Determination · Commitment · Perseverance

Published in September 2010, the most recent Annual Report of the International Pension Fund (IPF) and International Health Fund (IHF) provides participants, pensioners and their beneficiaries with audited financial information about each IU benefit program. Equally important, the Report highlights the steps IPF and IHF Trustees have taken to preserve benefits and keep the Funds strong in the midst of the most challenging economic and regulatory environment in either fund’s history.

Preserve and Strengthen

For IPF, that environment includes a struggling construction economy with high unemployment that’s led to two years of plummeting contributions, plus increasing regulatory complexity under the Pension Protection Act. Despite these challenges, U.S. Trustees have worked conscientiously to safeguard the benefits and retirement security of IPF participants and their beneficiaries.

One such example is the introduction of a 75% Husband-and-Wife payment option, which provides a 75% benefit to a deceased participant’s surviving spouse for the remainder of the spouse’s life. Pensioners who first began to receive a Pension benefit on or after January 1, 2008 may contact the Fund office regarding their eligibility to change their 50% Husband-and-Wife payment option to the 75% option. Otherwise a pensioner may only change the form of payment up to 90 days after receiving the initial benefit payment.

IPF also remains committed to members serving in the armed forces by calculating benefits for those engaged in Qualified Military Service at the contribution rate in effect at the time of their service. Effective January 1, 2009, IPF extended this provision to the eligible survivors of those who die while performing qualified military service. These benefits are paid as an administrative expense by the IPF (U.S.) and/or Reitrement Savings Plan (RSP).

The IPF-administered BAC SAVE Annuity/401(k) Retirement Savings Plan, which serves both active and retired members, has seen an understandable increase in financial hardship and inactive withdrawals. While BAC and IPF have long recognized the important role of personal savings in supplementing an individual’s retirement security, in light of the severe economic pressures facing members in recent months, the BAC SAVE Annuity/401(k) Retirement Savings Plan has been able to assist participants in financial emergencies.

IPF Funding Improvement Plan Adopted

The Pension Protection Act of 2006 requires pension plans that are in endangered status to adopt a ten-year Funding Improvement Plan (FIP) aimed at restoring the financial health of the plan. To this end, IPF adopted an FIP as of December 2010. The FIP outlines a path to improve funding levels over time by formulating adjusted accrual structures and increases in current contribution levels. While no adjustment in benefit accruals or contributions is required in 2011, the FIP will be reviewed on an annual basis and improved as conditions permit.

IHF and Health Care

Realizing the devastating effects of widespread reductions in available work hours, IHF eased eligibility requirements. This change reduces the maintenance, initiation, and reinstatement requirements to either a minimum of 200 hours per calendar quarter, 500 hours in two consecutive calendar quarters, or a minimum of 1,200 hours worked in four consecutive calendar quarters. This temporary change to the IHF U.S. Plan protects participants by reducing work hour requirements by 19.7%.

IHF has also continued to work vigorously to improve the quality and value of the benefits it delivers by forging coalitions with service providers and other health plans. These endeavors have led to the development of both the Health Care Purchasing Coalition and the BAC Prescription Drug Coalition that allow the IHF and participating local health plans to coordinate strategic purchasing arrangements and build economies of scale that translate into cost reduction and improved services.

Stay Informed

Participants are encouraged to review the Annual Report to better familiarize themselves with the services and benefits available through the International’s programs.

If you have questions concerning the Report or about IPF, IHF or the BAC SAVE program, please contact:

David F. Stupar
Executive Director
International Pension Fund
dstupar@ipfweb.org
1-888-880-8222