BACSAVE Retirement Savings Plan Provides Financial Stability

There are three things that contribute to a financially secure retirement: a defined benefit pension, such as that offered by the Inter-national Pension Fund, Social Security, and savings. The BACSAVE Retirement Savings Plan (RSP) can help members target savings for retirement. Participants fund their RSP through a collectively bargained contribution – just like their pension plan is funded. Currently, 25 Local Unions in Alabama, Connecticut, Delaware, Maine, Michigan, Missouri, Montana, New Hampshire, New Jersey, New York, North Dakota, Oklahoma, Pennsylvania, Texas, and West Virginia have negotiated RSP contributions for their members. The RSP now totals more than $90.2 million in assets and covers more than 15,000 participants.

Why save for retirement through the RSP? First, the savings are before taxes, which means you can save more. Second, the RSP has a track record of providing participants with an excellent long-term rate of return, which increases their savings. Since the Plan’s inception in 1988, participants have enjoyed an average annual rate of return of 6%. Finally, the RSP portfolio, which is managed by investment professionals, includes a balanced mix of fixed income and equity investments to ensure growth, value and stability.

Each RSP participant has an individual account and receives an annual statement that provides beginning and year-end balances, investment income, and contribution totals remitted by each employer. At retirement, participants have access to the total dollar amount in their accounts. Benefit payment options include lump sum payouts, monthly installments, and joint and survivor or single lifetime annuities.

Recognizing that participants may need access to the funds in their RSPs because of disability or hardship, eligible participants may apply to withdraw funds prior to retirement for specific items such as: foreclosures, evictions, unreimbursed medical bills, or funeral expenses. RSP applicants must submit a completed application and specific hardship documentation, including their spouse authorization and tax withholding information.

Applicants must mail their hardship withdrawal applications, however they may also fax them to the Fund office in order to expedite processing. Hardship applicants may also request a letter indicating their available balance and an estimated date the check will be approved by the Trustees, which can be forwarded to creditors.

If your Local Union participates in the RSP and you have questions, please contact the International Pension Fund at 1-888-880-8222.