What happened to the Pension Plan?
The Pension Plan was frozen on December 31, 2021. “Frozen” means that no new benefits will be earned under the Pension Plan for any service performed after December 31, 2021. The Pension Plan will pay benefits earned for service performed through December 31, 2021 to retired workers and their surviving spouses in accordance with the terms of the Pension Plan.
Will workers still receive the Pension Plan benefits that they have earned?
Yes. After a worker’s WELS service ends, the Pension Plan will pay the benefit earned by that worker for service performed through December 31, 2021. If the worker dies before he or she begins receiving the Pension Plan benefit, the worker’s surviving spouse (if married on the date of death) may receive surviving spouse benefits from the Pension Plan.
What are the requirements for a worker to vest for a Pension Plan benefit as of December 31, 2021?
Workers who were performing eligible service as active Pension Plan participants on December 31, 2021 became fully vested in their accrued Pension Plan benefit as of that date.
In addition, workers who were not performing eligible service as active Pension Plan participants on December 31, 2021, but had accrued a Pension Plan benefit for eligible service performed since December 31, 2016, became fully vested in their accrued Pension Plan benefit as of December 31, 2021.
Have Pension Plan benefits been “rolled over” into a worker’s Shepherd Plan account?
No.
Will retired workers and workers’ surviving spouses who are receiving Pension Plan benefits on January 1, 2022 be affected by the Pension Plan freeze?
No.
Will workers whose WELS service ended prior to January 1, 2022, but who have not yet begun to receive Pension Plan benefits by that date be affected by the Pension Plan freeze?
No.
Will a lump sum opportunity be offered now that the Pension Plan is frozen?
It has not yet been determined if a lump sum opportunity will be offered for participants to receive a lump sum payment from the Pension Plan in lieu of monthly benefit payments payable for life. If a lump sum opportunity is offered, the opportunity will be communicated in advance to eligible participants.