How the IBEW pension works for Lineman

What are the retirement options for lineman in 2025?

Depending on your employer as a lineworker, you will have different options to save up for retirement. Some of the most common options include:

• Pension Plans

• 401K

• Individual Retirement Accounts

What is a pension plan for lineworkers?

A pension is a critical part of a lineman’s retirement plan, ensuring monthly income after leaving the trade. Given the physically demanding nature of linework, having a stable retirement fund is essential for long-term security. Unlike a standard 401(k), which relies heavily on employee contributions, a pension is primarily funded by the employer, who is required to contribute to a pooled investment fund on behalf of the worker. Over time, these funds grow through investments, providing a guaranteed income stream upon retirement.

For many union linemen, pensions are structured through organizations like the National Electrical Benefit Fund (NEBF) or local IBEW chapters, ensuring a steady and predictable retirement income. Some lineman pensions also allow employee contributions, meaning a worker can choose to set aside a portion of their wages to further increase their future payout. With the risks and physical toll of linework, securing a strong pension ensures that when the climbing days are over, linemen can enjoy a financially stable retirement without relying solely on savings or Social Security.

What benefits can I become eligible?

Source NEBF

What is the National Electrical Benefit Fund (NEBF)?

NEBF is a pension plan for a for electrical workers. It is popular union lineworkers.

How Are Contributions Made?

Contributions are made each month by Covered Employers on behalf of employees who are covered by either:

• A collective bargaining agreement with the International Brotherhood of Electrical Workers (IBEW) or one of its Local Unions, or

• A signed participation agreement with NEBF.

Can I Contribute to NEBF?

No, employees do not contribute to the National Electrical Benefit Fund (NEBF)—all contributions are made by Covered Employers. Employees do not have individual accounts within NEBF, and no deductions are taken from their paychecks for this benefit.

Instead, employers contribute 3% of an employee’s gross pay into the fund on their behalf each pay period. This employer-paid benefit is in addition to the employee’s regular wages and serves as a valuable financial resource for retirement and security.

The NEBF provides three key benefits:

• Retirement Benefits

• Disability Benefits

• Pre-Retirement Spouse Benefits

What is the National Electrical Annuity Plan (NEAP)?

The NEAP is an individual retirement account funded by the employer, the amount of which is determined by the local unions Collective Bargaining Agreement.

Can Lineman use an annuity?

Yes! Many union lineman will decide to use the NEBF or NEAP. It has supported thousands of retiring lineworkers in the past decade.

How much do I need to save to retire as a lineman?

What if you are not planning on using a pension? How much do you need to save up?

Lineworkers in North America typically follow one of two main strategies when it comes to deciding how much they need to save to retire. If you do not have a monthly pension income to look forward post-retirement then keep these in mind:

• The 4% Retirement Plan for Lineman

The 4% Retirement Plan works this way:

Divide current income by 4%, which shows the total amount needed for retirement. If you make $50,000, the 4% Retirement Plan says you’ll need $1.25 million ($50,000 ÷ .04 = $1.25 million) for retirement.

If you had $1.25 million in retirement savings (earning a modest 4% return), you could withdraw $50,000 a year for more than 30 years.

Yes, that sounds like a lot. But Social Security benefits can account for $300,000-to-$400,000 depending how long you live. Too, the Labor Department relates that those who start saving $6,000 per year at age 25 would have almost $850,000 by age 60 with even a modest rate of return.

The benefit of the linemen that choose to strategize using this calculation is it takes into account how you currently spend your budget and realistically how expensive of a lifestyle you will live down the road.

• The 70% Rule

The 70% Rule states that to keep our standard of living in retirement, you will need 70% of present income. If you currently make $80,000, the goal is $60,000 per year, which if we live 20 years after retirement equals $1.2 million.

If you’re the frugal sort, you may need less than that, but it’s always wise to plan conservatively. Overestimating expenses and underestimating savings would lead to a surplus of funds once we stop work, which is the best situation possible.

70% rule