Future of the Fund

• From July 2012, new employees at DISA will participate in a different pension scheme based on contributions rather than benefits.
• This means that participants hired before that date will continue to participate in the existing benefit-based fund and will continue to contribute, however at an increased rate of 8% vs. 6%. Their rights to a pension based on the defined benefits plan are vested, i.e. they are guaranteed that the plan will apply to them when they retire. De facto, our Fund is now a closed fund, since no new participants can join.
• DuPont will continue to contribute to the defined benefits plan so long as there are active participants on their rolls. They will also contribute to the new contribution-based fund for new and future employees. Both funds are totally separate.
• The number of contributors to our defined benefit fund will therefore progressively dwindle for the next 20-25 years. At that point, there will no longer be statutory contributions from active participants nor from the founder. The funds on hand will have to cover benefits relying mainly on investment income for an additional 25-30 years until there are no beneficiaries left.
• From that time on, the Fund will have to be able to cover its obligations strictly by its capital and investment revenue, to pay out pensions until the last beneficiary dies. That could take an additional 25-30 years.
• To maintain the fund healthy for that length of time an average actual return on investment of at least 3% would be required.
• The current average beneficiary is 72 years old. Most will not see the transition into the fund depletion phase.