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10/03/02
New Benefit for IAM Retirees
IAM retirees may want to check a new benefit available through the union’s Community Services/Retirees Department. A Medicare supplemental insurance plan is available for union retirees, explained Maria Cordone, the department’s director. The plan is offered by Central States Health & Life Co. of Omaha. For additional information, visit www.e-insurancepartner.com/iamaw.

OVER 55,000 RETIREES AND BENEFICIARIES TO RECEIVE $20.00 PER MONTH INCREASE

ONCE AGAIN THE TRUSTEES HAVE BEEN ABLE TO IMPROVE BENEFITS WITH NO INCREASE IN THE NEGOTIATED CONTRIBUTION RATE.

FOR ACTIVE BENEFIT RECIPIENTS (PENSIONERS, BENEFICIARIES, AND SURVIVING SPOUSES) WITH EFFECTIVE DATES BEFORE JANUARY 1, 2001 THE $20.00 PER MONTH INCREASE WILL BE RETROACTIVE TO JANUARY 1, 1999 OR THEIR EFFECTIVE DATE OF PENSION, IF LATER.

THE INCREASE WILL BE INCLUDED BEGINNING WITH THEIR PENSION PAID JANUARY 1, 2001. FOR MOST RECIPIENTS THIS WILL MEAN A SURPRISE OF $480 COVERING THE LAST 24 MONTHS OF PAYMENTS (JANUARY 1999 THROUGH DECEMBER 2000)!

MOST PLAN IMPROVEMENTS ARE FOR ACTIVE EMPLOYEES WHO HAVE NOT RETIRED, BUT THE TRUSTEES NEVER FORGET THE PEOPLE WHO OFTEN INITIATED THE NATIONAL PENSION PLAN IN THEIR COLLECTIVE BARGAINING AGREEMENT. HOPEFULLY WE WILL ALL HAVE A CHANCE TO ENJOY OUR RETIREMENT WITH THE SECURITY OF THE NATIONAL PENSION PLAN. IT'S NICE TO KNOW THE TRUSTEES OF THE NATIONAL PENSION PLAN WILL CONTINUE TO LOOK OUT FOR US WHEN WE ARE NO LONGER WORKING. THIS IS THE 3RD SUCH INCREASE IN LESS THAN 10 YEARS.

THE IAM NATIONAL PENSION FUND, NATIONAL PENSION PLAN IS A DEFINED PENSION PLAN AND IS FULLY FUNDED. THIS MEANS THAT THE BENEFITS ARE GOING TO BE THERE WHEN YOU RETIRE. NO MATTER WHAT AGE YOU ARE NOW. 
TO OUR MEMBERS: IF YOU ARE INTERESTED IN THE IAM PENSION FUND, NATIONAL PENSION PLAN. CONTACT YOUR 
DIRECTING BUSINESS REPRESENTATIVE
 TO DISCUSS NEGOTIATING IT INTO YOUR CONTRACT.

IF YOUR NOT WORKING UNDER A COLLECTIVE BARGAINING AGREEMENT, COMPARE THE IAM PENSION WITH WHAT YOU HAVE THRU YOUR EMPLOYER NOW. ASK THESE SIX QUESTIONS. 

1. ARE THE BENEFIT AMOUNTS KNOWN AND GUARANTEED FOR LIFE? 
2. WHO MAKES THE CONTRIBUTION, EMPLOYEE OR EMPLOYER? 
3.WHO BEARS THE RISK? 
4. ARE BENEFITS INSURED? 
5. CAN BENEFITS BE INCREASED RETROACTIVELY? 
6. ARE BENEFITS RESERVED FOR RETIREMENT?

SOME FACTS ABOUT THE IAM PENSION PLAN:

1. Benefit amounts are known and guaranteed for life, no matter how the markets perform.
2. Contributions are made by employer only - employees pay nothing out of their wages.
3. The plan bears the risk.
4. Benefits are insured by the Pension Benefit Guaranty Corporation.
5. Benefits can be increased retroactively, as the National Pension Plan has done seven times since 1986.
6. Benefits are reserved for retirement, period.

COMPARE TO A DEFINED CONTRIBUTION SAVINGS PLAN:

1. Benefit amounts depend on fluctuations in the stock market, or on value of employer's stock. Accounts can run dry during retirement.
2.Contributions are usually made by employees, and employers may "match" a portion of total contributions, often in the employer's own stock.
3. Risk is entirely on employee.
4. Benefits are not insured.
5. Benefit increases, if any, apply only at time of change and going forward.
6. Accounts can be tapped for pre-retirement loans and cash-outs, endangering the employee's long-term security.

Comments or Suggestions? E-mail the Communications Officer
of Siouxland Lodge 1426 IAMAW
webmaster@iamawlodge1426.org