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RECEIVING A PENSION AT RETIREMENT

You become a participant in the Plan on the first June 1 or December 1 after you complete a 12-consecutive month period in which you work 870 hours or more in Covered Employment (see Becoming a participant

In general, when you stop working you are eligible to receive a pension benefit from the Plan if you meet certain age and service requirements. You must have earned at least five Years of Vesting Service to earn the right to a pension at retirement.

 

Normal Retirement Age

Your Normal Retirement Age is the later of:

Vesting Service

You must have a certain amount of Vesting Service to earn a right to a pension at retirement. 

If you have earned at least 10 Years of Vesting Service or 10 Pension Credits, you may be eligible to retire earlier than age 65. Eligibility requirements for each type of pension are explained in this section.

 

If You Work Past Your Normal Retirement Age
You earn one Year of Vesting Service for each Plan Year (June 1 - May 1) you work at least 870 hours in Covered Employment.

You may elect to delay receiving pension benefits past your Normal Retirement Age. However, pension benefits will begin on April 1 of the year that follows the calendar year in which you reach age 70½. If you delay receiving benefits past your Normal Retirement Age, your monthly pension benefit will be actuarially increased for each complete calendar month past your Normal Retirement Age during which you are not working in Disqualifying Employment.

 

Types of Pensions

There are different types of pensions available to eligible participants of the Chicago Laborers’ Pension Fund:

Generally, you are vested if you have earned at least five Years of Vesting Service and you worked one or more hours after June 1, 1998 for an employer required to contribute to the Plan.  However, if you incur any temporary Breaks in Service of one or more years before you are vested, you must return to Covered Employment after the break and reestablish participation by working at least 870 hours in Covered Employment before you may be vested.

If you are eligible for more than one type of pension from the Plan, you will receive the pension that provides you the greatest benefit. You may receive only one type of pension from the Plan (excluding a Disability Pension in certain instances).

Each type of pension has different rules for eligibility and the pension benefits are figured differently as explained in the following sections. In calculating your monthly pension, the amount will be rounded up to the nearest dollar. Remember, Bonus Credits earned for working more than 1,499 hours per year do not count toward your Vesting Service or pension eligibility requirements.

In addition, it is important to remember that once you are vested, you have a right to a pension from the Plan regardless of when you last worked for a contributing employer. The type of pension you qualify for, the amount of your pension, and the date your pension will begin depend on your work history and the Pension and Bonus Credits you have earned.

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Once you are vested, you have a right to a pension when you retire at your Normal Retirement Age (generally age 65) or, depending on your work history, you may be eligible for an earlier pension.  Contact the Pension Department of the Fund Office for more information. 
Regular Pension

Regular Pension Eligibility

You can receive a Regular Pension, which is not reduced for age, as early as age 55 if you have at least 10 Years of Vesting Service or 10 Pension Credits. However, if you have been credited with Years of Vesting Service due to work for which no contributions were made to this Plan, to be eligible for an unreduced Regular Pension (as early as age 55) based on Years of Vesting Service you may need at least 10 Years of Vesting Service and five or more Pension Credits (see How you earn a pension). 

Regular Pension Calculation

Past Pension and Bonus Credits

Past Pension and Bonus Credits are those that are earned since you: 
  • Began working in Covered Employment if you have been working continuously; or
  • Returned to Covered Employment following a period of five or more years in which you did not earn ½ Pension Credit.

Your monthly pension benefit will be based on your total number of Pension and Bonus Credits multiplied by the Benefit Accrual Rate in effect at the time you earned your Credits (see Appendix). The most current Benefit Accrual Rates are as follows:

Pension and Bonus Credits earned on or after:

Benefit Accrual Rate:

June 1, 2008

$107.00

June 1, 2007

$105.00

June 1, 2006

$100.00

June 1, 2005

$98.00

 

However, if you meet certain requirements, you may be able to increase the Benefit Accrual Rate associated with your Past Pension and Bonus Credits as follows:

If you earned ½ Pension Credit between:

Or You worked at least 1,000 hours in each of two consecutive Plan Years between:

And You retire on or after

Benefit Accrual Rate:

June 1, 2006 and May 31, 2008

June 1, 2008 and May 31, 2013

June 1, 2008

$107.00

June 1, 2005 and May 31, 2007

June 1, 2007 and May 31, 2012

June 1, 2007

$105.00

June 1, 2004 and May 31, 2006

June 1, 2006 and May 31, 2011

June 1, 2006

$100.00

June 1, 2003 and May 31, 2005

June 1, 2005 and May 31, 2010

June 1, 2005

$98.00

 

You receive Bonus Credits for your hours (1,500 or more in a Plan Year) worked after June 1, 1986.

Note: If you have incurred a period of five or more years in which you failed to earn at least ½ Pension Credit, the Benefit Accrual Rates for Separate Periods of Employment section will apply.

 

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Benefit Improvements After Retirement

If you work at least 250 hours on the Plan Year in which you retire, you may be eligible for any benefit improvements implemented the following June 1st, and your pension will be recalculated accordingly.
Example:
Fred is not married and decided to retire at age 55 in September 2008.  He had earned 36½ Pension and Bonus Credits.  Since he had worked continuously and earned at least ½ Pension Credit between June 1, 2006 and May 31, 2008, his Past Pension and Bonus Credits are credited at the $107 Benefit Accrual Rate.  Fred's monthly Regular Pension benefit will be $3,906, calculated as follows:

Fred's Pension and Bonus Credits                                 36½
Benefit Accrual Rate                                                   x $107
Fred's Monthly Regular Pension Benefit                     $3,906

This amount is rounded up to the next whole dollar and assumes payment in the Single Life Pension form of payment, which is payable for Fred's lifetime with a minimum of 60 monthly payments.

Benefit Accrual Rates for Separate Periods of Employment

Your pension benefit may be calculated by using more than one Benefit Accrual Rate if:

Your Pension and Bonus Credits will be multiplied by the Benefit Accrual Rate in effect when you earned the Pension and Bonus Credits.

However, if you meet certain work requirements, your Past Pension and Bonus Credits may be multiplied by the Benefit Accrual Rate in effect when you leave Covered Employment, as indicated in the chart on page

16. For past Benefit Accrual Rates, see Appendix on page 38 or contact the Pension Department of the Fund Office for additional information about how to calculate your pension.

For example, the $107 Benefit Accrual Rate is the applicable rate in effect for Pension and Bonus Credits that you earn after June 1, 2008. You may have your Past Pension and Bonus Credits, even those earned before June 1, 2008, payable at the $107 Benefit Accrual Rate:

If you do not meet either of the work requirements, your pension will be calculated by using the rates in effect when you earned your Pension and Bonus Credits.

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Early Pension
Please note that not everyone is eligible for an Early Pension at age 50.  If you do not meet the work requirement of earning at least ½ Pension Credit between June 1, 1997 and May 31, 1999, or you did not work at least 1,000 hours in Covered Employment in two consecutive Plan Years between June 1, 1999 and May 31, 2004, then your Early Pension will be payable at age 51.

Early Pension Eligibility

You can receive an Early Pension as early as age 50 if you have at least 10 Years of Vesting Service or 10 Pension Credits. However, if you have been credited with Years of Vesting Service due to work for which no contributions were made to this Plan, to be eligible for an Early Pension (as early as age 50) based on Years of Vesting Service, you may need at least 10 Years of Vesting Service and five or more Pension Credits (see How you earn a pension).

Early Pension Calculation

Your monthly pension benefit will be based on your total number of Pension and Bonus Credits you have earned multiplied by the Benefit Accrual Rate associated with those Credits. It is calculated in the same manner as a Regular Pension, and then reduced for early retirement. This pension is reduced to allow payment for up to 5 additional years; therefore, it will not be increased when you attain age 55.

IMPORTANT!
The calculation of your Early Pension benefit is different depending on whether you have satisfied the work requirements for Pension and Bonus Credits earned after June 1, 1999.  If you satisfy the work requirement, your Regular Pension will be reduced by 6% per year (.050% per month) for every full year you retire before age 55, including those Pension and Bonus Credits earned before June 1, 1999.  If you do not satisfy the work requirement, Pension and Bonus Credits earned before June 1, 1999, are reduced using different factors.  You can meet the work requirement if you earn at least ½ Pension Credit between June 1, 1997 and May 31, 1999, or you work at least 1,000 hours in Covered Employment in two consecutive Plan Years between June 1, 1999 and May 31, 2004. 
Example:
Jack is not married and decided to retire at age 52 in June 2008.  He had earned 35 Pension and Bonus Credits.  Since he had worked continuously and earned at least ½ Pension Credit between June 1, 2006 and May 31, 2008, his Past Pension and Bonus Credits are credited at the current $107 Benefit Accrual Rate.  Jack's monthly Early Pension benefit will be $3,071, calculated as follows:

Jack's Pension and Bonus Credits                                                       35
Benefit Accrual Rate                                                                 x $107.00
Jack's Monthly Regular Pension Benefit                                   $3,745.00
Early Retirement Reduction (18%)                                            -$674.10
Jack's Monthly Early Pension Benefit                                       $3,070.90
Rounded                                                                                      $3,071

The 18% reduction factor is figured by using 6% for each of the three years Jack retired before are 55 (6% + 6% + 6% = 18%).  His Early Pension amount is rounded up to the next whole dollar and assumes payment in the Single Life Pension form of payment, which is payable for Jack's lifetime with a minimum of 60 monthly payments. 

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Disability Pension

See If You Become Disabled for information about the Disability Pension.

 

Deferred Pension

Deferred Pension Eligibility

You will be eligible for a Deferred Pension at your Normal Retirement Age if you have at least five Years of Vesting Service. However, if you leave Covered Employment, you can receive a Deferred Pension as early as age 50 if you have at least 10 Years of Vesting Service or 10 Pension Credits. However, if you have been credited with Years of Vesting Service due to work for which no contributions were made to this Plan, to be eligible for a Deferred Pension (as early as age 50) based on Years of Vesting Service, you may need at least 10 Years of Vesting Service and five or more Pension Credits (see How you earn a pension).

Deferred Pension Calculation

Deferred Pension benefits are calculated the same way as Regular or Early Pension benefits. You may refer to Appendix on page 38 or contact the Pension Department of the Fund Office for information about the Benefit Accrual Rate associated with each of your Pension and Bonus Credits.

 

Normal Retirement Age Pension

Normal Retirement Age Pension Eligibility

If you leave Covered Employment, you can receive a Normal Retirement Age Pension on or after the date you reach age 65 if you are vested. If you are not vested at age 65 and continue to work, you will be entitled to a Normal Retirement Age Pension upon retiring any time after your fifth anniversary of participation in the Plan.

Generally, you are vested if you have earned at least five Years of Vesting Service and you worked one or more hours after June 1, 1998 for an employer required to make contributions to the Plan. However, if before becoming vested, you incur any temporary Breaks in Service of one or more years, you must return to Covered Employment after this Break in Service and reestablish participation by working at least 870 hours in Covered Employment to become vested.

Normal Retirement Age Pension Calculation

Normal Retirement Age Pension benefits are figured the same way as Regular Pensions. However, your pension benefit will be based on the Benefit Accrual Rate you qualified for when you left Covered Employment.

Example:
Michael left Covered Employment on October 1, 2006 with 5 years of Vesting Service and 8 Pension and Bonus Credits.  At the time he left Covered Employment, the Benefit Accrual Rate was $100.  Michael was entitled to have his Past Pension and Bonus Credits credited at the $100 Benefit Accrual Rate because he had worked continuously and earned at least ½ Pension Credit between June 1, 2004 and May 31, 2006.  Michael, who is not married, applies for his pension at age 65.  His monthly pension benefit will be $800.

Michael's Pension and Bonus Credits                                                    8
Benefit Accrual Rate                                                                      x $100
Michael's Monthly Normal Retirement Age Pension Benefit              $800
 
This amount assumes payment in the Single Life Pension form of payment, which will be payable for Michael's lifetime with a minimum of 60 monthly payments. 

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Reciprocal (Partial) Pension

If you have worked in many different areas and participated in other laborers’ pension plans, you may be entitled to a Reciprocal (Partial) Pension from this Plan and other plans that have executed a reciprocal agreement with the Laborers’ International Union of North America (LIUNA).

You will be eligible to receive a Reciprocal (Partial) Pension from this Plan if you meet the following requirements:

The amount of your Reciprocal (Partial) Pension from this Plan is based on the Pension and Bonus Credits earned under this Plan.

You may not receive more than one Year of Vesting Service in any Plan Year (June 1 through May 31) for the purpose of determining eligibility. However, your Reciprocal (Partial) Pension benefit will be calculated based on the actual hours you worked during the Plan Year.

For more information about Reciprocal (Partial) Pension benefits from this Plan, contact the Pension Department of the Fund Office.

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