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