Fund History

Building Retirement Security for over 50 Years

In 2010, the IAM National Pension Fund celebrated its 50th year of operation. The Fund continues to grow and thrive, in spite of the fact that thousands of single-employer company pension plans across the country have been terminated or turned over to the federal government.

View the 50th anniversary issue of the IAMNPF magazine (PDF)

In 1960, the Fund began with one employer contributing 10 cents an hour per employee. In 2013, it has over 1,650 contributing employer locations. The current maximum contribution rate is $28.50 per hour.

Pension Plan benefits are paid to retired participants and their beneficiaries through employer contributions and investment earnings on the Fund's assets. Growing employer contributions and solid investment performance have increased the Fund's assets from $42,600 in 1960, to $1.08 billion in 1985, to approximately $10.7 billion as of December 31, 2015.

This growth has allowed the Fund to pay an increasing level of benefits to retired members: from $18,000 in 1960, to $21 million in 1978, to $170 million in 1998, to more than $600 million in 2015. The Fund has paid over $4 billion dollars in benefits to date.

These are measures of the Fund's growth and of its stability and security for members now and in the future.

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Frequently Asked Question (FAQ)

How many participants are in the National Pension Plan?

The plan currently covers more than 100,000 active participants.

Can a company of any size join the National Pension Plan?

Yes. The plan covers members from companies of any size, from one member to thousands of members.

What is the average employer contribution rate?

The current average contribution rate is $1.95 per hour.

Why is the National Pension Plan so valuable?

For four good reasons: 1) contributions are made by the employer and not the employee; 2) since the benefits are guaranteed by the PBGC, there is limited risk to you when you participate in the plan; 3) the benefits are solely for retirement and cannot be used for any other purpose; and 4) benefit amounts are known and are paid for your lifetime.

When was the Fund started?

The Fund was established in 1960.

Who manages the Fund's assets?

The Fund's assets are managed by professional investment managers who follow the investment objectives set by the Fund's investment committee.

Who oversees the Fund's operations?

The joint Board of Trustees is responsible for overseeing the Fund's operations and performance. The Executive Director oversees its day-to-day operations.

What does the Fund do with earnings on investments?

The Fund is a not-for-profit organization. All investment earnings are used to provide benefits to pensioners and beneficiaries, and to cover the cost of running the Fund.

Is the Fund financially sound?

Yes. Unlike many single-employer or company pension plans, the National Pension Plan is well funded and financially sound. View copies of the plan's Annual Funding Notice here.

What does the Fund's Executive Director do?

The Executive Director is responsible for the day-to-day operations of the Fund and all the benefits and services provided by the Fund.

Who does the Executive Director work for?

The Executive Director works for the benefit of all plan participants and beneficiaries and reports directly to the Fund's joint Board of Trustees.

How is the Executive Director selected?

The Executive Director is selected by the Board of Trustees based on his or her professional experience and credentials.

What states have the greatest number of contributing employers to the Fund?

They are, in order: 1) Illinois; 2) California; 3) Ohio.

Does the National Pension Plan have contributing employers in every state?

There are only a few states that do not have contributing employers.

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