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Future Bright for NEBF

January/February 1999 IBEW Journal

To many of our members, the National Electrical Benefit Fund is an integral part of their current or future retirement security. John Grau, Executive Vice President of the National Electrical Contractors Association (NECA) and I serve as trustees of the NEBF, in which capacity, we are constantly seeking ways to build upon the historically solid performance and benefit levels of the fund.

We are coming off two very solid years for the NEBF. The fund grew in excess of one billion dollars in 1997. The preliminary numbers for 1998 show a net growth of $800 million, after paying out $370 million in retirement and disability benefits.

In January 1998, Trustee Grau and I were happy to announce a 3 percent increase to retired participants and a $2.00 per month increase in the years-of-service credit. This year, after consulting with the fund's actuaries, we have authorized NEBF Executive Secretary-Treasurer Anthony Salamone to issue another $2.00 per month increase for each year of service, along with a 2 percent increase to retired participants.

While we are proud of the NEBF's long record of success, there is no room for complacency when it comes to the retirement security of our participants. That is why Trustee Grau and I, shortly after I assumed office in 1997, began planning for the future of the fund. We dubbed our plan NEBF Project Millennium; its goal is to provide a solid foundation for continued growth in the 21^st century and beyond. We started by assembling a solid team to help carry out our vision.

Terry Moloznik, who has served as Executive Director of Investments since November 1, 1997, has compiled an outstanding record in his short tenure. In March 1998, we hired John Good to assist Terry. John works closely with IBEW local unions and the employers to continue the good working relationship with the fund that has existed for many years. In June 1998, we added Todd Johnson to the team as Director of Real Estate. With more than 20 years experience in real estate investments, Todd gives us the final element needed to move our plans forward. There are others on our reassembled staff whose varied backgrounds will help enhance the fund. More information about NEBF Project Millennium can be found on page 17 of this issue.

These diverse talents will be essential as we continue to seek the proper balance and diversification in the fund's extensive holdings. With the use of computer modeling techniques to assess portfolio risk and return, we will constantly monitor the asset allocation of the NEBF to ensure the best possible performance. Already, we have used these techniques to increase the NEBF's real estate investments.

The NEBF is now using computer modeling techniques to assess portfolio risk and return. We constantly monitor the asset allocation of the NEBF to ensure the best possible performance. Already, we have utilized these computer modeling methods in our selection of real estate investments.

The responsibility that accompanies the management of a fund as extensive and as important to so many lives as the NEBF is indeed awesome. We are confident that the retirement security of the fund's participants will be stronger than ever through NEBF Project Millennium.