Recently, you may have received a letter from the State of Michigan Laborers Pension Fund which suggested that contributing employers may be liable for 5% surcharge in additional to contractually required pension contribution rates. To avoid this, the collective bargaining parties are required to agree to a rehabilitation plan. Unlike the possible surcharge, any increases in the hourly contribution rate that are part of a rehabilitation plan do not increase the total negotiated wage and fringe package, but rather, are taken from currently negotiated rates.
On January 11, 2010 the Laborers Pension Fund Board of Trustees adopted a rehabilitation plan. According to federal pension requirements, this plan must be approved by the bargaining parties of the collective bargaining agreements. By approving this in a timely manner, the bargaining parties avoid any surcharge to contributing employers.
Click here to download the plan that MITA staff plans to sign on your behalf. The Preferred Schedule (Item II. B) goes into effect once MITA signs the plan. The Default Schedule (Item II. C - highlighted) is avoided upon approval by MITA.
If you have any questions, please contact Bob Patzer or Mike Nystrom at the MITA office at (517) 347-8336.