Introduction

This notice provides key details about the National Electrical Benefit Fund (the “Plan” or “NEBF”) for the plan year beginning January 1, 2025, and ending December 31, 2025 (“Plan Year”).

This is an informational notice. You do not need to respond or take any action.

This notice includes: Information about your Plan’s funding status as well as details on your benefit payments guaranteed by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency.

What if I have questions about this notice, my Plan, or my benefits?

Contact your plan administrator at:

Trustees of the National Electrical Benefit Fund
2400 Research Boulevard, Suite 500
Rockville, MD 20850-3266
Phone: (301) 556-4300

To better assist you, provide your plan administrator with the following information when you contact them:

• Plan Number: 001
• Plan Sponsor Name: Trustees of the National Electrical Benefit Fund
• Employer Identification Number: 53-0181657.

What if I have questions about PBGC and the pension insurance program guarantees?

Visit www.pbgc.gov/prac/multiemployer for more information. For specific information about your pension plan or pension benefits, you should contact your employer or plan administrator as PBGC does not have that information.

Federal law requires all traditional pension plans, also known as defined benefit pension plans, to provide this notice every year regardless of funding status. This notice does not mean your Plan is terminating.

How Well Funded Is Your Plan?

The law requires the Plan’s administrator to explain how well the Plan is funded, using a measure called the “funded percentage.” The funded percentage is calculated by dividing Plan assets by Plan liabilities. In general, the higher the percentage, the better funded the plan. The chart below shows the Plan’s funded percentage for the Plan Year and the two preceding plan years. It also lists the value of the Plan’s assets and liabilities for those years. 

Funded Percentage
	2025 Plan Year	2024 Plan Year	2023 Plan Year
Valuation Date	January 1, 2025	January 1, 2024	January 1, 2023
Funded Percentage	95.61%	95.02%	92.57%
Value of Assets	$19,595,228,572	$18,767,975,914	$17,901,877,577
Value of Liabilities	$20,494,066,576	$19,751,608,402	$19,338,915,848

Year-End Fair Market Value of Assets

To provide further insight into the Plan’s financial position, the chart below shows the fair market value of the Plan’s assets on the last day of the Plan Year and each of the two preceding plan years as compared to the actuarial value of the Plan’s assets on the Valuation Date. 

• Actuarial values (shown in the chart above) account for market fluctuations over time. Unlike market values, actuarial values do not change daily with stock or market shifts.
• Market values (shown in the chart below) fluctuate based on investment performance, providing a more immediate snapshot of the plan’s funding status.

	December 31, 2025	December 31, 2024	December 31, 2023
Fair Market Value of Assets	$19,943,937,324	$19,265,376,779	$17,670,809,535

Endangered, Critical, or Critical and Declining Status

Under federal pension law, a plan’s funding status determines the steps a plan must take to strengthen its finances and continue paying benefits:

• Endangered: The plan’s funded percentage drops below 80 percent. The plan’s trustees must adopt a funding improvement plan.
• Critical: The plan’s funded percentage falls below 65 percent or meets other financial distress criteria. The plan’s trustees must implement a rehabilitation plan
• Critical and Declining: A plan in critical status is also designated as critical and declining if projected to become insolvent — meaning it will no longer have enough assets to pay out benefits — within 15 years (or within 20 years under a special rule). The plan’s trustees must continue to implement the rehabilitation plan. The plan’s sponsor may seek approval to amend the plan, including reducing current and future benefits.

The Plan was not in endangered, critical, or critical and declining status in the Plan Year.

Participant and Beneficiary Information

The following chart shows the number of participants and beneficiaries covered by the Plan on the last day of the Plan Year and the two preceding plan years. The numbers for the Plan Year reflect the plan administrator’s reasonable, good faith estimate. 

Number of participants and beneficiaries on last day of relevant plan year	2025*	2024	2023
1. Last day of plan year	December 31, 2025*	December 31, 2024	December 31, 2023
2. Participants currently employed	324,095	318,705	310,164
3. Participants and beneficiaries receiving benefits	177,930	174,380	170,285
4. Participants and beneficiaries entitled to future benefits (but not receiving benefits)	175,182	178,537	171,271
5. Total number of covered participants and beneficiaries (Lines 2 + 3 + 4 = 5)	677,207	671,622	651,720

Funding & Investment Policies

Funding Policy

Every pension plan must establish a funding policy to meet its objectives. The funding policy relates to how much money is needed to pay promised benefits. The Plan’s funding policy is to ensure that the employer contributions to the Plan, coupled with long-term investment returns, will keep the Plan financially secure and permit the Plan to meet all current and future liabilities. The Trustees have determined that the 3% of gross labor payroll contribution rate will continue to satisfy this funding policy.

Investment Policy

Pension plans also have investment policies that provide guidelines for making investment management decisions. to select a diversified investment portfolio designed to balance risk and return, and to hire or contract with professional investment staff and advisers to ensure that the allocation of investments is prudent and that the individual investment funds and managers are achieving the goals established by the Plan. As of the end of the Plan Year, the Plan’s assets were allocated among the following investment categories as percentages of total assets:

Asset Allocations	Percentage
Cash (Interest bearing and non-interest bearing)	–
U.S. Government securities	7.50
Corporate debt instruments (other than employer securities):
Preferred	2.45
All other	10.04
Corporate stocks (other than employer securities):
Preferred	0.12
Common	15.31
Partnership/joint venture interests	14.17
Real estate (other than employer real property)	3.72
Loans (other than to participants)	0.41
Participant loans	–
Value of interest in common/collective trusts	37.03
Value of interest in pooled separate accounts	1.66
Value of interest in master trust investment accounts	–
Value of interest in 103-12 investment entities	1.12
Value of interest in registered investment companies (e.g., mutual funds)	2.43
Value of funds held in insurance co. general account (unallocated contracts)	–
Employer-related investments:
Employer securities	–
Employer real property	–
Buildings and other property used in plan operation	–
Other	4.04
Total	100.00

For information about the Plan’s investment in any of the following types of investments — common / collective trusts, pooled separate accounts, or 103-12 investment entities — contact the Trustees of the National Electrical Benefit Fund, who are the plan administrators, at 2400 Research Boulevard, Suite 500, Rockville, Maryland 20850-3266, or (301) 556-4300.

The Plan’s preliminary asset return as of the end of the Plan Year was 10.95% gross of fees.

Events Having a Material Effect on Assets or Liabilities

By law, this notice must include an explanation of any new events that materially affect the Plan’s liabilities or assets. These events could affect the Plan’s financial health or its ability to meet its obligations.

For the plan year beginning on January 1, 2026, and ending on December 31, 2026, there were no events having such an effect.

Right to Request a Copy of the Annual Report

Pension plans must file an annual report, called the Form 5500, with the U.S. Department of Labor. The Form 5500 includes financial and other information about these pension plans.

You can get a copy of your Plan’s Form 5500:

• Online: Visit www.efast.dol.gov to search for your Plan’s Form 5500.
• By Mail: Submit a written request to your plan administrator.
• By Phone: Call (202) 693-8673 to speak with a representative of the U.S. Department of Labor, Employee Benefits Security Administration’s Public Disclosure Room.

The Form 5500 does not include personal information, such as your accrued benefits. For details about your accrued benefits, contact your plan administrator.

Summary of Rules Governing Insolvent Plans

Federal law has a number of special rules that apply to financially troubled multiemployer plans that become insolvent, either as ongoing plans or plans terminated by mass withdrawal. The plan administrator is required by law to include a summary of these rules in the annual funding notice. A plan is insolvent for a plan year if its available financial resources are not sufficient to pay benefits when due for that plan year. An insolvent plan must reduce benefit payments to the highest level that can be paid from the plan’s available resources. If such resources are not enough to pay benefits at the level specified by law (see Benefit Payments Guaranteed by PBGC, below), the plan must apply to PBGC for financial assistance. PBGC will loan the plan the amount necessary to pay benefits at the guaranteed level. Reduced benefits may be restored if the plan’s financial condition improves.

A plan that becomes insolvent must provide prompt notice of its status to participants and beneficiaries, contributing employers, labor unions representing participants, and PBGC. In addition, participants and beneficiaries also must receive information regarding whether, and how, their benefits will be reduced or affected, including loss of a lump sum option.

Benefit Payments Guaranteed by PBGC

Only vested benefits — those that you’ve earned and cannot forfeit — are guaranteed.

What PBGC Guarantees

PBGC guarantees “basic benefits” including:

• Pension benefits at normal retirement age.
• Most early retirement benefits.
• Annuity benefits for survivors of plan participants. Disability benefits for disabilities that occurred before the earlier of the date the plan terminated or the sponsor’s bankruptcy date.

What PBGC Does Not Guarantee

PBGC does not guarantee certain types of benefits, including:

• A participant’s pension benefit or benefit increase until it has been part of the plan for 60 full months. Any month in which the multiemployer plan was insolvent or terminated due to mass withdrawal does not count toward this 60-month requirement. 
• Disability benefits in non-pay status.

Determining Guarantee Amounts

The maximum benefit PBGC guarantees is set by law. Your plan is covered by PBGC’s multiemployer program. The maximum PBGC guarantee is $35.75 per month, multiplied by a participant’s years of credited service.

PBGC guarantees a monthly benefit based on the plan’s monthly benefit accrual rate and your years of credited service. The guarantee is calculated as follows:

1. 1. Take 100 percent of the first $11 of the Plan’s monthly benefit accrual rate.
   2. Take 75 percent of the next $33 of the accrual rate.
   3. Add both amounts together.
   4. Multiply the total by your years of credited service to determine your guaranteed monthly benefit.

Example 1: Participant with a Monthly $600 Benefit and 10 Years of Service.

1. 1. Find the accrual rate: $600/10 = $60 accrual rate.
   2. Apply PBGC formula:
      Take 100 percent of the first $11= $11 Take 75 percent of the next $33 = $24.75
   3. Add the two amounts together: $11 + $24.75 = $35.75
   4. Multiply by years of credited service: $35.75 x 10 years = $357.50 In this example, the participant’s guaranteed monthly benefit is $357.50.

Example 2: Participant with a $200 Monthly Benefit and 10 Years of Service.

1. 1. Find the accrual rate: $200/10 = $20 accrual rate.
   2. Apply PBGC formula:
      Take 100 percent of the first $11= $11 Take 75 percent of the next $9 = $6.75
   3. Add the two amounts together: $11 + $6.75 = $17.75
   4. Multiply by years of credited service: $17.75 x 10 years = $177.50 In this example, the participant’s guaranteed monthly benefit is $177.50.