LLNL NewsLine
Changes to Defined Benefits contributions
October 7, 2010
Employees who selected the Defined Benefits retirement plan (TCP1) could begin making contributions to that plan some time during calendar year 2011.
Director George Miller made the announcement during his quarterly all hands meeting Wednesday. Miller announced the Defined Benefits (DB) Plan remains healthy, with a funding ratio of 122 percent assets to liabilities – the result of prudent stewardship under both UC and LLNS management.
However, since 2008 the plan’s asset performance has been almost flat, due to a weak economy, a volatile stock market and declining interest rates. At the same time, liabilities, as expected, continue to increase, due to an aging workforce with increasing years of service.
“As a result, liabilities will likely exceed assets,” Miller said.
In order to maintain the funded status of the DB plan, for the long term, the Lab is requesting DOE approval to begin TCP1 contributions in 2011.
While details still need to be worked out, Miller said the contribution strategy will be based on both Laboratory and employee contributions. Contributions will start in a way that avoids the challenges now being faced by UC, sister laboratories and others across government, Miller added.
Only those employees who selected TCP1 at contract transition will be affected; all other employees are enrolled in TCP2, the Defined Contributions Plan.
Contributions to the DB Plan will not affect participants in TCP2 plans.
Changes to Defined Benefits contributions
October 7, 2010
Employees who selected the Defined Benefits retirement plan (TCP1) could begin making contributions to that plan some time during calendar year 2011.
Director George Miller made the announcement during his quarterly all hands meeting Wednesday. Miller announced the Defined Benefits (DB) Plan remains healthy, with a funding ratio of 122 percent assets to liabilities – the result of prudent stewardship under both UC and LLNS management.
However, since 2008 the plan’s asset performance has been almost flat, due to a weak economy, a volatile stock market and declining interest rates. At the same time, liabilities, as expected, continue to increase, due to an aging workforce with increasing years of service.
“As a result, liabilities will likely exceed assets,” Miller said.
In order to maintain the funded status of the DB plan, for the long term, the Lab is requesting DOE approval to begin TCP1 contributions in 2011.
While details still need to be worked out, Miller said the contribution strategy will be based on both Laboratory and employee contributions. Contributions will start in a way that avoids the challenges now being faced by UC, sister laboratories and others across government, Miller added.
Only those employees who selected TCP1 at contract transition will be affected; all other employees are enrolled in TCP2, the Defined Contributions Plan.
Contributions to the DB Plan will not affect participants in TCP2 plans.
Comments
"The proposed agreement between the University and the DOE/NNSA governing the transfer of assets and liabilities from UCRP to the LLNS Plan substantially replicates the transfer agreement for the Los Alamos National Laboratory transaction with one exception. For the LLNS transaction, UCRP will retain $75,000,000 in excess of the amount of assets required to be retained under the Contract, which will represent the initial credit to a pre-funded reserve referred to as the “Contribution Reserve Amount.” The Contribution Reserve Amount, adjusted as provided in the agreements with DOE/NNSA, will provide the DOE/NNSA with an identified funding source to apply against any future funding obligations to the LLNL Segment."
Something smells like "creative financing"...
http://www.universityofcalifornia.edu/news/article/23973
http://llnlthetruestory.blogspot.com/2010/04/ready-for-contributions.html
October 8, 2010 7:43 AM
Well, it just means that UC will still have one of the most generous pension plans on earth, instead of the absolute fantasy plan UC employees have enjoyed for many decades. A small step towards the real world. All in all, it could be much, much worse.
TCP-1 justice has finally been served. May the original 3% to 16%contributions that was talked about three years ago come true very fast.
Once the "freeze-out" occurs, you will no longer receive TCP1 service credit for your additional years of service. This will come down particularly hard on those staff members who have not yet entered their golden years of 50 and above.
Sorry to have to say this, but given the ultra-low fixed yields and the poor equity markets, it is only a matter of time until "freeze-out" occurs. The economic depression we are currently experiencing is likely to last for a decade and maybe even longer.
Be forewarned -- both LLNS and LANS will give you no hints about a "freeze-out" until right before it happens. Until that point, they will lie like crazy about their ultimate plans to resolve the pension problems.
With the employer match and vigilant investment I have been turning a very nice profit. You, on the other hand, seem to be upset that you will now have to contribute to a pension plan which allows you no options whatsoever. Enjoy your sour grapes.
Upper level management at the NNSA labs must be rolling in lots of cash by now. The TCP1 pension is just 'chump change' for these guys. They are being well compensated to whittle down the salary and benefits of their employees at the weapon labs.
... that the government knows it is completely and totally ****ed, this should disabuse you of it.
Democrats in the Senate on Thursday held a recess hearing covering a taxpayer bailout of union pensions and a plan to seize private 401(k) plans to more "fairly" distribute taxpayer-funded pensions to everyone.
I called this one a long time ago, and unfortunately, I am sad to report that they're actually trying to figure out how to do it.
If there's a pitchfork moment in this country it had better show up fairly soon, because if this report is accurate you can bet that these clowns are going to find a way to attach this in some obscure section of a 2,000+ page "must pass" bill - another one of those "you have to pass it so you can read it" deals.
I hate it when I'm right. I hate it even more when tens of millions of Americans are going to get reamed to pay for the crimes of the handful on Wall Street, and their crony enablers in Washington DC.
And by the way - you don't hold hearings on something you don't intend to do.
http://market-ticker.org/cgi-ticker/akcs-www?post=168743
The web address you posted is for a conservative media outlet, Human Events. Anytime somebody cites a conservative or liberal media outlet I ignore it. They are all simply too biased to be trusted.
Nah, I didn't think so.
I wasn't aware that once I retired from LLNS or LANS for all that matters, I could transfer my 401k in to my 403b under UC? I thought it was closed to any further additions? Anymore info on this subject would be most helpful to many I'm sure! I agree, nobody manages their funds like UC!
Any retirement fund (401k, 403b, IRA, etc.) can be rolled over into any other retirement fund you have. Tax and fee-free if you do it right. Fidelity will happily do this for you, although I found the insistence on signed paperwork a little bothersome. I moved my LANS 401k money to my UC 403b with only minor hassle. Call Fidelity.
I think you are confused. NNSA never agreed to cover UC retirees who retired from UC prior to the transition to LANL/LANS, which is what I did. NNSA has no influence or power over my UC retirement funds. Yes, I have placed all my eggs (well, those in my retirement funds, not those in other investments) in the UC basket. Based on almost 70 years of managing LANL and LLNL retirements, they deserve my trust, IMO.
LANS promised much great selection of funds for their 401k over time, but of course never delivered on the promise.
The UC 403b offers far more choices for working around the investment dangers in these current markets. Thanks for the tip, 9:28 pm!