IAM National Pension Fund FAQ

If you change your address you can follow the steps:

1. Update your address and other contact information with the Fund Office, and be sure to update your information with your employer, as well.
2. If you are receiving your pension benefit from the Fund, you may change your address by sending written notification (Change of Address Form for Benefit Recipients available here (PDF), to the Fund Office or by calling. If you are a benefit recipient and you call, additional information (including written confirmation with your signature) may be required to make such a change.
3. All other participants may call, write, or update their address online.

If you get married after your plan entry date, you may need to update your plan beneficiary information. When you apply for your pension benefits, you will need to send the Fund Office official copies of your marriage certificate and your spouse's birth certificate if electing 50%, 75% or 100% Joint and Survivor Benefit.

If you get divorced or legally separated after your plan entry date, you may need to update your plan beneficiary information. Make sure that any Qualified Domestic Relation Orders are forwarded to the Fund Office for approval. When you apply for your pension benefits, send the Fund Office a copy of your divorce certificate with related agreements or legal separation if you have not previously submitted a Qualified Domestic Relations Order.

First, you will need to decide on your retirement effective date. In general, your Pension Effective Date (view explainer video) will be the first of the month following this date. Then, follow these steps:

• Complete your application online (login required) or request a pension application from the Fund Office up to 180 days before your retirement effective date.
• Select your pension payment options when completing your application.
• Sign where required and have signature notarized if required.
• Provide official copies of all documents requested including acceptable proof of age, marriage certificate, divorce decree and related agreements, as well as all name change documents, if applicable.
• Sign up for direct deposit for your pension benefit payments. You can sign up for direct deposit online or by returning an Authorization for Automatic Deposits form (PDF) to the Fund Office.

If you become disabled, you may be eligible to receive a disability pension. The requirements are outlined in the plan's Summary Plan Description on page 17.

View SPD in English (PDF)

You may need to take these steps to apply for a disability pension:

• Apply for disability benefits from the Social Security Administration.
• Submit an application for disability pension; you may complete an application on-line (log-in required) or request a hard copy application from the Fund Office at 800-424-9608.
• Provide a copy of your disability notification letter from the Social Security Administration. (Note: If a determination is still pending from the Social Security Administration do not hold your application; submit it as soon as possible.

Keep the Fund notified of any change in your address on file with the Fund Office, as necessary. Apply for your pension when you are ready to retire if you are vested and meet the eligibility requirements.

A person who is serving a period of qualified military service will be treated as if working in covered employment, to the extent required by the Uniformed Services Employment and Reemployment Rights Act (USERRA).

You may need to take these actions while entering or returning from active military duty:

• Check your reemployment rights and plan eligibility criteria under USERRA.

• Submit a copy of your military induction/separation orders (Form DD-214) to the Fund Office when you return to covered employment after your discharge from military service.

If you die as a vested participant before going into pay status, a range of death benefits may be available to your beneficiary(ies) or surviving spouse. Refer to the National Pension Plan Summary Plan Description for more information about preretirement benefits.

View SPD in English (PDF)

Your beneficiary(ies) will need to take these steps to apply for death benefits if you die prior to going into pay status under the plan:

• Contact the Fund to report a death and request a preretirement death application.
• Provide a copy of your death certificate to the Fund Office.
• Provide other documentation (e.g., marriage certificate, divorce decree or birth certificates), as requested by the Fund Office.

The personal data shown here comes from the National Pension Plan's recordkeeping system. It is the basic data needed to calculate plan benefits.

You should contact the IAM National Pension Fund Office about any incorrect data. Note: The Fund Office may require verification before making your change requests.

The IAM National Pension Fund is a separate entity from the IAMAW Union. While the National Pension Plan is funded by contributing employers, it was created for the sole benefit of IAM members who have negotiated the plan into their collective bargaining agreements.

No. Companies with participating IAM members can include other collectively bargained and certain non-union or special-class employees in the plan.

No. Negotiated employer contributions fund the plan.

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

The National Pension Plan is a joint labor-management multiemployer pension plan. It is legally required to have representation by both IAM leaders and contributing employers.

If you are a participant of the National Pension Plan, and you go to work for another employer who also contributes to the National Pension Plan, you continue to accrue benefits under the plan.

The plan currently covers more than 100,000 active participants.

Yes. The plan covers members from companies of any size, from one member to thousands of members.

You can contact the IAM National Pension Fund Office directly to get more information about the plan.

Contact your IAM representative or the IAM National Pension Fund for help in getting the National Pension Plan by negotiating it into your collective bargaining agreement.

Union Trustees are selected by the IAM; Employer Trustees are selected by the existing Employer Trustees.

The Board of Trustees is responsible for setting the Fund's objectives, monitoring its investments, and determining eligibility for benefits.

Multi-employer joint labor-management pension plans are required to have an equal number of Trustees from labor or the union, and management or the employers. The reason for this is to ensure that both sides are fairly represented and that participants are always the primary focus of the Fund.

The Executive Director is responsible for the day-to-day operations of the Fund and all the benefits and services provided by the Fund.

The Executive Director works for the benefit of all plan participants and beneficiaries and reports directly to the Fund's joint Board of Trustees.

The Executive Director is selected by the Board of Trustees based on his or her professional experience and credentials.

In general, pension checks are mailed weekly or on the last business day of the month for the 1st of the next month. You may also view your payment information to verify when your check was mailed (login required).

Read The Rules Pertaining to Pensioner Employment by clicking here,  then download and return the Request for Ruling on Employment Form (click here) to the Fund Office. You can also request the form by email (contact@iamnpf.org) or by calling the Fund Office at 800-424-9608 ext. 277. Once the Fund Office receives the completed form, a decision will be made, and you will be notified about that decision by mail.

If you don't receive your check by the 10th of the month, you may send an email to  contact@iamnpf.org or call the Fund Office at 800-424-9608 ext. 277. Ask to speak with a representative from the Checks Department. Provided you are not changing your address, we will place a stop payment on the check and replace it as soon as possible.

To set up direct deposit, fill out the online request form (login required).  (After logging in, select Direct Deposit from the Benefit Recipient menu. You will be required to create a user name and password if this is your first time logging in or you have not logged in since May 3, 2012.) Or, download and return the Authorization for Automated Deposit Form (PDF) to the Fund Office. You can also request the form by email (contact@iamnpf.org ) or by calling the Fund Office at 800-424-9608 ext. 277. Once you have completed the form, return it to the Fund Office with a voided check from the account to which you wish to have your payment deposited.

It may take at least two months after we receive your completed form to start your direct deposit. You will receive your benefit payment by mail during this time; you will be notified when your direct deposit will begin.

All deposits are credited to your account no later than the first business day of the month.

You may change your address by sending written notification to the Fund Office or by calling the Fund Office. If you call, certain additional information may be needed (including written confirmation with your signature) to make such a change.

You may report a death by sending an email to  contact@iamnpf.org, by letter or by calling the Fund Office at 800-424-9608 ext. 277. We need the deceased pensioner's name, Social Security number and death certificate, along with the name, address, and phone number of a contact person. Please also advise us if there is a surviving spouse.

You may complete this form online (login required) to indicate the correct amount of federal income tax to withhold from your pension benefit payments (login to your personal information required).

As an alternative, you may download and return Form W-4P (PDF) to the Fund Office. You can also request the form by email ( contact@iamnpf.org) or by calling the Fund Office at 800-424-9608 ext. 277. The Fund Office can only withhold Federal income taxes. We do not withhold state and/or local income taxes.

If you are not yet receiving pension benefits, you may download and return the Beneficiary Designation Form (PDF)  to the Fund Office. You can also request the form by email ( contact@iamnpf.org) or by calling the Fund Office at 800-424-9608 and asking to be connected to the Pension Department.

If you are receiving pension benefits and you want to change your beneficiaries, you must do so in writing. You can request the Beneficiary Designation Form for Benefit Recipients from the Fund Office by email (checks@iamnpf.org) or by calling 800-424-9608 ext. 277.

To find out the status of your pension benefit application, call the Fund Office at 800-424-9608 and ask to be connected to the Pension Department. You may speak directly to the Fund Office employee assigned to handle your application. (You were provided with the name and extension of your contact person shortly after your application was received.) He or she can update you on the status. If your contact person is unavailable, feel free to speak with any available employee in the Pension Department.

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

The current average contribution rate is $1.95 per hour.

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

Yes. If you pass away, your spouse or your beneficiary(ies) may be eligible for death benefits under the terms of the plan. Also, If you become totally and permanently disabled before normal retirement age, you may be entitled to a Disability Pension.

The plan offers a 50%, 75% or 100% spouse pension, lifetime pensions with 60 or 120 certain payments, Social Security option and a partial lump sum option with 60 or 120 certain payments. Benefits are payable for the participant's lifetime. The plan also provides a mandatory cash out payment if the actuarial equivalent benefit is less than $5,000, or a voluntary cash out payment if the actuarial equivalent benefit is less than $10,000. 

The 60 certain payments option provides equal monthly payments for your lifetime.  If you die before receiving 60 payments, your beneficiary will receive the balance of the 60 payments.

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.

No money is credited to an individual account, as the National Pension Plan of the IAM National Pension Fund is a defined benefit plan. It is designed to provide a monthly income at retirement. There is no benefit paid until a Covered Employee retires and applies for pension.

You may only designate people as beneficiaries. If none of your beneficiaries are alive at your death, any benefit payable may be made to your estate.

Some advantages of the National Pension Plan are that benefits are guaranteed by the Pension Benefit Guaranty Corp. (PBGC) and are payable for your lifetime. Contributions are made by your employer, not you, and the Fund assumes the full risk for providing benefits. In addition, given the same assumptions in terms of contributions and earnings, the National Pension Plan may provide higher benefits.

401(k) plans are popular with employers because they shift the expense and investment risk to employees. They are popular with employees because 1) payroll deductions are made on a before-tax basis (which allows employees to defer paying taxes on the portion they contribute to the plan); 2) they often offer a choice of investment options and 3) account balances are generally accessible either through loans, hardship withdrawals or in-service withdrawals, or at the time an employee leaves the employer.

Yes. The IAM National Pension Fund also offers the IAM National 401(k) Plan to participants who have negotiated the National Pension Plan into their collective bargaining agreement. Also, if your employer offers a defined benefit plan to collectively bargained employees, you can participate in the IAM National 401(k) Plan.

Yes. However, you should consult with a tax advisor, as some tax benefits of an IRA are limited if you're also in a pension plan.

For four good reasons:

1. Contributions are made by the employer and not the employee
2. Since the benefits are guaranteed by the PBGC, there is limited risk to you when you participate in the plan
3. The benefits are solely for retirement and cannot be used for any other purpose
4. Benefit amounts are known and are paid for your lifetime.

The Fund's assets are managed by professional investment managers who follow the investment objectives set by the Fund's investment committee.

The joint Board of Trustees is responsible for overseeing the Fund's operations and performance. The Executive Director oversees its day-to-day operations.

The Fund is a not-for-profit organization. All investment earnings are used to provide benefits to pensioners and beneficiaries, and to cover the cost of running the Fund.

Yes. Unlike many single-employer or company pension plans, the National Pension Plan is well funded and financially sound. 

There are only a few states that do not have contributing employers.

If you change jobs and go to work for an employer who also contributes to the National Pension Plan without incurring a permanent break-in-service, your years of vesting and credited service follow you to your new job and you can continue to accrue benefits.

Many employers prefer to keep control of their company's pension plan so they can opt to fund the plans on a year-by-year basis. Obviously, during strong investment periods it may not be necessary to contribute to your plan. But, this short-term flexibility can lead to greater pension costs for your company over the long haul. Your contributions to the National Pension Plan are fixed and predictable over the life of the contract, protecting you from the potential volatility of year-by-year funding. Making steady contributions to the Fund is likely to represent better value—for you and your employees. You can focus on your business, comfortable in the knowledge that we are handling your pension-related matters—and handling them well.

We are always glad to address employers' concerns about the Fund. We welcome the chance to respond to questions from the professionals who serve you. We want to make sure there are no misconceptions about our plan. We have a track record of providing solid benefits, often better than those a single-employer plan can provide. When you compare our costs and benefits, you will see that the National Pension Plan is a good proposition.

Two reasons to switch to the National Pension Plan are that we offer secure lifetime retirement benefits and we administer the plan for you. Employers who adopt the National Pension Plan after terminating their own plans or by merging their plans into the National Pension Plan will find we can save them time and money. For example, if you have the IAM National Pension Fund as your sole pension provider, you don't have to worry about regulatory compliance. You can focus on your business, comfortable in the knowledge that we are handling your pension-related matters—and handling them well.

The Fund exists to provide pension benefits to IAM members, but the Fund is legally independent from the union. It is a separate entity managed by an active Board of Trustees composed of members of both labor and management. Employers have an equally strong vote in the Fund’s management.

Our trustees set policy and investment strategy. That strategy is based on thorough research and analysis and expert advice from some of the most trusted names on Wall Street and nationwide. The IAM National Pension Fund has a sound investment approach and a  record of more than 50 years of unblemished integrity.

We recognize the value of a 401(k) plan as a supplement to a defined benefit pension plan like the National Pension Plan. Our own IAM National 401(k) Plan is evidence of that. But, unlike a 401(k) plan, the secure benefits provided by the National Pension Plan can't be used for any purpose other than retirement. With the National Pension Plan, the money is there for retirement, no matter what, for life.

401(k) balances are exposed to market fluctuations, as recent years have made painfully clear. Workers may borrow from 401(k) accounts or cash them out when they change jobs. In fact, a large percentage of 401(k) plans have loans outstanding, and huge numbers of 401(k) participants cash out when they change jobs. For workers, a secure defined benefit like ours can take the worry out of long-term financial planning.

An employee's vested benefits belong to the employee—that's what vesting means. When a company becomes a contributing employer to the IAM National Pension Fund, its employees' status as participants in the National Pension Plan has no impact on vested benefits in the company's own plan. And, vesting service in the company plan counts in the National Pension Plan for vesting and some eligibility purposes.