President John T. Niccollai
AN IMPORTANT MESSAGE FROM PRESIDENT JOHN T. NICCOLLAI 7-21-2020
TUESDAY, JULY 21, 2020
MODIFICATION – NATIONAL PENSION FUND
President Niccollai reported today that Local 464A, apart from maintaining its own Pension Fund for the majority of the membership, historically participates in the National Pension Fund for Full-Time Employees of Finast in Long Island and ACME in New York and New Jersey. The Local Union does not administrate this Plan; it is administered by a Board of Union and Company Trustees.
In order to assure the continued payment of Pension Benefits for the participants of the National Pension Fund into the future, an Agreement was negotiated involving Kroger, AHOLD (Finast) and Albertsons (ACME). This Agreement would see the infusion of $1.84 billion of funds allowing a withdrawal from the Plan of the three Companies.
The National Pension Fund has been negatively affected by the tech bubble, the stock market crash of 2007-2008 and now the COVID Pandemic.
In order to protect you, the participant, and allow the Plan to be well-funded for many years to come, the parties tentatively accepted the $1.84 billion Employer contribution. A new future service plan would be established similar to the current plan requiring that returns from investments may be lower to maintain benefits. A bridge to transition members to the new plan with minimal disruption, maintaining current contributions, has been established.
We view what has occurred here as taking a potential disaster and turning it into a positive for all those involved. Local 464A Full-Time Participants of the National Fund (Finast Long Island and ACME New York & New Jersey) will ultimately vote on this proposal within the next few months. The Union will prepare a package for distribution to the affected full-time members prior to the vote.