The ILPF welcomes participation by all Teamster locals located in the United States. Individual members wanting to participate in the ILPF must belong to an ILPF participating local.
It’s easy for a Teamster local to become an ILPF participating local. All it takes is a vote of the local’s membership, or a single bargaining unit within the local, and approval by the ILPF’s Trustees. In locals that represent members in multiple bargaining units and with the consent of the local's leadership, individual bargaining units may vote to participate in the ILPF, independent of the votes of the other units within the local. If a majority of a local (or bargaining unit within a local) votes for ILPF participation, the decision applies to all members of the group.
The local’s membership (or a bargaining unit's membership within the local) also votes to establish the particular contribution level that will apply to its members. Contribution levels currently range from a low of $5.00 per member per week to a high of 10 percent of each member’s gross pay. The level selected depends on the needs of the local’s membership. The more that members contribute, the faster they vest and the higher their retirement benefits will be. The maximum yearly contribution for each participant is set by Federal tax law and is currently $7,000.
For example, if a majority of members in Local A vote to contribute 5 percent of gross pay and a majority of members in Local B's Bargaining Unit 3 vote to contribute $5/member/week, then all members of Local A contribute 5 percent and all members of Local B's Bargaining Unit 3 contribute $5/week. Nothing is set in stone, however, as groups have the flexibility to change their contribution levels by a membership vote.
The final two steps are for the local union to: 1) adopt an amendment to its bylaws requiring all of its members (or all members of a particular bargaining unit), as an obligation of membership in the union, to become participants in the ILPF and make the required level of contributions; and 2) arrange for member contributions to be sent to the ILPF. Since the contributions come out of members' pay and are not funded in any degree by the employer, most employers agree to automatically deduct the contributions from members’ pay and forward them to the Fund.
If your local already has a different pension plan, there’s nothing standing in the way of also participating in the ILPF. In fact, many of the locals in the ILPF also have other pensions to which their employers contribute (both defined benefit and/or defined contribution plans). These members recognize the value of the additional retirement security they can achieve through the Inter-Local Pension Fund.
Lastly, if an IBT member who is an ILPF participant leaves his or her job, s/he can continue to participate in the Fund as long as s/he stays employed in the industry in which his/her local participates and remains a member in good standing with the local union.
The staff and Trustees of the ILPF are available to speak with IBT local leaders and members about the advantages of ILPF participation. Please contact Larry Mitchell for more information, 630-752-8400.
ILPF participants from Teamsters Local 299 in New Boston, MI, on the job at Automotive Logistics Co.