Teamster Pension Information for 2008!

By: The Committee for Change

The Committee for Change is pleased to announce that the Western Conference of Teamsters Pension Trust has increased the benefit percentage to 2.00% for covered work performed during the calendar year of 2008. This will provide a higher accrual rate for participating members. The plan had previously increased in 2007 to 1.65% from the 2006 benefit percentage of 1.20%.

These benefit increases are made possible by the improved financial performance of the pension plan in recent years, as determined by the funding policy of the Trust.

The Plan Trustees, comprised of fourteen union members and fourteen employer members, provide a balanced management of the plan that operates solely in the interest of participants and beneficiaries in compliance with the Employee Retirement Income Security Act (ERISA). 

Here are some highlights of the Western Conference of Teamsters Pension Trust Plan:

• The careful management of the plan’s investments has resulted in a steady increase in the plan’s assets, which now stand at nearly $33 billion;
• Participants can earn up to 10 years past service credits and 5 years of contributed credits after only 5 years of plan participation. This is the equivalent of 15  years’ credit for only 5;
• The fund also offers accelerated vesting for older participants and retirement benefits as early as age 55 (regular full retirement at age 62 with reductions for earlier retirement);
• The fund is a multi-employer fund, which provides stability to participants by ensuring the fund will remain intact if one employer files for bankruptcy. This is extremely important for mechanics working in the volatile airline industry;
• The fund is 100 percent employer funded;
• Participation in the plan will not impact your 401(k).

To get us into this plan, it will have to be negotiated and membership acceptance will be determined by a vote. Negotiating for this plan can be accomplished when we enter Section 6 bargaining, or by separate pension investment discussions allowed per Letter of Agreement 05-03, paragraph 5c of our contract.

Most of our members on the Committee for Change have had the opportunity to see a WCTPT presentation and have a Q & A session with the pension experts. We learned that the plan would be immensely valuable for us, and we unanimously give it our approval. In January, a national call with Western Conference Pension representatives will be held. You will soon receive more information on the call, which will feature a presentation on the plan, as well as a Q&A session.

The option to enter this plan is only available to Teamster members, so when the time comes for the representation vote—Vote Teamsters!

For more information please go to the Western Conference of Teamsters Pension Trust web site: www.wctpension.org.