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Hawaii Electricians Trust Funds SUMMARY ANNUAL REPORT The Trustees of the Hawaii Electricians Trust Funds are pleased to present these Summaries of the Annual Reports for the Trust Funds in which you may have participated in during the fiscal year ended September 30, 2009.
This is a summary of the annual report for the Hawaii Electricians Annuity Fund; Employer Identification Number: 99-6020486, for the plan year beginning on October 1, 2008 and ending on September 30, 2009. The annual report has been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA). BASIC FINANCIAL STATEMENT Benefits under the plan are provided by a Trust. Plan expenses were $15,898,522. These expenses included $598,862, in administrative expenses and $15,299,660 in benefits paid to participants and beneficiaries. A total of 3,180 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. The value of plan assets, after subtracting liabilities of the plan, was $219,005,536 as of September 30, 2009, compared to $218,302,402 as of October 1, 2008. During the plan year, the plan experienced an increase in its net assets of $703,134. This increase includes unrealized appreciation or depreciation in the value of the plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. The plan had total income of $16,601,656, including employer contributions of $14,978,215, losses of ($14,861,033) from the sale of assets, and earnings from investments of $16,413,455. YOUR RIGHTS TO ADDITIONAL INFORMATION You have the right to receive a copy of the full annual report, or any
part thereof, on request. The items listed below are included in that report:
To obtain a copy of the full annual report, or any part thereof, write or call the office of Travis Umemoto, who is the Administrator, 1935 Hau Street, Room 300, Honolulu, Hawaii 96819-5003, telephone: (808) 841-6169. The charge to cover copying costs will be $6.70 for the full annual report, or $.10 per page for any part thereof. You also have the right to receive from the plan administrator on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. You also have the legally protected right to examine these documents at the main office of the plan located at 1935 Hau Street, Room 300, Honolulu, Hawaii 96819, and at the U. S. Department of Labor in Washington, D. C., or to obtain a copy from the U. S. Department of Labor upon payment of copying costs. Requests to the Department of Labor should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U. S. Department of Labor, 200 Constitution Avenue, Washington, D.C. 20210. ADDITIONAL EXPLANATION The total income of the Plan of $16,601,656 as shown in the section under the heading Basic Financial Statement, includes “other income” of $71,019 which is in addition to income from Employer contributions, losses from the sale of assets, and earnings from investments during the plan year.
This is a summary of the annual report for the Hawaii Electricians Health & Welfare Fund; Employer Identification Number: 99-0104618, for the plan year beginning on October 1, 2008 and ending on September 30, 2009. The annual report has been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA). The Board of Trustees of the Fund has committed itself to pay certain medical, surgical, hospital, prescription drug, annual physical exams, vision care, and dental benefit claims incurred under the terms of the plan. INSURANCE INFORMATION The plan has contracts with Pacific Guardian Life to pay life insurance benefits and to pay weekly disability benefits for the first year claims incurred under the terms of the plan and Hawaii Medical Service Association (HMSA) to pay medical benefits for qualified retirees with Medicare. The total premiums paid for the policy or contract periods ending within the plan year ending on September 30, 2009 were $1,209,379. Because the contract with Pacific Guardian Life is a so-called “experience-rated” contract, the premium costs are affected by, among other things, the number and size of claims. Of the total insurance premiums paid for the policy or contract periods ending within the plan year ending on September 30, 2009, the premiums paid under such experience-rated contracts were $61,190. BASIC FINANCIAL STATEMENT The value of plan assets, after subtracting liabilities of the plan, was $51,318,148 as of September 30, 2009, compared to $48,235,698 as of October 1, 2008. During the plan year, the plan experienced an increase in its net assets of $3,082,450. This increase includes unrealized appreciation or depreciation in the value of the plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $19,883,273, including employer contributions of $17,446,814, employee contributions of $971,351, and earnings from investments of $1,361,667. Plan expenses were $16,800,823. These expenses included $1,448,223 in administrative expenses and $15,352,600 in benefits paid to participants and beneficiaries. YOUR RIGHTS TO ADDITIONAL INFORMATION You have the right to receive a copy of the full annual report, or
any part thereof, on request. The items listed below are included in that report:
To obtain a full copy of the annual report, or any part thereof, write or call the office of Travis Umemoto, who is the Administrator, 1935 Hau Street, Room 300, Honolulu, Hawaii 96819-5003, telephone: (808) 841-6169. The charge to cover copying costs will be $9.50 for the full annual report, or $.10 per page for any part thereof. You also have the right to receive from the plan administrator on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. You also have the legally protected right to examine these documents at the main office of the plan located at 1935 Hau Street, Room 300, Honolulu, Hawaii 96819, and at the U. S. Department of Labor in Washington, D. C., or to obtain a copy from the U. S. Department of Labor upon payment of copying costs. Requests to the Department of Labor should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U. S. Department of Labor, 200 Constitution Avenue, Washington, D.C. 20210. ADDITIONAL EXPLANATION The total income of the Plan of $19,883,273 as shown in the section under the heading Basic Financial Statement, includes “other income” of $103,441 which is in addition to income from Employer contributions, employee contributions, and earnings from investments during the plan year.
This is a summary of the annual report for the Hawaii Electricians Supplemental Unemployment Benefit Fund; Employer Identification Number: 99-0163846, for the plan year beginning on October 1, 2008 and ending on September 30, 2009. The annual report has been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA). The Board of Trustees of the Fund has committed itself to pay all SUB benefit claims incurred under the terms of the plan. BASIC FINANCIAL STATEMENT The value of plan assets, after subtracting liabilities of the plan, was $15,344,204 as of September 30, 2009, compared to $15,585,667 as of October 1, 2008. During the plan year, the plan experienced a decrease in its net assets of ($241,463). This decrease includes unrealized appreciation or depreciation in the value of the plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $3,545,648, including employer contributions of $3,489,447 losses from the sale of assets of ($535,980), and earnings from investments of $224,817. Plan expenses were $3,787,111. These expenses included $177,551 in administrative expenses and $3,609,560 in benefits paid to participants and beneficiaries. YOUR RIGHTS TO ADDITIONAL INFORMATION You have the right to receive a copy of the full annual report, or
any part thereof, on request. The items listed below are included in
that report:
To obtain a full copy of the annual report, or any part thereof, write or call the office of Travis Umemoto, who is the Administrator, 1935 Hau Street, Room 300, Honolulu, Hawaii 96819-5003, telephone: (808) 841-6169. The charge to cover copying costs will be $2.50 for the full annual report, or $.10 per page for any part thereof. You also have the right to receive from the plan administrator on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. You also have the legally protected right to examine these documents at the main office of the plan located at 1935 Hau Street, Room 300, Honolulu, Hawaii 96819, and at the U. S. Department of Labor in Washington, D. C., or to obtain a copy from the U. S. Department of Labor upon payment of copying costs. Requests to the Department of Labor should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U. S. Department of Labor, 200 Constitution Avenue, Washington, D.C. 20210. ADDITIONAL EXPLANATION The total income of the Plan of $3,545,648 as shown in the section under the heading Basic Financial Statement, includes “other income” of $367,364 which is in addition to income from Employer contributions, losses from the sale of assets, and earnings from investments during the plan year.
This is a summary of the annual report for the Hawaii Electricians Training Fund; Employer Identification Number: 99-6005392, for the plan year beginning on October 1, 2008 and ending on September 30, 2009. The annual report has been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA). The Board of Trustees of the Fund has committed itself to pay all apprenticeship, journeyman training, safety, and general education benefit expenses and claims incurred under the terms of the plan. BASIC FINANCIAL STATEMENT The value of plan assets, after subtracting liabilities of the plan, was $10,434,577 as of September 30, 2009, compared to $8,884,073 as of October 1, 2008. During the plan year, the plan experienced an increase in its net assets of $1,550,504. This increase includes unrealized appreciation or depreciation in the value of the plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $3,127,027, including employer contributions of $2,835,958, losses from the sale of assets of ($2,114), and earnings from investments of $64,434. Plan expenses were $1,576,523. These expenses included $1,576,523 in administrative expenses. YOUR RIGHTS TO ADDITIONAL INFORMATION You have the right to receive a copy of the full annual report, or
any part thereof, on request. The items listed below are included
in that report:
To obtain a full copy of the annual report, or any part thereof, write or call the office of Travis Umemoto, who is the Administrator, 1935 Hau Street, Room 300, Honolulu, Hawaii 96819-5003, telephone: (808) 841-6169. The charge to cover copying costs will be $2.60 for the full annual report, or $.10 per page for any part thereof. You also have the right to receive from the plan administrator on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. You also have the legally protected right to examine these documents at the main office of the plan located at 1935 Hau Street, Room 300, Honolulu, Hawaii 96819, and at the U. S. Department of Labor in Washington, D. C., or to obtain a copy from the U. S. Department of Labor upon payment of copying costs. Requests to the Department of Labor should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U. S. Department of Labor, 200 Constitution Avenue, Washington, D.C. 20210. ADDITIONAL EXPLANATION The total income of the Plan of $3,127,027 as shown in the section under the heading Basic Financial Statement, includes “other income” of $225,672 and “other contributions” of $3,077 which are in addition to income from Employer contributions, losses from the sale of assets, and earnings from investments during the plan year.
This is a summary of the annual report for the Hawaii Electricians Vacation & Holiday Fund; Employer Identification Number: 99- 6015951, for the plan year beginning on October 1, 2008 and ending on September 30, 2009. The annual report has been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA). The Board of Trustees of the Fund has committed itself to pay all vacation and holiday benefit claims incurred under the terms of the plan. BASIC FINANCIAL STATEMENT The value of plan assets, after subtracting liabilities of the plan, was $13,805,265 as of September 30, 2009, compared to $14,364,868 as of October 1, 2008. During the plan year, the plan experienced a decrease in its net assets of ($559,603). This decrease includes unrealized appreciation or depreciation in the value of the plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $10,712,480, including employer contributions of $10,481,216, gains from the sale of assets of $53,125, and earnings from investments of $131,405. Plan expenses were $11,272,083. These expenses included $212,128 in administrative expenses and $11,059,955 in benefits paid to participants and beneficiaries. YOUR RIGHTS TO ADDITIONAL INFORMATION You have the right to receive a copy of the full annual report, or
any part thereof, on request. The items listed below are included in
that report:
To obtain a full copy of the annual report, or any part thereof, write or call the office of Travis Umemoto, who is the Administrator, 1935 Hau Street, Room 300, Honolulu, Hawaii 96819-5003, telephone: (808) 841-6169. The charge to cover copying costs will be $2.80 for the full annual report, or $.10 per page for any part thereof. You also have the right to receive from the plan administrator on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. You also have the legally protected right to examine these documents at the main office of the plan located at 1935 Hau Street, Room 300, Honolulu, Hawaii 96819, and at the U. S. Department of Labor in Washington, D. C., or to obtain a copy from the U. S. Department of Labor upon payment of copying costs. Requests to the Department of Labor should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U. S. Department of Labor, 200 Constitution Avenue, Washington, D.C. 20210. ADDITIONAL EXPLANATION The total income of the Plan of $10,712,480 as shown in the section under the heading Basic Financial Statement, includes “other income” of $46,734 which is in addition to income from Employer contributions, gains from the sale of assets, and earnings from investments during the plan year.
This is a summary of the annual report for the Hawaii Electricians Prepaid Legal Fund; Employer Identification Number: 99-0163849, for the plan year beginning on October 1, 2008 and ending on September 30, 2009. The annual report has been filed with the Employee Benefits Security Administration, as required under the Employee Retirement Income Security Act of 1974 (ERISA). The Board of Trustees of the Fund has committed itself to pay all legal services claims incurred under the terms of the plan. BASIC FINANCIAL STATEMENT The value of plan assets, after subtracting liabilities of the plan, was $522,483 as of September 30, 2009, compared to $579,060 as of October 1, 2008. During the plan year, the plan experienced a decrease in its net assets of ($56,577). This decrease includes unrealized appreciation or depreciation in the value of the plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of the assets at the beginning of the year or the cost of assets acquired during the year. During the plan year, the plan had total income of $95,617, including employer contributions of $91,219 and earnings from investments of $971. Plan expenses were $152,194. These expenses included $88,596 in administrative expenses, and $63,598 in benefits paid to participants and beneficiaries. YOUR RIGHTS TO ADDITIONAL INFORMATION You have the right to receive a copy of the full annual report, or
any part thereof, on request. The items listed below are included in
that report:
To obtain a full copy of the annual report, or any part thereof, write or call the office of Travis Umemoto, who is the Administrator, 1935 Hau Street, Room 300, Honolulu, Hawaii 96819-5003, telephone: (808) 841-6169. The charge to cover copying costs will be $2.10 for the full annual report, or $.10 per page for any part thereof. You also have the right to receive from the plan administrator on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both. If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report. The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. You also have the legally protected right to examine these documents at the main office of the plan located at 1935 Hau Street, Room 300, Honolulu, Hawaii 96819, and at the U. S. Department of Labor in Washington, D. C., or to obtain a copy from the U. S. Department of Labor upon payment of copying costs. Requests to the Department of Labor should be addressed to: Public Disclosure Room, Room N-1513, Employee Benefits Security Administration, U. S. Department of Labor, 200 Constitution Avenue, Washington, D.C. 20210. ADDITIONAL EXPLANATION The total income of the Plan of $95,617 as shown in the section under the heading Basic Financial Statement, includes “other income” of $3,427 which is in addition to income from Employer contributions and earnings from investments during the plan year.
Hawaii Electricians Health & Welfare Fund Participant Notice Women’s Health and Cancer Rights Act of 1998 Requires Coverage for Reconstructive Surgery After Mastectomies On October 21, 1998, President Clinton signed the Women’s Health and Cancer Rights Act of 1998, which is part of the Omnibus Appropriations Bill. The Act requires that plans, which provide medical and surgical benefits for mastectomies, must also cover certain reconstructive surgery, as described below. This notice is to inform you that the Hawaii Electricians Health and Welfare Fund’s Comprehensive Medical Group Plan complies with this Act. The Comprehensive Medical Group Plan, which currently covers
mastectomies, provides coverage for the following services, as determined
in consultation with the attending physician and the patient:
Coverage for the above-mentioned services is subject to any plan deductibles and coinsurance provisions that may apply. If you should have any questions regarding coverage for mastectomies or reconstructive surgery, please call the Administrative Office at 841-6169 or for neighbor islands (toll free) 1-800-622-3830.
INTRODUCTION This notice includes important funding information about your pension plan ("the Plan"). This notice also provides a summary of federal rules governing multiemployer plans in reorganization and insolvent plans and benefit payments guaranteed by the Pension Benefit Guaranty Corporation (PBGC), a federal agency. This notice is for the plan year beginning October 1, 2008 and ending September 30, 2009 (referred to hereafter as "Plan Year"). FUNDED PERCENTAGE The funded percentage of a plan is a measure of how well that plan is funded. This percentage is obtained by dividing the Plan’s assets by its liabilities on the valuation date for the plan year. In general, the higher the percentage, the better funded the plan. The Plan’s funded percentage for the Plan Year and 2 preceding plan years is set forth in the chart below, along with a statement of the value of the Plan’s assets and liabilities for the same period.
TRANSITION DATA For a brief transition period, the Plan is not required by law to report certain funding related information because such information may not exist for plan years before 2008. The plan has entered “not applicable” in the chart above to identify the information it does not have. In lieu of that information, however, the Plan is providing you with comparable information that reflects the funding status of the Plan under the law then in effect. For 2007 the Plan’s “funded current liability percentage” was 72.5%, the Plan’s assets1 were $182,243,598 and Plan liabilities were $251,487,735. For 2006 the Plan’s “funded current liability percentage” was 71.7%, the Plan’s assets1 were $170,515,341 and Plan liabilities were $237,742,676. FAIR MARKET VALUE OF ASSETS Asset values in the chart above are actuarial values, not market values. Market values tend to show a clearer picture of a plan’s funded status as of a given point in time. However, because market values can fluctuate daily based on factors in the marketplace, such as changes in the stock market, pension law allows plans to use actuarial values for funding purposes. While actuarial values fluctuate less than market values, they are estimates. As of September 30, 2009 the estimated fair market value of the Plan’s assets was $165,269,820 (Unaudited). As of September 30, 2008 the fair market value of the Plan’s assets was $169,118,112. As of September 30, 2007, the fair market value of the Plan’s assets was $195,584,552. 1 For funding purposes, the asset value is the actuarial value of assets or “adjusted cost value” which is different from the “fair market value” of assets. PARTICIPANT INFORMATION The total number of participants in the plan as of the Plan’s valuation date was 2,836. Of this number, 1,452 were active participants, 1,042 were retired or separated from service and receiving benefits, and 342 were retired or separated from service and entitled to future benefits. FUNDING & INVESTMENT POLICIES The law requires that every pension plan have a procedure for establishing a funding policy to carry out the plan objectives. A funding policy relates to the level of contributions needed to pay for benefits promised under the plan currently and over the years. The funding policy of the Plan is as follows: The Plan is funded by contributions made. by employers pursuant to collective bargaining agreements with the Union. As of October 1, 2008, the Trustees had adopted a funding policy based on amortizing the Plan's unfunded actuarial liability over a two-year period from October 1, 2008. Once money is contributed to the Plan, the money is invested by plan officials called fiduciaries. Specific investments are made in accordance with the Plan’s investment policy. Generally speaking, an investment policy is a written statement that provides the fiduciaries who are responsible for plan investments with guidelines or general instructions concerning various types or categories of investment management decisions. The investment policy of the Plan is as follows: Investment Principles and Objectives Asset Allocation Investment Management and Performance Please note that this is only a summary of the formal investment policy adopted by the Trustees. In accordance with the Plan’s investment policy, the Plan’s assets were allocated among the following categories of investments, as of the end of the Plan Year. These allocations are percentages of total assets:
CRITICAL OR ENDANGERED STATUS Under federal penSion law a plan generally will be considered to be in “endangered” status if! at the beginning of the plan year, the funded percentage of the plan is less than 80 percent or in “critical” status if the percentage is less than 65 percent (other factors may also apply). If a pension plan enters endangered status! the trustees of the plan are required to adopt a funding improvement plan. Similarly, if a penSion plan enters critical status, the trustees of the plan are required to adopt a rehabilitation plan. Rehabilitation and funding improvement plans establish steps and benchmarks for pension plans to improve their funding status over a specified period of time. The Plan was not in endangered or critical status in the Plan Year. RIGHT TO REQUEST A COPY OF THE ANNUAL REPORT A pension plan is required to file with the US Department of Labor an annual report (i.e., Form 5500) containing financial and other information about the plan. Copies of the annual report are available from the US Department of Labor, Employee Benefits Security Administration’s Public Disclosure Room at 200 Constitution Avenue, NW, Room N-1513, Washington, DC 20210, or by calling 202.693.8673. Or you may obtain a copy of the Plan's annual report by making a written request to the plan administrator. SUMMARY OF RULES GOVERNING PLANS IN REORGANIZATION AND INSOLVENT PLANS Federal law has a number of special rules that apply to financially troubled multiemployer plans. Under so-called “plan reorganization rules,” a plan with adverse financial experience may need to increase required contributions and may, under certain circumstances, reduce benefits that are not eligible for the PBGC’s guarantee (generally, benefits that have been in effect for less than 60 months). If a plan is in reorganization status, it must provide notification that the plan is in reorganization status and that, if contributions are not increased, accrued benefits under the plan may be reduced or an excise tax may be imposed (or both). The law requires the plan to furnish this notification to each contributing employer and the labor organization. Despite the special plan reorganization rules, a plan in reorganization nevertheless could become insolvent. A plan is insolvent for a plan year if its available financial resources are not sufficient to pay benefits when due for the plan year. An insolvent plan must reduce benefit payments to the highest level that can be paid from the plan’s available financial resources. If such resources are not enough to pay benefits at a level specified by law (see Benefit Payments Guaranteed by the PBGC, below), the plan must apply to the PBGC for financial assistance. The PBGC, by law, will loan the plan the amount necessary to pay benefits at the guaranteed level. Reduced benefits may be restored if the plan's financial condition improves. A plan that becomes insolvent must provide prompt notification of the insolvency to participants and beneficiaries, contributing employers, labor unions representing participants, and PBGC. In addition, participants and beneficiaries also must receive information regarding whether, and how, their benefits will be reduced or affected as a result of the insolvency, including loss of a lump sum option. This information will be provided for each year the plan is insolvent. BENEFIT PAYMENTS GUARANTEED BY THE PBGC The maximum benefit that the PBGC guarantees is set by law. Only vested benefits are guaranteed. Specifically, the PBGC guarantees a monthly benefit payment equal to 100 percent of the first $11 of the Plan’s monthly benefit accrual rate, plus 75 percent of the next $33 of the accrual rate, times each year of credited service. The PBGC’s maximum guarantee, therefore, is $35.75 per month times a participant’s years of credited service. Example 1: If a participant with 10 years of credited service has an accrued monthly benefit of $500, the accrual rate for purposes of determining the PBGC guarantee would be determined by dividing the monthly benefit by the participant’s years of service ($500/10), which equals $50. The guaranteed amount for a $50 monthly accrual rate is equal to the sum of $11 plus $24.75 (.75 x $33), or $35.75. Thus, the participant’s guaranteed monthly benefit is $357.50 ($35.75 x 10). Example 2: If the participant in Example 1 has an accrued monthly benefit of $200, the accrual rate for purposes of determining the guarantee would be $20 (or $200/10). The guaranteed amount for a $20 monthly accrual rate is equal to the sum of $11 plus $6.75 (.75 x $9), or $17.75. Thus, the participant’s guaranteed monthly benefit would be $177.50 ($17.75 x 10). The PBGC guarantees pension benefits payable at normal retirement age and some early retirement benefits. In calculating a person’s monthly payment, the PBGC will disregard any benefit increases that were made under the plan within 60 months before the earlier of the plan’s termination or insolvency (or benefits that were in effect for less than 60 months at the time of termination or insolvency). Similarly, the PBGC does not guarantee pre-retirement death benefits to a spouse or beneficiary (e.g., a qualified pre-retirement survivor annuity) if the participant dies after the plan terminates, benefits above the normal retirement benefit, disability benefits not in pay status, or non-pension benefits, such as health insurance, life insurance, death benefits, vacation pay, or severance pay. WHERE TO GET MORE INFORMATION For more information about this notice, you may contact Travis Umemoto, at 808-841-6169, or 1935 Hau Street, Room 300, Honolulu, HI 96819, or tumemoto@heao.us.com. For identification purposes, the official plan number is 002 and the plan sponsor’s employer identification number or “EIN” is 99-6005391. For more information about the PBGC and benefit guarantees, go to PBGC’s website, www.pbgc.gov, or call PBGC toll-free at 1-800-400-7242 (TIY/TDD users may call the Federal relay service toll free at 1-800-877-8339 and ask to be connected to 1-800-400-7242).
INTRODUCTION This notice includes important funding information about your pension plan (“the Plan”). This notice also provides a summary of federal rules governing multiemployer plans in reorganization and insolvent plans and benefit payments guaranteed by the Pension Benefit Guaranty Corporation (PBGC), a federal agency. This notice is for the plan year beginning January 1, 2009 and ending December 31, 2009 (referred to hereafter as “Plan Year”). FUNDED PERCENTAGE The funded percentage of a plan is a measure of how well that plan is funded. This percentage is obtained by dividing the Plan’s assets by its liabilities on the valuation date for the plan year. In general, the higher the percentage, the better funded the plan. The Plan’s funded percentage for the Plan Year and 2 preceding plan years is set forth in the chart below, along with a statement of the value of the Plan's assets and liabilities for the same period.
TRANSITION DATA For a brief transition period, the Plan is not required by law to report certain funding related information because such information may not exist for plan years before 2008. The plan has entered “N/A” (not applicable) in the chart above to identify the information it does not have. In lieu of that information, however, the Plan is providing you with comparable information that reflects the funding status of the Plan under the law then in effect. For 2007 the Plan’s “funded current liability percentage” was 82.5%, the Plan’s assets1 were $19,538,859, and Plan liabilities were $23,684,819. FAIR MARKET VALUE OF ASSETS Asset values in the chart above are actuarial values, not market values. Market values tend to show a clearer picture of a plan’s funded status as of a given point in time. However, because market values can fluctuate daily based on factors in the marketplace, such as changes in the stock market, pension law allows plans to use actuarial values for funding purposes. While actuarial values fluctuate less than market values, they are estimates. As of December 31, 2009 the estimated fair market value of the Plan's assets was $27,755,519 (Unaudited). As of December 31,2008 the fair market value of the Plan’s assets was $23,143,885. As of December 31, 2007, the fair market value of the Plan's assets was $25,320,029. 1 For funding purposes, the asset value is the actuarial value of assets or “adjusted cost value” which is different from the "fair market value" of assets. PARTICIPANT INFORMATION The total number of participants in the plan as of the Plan’s valuation date was 745. Of this number, 590 were active participants, 42 were retired or separated from service and receiving benefits, and 113 were retired or separated from service and entitled to future benefits. FUNDING & INVESTMENT POLICIES The law requires that every pension plan have a procedure for establishing a funding policy to carry out the plan objectives. A funding policy relates to the level of contributions needed to pay for benefits promised under the plan currently and over the years. The funding policy of the Plan is as follows: The Plan is funded by contributions made by employers pursuant to collective bargaining agreements with the Union. As of January 1, 2009, the Trustees had adopted a funding policy based on amortizing the Plan's unfunded actuarial liability over a seven-year period from January 1, 2009. Once money is contributed to the Plan, the money is invested by plan officials called fiduciaries. Specific investments are made in accordance with the Plan’s investment policy. Generally speaking, an investment policy is a written statement that provides the fiduciaries who are responsible for plan investments with guidelines or general instructions concerning various types or categories of investment management decisions. The investment policy of the Plan is as follows: Investment Principles and Objectives Asset Allocation Investment Management and Performance Please note that that this is only a summary of the formal investment policy adopted by the Trustees. In accordance with the Plan’s investment policy, the Plan’s assets were allocated among the following categories of investments, as of the end of the Plan Year. These allocations are percentages of total assets: contributions are not increased, accrued benefits under the plan may be reduced or an excise tax may be imposed (or both). The law requires the plan to furnish this notification to each contributing employer and the labor organization. Despite the special plan reorganization rules, a plan in reorganization nevertheless could become insolvent. A plan is insolvent for a plan year if its available financial resources are not sufficient to pay benefits when due for the plan year. An insolvent plan must reduce benefit payments to the highest level that can be paid from the plan’s available financial resources. If such resources are not enough to pay benefits at a level specified by law (see Benefit Payments Guaranteed by the PBGC, below), the plan must apply to the PBGC for financial assistance. The PBGC, by law, will loan the plan the amount necessary to pay benefits at the guaranteed level. Reduced benefits may be restored if the plan's financial condition improves. A plan that becomes insolvent must provide prompt notification of the insolvency to participants and beneficiaries, contributing employers, labor unions representing participants, and PBGC. In addition, participants and beneficiaries also must receive information regarding whether, and how, their benefits will be reduced or affected as a result of the insolvency, including loss of a lump sum option. This information will be provided for each year the plan is insolvent. BENEFIT PAYMENTS GUARANTEED BY THE PBGC The maximum benefit that the PBGC guarantees is set by law. Only vested benefits are guaranteed. Specifically, the PBGC guarantees a monthly benefit payment equal to 100 percent of the first $11 of the Plan’s monthly benefit accrual rate, plus 75 percent of the next $33 of the accrual rate, times each year of credited service. The PBGC’s maximum guarantee, therefore, is $35.75 per month times a participant’s years of credited service. Example 1: If a participant with 10 years of credited service has an accrued monthly benefit of $500, the accrual rate for purposes of determining the PBGC guarantee would be determined by dividing the monthly benefit by the participant’s years of service ($500/10), which equals $50. The guaranteed amount for a $50 monthly accrual rate is equal to the sum of $11 plus $24.75 (.75 x $33), or $35.75. Thus, the participant’s guaranteed monthly benefit is $357.50 ($35.75 x 10). Example 2: If the participant in Example 1 has an accrued monthly benefit of $200, the accrual rate for purposes of determining the guarantee would be $20 (or $200/10). The guaranteed amount for a $20 monthly accrual rate is equal to the sum of $11 plus $6.75 (.75 x $9), or $17.75. Thus, the participant’s guaranteed monthly benefit would be $177.50 ($17.75 x 10). The PBGC guarantees pension benefits payable at normal retirement age and some early retirement benefits. In calculating a person’s monthly payment, the PBGC will disregard any benefit increases that were made under the plan within 60 months before the earlier of the plan’s termination or insolvency (or benefits that were in effect for less than 60 months at the time of termination or insolvency). Similarly, the PBGC does not guarantee pre-retirement death benefits to a spouse or beneficiary (e.g., a qualified pre-retirement survivor annuity) if the participant dies after the plan terminates, benefits above the normal retirement benefit, disability benefits not in pay status, or non-pension benefits, such as health insurance, life insurance, death benefits, vacation pay, or severance pay. WHERE TO GET MORE INFORMATION For more information about this notice, you may contact Travis Umemoto, at 808-841-6169, or 1935 Hau Street, Room 300, Honolulu, HI 96819, or tumemoto@heao.us.com. For identification purposes, the official plan number is 001 and the plan sponsor’s employer identification number or “EIN” is 99-6045741. For more information about the PBGC and benefit guarantees, go to PBGC’s website, www.pbgc.gov, or call PBGC toll-free at 1-800-400-7242 (ITYITDD users may call the Federal relay service toll free at 1-800-877-8339 and ask to be connected to 1-800-400-7242).
CRITICAL OR ENDANGERED STATUS Under federal pension law a plan generally will be considered to be in “endangered” status if, at the beginning of the plan year, the funded percentage of the plan is less than 80 percent or in “critical” status if the percentage is less than 65 percent (other factors may also apply). If a pension plan enters endangered status, the trustees of the plan are required to adopt a funding improvement plan. Similarly, if a pension plan enters critical status, the.trustees of the plan are required to adopt a rehabilitation plan. Rehabilitation and funding improvement plans establish steps and benchmarks for penSion plans to improve their funding status over a speCified period of time. The Plan was not in endangered or critical status in the Plan Year. RIGHT TO REQUEST A COPY OF THE ANNUAL REPORT A pension plan is required to file with the US Department of Labor an annual report (Le., Form 5500) containing financial and other information about the plan. Copies of the annual report are available from the US Department of Labor, Employee Benefits Security Administration’s Public Disclosure Room at 200 Constitution Avenue, NW, Room N-1513, Washington, DC 20210, or by calling 202.693.8673. Or you may obtain a copy of the Plan’s annual report by making a written request to the plan administrator. SUMMARY OF RULES GOVERNING PLANS IN REORGANIZATION AND INSOLVENT PLANS Federal law has a number of special rules that apply to financially troubled multiemployer plans. Under so-called “plan reorganization rules,” a plan with adverse financial experience may need to increase required contributions and may, under certain circumstances, reduce benefits that are not eligible for the PBGC’s guarantee (generally, benefits that have been in effect for less than 60 months). If a plan is in reorganization status, it must provide notification that the plan is in reorganization status and that, if contributions are not increased, accrued benefits under the plan may be reduced or an excise tax may be imposed (or both). The law requires the plan to furnish this notification to each contributing employer and the labor organization.
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