May 22, 2012: The amount of members' dues money that goes to an officer-only pension fund will nearly double next year to $9 million. And an even more exclusive plan, which is reserved for International officials only, is taking another $12.5 million in dues.
This announcement came in the April Funding Notice of the Teamster Affiliates Pension Plan. The International Union will pay $5 million in dues money in 2012, and increase the annual payment to $9 million in 2013.
The $9 million in dues money represents four times more than the total spent on the members’ strike and defense fund benefits last year (according to the IBT's LM-2 financial report). And it represents approximately half of what was spent on organizing (according to the IBT audited financial statement).
The Affiliates Plan is an officer-only pension fund. The plan was frozen in 1993 under IBT president Ron Carey so any Teamster who became a full-time officer or business agent after 1993 will not receive any pension from the fund.
If not for the freeze, the plan would be costing many millions more by now.
The International also pays millions of dollars into a separate fund, the "Family Plan," which provides pensions and huge lump sums to International officials.
In most cases, the International official getting the big lump sum is covered by multiple pension plans. The International union poured $12.5 million into this plan last year (according to the LM-2 report), and likely will increase that in 2013.