Operating Engineers Funds Inc. is a non-profit corporation that administers the employee benefit programs for over 20,000 members of the International Union of Operating Engineers (I.U.O.E.) Local 12, and their dependents and beneficiaries. The Operating Engineers (Local 12) Funds are multi-employer funds that have been established through collective bargaining agreements between the employers and Local 12. The funding for the benefits provided by the Funds is set by the bargaining parties. The Funds are governed by Board of Trustees equally comprised of Union and Employer appointed representatives.
The majority of Local 12’s operating engineers work in public and private construction as heavy equipment operators, mechanics, concrete pumpers, soil testers, inspectors, and surveyors.
Health & Welfare Fund
In 1954, I.U.O.E. Local 12 won an important benefit for its members – the Health & Welfare Fund. For 60 years, the Board of Trustees of the Fund have worked hard to provide a comprehensive package of health, dental, prescription drug and vision care benefits to members and retirees of Local 12 and their dependents.
Active members become eligible for benefits from the Fund based on working a certain number of hours for employers signatory to a bargaining agreement with Local 12. Retired members become eligible if they qualify for a pension from the Pension Fund and meet certain other conditions. A summary of the benefits provided and the eligible rules can be found here – Benefit Summary
Currently, the Fund provides health and welfare benefits to over 10,000 active members and about 7,000 retirees. Including dependents, approximately 40,000 individuals receive benefits from the Fund. The Fund Office processes approximately 5,000 claims per month and pays out nearly $4 million a week in benefits and premiums.
The Operating Engineers Pension Trust was created in 1960 by the bargaining parties to provide financial security to members and a source of income in their retirement years. The initial funding for the Pension Fund in 1960 was 5¢ per hour and Current Service Credits were valued at $1.50 per credit. Today, the hourly contribution rate is over $7.00 per hour and Current Service Credits (as of July 1, 2007) are valued at $58.00. The Fund currently pays out over $17 million per month in pension benefits to nearly 17,000 retirees and surviving spouses. The assets of the Pension Fund total over $1.7 billion and are invested in broadly diversified portfolios managed by some of the best investment managers in the country.
Vacation-Holiday Savings Trust
The Vacation-Holiday Trust was created in 1963 as a means to provide pay during vacations and holidays. It operates as a form of savings account where each active member has an account that is credited with a fixed amount for each hour worked. Each member will receive an annual statement indicating the balance in his or her Vacation-Holiday Savings account. Distributions are made every December 1st, upon retirement or more frequently if requested by the member.
The Vacation-Holiday Savings Trust pays out approximately $25 million per year in benefits to working Local 12 members.
Operating Engineers So. California and So. Nevada Journeyman-Apprentice Training Trust
The Training Trust was established in 1964 to provide initial training and re-training to apprentice and journeymen members of Local 12 in various disciplines of construction covered under local 12’s collective bargaining agreements.
The Training Trust main office is located in Whittier, Ca. and has six other training sites located throughout Southern California and Southern Nevada.
The Training site in Whittier is a state of the art facility hosting a variety of training courses such as welding, inspection, hazardous materials, heavy equipment repair, crane training, many certification courses, and a long list of others relevant to the work that operating engineers perform.
The other six sites conveniently located throughout Local 12’s jurisdiction provide easy access for our members to training on over 150 pieces of heavy equipment, many of them recent models equipped with state of the art technology. These sites also host a variety of training courses and certification courses for our members.
Since its inception, Operating Engineers Training Trust has graduated more than 6,000 apprentices through its accredited programs and provided valuable skill upgrades to thousands of journeymen.
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