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Posted

Assume:

1. DB plan was certified as critical in March 2010 and trustees diligently work to develop a rehabilition plan with default and alternative schedules. The default schedule costs $1.00 per hour, while the alternative schedule is $2.00.

2. This rehab plan is then presented to the bargaining parties before their primary collective bargaining agreement (PCBA) expires.

3. During bargaining over the PCBA the parties agree to provide funding of the alternative schedule. At this point the surcharges stop and the trustees implement the alternative schedule. Many adjustable benefits are saved.

4. A couple of months later a secondary collective bargaining agreement (SCBA) covering a small number of participants expires. During negotiations that group of employers agrees to provide funding of only $1.00 per hour required by the default schedule.

5. Plan participants routinely float between work covered by the PCBA and SCBA.

Questions:

Under this scenario how is the Board to proceed? The SCBA provides for the money needed under a default scenario, therefore the surcharges would not seem to apply. However, the participants who work under the SCBA are clearly earning a benefit that is not being fulled paid for by the SCBA employers. Moreover, because the work force is fluid, there is no practical way to bifurcate the plan and create a second tier of benefits for those working under the SCBA.

I need a push in the right direction. (Regulations would also be nice...)

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