Contribution Rates

The National Pension Plan is financed entirely by employer contributions negotiated during collective bargaining, plus investment earnings from the Fund's assets. Participants do not contribute to the plan, and separate accounts are not maintained for participants.

The plan has two main contribution rate schedules that show the amount of Future Service Credit earned at different employer contribution rates. Basically, a given employer contribution rate delivers a monthly pension benefit amount for each year of credited service at that rate.

Schedule A (PDF)

The rates outlined under Schedule A generally apply to credit earned with contributing employers who first contributed to the plan on the participant's behalf before April 1, 2003.

Under the plan changes announced in December 2010, Schedule A will be replaced with Schedule B for all active participants on the first day of the month following the ratification of the collective bargaining agreement that replaces the agreement in effect on January 1, 2011. The latest date that Schedule B will take effect in any instance is January 1, 2014.

This change is prospective only. Benefit amounts previously earned under Schedule A will remain the same.

Schedule B (PDF)

The rates outlined under Schedule B generally apply to credit earned with contributing employers who first contributed to the plan on the participant's behalf on or after April 1, 2003. However, for a limited number of groups, benefits are based on a custom schedule derived from Schedule B.

Schedule B will be in place for all active participants on the first day of the month following the ratification of the collective bargaining agreement that replaces the agreement in effect on January 1, 2011. The latest date that Schedule B will take effect in any instance is January 1, 2014.

View contribution rates by contributing employers »

Note: A limited number of employer groups have special benefit schedules derived from Schedule A. These groups will move to Schedule B, with the current reduction under Schedule A continuing on the same basis under Schedule B, under the timeframes outlined above. Details are provided here (204(h) Exhibit 3 (PDF)).

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James Heyn—Minnesota Rubber
Watertown, SD
Plan Participant

Frequently Asked Question (FAQ)

Does any portion of union dues go toward this plan?

No. Negotiated employer contributions fund the plan.

How is the plan funded?

The plan is funded through employer contributions and earnings on investments.

How can I find the current table of contribution rates and benefit values?

You can view the contribution rate tables here.

What is the current range of employer contribution rates?

Contribution rates range from $0.10 to $28.50 per hour.

What is the average employer contribution rate?

The current average contribution rate is $1.95 per hour.

How do I negotiate a future contribution increase under my collective bargaining agreement?

For help in determining how best to negotiate contribution rate increases, contact your IAM representative.

Can I make contributions to the plan on my own behalf?

The IAM National Pension Fund is a multi-employer non-contributory Trust Fund. Only employer contributions made in accordance with the IAM Collective Bargaining Agreement or Special Class Participation Agreement with the Trustees may be accepted by the Fund. All employer contributions and Fund assets, from whatever source, are pooled and used to pay pension benefits.

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