal Partner, Financial Partner, Frequently Asked Questions, and a direct link to Work/Life Partners.
If you click on the link, orientation video, beside the purple arrow on the lower right side of the page, you can view a four-minute video that explains exactly how the MAP works and how easy it is to access.
MAP Can Help With:
Stress Marital/relationship conflicts Domestic violence and abuse Substance abuse Gambling Work-related problems Balancing work and personal life Childcare issues Eldercare Grief and depression Financial difficulties Legal matters Child and adolescent issues
This program is free to you and your family members and it is completely confidential. Why try to deal with problems and concerns by yourself? Let the MAP help. That’s what they are there to do!
888-627-6637 www.lytleeap.com
Password - carpenters
Page Ten — EmployEE BEnEfit nEws
Dear Greater Pennsylvania Union Carpenter:
United Concordia is pleased to announce that this year, we will be offering you a dual choice for your voluntary dental benefit. You can elect to enroll in ConcordiaPLUS, the dental HMO that is already offered or you may enroll in ConcordiaAccess, a new dental plan that provides you with more freedom of choice.
How Do the Programs Work?
The ConcordiaPLUS plan is a managed care dental plan that requires your selection of a Primary Dental Office (PDO) from our ConcordiaPLUS network for you and each of your covered family members.
Payment for covered services is made according to the enclosed ConcordiaPLUSBenefits Summary and is based upon United Concordiaʼs Maximum Allowable Charge (MAC). You will be responsible only for the copayment amount for each procedure performed. There are no deductibles, annual maximums or lifetime maximums on orthodontic services. Furthermore, you do not need to file any claim forms. If you have any treatment in progress, such as orthodontic work, bridgework, etc., please contact Dental Customer Service to confirm coverage.
You can select a PDO by either visiting United Concordiaʼs web site at www.ucci.comand selecting ConcordiaPLUS under the provider section or by contacting Dental Customer Service at 1-866-357-3304.
The ConcordiaAccess plan is a passive PPO plan for your diagnostic, preventive and basic services and a discount plan for all other dental services. This plan provides you with a broader selection of providers, who are in the ConcordiaAccess network. You are not even required to use a participating provider for covered services. However, participating providers accept our payment as payment in full, less any deductible or coinsurance which is the memberʼs responsibility. Non participating providers may balance bill you for charges which exceed our Maximum Allowable Charge (MAC).
You are required to use a participating provider for non covered, discounted services as those providers agree to offer you a discount on these services. The discount is typically around 20% of the providerʼs normal charge.
Dear Greater Pennsylvania Union Carpenter: United Concordia is pleased to announce that this year, we will be offering you a dual choice for your voluntary dental benefit. You can elect to enroll in ConcordiaPLUS, a dental HMO, or you may enroll in ConcordiaAccess, a dental plan that provides you with more freedom of choice.
How Do the Programs Work?The ConcordiaPLUS plan is a managed care dental plan that requires your selection of a Primary Dental Office (PDO) from our ConcordiaPLUS network for you and each of your covered family members.
Payment for covered services is made according to the ConcordiaPLUS Benefits Summary and is based upon United Concordia’s Maximum Allowable Charge (MAC). You will be responsible only for the copayment amount for each procedure performed. There are no deductibles, annual maximums or lifetime maximums on orthodontic services. Furthermore, you do not need to file any claim forms. If you have any treatment in progress, such as orthodontic work, bridgework, etc., please contact Dental Customer Service to confirm coverage.
You can select a PDO by either visiting United Concordia’s web site at www.ucci.com and selecting ConcordiaPLUS under the provider section or by contacting Dental Customer Service at 1-866-357-3304.
The ConcordiaAccess plan is a passive PPO plan for your diagnostic, preventive and basic services and a discount plan for all other dental services. This plan provides you with a broader selection of providers, who are in the ConcordiaAccess network. You are not even required to use a participating provider for covered services. However, participating providers accept our payment as payment in full, less any deductible or coinsurance which is the member’s responsibility. Non participating providers may balance bill you for charges which exceed our Maximum Allowable Charge (MAC).
You are required to use a participating provider for non covered, discounted services as those providers agree to offer you a discount on these services. The discount is typically around 20% of the provider’s normal charge.
Cost of the Programs ConcordiaPLUS Premiums: ConcordiaAccess Premiums:
Coverage Level Quarterly Premium Coverage Level Quarterly Premium
Single $76.41 Single $58.77 Two Party $148.62 Two Party 105.27 Family $228.75 Family $175.98
How Do I Enroll in the Coverage?Please contact United Concordia toll-free at 1-866-477-2433 for an enrollment kit. Complete an enrollment form and return it with a check for the first three months of premium (see box for quarterly costs). The information should be forwarded to:
United Concordia Companies, Inc.PO Box 69423
Harrisburg, PA 17106-9423
Mail in cut-off is 12/20/2012 for a 1/1/2013 effective dateMail in cut-off is 1/20/2013 for a 2/1/2013 effective dateMail in cut-off is 2/20/2013 for a 3/1/2013 effective date
Please note that if you have not enrolled by 3/1/2013, you will not be eligible until the next open enrollment for 1/1/2014.Please make checks payable to United Concordia Companies, Inc. and be sure to submit it to us with your enrollment application no later than the 20th of the month prior to the requested effective date as outlined above.
EmployEE BEnEfit nEws — Page Eleven
Carpenters’ Combined Funds, Inc.650 Ridge Road, Suite 300Pittsburgh, Pennsylvania 15205
Non-Profit Org.U.S. Postage
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