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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 13th
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 3rd 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
 $1.00Per Hour for 10 Years = $20,800 in
Contributions
Atcurrent 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
 $1.00Per Hour for 20 Years = $41,600 in
Contributions
Atcurrent 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
 50Cents 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
 50Cents Per Hour with 25 Cents Per Hour
Per Year Increases for 20 Years =
$119,600 in Contributions
Atcurrent 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.