INFORMATION FOR EMPLOYERS INCLUDING FASB DISCLOSURE
FASB ASU 715-80 disclosure information
Plan name and number: CWA/ITU Negotiated Pension Plan, 13-6212879, 001
Total contributions are shown in the audited financial statements on the Plan’s website (CWAITUNPP.ORG). The Plan has also informed those employers who exceed 5%. Employers should have in their records the expiration date(s) of their collective bargaining agreements(s) and the amount of their contributions to the Plan.
The most recent Form 5500 is on the Plan’s website and is publicly available through the U.S. Department of Labor.
Status: the Plan is in critical (red) status (since 2010) and a rehabilitation plan is in effect. There are no surcharges for employers who have adopted the rehabilitation plan, and there is no minimum contribution requirement other than the normal requirement to contribute as provided in the collective bargaining agreement (and to not reduce the contribution rate).
Estimate of withdrawal liability
Cheiron, actuaries to the Plan, will prepare a report showing the calculation, background data, assumptions and methodology for a charge of $1,500. Liability for a withdrawal in the current year would be based on the actuarial valuation as of the beginning of the year, which is completed in September, so current year estimates cannot be calculated until September. To request an estimate, send a check for $1,500 payable to CWA/ITU Negotiated Pension Plan.
Please also provide information about the company’s ownership and the identity of other entities in the control group with changes therein since 1998. Section 4203 of ERISA provides that a Complete Withdrawal only occurs when an employer has permanently ceased covered operations under the Plan. The definition of employer under Section 4001 of ERISA not only includes a particular contribution company, but also the other members of its control group.
Information available on the Plan’s web site
The Summary Plan Description, the latest Form 5500, audited financial statements with list of investments, certificate of actuarial valuation, information about Plan investments, correspondence from the Plan (annual funding notice and notice of critical status), the favorable IRS determination letter dated October 24, 2011 and other information can be accessed on the Plan’s web site. Form 5500’s, actuarial valuation reports and audited financial statements for previous years are available for a fee of $10 per report per year.
Answers to frequently asked questions
Rules governing agreements and contributions are contained in the Plan Document and Trust Agreement. Decreases in contribution rates or the exclusion of covered employees will not be accepted under the provisions of the Rehabilitation Plan. The Plan does not require a separate participation agreement; participation in the Plan is provided for in the collective bargaining agreements.
There is a free look provision in the Plan. Past service can be canceled.
Actual data is used in the actuarial valuation and withdrawal liability calculation - there is no sampling.
The Plan did not apply for an amortization extension or use the shortfall funding method.
There have been no mergers with other plans and no transfers of assets or liabilities of any other plan during the last 10 years.
There has been no correspondence from or notification to the PBGC.
There are no benefits increases being contemplated.