Common use of Eligibility and Membership Clause in Contracts

Eligibility and Membership. All regular employees hired before and after January 1, 2000 will continue to participate in the Defined Benefit Pension Plan. Effective January 1, 2016 all members in the Defined Benefit Pension Plan will start to contribute a percentage of their annual earnings towards their Defined Benefit Pension Plan. The percentages of contribution will be as follows: Year 2016: 4% Year 2017: 5% Year 2018: 5% The annual pension contribution will have a maximum of $4500.00 for those regular employees except those hired after January 1, 2000 and $3500.00 for those regular employees hired after January 1, 2000. Employees who will reach their 30 year accrual in the pension plan will no longer contribute to the Defined Benefit Pension Plan as of that date. Membership in the Defined Benefit Pension Plan is compulsory. Effective January 1, 2010, a defined contribution (DC) component will be incorporated in the Pension Plan. The employee and the employer will each contribute the same annual percentage of base hourly earnings up to a maximum of 2080 hours per year as contributions in the DC component. Starting January 1, 2010, the defined benefit (DB) component of the Pension Plan will be closed to new entrants in the Pension Plan and all new Plan Members will go into the DC component. Annual Company Percentage Contribution 2016 5% 2017 5% 2018 5% Annual Employee Percentage Contribution 2016 5% 2017 5% 2018 5%