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Pension Benefits Booklet

 

  • PENSION FAQ'S

  • RETIREMENT FAQ'S
    » FAQ'S«

    Pension FAQ's

     
    1. How do I become vested?
    2. Do my credits with another fund(s) count towards my pension?
    3. What is a Plan Year?
    4. Can I pay into my pension?
    5. Can I withdraw or rollover my contributions?
    6. What is a Break in Service?
    7. What is Forfeited Service?
    8. How are benefits calculated?
    9. How do I change my mailing address?

    1. How do I become vested?

    You become vested after you have earned 5 pension credits (five years of service).

    You generally earn one year of Service for each year you work 300 hours or more. However, a number of special rules apply in calculating service.Please refer to the definitions, beginning on page 3 of the Summary Plan Description or contact the Fund office for complete information.

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    2. Do my credits with another fund(s)count towards my pension?

    Your pension credit with another fund(s) could be counted towards your years of service with our Fund, provided the other fund(s) participate in a reciprocal agreement and you have at least one year of service in each fund.

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    3. What is a Plan Year?

    A Plan Year (also called a fiscal year) is the 12-month period that begins June 1 and ends on the following May 31.

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    4. Can I pay into my pension?

    No. Your employer contributes a specific amount based on the number of hours you work. This amount is set by the collective bargaining agreement between your union and participating employers. You are not required or allowed to contribute to the Pension Trust Fund.

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    5. Can I withdraw or rollover my contributions?

    No. Contributions are employer paid. The contributions plus investment earnings of the Fund are used to pay Plan benefits.

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    6. What is a Break in Service?

    You have a one-year break in service for each Plan Year after June 1, 1976 that you do not work for a participating employer and do not have any contributions made to the Plan on your behalf. You will not have a break in service if you are not working because of an accident or illness.

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    7. What is a Forfeited Service?

    If you terminate your service without a vested benefit under the Plan and incur 5 consecutive one-year breaks in service, you lose credit for the years you had accumulated when you terminated employment under the Plan.

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    8. How are benefits calculated?

    A. The amount of your Normal Retirement Benefit is based on the following formula:

    5.2% of all contributions accrued before June 1, 2001; PLUS

    4.5% of all contributions accrued on and after June 1, 2001 through May 31, 2003; PLUS

    3.5% of all contributions accrued on and after June 1, 2003 through December 31, 2004; PLUS

    For the 5 month period beginning January 1, 2005 and ending May 31, 2005, $12.50, provided you worked 500 or more hours during this period; if you worked at least 125 hours but less than 500 hours, you will accrue a benefit equal to your hours divided by 500 and multiplied by $12.50; PLUS

    For hours worked on and after June 1, 2005, $30.00 per Plan Year provided you work 1,200 or more hours during the Plan Year; if you work at least 300 hours but less than 1,200 hours, you will accrue a benefit equal to your hours divided by 1,200 and multiplied by $30.00.

    Following is an example of how a Normal Retirement Benefit might be calculated for retirement on May 31, 2009.

    This calculation is based on the assumptions the participant worked 500 hours between 1/1/05 and 5/31/05 and at least 1,200 hours per Plan Year for 2006, 2007, 2008 and 2009

    Dates of Covered Service
    Employer Contributions
    Multiplier
    Monthly Pension Benefit
    6/1/1962 – 5/31/2001
    $30,000
    x
    5.2%
    =
    $1,560.00 (each month for life)
    6/1/2001 – 5/31/2003
    $4,000
    x
    4.5%
    =
    180.00 (each month for life)
    6/1/2003 – 12/31/2004
    $3,000
    x
    3.5%
    =
    105.00 (each month for life)
    1/1/2005 – 5/31/2005
    n/a
    $12.50
    =
    12.50 (each month for life)
    6/1/2005 – 5/31/2009
    n/a
    $30.00 x 4 yrs
    =
    120.00 (each month for life)

    See SMM dated May 1st for additions and changes to calculations

    Updated SMM


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    9. How do I change my mailing address?

    If you are currently receiving a pension payment, you must submit your new address in writing, over your signature.

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    Retirement FAQ's

     
    1. When am I eligible to retire?
    2. How do I apply for retirement benefits?
    3. When should I apply for retirement benefits?
    4. What documents are required for retirement?
    5. When will I receive my first check?
    6. When will my benefit be deposited?
    7. How long will I receive pension payments?
    8. What happens to my joint and survivor benefit if my spouse predeceases me?
    9. What is the early retirement reduction amount?
    10. What happens if I elect a joint and survivor benefit, but my spouse and I divorce during my retirement? Will my monthly payment amount increase?
    11. If I divorce and remarry, will my new spouse be eligible for a benefit from my pension?
    12. Can I change my form of payment after I start receiving benefits?
    13. Will my pension benefit be affected after I begin receiving Social Security Benefits?
    14. Will I get a cost-of-living increase?
    15. Is there a limit on the amount I can receive?
    16. Is my pension a taxable distribution?
    17. Can I temporarily suspend my pension benefits and return to work full-time?
    18. Can I continue employment beyond retirement?
    19. Can I get a lump sum payment?
    20. Can I appeal the denial of an application?
    21. What death benefits are available to my spouse or beneficiary?
    22. Who are eligible beneficiaries?
    23. How do I become eligible for disability benefits?
    24. How do I apply for disability benefits?
    25. I am receiving Social Security disability benefits. Does that mean I will automatically be approved for disability benefits from the Pension Fund?
    26. Can I appeal the denial of an application?
    27. Can I work while drawing my disability benefit?

    1. When am I eligible to retire?

    A. Early Retirement Benefits: You qualify for an Early Retirement Benefit if you retire at any time after you: · Are at least age 55 and have earned at least 5 years of service under the Plan. Have earned at least 30 years of service Normal Retirement Benefits:You qualify for a Normal Retirement Benefit if you retire after you are age 60 and have accrued at least 5 years of service under the Plan, whichever occurs later.

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    2. How do I apply for retirement benefits?

    Please contact the Pension Fund office at 812-238-2551 or toll free at 800-962-3158.

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    3. When should I apply for retirement benefits?

    You should contact the Fund office at least 60 days before you wish payments to begin.

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    4. What documents are required for retirement?

    You must submit all required information before your application can be approved:

    · Application for benefits (provided by the Fund office, Local Union or download the form)

    · Proof of age document

    · Registration card (provided by the Fund office or Local Union)

    · Divorce decree and settlement agreement (if applicable)

    · Death certificate of a spouse (if applicable)

     · Job description from your employer if you intend to work, in any capacity, after retirement

     · Authorization Agreement for Automatic Deposit

    · Federal and State tax withholding forms

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    5. When will I receive my first benefit payment?

    Once your retirement benefit is approved, your benefit will begin on the first of the month after the Board of Trustees receives and approves your application for benefits and other required documents.

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    6. When will my benefit be deposited?

    Pension benefits will be mailed or deposited on the 3rd of each month. (If the 3rd of the month occurs on a Saturday, Sunday or Holiday, your benefit will be deposited on the preceding Friday).

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    7. How long will I receive pension payments?

    Pension benefits are payable for your lifetime. If you elect a joint and survivor benefit, your spouse will receive benefits for their lifetime, if you predecease him or her.

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    8. What happens to my joint and survivor benefit if my spouse predeceases me?

    Your benefit will be recalculated to “restore” your reduced monthly benefit to the original amount of your Normal or Early Retirement Benefit.

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    9. What is the early retirement reduction amount?

    The reduction is ¼ of 1% multiplied by the number of months before your 60th birthday or 3% per year.

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    10. What happens if I elect a joint and survivor benefit, but my spouse and I divorce during my retirement? Will my monthly payment amount increase?

    No increase will be made to your monthly payments because of a divorce and the person who was your spouse when your pension started will still be entitled to the benefit after your death. However, certain court orders could allow for your benefit amount to increase or decrease.

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    11. If I divorce and remarry during my retirement, will my new spouse be eligible for a benefit from my pension?

    No. A new spouse will not be allowed to receive monthly pension payments if you marry after your effective date of retirement.

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    12. Can I change my form of payment after I start receiving benefits?

    Once 30 days have elapsed since your first benefit payment, you are not allowed to change your benefit election.

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    13. Will my pension benefit be affected after I begin receiving Social Security Benefits?

    No. The monthly benefit you receive from this Fund will not be affected.

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    14. Will I get a cost-of-living increase?

    At this time, the Plan does not provide for any cost-of-living increases.

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    15. Is there a limit on the amount I can receive?

    Yes. The IRS limits annual benefits paid from plans such as this Pension Plan, but these limits are high. In the unlikely event you are affected by these limits, you will be notified.

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    16. Is my pension a taxable distribution?

    Yes. Federal and state taxes apply.

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    17. Can I temporarily suspend my pension benefits and return to work full-time?

    Yes. However, you must notify the Pension Fund office in writing in advance.

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    18. Can I continue employment beyond retirement?

    You are allowed to work less than 40 hours per month in “related employment” while receiving monthly benefits. Your benefit will be suspended for any months you work 40 or more hours in “related employment.” Please contact the Fund office for specific information on what is considered “related employment.”

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    19. Can I get a lump sum payment?

    If your benefit amount calculates to be less than or equal to $50.00 per month, you will be provided with lump sum payment options.

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    20. Can I appeal the denial of an application?

    If your application is denied you or your authorized representative must submit a written request, within 60 days after receiving the denial notice decision, to the Pension Fund office at PO Box 1587, Terre Haute, IN 47808 for a review of the denial.

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    21. What death benefits are available to my spouse or beneficiary?

    Postretirement Death Benefit: If you are receiving retirement benefits at the time of your death, your spouse or other eligible beneficiary may qualify for a postretirement death benefit. Please contact the Fund office for more information regarding death benefits.

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    22. Who are eligible beneficiaries?

    Eligible beneficiaries in the Pension Fund are your legal spouse, son(s), daughter(s), father, mother, brother(s), sister(s), in any combination or your estate. Please note: minor children ARE allowable beneficiaries.

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    23. How do I become eligible for disability benefits?

    Disability retirement benefit commencing as early as age 52 (but not later than earliest retirement age) provided the following requirements are met. 

    Participant is unable to perform construction work due to an injury sustained on a jobsite while working under any LIUNA CBA or performing a job for which contributions are required to be made to the Fund under a participation agreement and has least 5 years of service; and Participant submits proof of accident and disabled status within 6 months of later of: (a) the accident, or (b) 6/1/2010; and Trustees find Participant is still disabled as of desired commencement date.

    The monthly amount shall be the benefit that would otherwise be payable at earliest retirement age reduced by ½% per month for each month that commencement date precedes such earliest retirement age and adjusted for any optional form of payment elected.

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    24. How do I apply for disability benefits?

    Please contact the Pension Fund office at 812-238-2551 or toll free at 800-962-3158.

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    25. I am receiving Social Security disability benefits. Does that mean I will automatically be approved for disability benefits from the Pension Fund?

    No. You must meet all eligibility requirements of the Pension Fund in order to be approved for disability benefits. However, eligibility for Social Security disability benefits IS a requirement of eligibility for Total and Permanent Disability Benefits from the Pension Fund.

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    26. Can I appeal the denial of an application?

    If your application is denied you or your authorized representative must submit a written request, within 60 days after receiving the denial notice decision, to the Pension fund office at PO Box 1587, Terre Haute, IN47808 for a review of the denial.

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    27. Can I work while drawing my disability benefit?

    Total and Permanent Disability Benefits: No You cannot work, in any job for profit or pay in any occupation or employment while receiving a Total and Permanent Disability Benefit. (If your work is for rehabilitation, however, benefits may continue subject to the Board of Trustees' prior approval)

    Occupational Disability Benefits: You may work while receiving this benefit. However, you cannot work in any job for profit or pay in the any capacity within the construction industry AND your gross annual income from supplemental employment cannot exceed 1 1/2 times your annualized Occupational Disability Benefit.

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