4 \\ About the National Pension Fund ABOUT THE NATIONAL PENSION FUND The IAM National Pension Fund was established to provide retire- ment benefits for employees who are represented for the purposes of collective bargaining by a lodge chartered by the International Association of Machinists and Aerospace Workers (IAM). It is a multiemployer defined benefit plan. YOU’RE IN GOOD COMPANY As a participant in the National Pension Fund, you’re in good com- pany. At the time we are publishing this SPD, more than 180,000 participants are earning pension benefits or are qualified to re- ceive pensions from the National Pension Fund. Currently, benefits totaling more than $950,000,000 are being paid each year to over 116,000 retirees and beneficiaries. More than 1,200 employer lo- cations nationwide contribute to the National Pension Fund. As a participant of the Fund, you can look forward to receiving a ben- efit at retirement once you meet the requirements for a pension. Along with Social Security and personal savings — such as through the IAM National 401(k) Fund — the National Pension Fund can pro- vide you with a solid financial foundation at retirement. You do not make any contributions to the IAM National Pension Fund, and you do not bear the risk of its investments. The National Pension Fund is financed entirely by employer contributions nego- tiated during collective bargaining, plus investment income. SOME HIGHLIGHTS OF THE NATIONAL PENSION FUND › You earn a non-forfeitable right to a pension from the Fund — that is, you become vested — when you have five years of vesting service or five years of future service credit. › Years of vesting service, including predecessor plan service with a prior qualified plan, will in most cases count in determining eligibility for pensions from the Plan. › You’re eligible to receive an early retirement pension at age 55 with five years of credited service or a vested de- ferred pension at age 55 with five years of vesting service. › A portion of your pension may be unreduced for early com- mencement if you retire at age 62 or later with 20 years of service and are covered under the Default Schedule, or if you are a “Grandfathered Participant” not subject to any schedule. › With the 30 and Out pension, you can retire at any age if you have at least 30 years of credited service. A portion of your pension may be unreduced for early commencement if you are covered under the Default Schedule, or you are a “Grandfathered Participant.” › You’re eligible for a normal pension at age 65 if you have five years of credited service or an unreduced vested deferred pension with five years of vesting service. › Portability allows you to add to your vested pension ben- efits and continue to earn additional benefits when you change employment and work in covered employment for another contributing employer in the Plan. › The Fund pays you monthly pension benefits for your life- time. Certain forms of payment available under the Fund provide benefits to your spouse or beneficiary as well. › If you are under age 65 and become totally and perma- nently disabled while working, or within 12 months of leaving covered employment, you may be eligible for a disability pension. › The Fund provides preretirement death benefits for eligible participants which are payable to survivors, if you die before you retire. However, if you are covered by the Default Schedule only your surviving spouse is eligible for a preretirement death benefit. See the Table of Contents on pages 2 and 3, respectively, to find more information on these and other details of the National Pension Fund, including eligibility requirements. Fund Administration The Pension Fund is administered by a joint Board of Trustees consist- ing of equal representation by the IAM and the contributing employ- ers. The Trustees maintain an administrative office (the “Fund Office”), staffed by an Executive Director whom they hire and other office staff, to manage the Fund on a day-to-day basis. The names of the Trustees and Executive Director are shown on page 30. Prior Plans On January 1, 1991, prior Plans A, B and C were merged and be- came the defined benefit plan of the IAM National Pension Fund. Plan A, A Benefits was formerly called the IAM Labor Management Pension Plan. Plan A, C Benefits was formerly known as the CMTA — IAM Pension Plan and Trust. Plan B was the former IAM Mid-East- ern Pension Fund. For purposes of this booklet, we will refer to Plan A, A Benefits, Plan A, C Benefits and Plan B as prior plans. Prior Plan SPD: You May Still Need It This SPD reflects the merged plan from January 1, 1991 forward. For earlier periods, you may still need your SPD from your prior plan. In 1992, everyone affected by the merger was sent the appli- cable prior plan SPD. The Fund Office will send you another copy of the applicable final prior plan SPD if you request one. Annual Statements Each year, the Fund sends annual statements to everyone with hours recorded for the previous year. Your annual statement shows your hours earned and future service credit for that year, based on