Benefits

Defined Contribution Pension Plan

The Sacramento Area Electrical Workers (SAEW) Pension Plan is a multi employer defined contribution plan, a money purchase/profit sharing plan. Contributions go into an account in your name. At time of retirement your account balance is adjusted for investment gains and losses which belongs to you. The plan is administered by a joint committee of trustees from both IBEW Local 340 and the Sacramento Chapter of the National Electrical Contractors Association (NECA).

The Collective Bargaining Agreement provides for three contribution rates. The default rate is a contribution of two dollars and fifty cents ($2.50) per hour for each hour worked. At the time the bargaining agreement is negotiated other rates and wages may be ratified. The employer, as a negotiated portion of your total package, pays this contribution and any contribution ratified by the membership pursuant to negotiations. However, higher pension contributions may, as part of the wage package, reduce the amount of wages paid. Again, the amount members defer into the pension contribution from wages, increases pension benefits. Your pension contribution is paid before taxes and grows tax free so at time of retirement, taxes are due on distributions. You must be careful at time of retirement on how and when your account is distributed because you could incur tax penalties if not done properly.

Under the Inside Wireman's Agreement, you can, at the time the Agreement is negotiated or reopened for benefit allocation, ratify a classification. The current classifications are:

"A" classification of three dollars ($3.00) per hour.
"B" classification of four dollars and fifty cents ($4.50) per hour
"C" classification of eight dollars ($8.00) per hour.

At initial negotiation or reopening for benefit allocation, classifications will be voted on. Your vote will place you in a classification, if adopted, for the term of the Agreement or until reopened for benefit allocation. Your hourly wage will vary depending on the classification you ratify.

All contributions made in your name are 100% vested from your first hour worked. There is no vesting period in your pension plan. You will receive an annual report on your account activity including your current balance along with your investment income, which is calculated on a monthly basis. Since the inception of the plan in 1981, the plan has averaged just over 8% earnings on its investments.

For more Information log on to www.ibew340benefits.com

Click here for 9th District (S&C) Pension Information