Depending on when (what age) you are planning to retire, you must meet different requirements. For most currently active members, the minimum requirements for each pension type are as follows:
Regular Retirement Benefit
Early Retirement Benefit
This pension benefit allows you to retire earlier in life, but the earlier you take it, the more your benefit is reduced. Early Retirement benefits are reduced 1/4 % for each month you retire under age 60.
Special Service Retirement Benefit
This type of retirement is the goal of many laborers. Special Service Retirement allows you to retire at an early retirement age, but without the early retirement reduction.
Disability Pension Benefit
Hopefully, you will not need to retire under the disability provisions of the plan. However, if you do become disabled, you may be able to receive Disability Pension Benefits. These benefits are automatically recalculated to Early Retirement when you reach age 53*. The Fund offers two different types of Disability Pension Benefits: 1) Occupational and 2) Permanent and Total. Occupational Disability Pension Benefits pay 50% of your base benefit, while Permanent and Total Disability Pension Benefits pay 75%.
* To be eligible for Regular Retirement at age 60, Early Retirement at age 53, or Special Service Retirement at age 53, you must have at least 500 hours of contributions at the $1.70 contribution rate (effective May 1995) and an effective date of January 1, 1996 or after. If you do not meet these requirements, Regular Retirement is age 62, while Early Retirement and Special Service Retirement is age 55. Additionally, if you do not have 500 hours in 1980 or after, you must be age 65 to receive a Regular Retirement Benefit. Also, if you do not have 500 hours at the $0.30 rate or higher (effective November 1973), you must be age 60 to receive an Early Retirement Benefit. (You may also be eligible for a Regular Retirement benefit if you are Age 65, with 5 years of participation in this Plan, and you are not under a break in service. This is referred to as Accrued Vested.)
** Ten (10) vesting credits are required if you have not accrued at least 500 hours at the $1.70 contribution rate.
*** The term “Permanent and Total Disability” shall mean a condition of an employee which the Trustees find on the basis of medical evidence renders the Employee wholly disabled by bodily injury or disease and will thereby permanently, continuously and fully prevent the Employee, for life, from performing work as a laborer in the industry: provided, however, no Employee shall be deemed to be permanently and totally disabled for the purposes of this Plan if the disability results from participation in a felonious act, an intentionally self-inflicted injury or service in the armed forces of any country.
The Pension Fund offers multiple payment options from which you must choose one. The number of options depends on your marital status and pension type. It is important to select the option that works best for you and your family or financial situation. Items you may want to consider when selecting the best option for you include: your age, your spouse’s age, your health, your spouse’s health, life insurance policies, and other death benefits available. Once you make your selection and begin receiving your benefits, you are not allowed to change the option which you elected. The options available are described below:
60 Month Guarantee of Pension
This payment option provides a monthly benefit for your life. If you die before receiving 60 monthly payments (5 years), your beneficiary will receive the remainder of the 60 monthly payments. If you die after receiving 60 or more monthly payments, no benefits are paid to your beneficiary. If you are not married, your benefits are automatically paid in this way.
(Example: A member retires with this option with an effective date of January 2007 with a monthly benefit of $1,000.00. If he dies after December 1, 2011, nothing will be payable to his beneficiary because the 60 monthly payments would have been complete. However, if he dies prior to December 1, 2011, his beneficiary will receive $1,000.00 per month through December 2011 when the benefit will stop.)
50% Spousal Option (Joint & Survivor Annuity)
This payment option provides an actuarially reduced monthly benefit for your life. The benefit is reduced because it is expected to be paid over two lifetimes – yours and your spouse’s. Upon your death, your spouse will receive a monthly benefit equal to 50% of the benefit you were receiving before death.
(Example: A member retires with this option and is receiving a monthly benefit of $1,000.00. When the member dies, his spouse would then start receiving $500.00 per month. This would be paid to the spouse for the remainder of her lifetime.)
Under this option, if your spouse dies before you, the survivor benefit is canceled and your benefit is restored to its unreduced amount for the remainder of your lifetime. If you get divorced after this option becomes effective, the survivor benefit remains in place for your ex-spouse, unless and until it is waived or voided pursuant to an appropriate Qualified Domestic Relations Order (QDRO). The survivor benefit will be canceled upon receipt by the Pension Fund of such an order, and your benefit will be restored to its original amount for the remainder of your lifetime. If you are married, your benefit is automatically paid in this way unless you and your spouse choose another payment method. To choose another payment option, your spouse must sign a notarized consent.
75% Spousal Option (Joint & Survivor Annuity)
This payment method is paid in the same manner as the 50% Option, except, upon your death, your spouse will receive a monthly benefit equal to 75% of the benefit you were receiving before death. Additionally, the initial reduction for the spouse’s option will be larger than the reduction for the 50% option. This option is not available for either the Occupational or the Permanent and Total Disability Pension Benefits.
100% Spousal Option (Joint & Survivor Annuity)
This payment method is paid in the same manner as the 50% Option, except, upon your death, your spouse will receive a monthly benefit equal to 100% of the benefit you were receiving before death. Additionally, the initial reduction for the spouse’s option will be larger than the reduction for the 75% option. This option is not available for either the Occupational or the Permanent and Total Disability Pension Benefits.
Social Security Income Leveling Options
If you retire before you reach your full/normal retirement age for Social Security (SS) retirement benefits, you can choose this payment method in conjunction with one of the other previously explained options. If you elect this option, you will receive an actuarially increased monthly pension benefit from the LDC&C Pension Fund before you reach your SS full retirement age (age 65-67 depending on your birth date) and a reduced monthly pension benefit after you are SS full retirement age. Your actuarially increased pension benefit will be reduced by your estimated SS full retirement benefit amount at that time.
In theory, this option allows your combined monthly retirement income from SS and the Pension Fund to remain fairly level throughout your retirement years. The monthly pension amount for this option is based on the assumption that you will begin to receive your SS retirement at SS full retirement age, not earlier or later. Additionally, your pension benefit will not be adjusted at a later time if your SS benefit is either higher or lower than the estimate used in the original calculation. This option is not available for either the Occupational or the Permanent and Total Disability Pension Benefits.
(Example: A member is eligible to receive a monthly pension benefit of $500.00 and expects to receive $400.00 per month from Social Security. The plan will pay the member $733.00 per month until his Social Security benefits begin, and then reduce his benefit to $333.00 per month for the rest of his life. This way, his combined retirement income, including Social Security, is $733.00 per month throughout his retirement years.)
One-time Lump Sum Payment
Very few members are eligible for the lump sum payment option. Generally, only members with relatively small benefits are eligible for lump sum payments. When you retire, you will receive your pension in the form of a monthly benefit payment unless:
If you decide to return to work after you retire from the LDC&C Pension Fund, it is important for you to understand how it will affect your pension benefits. Certain employment will result in your monthly pension benefit being suspended.
Working Restrictions Based on Your Age
Depending on your age, you have different working restrictions:
Before Regular Retirement Age : Prior to your Regular Retirement Age (Age 60 for most members, age 62 or 65 for certain members), your monthly pension benefit will be suspended for any month in which your work in Disqualifying Employment, regardless of how many hours you work. Even one hour of Disqualifying Employment will result in a suspension of your pension benefit.
After Regular Retirement Age : After your Regular Retirement Age, your monthly pension benefit will be suspended for any month in which you work 40 hours or more in Disqualifying Employment. Working less than 40 hours of Disqualifying Employment will not affect your pension benefit.
After Age 70 ½ : There are no working restrictions after age 70 ½. Working is Disqualifying Employment after age 70 ½ will not affect your pension benefit.
In order to understand your working restrictions after retirement, you must understand what jobs constitute Disqualifying Employment and what jobs do not affect your pension benefit. Disqualifying Employment generally includes working for an employer in covered employment or employment for which contributions are required to one or more of the following funds: LDC&C Pension Fund of Ohio, OLDC-OCA Insurance Fund, Ohio Laborers’ Training and Apprenticeship Trust Fund, and/or Ohio LECET. Disqualifying Employment also includes some less obvious work, so please review the following lists:
Do NOT Do the Following (unless you want to jeopardize your pension benefits and retiree insurance)
Work that Does NOT Affect Your Pension & Retiree Insurance Benefits
Your Pension Benefit After Returning to Work
Your pension benefits will remain suspended until your Disqualifying Employment ends. The suspension may be extended to collect monies paid to you for months your pension should have been suspended due to Disqualifying Employment. Once you stop Disqualifying Employment, you must submit written notification to the OLFBP Fund Office stating your last date of disqualifying employment before your benefit will be restarted. Your monthly benefit amount after you stop Disqualifying Employment will not change, unless you earn at least one additional pension credit during a single suspension period.
If your monthly pension benefit is suspended due to Disqualifying Employment (employment that causes your monthly pension benefit to be suspended), you could lose the Retiree Insurance Subsidy for the rest of your life. Please give this much consideration if you return to work after you retire. For additional details about your Retiree Insurance and how disqualifying employment affects it, please click HERE or contact the Insurance Department at OLFBP.
Pre-Retirement Death Benefits
If you are vested and die prior to receiving your pension benefits, the Death Benefits payable to your beneficiary depends on your age and marital status.
Non-Married : If you are not married at the time of your death, you need a minimum of 5 pension credits for your beneficiary to be entitled to a death benefits. Your beneficiary will receive a one-time lump sum benefit equal to $1,000 for each pension credit you have earned, up to a maximum of 30 pension credits.
Married : If you are vested and have been legally married to your spouse for at least one year before your death, your spouse will be eligible for a surviving spouse benefit. That benefit is determined as follows:
Post Retirement Death Benefits
After you retire and start receiving your monthly pension benefit, determining the Death Benefits payable to your beneficiary is simple. The benefit available to your beneficiary depends solely on the Pension Option you elected when you retired. To learn more about the Pension Payment Options, please click HERE.
Naming a Beneficiary
It is extremely important to keep your beneficiaries up-to-date. Please complete a new Enrollment/Beneficiary Card and submit it to the OLFBP Fund Office if your family changes. If you have been married for at least one year at the time of your death, your surviving spouse will automatically be your beneficiary for pension Death Benefits. If you fail to designate a beneficiary or your designated beneficiary predeceases you, your lump sum payment will be paid to your estate. If there is no estate, payment will be made in the following order: spouse, children, parents, brothers/sisters, next of kin.