Delegates to the 39th International Convention took action to support the IBEW general fund and to ensure the health of the Pension Benefit Fund (PBF) for “A” members.
Delegates unanimously adopted the recommendation of the Law Committee to increase per capita general fund contributions by $2 a month over the next five years and PBF contributions by $3 a month over the same period.
The general fund per capita increase will be implemented in staged, with a $1 per month increase starting Jan. 1, 2018, and a second $1 increase starting Jan. 1, 2020.
“Our goal is 100 percent market share in the IBEW, and we need to build the coffers and expand our resources to do that,” said President Lonnie R. Stephenson. “Foremost in our minds at all times is that we maintain our standing as the premier union, able to do the work that needs to be done, and representing our current and future membership at the highest levels.”
International Secretary-Treasurer Sam Chilia spoke to the convention about the “one-of-a-kind” nature of the IBEW’s Pension Benefit Fund, which is entirely funded by “A” member dues.
The PBF may not be the largest fund, he said, but its retirement and death benefits are significant and remain “a symbol of the vision and determination” of IBEW leaders long ago.
Pointing to dramatic increases in the PBF’s solvency since the last convention in 2011, Chilia noted that there is still work to do to reach 100 percent funding. Currently, the PBF has more than 360,000 active members and 111,000 retirees, paying out $134 million in benefits annually.
Delegates agreed to ensure the future of the PBF by implementing a modest increase to “A” member contributions, starting with $2 per month additional on Jan. 1, 2017, and another $1 per month on Jan. 1, 2019.
Speaking in support of the PBF, Local 230 (Victoria, B.C.) Business Manager Phil Venoit said the “cup-of-coffee” sized dues increase over five years is a small price to pay for the financial cushion the PBF provides IBEW retirees. “Don’t consider this a hardship,” he said. “It’s really taking $3 from your front pocket and putting it in your back pocket for when you’re really going to need it.”
Convention Decisions and Local 213 Dues
Following the vote of the International Convention, IBEW Pension Benefit Fund contributions will increase by two dollars a month ($2.00) effective January 1, 2017. This applies to “A” members only.
The dues formulas for all employees working under Local 213 agreements are as follows:
• Monthly working dues (dues from employed members) are based on 1.5% of gross earnings.
• In addition, all employees pay at least eighteen dollars ($18.00) per month.
• The minimum total working dues payable per month are nineteen dollars and fifty cents ($19.50) which is the equivalent of dues for unemployed members.
2017 Working Dues
A Members 1.5% + $36.00
BA Members 1.5% + $18.00
2017 Non-working Dues
A Members $37.50
BA Members $19.50
The next increase in IBEW general fund contributions is to take effect in January 2018.