Advantages for Retirees
Many locals have struggled with a way to help their members deal with cost-of-living increases after retirement. Every year, medical and other living expenses go up, while pension benefits remain level. Well, there is a solution: the Western Conference of Teamsters Supplemental Benefit Plan was established in 1982 to address just this problem.
The Supplemental Plan provides an additional annual benefit for retirees already receiving pensions from the Western Conference of Teamsters Pension Plan (the “Primary Plan”). It does not replace or affect the normal monthly pension from the Primary Plan. The advantage for retirees is that the Supplemental Plan is provided at no charge; the participating Employers contribute for present employees in order to provide this benefit for retirees.
A unique feature of the Supplemental Plan is that the benefit increases every year you are retired (up to a maximum of 18 years) as long as your last Employer continues to contribute to the Plan. If that employer ever stops contributing, the increases in your benefit stop, but the retiree continues to receive a level annual benefit for life in the amount earned.
For example, an unmarried retiree will receive a single annual benefit payment of $110 in the first year, $220 in the 2nd year, $330 in the 3rd year, etc., currently with a maximum single annual payment of $1,262. In addition, if you are already retired when your employer joins the Supplemental Plan, you will receive an extra benefit of $23 for each full year of prior retirement. These amounts will be adjusted if the retiree is married and a Survivor Benefit is payable to the retiree’s spouse.
Advantages for Employers
Employer contributions to the Supplemental Plan are fully tax deductible.
The maximum number of hours earned for which an Employer may be obligated to contribute for an employee during a calendar year is 2,080 hours.
The Board of Trustees intends for all benefits earned under the Supplemental Plan to be fully funded by current Employer contributions.