1. IUOE CENTRAL PENSION FUND Local 150 Plan to Offer Second Pension to Public Sector Employees

2. Why Now?  Hedge our bet with IMRF  Recent two tier system  Legislation introduced to take away 13 th check  Continued attacks on public employee pensions  Bruce Rauner

3. Quick Facts About CPF  What Benefits Are Paid By CPF:  Normal Retirement Benefit: Payable at normal retirement age (usually 65). It is a monthly benefit for life.  Early Retirement Benefit: Payable as early as age 55 with 10 years of service. It is equal to the Normal Retirement benefit reduced by 3% per year for years prior to age 65.  Special Early Retirement Benefit: Payable as early as age 55 with 25 years of service. It is reduced by 3% per year for years prior to age 62.

4. Quick Facts About CPF  Special Retirement Benefit: Payable as early as age 62 with 25 years of credited service. It is equal to the Normal Retirement benefit without reduction.  Post-Retirement Surviving Spouse Benefit: Payable to the surviving spouse of a deceased retiree for life, at optional levels of 50%, 66-2/3%, 75%, or 100% of what the retiree was receiving. It is equal to the Normal Retirement Benefit with reductions because the benefit will be paid over two lifetimes.

5. Quick Facts About CPF  Pre-Retirement Surviving Spouse Benefit: Payable at any age to the surviving spouse of a vested participant who dies before retirement. It is a lifetime benefit equal to 50% of the Normal Retirement Benefit. This does not apply if the Participant and their spouse have been married for less than one year.  Disability Benefit: Payable under age 55 with 15 years of service. It is equal to the Early Retirement Benefit at age 55.

6. CPF Highlights  The Central Pension Fund has $14.7 billion in assets.  CPF has over 6,700 contributing employers.  CPF has over 130,000 active participants and pays benefits to over 67,000 recipients and beneficiaries each month.  CPF is the 3 rd largest multi-employer defined benefit pension fund in the United States and is over 96% funded.

7. CPF Vesting  5 years for vesting 100%.  10 years for vesting eligibility of early retirement payable anytime after age 55.  Vesting Past Service – Once you report for 1000 hours, the CPF will grant you past service based upon length of service or membership in good standing with the Union.  15 years grants you eligibility for early retirement, normal retirement and disability.

8. Running Some Numbers  $1.00 Per Hour for 10 Years = $20,800 in Contributions  At current multiplier, benefit is $260 a month. Assuming he collects for 10 years, he collected $31,200.  Assuming he collects for 20 years, he collected $62,400.

9. Running Some Numbers  $1.00 Per Hour for 20 Years = $41,600 in Contributions  At current multiplier, benefit is $520 a month. Assuming he collects for 10 years, he collected $62,400.  Assuming he collects for 20 years, he collected $124,800.

10. Running Some Numbers  50 Cents Per Hour with 25 Cents Per Hour Per Year Increases for 10 Years = $33,800 in Contributions  At current multiplier, benefit is $422.50 a month. Assuming he collects for 10 years, he collected $50,700.  Assuming he collects for 20 years, he collected $101,400.

11. Running Some Numbers  50 Cents Per Hour with 25 Cents Per Hour Per Year Increases for 20 Years = $119,600 in Contributions  At current multiplier, benefit is $1495 a month. Assuming he collects for 10 years, he collected $179,400.  Assuming he collects for 20 years, he collected $358,800.