Pension Fund

The Local 825 pension plan is a defined benefit plan.

This means, if you have fulfilled age- and vesting-service requirements, at retirement you and your surviving spouse will receive a lifetime monthly benefit based on the Plan's benefit formula.

Benefits Vesting and Vesting Provisions Benefit Accrual Forms Updates Links FAQs

Benefits

Financial security in your retirement

The IUOE Local 825 Pension Fund helps you build toward a retirement benefit designed to complement Social Security.

This section contains highlights about the Pension Plan and provides forms and resources you may need. If you are thinking about retiring, contact the Funds Office to find out how to apply for your Pension benefits.

You must submit a written application in order to start payment of a pension benefit. Except for certain disability pensions, monthly payments begin no earlier than the first day of the first month following application receipt.

A complete set of retirement applications and related pension forms are available for your use on our Forms page. You will need to complete the relevant forms and provide them to the Funds Office.

Summary Plan Description (SPD)

Summaries of Material Modification

Vesting and Vesting Provisions

Although you accrue a monthly benefit by working for an employer obligated to contribute to the Pension Fund, you must vest your accrued benefit in order for a benefit to be paid.

As with benefit accrual provisions, vesting provisions have changed over the years. If you have worked at least one hour in covered employment on or after July 1, 1997:

You are eligible to receive a pension benefit at age 62 upon accruing five (5) years of Vesting Service;
You are eligible to receive a reduced pension benefit at age 55 upon accruing ten (10) years of Vesting Service;
You are eligible to receive a total (unreduced) or partial (reduced) disability pension benefit at any age prior to age 62 upon accruing ten (10) years of Vesting Service. A partial disability means you are unable to work as an Operating Engineer. If you are receiving a Social Security Disability Award, you are considered totally disabled.

(A participant who fails to accrue five (5.00) years of Vesting Service may nonetheless become entitled to receive a monthly pension benefit if he or she retires from covered employment after attaining the latter of age 65 or the fifth anniversary of the participant's commencement of participation in the Plan.)

At retirement there are various forms of payment options available. Subject to certain legal rights granted to a spouse, a participant can choose to receive a monthly pension payable over his or her lifetime only or choose an option which extends benefit payments beyond his or her lifetime to a surviving spouse and/or
beneficiary(ies). If choosing an option which extends benefit payments beyond a participant's lifetime, an actuarial reduction applies to pay for the cost of extending payments. The Plan does not provide for a lump sum distribution option.

Should you expire prior to starting a retirement benefit, your benefit is payable to your surviving spouse and/or beneficiary(ies) or your estate, provided you have accrued minimum Vesting Service.

Benefit Accrual

Benefit accrual provisions have changed over the years. For covered employment on and after January 1, 2011, you accrue benefits at the rate of 1% for every dollar contributed or due to be contributed up to a maximum of $75 per calendar year.

Example 1. An employer contributes $4,500 to the Fund on behalf of a Participant in 2011. The Participant is entitled to accrual equal to 1% of $4,500 or $45 per month at Normal Retirement Age (age 62).
Example 2. An employer contributes $9,000 to the Fund on behalf of a Participant in 2011. Although 1% of $9,000 equals $90, the Participant is entitled to only $75 per month at Normal Retirement Age because $75 is the maximum calendar year accrual.

Forms

Updates

As of January 1, 2011, the contribution dollar amount required to accrue the maximum per calendar year benefit is $7,500 ($7,500 x .01 = $75).

Medical Coverage after retirement
Are you eligible for health coverage after retiring? (See Pension Retiree Health Coverage)

Note: If you are planning to retire or are retired and eligible for health coverage, make sure to sign up for Medicare Part B a few months before your 65th birthday to avoid a lapse in medical coverage.

Update Your Beneficiary Designation
It is critically important that you periodically review your beneficiary designation and decide whether you wish to change it, for example, in the case of divorce or death.

Subject to certain legal rights of your surviving spouse, death benefits are payable to the beneficiary on record, regardless of a previous divorce or what may be in your will. You can make life easier for those who survive you by keeping your beneficiary designation up to date.

Links

PBGC
The Pension Benefit Guaranty Corporation (PBGC) protects the retirement incomes of nearly 44.3 million American workers in more than 31,000 private defined benefit pension plans.

Social Security
The Social Security Administration's Web site provides information about Retirement, Survivors and Disability Insurance Benefits, and Supplemental Security Income.

IRS
The Internal Revenue Service maintains a web site where you can download forms, look up laws and read about tax information.

AARP
AARP is a nonprofit membership organization dedicated to addressing the needs and interests of persons 50 and older.

FAQs

Frequently Asked Questions

What type of plan is the Pension Plan?

It is a qualified defined benefit plan. A qualified plan is one that meets specific requirements of the Internal Revenue Code. Qualified plans are afforded tax advantages. For example, participants pay no tax until they retire and begin receiving benefits. Also, qualified plans contain an anti-assignment provision, which prevents pension benefits from being reached by creditors. In a defined benefit plan, benefits are specified amounts payable monthly for the participant's life, however long you may live in your retirement years.

Can I contribute towards my pension?

How is my monthly pension benefit calculated?

Everyone's pension benefit is calculated individually. Depending on when you worked in covered employment, your benefit may be calculated based on credited service and/or the dollar amount of employer contributions. Your pension benefit is not related to your earnings.

For work performed	Value of employer contributions
prior to 1/01/04	converted to credited service, which is then multiplied by a specific value per credit when you last earned at least one-quarter year of credited service.
on or after 1/01/04 through 12/31/07	multiplied by 0.0135 (not to exceed $66 per month for any given calendar year).
on or after 1/01/08 through 12/31/10	multiplied by 0.0135 (not to exceed $75 per month for any given calendar year).
on or after 1/01/11	multiplied by 0.01 (not to exceed $75 per month for any given calendar year).

At retirement, your gross monthly benefit is equal to the sum of the above, increased by the single sum of $50. Upon request, you will be provided a detailed individualized pension statement showing your years of credited service along with a calculation of your gross monthly benefit and estimated survivor option amounts.

What if I become disabled?

To be eligible for a disability pension benefit you must accrue at least ten (10) years of Vesting Service, be less than age 62, and suffer a partial or total disability. Partial disability is the inability to work as an operating engineer. A partial disability benefit is calculated in the same manner as a participant who has attained age 62, except that the benefit amount is reduced by one-quarter of one percent for each month by which your retirement date precedes your 62nd birthday. Total disability is the inability to engage in employment as determined by the Social Security Administration and evidenced by the granting of a Social Security Disability Award.

When should I submit my application for a pension?

Generally, you should submit your application roughly two months prior to your retirement date. This allows time to review your documentation, calculate your benefit and send you your payment options. Prior to submitting your application, you must have determined your last date of employment and your retirement date. Retirement dates are the first of the month. Except for certain disability pensions, your retirement date can be no earlier than the first day of the first month following receipt of your application.

Can I receive my pension payment via direct deposit?

Is my pension benefit taxable?

Can I collect supplemental unemployment or supplemental accident and sickness benefits once I retire?

For more information

Call the Funds Office at (973) 671-6800.

Pension Fund

Financial security in your retirement

Pension Forms

Frequently Asked Questions

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Funds Office