“It’s my personal mission to educate members about their retirement.” – 332 President Pete Seaberg
On March 6, roughly 170 members and their spouses packed the hall for President Pete Seaberg’s Inside pension workshop. Throughout the year, Pete has been educating members about their retirement at the hall, online, and even at the ETASV to plant the seed for apprentices. He has offered to sit down with any member to explain the four IBEW pensions. “I wish I knew then, what I know now,” said Pete. “If you start saving early in your career and play your cards right, you can retire as a millionaire because of compound interest. It’s my personal mission to educate members about your pension and benefits. We need to aggressively correct the deficit of education on retirement planning.”
Local 332 Part A Pension: Defined Benefit
It is unheard of in this day and age to have a defined benefit pension, but because of the strength of the IBEW, we have one! This means that you will have a certain amount of money each month no matter how long you live. That amount is determined through a complex formula based on how many hours/years you’ve worked. Did you know you can retire as early as 55 years old?
332 Part B Pension: Defined Contribution 401(k)
This second pension is a 401(k) defined contribution funded by you and your employer. The money you have when you retire is dependent on what you put in, and when it runs out, it runs out. Here’s where the magic happens: Your money is invested in the stock market, and because of compound interest (interest on interest), small hourly contributions throughout your work life translate into mega bucks upon retirement. If you invest aggressively starting in your 20s, this is how you can become a retirement millionaire!
National Electrical Benefit Fund (NEFB)
The National Electrical Benefit Fund (NEFB) is funded by 3% of gross labor payroll from each contractor as a part of your Inside contract. You vest after 5 pension credits (1,000 hours), and you can collect as early as age 62 with qualifications. The current benefit is $33 a month per pension credit. Ex. 30 years=$990/month.
Pension Fund Benefit (PBF) or IO Pension
PBF is funded through your I/O dues. You vest after 20 years, and you can collect at 65 years old. The benefit is $4.50 per month per credit up to 2022 and was raised to $5.50 per month in 2023. Ex. 30 years=$135/month.
Pete is willing to sit down with any member to educate you about your pensions, how much money you currently have, and how you can save more for retirement. Call the hall at 408.269.4332 to talk to Pete.
