Re(2): Investment Return VS 13th Check IP: 173.65.116.160 Posted on October 11, 2010 at 08:56:59 PM by Tommy Depolis
Earlier on this post I numerated the steps that must be taken before the board can announce an amount for the 13th check. The plan administrator had provided me with these steps. At the end of the post I made the comment that both investment and actuarial losses must be made up. That was my comment and it is incorrect. Only actuarial losses are a factor in determining the 13th check. Investment loss is not one of the factors.
Buck Consultants actuarial valuation to the board as of Oct 1, 2009 does state that once the market recovers, returns beyond the first 5% will be allocated to the Base Plan in the form of a make-up payment until the Base Plan has been satisfied. But again, the pension office staff has confirmed that investment losses are not a factor in determining the 13th check. I apologize for the error and any confusion. Replies: There have been no replies.
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