Pension Plan Aggregation
Aggregation – for the Good of All!
It took over 10 years, but Exchange leadership has persevered and got it done… Aggregation has been approved by the Department of Defense (DoD)!
What Does This Mean?
Pension Aggregation restructures retirement liabilities and related trust assets. The trustees would shift the liabilities for the Supplemental (EMP) plan benefits from the EMP plan to the Basic plan, so they would be funded from the Basic Trust. Then most EMP plan assets would be used to fund the Post Retirement Medical (PRM) liabilities. This restructuring increasing the financial strength of the Exchange retirement plans. This provides the best financial interest for all stakeholders, including the Exchange employees and retirees. The Military Morale, Welfare and Recreation (MWR) services will also benefit by receiving larger Exchange dividends.
The most important things you need to know about Aggregation:
- Plan aggregation will not result in any change to your pension benefits.
- Your benefits are secure. Benefit plans are financially strong and will remain so because of this change in alignment of the trusts.
- Plan Aggregation will reduce the amount of money we contribute to the trusts; therefore, having a positive impact on earnings.
- The Exchange will continue to fund the cost for all retirement benefits, including the post retirement medical, dental and life insurance coverage for eligible retirees and their family members as promised
If you have additional questions not addressed here, please send them by email or contact the Exchange Benefits Branch at (800) 519-3381.