2.1 First Three Years:

  1. A moratorium on benefit cuts for three years.
  2. Increase employer contributions to the plan by 6% a year over a five-year period (a 34% increase), dropping to 2.9% a year in year 6 and following.
  3. Reduce fund administrative expenses by 10%.

Since the Lowman letter and plan presentation, MPS has clarified that the 6% increase is net of wages. In other words, since pension contributions are calculated as a percentage of wages if wages improved in a particular year by 2%, then the required pension contribution increase that year would only be 4%.