Reciprocal Contributions to DB Plan

[mal]

I'm posting this in the multiemployer section because I'm not sure anyone else would have any idea what I'm talking about.

A Taft-Hartley defined benefit plan changed its accrual formula in 2009 to provide that a certain portion of each hourly contribution rate would be "outside" the accrual formula. In other words, for each $1 in contributions, only $.75 would actually earn the member a benefit. The extra $.25 would support the funding of the plan.

This rule was properly put into place for those working under the primary collective bargaining agreement. However, the reciprocal monies received on behalf of those employees who were working out of the area was applied on a dollar for dollar basis.

The group is now trying to figure out how to address the situation. Arguably, the plan could be read to be silent on the reciprocal money. Therefore, the easiest path would be to adopt a clarifying amendment, send notice and deal with the issue prospectively. Others would like to go back to 2009 and retroactively change the allocation formula. This seems like it would invite a host of headaches as some folks have already retired, benefit statements have been mailed and 5500's filed.

Suggestions?