Many of our employers push 401(k) retirement accounts over the IUOE Central Pension Fund (CPF). The dangers of a 401(k) over a pension are clear — one only needs to be reminded of Enron, Worldcom and other cases of employees getting their retirement benefits manipulated, lost, or criminally pulled out from under than to see that our pension (which costs employers more than their chosen 401(k) plans) is your best bet. Our CPF is a multi-employer fund established in 1960. It is governed by a Board of Trustees comprised of employee and participating employer representatives.  It is currently the 4th largest labor-management pension fund in the nation.  Benefits paid to the current 55,000 retirees for fiscal year 2005 were $446 Million Dollars.

Please review the Chart below and if you still have questions regarding our Pension see www.cpfiuoe.org

COMPARE FOR YOURSELF

                                                                                401(k)                    CPF (Central Pension Fund)

Employee contributions required*:                yes                              no            

In a 401(k) you put in your own money, the CPF is money paid by your employer  for you

Employee pays payroll taxes on                     yes                             no
contributions:            

CPF contributions are not taxable to you 

 Employee pays investment fees :                  yes                             no

With a 401(k), more of your money is spent on fees and not on your retirement

Employee assumes investment risks:          yes                            no

401k can be lost in its entirety and does not guarantee any monetary benefit for any period of time

Monthly benefits for life:                                    no                             yes

Unlike the 401k the CPF has a guaranteed payment for each month of your life after you retire.  The amount is based on your employers’ contribution as negotiated by your Union and the length of time you work

Early retirement benefits:                                  no                              yes             

Disability benefits:                                                no                              yes               

Spousal benefits:                                                  no                              yes

Death benefits:                                                      no                              yes

Benefits insured by PBGC:                                 no                              yes 

Pension Benefit Guaranty Corporation is a federal corp. created by Congress to protect America’s pensions — not 401k plans. Further information can be found @ www.pbgc.gov.