Teamster trustees improve pension benefits
April 30, 2024
Building on the strong investment results of 2023, the trustees of the Western Conference of Teamsters Pension Trust (WCTPT) approved major benefit improvements at their January 2024 meeting.
The first of the improvements is an extension of the 1.6% bonus accrual rate effective January 1, 2024, through December 31, 2025. This accrual rate applies to all participants regardless of the years of service the participant has earned. The bonus accrual rate of 1.6% had been set to expire on December 31, 2023, and return to the historical 1.2% accrual in accordance with WCTPT policies prior to the extension approval. The accrual rate for earning non-contributory service remains at 1.2%.
For WCTPT participants, the bonus accrual extension may mean it’s a good time to review retirement plans – members who were set to retire in 2024 might consider continuing to work to take advantage of the bonus accrual years and boost their negotiated pension for a stronger and more secure retirement.
In addition to extending the 1.6% bonus accrual rate, the trustees also approved expanding the child survivor benefit to dependents up to age 22, effective July 1, 2024. Currently, the survivor benefit is payable to dependents up to age 18.
The child survivor benefit is also being expanded to cover units at a basic contribution rate of $0.10 or higher so that the Teamster family of an eligible participant with a contribution rate from $0.10 through $0.99 can qualify for a benefit of $1,000 per month. For units at an average contribution rate of $1.00 or higher, an eligible participant’s family can qualify for a child survivor benefit of $2,000, double the current maximum monthly amount per family. These changes all apply to families of participants who die on or after July 1, 2024.
There is no pension trust of the same type, size, or scope anywhere in the United States like the WCTPT. It is the largest area-wide multi-employer pension plan in the country, secured by $57.8 billion in assets, providing current and future benefits to hundreds of thousands of active and retired participants.
The union trustees who serve on the WCTPT for Joint Council 7 are Joint Council 7 President/Local 856 Principal Officer Peter Finn, Joint Council 7 Secretary-Treasurer/Local 350 Principal Officer John Bouchard, and Joint Council Vice President/Local 386 Principal Officer Jeff Berdion.
The above is a general description of the improvements to the bonus accruals and child survivor benefit improvements. Participants should contact the WCTPT at (650) 570-7300 to discuss what the Plan improvements mean in their specific cases.
Additionally, the Pension Trust maintains a comprehensive website at wctpension.org which contains more information about the pension, including the ability to enroll and receive annual benefit statements electronically rather than by mail.
