View plan information flyer for prospective employers

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lifetime
strong
secure
National Pension Plan
Get a Great Deal for your Company
the
and a
for
Great Pension Plan
your Employees
the
IAM National Pension Fund’s
National Pension Plan
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National Pension Plan
is Great for Employers and Employees
the
The IAM National Pension Fund’s National Pension Plan is the smart choice in today’s economy to help you help your
employees have a more secure financial future. Rather than offering your own pension plan—or in addition to the 401(k) plan
you may offer—join our Fund and provide your employees with a highly regarded pension plan that pays benefits for life. In
addition, you’ll save money, reduce your plan administration headaches, and have one less worry as you focus on the business
of running your company.
Here’s What’s in it For You
The National Pension Plan is a
multiemployer plan—a type of plan where
the responsibility of providing benefits is
shared among a group of employers. In the
case of our Plan, the responsibility is shared
with over 1,750 employer locations
nationwide. All employers have an equal
voice in the operation of the Plan, through
the Employer Trustees who sit on the
Fund’s Board of Trustees.
By participating in the Plan, contributing
employers offer a valuable benefit to their
employees while leaving the worry and
administrative, legal and other Plan-related
headaches to the Fund Office staff. The Fund,
which is headquartered in Washington, DC,
is assisted by a group of professionals that
includes actuarial consultants, attorneys,
auditors and investment managers.
Defined Benefit Pension
Plan: Lower Costs
The National Pension Plan is a defined
benefit (DB) pension plan. A recent study
showed that, when providing the same
benefits, DB plans can be offered at nearly
half the cost of defined contribution (DC)
plans, given that…
…everyone in a DB plan won’t live until
95, so the plan doesn’t need to fund for
that lifespan for every participant.
“ Investing pension assets for
current service is not our core
business and, all else being
equal, we’d prefer not to be in
that business. So, we were
…a DB plan doesn’t age the way an
pleased that both the
assets over a long time horizon and
wanted the IAM National
individual does, so it can allocate its
potentially produce higher investment
returns.
Machinists and the UAW
Pension Fund in their
contracts. The IAM National
…a DB plan generally pays lower
Pension Fund presents almost
would pay.
us, and we know our IAM and
investment fees than an individual
Fixed, Predictable
Contributions
no administrative burden for
UAW pension costs for the life
of those contracts. As
importantly, we believe that
While participants enjoy fixed monthly
the IAM National Pension
enjoy fixed, predictable contributions during
employees will receive what
benefits for life, contributing employers
Fund is sound, so our
the life of each contract. This means that
they’ve contracted for.
employers are protected from the volatility
of year-by-year funding affecting singleemployer pension plans.
Jeff Clark
Human Resources Director
Spirit AeroSystems, Inc.
Wichita, Kansas
“
Multiemployer Plan:
Shared Risk and Shared
Responsibility
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Here’s What’s in it For You
Impressive Long-Term
Investment Performance
Tax-Deductible
Contributions
billion, making it one of the largest pension
deductible.
funds in the country and the fifth largest
multiemployer pension fund.
Although the Fund’s investments took a
tumble in 2008—along with the investments
of most every other institutional and private
investor—our Fund had a great 2009, and we
have continued to weather the storm since
then.
A Disciplined, Long-term
Approach
The Fund’s Trustees adhere to a disciplined,
long-term investment policy based on solid
fundamentals and meticulous research and
analysis. They maintain a broadly diversified
portfolio and employ an automatic
rebalancing mechanism. The Fund’s
investment program is structured to include
both actively managed portfolios and index
funds, usually based on a market index such
as Standard & Poor’s S&P 500 Stock Index.
The investment committee of the Board of
Trustees reviews quarterly performance and
activity reports on each of the investment
All contributions made to the Plan are tax
No Administrative Costs
Your negotiated contribution rate pays
for all Plan benefits and covers all Plan
“ The National Pension Plan
administrative costs, including record
provides our employees with
audits, legal fees, investment expenses,
In addition, the Fund Office
Guaranty Corporation (PBGC) premiums.
administrative hassles. It’s
keeping, government filings and compliance,
the security they deserve.
actuarial studies and Pension Benefit
staff handles all the
Also, PBGC premiums are a low $12.00 per
a win-win situation for us.
participant per year. This compares to the
single-employer PBGC premium of at least
$42.00 per participant per year. As a result,
more of your contribution dollars go toward
pension benefits.
Convenient Reporting
Processes
The Fund offers flexible reporting systems
to suit your needs. In addition, Web-based
tools are available for filing information and
making changes.
managers. In addition, each investment
manager makes regularly scheduled
presentations to the full Board.
Independent from
the Union
By law, the IAM National Pension Fund is
separate from the IAM union and is
managed by a joint Board of Trustees, with
equal representation by contributing
employers, like yourself, and the IAM. Please
visit our website to meet our Board:
www.iamnpf.org.
1
“
The Fund’s current assets are nearly $10
Pete Peterson
Vice-President, Human
Resources
Minnesota Rubber Co.
Minneapolis, Minnesota
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Questions, Straight Answers
What is withdrawal
liability and to whom
does it apply?
Withdrawal liability exists when a
multiemployer pension plan has unfunded
vested benefits. This happens if the value
of benefits already vested is greater than
the plan’s assets.
If an employer stops participating in a
multiemployer pension plan with unfunded
vested benefits, the law requires the
employer to pay a pro-rata share of the
plan’s unfunded vested benefits.
Here’s the key point: Employers who do
not withdraw from a pension plan with
unfunded vested benefits don’t owe money
under withdrawal liability. It’s that simple.
Impact of the Worldwide
Economic Downturn
Until the market reversals of 2008, the IAM
National Pension Fund had a spotless record
of no withdrawal liability since 1984—a
terrific stretch of more than 25 years.
However, as with most investors, the Fund
experienced losses in 2008. Those losses
resulted in the Fund having unfunded vested
benefits for the 2009 plan year.
However, due to favorable investment
returns in subsequent years, the Fund has
had no unfunded vested benefits since then,
and no withdrawal liability for employers.
Employers who remain contributing
employers do not face withdrawal liability.
It’s that simple.
The Free Look
If you’re an employer hesitant to start
contributing to the Fund because of the
potential for withdrawal liability, there’s a
“free look” provision that eliminates
withdrawal liability risk. Employers that have
never participated in the Plan, or are not part
of a control group that currently participates
in the Plan, are entitled to participate for five
years without incurring withdrawal liability if
they withdraw—no withdrawal liability.
None.
Keeping Things in Perspective
The fact that the Plan had withdrawal liability
is a reminder of an economic downturn that
continues to be felt. However, the Plan has
weathered a poor economy a number of
times in its 50 plus year history and
emerged strong and healthy, and we’ve
done it.
Our Trustees manage the Plan with the
express purpose of eliminating withdrawal
liability. After all, half the board’s Trustees
are employers. You can rest assured it is the
Trustees’ intention to resolve these issues
quickly.
Why would we give up
the control we have with
our current pension plan
and get involved with a
labor-management
pension plan?
The Pension Protection Act of 2006 (PPA)
increased the volatility of single-employer
company pension plans. Year-by-year
flexibility has been largely eliminated and
replaced by mandatory current funding and
government-mandated interest rates.
The multiemployer plan approach of the
National Pension Plan provides a stable,
strong alternative. Your company’s steady
contributions to the National Pension Plan
are likely to represent better security and
value for you and your employees.
2
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Questions, Straight Answers
In addition, although the Fund exists to
provide pension benefits to IAM members,
by law it is independent from the union.
It is a separate entity managed by an active
Board of Trustees composed of members
from both labor and management.
Employers have an equal vote in the Fund’s
management.
There’s one more benefit of participating in
the National Pension Plan to consider: under
certain circumstances, the Plan permits
participation by a contributing employer’s
non-collectively bargained employees. Think
of this as the potential for “one stop shopping”
for all your employees’ pension needs.
Will employees lose their
vested benefits in our
company plan if we switch
to the National Pension
Plan?
No. An employee’s vested benefits belong to
the employee. When a company becomes a
contributing employer to the IAM National
Pension Fund, there is no impact on
employees’ benefits under the company’s
plan. In addition, vesting service in a
company plan, including any qualified plan
such as a 401(k) plan, may count in the
National Pension Plan for vesting purposes
and toward eligibility for unreduced early
retirement benefits.
Over the years, many employers who
became contributing employers froze their
company plans and merged them into the
National Pension Plan. If you now have a
company pension plan and become a
contributing employer to our Plan, you may
want to consider merging your plan into
ours. This would allow you to eliminate the
burden of administering your company’s
frozen pension plan.
We’ve always believed that
a 401(k) plan offers greater
value as well as more
flexibility for our workforce.
Isn’t that true?
The Fund recognizes the value of a 401(k)
plan as a supplement to a defined benefit
pension plan. We even offer one to IAM
members who already have a defined
benefit plan.
But, unfortunately, even individuals who do
everything perfectly with their 401(k) plans
can still be ruined if a market reversal occurs
when they intend to retire. We saw that
happen in 2008 when more than $1 trillion
in stock value in defined contribution plans
disappeared and the value of the average
401(k) plan plummeted.
The sad truth is that most individuals don’t
save enough, aren’t sophisticated investors,
often cash out their 401(k) accounts when
they change jobs and borrow from their
accounts while they are working. As a result,
they are not building sufficient savings on
which to retire.
With the National Pension Plan, the money
will be there for them at retirement and will
last for life.
Lastly, for you, the National Pension Plan is
like a defined contribution plan. All you need
to do is contribute—just like a match to a
401(k) plan. You are not required to provide
a benefit—that’s the responsibility of the
IAM National Pension Fund. However, your
employees get the security and safety of a
defined benefit plan.
3
“ The National Pension Plan is
a blessing. It’s a very solid,
professionally run plan whose
performance has been
excellent. As a small
employer, the administrative
burden of supporting our own
plan would be exceedingly
expensive. I would absolutely
recommend any employer
consider the Fund instead of
trying to establish and
administer a single-company
fund. For small to medium
size companies, there’s no
other reasonable alternative.
Warren Bird
President
California Saw, Knife &
Grinding Co.
San Francisco, California
“
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the National Pension Plan: a Long History of
Providing Security to Employees and Employers
During its 50 plus year history, the IAM
National Pension Fund’s National Pension
Plan has seen many changes and weathered
many storms, not the least of which is the
financial turbulence that began in 2008 and
continues to affect both the stock market
and the overall economy.
As with most investors, the IAM National
Pension Fund suffered investment losses in
2008, just as it did in past downturns.
However, these losses in no way threaten
the Fund’s ability to keep its commitment to
pay benefits. As it happens, 2008’s weak
numbers for the Fund were followed by
resoundingly positive investment
performances since then.
Now is the Right
Time to Join
A few key facts make this an ideal time for
employers to consider the benefits of the
IAM National Pension Fund’s National
Pension Plan for their IAM-represented
employees:
No pensioner has ever missed a benefit
check in the Fund’s 50 plus year history.
In good times and bad, the Fund’s handson Trustees exercise prudent leadership
on behalf of the Fund’s participants,
retirees and contributing employers.
The Fund’s Trustees, the Fund Director,
the Fund staff and professional advisors
remain deeply committed to the Fund’s
mission of providing the best possible
pension benefits for current and future
participants, while protecting the financial
stability of the Plan. This has been true for
50 plus years, and continues to be so.
The National Pension Plan has proven to be a smart choice
for companies at over 1,750 employer locations; for more
than 100,000 active participants; and for more than 87,000
retirees and beneficiaries covered by the Plan.
The Trustees and the Fund Office staff work tirelessly to
help the Fund maintain its secure financial position. We’re
proud of our accomplishments:
Paying over $4 billion in benefits during our
first 50 plus years
Improving the financial security and peace of mind of
tens of thousands of IAM retirees and their families
Consistently ranking among the top 10 multiemployer
pension funds in the country.
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National Pension Plan Power: It’s Easy to Get
The first step to joining the National
Pension Plan is simple: just agree to be a
contributing employer in your collective
bargaining agreement with the IAM. This
agreement will define the contribution you
will pay monthly on behalf of your
employees.
Contribution rates range from $0.10 an hour
to $28.50 an hour, in $0.05 increments (the
benefits produced by these contributions
can be found online at www.iamnpf.org).
The bargaining parties also need to adopt
the standard contract language provided by
the Fund. As a contributing employer, you
will know at the time the contract is
negotiated what your pension costs will be
for the length of the collective bargaining
agreement.
Interested?
The Fund Office staff will gladly provide you
with more information about the National
Pension Plan and the financial security it
offers your employees while saving your
company time and money.
We can put you in touch with our Employer
Trustees as well as contributing employers in
your industry or geographic area.
Contact the Fund Office’s Education
Department:
IAM National Pension Fund
1300 Connecticut Avenue, NW, Suite 300
Washington, DC 20036-1711
Phone: 800-424-9608
Fax: 202-785-4021
Email: [email protected]
Website: www.iamnpf.org
Stephen R. Sleigh, Fund Director
“ Without equivocation, I would recommend
the National Pension Plan to other
employers. I’m extremely proud that the Fund
has been able to maintain a very sound
financial position while both improving
benefits to workers and protecting the
“
companies we represent.
Ronald Fetty
Director Industrial Relations
ABF Freight System, Inc.
Sauk Village, Illinois
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Contributing Employers Today!
An Impressive List — Here’s a listing of just a few of the many employers who
contribute to the I.A.M. National Pension Fund’s National Pension Plan.
Aerospace
L-3 Communications Vertex Aerospace
Northrop Grumman Technical Service, Inc.
Spirit Aerosystems, Inc.
United Space Alliance
Automotive and Motor Vehicles
Fresno Chrysler Jeep
Ganley Honda
Jim Ball Pontiac-Buick-GMC Truck, Inc.
Kline Volvo
Leikin Motor Companies
Motor Coach Industries, Inc.
Penske Truck Leasing Co.
Ryder Truck Rental, Inc.
Walser Buick-Pontiac GMC LLC
Construction and Erection
A. Teichert & Son, Inc.
Casey Equipment Co., Inc.
Commodore Corp.
Halbert Brothers, Inc.
Thoesen Tractor & Equipment
Electronics
Arnold Engineering Co., Inc.
Milwaukee Resistor Corp.
Ross Decco Co.
Financial
Coosa Pines Federal Credit Union
I.A.M. Federal Credit Union
Food and Beverage
Coca-Cola Bottling Co.
Dominicks Finer Foods, Inc.
Gallo Wine Co.
Giant Food, Inc.
Holsum Bakery, Inc.
Miller Brewing Co.
Ocean Spray Cranberries, Inc.
Okeelanta Corp.
Ralph’s Grocery Co.
Safeway, Inc.
Sara Lee
US Sugar Corp.
Freight and Delivery Systems
ABF Freight System, Inc.
APA Transervice Lease Corp.
Auto Truck Transport Corp.
New England Motor Freight
United Parcel Service, Inc.
Yellow Freight System, Inc.
July 2013
Health Care and Human Services
Dialysis Clinic, Inc.
Getinge Sourcing LLC
Inomedic Health Applications, Inc.
Quincy/Adams 911 Center
St. Catherine of Siena Medical Center
The Cranston Center
Union Vision Center of Stow, Inc.
Manufacturing and Machinery
California Saw, Knife, and
Grinding Co.
Dresser-Rand
Electrolux Home Products
National Pattern, Inc.
New York Air Brake Corp.
A Knorr Brake Co.
Olin Brass
Stanley Black & Decker, Inc.
TitanX Engine Cooling, Inc.
Media
Boston Globe Newspaper Co.
Detroit Newspaper Agency
Metals and Metal Containers
A.J. Oster Foils, Inc.
Advance Die Casting Co.
Crown Cork and Seal Co. (USA), Inc.
Rexam Beverage Can Co.
Rustic House Ironworks, Inc.
Silgan Containers Corp.
Special Metals
Municipalities and Government
City of Great Falls, Montana
City of Greendale, Indiana
City of Lawrenceburg, Indiana
City of Scranton-Dept. of Public Works,
Pennsylvania
Economic Development and
Industrial Corp. of Boston
Town of Alma, New York
Town of Harpswell, Maine
Town of Pe Ell, Washington
Service Contractors
Ahntech, Inc.
Army Fleet Support, LLC
CSC Applied Technology LLC
Dyncorp. Technical Services LLC
Project Resources/Del-Jen
URS Federal Technical Services, Inc.
Ship Building and Repair
Bath Iron Works Corp.,
A General Dynamics Company
Oceanwide Repair, Inc.
Telecommunications
Efficiency Enterprises, Inc.
Indyne, Inc.
LJT Associates, Inc.
Transportation
Aer Lingus Ltd
British Airways
Continental Micronesia
IronTiger Logistics, Inc.
JAX Transportation
Philippine Airlines, Inc.
Port Imperial Ferry Corp.
United Airlines
US Airways
Yellow Cab of Pittsburgh
Waste Management
BFI Waste Systems of
North America
Waste Management of Illinois
Other
Culligan Soft Water Service Co.
Dowling College
Florida State College at Jacksonville
Ivory Leathers, Inc.
NW Contexture Congregations
Paper
Potlatch Corp.
Sierra Pine Ltd.
The American Stationery Co., Inc.
1300 Connecticut Avenue, NW, Suite 300
Washington, DC 20036-1711
Plastics
Crescent Plastics, Inc.
ITW Tomco
Pratt & Whitney Auto Air, Inc.
Email: [email protected]
Website: www.iamnpf.org
Phone: (800) 424-9608
Fax: (202) 785-4021