Why the Amendments are Necessary

As discussed in previous communications, there are some important challenges facing the CSI Pension Plan. Today, the Plan is financially sound-the most recent valuation showed that our assets exceed our liabilities by $62 million. However, each year we’re promising more in future benefits than we’re receiving in contributions to the Plan. Currently, participants are earning benefits worth $1.24 for each $1 brought into the Plan. There are two main reasons for this:

  • We are all living longer; therefore, benefits are paid out over a longer period of time.
  • The average age of our Plan participants is increasing; therefore, there are fewer years for Plan contributions to grow before participants begin receiving payments.

    • The bottom line is that we must ensure the Plan remains viable for our future retirees. The amendments the Board of Directors approved in July are the result of numerous studies undertaken with the assistance of our outside consultant, Mercer Human Resource Consulting, and after communicating with those who will be most affected by the amendments-participants and schools.

    Full Issue: No. 166 - September 22, 2004

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