03 Ryen, a high school graduate who recently completed his apprenticeship with a lead - ing engineering company, is now a full-time machinist eligible to receive retirement benefits that his union, the International Asso - ciation of Machinists and Aerospace Workers, and employer have negotiated especially for machinists like him under a collective bar - gaining agreement (“CBA”). The CBA includes benefits options available under the IAM National Pension Fund and the IAM National 401(k) Fund. With Ryen just starting on his retirement journey, understanding the ben - efit options available under each of the Funds allows him to set his retirement savings goals early and watch them grow over the course of his career. Both the Pension Fund and the 401(k) Fund allow for money to be set aside for retire - ment on a tax-advantaged basis, meaning that contributions and earnings to these Funds are allowed to grow tax-free until they are withdrawn, as governed by federal regulations. The Pension Fund is a multiem - ployer defined benefit plan funded entirely by employer contributions negotiated under a CBA, plus investment income. Ryen is not allowed to make any contributions to the Pen - sion Fund and is not responsible for making any decisions about how those employer con - tributions are invested. As a participant in the Pension Fund, once Ryen meets the require - ments for a pension, when he retires, he will be eligible to receive a retirement benefit, typi - cally paid monthly. By contrast, the 401(k) Fund is a multiemployer defined contribution plan funded by both employer and employee contributions. Ryen may elect to have con - tributions deducted from his paycheck on a pre-tax and after-tax basis, as well as choose where those contributions are invested from among several investment options the 401(k) Fund makes available. Along with Social Security and personal savings — such as through the 401(k) Fund — the Pension Fund offers Ryen a valuable retirement income source for years to come. AN EARLY STA RT: RYEN’S STORY