Pension Fund Annual Investment Return History

Variable Pension Plan (VPP)

A Variable Pension Plan (VPP) is a type of pension plan where the annual accruals, both while working and in retirement, are subject to change according to the performance of the Plan’s investments..

Valuations 

Most of the accounts are invested in stocks, bonds, real estate and other investment vehicles by professional Investment Managers selected by the Trustees with the advice of a professional Investment Advisor.  These are valued once each year on December 31st (“The Valuation Date”) or more frequently, at the discretion of the Trustees.

Plan Year Investment Rate of Return Hurdle Rate 2023 VPP Adjustment
2022 -10.43% (loss) 5.00% 0.8530

1% x benefit-bearing contributions

The benefit is adjusted each year based on the Pension Plan's investment returns.

Adjustments made at end of plan year based on prior year returns (1-year lag)

Hurdle Rate is five percent (5.0%). This means that if the Fund's Investment returns are greater than 5%, your VPP benefits will increase.

5% (Benefit will not increase more than 5% in one year)

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Pension Plan FAQs

Key Terms and Definitions