Issue 5, 2008

The IPF/IHF 2007 Annual Report
IPF/IHF Benefits Provide Security No Matter What the Weather May Bring

The worldwide financial turmoil that has been building during the last several years has created a personal financial crisis for a growing number of workers and retirees. Fortunately for BAC members and their families, they can rely on union-sponsored health and welfare and pension funds, plus a variety of other services to help weather this difficult period.

The 2007 Annual Report provides a status report on those programs sponsored by the IU, audited financial information about each IU benefit program, and advice and resources for avoiding financial pitfalls and coping with the cyclical nature of work.

As noted in the report, since its inception, IPF has worked steadily to secure and improve retirement benefits for BAC members and their families. While many Americans and Canadians saw their retirement security slip away with the sharp fluctuations in the stock market in 2007, BAC members with a defined pension through IPF had far less to worry about. During this period, IPF maintained a solid financial position and continued to offer current and future retirees and their loved ones a dependable source of retirement income. Why does having a defined pension plan, such as that offered by IPF matter?

The answer is simple: a defined benefit pension plan offers a level of income you can count on for as long as you live after retirement, and income for your spouse or dependent(s) after you die. In contrast, defined contribution plans, such as a 401(k) plan or an annuity, provide income only until the money runs out. The IPF Trustees support the use of defined contribution plans, such as the 401(k) and Annuity offered through the BAC SAVE Retirement Savings Plan, as a means to supplement – and not as the primary or sole source of – a member’s retirement income. IPF ensures the fund’s financial health by investing in products that:

• Produce competitive returns;
• Create job opportunities through investments in union-only construction projects; and
• Guarantee participants’ interests are taken into consideration in the corporate boardrooms of the companies in which their monies are invested.

On the health care side, despite sky-rocketing health care costs, the International Health Fund has been able to continue to provide quality coverage to working members, as well as develop new resources to help retirees fill the “benefit gaps” in their coverage. One of its proudest accomplishments is the savings realized through the Prescription Drug Purchasing Coalition for IHF, participating Local funds, and BAC members and their families.

In addition to the traditional benefits offered through IPF and IHF, BAC’s Member Assistance Program and the Union Plus Benefit Program offer members advice, access to resources, and discounted services to deal with everything from coping with depression to financial planning to avoiding foreclosure – or on a more positive note – buying a new car or planning a vacation.

Watch your mailbox for a copy of the 2007 Annual Report and take some time to familiarize yourself with the services and benefits available to you and your family as a BAC member.