08.20.2002 - I had been in the Driver’s room at the OKC terminal waiting on my hook and noticed a petition taped on the wall. The petition solicited signatures to change the current Widow plan and increase coverage of Vision & Dental after retirement.

Presently, the Teamster Pension Plan provides a surviving spouse option to allow a lifetime benefit for a widow. If a member elects the surviving spouse option, their pension is reduced 15%. Then the widow receives 50% of the reduced pension for life. (A) Your Widow will not receive an insurance provision, unless it is within the first 5 years of receiving the initial pension. (B) At present this is the only surviving spouse option available.

Being a Teamster member for less than four years, I had no insight as to the quality and the details of this plan. I wondered if it was better than average, and how did it measure up to other major plans. So I decided to investigate the issue and this is how it compared to the benefits for a widow of a Teacher and a Police Officer.

As a Public School Teacher in the State of Oklahoma, after 30 years service and an average salary of $30,000.00 per year. The monthly pension amount is approximately $1500.00 per month. A widow would receive $1245.00 (83% under selected options) for the remainder of their life. The widow may elect to keep the medical coverage by paying a monthly premium in addition to Medicare with no age limit. http://www.state.ok.us/~okteachers/

As a Police Officer with the City of Oklahoma City, with only 20 years service, the monthly pension amount for a patrol sergeant is approximately $2124.00. After 10 years of service an Officer is vested. If an Officer falls in the line of duty or passes away at home in their bed, if the officer is vested, the surviving spouse receives 100% of the figured pension (based on pay grade and time in service) for the remainder of their life. The medical benefits are maintained by paying a premium. (Title 11 Section 50, Oklahoma State Statues)

I telephoned  Bill Schaffer, The Director of Communications for Central States to learn if  there were any pending changes to the surviving spouse benefit. His reply was no. Mr. Schaffer did state that an issue of funding would have to be raised among the board members or increased funding would have to be requested in the next NMFA contract in order to modify the existing surviving spouse option. Mr Schaffer also stated that discussions have been held on the issue but no action is pending. The Pension Fund's assets as of December 31, 1999 were in excess of $21 billion. Benefit payments from the Pension fund in 1999: $1.8 billion. https://www.centralstatesfunds.org/Cs/OurCompany.htm

Here is the bottom line… After 25 years of  a Teamsters contributory credit, at age 57 a pension benefit of $2500.00 a month will be paid. Knock off 15% for a surviving spouse and you are due $2125.00. Then you pass away and your widow receives 50%, which is $1062.50 for the rest of their life. This is less benefit than the widow of a Teacher would receive, and less than the widow of a Police Officer. The medical provision for a Teamster's Widow is dependent on Medicare.

Depending on your desired retirement income for you or your surviving spouse, the experts advise taking advantage of a 401(k) plan, and investing in an individual retirement account, or IRA. "Nothing beats IRAs and 401(k) s," You'll benefit on two fronts — a tax deduction every year you contribute, plus earnings that are tax-deferred. A note for at-home Moms: 1997 was the first year your husband could make contributions of $2,000 to both his own IRA and one in your name, known as a spousal account. In the past, the combined maximum for such accounts were $2,250.00.