The notice that follows is a requirement of the federal government. It is also important that you know that your employer’s agreement to begin making contributions to the Seafarers Money Purchase Pension Plan on January 1, 2007 is the first step in the process of merging the NMU Annuity Plan into the Seafarers Money Purchase Pension Plan. Until the merger takes place, your benefits in the NMU Annuity Plan are fully protected. In addition, as a participant in the Seafarers Money Purchase Pension Plan, you will begin to accrue benefits in that plan.
December 15, 2006
The purpose of this notice is to provide you with advance written notice that, effective January 1, 2007, you will no longer acquire credit towards the NMU Annuity Plan for your days sailed. Please read it carefully.
As you know, the National Maritime Union (the “NMU”) merged into the Seafarers International Union, Atlantic, Gulf, Lakes and Inland Waters District/NMU, AFL-CIO (the “SIU”) in 2001. The collective bargaining agreement between your employer and the SIU determines the amount that the employer contributes to the benefit plans covering SIU members, as well as which plans should be provided with the employer’s contributions. In order to become a participant in the NMU Annuity Plan, your employer was required to make a contribution to the NMU Annuity Plan on your behalf. Employers will not make contributions to the NMU Annuity Plan for days sailed on or after January 1, 2007. Instead, those employers who were required to contribute to the NMU Annuity Plan as of January 1, 2007, will be required to contribute to the Seafarers Money Purchase Pension Plan (the “SIU Annuity Plan”). If you are sailing for such employers, you may qualify for participation in the SIU Annuity Plan.
Please keep in mind that this change applies to contributions for days sailed on or after January 1, 2007 only. Contributions made to the NMU Annuity Plan for days sailed prior to January 1, 2007 will not be affected by this collective bargaining agreement change. Although the value of your individual account in the NMU Annuity Plan will no longer increase as a result of employer contributions, the value may be affected by administrative costs and increases and decreases in the value of the investments in which the Trustees have invested the funds contained in the NMU Annuity Fund.
If you have any questions regarding these changes, please contact the Administrator’s Office, SIU Fund Office, 5201 Auth Way, Camp Springs, MD 20746, or by phone at (301) 899-0675.
This notice is provided by the Board of Trustees of the NMU Annuity Fund to describe a change in the rate of future benefit accruals which will take effect on January 1, 2007, and is intended to satisfy the requirements for the issuance of a 204(h) Notice under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), as well as Section 4980F Notice under the Internal Revenue Code of 1986, as amended. You should take the time to read this notice carefully and keep it with your copy of the Summary Plan Description (“SPD”).
This notice is intended to provide you with an easy-to-understand description of certain changes to the NMU Annuity Plan. While every effort has been made to make this description as complete and as accurate as possible, this notice, of course, cannot contain a full restatement of the terms and provisions of the NMU Annuity Plan. If any conflict should arise between this summary and the NMU Annuity Plan, or if any point is not discussed in this notice or is only partially discussed, the terms of the NMU Annuity Plan will govern in all cases.
The Board of Trustees (or its duly authorized designee) reserves the right, in its sole and absolute discretion, to amend, modify or terminate the NMU Annuity Plan, or any benefits provided under the NMU Annuity Plan, in whole or in part, at any time and for any reason, in accordance with the applicable amendment procedures. Only the Board of Trustees (or its duly authorized designee) has the exclusive right and power, in its sole and absolute discretion, to interpret the terms of the NMU Annuity Plan and decide all matters, legal and/or factual, arising thereunder.
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