On September 27, 2016, the unions and management signed a five-year contract governing CIRS benefits for the period July 1, 2015 – June 30, 2020. The changes to the CIRS Plans under this contract are summarized below:
CIRS PENSION PLAN:
Under the agreement, all current employees and those hired prior to October 1, 2016 (now referred to as “Tier I Members”) will experience no change in their CIRS Pension Plan benefits or future accruals.
A new pension benefit tier is established for employees hired on or after October 1, 2016 (now referred to as “Tier II Members”) including the following changes:
- Normal retirement age of 64 with 5 years of Employment Service;
- Mandatory (after-tax) employee contribution equal to:
- 2% of base salary for those earning up to $70,000,
- 2.5% for those earning $70,001 and up to $100,000, and
- 3% for those earning $100,001 and up to the IRS maximum recognizable compensation limit;
- Benefit multiplier of 1.4%; and
- Elimination of the retroactive crediting of the first year of service.
All other pension plan provisions, including Rule of 85, are preserved for Tier II Members
CIRS 401(k) SAVINGS PLAN:
The mandatory 2% contribution to the CIRS Savings Plan will continue for existing members until December 31, 2016. Effective January 1, 2017, members will no longer be required to contribute to the Plan. As of January 1, 2017, these members will be able to reduce their contribution percentage, if desired, by contacting Voya.
After January 1st, new plan members will be defaulted at a 0% contribution rate (instead of 2%) until they make an active election with Voya to change their contribution election.
The employer match to the CIRS Savings Plan remains suspended.
CIRS GROUP LIFE PLAN:
There are no changes to the CIRS Group Life Plan.