PENSION

YOUR PENSION AND ANNUITY FUND

The Hawaii Electricians Pension Fund (defined benefit plan) and the Hawaii Electricians Annuity Fund (defined contribution plan) were established to provide pension and retirement benefits to all employees, their families, and dependents who satisfy eligibility requirements as determined by the Trustees of the Fund. The Pension Fund and the Annuity Fund are funded by signatory employers under collective bargaining agreements with Local Union 1186 IBEW, which obligates the employer to make contributions to the plan on behalf of the participants.

Each Fund is administered by a Board of Trustees comprised of three Union Trustees who are appointed by Local Union 1186 and three Employer Trustees who are appointed by the Trustees Selection Panel.

The Trustees have the responsibility of carrying out the purpose of the Fund to provide benefits to Employees in the Plan.

One of the duties of the Trustees is to manage and invest the Trust assets in real property and securities. To assist them with managing and investing assets, the Trustees have retained Central Pacific Bank as the Funds' Custodian, Raymond James & Associates, Inc. as the Investment Advisor and Consultant, Marcus Property Management, LLC as the Real Estate Manager, Honolulu Actuarial Consultants, Inc. as the Actuary, and Yee & Kawashima, LLLP as the Legal Counsel.

YOUR FUNDS' INVESTMENTS

Asset Allocation is the most important element in investing that determines success or failure in achieving your goals and objectives. The decision to allocate assets into different classes is more important than the process of choosing the actual stocks, bonds and other securities in the portfolio. Asset allocation is a process the Trustees go through to carefully consider how best to distribute a Fund's assets among the major investment classes of assets to maximize returns and to achieve the Fund's objectives.

  • How much of a Fund's assets should be in stocks, in bonds, in real estate or held in cash?
  • What is the risk return for each class of investments?
  • What are the market and economic conditions that could affect investments?

Assisting the Trustees in determining asset allocation is the Funds’ investment monitor and advisor – Larry Goeas/Leo Goeas from Raymond James & Associates, Inc. After carefully researching, planning and discussing with the Trustees, the advisors will recommend an asset allocation to best achieve a Fund’s objectives.

After determining a Fund's Asset Allocation, the Trustees will retain investment managers to invest in particular sectors of the Fund's allocation. Investment managers are fiduciaries designated by the Trustees to manage, acquire or dispose of assets of the Trust. To select investment managers, the Trustees go through a search process that involves a universe of managers that have been screened for past performances and conduct personal interviews with the prospective managers.

YOUR FUND’S SERVICE PROVIDERS

Investment Consultant - Raymond James & Associates, Inc.

Fund Custodian - Central Pacific Bank Trust Department
Central Pacific Bank provides all the custodial services that are necessary for the safekeeping and control of the assets of the Funds. The custodial services provided are: collection services - collect monthly employer contributions, investment income and all other receipts; payment services - pay plan benefits, expenses and other disbursements; securities - maintain control and safekeeping of all assets; administrative services - prepare monthly reports of assets, employer contributions, investment income, deposits, and disbursements.

Actuary -Honolulu Actuarial Consultants, Inc. (Hawaii)
The Pension Fund is required to have an annual actuarial valuation of its plan performed by an enrolled actuary. The Trustees have retained Charles Furuike, from Honolulu Actuarial Consultants, Inc. as the Pension Fund's actuary. The enrolled actuary is a professional who is trained in advanced mathematics. He analyzes employee and financial data to determine if employer contributions and the amount of a Fund's assets are adequate to pay current and future benefits. The actuarial valuation is complex and involves calculations of credit balance/funding deficiency, minimum/maximum employer contribution requirements, employer withdrawal liabilities, actuarial accrued liabilities and actuarial gains and losses. The actuary also assists the Trustees with the compliance of ERISA and Internal Revenue Service rules and requirements.

Legal Counsel - Yee & Kawashima, LLLP


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