Effective April 1, 2024, National Stabilization Agreement of Sheet Metal Industry (SASMI) Trustees amended the contribution policy related to Article V of the SASMI Trust. Moving forward “gross earnings” will no longer include the Employer hourly contribution to the NPF and Local Defined Benefit Pension Funds. This modification redefines the calculation of gross earnings for contribution purposes.
Formerly, gross earnings were defined as the sum of three percent of the wages due at the gross contractual hourly wage rate for the building trades journeyman classification, along with three percent of all contributions payable by the Employer to various benefit plans and programs, including Pension, Annuity, 401k, retirement plans, Vacation Plans, and Health and Welfare Benefit Plans.
The new definition of gross earnings will encompass three percent of the wages due at the gross contractual hourly wage rate for the building trades journeyperson classification, in addition to three percent of all contributions payable by the Employer to Health and Welfare Benefit Plans, Vacation Plans, Defined Contribution Pension Plans, and other retirement plans (excluding Defined Benefit Pension Funds), or the contribution rate to SASMI as defined on March 1, 2024, whichever is greater.
Contribution rates, as of March 31, 2024, will remain in effect and frozen until the recalculated amount surpasses the rate as of March 31, 2024. At that juncture, the new calculated amount will take precedence.
The Trustees of SASMI emphasize that these changes are intended to better serve participants and the industry, underscoring their commitment to adapt and foster sustainability. As such, it is imperative that Collective Bargaining Agreements (CBAs) be updated promptly to integrate the revised Trust provisions or upon renewal to accommodate the new calculation.
For clarity, examples of updated CBA language have been provided in the attached letter, illustrating the incorporation of the modified contribution requirements. These examples elucidate the expectations regarding contributions to the SASMI Trust Fund and the relevant calculations involved. Additional guidance from SASMI will be posted as soon as it becomes available.
These adjustments signify a proactive approach by SASMI to ensure the continued efficacy and relevance of its Trust provisions, fostering a robust framework to support its participants and the broader industry.
Please keep in mind that this change only affects those that have SASMI in their collective bargaining agreements. Questions regarding the change should be directed to SASMI Fund administrator Kenneth Colombo, kcolombo@smwnbf.org or phone 703-739-7250 or the SMACNA Labor Relations Department should you have any questions.
