History of the Fund

The National Pension Fund (NPF) was started in May 1966.   Although originally intended as a means of providing retirement benefits for Production workers, the Building Trades segment of the SMWIA quickly came on board. The first local union approved for participation was former #7 (now Local #20) in Terre Haute, Indiana with contractors from that local union being accepted for participation at the January 1967 Trustees' meeting. Also in 1967, the Pension Fund of Sheet Metal Workers' Local No. 1, Peoria, IL became the first local fund to merge into the NPF. More mergers followed. As a result, the number of participants and Fund assets grew rapidly. In all, 37 local pension funds have chosen to merge with the NPF to date.

The NPF has a history of responding to the needs of the workers and to economic change. For example, in the early years those workers who pioneered the Plan were granted Past Service Credit so they could accrue a decent benefit sooner.   In the mid-1970's, the economic slump slowed work. The Fund responded by relaxing break-in-service rules in order that some workers could preserve hard earned benefits. The Fund also was revised to comply with the requirements of the Employee Income Retirement Security Act of 1974 (ERISA).

In the 1980's the Fund experienced heavy merger activity as smaller local plans saw that their participation could improve benefits in the NPF. The Fund was also able to respond to the participant requests by providing for benefit accrual beyond its traditional 25-year maximum.

In the 1990's, the Fund has enhanced early retirement options and improved surviving spouse benefits. It has increased benefit accruals. It has helped pay the cost of supplemental Medicare benefits.

Contribution income and investment earnings together fund benefit payments. Today, the NPF has approximately $2.4 billion in assets. In a typical month, the NPF receives $31 million in contributions and pays $33 million in pensions to approximately 42,000 recipients.