International Pension Fund & International Health Fund

The International Pension Fund is continuously growing with 176 participating locals in the U.S. and Canada, including 39 tile locals and 10 OP&CMIA local unions. Local 5 Ohio participated May 1, 2005. BAC Local 11 California participated November 1, 2005. Local 8 Ohio participated June 1, 2008.

Currently, 92% of BAC members are in locals participating in the International Pension Fund. The assets of the U.S. Fund total $1,175,740,333.00 as of June 30, 2010 from contributions and investments. At this time, $157,013,582.00 of assets is invested to finance union construction. The current assets of the International Retirement Savings Plan amount to $85,317,966.00. BAC Save 401(k) Plan Assets total $2,315,160.00.

The average contribution rate is $1.48. The Fund currently is disbursing $11,233,137.00 monthly benefits to 23,675 pensioners and beneficiaries. Currently, 20,635 pensioners have elected to have their benefit paid via electronic fund wire transfer. The average monthly benefit is $471.00. The highest monthly benefit being paid is $5,015.00. The highest benefits reflect merged local Pension Plans where the former Plan benefit is combined with the International Pension Fund benefit. By the end of 2009, more than $1,704,000,000.00 had been paid to retired tradesmen and their beneficiaries.

A feature of the Plan which is particularly attractive is the granting of up to 24 years of past service credit to new participating groups. The Board of Trustees amended the Plan to lower the age at which full pension is payable from 62 to 60. The 1.5 credit “cap” on yearly future service credits per year was removed. Joint and survivor factors for disability pensions were improved. An orphans pension is payable when a participant or pensioner dies and a surviving spouse pension is not payable. The contribution rate/benefit formula was increased by 10 percent effective July 1, 2000 and by 5 percent effective November 1, 2001. Effective April 1, 2009, the accrual rate was decreased. For each $0.10 contribution to IPF there will be an accrual of $1.40 per month for each year (1,500 hours) of future service credit. For example, if an IPF participating Local was at a contribution rate of $1.50, the prior accrual was $32.34 per year of service. Going forward, the accrual for employment after April 1, 2009 at the Local’s $1.50 contribution rate will be $21.00 ($1.40 x 15) per year of service earned.

All collective bargaining agreements negotiated on or after April 1, 2009, or current agreements with increases to be allocated on or after April 1, 2009, must include a 15% increase in the IPF contribution rate effective from the time the IPF rate in effect on March 31, 2009 expires. The 15% increase will not be recognized for purposes of benefit accrual but will be used solely to increase the funding of the IPF to help ensure compliance with the funding requirements under the Pension Protection Act. The IPF rates negotiated in excess of the required 15% increase in the IPF contribution rate shall be divided as follows: 13% of the increase shall be used to increase funding and 87% shall be credited at the $1.40 per $0.10 accrual rate noted above. For any rate negotiated or allocated on or after April 1, 2009 that is less than the required 15% increase in the IPF contribution rate, an accrual rate of $0.70 per month of pension for each year of service for each $0.10 of the recognized contribution rate shall apply, effective with the date of the collective bargaining agreement, rather than the $1.40 rate noted above.

Last updated: September 2010