Union celebrates further retirement benefit improvements for Local 6 Club employees
Union announces successful merger and long-awaited benefit improvements for Local 6 Club employees effective January 1, 2025
Late last week, the Pension Benefit Guaranty Corporation, a U.S. Government Agency, granted final approval of the merger of the Club Employees Pension Fund with the Hotel Trades Council and Hotel Association of New York City, Inc. Pension Fund. The obtaining of federal government approval of the merger was the last of many steps in the process to merge both funds.
This merger will make certain Club Pension benefit improvements immediately possible for active Club employees, removing the cap on Pension Credits where participants stop accruing after 25 years and reducing the hourly thresholds to earn Pension Credits. It also follows on the heels of the Union’s announcement just last December 2023, when the Club Pension benefit increased for the first time in nearly 20 years – by nearly 17% – due to the increase in the value of a Pension Credit (from $30 to $35 per credit up to a maximum of 25 Pension Credits).
How benefits will improve for Local 6 Club Employees
For all active otherwise eligible Club Pension participants who are working on or after January 1, 2025, the following benefit improvements will take effect:
- Supplemental pension benefit amounts for credits above 25 to 40.
Until now, Club Pension participants earned a maximum of up to 25 Pension Credits, even if they worked 30 or 40 years. Beginning January 1, 2025, Club Pension participants will earn an additional pension benefit for each credit in excess of 25, up to a maximum of 40 Pension Credits. Each additional Pension Credit above 25 through 40 will be equal to $17.50. This benefit improvement will be applicable to participants who are working on or after January 1, 2025, meaning an employee who has worked for 35 years at a Club and who as of January 1, 2025 is still working, will have their first 25 Pension Credits calculated at $35 per Pension Credit, plus their 10 additional Pension Credits valued at $17.50 per Pension Credit.
2. Participants must work fewer hours in a year to qualify for a full Pension Credit.
Pension Credits help determine the amount of your pension benefit available at retirement. You may receive a maximum of one (1) Pension Credit per calendar year. With the merger, beginning January 1, 2025, the minimum number of hours a Club Pension participant must work in order to earn a partial or full Pension Credit will be dramatically reduced, making it easier to earn more Pension Credits. This change will be prospective only, and not retroactive.
Minimum Hourly Threshold to Qualify for Pension Credit
Pre-Merger (rule until 12/31/24) |
Post-Merger (rule beginning on or after 1/1/25) |
||
Hours Worked |
Pension Credit |
Hours Worked |
Pension Credit |
Under 660 |
0 |
Under 500 |
0 |
660-999 |
1/2 |
500-749 |
1/2 |
1,000 - 1,439 |
3/4 |
750-999 |
3/4 |
1,440 or more |
1 |
1,000 or more |
1 |
What this means for working Club Pension participants
Before December 2023, the Club pension maximum monthly benefit was [$30/credit] x [25 years] = $750 maximum monthly benefit
The current Club pension maximum monthly benefit after the December 2023 credit value increase (from $30 to $35 per credit) is [$35/credit] x [25 years] = $875 maximum monthly benefit
Starting January 1, 2025, following the merger, the Club pension maximum monthly benefit available to active participants will be [[$35/credit for years 1-25] x [25 years]] + [[$17.50/credit for years above 25-40] x [15 years]] = [$875 + $262.50] = $1,137.50 maximum monthly benefit
This means that in just the past year, since December 2023, the Club pension maximum monthly benefit will have improved by a whopping 52%.
Over the next few weeks and months, you will receive additional communications from the Hotel Trades Council and Hotel Association of New York City, Inc. Pension Fund.
In the interim, feel free to contact your Business Agent, the Hotel Pension Fund, or the Union’s Legal Department with any further questions you may have.
Congratulations again, and Happy New Year,
Rich Maroko
Business Manager
Hotel, Gaming, Restaurant & Club Employees and Bartenders Union, Local 6, AFL-CIO
