IAM # 23O5 DEPT.OF PUBLIC WORKS SCRANTON,PA International Association of Machinists and Aerospace Workers
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# 23O5 DEPT.OF PUBLIC WORKS SCRANTON,PA

 News


pension news
2/19/2005
LATEST NEWS For employees of groups joining the National Pension Plan on or after April 1, 2003, future service benefit values will be calculated at 60% of current benefit values Current participants are not affected The Board of Trustees of the I.A.M. National Pension Fund determined at their October 2002 meeting that employees of new contributing employers whose collective bargaining agreements expire April 1, 2003 or after and who negotiate into the National Pension Plan with a contribution date on or after April 1, 2003 will have their benefits calculated at a rate equal to 60% of the benefit values in the current future service benefit table. Also, new groups will no longer be eligible for past service credit beginning April, 2003. The Board wishes to emphasize that the National Pension Plan is not in financial difficulty. Its funded status and reserve strength remain among the best in the industry. Further, this change has no impact on current Plan participants. Employees of groups already participating in the National Pension Plan - including new hires - will continue to earn the benefits set forth in the current future service benefit table for both their current and future contribution rates. Finally, in the case of potential new groups with 2,500 employees or more, the Board will conduct a study to determine whether such groups can qualify for the full future service benefit values under the new schedule. The reduced benefit values are promoted by the substantial and prolonged weakness in the investment markets. The I.A.M. National Pension Fund's careful diversification has helped us manage our exposure to investment losses, and while we rank among the top-performing Taft-Haley pension funds, we have not entirely escaped the market downturn of the last several years. Our ability to sustain the current future service benefit schedule for all new groups to date has been a result of our superior investment performance over the past decade. Without the gains generated by the Fund's investments, these changes would have been put into effect earlier. Pension funds nationwide, of all sizes and types, are being forced to make difficult decisions. So must the I.A.M. National Pension Fund. But the fact remains that even with this change, new participants in the National Pension Plan will receive a far better benefit value than they can find in most company pension plans. These changes affecting new groups enable us to continue protecting the financial future of our participants. And we look forward to a recovery in the investment climate that might give us an opportunity to make plan improvements, as we have so many times in the past. Below is the new future service benefit schedule. Remember, however, that the current table will still apply to all employees of employers currently contributing to the plan. If you have any questions please contact the Education Department at the Fund office. Future Service Benefit Schedule for Employees of Contributing Employers with Contribution Dates of April 1, 2003 or after* Hourly Daily Benefit Value Contribution Contribution Monthly Normal Pension Benefit for each year of Future Service Credit. Rate Rate 0.10 0.80 $5.15 0.15 1.20 7.74 0.20 1.60 10.31 0.25 2.00 13.01 0.30 2.40 15.70 0.35 2.80 18.40 0.40 3.20 21.10 0.45 3.60 23.79 0.50 4.00 26.48 0.55 4.40 29.18 0.60 4.80 31.87 0.65 5.20 33.89 0.70 5.60 35.90 0.75 6.00 37.93 0.80 6.40 39.94 0.85 6.80 41.69 0.90 7.20 43.46 0.95 7.60 45.22 1.00 8.00 46.98 1.05 8.40 48.43 1.10 8.80 49.90 1.15 9.20 51.91 1.20 9.60 54.05 1.25 10.00 56.06 1.30 10.40 58.06 1.35 10.80 60.07 1.40 11.20 62.08 1.45 11.60 64.09 1.50 12.00 66.08 1.55 12.40 68.08 1.60 12.80 70.09 1.65 13.20 72.09 1.70 13.60 74.10 1.75 14.00 76.10 1.80 14.40 77.98 1.85 14.80 79.84 1.90 15.20 81.73 1.95 15.60 83.59 2.00 16.00 85.46 2.05 16.40 87.33 2.10 16.80 89.20 2.15 17.20 91.07 2.20 17.60 92.95 2.25 18.00 94.82 2.30 18.40 96.57 2.35 18.80 98.32 2.40 19.20 100.07 2.45 19.60 101.80 2.50 20.00 103.56 2.55 20.40 105.31 2.60 20.80 107.06 2.65 21.20 108.80 2.70 21.60 110.55 2.75 22.00 112.28 2.80 22.40 113.93 2.85 22.80 115.55 2.90 23.20 117.18 2.95 23.60 118.81 3.00 24.00 120.44 3.05 24.40 122.06 3.10 24.80 123.70 3.15 25.20 125.32 3.20 25.60 126.95 3.25 26.00 128.57 3.30 26.40 130.07 3.35 26.80 131.57 3.40 27.20 133.07 3.45 27.60 134.57 3.50 28.00 136.06 3.55 28.40 137.56 3.60 28.80 139.06 3.65 29.20 140.56 3.70 29.60 142.05 3.75 30.00 143.54 3.80 30.40 144.92 3.85 30.80 146.29 3.90 31.20 147.67 3.95 31.60 149.04 4.00 32.00 150.41 4.05 32.40 151.78 4.10 32.80 153.16 4.15 33.20 154.52 4.20 33.60 155.90 4.25 34.00 157.27 4.30 34.40 158.64 4.35 34.80 160.01 4.40 35.20 161.39 4.45 35.60 162.76 4.50 36.00 164.14 4.55 36.40 165.40 4.60 36.80 166.66 4.65 37.20 167.93 4.70 37.60 169.19 4.75 38.00 170.46 4.80 38.40 171.72 4.85 38.80 172.99 4.90 39.20 174.25 4.95 39.60 175.52 5.00 40.00 176.79 5.05 40.40 178.05 5.10 40.80 179.32 5.15 41.20 180.58 5.20 41.60 181.84 5.25 42.00 183.11 5.30 42.40 184.28 5.35 42.80 185.45 5.40 43.20 186.61 5.45 43.60 187.78 5.50 44.00 188.95 5.55 44.40 190.11 5.60 44.80 191.27 5.65 45.20 192.44 5.70 45.60 193.61 5.75 46.00 194.77 5.80 46.40 195.94 5.85 46.80 197.11 5.90 47.20 198.28 5.95 47.60 199.44 6.00 48.00 200.61 6.05 48.40 201.77 6.10 48.80 202.94 6.15 49.20 204.11 6.20 49.60 205.27 6.25 50.00 206.44 6.30 50.40 207.61 6.35 50.80 208.77 6.40 51.20 209.93 6.45 51.60 211.10 6.50 52.00 212.27 6.55 52.40 213.43 6.60 52.80 214.60 6.65 53.20 215.76 6.70 53.60 216.93 6.75 54.00 218.09 6.80 54.40 219.26 6.85 54.80 220.42 6.90 55.20 221.59 6.95 55.60 222.76 7.00 56.00 223.92 7.05 56.40 225.08 7.10 56.80 226.25 7.15 57.20 227.41 7.20 57.60 228.58 7.25 58.00 229.74 7.30 58.40 230.90 7.35 58.80 232.07 7.40 59.20 233.23 7.45 59.60 234.40 7.50 60.00 235.56 7.55 60.40 236.72 7.60 60.80 237.89 7.65 61.20 239.05 7.70 61.60 240.22 7.75 62.00 241.38 7.80 62.40 242.54 7.85 62.80 243.71 7.90 63.20 244.87 7.95 63.60 246.04 8.00 64.00 247.20 *A lower benefit schedule may apply to groups of 2,500 or more employees. 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