IUOE CENTRAL PENSION FUND Local 150 Plan to

IUOE CENTRAL PENSION FUND Local 150 Plan to Offer Second Pension to Public Sector Employees

Why Now? Hedge our bet with IMRF Recent two tier system Legislation introduced to take away 13 th check Continued attacks on public employee pensions Bruce Rauner

Quick Facts About CPF What Benefits Are Paid By CPF: Normal Retirement Benefit: Payable at normal retirement age (usually 65). It is a monthly benefit for life. Early Retirement Benefit: Payable as early as age 55 with 10 years of service. It is equal to the Normal Retirement benefit reduced by 3% per year for years prior to age 65. Special Early Retirement Benefit: Payable as early as age 55 with 25 years of service. It is reduced by 3% per year for years prior to age 62.

Quick Facts About CPF Special Retirement Benefit: Payable as early as age 62 with 25 years of credited service. It is equal to the Normal Retirement benefit without reduction. Post-Retirement Surviving Spouse Benefit: Payable to the surviving spouse of a deceased retiree for life, at optional levels of 50%, 66 -2/3%, 75%, or 100% of what the retiree was receiving. It is equal to the Normal Retirement Benefit with reductions because the benefit will be paid over two lifetimes.

Quick Facts About CPF Pre-Retirement Surviving Spouse Benefit: Payable at any age to the surviving spouse of a vested participant who dies before retirement. It is a lifetime benefit equal to 50% of the Normal Retirement Benefit. This does not apply if the Participant and their spouse have been married for less than one year. Disability Benefit: Payable under age 55 with 15 years of service. It is equal to the Early Retirement Benefit at age 55.

CPF Highlights The Central Pension Fund has $14. 7 billion in assets. CPF has over 6, 700 contributing employers. CPF has over 130, 000 active participants and pays benefits to over 67, 000 recipients and beneficiaries each month. CPF is the 3 rd largest multi-employer defined benefit pension fund in the United States and is over 96% funded.

CPF Vesting 5 years for vesting 100%. 10 years for vesting eligibility of early retirement payable anytime after age 55. Vesting Past Service – Once you report for 1000 hours, the CPF will grant you past service based upon length of service or membership in good standing with the Union. 15 years grants you eligibility for early retirement, normal retirement and disability.

Running Some Numbers $1. 00 Per Hour for 10 Years = $20, 800 in Contributions At current multiplier, benefit is $260 a month. Assuming he collects for 10 years, he collected $31, 200. Assuming he collects for 20 years, he collected $62, 400.

Running Some Numbers $1. 00 Per Hour for 20 Years = $41, 600 in Contributions At current multiplier, benefit is $520 a month. Assuming he collects for 10 years, he collected $62, 400. Assuming he collects for 20 years, he collected $124, 800.

Running Some Numbers 50 Cents Per Hour with 25 Cents Per Hour Per Year Increases for 10 Years = $33, 800 in Contributions At current multiplier, benefit is $422. 50 a month. Assuming he collects for 10 years, he collected $50, 700. Assuming he collects for 20 years, he collected $101, 400.

Running Some Numbers 50 Cents Per Hour with 25 Cents Per Hour Per Year Increases for 20 Years = $119, 600 in Contributions At current multiplier, benefit is $1495 a month. Assuming he collects for 10 years, he collected $179, 400. Assuming he collects for 20 years, he collected $358, 800.