The IAM National Pension Fund offers the National Pension Plan, available to members of the International Association of Machinists and Aerospace Workers, states the Fund. The plan provides retirement income that supplements retirees' savings and Social Security income. As of 2011, the fund ranks fifth by size among all multiemployer pension funds, numbers more than 100,000 participating members and manages assets worth approximately $10.9 billion.
The National Pension Plan provides its members with a non-forfeitable, formula-defined benefit at retirement, explains the Fund. The formula takes into account factors including the contribution rates paid over the member’s working age by the employer, the total credited service of the member, the age at which the member retired and the type of payment the member chose. The Plan is a defined benefit pension plan.
The benefit payout amount depends on the length of the member’s service, subject to a minimum and a maximum that depends on the member’s age, notes the Fund. A total of five years of vesting service entitles a member to receive a pension benefit from the plan, and 30 years of service entitles the member to an unreduced benefit. If the member is 62 or older, 20 years entitles him to an unreduced benefit.