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Old 01-16-2009, 01:00 PM
ActuaryGuy23 ActuaryGuy23 is offline
Join Date: Mar 2007
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Default Question on EOM3

I have a point of confusion on the EOM3 exercise I was hoping someone could answer. In the DC plan, they explain that Cascadia law limits contributions to 15% of pensionable earnings in any given year. Having gone over the first few tasks and attempting now to develop some plan that helps employees who are not meeting the 70% target, I am wondering just what that 15% limit means.

Specifically, is the 15% limit on each individual or is it on the whole group? It seems to me that all these younger members are going to accrue a pension well above the 70% target rate even on the 12/17 plan. To help the executive team and especially the plant foreman who will be right on the line at retirement, I wonder if we can allow the younger employees to only do a 10/12 contribution, for example, and use that cushion to let the older employees do a 15/19 contribution, for example.

Now I understand that there is the rule about min contributions being 75% of the established max, but you get the gist. Can one member be over the Cascadia-mandated 15% of pensionable earnings or is that a company-as-a-whole rule?
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Old 01-17-2009, 09:16 PM
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Sarengo Sarengo is offline
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No one member can be over 15%, similar to the U.S. I would elaborate more but I feel you got the concept but just wanted confirmation.
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