International Pension Fund Program Update

IPF Executive Director David Stupar addresses BAC Executive Council.

Despite the unprecedented market losses during recent years and the drop in hours due to the slowdown in construction activity during 2003, IPF’s retirement savings programs managed to stay ahead of the curve, according to a report presented by IPF Executive Director David Stupar at the February Executive Council meeting.

IPF
Although both hours and contributions were down for the year, the Fund’s assets increased by 11.8 percent, from just over $1 billion
at the end of 2002 to $1.2 billion at the end of 2003. “This increase was more impressive considering IPF paid out $99 million in pension benefits last year,” said Stupar.

Canada’s economy and work trends were stronger than in the U.S. during the year and IPF Canada’s results reflect this trend. Contributions increased by 23 percent and hours increased by 19 percent in Canada during the year, along with benefits paid and assets. The hour and contribution increases were due to Locals 25 and 41 Ontario resuming IPF contributions. There was also a large increase in the number of pensioners as the Financial Services Commission of Ontario granted the IPF permission to pay partial benefits to new pensioners in the breakaway Ontario locals.

BACSAVE
The Retirement Savings Plan also posted gains in 2003. At the end of the year, assets were approaching $50 mill-ion and it is estimated that participant returns for their individual accounts exceeded the 6.1 percent return the Annuity Plan has averaged since it was established in 1990.

In addition, the total number of Local Unions participating in the BAC Save 401(k) Plan increased to 21. Within those Locals, 239 members have chosen to participate in the Plan with an average salary deferral of $1.50 per hour, which they direct to any combination
of 10 different investment options.

Reciprocity
Progress was also made in the IU’s ongoing effort to make sure that members who travel for work receive credit for their benefit contributions earned. Thanks to a good response from BAC Local Unions and their funds, at the end of the year 134 funds had signed the international pension reciprocal agreement and 110 funds had signed the international health and welfare reciprocal agreement.