NOTICE TO ALL PLAN PARTICIPANTS
The Board of Trustees of the Hawaii Electricians Annuity Fund, on the recommendation from the Fund’s Consultant, Attorney, and Administrator, reluctantly approved a Plan amendment that eliminated the 100% Fixed Income Elective Account option, effective October 1, 2007.
This decision by the Board of Trustees was made as a result of the much more restrictive reporting requirements that are now being imposed on any retirement plan that allows for “participant directed investments” (i.e., allow participants to determine how their retirement accounts are invested). These additional requirements were added by the Pension Protection Act of 2006 (“PPA 2006”) that was passed by Congress on August 17, 2006.
Because the Annuity Plan is a multiemployer plan (i.e., a plan to which more than one employer contributes in accordance with a collective bargaining agreement), it is impossible for the Annuity Plan to meet the current requirements that would be imposed on it if it continued to offer the Fixed Income option. Given the penalties that could be potentially imposed due to this failure and the small percentage (less than 3%) of the total Participants who have actually elected to have their monies invested in this option, the elimination of this investment option was the most prudent action available to the Trustees at this time.
If you have any questions regarding this Plan change, please feel free to call (808) 841-6169 ext. 309, or neighbor islands toll free at (800) 622-3830 ext. 309. Or, you may send a letter to the Hawaii Electricians Administrative Office, Attn: Annuity Fund at 1935 Hau Street, Room 300, Honolulu, Hawaii 96819.
FISCAL YEAR END VALUATION PERCENTAGES
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