Around April 20th, Exelon mailed out a letter to approximately 2318 of our members in the “Pension Plan for Bargaining Unit Employees” identifying that their “pensionable pay” had been calculated incorrectly, back to the plan’s inception in 2001.
For members in that plan, which includes everyone newly hired after December 31, 2008, “pensionable pay” should have been the actual base rate of pay, not including overtime, not the amount actually received. The received amount might be less than the pay rate if an employee received MBA disability pay, Workman’s Compensation or other factors.
Additionally, it was found that the Nuclear Station Operator License Requalification and the Meter Reader Bonuses were not included in the calculation. Everyone who received a letter had an increase in the value of their pension.
How the plan works: At the end of each year, you receive a “Benefit Credit” which is a percentage of your “pensionable pay”, based on your age (4.5% up to 11%) which determines the amount that Exelon contributes to your pension account annually. “Investment Credit” is the interest paid to your account at the end of each year.
If your “pensionable pay” was incorrect, then so is your Benefit Credit. A lower Benefit Credit leads to lower a “Investment Credit”; this issue compounds and gets worse over time, reducing the total value of your account.
Exelon claims they have corrected these issues which have resulted in $2.58 million more in our members’ pension accounts. If you want to know specifically what has changed in your pension plan account, call the Exelon Service Center (877-739-3566).