The BAC SAVE Retirement Savings Plan: Savings Made Simple

The BAC SAVE Retirement Savings Plan (RSP) simplifies financial security for participating BAC members. Although the plan is designed to help members achieve their long-term retirement savings goals, it also includes hardship provisions to protect members in times of need. Despite continued economic and investment market instability, the RSP performed solidly in 2010, generating a 4.8% rate of return. This return, coupled with the plan’s low administrative costs that have remained under 1% since it was established in 1990, provided value and stability to participants in 2010. 

RSP Plan assets total more than $92 million and cover 16,410 participants in Alabama, Connecticut, Delaware, New Jersey, Montana, West Virginia, Ohio, New York, Missouri, Michigan, North Dakota, Oklahoma, Pennsylvania, and Texas. Members working under the ICE Agreement are also covered by the RSP. The average participant account balance is more than $5,342 with 325 participants having accounts in excess of $50,000 and 64 participants with balances greater than $100,000. The average Local RSP contribution rate is $2.26.

The RSP allows members to build retirement savings by directly investing into an annuity program designed with their needs in mind. Despite recent upheavals in financial markets, RSP participants have enjoyed an average annual yield of 5.24% during the plan’s 30-year history.  The plan’s investment portfolio consists of 70% fixed income investments, of which 10% is invested in real estate funds (including the AFL-CIO Housing Investment Trust and Amalgamated Bank Longview Construction Loan Fund) and 30% in equities invested in the Trowel Trades S&P 500 Index Fund. Participants may access their balances for retirement, disability, and financial hardship. Survivor provisions also extend the plan’s financial security to loved ones.

Review Your Statement

The 2010 RSP Annual Statement, mailed in September 2011, shows the dollar amount of investment earnings, along with the amount of contributions submitted by each member’s employer.  Opening and closing account balances and any withdrawals that were made during the year are also shown. An enrollment card has been enclosed with the member’s statement if our records do not indicate an RSP beneficiary. 

Please note that beneficiary designations for the International Pension Fund (IPF) do not apply to the RSP.  In order to protect the identity and privacy of Plan members, once again, the 2010 statements only include the last four digits of the member’s social security number. The International Pension Fund urges RSP participants to review their statements for accuracy, including all personal information, hours and beneficiary data.

Participation

Participation in the International Pension Fund and in the RSP is collectively bargained by a member’s Local Union or ADC. Once an agreement stipulating RSP participation is reached, every member receives the same hourly contribution to his or her RSP account from their employer. If your Local Union/ADC does not offer the RSP or a similar program known as a defined contribution plan, please contact your Local.  For more information about the BAC SAVE RSP, call 1-888-880-8222 (toll free) or visit IPF online at www.ipfweb.org.