Publication of New Jersey Carpenters Funds
April 2015
Anthem Cyber Attack May Impact Some NJ Carpenters
Active or retired
members of the NJ
Carpenters Funds who
received health care
services in areas of the
country serviced by
Anthem, Inc. during the
past 10 years may have
been impacted by the
recent cyber attack upon
the insurer’s IT system.
On January 29th,
Anthem discovered that cyber attackers executed a sophisticated attack to
gain unauthorized access to Anthem’s information technology system and
obtained personal information relating to consumers who were or are currently covered by Anthem or other independent Blue Cross and Blue Shield
plans that work with Anthem. The attack is thought to have occurred over
the course of several weeks beginning in early December 2014.
Anthem and Horizon Blue Cross/Blue Shield of NJ (which provides
coverage for the NJ Carpenters Funds) are separate, independently operated
companies. However, they are both part of a nationwide BC/BS network
that enables members to receive the same health insurance benefits for any
medical care they may need while living or traveling within the coverage
areas of any other BC/BS company. These medical care services are available through the BlueCard program.
To date, Horizon BC/BS NJ has detected nothing which indicates data
theft from its New Jersey systems. The company continuously monitors
for threats to its systems and sensitive information and regularly revises
and upgrades its security program.
If a participating member received care in any of the following
Anthem locations within the past decade, the member’s claims experience may have been retained in Anthem’s database and compromised
by the cyber attack: California, Colorado, Connecticut, Georgia,
Indiana, Kentucky, Maine, Missouri, Nevada, New Hampshire,
New York, Ohio, Virginia and Wisconsin.
According to Anthem, Inc., the personal information accessed in the
attack may have included names, dates of birth, Social Security numbers,
health care ID numbers, home addresses, email addresses, employment
information, including income data. Anthem says it has no reason to
believe that credit card or banking information was compromised. Nor is
there evidence at this time that medical information such as claims, test
results, or diagnostic codes, was targeted or obtained.
Anthem is individually notifying all potentially impacted carpenters,
for whom it has a valid mailing address, with specific information on how
to enroll in AllClear ID credit monitoring and identity protection services
that it will provide free of charge for two years. The identity protection
services include:
• AllClear SECURE. This service is available with no enrollment
required. If a problem arises, call 1-877-263-7995 and an investigator
will do the work to recover financial losses, restore your credit and
make sure your identity is returned to its proper condition.
Continued on page 7
Trustees Authorize Modest Increase in Cobra Rates
Due to the continuing rise in health care costs
and the impact of the Affordable Care Act (ACA)
mandates, the trustees of the NJ Carpenters Health
Fund have authorized a modest increase in COBRA
rates. As members are aware, COBRA provides
continued health care coverage at group rates to
eligible employees and family members who have
lost coverage due to certain qualifying events or
reasons “other than gross misconduct.” The cost
of this continuation coverage is on a self-pay basis,
meaning you must pay the cost each month to be
covered for that month.
As of the Benefit Plan Year that began
April 1, 2015, COBRA rates for active members purchasing Level #2 coverage is $12,100
a year ($1,008 a month) and $8,100 a year
($675 a month) for Level #1 coverage. Both
figures represent a $100 a year increase over
the previous Plan Year rates.
In addition, self-pay rates for early
retirees who qualify for the Retired Health
Benefit Plan (at least 25 years of coverage
under the Health Fund) will increase from
$10,500 to $11,500 a year ($958 a month) for
Level #2 coverage and will remain the same
at $9,000 ($750 a month) for Level #1 coverage. COBRA rates will remain the same for
early retirees with less than 25 years of coverage with the fund: $16,000 a year ($1,333 a
month) for Level #2 coverage and $10,500
($875 a month) for Level #1 coverage.
A full explanation of the COBRA program –
including member/family
eligibility, qualifying
standards,
benefits and the
application process –
can be found on pages
26-30 of the NJ Carpenters
Health Plan Summary Plan
Description (SPD), and pages
45-47 of the NJ Carpenters
Retired Health Plan SPD. For more information
on the NJ Carpenters COBRA program, contact
the Funds Office at 1-800-624-3096.
2
New Jersey
APRIL 2015
CARPENTERS Benefits Watch
New Jersey CARPENTERS Funds
EMPLOYER TRUSTEES:
EMPLOYEE TRUSTEES:
Robert Epifano, Co-Chairman
Alfonso Daloisio, Jr., Robert Gariepy, Glenn Garlatti, Mark Hall,
Eric Jensen, Brad Jorrey, Jack Kocsis, Brian McGlone,
Robert Partyka, Jr., Robert Polisano, Darlene Regina
Michael Capelli, Co-Chairman
John Ballantyne, William Buttino, Andrew Pacifico, Michael DeRosa,
Dennis Garbowski, William Michalowski, Leonard Pennucci,
Frank Spencer, William Sproule, Robert Tarby, Anthony Verrelli
Fraud Prevention Tips
Anthem, Inc. is recommending that any members
who may have had their personal information
accessed during the recent cyber-attack on its IT
systems take certain steps to guard against identity
theft or fraud.
Potentially impacted members should remain vigilant for incidents of
fraud and identity theft by reviewing account statements and monitoring
free credit reports. In addition, they can report suspected incidents of identity
theft to local law enforcement, the Federal Trade Commission, or to the
state attorney general.
To learn more, go to the FTC’s Web site at www.consumer.gov/idtheft,
or call the FTC at (877) IDTHEFT (438-4338) or write to the Federal
Trade Commission, Consumer Response Center, 600 Pennsylvania Ave.,
NW, Washington, DC 20580.
Members should also be aware of scam email campaigns targeting
current and former Anthem members. These scams, designed to capture
personal information (known as “phishing”), are designed to appear as if
they are from Anthem and the emails include a “click here” link for credit
monitoring. These emails are NOT from Anthem.
• DO NOT reply to the email or reach out to the senders in any way.
• DO NOT supply any information on the website that may open if
you have clicked on a link in the email.
• DO NOT open any attachments that arrive with the email.
Anthem is not calling members regarding the cyber-attack and is not
asking for credit card information or Social Security numbers over the
phone. For more guidance on recognizing scam emails, you can visit the
FTC Website for their article on “phishing.”
Credit Bureau Information
Equifax
PO BOX 740241
Atlanta, GA 30374-0241
1-800-685-1111
equifax.com
Experian
PO BOX 9532
Allen, TX 75031
1-888-397-3742
experian.com
TransUnion
PO BOX 6790
Fullerton, CA 92834-6790
1-800-916-8800
transunion.com
Time to Submit Annual Working Spouse and
Dependent Children Eligibility Forms
As part of the NJ Carpenters Health Plan’s Working Spouse Program,
all eligible spouses are required to enroll in employer-sponsored benefit
plans as their primary coverage whenever available. Implemented in April
2010, the program is one of several steps taken by the trustees as a means
of restoring and ensuring the Health Fund’s continued financial strength.
By now, all spouses should have received the verification form
sent annually to confirm their employment status, which they must
complete and return to the Funds Office before any health care claims
submitted on their behalf will be considered for payment. Claims will
be held pending until the form is received.
Exemptions: Spouses are not subject to the requirements of the program
under the following conditions:
• Spouses who are not employed.
• Spouses who are self-employed.
• Spouses who work part-time (less than 30 hours a week).
• Spouses whose employer does not offer health care coverage.
• Spouses whose employer requires employees to pay 100% of their
health care premium with no employer contributions.
Spouses who do not comply by refusing to enroll in their employersponsored health plan, or those who fail to return the form, will no longer
be eligible for coverage under the Health Fund. Also, working spouses who
are eligible for health coverage through their employer but have missed the
open enrollment election period, must enroll at the next available opportunity or their carpenters’ coverage will be terminated.
“We want to emphasize that all spouses eligible for primary coverage
under their employer’s plan will continue to receive secondary coverage
through the Carpenters’ Plan,” said Health Fund Administrator George R.
Laufenberg. “Also, working spouses are not required to enroll their
dependents in their employer’s plan. Although some families may find it
beneficial to purchase coverage for dependents under an employer’s plan,
it is totally a voluntary choice.”
DEPENDENT COVERAGE UP TO AGE 26
In compliance with the federal Affordable Care Act, the NJ Carpenters
Health Plan continues to provide coverage for certain dependents of eligible
members until age 26. This regulation does not apply to members in our
New Jersey Carpenters Retired Health Plan.
Under terms of the ACA mandate, benefit plans that offer dependent
coverage must offer coverage to an eligible member’s adult children until
age 26, even those who no longer live with their parents, those who are not
listed as a dependent on their parent’s tax return, and those who are no
longer students. It applies to both married and unmarried children, although
a dependent’s own spouse and children do not qualify.
Also, as of 2014, all dependents up to age 26 are able to remain on their
parent’s plan, even if they have an offer of coverage through an employer.
If your dependent child is already enrolled under this provision,
you do not have to re-enroll him or her.
If you have any questions regarding either the Working Spouse program or expanded dependent coverage, please contact the Fund’s Office at
1-800-624-3096 at your earliest convenience.
New Jersey
CARPENTERS Benefits Watch
APRIL 2015
3
Multiemployer Pension Reform Act Approved
Will Strengthen Union Benefit Plans
President Obama has signed legislation designed to boost the financial
security of multi-employer pension plans by enabling plan trustees to better
protect the retirement assets of millions of American workers. Known as
the Multiemployer Pension Reform Act of 2014 (MPRA), the legislation
was included in a $1.1 Trillion U.S. government spending bill signed into
law on December 16th.
Some 10 million workers currently have retirement savings in multiemployer pension plans that hold nearly $500 Billion in assets and play
a significant role in generating broader economic activity. For decades,
these innovative retirement plans have allowed skilled trades’ workers
to move from job to job and provided the portability that enables them
to contribute to a pension.
But, tight credit markets and an overly slow recovery from the Great
Recession have wrecked havoc with the employers who contribute to multiemployer defined benefit plans and to these pension programs. Also,
conflicting tax policies made it harder for employers to maintain the
solvency of these plans and outdated regulations prevented employers
and employees from taking common sense measures to secure them.
Today, because of the recession and misguided rules, approximately
5% of all 1,400 multiemployer pension funds are considered to be in dire
financial condition, including some of the oldest and largest plans, and
could face insolvency in the next 10 to 20 years. If left unchecked, the failure of these plans could bankrupt the Pension Benefit Guaranty Corp.
(PBGC), which serves as the federal backstop charged with protecting these
workers’ pensions. That, in turn, would place all the plans at risk – even
the current healthy ones – and endanger the savings of millions of retirees.
“Although it will have no immediate or direct impact on our plan,
which has achieved financially secure status, the bipartisan MPRA will
provide the critical flexibility needed to keep less stable pension plans
from going under and causing retired workers to lose their savings,” said
George R. Laufenberg, administrator of the NJ Carpenters Funds.
“The new law includes reforms to protect taxpayers, and it provides
trustees with new tools to adjust and save troubled plans. It also
includes important safeguards to give participants in the plans a voice
and to protect the most vulnerable retirees.”
The reform law allows trustees of plans that are in danger of failing,
to apply for a temporary or permanent reduction of pension benefits as a
last resort to avoid insolvency and the even more severe benefit cuts that
would result if a plan defaults. Only pension funds in a newly designated
“critical and declining status” would be given this new tool, and plan
trustees must submit an application to the U.S. Department of Treasury
showing that pension benefit reductions are necessary to keep the plan
from running out of money.
Plan participants must be notified of any proposal to reduce benefits
and have the opportunity to comment on the proposal. If the application
is approved, plan participants and beneficiaries will then have the right to
vote on the proposed benefit changes before they occur. If the majority of
participants vote against benefit reductions, they cannot occur. However,
the trustees could then prepare a new proposal to change benefits and start
the process again.
Also, benefits cannot be reduced for retirees and beneficiaries who
are 80 or older. Retirees between ages 75 and 79 will face smaller benefit cuts than retirees under age 75. Plan benefits based on disability
cannot be reduced.
In order to financially buttress the struggling PBGC, the new law
authorizes that PBGC premiums for all multiemployer plans be increased
from $13 to $26 per participant for the plan year beginning January 1,
2015 and that premiums be tied to cost of living adjustments in future
years. The PBGC is also granted additional authority and flexibility to
facilitate mergers between multiemployer plans, if the agency determines
a merger to be in the best interests of the participants and beneficiaries.
The newly designated “critical and declining status” is defined as a
plan: a) projected to be insolvent (unable to pay benefits when due) within
15 years, or b) projected to become insolvent within 20 years and with a
more than 2:1 ratio of retirees and inactive vested to active participants.
“The MPRA is one of the most significant pieces of multiemployer
plan legislation enacted in recent memory,” Laufenberg concludes.
“While there are questions left unanswered by the legislation that still
must be resolved, it will have a beneficial impact on the multiemployer
sector as a whole, including both troubled plans and those on firmer
financial footing, like our carpenters’ plans.
“Not only does it provide added protections for participants and beneficiaries, it also relieves some of the more onerous burdens placed on
employers and trustees and helps ensure their continued participation in
these vital benefit programs. We will continue to work with all relevant
parties to take full advantage of these reforms.”
Positive 7 Percent Return for Annuity Fund in 2014
The NJ Carpenters Annuity Fund achieved its third consecutive “above
average” performance in 2014, compiling a more than respectable 7%
return on investments for our members savings and retirement portfolios.
The gratifying returns bolster the investment success the Annuity Fund
has experienced over the past three years, which has more than restored
the losses suffered in the market collapse of 2008.
Administrative Manager George R. Laufenberg said the strong return
places the Fund firmly within the top 30% of union benefit funds nationwide in terms of profitability and operational excellence. “The returns
are all the more impressive given the stock market’s somewhat lackluster
performance during the final quarter of 2014,” Laufenberg noted.
“The Fund’s trustees and money managers are to be commended
for their attention to detail and diligence in protecting our members’
assets and placing investments where they will do the most good. It
also reinforces the wisdom of the trustees’ decision to assume direct
oversight of the Fund in order to neutralize the potential for significant losses that some of our members suffered due to the sudden stock
market crash.
“While we can never provide an absolute guarantee against losses,
the policy enacted by the trustees as of January 1, 2010 – wherein all
participants receive a proportionate share of the investment income of
the Fund as a whole – does erect barriers against the type of individual
setbacks experienced as a result of the ‘Great Recession.’
“Members can be assured that if they utilize the proceeds of their
Annuity Fund in a responsible and appropriate manner, it will serve as a
reliable source of future financial security for them and their families.”
4
New Jersey
APRIL 2015
CARPENTERS Benefits Watch
Annual Funding Notice for
Introduction
This notice includes important information about the funding status of
your pension plan (“the Plan”) and general information about the benefit
payments guaranteed by the Pension Benefit Guaranty Corporation
(“PBGC”), a federal insurance agency. All traditional pension plans
(called “defined benefit pension plans”) must provide this notice every
year regardless of their funding status. This notice does not mean that the
Plan is terminating. It is provided for informational purposes and you are
not required to respond in any way. This notice is for the plan year beginning January 1, 2014 and ending December 31, 2014 (“Plan Year”).
How Well Funded Is Your Plan
Under federal law, the plan must report how well it is funded by using
a measure called the “funded percentage.” This percentage is obtained by
dividing the Plan’s assets by its liabilities on the Valuation Date for the
plan year. In general, the higher the percentage, the better funded the
plan. Your Plan’s funded percentage for the Plan Year and each of the two
preceding plan years is set forth in the chart below, along with a statement
of the value of the Plan’s assets and liabilities for the same period.
Funded Percentage
2014
2013
2012
Valuation
Date
1/1/2014
1/1/2013
1/1/2012
Funded
Percentage
79.4%
72.1%
69.0%
Value of
Assets
$1,139,691,887
$1,015,623,865
$951,587,626
Value of
Liabilities
$1,437,159,500
$1,407,976,379
$1,378,526,071
Date
12/31/2014
12/31/2013
12/31/2012
Fair Market
Value of
Assets
$1,171,057,506
$1,139,691,887
$1,015,623,865
Year-End Fair Market Value of Assets
The asset values in the chart above are measured as of the Valuation Date
for the plan year and are actuarial values. They are the same as market values.
The fair market value of the Plan’s assets as of the last day of the Plan Year
and each of the two preceding plan years is shown in the following table:
Critical or Endangered Status
Under federal pension law a plan generally will be considered to be
in “endangered” status if, at the beginning of the plan year, the funded
percentage of the plan is less than 80 percent or in “critical” status if the
percentage is less than 65 percent (other factors may also apply). If a
pension plan enters endangered status, the trustees of the plan are required
to adopt a funding improvement plan. Similarly, if a pension plan enters
critical status, the trustees of the plan are required to adopt a rehabilitation
plan. Rehabilitation and funding improvement plans establish steps and
benchmarks for pension plans to improve their funding status over a
specified period of time.
The Plan was in endangered status in the Plan Year ending December
31, 2014 because the Plan had a funded percentage of less than 80%. In an
effort to improve the Plan’s funding situation, the trustees reaffirmed the
existing funding improvement plan on September 11, 2014 that maintains
the employer contribution rate at 14% of the pay rate, effective June 1,
2010, reduces the benefit accrual rate to $1.00 for each $100 of employer
contributions (at 10% of the pay rate) effective January 1, 2011, and eliminates the supplemental pension for retirements after January 1, 2011. You
may obtain a copy of the Plan’s funding improvement or rehabilitation plan
and the actuarial and financial data that demonstrate any action taken by the
plan toward fiscal improvement by contacting the plan administrator.
If the Plan is in endangered or critical status for the plan year ending
December 31, 2015, separate notification of that status has or will be provided.
Participant Information
The total number of participants in the Plan as of the Plan’s valuation
date was 19,221. Of this number, 5,825 were active participants, 7,488
were retired or separated from service and receiving benefits, and 5,908
were retired or separated from service and entitled to future benefits.
Funding & Investment Policies
Every pension plan must have a procedure for establishing a funding
policy to carry out plan objectives. A funding policy relates to the level
of assets needed to pay for benefits promised under the plan currently
and over the years. The funding policy of the Plan is to meet the requirements of federal pension plan law by having sufficient assets to pay for
benefits accrued under the Plan.
Once money is contributed to the Plan, the money is invested by plan
officials called fiduciaries, who make specific investments in accordance
with the Plan’s investment policy. Generally speaking, an investment policy
is a written statement that provides the fiduciaries who are responsible
for plan investments with guidelines or general instructions concerning
investment management decisions. The investment policy of the Plan is to,
generally, to invest the assets of the Plan among several asset classes and
within permitted allocation ranges. The long-term goal of the Plan is to:
1) generate a net of fee return in excess of the Plan’s actuarial assumed rate
of return within acceptable levels of volatility, 2) maintain sufficient liquidity
to fund benefit payments, and 3) preserve the principal value of the Plan.
Under the Plan’s investment policy, the Plan’s assets were allocated
among the following categories of investments, as of the end of the Plan
Year. These allocations are percentages of total assets:
Asset Allocations
Percentage
1. Cash (Interest bearing and non-interest bearing)
1.82%
2. U.S. Government securities
2.76%
3. Corporate debt instruments (other than employer securities):
Preferred
All other
9.27%
4. Corporate stocks (other than employer securities):
Preferred
0.02%
Common
31.96%
5. Partnership/joint venture interests
11.88%
6. Real estate (other than employer real property)
18.57%
7. Loans (other than to participants)
8. Participant loans
9. Value of interest in common/collective trusts
14,00%
10. Value of interest in pooled separate accounts
3.59%
11. Value of interest in master trust investment accounts
12. Value of interest in 103-12 investment entities
13. Value of interest in registered investment companies (e.g., mutual funds)
14. Value of funds held in insurance co. general account (unallocated contracts)
15. Employer-related investments:
Employer Securities
Employer real property
16. Buildings and other property used in plan operation
0.94%
17. Other
5.19%
New Jersey
CARPENTERS Benefits Watch
APRIL 2015
5
New Jersey Carpenters Pension Plan
For information about the Plan’s investment in any of the types of
investments as described in the Asset Allocations chart – common/collective
trusts, pooled separate accounts, master trust investment accounts, or
103-12 investment entities – contact the Plan administrator, George R.
Laufenberg, New Jersey Carpenters Funds, Raritan Plaza II, P.O. Box 7818,
Edison, NJ 08818-7818. (telephone (732) 417-3900).
Right to Request a Copy of the Annual Report
A pension plan is required to file with the US Department of
Labor an annual report called the Form 5500 that contains financial
and other information about the plan. Copies of the annual report
are available from the US Department of Labor, Employee Benefits
Security Administration’s Public Disclosure Room at 200 Constitution
Avenue, NW, Room N-1513, Washington, DC 20210, or by calling
202.693.8673. For 2009 and subsequent plan years, you may obtain an
electronic copy of the plan’s annual report by going to www.efast.dol.gov
and using the Form 5500 search function. Or you may obtain a copy of
the Plan’s annual report by making a written request to the plan administrator. Individual information, such as the amount of your accrued benefit
under the plan, is not contained in the annual report. If you are seeking
information regarding your benefits under the plan, contact the plan
administrator identified below under “Where To Get More Information.”
Summary of Rules Governing Plans
in Reorganization and Insolvent Plans
Federal law has a number of special rules that apply to financially troubled
multiemployer plans. The plan administrator is required by law to include a
summary of these rules in the annual funding notice. Under so-called “plan
reorganization rules,” a plan with adverse financial experience may need to
increase required contributions and may, under certain circumstances, reduce
benefits that are not eligible for the PBGC’s guarantee (generally, benefits that
have been in effect for less than 60 months). If a plan is in reorganization status,
it must provide notification that the plan is in reorganization status and that, if
contributions are not increased, accrued benefits under the plan may be reduced
or an excise tax may be imposed (or both). The plan is required to furnish this
notification to each contributing employer and the labor organization.
Despite these special plan reorganization rules, a plan in reorganization
could become insolvent. A plan is insolvent for a plan year if its available
financial resources are not sufficient to pay benefits when due for that plan
year. An insolvent plan must reduce benefit payments to the highest level
that can be paid from the plan’s available resources. If such resources are not
enough to pay benefits at the level specified by law (see Benefit Payments
Guaranteed by the PBGC, below), the plan must apply to the PBGC for
financial assistance. The PBGC will loan the plan the amount necessary
to pay benefits at the guaranteed level. Reduced benefits may be restored
if the plan’s financial condition improves.
A plan that becomes insolvent must provide prompt notice of its status
to participants and beneficiaries, contributing employers, labor unions
representing participants, and PBGC. In addition, participants and beneficiaries also must receive information regarding whether, and how, their
benefits will be reduced or affected, including loss of a lump sum option.
This information will be provided for each year the plan is insolvent.
Benefit Payments Guaranteed by the PBGC
The maximum benefit that the PBGC guarantees is set by law. Only
benefits that you have earned a right to receive and that can not be forfeited
(called vested benefits) are guaranteed. Specifically, the PBGC guarantees a
monthly benefit payment equal to 100 percent of the first $11 of the Plan’s
monthly benefit accrual rate, plus 75 percent of the next $33 of the accrual
rate, times each year of credited service. The PBGC’s maximum guarantee,
therefore, is $35.75 per month times a participant’s years of credited service.
Example 1: If a participant with 10 years of credited service has an
accrued monthly benefit of $500, the accrual rate for purposes of determining
the PBGC guarantee would be determined by dividing the monthly benefit
by the participant’s years of service ($500/10), which equals $50. The
guaranteed amount for a $50 monthly accrual rate is equal to the sum of
$11 plus $24.75 (.75 x $33), or $35.75. Thus, the participant’s guaranteed
monthly benefit is $357.50 ($35.75 x 10).
Example 2: If the participant in Example 1 has an accrued monthly benefit
of $200, the accrual rate for purposes of determining the guarantee would be
$20 (or $200/10). The guaranteed amount for a $20 monthly accrual rate is
equal to the sum of $11 plus $6.75 (.75 x $9), or $17.75. Thus, the participant’s guaranteed monthly benefit would be $177.50 ($17.75 x 10).
The PBGC guarantees pension benefits payable at normal retirement age
and some early retirement benefits. In calculating a person’s monthly payment, the PBGC will disregard any benefit increases that were made under
the plan within 60 months before the earlier of the plan’s termination or
insolvency (or benefits that were in effect for less than 60 months at the
time of termination or insolvency). Similarly, the PBGC does not guarantee
pre-retirement death benefits to a spouse or beneficiary (e.g., a qualified
pre-retirement survivor annuity) if the participant dies after the plan terminates, benefits above the normal retirement benefit, disability benefits
not in pay status, or non-pension benefits, such as health insurance, life
insurance, death benefits, vacation pay, or severance pay.
Where to Get More Information
For more information about this notice, you may contact the Plan
administrator, George R. Laufenberg, New Jersey Carpenters Funds,
Raritan Plaza II, P.O. Box 7818, Edison, NJ 08818-7818. (telephone
(732) 417-3900). For identification purposes, the official plan number is
001 and the plan sponsor’s name and employer identification number or
“EIN” is Board of Trustees of the New Jersey Carpenters Pension Plan,
EIN 22-6174423. For more information about the PBGC, go to PBGC's
website, www.pbgc.gov.
Notice of Endangered Status
for New Jersey Carpenters Pension Plan
This is to inform you that on March 31, 2015 the plan actuary certified
to the U.S. Department of the Treasury, and also the Board of Trustees, that
the Plan is in endangered status for the Plan Year beginning January 1, 2015.
Federal law requires that you receive this notice.
Endangered Status
The Plan is considered to be in endangered status because it has funding
deficiencies. More specifically, the plan's actuary determined that the plan's
funded percentage of 79.4% as of January 1, 2015 is less than 80%.
Funding Improvement Plan
Federal law requires pension plans in endangered status to adopt a funding
improvement plan (FIP) aimed at restoring the financial health of the plan.
While a formal FIP will be adopted by the Plan Trustees later this year, the FIP
plan adopted on September 11, 2014 is intended to satisfy this requirement.
Where to Get More Information
For more information about this notice, you may contact the Plan administrator, George R. Laufenberg, New Jersey Carpenters Funds, Raritan Plaza
II, P.O. Box 7818, Edison NJ 08818-7818. (Telephone (732) 417-3900).
6
New Jersey
APRIL 2015
CARPENTERS Benefits Watch
Plans for New Training Facility and Parking Deck
Take Shape at Raritan Center
If all approvals are granted, construction could begin later this summer
on a new Northeast Regional Council of Carpenters’ Training Center
and adjacent parking facility to be erected at the NJ Carpenters Fund’s
existing site in Raritan Center, Edison. The new, two-story facility will
replace the council’s Kenilworth Training Center. The Hammonton
Training Center is expected to remain operational. The new Raritan
Center facility will contain nearly 100,000 square feet of training and
classroom space in addition to a 300 seat auditorium, a large conference
room and a cafeteria. It is designed to accommodate up to 100 apprentices
and instructors in a state-of-the-art setting with the most updated equipment available. An adjacent four-level parking deck will have enough
spaces to house some 275 vehicles. EPIC Management will serve as
construction manager for the project and Di Cara/Rubino Architects of
Wayne is the design specialist.
PROPOSED BUILDING FOR :
NEW JERSEY CARPENTER'S FUND TRAINING CENTER
WOODBRIDGE AVENUE & FIELDCREST AVENUE
EDISON, NJ 08837
03.11.2015
30 galesi drive
wayne, nj 07470
tel 973.256.0202 | fax 973.256.0227
Voluntary Health Coverage Programs Available
The voluntary dental, vision and hearing aid programs offered to our
members over the past five years are being continued for the Plan Year
that began April 1, 2015.
Please remember that these are voluntary programs, in which you may
or may not wish to participate. The programs are not administered by the
Funds, nor are we responsible for the services they provide. All administration and payments for these benefits, including the enrollment process,
are transacted directly between the member and the carrier.
It is your responsibility to make sure you understand the guidelines of
any program, prior to your enrollment. These programs have been reviewed
by the Health Fund, and we believe they offer substantial value to members
who wish to enroll. Please evaluate them carefully to ensure they provide
coverage that is appropriate for your family.
Members are also advised that many former Carpenter dental providers
have agreed to accept our previous fee schedule. If you are using one of
these former in-network dental providers, please confirm their willingness to accept our previous fee schedule, prior to beginning your treatment. Remember, members are responsible for the entire cost of this
voluntary coverage. However, you may be reimbursed for premiums
NOTICE
and/or payments through your Healthcare Reimbursement Account (HRA),
if it is sufficiently funded. Listed below is contact information for these
voluntary benefit programs:
DENTAL PROGRAMS
Cigna Dental – Contact – John Blasch at 917-439-9173 (cell)
Delta Dental – Contact – Customer service at 781-966-3700
Website – www.njcfdelta.com
Smile Solutions – Contact – Jeff Motto at 800-982-5529
VISION
Davis Vision – Contact – Toll Free Customer Service at 888-444-5616
HEARING AID BENEFIT
Epic Hearing – Contact – Toll Free Customer Service at 866-956-5400
When inquiring about any of these programs, please indicate that you
are a member of the NJ Carpenters Health Fund. Also, please be aware
that the Delta Dental Program has a limited enrollment period, beginning
March 1st and ending June 1st.
Interest on New Annuity Loans Set at 4.25%
Effective April 1, 2015, the interest rate for Annuity loans will be Prime plus 1%. Currently, the Prime Rate is
3.25%. As a result, all new Annuity loans will be calculated at 4.25%. The rate will be constantly monitored and
is subject to change after any of the eight Federal Reserve FOMC meeting dates held annually.
New Jersey
CARPENTERS Benefits Watch
APRIL 2015
7
Agreement with HRS Seeks to Identify
Third Party Reimbursement Claims
The Board of Trustees has entered into an agreement with Health
Recovery Solutions (HRS) to uncover and detect previously unidentified
third-party claims that may have recovery potential for the NJ Carpenters
Health Fund and/or its members.
HRS focuses its recovery efforts on high-cost claims in specialized
areas, including medical expenses associated with defective medical
devices, dangerous/addictive prescription drugs and harmful toxic
substances. The firm’s healthcare monitoring technology is designed
to augment a Fund’s or payer’s existing recovery efforts. HRS will
identify and monitor potential third-party claims and, if the potential for
recovery exists, will assign a claim to its case management specialists for
investigation in order to pursue any subrogation or recovery opportunities.
HRS is currently compiling a list of claims that they believe may have
third-party recovery potential. If a member’s claim appears on that list, he
or she may receive a letter from the Health Fund inquiring as to whether
they would be willing to speak with HRS representatives regarding any
actions that might be taken to seek reimbursement. Their participation
or not in such action will be strictly voluntary.
If the member does agree to participate in any recovery efforts, the
Health Fund will notify HRS, and a representative of the firm will then
directly contact the member. Again, HRS will contact our member only
if the member agrees to it.
Since HRS is compensated only for successful collections work on a
contingency fee basis, the agreement will not incur any additional costs to
the Health Fund. However, it does hold the potential for reducing overall
healthcare costs and utilization rates for the Fund.
Know Your Health Care Coverage
Before Receiving Medical Services
It’s very important that members understand what benefits they are eligible and covered for under the NJ Carpenters Health Plan. Oftentimes,
members will receive medical services without first determining whether
they are covered by our health plan. If a service or procedure is excluded
from coverage, the member may be responsible for its entire cost.
If you are uncertain about coverage, please refer to your Summary
Plan Description (SPD) prior to arranging for health care services to
ensure that they are covered by your plan. If for some reason you do not
have or have misplaced your SPD, they are available on-line at njcf.org,
or you can receive one through the mail by calling the Funds Office at
1-800-624-3096.
Some things to keep in mind regarding the NJ Carpenters Health Plan
and your coverage:
• Participating members must make sure their health care provider is
in our network. If you choose a non-participating, or out-of-network
provider for your health care needs, the Health Fund will reimburse
you only up to the level of our established fee schedule (120% of the
Medicare RBRVS fee schedule). Members are responsible for the
difference between our established fee schedule payment and the
actual charges billed by an out-of-network provider.
• The Carpenters Health Fund does not cover the cost of claims
submitted by members who have Medicare as their primary payer,
if Medicare itself does not cover a specific service, procedure or
supply. Also, members who have Medicare as their primary payer
must use a Medicare participating provider in order to receive any
reiumbursement from the Health Fund.
• Eligible benefits under the NJ Carpenters Health Plan are determined
and must be approved by the NJ Carpenters Health Fund – not by
Horizon Blue Cross/Blue Shield. The same applies to a member’s
own eligibility for benefits. In some cases, Blue Cross may declare
a member eligible for a certain procedure or service that is a part of
their coverage package but is not part of the Carpenters Fund coverage. If a member undergoes a procedure that is not authorized by our
Carpenters Plan, or one for which they are not eligible, the member
will be responsible for the entire cost.
Anthem Cyber Attack
Continued from page 1
• AllClear PRO. This service offers additional layers of protection
including credit monitoring and a $1 Million identity theft insurance
policy. To use the PRO service you must provide your personal information to AllClear ID.
Anthem has established a dedicated website – AnthemFacts.com –
where impacted members can enroll in the identity protection services and
access additional information. Anthem has also established a dedicated
toll-free number to call with questions related to the cyber attack incident.
The number is 877-263-7995.
We have been advised by our representative at Horizon Blue Cross
Blue Shield of NJ that all of our members, whether they used health care
services in other areas of the country or not, are entitled to receive the two
years of credit monitoring and identity protection services free of charge.
You do not have to have been impacted by the cyber attack, nor do you
have to wait for a letter from Anthem. Simply log-on to the dedicated
website - AnthemFacts.com - or call 877-263-7995.
For a listing of potentially impacted Anthem-affiliated health plans
and other BC/BS companies for which Anthem provides services under
the BlueCard program, visit AnthemFacts.com.
New Jersey CARPENTERS Benefits Watch
Raritan Plaza II, P.O. Box 7818
Edison, New Jersey 08818-7818
RETURN SERVICE REQUESTED
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Hackensack, NJ
Permit No. 1121
Laufenberg Scholarship Fund to Mark 20th Anniversary
The George H. Laufenberg
Scholarship Fund will celebrate
its 20th Anniversary at its Annual
Awards Luncheon, Wednesday,
June 24, 2015 at the Club House
at Galloping Hill Country Club in
Kenilworth, NJ.
The Laufenberg Scholarship
Program is open to the children and grandchildren of eligible members
of the Northeast Regional Council of Carpenters, including the New
York-based local unions that participate in the Empire State Carpenters
Funds. The program’s namesake, the late George H. Laufenberg, was
the long-time president of the New Jersey State Council of Carpenters,
and Business Manager of former Madison Local Union #620.
The program presented some 38 four-year scholarships in 2014
valued at more than $200,000, as well as one-time payments of $500
to some 147 qualified applicants who did not receive scholarships.
Since its inception in 1996, the Laufenberg Scholarship Fund has
awarded more than 400 scholarships totaling nearly $3 Million.
Student applicants must be the child or grandchild of 1) an active
member of the Northeast Regional Council of Carpenters who has
been a member of the Brotherhood a minimum of five years, 2) a
retired member receiving a pension from either the NJ Carpenters
Pension Fund or the Empire State Pension Fund at the time the
application is made, or 3) a current employee of the Funds who has
been employed by the Funds a minimum of five years. Recipients
must have maintained a B-grade average in high school and must
maintain a B-grade average in college.
Please contact the Fund’s office for more information on eligibility
and application requirements at 1-800-624-3096, ext. #322.
Walking Your Way to Health
You may not realize how good walking is for your health. Walking is like
a magic pill: it lowers your stress level, reduces your risk for many diseases,
and requires no prescription. Many studies have been done on the benefits of
walking, and they all come to the same conclusion: do it as often as you can.
If you question any of the health benefits of walking, spend some
time exploring the dangers of sitting. As Americans sit more and more,
the health risks increase. Walking reverses the effects of sitting. When
you walk, you use a lot of muscles, like your hamstrings, hips, buttocks,
abdominals, and arm and shoulder muscles. You use even more muscles
when you walk up and down hills, or walk at a longer stride, or walk faster.
Make Your Own Walking Plan
1. Pick a distance or an allotment of time (say, 20 minutes)
2. Start challenging yourself by walking a little more or a few minutes
longer each day
3. Get a friend, a pet, or both, to join you on your walks
4. Pick up the pace and increase your speed to burn more calories
With luck, walking will become a healthy habit for you, a lifelong
“pill” you take daily that improves your mind and body. As always, check
with your doctor if you believe there may be restrictions on your walking.