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 $1.85 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 Fund 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 Director do?
The Fund 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 Fund Director work for?
The Fund 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 Fund Director selected?
The Fund 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.
What if I get divorced or legally separated?
- If you get divorced or legally separated after your plan entry date, you may need to update your plan beneficiary information.
- Make sure that any Qualified Domestic Relation Orders are forwarded to the Fund Office for approval.
- When you apply for your pension benefits, send the Fund Office a copy of your divorce certificate with related agreements or legal separation if you have not previously submitted a Qualified Domestic Relations Order.