XDISA ASSOCIATION March 2, 2019
Formal communication regarding potential plans for changes to the DISA Pension Plan.
We have been notified by our colleague Rainer Kurzknabe that changes are afoot to the DISA pension plan. As detailed in his note, this would imply the transfer of all remaining active members to other business entities with possible changes in the benefits being offered.
This information was provided unofficially by a member of the DISA Pension Board.
Our association has not yet been advised of what changes might be planned, but we have been invited to discuss these plans with the DISA Board. We will meet them on March 21st.
As of December 31st, 2017, there were 312 active members sharing our plan. Previous separations (DPC/DPP, Chemours and 2016 restructuring) reducing the number from 608 in 2013.
Since 2012 new active employees were no longer admitted to this plan but had a new, separate plan based on contributions.
Every time employees are transferred to a new business entity; the plan is partially liquidated and the accrued benefits in the form of “Fonds de libre passage” are transferred to the new business entity for the employees concerned. This means that the funds accumulated are not lost or reduced, but the benefits that will eventually be served depend on the plan of the new entity. In the next few months active employees will thus be transferred to DOW and to CORTEVA. If DuPont Specialties becomes a new business entity, it is likely that the remaining employees will also be transferred, leaving the plan to serve only present retirees.
So, the process described by Rainer could likely result in our fund being technically a “closed fund”.
We can only guess what the company can do and have NO OFFICIAL COMMUNICATION from them at this time.
The underlying concern that we all share, is the viability of the fund. Let’s make it clear that the founding entity has the legal obligation to serve all remaining beneficiaries for the rest of their life at the conditions which they acquired upon retiring. This is clearly stated in the law and in the founding document of our plan.
We do not know any more details currently. We will share what we learn after our meeting on March 21st.
Please also note that the company and the fund administrators communicate changes and conditions only to the individuals concerned, so we will not be informed of details of any new plan proposed to active employees
This document is being sent to all our members as well as other pensioners who are not members but for which we have mail details
Pierre Chaigneau and Georges Darrer