Benefits
Most of us look forward to being able to retire someday.
Preparing for this financial goal requires learning about the
factors that affect your pension.
The Fund's benefit levels have been set over the years by the
Trustees. The Trustees retain the services of professional
investment managers, actuaries, accountants and attorneys to make
sure that the Fund is operated in a financially, actuarially and
legally sound manner, and so that the Fund's assets will always be
sufficient to pay the benefits which are specified in the Fund's
Trust Indenture.
Participants in the Inter-Local Pension Fund can deduct their
contributions to the Fund on their taxes, subject to certain
limitations. The Inter-Local Pension
Fund is one of the few ways today in which an individual can make
tax deductible contributions to a retirement plan.
The level of required contributions to the Inter-Local Pension
Fund is established by a vote of the participating local union
membership. All members of the participating local must
participate in the Fund at the fixed level of contributions. This
is actuarially required in order that the Fund can safely pay out
the highest possible pension benefits to all participants. The
local union's contribution level can be as low as $5.00 per week
or as high as 10 percent of gross pay.
The plan provides the following benefits:
- Normal Retirement at age 65
- Early Retirement at age 55
- "Rule of 75" Benefit
- Disability Benefit
- Vested Pension Benefit
- Withdrawal Benefit Option
- Death Benefit
- Surviving Spouse Benefit
- Joint and Survivor Option
In 1950, when the Inter-Local Pension Fund began, the Trust
Indenture provided for a retirement benefit at age 65 of $1.36 per
month for each $130 of contributions by the individual
participant. As the Fund has prospered over the years, the
Trustees, with approval of the Fund's actuaries, have gradually
improved the retirement benefits. Today, a participant can retire
at age 65 and receive an unreduced normal retirement pension of $9.00 per month for
every $260 of contributions.
The Fund is not a qualified plan under Section 401 of the
Internal Revenue Code, but is a trust described in Section
501(c)(18) of the Code. As a result, the Fund is covered by
certain parts of the Employee Retirement Income Security Act of
1974 ("ERISA"), but is exempt from other parts. In
particular, the Fund is exempt from coverage under Part 2 of Title
I of ERISA, which establishes participation and vesting
requirements for qualified plans. For that reason, the
benefits provided by the Fund are subject to change, including
increases and reductions.
|
