Pooled Trust Account:
Recurring payroll contributions from all CFBT participants are aggregated in the Pooled Trust Account. Similar to your CalPERS or municipal pension plan, these assets are invested in perpetuity to support the plan design for lifetime benefit payments to CFBT Regular Beneficiaries*. The Pooled Trust Account is managed by our Investment Advisor in accordance with the policies set forth by the Board of Trustees. A full actuarial valuation study, taking into account investment returns is performed every 2 to 3 years and is used to establish benefits levels.
*The Plan is currently written to provide benefits for Regular Beneficiaries until death. However, this is not guaranteed. The Trustees reserve the right to modify, limit, or terminate benefits as necessary to preserve the financial soundness of the Plan.
Individual Employee Accounts:
If your local has directed transfers of accrued leave to CFBT, these “lump sums” will be deposited into an Individual Employee Account. Participants are given a choice of 6 self-directed investment options for these assets. Like all CFBT contributions and distributions, investment returns on these accounts are tax-exempt. Individual Employee Accounts will be established for Limited Beneficiaries or participants who don’t meet plan eligibility requirements for lifetime benefits.
Individual Employee Account
- Money Market Portfolio Report
- Bond Portfolio Report
- Conservative Growth Portfolio Report
- Target Date 2030 Report
- Target Date 2040 Report
- Target Date 2050 Report