The ILPF has grown tremendously since its founding back in 1950. As the Fund has prospered over the years, the Trustees have been able to improve the retirement benefit and deliver a level of retirement security that is hard to match in today’s economy.
A participant joining the ILPF today can expect to retire at age 65 and receive a monthly pension benefit equivalent to 2% of their total contributions. At this rate of return, ILPF participants typically get back all of their contributions in just 50 months, after which they (and their spouse if they’ve opted for joint and survivor benefits) continue to receive monthly benefit payments for the rest of their lives.
Teamsters who became ILPF participants after July 1, 2014, are entitled to the following benefits. For a full description, see the pdf Summary Plan Description (SPD)
Full Retirement Benefit: Participants who retire at age 65 receive a full, unreduced monthly pension benefit equal to 2.00% of all contributions made during their working years. See Table of Benefits
Early Retirement (age 55 and after): An ILPF participant who reaches age 55 may choose to retire early and receive a reduced monthly pension benefit. The amount of reduction depends on years of service and age at retirement. For further information, contact the ILPF.
Disability Benefit: An active participant who has contributed at least $1,300 and becomes totally and permanently disabled is eligible for an ILPF disability benefit equal to the participant’s total contribution amount or a monthly pension benefit, reduced by three percent for each year of early retirement.
Vested Pension Benefit: A Teamster who loses eligibility to continue participating in the ILPF, either because s/he no longer works in the industry or is no longer a Teamster, is eligible for a vested benefit if s/he has contributed at least $260 to the ILPF. By qualifying for a vested pension benefit, the participant will be able to collect a monthly benefit upon retirement.
Joint and Survivor Options: The ILPF offers two joint and survivor pension options:
- Pensioner opts to receive a reduced pension until death, at which time his/her surviving spouse receives a monthly benefit equal to two-thirds of the reduced pension.
- Pensioner opts for a more reduced monthly benefit than in option 1 but with a “pop-up” so that if the spouse dies first, the pensioner's benefit is increased to the amount it would have been if no joint and survivor benefit had been elected.
Death Benefit: The death benefit can take two forms, depending on the option chosen by the participant prior to his/her death:
- Joint and Survivor Benefit: The surviving spouse of an active member may elect to receive either: a) a lump sum death benefit equal to the participant's total contributions less any pension benefits already paid; or b) if the participant dies before receiving any pension benefit and the spouse is the sole beneficiary, the surviving spouse may elect to collect a lifetime monthly pension.
- If the member did not choose a joint or survivor option, or if there is no spouse, the pensioner’s beneficiary would receive a payment equal to the full amount of the participant’s contributions less any pension benefits already paid.