NRF 204(h) Notice

TO: Participants and Alternate Payees in the Adjustable Plan of the National
Retirement Fund; Workers United, an SEIU affiliate; and Contributing Employers
to the Adjustable Plan of the National Retirement Fund
FROM: The Board of Trustees of the National Retirement Fund
DATE: September 15, 2021
SUBJECT: Retirement Benefits Under the Adjustable Plan of the National Retirement Fund
You are receiving this notice because you are either: (i) an active participant in the
Adjustable Plan of the National Retirement Fund (the “Adjustable Plan”); (ii) an employee
organization representing participants in the Adjustable Plan; or (iii) an employer that contributes
to the Adjustable Plan. This notice contains important information concerning participants’ future
pension benefits under the Adjustable Plan.
The Board of Trustees of the National Retirement Fund (the “NRF”) is the plan
sponsor of both the Adjustable Plan and another pension plan called the Legacy Plan of the
National Retirement Fund (the “Legacy Plan”). All employers that contribute to the Legacy Plan
also contribute to the Adjustable Plan. The Settlor Committee of the National Retirement Fund
(the “Settlor Committee”) is responsible for allocating contributions to the NRF between the
Adjustable Plan and the Legacy Plan, based on a number of factors.
The Settlor Committee has determined recently that, effective October 1, 2021, on
average, an additional five cents of each employer’s hourly contribution rate will be reallocated
from the Legacy Plan to the Adjustable Plan. The reallocation will not affect the amount of
benefits participants accrue under the Legacy Plan because the Legacy Plan is frozen. Participants
in the Adjustable Plan will not earn benefits on the reallocated contributions. Instead, the
reallocated contributions will be used for the administration of the Adjustable Plan.
PLEASE NOTE THAT THE FACT THAT A PORTION OF EMPLOYER
CONTRIBUTIONS IS BEING REALLOCATED ON A PROSPECTIVE BASIS FROM
THE LEGACY PLAN TO THE ADJUSTABLE PLAN WILL IN NO WAY REDUCE OR
ADVERSELY AFFECT YOUR BENEFITS UNDER THE ADJUSTABLE PLAN OR
LEGACY PLAN, NOR WILL IT REDUCE OR ADVERSELY AFFECT YOUR CURRENT
ACCRUAL RATE UNDER THE ADJUSTABLE PLAN.
DOC ID – 36894185.1
To further help explain the impact of the contribution reallocation from the Legacy
Plan to the Adjustable Plan, please see the following explanation of how you earn Adjustable Plan
benefits, followed by a benefit example before and after the contribution reallocation goes into
effect:
Your monthly Normal Retirement Pension Benefit equals the sum of the benefit
you earn during each plan year that you earn Credited Service. The benefit that you
earn during a Plan Year is the sum of:
(i) the contribution rate x the future service multiplier x your Future Service
PLUS
(ii) the contribution rate x the past service multiplier x your Past Service
For benefits earned from the Adjustable Plan’s effective date of January 1, 2015,
through September 30, 2021, the future service multiplier was 37 and the past
service multiplier was 14.8. For benefits earned on or after October 1, 2021, these
multipliers remain unchanged. In addition, the contribution rate used to calculate
your benefit earnings is also unchanged because the contributions being reallocated
from the Legacy Plan to the Adjustable Plan will go towards the cost of
administering the Adjustable Plan.
Benefit Example:
Before the Contribution Reallocation
Assume your employer contributes $0.22 per hour to the Adjustable Plan, you work
1,600 hours each year (thus earning 1.0 year of Future Service for each year
worked) and the Adjustable Plan’s benefit multiplier remains at 37 each future year.
If you retire with 20 years of Future Service, you will receive a monthly benefit of
$162.80 ($0.22 x 37 x 20).
Continuing the example, if you were earning Past Service under the Legacy Plan,
then you will continue to earn Past Service from the Adjustable Plan (up to a total
of 20 years of Past Service combined between both plans). Assume you have
already earned 10 years of Past Service in the Legacy Plan and have 10 years of
Past Service remaining to be earned under the Adjustable Plan. If you retire with
20 years of Future Service and 10 years of Past Service, you will receive an
additional monthly benefit of $32.56 ($0.22 x 14.8 x 10), for a total benefit of
$195.36 ($162.80 + $32.56).
Note that the Adjustable Plan’s benefit adjustment feature is still in place, and the
future service multiplier and past service multiplier could change in future years,
depending on the Adjustable Plan’s future investment earnings.
DOC ID – 36894185.1
After the Contribution Reallocation
The example above remains unchanged. While the total contribution rate allocated
to the Adjustable Plan increases by $0.05 per hour, from $0.22 per hour to $0.27 per hour, the
contribution rate used to calculate your benefit remains $0.22. The additional $0.05 per hour is
used to administer the Adjustable Plan.
If you have any questions regarding this notice or your benefits under the
Adjustable Plan, please do not hesitate to contact the Fund Office at (833) 440-8476 between
8:30 AM to 4:45 PM EST. This Notice is issued in compliance with Sections 204(h), 102(a) and
104(b) of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980F
of the Internal Revenue Code of 1986, as amended. The Board of Trustees continues to reserve
the right to amend or terminate the Adjustable Plan and/or the Legacy Plan at any time.

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