Updates

We are providing informational items for the 2024 calendar year related to the CIRS Plans:

2024 IRS Compensation Limits

• The IRS sets annual limits on the salary that can be used by qualified pension plans such as the CIRS Pension Plan. These limits are applied on a plan year basis (July 1 – June 30).  The CIRS Pension Plan already takes these limits into account for all required purposes (benefit amounts, employer contributions, etc.).  However, you as the employer, must be aware of these limits as they apply to the employee contributions for Tier II Members under the CIRS Pension Plan.  The July 1, 2023 to June 30, 2024 compensation limit is $330,000 which means that the maximum Tier II employee pension contribution is $9,900 for the 2023-2024 Plan Year.  These amounts will increase to $345,000 and $10,350 for the 2024-2025 Plan Year.

2024 IRS Pre-Tax Contribution Limits

• The IRS sets annual limits on the amount of pre-tax contributions employees can make to a 401(k) plan.  These limits are applicable on a calendar year basis (January 1 – December 31).  For 2024, these limits are $23,000 for regular 401(k) pre-tax deferrals and $7,500 for 401(k) pre-tax catch-up contributions.

2024 Employee Contribution Catch-up Form

• Employee contribution elections (pre and post-tax) to the CIRS 401(k) Savings Plan must be made by Members through Voya.  However, if Members wish to elect catch-up contributions, they must complete the attached Catch-up Form and submit to you (the employer).  Catch-up contributions are additional pre-tax contributions that Members who will be age 50 or older by the last day of the calendar year can make in addition to the IRS regular pre-tax contributions. Catch-up forms can be found here: https://cirsplans.org/library/

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.