The CSOA has proposed that all current members of the Orchestra would retain the benefits they have earned in the Defined Benefit Plan for the rest of their lives. Many musicians have already earned the maximum allowable benefit. On top of what each musician has earned in the Defined Benefit plan, the CSOA would create a Defined Contribution plan, and the CSOA would deposit every year into each musician’s account, tax-deferred until retirement, an amount of money valued at 7.5% of the annual minimum salary. No matching funds would be required to be paid by the musicians. These funds would be invested at the direction of the musicians who would be offered professional independent investment advice.
In addition, to make the transition more robust, based on age and years of service the CSOA would deposit into each musician’s account an amount of money valued at an additional 1% to 10% of the annual minimum salary for the first three years of the plan. In other words, most musicians would receive funds valued at 17.5% of their base salary per year into their account (approximately $28,000 per year for the first three years of the plan).
In addition to the above, for musicians who joined the CSO at a relatively later age and therefore have fewer potential years of service until retirement, a lump sum payment would be made to their account to further boost their retirement account balance. New musicians joining the Orchestra would go directly into the Defined Contribution plan.
For all current and future musicians, as the annual minimum salary increases, so will the CSOA’s payments into their Defined Contribution accounts, as the payment is based on 7.5% of the annual minimum salary.
NEW: Read about the CSOA's last, best and final offer for CSO musicians submitted April 7>>