Frequently Asked Questions.
Pension Recipient.
Pension Payments
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QUESTION: When is my pension check mailed?
ANSWER: Pension checks are due the 1st of the month or the first business day of the month (if the 1st falls on a weekend or holiday). Pension checks are mailed on the last day of the month (even if the Fund Office is closed that day); e.g., your June 1st pension check is mailed on May 31st. Please note that you are paid in advance for the following month; e.g., your June 1st check is for the month of June. -
QUESTION: What if I do not receive my pension check?
ANSWER: It can take five to seven (5-7) working days for mail delivery. If you have not received your pension check by the 7th of the month, call the Fund Office to report your check as missing, as it may have been returned to the Fund due to an unreported address change or held by the Fund to obtain required Annual Statement. You will need to complete an Indemnity Agreement, so that a stop payment can be placed on the missing check and a replacement can be issued. -
QUESTION: Do pension checks have an expiration date?
ANSWER: Yes. Checks are only valid for 90 days, please cash or deposit your checks within 90 days or return the expired check to the Fund Office for replacement. -
QUESTION: What if I want direct deposit of my checks?
ANSWER: You may choose to have your check directly deposited into your bank account by completing a Direct Deposit Authorization Form and returning it to our office. Before your direct deposit can begin, your information must be tested. It can take one to two months before the direct deposit is activated. In the meantime, your check will continue to be sent by regular mail. You will be sent written confirmation of your first deposit to a new account. -
QUESTION: When does the direct deposit transfer occur?
ANSWER: Your pension benefits are transferred to your bank by the 1st of every month. However, your bank may not post the amount to your account until the first "banking" day of the month. Weekends and holidays are generally not considered "banking" days. Please check with your bank regarding their policy for posting direct deposits. -
QUESTION: What if my direct deposit is not credited to my account?
ANSWER: If the Fund advises you that your direct deposit has begun and your deposit was not made by the end of the first banking day of the month, verify your account number and the bank transit ABA number with your bank, then call the Fund Office. If your account number or ABA number changes, then you will need to complete a new Direct Deposit Authorization Form. -
QUESTION: Will I receive a monthly receipt if I am on direct deposit?
ANSWER: No. You will not receive a monthly receipt from the Fund, but you will be notified if your pension amount changes. Each February you will receive a 1099-R form showing your annual earnings and Federal Withholding Taxes from the previous year. -
QUESTION: Will I receive cost of living increases on my pension?
ANSWER: No. There are no automatic increases provided by the pension plan. However, the Board of Trustees may periodically grant increases, at their own discretion. You will be notified of any increase in your pension. -
QUESTION: Can I cash out my pension or receive one big payment instead of monthly pension payments?
ANSWER: No. Pension benefits are payable in monthly payments only. If the actuarial value of your pension was under $5000, you would have been automatically approved for and paid a Small Benefit Payment at the time of application. See additional information under Can I take a loan from my pension?
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New Pension Recipients
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QUESTION: When will I receive my first pension check?
ANSWER: Your application must be completed and approved by the Pension Committee of the Board of Trustees prior to issuing your first pension check. Once you receive your approval letter, you can expect the first pension check to be sent to you by regular mail, retroactive to your effective date before the end of the current month.
All future checks are sent by regular mail on the last day of the month. Please note that you are paid in advance for the following month; e.g., your June 1st pension check is mailed on May 31 (even if the Fund Office is closed that day). The June 1st check is for the month of June.
If you elected your pension check to be directly deposited into your bank account by completing a Direct Deposit Authorization Form and returning it to our office, your information must be tested and your first direct deposit will occur on the second month after you receive your first check. In the meantime, your check will continue to be sent by regular mail e.g., you receive retroactive payment for May 1 effective date on May 25th, followed by the June 1st pension check, direct deposit will commence with the July 1st payment. You will be sent written confirmation of your first deposit to a new account. -
QUESTION: If elected payment under the Partial Lump Sum Option, how will that payment be issued?
ANSWER: Partial lump sum payments can be paid directly to the pensioner, minus the IRS required 20% federal withholding taxes, or rolled over into an IRA account. The payment can also be split up, with a portion of the payment rolled over into an IRA account and the remainder paid directly to the pensioner, minus automatic 20% federal withholding taxes. This election can be changed prior to the issuance of the partial lump sum payment, after receipt of your 6th pension check, by completing a new Rollover Election Form.
If paid directly to the pensioner, the partial lump sum payment will be issued in the same manner as the monthly payment, either by check or direct deposit to your designated bank account. If rolled over into an IRA account, the partial lump sum payment will be issued by check made out to the designated account and mailed directly to the pensioner via certified mail. See additional information under When is my pension check mailed? -
QUESTION: What if the payment options I elected calls for a change in the amount (such as the Partial Lump Sum Option or Level Income Option)?
ANSWER: If your payment option results in your initial monthly amount being decreased in the future, the Fund will automatically make adjustments as outlined in your original approval letter. No further announcement or notification will be sent when the change occurs. For example, if you elected the Partial Lump Sum Option, your approval letter would specify your monthly amount for checks 1 through 6, your adjusted amount for checks 7 through life and your partial lump sum check amount. The change will automatically occur on check 7 and the partial lump sum check or direct deposit will be issued at that time.
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Address
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QUESTION: What if I change my address?
ANSWER: It is important that we have your complete and correct address, including your apartment number and 9-digit zip code. You must advise our office of all changes in writing, either in a letter or on an Address Change Form. Please note that the Fund does not use the U.S. Post Office mail forwarding service; therefore, if you do not advise the Fund Office of your new address, mail from the Fund Office (including checks) will not be forwarded and will be returned to our office. If a new address is provided by the Post Office, then an Address Change Form will automatically be mailed; however, you can avoid delays by notifying the Fund when you move. -
QUESTION: What if I change my address temporarily?
ANSWER: Since the Fund does not use the U.S. Post Office mail forwarding service and if you do not advise the Fund Office of your temporary address, then mail from the Fund Office (including checks) will not be forwarded and will be returned to our office. You must advise our office of temporary changes in writing, either in a letter or on an Address Temporary Change Form, indicating a termination date for the temporary address. The Fund Office will reinstate your permanent address on the requested termination date. -
QUESTION: What if I do not advise the Fund of my address change?
ANSWER: Every pension recipient, including those on the Direct Deposit Program, must keep the Fund Office advised of all address changes. If the Fund Office does not know where you are living, your pension benefits (including direct deposits) may be held at the Fund Office until you notify us in writing of your whereabouts, either in a letter or on an Address Change Form or on an Address Temporary Change Form. Since the Fund does not use the U.S. Post Office mail forwarding service; if you only change your address with the U.S. Post Office, mail from the Fund Office (including checks) will not be forwarded and will be returned to our office. -
QUESTION: What if I move out of the United States?
ANSWER: The Fund will mail pension checks outside the United States; however, we can only direct deposit to financial institutions within the United States. If you move to another country, you must complete a Citizenship Form. There are special federal income tax withholding requirements for non-residents that the Fund Office will determine after your declare your citizenship. For example, non-resident US citizens must have federal income tax withholding deductions from their pension payments, if they receive an amount over the annual IRS threshold. Whereas, non-resident aliens (or non-US citizens, collecting pension while residing in another country) may be required to have an automatic federal income tax withholding deduction or be allowed to waive withholding, as allowed under the income tax treaty between the United States and that country, if elected on IRS Form W-8BEN, explained in the IRS Form W-8BEN Instructions. If you move outside the United States, please contact the Fund Office for more information about the tax withholding requirements.
Annual Statement
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QUESTION: Do I need to complete an Annual Statement form every year?
ANSWER: Yes. Every February, pension recipients are sent an Annual Statement to complete and send back to the Fund Office by May 15th. Pensioners with direct deposit will receive a separate mailing with the Annual Statement form. This form is sent every year to verify you received all of your pension checks from the prior year, to verify your mailing address, to update your file with any new information, and to verify that you are not working in any employment prohibited by the Plan rules. Summary About the Kinds of Work Not Allowed is also sent every year and is included with this mailing.
Section A of the Annual Statement must be completed, Section B should be completed only if necessary to explain NO answers in Section A, and Section C must be signed by you and your spouse. Signatures must be notarized by a Notary Public. The Fund Office has a notary on staff if you would like to come into the Fund to complete the form. Valid photo identification is required.
If the form is not received by the end of March and April, the Fund Office will send a reminder notice with your April and May pension check or for direct deposits, via separate mailing. Please contact the Fund Office if you have any questions or need help completing the form. -
QUESTION: What if I cannot physically appear before a Notary Public to complete my Annual Statement form?
ANSWER: If you are physically unable to appear before a Notary Public, you can use a revised Annual Statement with Witnesses form and have two witnesses certify your signature. These two witnesses cannot be your relatives and must list their contact information on the form. Please contact the Fund Office if you have any questions or need help completing the form.
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Deductions (Taxes & Retiree Medical Plan Premiums)
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QUESTION: Are my pension benefits taxable?
ANSWER: Yes. The Fund will provide you with updated tax information each February. Generally, the income you receive from the Fund is taxable federally, but not by the State of Illinois. Whether you have to pay federal income tax depends on the total amount of your taxable income. You should discuss your tax situation with a professional tax consultant. -
QUESTION: Can State taxes be deducted from my pension payments?
ANSWER: No. The Fund does not deduct any taxes for the State of Illinois or for any other state. Whether you have to pay state income tax depends on the total amount of your taxable income and the tax laws in your state of residence. You should discuss your tax situation with a professional tax consultant. -
QUESTION: What if I want to change my federal withholding tax?
ANSWER: Your original choice on federal income tax withholding will remain in effect until you file a new election on an IRS W-4P Withholding Certificate with our Fund. If you submit a change, it will be in effect no later than the January 1, April 1, July 1, or October 1 after we receive the form, provided we receive it at least 30 days before the date. -
QUESTION: When will I receive my 1099-R tax return?
ANSWER: Each February you will receive a 1099-R tax return form showing your annual earnings and Federal Withholding Taxes from the previous year. 1099-R tax return forms are mailed no later than January 31st. -
QUESTION: Can I terminate deductions of Laborers' Welfare Fund Retiree Medical Plan premiums from my pension checks?
ANSWER: Yes. You can terminate your Retiree Medical Plan coverage from the Laborers' Welfare Fund and stop the deduction of premiums from your pension checks or direct deposits. Once terminated, you cannot recommence Retiree Medical Plan coverage. If terminated, you may be eligible for coverage under the Retiree Basic Medical Coverage Plan. Please contact the Fund Office to verify your eligibility and obtain a new election form.
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Death Notifications
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QUESTION: What if a pensioner or spouse passes away?
ANSWER: It is very important that family members immediately notify the Fund Office of a pensioner or spouse's death. Your pension benefits will terminate with your death; however, there may be additional benefits payable from either the Laborers' Pension Fund or the Laborers' Welfare Fund. When a pensioner's spouse dies, the pensioner's benefit may increase under the Pop-Up Provision of the Husband-and-Wife Pension.
Your family should return any uncashed pension checks to the Fund Office. If issued prior to your death, these uncashed checks will be reissued to your designated beneficiary.
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Beneficiary Changes
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QUESTION: Can I terminate election of the Husband-and-Wife Pension or designate a new spouse as my beneficiary for this option?
ANSWER: No. Once you receive your pension, you cannot terminate your election of the Husband-and-Wife Pension. Your Qualified Spouse, to whom you were married at the time of application, will remain your beneficiary for this option, even if you divorce after retirement. If you should remarry after retirement, your new spouse cannot be added to your pension benefit and cannot be designated as beneficiary for this option. -
QUESTION: Can I change any other beneficiary designation?
ANSWER: Yes. You can change your beneficiary for the 60-Month Post-Retirement Pension, if elected at retirement. Please contact the Fund Office to verify your election of this option and obtain a new beneficiary form.
You may be able change your beneficiary for the 60 Payment Guarantee which is included with all pensions. If you elected payment under the Husband-and-Wife Pension, then your Qualified Spouse will be the Primary Beneficiary for any remaining payments due upon your death. If you elected payment under the 60-Month Post-Retirement Pension, then your designated beneficiary will be the Primary Beneficiary for any remaining payments due upon your death. You can change the Primary Beneficiary for the 60-Month Post-Retirement Pension and your Contingent Beneficiary choices. Contingent Beneficiaries will be paid any remaining benefits, if the Primary Beneficiary is no longer living. Please contact the Fund Office to verify your election and obtain a new beneficiary form.
You can change your beneficiary for death benefits from the Laborers' Welfare Fund, if included with your pension. See additional information under Do I have death benefits from the Laborers' Welfare Fund? -
QUESTION: Do I have death benefits from the Laborers' Welfare Fund?
ANSWER: All pensioners who retired prior to May 31, 2002 have a $4000 death benefit with the Laborers' Welfare Fund. You can change your beneficiaries for this benefit by completing the Death Benefit Before 5/31/02 Beneficiary Form.
For pensioners who retired after June 1, 2002, eligibility for the death benefit is based on eligibility for the Retiree Medical Plan. If you retired after June 2002 and were eligible for the Retiree Medical Plan, you have a $6500 death benefit with the Laborers' Welfare Fund. You can change your beneficiaries for this benefit by completing the Death Benefit After 6/1/02 Beneficiary Form.
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Work & Disqualifying Employment
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QUESTION: What if I return to work?
ANSWER: There are rules restricting your employment after retirement. Generally, you cannot work in the construction industry and receive a pension from our Fund. You should contact the Fund Office immediately if you are considering returning to work. Annually, you receive a Summary About the Kinds of Work Not Allowed which provides a more detailed explanation of these restrictions and the penalties for suspension of your pension to return to Disqualifying Employment. -
QUESTION: Can I request approval of job before returning to work?
ANSWER: Yes. The Fund Office and Pension Committee of the Board of Trustees can review jobs prior to return to your work and determine whether it would be considered Disqualifying Employment. To request a determination, you and your potential employer must complete employment questionnaires called Disqualifying Employment Determination Forms and when possible provide a detailed job description. Contact the Fund Office for additional information. -
QUESTION: Will I be penalized for returning to work in Disqualifying Employment?
ANSWER: Yes. There are a number of Laborers' Pension Fund and Laborers' Welfare Fund penalties for returning to work in Disqualifying Employment. Please review the Summary About the Kinds of Work Not Allowed which provides a more detailed explanation of Disqualifying Employment and the penalties for suspension of your pension or contact the Fund Office for specific information. -
QUESTION: Will my Retiree Medical Plan coverage stop if I return to work?
ANSWER: Yes. The Laborers' Pension Fund will terminate pension checks and the Laborers' Welfare Fund will suspend your Retiree Medical Plan coverage upon your return to work in Disqualifying Employment.
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General Information
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QUESTION: What if I am no longer able to handle my financial affairs?
ANSWER: It is important that you have someone contact our office if you become unable to cash your pension checks or handle your financial affairs. In such cases, your desired representative can be designated as either a Power of Attorney or Guardian of your financial affairs. Please note that all Power of Attorney Form and Guardianship papers must be reviewed by the Fund Office before anyone other than the pension recipient is authorized to endorse pension checks on their behalf. -
QUESTION: Can I take a loan from my pension?
ANSWER: No. Loans are not available from the Fund. The employer contributions for your employment cannot be withdrawn or transferred out of the Fund. Assignment of benefits is not allowed, you may not transfer or promise your pension benefits to anyone or use it as collateral for a mortgage or other loan until you receive monthly payment of your benefits. -
QUESTION: Does the Fund require that I pay union dues after retirement?
ANSWER: No. Your pension benefits and retiree medical coverage will be based on your employment history and eligibility does not require payment of dues to your union. When you retire, the Fund will notify your Local Union and you may receive information about continuing your union membership and participation in union activities for reduced retirement dues. Please contact your Local Union office for more information.
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