2019 VBAR Applicable Percentage Announcement
The Sheet Metal Workers’ National Pension Fund has announced that the Variable Benefit Accrual Rate (VBAR) for 2019 has been established. Under VBAR, the applicable accrual rate for a participant’s pension may vary from year to year because it is based on the fund’s investment returns for the three most recent years reported in the prior year’s actuarial valuation.
For 2019, the average of the investment return percentages for 2015, 2016, and 2017 is 7.26%. Because that percentage is more than 6.5% but less than 8.5%, the Applicable Percentage will be 0.75% for 2019.
For a comprehensive explanation and table explaining how the Applicable Percentage is calculated as well as and how Plan participants will earn normal retirement pension benefits for hours worked in 2019 under the VBAR, read the Sheet Metal Workers’ National Pension Fund’s latest communication here.
Chapters are receiving this notification prior to their members so they can answer their members’ questions. Read more...