From its very inception, the IBEW has been bound by the principle that brotherhood and benefits are inseparably joined. The first resolution passed by delegates at the founding convention in 1891 was a $50 death benefit for each member and $25 for their spouse, paid for in part by a per capita tax of 10¢ a month. Such a benefit was essential in those early days since electrical workers had the most fatalities of any trade.

Because of this, insurance companies refused to insure electrical workers at any premium, forcing the union founders to address it themselves. The second benefit approved was a strike benefit, with 5¢ per capita set aside every month.

At the 1892 convention, the death benefits were doubled to $100 and $50, respectively. Although generous, this led the IBEW to quickly approach bankruptcy, forcing the delegates at the 1893 convention to eliminate the benefit for spouses and raise per capita to 15¢. Even then, the first grand secretary-treasurer, J.T. Kelly, had to mortgage his house and stocks just to keep the Brotherhood afloat.

Slowly, the IBEW found its financial footing, allowing it to invest in an early apprenticeship system and hire full-time organizers. Increased bargaining power helped secure better wages, working hours and safety conditions for members. At the 1915 convention, the strike benefit was expanded to include members who were disabled on the job. Called the Difficulty Benefit Fund, it was approved by referendum vote in 1916. By 1920, employers tried to combat the ever-growing advantages of unionism by offering "company unions." The IBEW's response was to usher in new insurance benefits while also addressing a long-sought dream of the founders — retirement.

At the IBEW's 16th convention in 1921, a referendum was proposed to create the Electrical Workers' Benefit Association (EWBA), a fraternal organization that would provide life insurance for all members aged 55 and under. Not only would it provide plans for members that were otherwise too expensive, it would also allow the IBEW to compete with company unions more successfully. The referendum passed in 1922. That same year, railroad strikes across the country had completely emptied the Difficulty Benefit Fund. At the 1923 convention, it was moved to suspend payments and allow the fund to recoup.

The EWBA, meanwhile, was performing better than expected and efforts were made to expand its offerings. With membership approval, the IBEW chartered the Union Cooperative Insurance Association in 1924, the first union-owned company of its kind, offering life insurance policies not only to members but to their spouses and children, as well as to outside labor groups.

With multiple insurance offerings now available, it was time to address the Difficulty Benefit Fund. At the 1925 convention, a proposal was made by several locals to use the fund for a home for old and incapacitated members. In a similar vein, another proposal sought to convert the fund into a pension plan. This proposal was approved, and a report was ordered for the next convention. In 1927, delegates convened in Detroit and overwhelmingly voted to create the IBEW's first pension plan. The balance of the Difficultly Strike Fund would serve as its foundation, coupled with a per capita tax of 37¢ a month. The plan took effect Jan. 1, 1928, and marked a major step toward achieving economic independence by offering $40 a month to members who reached the age of 65 and had 20 years of continuous good standing, regardless of where they had worked or how often they changed employers.

The pension plan continued to evolve. At the 1946 convention, the "Employers Benefit Agreement" was signed between the IBEW and the National Electrical Contractors Association (NECA), which provided that both organizations would share pension costs. Members and their employers would each contribute 60¢ a month, while benefits increased to $50 a month. The fund was renamed the Pension Benefit Trust Fund (PBTF).

Although generous, by 1950 it became clear the PBTF was on the same path as the early death benefit. International Secretary J. Scott Milne issued a warning that if nothing was done, the fund would go bankrupt by 1961. In May 1951, a referendum was called to raise the per capita tax by $1 a month, for a total of $1.60, to ensure the PBTF's financial solvency. That summer, Milne traveled to locals across the United States and Canada with his "Pension Story" lecture and published several editorials in The Electrical Worker urging members to pass the referendum.

"In the beginning our members reaped few benefits for themselves for all the hard work, the blacklists, the heartaches and the tears they put into bringing this Electrical Workers' Union to life," wrote Milne in a 1951 article. "But they were not men who lived for a day, or a week, or a month — but for the years ahead — for those who would come after, their children and their children's children. And while there are those who say unionists of our generation do not have the same union zeal, there are many, many more who say they do. We must look to the future."

In the end, the referendum was passed on January 1, 1952, and the pension was saved. The dream of the IBEW's founders was to create a union that could provide for its members and their families, let them live a life of dignity, and hopefully someday retire in modest comfort. Because of that commitment, today the IBEW has the strongest pension fund in the labor movement.