For IPF:
dstupar@ipfweb.org
Phone: 1-888-880-8222
Fax: 202-347-7339

For IHF:
rdonovick@bacweb.org
Phone: 1-888-880-8222
Fax: 202-383-3905

620 F Street, NW
Washington, DC 20004
202.783.3788

About Us
 

 

Benefits Types

Q: What types of pension benefits are available?

A: Four types of pensions are provided under the Plan.

  1. Normal Pension
  2. Early Retirement Pension
  3. Disability Pension
  4. Deferred Vested Pension

In addition, the Plan provides for a lump sum Severance Benefit and Death benefits. Non-covered Masonry Employment may impact eligibility for these benefits.

Normal Pension

If you are covered by a Collective Bargaining Agreement, you are eligible to retire on a Normal Pension at the later of age 64 or the fifth anniversary of your participation and if:

  1. You attain Normal Retirement Age, work at least one hour after January 1, 1999 and (1) have at least 5 years of pension credit including at least 1500 hours of future service; or (2) have at least 5 years of vesting service, or
  2. 2. You attain Normal Retirement Age as defined in the Plan Rules while still employed.

The Normal Pension is a monthly pension based on your local union's employer contribution rate. The Rate/Benefit table illustrates the normal pension benefit amounts payable to you with 25 years of pension credits and the amount to be added to the benefit for each year of future service credit, which is granted in excess of 25 years.

Benefits based on more than 25 years of service

Any Participant who has accumulated more than one year of Future Service as of July 1, 1998 will receive additional credit towards his monthly benefit provided he has already accumulated more than 25 years of total Pension Credit.

Example: Bill has 20 years of past service credit and 18 years of future service credit. He has worked at the $1.00 contribution rate of his Home local through his retirement. As shown in the Rate/Benefit table based on the $1.00 rate and earning 38 years of future service, Bill would receive a normal pension of $879.00 per month determined as follows:

25 years @ $1.00 =
$578.00
$23.10 for 13 years of future service =
$300.30
 
$879.00


Example
: Bill delayed his retirement one more year. Instead of $879.00 he will receive $902.00 as follows:

25 years @ $1.00 =
$578.00
$23.10 for 13 years of future service =
$300.30
$23.10 for 1 more year earned =
$23.10
 
$902.00

Each year of subsequent Future Service Credit over 25 years, is added to the pension as earned.

 

Q: What is my applicable contribution rate?

A: In general, your pension benefit will be based on the highest contribution rate under which you earned at least 1500 hours of future service.

Your Home Local is the participating Local in which you earned the greatest number of hours of future service credit. If you leave the jurisdiction of your Home local and work in another local with a higher contribution rate you must earn 3 years (4500 hours) of future service credit in the other local for the higher rate to be used as the basis of your benefit. If you leave your home local for a local with a lower contribution rate there is no effect on your pension. If you work for the same contributing employer in more than one participating local in the same geographic area, it is treated as though all your work has been performed in the same local.

If you have not earned at least 1500 hours of future service at your highest contribution rate, then your benefit will be based on the weighted average of your last 1500 hours of future service.

Example: John is 64 and has 25 pension credits (including at least 1500 hours of future service). During his last 1500 hours prior to retirement, John's local collective bargaining agreement called for contributions of $.35 per hour and $.50 per hour. John worked under the $.35 rate for 500 hours and under the $.50 rate for 1000 hours. The weighted average contribution rate upon which John's pension is based is computed as follows:

500 hours x .35 =
$175
1000 hours x .50 =
$500
1500 hours =
$675

$675 divided by 1500 hours =
$.45 weighted average Contribution Rate.


Since John is 64 with 25 pension credits he is entitled to a normal pension of $295.00 per month.

Early Pension

You are eligible to retire on an Early Retirement Pension if you are at least 55, not yet eligible for a normal pension and:

  1. You have earned at least 5 pension credits including at least 1500 hours of future service with one hour after January 1, 1999, and
  2. You have earned at least 3/10 of a year (450 hours) of future service credit after attaining age 50, unless your failure to meet this requirement is due to disability.

Note: Early Retirement after age 60 is equal to a NORMAL PENSION.

The Early Retirement Pension prior to age 60 is adjusted downward from the Normal Pension amount, based on your age. It is the normal pension amount, reduced by 1/2 of 1% for each full month that you are younger than 60 when the early retirement pension begins. The reduction is due to the longer period of time that you will receive pension payments.

Example: Peter is 59 and retires with 25 pension credits. His benefit is based on a contribution rate of $.90 per hour. Peter's early retirement benefit would be computed as follows:

1. Normal Pension
Normal Pension to which Peter would be entitled if he were 64 =
$532.00
 
2. Early Retirement Reduction:
(i) No reduction for age 60 to 63
 
(ii) 12 (months younger than 60) x 1/2% =
6%
(iii) Reduction = 6% x $532.00 (.06 x $532.) =
$31.92
 
3.
Normal Pension:
$532.00
Early Retirement Reduction:
-31.92
Early Retirement Pension (or $501.00):
$500.08

In this example, Peter's early retirement pension would be $501.00 a month because pensions between whole dollar amounts are rounded to the next higher dollar. His benefit will be less if he chooses the Husband-and-Wife pension.

Disability Pension

You may retire on a Disability Pension if:

  1. You have not attained age 64, and
  2. You have at least 5 pension credits, including at least 1500 hours of future service including one hour after January 1, 1999, and
  3. You are totally and permanently disabled, and
  4. You have at least 150 hours of future service in the year of disability or the year prior to that year or at least 1500 hours of future service in the 5 calendar years preceding the date of disability, and
  5. You have not worked in Non-covered Masonry Employment.

The monthly Disability Pension is figured in the same manner as the Normal Pension. Regardless of your age at disability, your benefit will be calculated as though you were age 64. If you choose the Husband-and-Wife Disability Pension, your pension will be calculated under the Husband-and-Wife reduction factors. The Disability Pension will not be paid during the first five months of disability. This is the same waiting period as the Social Security Disability Pension. The Plan rules also require that retroactive pension payments not be made for more than 12 months prior to the date the disability application is received by the Fund office. Participants experiencing delays in receiving benefits from the Social Security Administration should apply to the Fund office while waiting for the Social Security Award to comply with the 12-month rule. Disability applicants over age 55 may apply for early retirement benefits prior to disability approval. Once the Social Security Award is received he may convert to a Disability pension if the date his disability commenced preceded the effective date of his Early Retirement pension. Early Retirement benefits for months before the Social Security Disability date are subject to reimbursement.

You are totally and permanently disabled if you have been awarded and continue to receive Disability Benefits from the Social Security Administration. The Trustees will be the sole and final judges of total and permanent disability and of your entitlement to a Disability Pension. If you apply for a Disability Pension you are also required to provide a medical statement from a physician, who indicates the nature of your disability and states that you are totally and permanently disabled from the trade.

If you lose your Social Security Disability Benefit before age 62, your Disability Pension will cease starting with the first month following loss of the Social Security paid benefit. If you lose your Disability Benefit after you reach 62, payments will continue even if you recover, but subject to the rules governing work after retirement.

Deferred Vested Pension

You become entitled to a Deferred Vested pension if you have one hour after January 1,1999 and at least 5 pension credits, including at least 1 year of future service credit, or 5 years of vesting service and you have not met the requirements for either a Normal or Early retirement pension, and have not worked in Non-covered Masonry employment.

It is called a "Deferred" Vested Pension because the actual pension payments will not begin, at the earliest, until you reach age 55. You may elect to receive the Deferred Vested Pension at any time after you are 55, but no later than age 70 1/2.

The amount of the Deferred Vested Pension is 100% of either the Normal Pension or Early Retirement Pension to which you would otherwise be entitled.

If you leave covered employment with a right to a Deferred Vested Pension payable after age 55, your pension will be based on the rate applicable when you left the Plan.

For example, suppose you are age 45 with 10 years of vesting service and you have 1500 hours under a contribution rate of $.40 per hour. If you leave covered employment now, when you apply, your pension will be based on the $.40 rate.

Lump Sum Severance and Pension Benefits

You are eligible for a Severance benefit after June 1, 1988 if you have 5 or more years of future service credit, are not vested, and have not worked in Non-covered Masonry employment.

The Severance benefit is equal to 100% of the contributions made by employers on your behalf and is payable after you incur a permanent break in service, become totally and permanently disabled, or attain age 64 and incur a one year break in service.

Note: A Lump Sum Severance benefit is not payable if you qualify for a normal, early, disability or deferred vested pension.

Generally, only monthly pension benefits with an actuarial equivalent of less than $10,000.00 can be paid in lump sum. Benefits with an actuarial equivalent of less than $3,500.00 will automatically be paid in a lump sum. A determination of whether your benefit is payable in a lump sum will be made at the time you apply. Your lump sum may be paid subject to tax withholding provisions or as a direct rollover to an Individual Retirement Account.

As plan benefits are solely employer funded they are considered taxable income. You should be aware that if you or your surviving spouse take the benefit in a lump sum the benefit will be subject to an automatic 20% Federal tax withholding unless it is directly rolled over into an IRA or other qualified retirement plan. You will receive additional information regarding this matter when you apply for a benefit.