There are two types of contributions that covered employers make to the Pension Trust: Basic contributions and PEER contributions. It is important to understand the difference because only basic contributions are used to calculate the amount of a participant’s benefit.
Basic Contributions
Basic contributions are a major part of the dollars that covered employers pay into the Trust for participants' covered employment. They are used to help pay for the basic benefits the Plan provides.
PEER Contributions
First introduced in 1992, the Program for Enhanced Early Retirement (PEER) lets eligible participants retire early at any age with no reduction in benefit amounts. Most of the Plan’s employers make separate PEER contributions to help pay for enhanced early retirement benefits through PEER.
PEER contributions are paid in addition to the basic contributions an employer is required to make. They are not used to calculate the amount of a participant's benefit. The employer's Teamster collective bargaining agreement tells if the employer makes PEER contributions.