Introduction

This is your Summary Plan Description (SPD) for the Laborers’ District Council Construction Industry Pension Plan as in effect on May 1, 2005.  This Plan was established to help you maintain your standard of living by providing you with a regular monthly income—in addition to Social Security and your personal savings—after you retire.

This Plan was formed as a result of Collective Bargaining Agreements and a trust agreement between the Laborers’ District Council of the Metropolitan Area of Philadelphia and Vicinity—which is comprised of Local Unions 57, 135, 332 and 413—and Employers, many of whom are affiliated with the Contractors’ Association of Eastern Pennsylvania and the General Building Contractors’ Association, Incorporated.  Copies of the applicable collective bargaining agreements may be obtained by participants and beneficiaries upon written request to the Plan Administrator, and are available for examination by participants and beneficiaries at the Fund Office and union halls.  A complete list of employers who sponsor the plan along with the union may be obtained by participants and beneficiaries upon written request to the Plan Administrator, and is available for examination by participants and beneficiaries at the Fund Office and union halls.

This booklet describes your rights and benefits under the Plan in plain, everyday language.  This SPD is intended to provide an overview of the Plan.  Specifically, this booklet:

q       Provides general information about the Plan;
q       Outlines the amount of the benefits provided by the Plan;
q       Shows examples of how the Plan works; and
q       Provides administrative information about the Plan. 

If there are any differences between the information in this booklet and the actual Plan document, the Plan document will prevail.

We encourage you to read this booklet carefully and share it with your family.  If you have any questions about the Plan, please contact the Fund Office.  For more information about the Plan, please contact:

  Mr. Alan R. Parham

Plan Administrator

Laborers’ District Council Construction Industry Pension Fund

1361 Ridge Avenue

Philadelphia, PA 19123

(215) 765-2014

Although the Trustees intend to continue the Plan indefinitely, they reserve the right to terminate the Plan or amend or eliminate any benefits offered under the Plan at any time in accordance with the law.  For more information on termination or amendment of the Plan, see Plan Termination.

Este libreto contiene un sumario en Espanol de La Industria De Trabajadores de Construccion, (Oficina del Fondo de Pension).  Si tiene alguna dificultad entendiendo alguna parte de este libreto, favor de ponerse en contacto con el Administrator de este fondo.  Sr. Alan R. Parham, Administrador de este Plan, tiene su oficina localizada en el 1361 Ridge Avenue, Philadelphia, Pennsylvania 19123.  Horas de servicio son de Lunes a Viernes, de las 9:00 a.m. hasta las 5:00 p.m.  Para mas información o asistencia también puede llamar por telefono la oficina del Administrador.  El numero es (215) 765-2014.

Glossary Of Terms

Active Participant

Any person who is working in Covered Employment, or who is available for and actively seeking work in Covered Employment, and who, in either case, had 500 or more hours of service in the preceding calendar year.

Annuity Benefit

A benefit in addition to your regular pension benefit which is defined as a lump sum amount payable at your retirement or other termination of employment.

Benefit Rate

In general, your pension Benefit Rate is $73.00.  Your Benefit Rate is payable monthly for each year of Benefit Service you've earned, up to a maximum of 30 years.  The maximum monthly benefit is $2,190.  Before May 1, 2005, the maximum monthly benefit was $2,160.

However, if you were not an Active Participant when benefits were increased on May 1, 1993, May 1, 1997, May 1, 2000, May 1, 2002, or May 1, 2005, a different Benefit Rate or Service Limit may apply to past Credited Service.  Here is a history of the increases:

In general, to have the above increases applied to your Past Service Credit, you must have been an Active Participant under the terms of the Plan on the effective dates of each increase.  Contact the Fund Office to find out what your appropriate benefit rate and service limit is, if you were not an Active Participant on the effective date but returned to active status at a later time.

May 1, 2005 Increase For Pensioners

Effective May 1, 2005, the monthly pension benefit payable to any persons who were entitled to receive a pension benefit for the month of April 2005 has been increased.  The amount of the increase is equal to one-half of 1% for each full year between the date that pension benefits commenced and May 1, 2005 (subject to a maximum value of 10%) times the pension benefit for the month of April 2005.  Further, if you began receiving your pension prior to May 1, 1993, your pension will be increased an additional $10.00 per month.

Benefit Service (also referred to as Credited Service)

The combined total of any Past Service and Future Service.

Break-In-Service

Interruption of service resulting in the loss of previously earned Benefit Service.

Collective Bargaining Agreement

Any labor agreement between a Contributing Employer and the Union representing employees of that Employer under which the Employer is obligated to make Contributions to the Pension Fund.

Contributing Employer

An Employer who has a Collective Bargaining Agreement with the Union that requires periodic contributions to be made to the Pension Fund.  The Union, the Pension Fund, and other benefit funds may also be Contributing Employers for their employees.

Contributions

Payments made to the Pension Fund by a Contributing Employer in accordance with the terms of a Collective Bargaining Agreement or any participation agreement.

Covered Employment

Any employment in the Construction Industry as a Laborer between January 1, 1948 and January 1, 1963, and employment on or after January 1, 1963 for which your Employer was obligated to make contributions to the Pension Fund on your behalf.

Disqualifying Employment

Employment of a pensioner in the same trade or craft and in the same geographical area covered by the Plan at the time the Pensioner retired.

Employee

Any employee in Covered Employment.  The term "employee" does not include officers or directors of a corporation or a partner or owner of a business organization that is a Contributing Employer.

Future Service

Service on or after January 1, 1963 for which an Employer made contributions to the Pension Fund on your behalf.

Normal Retirement Age

Age 65 or your age when you complete five years of participation under the Plan, if older.

Past Service

Service in Covered Employment between January 1, 1948 and January 1, 1963.

Pension Fund

The trust fund established and administered to provide pension benefits to participants of the Plan.

Pensioner

A person who has terminated Covered Employment and who has been approved by the Trustees as eligible to receive monthly retirement benefits under the Plan.

Plan

The Laborers’ District Council Construction Industry Pension Fund.

Trustee

People who are acting as Employer Trustees or Union Trustees under the Trust Agreement.

Union

Any local union affiliated with the Laborers’ District Council of the Metropolitan Area of Philadelphia and Vicinity, and the District Council itself.

Vested

You are vested if you have completed at least five years of Benefit Service and you earn at least one hour of service under the Plan after May 1, 1998.

Plan At-A-Glance

Am I Eligible To Participate In The Plan?

You are an eligible participant in the Plan if an Employer is required to make contributions to the Pension Fund on your behalf.

How Do I Qualify For Benefits?

You are eligible to receive pension benefits if you meet any of the requirements shown in the chart below:

 *The Thirty and Out provision was changed to Twenty-five and Out effective May 1, 2002.  You must have been an Active Participant under the terms of the Plan on May 1, 2002 to be eligible for Twenty-five and Out.  Otherwise, the Thirty and Out provision applies.

 

**You must be totally and permanently disabled as determined by the Board of Trustees.

             You can also qualify for a Deferred Vested Benefit if you leave Covered Employment before you are eligible for a Normal Retirement, Early, or Disability Retirement Benefit , but after you become Vested.  Your pension would be payable at your Normal Retirement Date or, on a reduced basis, after your Early Retirement Date.

How Is My Pension Calculated?

Your pension is calculated according to a formula based on your Benefit Service and your Benefit Rate(s).  The Benefit Rate as of May 1, 2005 is $73.00 (if you had a Break in Service, other rates may apply prior to 2005).  In most cases, if you begin receiving your pension before age 65, it may be reduced to account for the longer period of payment.

How Is My Pension Paid?

Generally, your retirement benefits will be paid based on your marital status at the time your benefit payments begin.

q       If you are married (for at least one year at the time your pension begins):

--You will automatically receive your pension in the form of a Joint and Survivor Annuity. Under this type of annuity, you receive a reduced pension throughout your lifetime.  Then, if you die before your spouse, he or she will receive a lifetime pension equal to one-half of your pension.  However, you may elect an alternate payment form with your spouse’s written, notarized consent.

q       If you are not married (when your pension begins):

--You will automatically receive your pension as a Life Annuity. There are two types of Life Annuities:

--A Life Annuity with 60 Payments Guaranteed; and

 

--A Regular Life Annuity.

        Life Annuity With 60 Payments Guaranteed 

If you are eligible for Normal Retirement or Early Retirement Benefits, or you are eligible for a Deferred Vested Benefit and you have at least 15 years of Benefit Service, you will receive a Life Annuity with 60 Payments Guaranteed.  Under this form of payment, you receive a pension throughout your lifetime.  If, however, you have received less than 60 payments at the time of your death, the remaining monthly payments will be made to your beneficiary.

 

        Regular Life Annuity 

In all other cases, you will receive your pension as a Regular Life Annuity.  Under this type of annuity, you receive your pension throughout your lifetime. After your death, no further benefits will be paid.

If you wish, you may elect an alternate payment form at any time before your pension begins.

What Happens To My Pension If I Die Before I Retire?

If you die before your pension begins, but after you are Vested and have been married for at least one year, your spouse is eligible to receive a Surviving Spouse Pension..

If you are at least age 55, your spouse's pension begins immediately and continues throughout the remainder of his or her life.  The amount of your spouse's benefit is equal to one-half of the pension you would have received if you had retired on the date of your death and had begun receiving your pension in the form of a Joint and Survivor Annuity.

If you are under age 55, your spouse's pension begins on the first day of the month following the date you would have reached age 55 and continues throughout the remainder of your spouse's life.  The amount of your spouse's benefit is equal to one-half of the pension you would have received if you had left Covered Employment on the date of your death and had begun receiving your pension in the form of a Joint and Survivor Annuity when you reached age 55.

What Happens To My Pension If I Die After I Retire?

            If you die after you retire and you are receiving your pension in the form of a Joint and Survivor Annuity, your spouse or beneficiary is eligible to receive a lifetime pension. This pension is equal to one-half of the pension you were receiving at the time of your death.

If you are receiving your pension in the form of a Life Annuity with 60 Payments Guaranteed, your beneficiary receives the remainder of your guaranteed pension payments.

            If you die after you retire and you are receiving your pension in the form of a Regular Life Annuity, payments will stop at your death.

            In certain cases, your beneficiary may be eligible to receive a $5,000 Lump-Sum Death Benefit.

How Do I Claim My Benefits?

You must file a written claim for benefits with the Plan Trustees at least three months before the date you plan to retire.  The Trustees will review your claim and notify you as to the benefits which you are eligible to receive.

In order to claim your benefit, you will need to provide your and your spouse’s birth certificates, along with your marriage license.  If you are widowed, you must provide your spouse’s death certificate, and if you are divorced, you will need to provide your divorce decree.  If you have never been married, you will be asked to complete and sign an affidavit to that effect.  The affidavit must be notarized if it is completed somewhere other than the Fund Office.

Earning Service

Your Benefit Service is equal to the sum of your Past Service Credit and your Future Service Credit.

Past Service Credit

You receive Past Service Credit depending on how many hours you worked between

January 1, 1948 and December 31, 1962, as follows:

The Trustees will consider Union membership with the last date of initiation—as shown on the records of the Laborers’ International Union of North America or Locals 57, 135, 332, 413, or 420—as evidence of Covered Employment.

Future Service Credit

You receive Future Service Credit depending on the number of hours you work—under Covered Employment—during each calendar year after 1962, in which contributions are made to the Fund on your behalf, as follows:

            In some cases you will also earn Benefit Service if you are:

 

q       Entitled to receive benefits under Workers' Compensation;

q       Receiving disability benefits from a Laborers’ Health and Welfare Fund which receives contributions from a Contributing Employer; or

q       Serving in the military.

 

You will be credited with 40 hours for each full week of such absence.  However, you will not receive more than one-quarter year of Benefit Service during one calendar year while on disability.

You will not receive Benefit Service for:

q       Future service for a non-contributing Employer;

q       Service after termination of this Pension Plan; or

q       Service before a Break-in-Service.

Break-In-Service

You incur an interruption of service if you earn less than 500 hours of service during any calendar year.  You will incur a break-in-service if:

q       You are not Vested; and

q       The number of interruptions of service you incur is five or more years.

For example, let's assume that you have four years of Benefit Service before your absence begins.  If you fail to earn at least 500 hours of service for six years, you will incur a break-in-service because the number of years of interruption in service is greater than five as follows:

If you incur a Break-in-Service, you lose all of the Benefit Service you had earned before the Break-in-Service began.

If you are Vested, you will not incur a Break-in-Service, regardless of how long your service is interrupted.  This means that you cannot lose your earned Benefit Service under any circumstances once you become Vested.

Qualifying For Benefits

This section describes the eligibility requirements for each type of pension benefit under the Plan.

Normal Retirement

You are eligible to receive a Normal Retirement Benefit from the Plan if you retire, as an Active Participant, at or after age 65 and have at least five continuous years of participation in the Plan.

Reduced Early Retirement

You become eligible to receive a Reduced Early Retirement Benefit from the Plan if you retire between ages 55 and 62 and have at least 15 years of Benefit Service.

Unreduced Early Retirement

You become eligible to receive an Unreduced Early Retirement Benefit from the Plan if you retire at any age and have at least 25 years of Benefit Service or if you retire after age 62 with at least 15 years of Benefit Service.

Disability Retirement

You are eligible to receive a Disability Retirement Benefit if you have at least 15 years of Benefit Service and the Board of Trustees determines that you are permanently and totally disabled.

Deferred Vested Benefit

You are eligible to receive a Deferred Vested benefit if you leave Covered Employment after you have become Vested.  This benefit will be payable when you reach your Normal Retirement Age (age 65).

If you have earned ten or more years of Benefit Service, you may elect to receive an Early Deferred Vested Benefit when you reach age 55.  In this case, your pension will be reduced to reflect the longer expected period of payment.

Calculating Your Benefits

Your benefits are calculated according to a formula based on your Benefit Service and the Benefit Rate.  In this section we will show you how each type of benefit under the Plan is calculated.  All examples assume you were an Active Participant on May 1, 1993, May 1, 1997,  May 1, 2000, May 1, 2002, or May 1, 2005, or you became an Active Participant after those dates.

Normal Retirement Benefit

Your Normal Retirement Benefit is calculated using the following formula:

            The maximum number of years of Benefit Service that we can take into account in calculating your Normal Retirement Benefit is 30.  If you have more than 30 years of Benefit Service and different Benefit Rates apply to you, the Benefit Service applied to your lowest Benefit Rate will be reduced first.

Let's look at an example of how this formula works.  We will assume that you retire on December 1, 2005 at age 65, after you earn 32 years of Benefit Service.  Your monthly Normal Retirement Benefit will be:

*Even though you had accumulated 32 years of Benefit Service, we must reduce this number because the maximum number of years of Benefit Service that is used to determine your pension benefit is 30.

 

q       Adjustment For Survivor's Benefits

If you are married at the time you retire, your pension will be adjusted for survivor's benefits.  This adjustment is discussed in more detail in the “How Your Benefits Are Paid” section of this SPD.

Early Retirement Benefit

Your Early Retirement Benefit is calculated differently, depending on how many years of Benefit Service you have when you retire. 

q       If You Have At Least 25 Years Of Benefit Service

If you retire with at least 25 years of Benefit Service, your Early Retirement Benefit is equal to the Benefit Rate ($73.00) multiplied by your years of Benefit Service up to a maximum of 30 years.  Therefore, if you retired after May 1, 2005 with 27 years of Benefit Service, your pension would be:

q       If You Have Less Than 25 Years Of  Benefit Service

If you retire with less than 25 years of Benefit Service and are under age 62, your Early Retirement Benefit will be reduced by an early retirement factor.

The early retirement factor is equal to 100% less one-half of one percent for each month that your retirement age precedes age 62.  For example, if you retire at age 60 (24 months before age 62), your pension will reduced by 12 percent (½% x 24).  Your Early Retirement Benefits are determined using the following formula:

Let's take a look at how this can affect you if you wish to retire early.  We will assume that you retire in the year 2005 at age 60 with 20 years of service.

Disability Retirement Benefit

Your Disability Retirement Benefit is calculated the same as a Normal Retirement Benefit, but is based on your Benefit Service at the time you became disabled.

For example, let's assume you become disabled in 2005 with 16 years of Benefit Service.  Your Disability Retirement Benefit would be:

Payment begins on the first day of the sixth month following the onset of your disability or, if later, the first day of the month following the date you apply for your benefit, provided that the Trustees approve your application.

Deferred Vested Benefit

If you qualify to receive a Deferred Vested Benefit when you reach age 65, your pension is calculated like a Normal Retirement Benefit.

If you are eligible and elect to receive your Deferred Vested Benefit before age 65, your pension is reduced to reflect the earlier commencement and the expected longer period of payment.  Your pension is reduced by one-half of one percent for each month that your first payment date precedes your 65th birthday.  For example, if you elect to begin receiving your Deferred Vested Benefit at age 62, your pension is reduced by 18 percent (½% x 36 months).

Partial Pensions

You may be eligible for a Partial Pension if you have service under more than one pension plan.  The plan(s) in which you accrued additional service is called a related plan.  A related plan is defined as a plan that has executed a reciprocal agreement to which the Laborers' District Council Pension Fund is a party, and that the Trustees, at their discretion, recognize as a related plan.

The Plan provides Partial Pensions if: 

q       You do not have enough service credit for any type of pension—as a result of being employed under several different pension plans; or

 

q       Your pension would be less than the full amount because of employment under several plans. 

The service credit you earn under a related plan is called “Related Service Credit.”  Your Related Service Credit is added to your Benefit Service under this Plan and the total is referred to as your “Combined Service Credit.”

You are eligible for a Partial Pension if:

q       You would be eligible for any type of pension under this Plan if your Combined Service Credit was treated as Benefit Service;

 

q       You have at least two years of Benefit Service under this Plan;

 

q       You are eligible for a Partial Pension from a related plan and you are eligible for a Partial Pension from the plan under which you are covered immediately before you retire; and

 

q       You are not eligible for a pension (other than a Partial Pension) from a related plan.

Your Partial Pension is calculated using the following formula:

Let's look at an example of how this formula works.  We will assume that you are eligible to receive a Partial Pension, and that you’ve been covered under this Plan or related plans since January 1, 1980.  We will also assume you have four years of Benefit Service under this Plan, and your Combined Service Credit is 20 years.