Our company has received information that the NPF is in Endangered Status – what does that mean?
The Plan’s actuary certified that the NPF is in endangered status (also called the yellow zone). This determination was made because the actuary concluded that the NPF is not in critical status and its funded percentage is less than 80%. In addition, the Plan’s actuary certified that the NPF is not projected to be in critical status for any of the succeeding 5 Plan Years. As you know, the NPF has faced significant funding challenges over the past several years. The Fund was in critical status from 2008 until 2013; in 2014, the Plan’s actuary certified that the NPF had emerged from critical status (also called the ‘red zone’) and has entered into endangered status. Federal law requires pension plans in endangered status to adopt a funding improvement plan; the NPF’s Trustees adopted a Funding Improvement Plan and Funding Improvement Plan Schedule (‘FIP Schedule’). This Funding Improvement Plan and FIP Schedule combine contribution increases and benefit adjustments intended to improve the Plan’s funded percentage to around 75% by 2026.