The delegates to the 40th International Convention approved an increase to the general fund May 10, giving leaders the resources requested to accelerate organizing and place the IBEW on solid footing for the years ahead.

Starting in January of 2023, per capita will increase by $2 per month, an additional $1 per month starting July 1, 2024, and a final increase of $1 one year after that.

The modest increase will allow the IBEW to capitalize on unprecedented receptiveness to the power of unions both among workers and political leaders in Washington and Ottawa.

"That is less than a cup of coffee at all of those Starbucks that are organizing," said International Secretary-​Treasurer Kenneth W. Cooper as he presented the IST report on the finances of the union before the vote on the amendment. "We owe it to the next generation to leave the IBEW better than we have it."

Before the convention, the Finance Committee came together to consider the future financial needs of the IBEW. The North American workforce has never been more receptive to coming together and forming and joining unions, but at the same time, too few have personal experience working in or with unions.

At the same time, electrification and decarbonizing the economy will permanently and radically increase the demand for electrical workers.

But while there are opportunities in the future, enormous opportunities that will require investment in organizers and campaigns today there are challenges that need to be addressed.

Many of them can be traced to the pandemic which, according to Cooper's presentation, marked a slowing and then a reversal of organizing successes since the last convention, chiefly in telecom, utility and other professional and industrial members.

While "A" membership grew by about 33,000 members with another 10,000 "BA" members switching to "A" membership to take advantage of the Pension Benefit Fund, "BA" membership fell by about 20,000 members, excluding the 10,000 who converted.

In addition, Cooper said, the IBEW expects to lose nearly 60,000 "A" members in the next four years to various forms of retirement.

Projecting out, the Finance Committee set a conservative target of 0.5% growth because economic uncertainty may well be the new normal. The pandemic taught us that, if nothing else, Cooper said. With no change to the per capita, projected operating losses quickly rose into the millions each year.

Cooper urged passage of the per capita increase, saying anything else would be a betrayal of future generations of IBEW members and an historic failure to seize the opportunities at hand.

"How do we move forward and plan to do all the things we have talked about so far?" Cooper asked. "No one thinks we should stay at the status quo."

Law Committee Chairman Donald Finn, business manager of Chicago Local 134 and Secretary Lou Antonellis, business manager of Boston Local 103, introduced the amendment, which was approved by the convention.

'A' Member Pension Benefit Fund Boosts Benefits for Future Retirees

Cooper delivered an update on the Pension Benefit Fund, considered one of the safest and best funded supplementary pension plans in the country, on Day 2 of the 40th International Convention.

"It's pound-for-pound one of the best pension plans out there," Cooper said. "Any time I talk about a pension plan, I say it's one of best things we have."

Cooper began his remarks with a look back to 2016, at the 39th International Convention.

"If we didn't have the courage to [increase the PBF contribution] and stayed where we were, what would have happened to our pension benefit plan? However, at the time, the delegates of the convention had enough wisdom and courage to increase the contribution rate," he said.

In 2016, IBEW leaders implemented a modest increase to "A" member contributions, starting with $2 per month additional in 2017 and another $1 in 2019.

Today, the PBF is 96% funded, Cooper said, adding that in 2021 it had a return of 26.64% on its investments, the highest since 1986.

"It was a good thing, it was a great thing," he said. "But we know we cannot sustain those kinds of returns. In fact, this year has been an up and down road."

If we do nothing, Cooper went on, we could be fully funded by 2025 if things continue to go the way they are.

"However, the IBEW is never happy just watching things stand still," he said. "We are charged with leaving it better than we found it. We owe it to the next generation. Someone gave it to us that way."

So, leaders sat down and took a deep dive to see what to do. The recommendation by the Law Committee, which combined elements of different proposals, was ultimately to change the benefit accrual rate from $4.50 to $5.50 beginning with years of service earned after January 1, 2023, and moving forward. They also made a recommendation for increasing contribution rates from $19 to $21 beginning January 1, 2023 and to $23 on January 1, 2025.

Cooper said that in just four years and three months following retirement, a member would receive 100% of the money they put into the PBF. The average member draws from it for 20 years.

"That's quite the accomplishment," he said. "If we can find more investments out there like that we all should go to them because it truly is a great investment."

The amendment was adopted by the convention as recommended.