CONTRIBUTIONS TO VAP Sample Clauses

CONTRIBUTIONS TO VAP. 12.06.1 Sound Variable Annuity Pension Plan. As of the effective date of the new future service defined benefit variable annuity plan (VAP), future service benefit accruals will be earned in the Sound Variable Annuity Pension Plan (VAP), a multiemployer variable annuity defined benefit plan. Participants’ service earned under the Sound Retirement Trust (SRT) and the VAP will be recognized for participation, vesting and benefit eligibility purposes in both plans. The VAP shall operate on a calendar plan year basis.

CONTRIBUTIONS TO VAP. 15.4.1 The Employer will contribute eighty one and one quarter cents ($.8125) per hour for each eligible active participant to the VAP, commencing with the effective date and eighty one and one quarter cents ($.8125) per hour effective January 1, 2022 and eighty one and one quarter cents ($.8125) per hour effective January 1, 2023. Contributions will be made on behalf of current active employees and future newly hired employees in classifications for whom contributions have been made under the current collective bargaining agreement and on the same compensable hour basis as contributions are currently made to the SRT. Contributions shall be remitted monthly, in the same manner as they have been made to the SRT. Notwithstanding the above, for the term of this contract, in no event shall the contribution be less than 125% of the base contribution to the Sound Trust as of the effective date of the VAP. All actuarial assumptions of the plan will be reviewed and adjusted as necessary on an annual basis for the term of this CBA. In addition, the Employer will contribute three cents ($.03) per hour for each eligible active participant to the VAP, commencing with the effective date of the VAP through the end of the initial first full Plan Year. The eligibility, rights and features of the benefit design of the VAP on the effective date of the VAP will replicate the current benefit design of the SRT, except that the benefit accrual will be based on a formula that utilizes total contributions made on the employee’s behalf and a percentage accrual factor that reflects the VAP characteristics (to be reviewed jointly by the parties). For the short plan year and the first full plan year, there shall be a floor benefit and the benefit accrual of the VAP cannot be less than what the participant would have earned in the same period under the SRT benefit formula. Thereafter, the earned benefit accrual will be adjusted annually up or down based on performance to a 5.5% hurdle rate which will also be used to discount the benefit liabilities. The Employer agrees to promptly provide, on a periodic basis, such salary data for employees intended to be covered by the VAP to allow the actuaries for the parties developing the VAP to determine the benefit accrual rate from the VAP that can be funded with such contributions determined above and in the future as the VAP operates to allow administration of the VAP.

CONTRIBUTIONS TO VAP