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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 years of Service.  A Plan Year begins June 1 and ends on the following May 31.

    You generally earn one year of Service for each you work 700 hours or more.  However, a number of special rules apply in calculating Service.  Please 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, you have at least one year of Service in each fund and the year of Service is not considered duplicate.

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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.  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.

     

    Beginning June 1, 2014, you will incur a Break in Service for a Plan Year in which you work less than 240 hours in covered work.  However, some special rules apply.  Please contact the Fund Office for complete information.  

     

    Military service may also prevent a break in Service.  Please contact the Fund Office for complete information.

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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?

    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; PLUS

    For hours worked on and after June 1, 2014, $30.00 per Plan Year provided you work 1,200 or more hours during the Plan Year; if you work at least 700 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.

    Please contact the Fund Office for a breakdown of your benefit calculation.


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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.  Failure to do so, could result in the suspension of benefit payment.    

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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?

    Early Retirement Benefits:  You qualify for an Early Retirement Benefit if you retire at any time after you:

    ·         Are at least age 59 and have earned at least 5 years of Service under the Plan

    (If you have at least 25 years of Service as of October 1, 2014 some special rules apply, please contact the Fund Office for complete information).

     

                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 or Local Union)

    ·         Proof of age document for the member

    ·         Proof of age document for the spouse, if electing a joint and survivor benefit

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

    ·         Divorce decree and settlement agreement (if applicable)

    ·         Qualified Domestic Relations Order due to a divorce (if applicable)

    ·         Waiver of 30 Day Notice Period (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 checks will be mailed or deposited on the 3rd of each month.  (If the 3rd of the month occurs on a Saturday, Sunday or Holliday, your check will be mailed or 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.

    What if my check is late? 

    If you check is mailed to you, you must allow at least 15 days for the postal service to deliver your check.  If, after the 15 day waiting period, you still have not received your check you may contact the Fund Office and a stop-payment order will be placed on your check and a new one will be issued to you. 

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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 ½ of 1% multiplied by the number of months before your 60th birthday or 6% 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. 

    You must notify the Fund Office of your divorce and provide a complete copy of your divorce decree and, if any, settlement agreement.  Failure to do so could result in the suspension of benefit payments. 

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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?

    No.

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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?

    ·         Type 1 Preretirement Death Benefit: 50% Survivor Benefit to Spouse.

    ·         Type 2 Preretirement Death Benefit: Lump Sum Payment of the lesser of 50% of Employer Contributions or $25,000.

    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?

    ·         You must have accrued at least 10 years of Indiana Laborers Pension Fund Service at the time you became disabled;

    ·         You have worked at least 480 hours in each of 5 of those 10 years of service;

    ·         You apply for the benefit (on a form prescribed by the Board of Trustees) within 6 months after work hours were last reported on your behalf;

    ·         Your disability meets the definition of a “Permanent and Total Disability” or “Occupational Disability” benefit;

    ·         You have not reached age 59;  

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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 45 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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    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).

    YOUR RESPONSIBILITIES

    ·         You must notify the Fund Office, in writing, if you plan to return to work, re-retire, have a change in address, get married, get divorced, the death of a spouse or beneficiary, you have closed the account in which your pension check is automatically deposited.

    ·         You must keep your beneficiary information current.  Please notify this office of a divorce, death of a spouse, marriage or re-marriage.

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