Benefits - Local 1034 Pension Trust Fund

PREPARING FOR RETIREMENT

It’s never too early to start planning for retirement. While deciding what you want to do when you retire is usually pretty easy, figuring out where the money will come from to pay for it can be more difficult.

For most people, retirement income generally comes from three sources: Social Security, personal savings, and pension benefits.

• Pension Benefits
  If you’d like more help in estimating your own benefit, contact the Fund Office.
   
• Personal Savings
  Personal savings include your personal savings and investments, as well as amounts you may have in Individual Retirement Accounts (“IRAs”).
   
• Social Security
  Social Security benefits are based on taxes both you and your employers pay on your earnings during your working years. Social Security benefits don’t change your pension benefits from this Plan — your Plan benefit is in addition to your Social Security benefits.
   
  For people born in 1937 and earlier full Social Security benefits are still payable at age 65. However, the Social Security Administration has gradually increased the full- retirement age for people born after 1937 — the increased ages range from 65 and two months for someone born in 1938, to 66 for people born between 1943 and 1954, to 67 for people born in 1960 or later. Reduced Social Security benefits are generally payable about three years earlier than full benefits.
   
  The Social Security Administration will send you an estimate of your Social Security benefits each year, starting a few months before your 25th birthday. If you don’t receive an estimate, you may call the Social Security Administration to request one at 800-772-1213. You can also reach the Social Security Administration “online” at www.ssa.gov.
   
  The Social Security website (www.ssa.gov) has much helpful information, not only on Social Security benefits, but on retirement and retirement planning in general. It also has links to other websites with retirement information and financial planning “calculators” and other tools useful in planning for your retirement years.

Questions & Answers

Here are answers to some of the questions people most frequently ask
about the Plan:

Q: Can I borrow or withdraw money from the Plan?
A: No, this plan does not allow participant loans or withdrawals.

Q: Do we have any medical benefits after retirement?
A: There are no medical benefits after retirement.

Q: Any life insurance or death benefit after retirement?
A: There is no life insurance or death benefit after retirement.

Q: One of my friends told me the value of his 401(k) plan account really dropped a lot because of the recent problems in the stock market. Could this happen to my Plan benefit?
A: No. A 401(k) plan is a “defined contribution” individual account plan under which your benefit at retirement depends on the value of assets in your account when you collect your benefit. This Plan is a “defined benefit” pension plan under which the benefit is calculated under a stated formula; the benefit calculated under this formula will not change if Plan investments decline in value.

Q: Okay, so maybe I don’t have to worry about the daily ups and downs of the stock market like someone who has a 401(k). But how can I be sure the assets required to fund my pension will be there when it’s time for me to retire?
A: The Fund assets are protected in a number of ways. First, the assets are held in a trust that is a separate legal entity and is not part of the assets of either the Union or the employers. Second, plan assets are professionally invested by a number of Investment Managers. Third, the plan is audited every year by a firm of independent certified public accountants. Fourth, the federal government requires an annual filing, the Form 5500, that is a public document, detailing the financial condition of the Fund. As part of this filing the government requires disclosure of the actuarial methods used to fund Plan benefits. These methods must meet certain government standards. Finally, the Pension Benefit Guaranty Corporation (the “PBGC”), a federal agency, insures certain benefits provided by the Plan, thus guaranteeing that if the Plan had insufficient assets to pay Plan benefits, the PBGC would pay these benefits to the extent of the guarantee. There’s more information on the PBGC protection in the section called “Other Things You Should Know.”

Q: I recently had an accident on the job and am out on income continuation. Can I get a benefit from the Plan?
A: No. The only disability benefit under this plan is a Disability pension, which requires 14-1/2 years of Benefit Service and a currently effective “Certificate of Award of Total and Permanent Disability” from the Social Security Administration.

Q: How do I get an estimate of the current value of my pension?
A: Call the Fund Office to request an estimate form.

Q: How do I go about giving you a change of address?
A: Call the Fund Office to request an address change form or click here to download and print the form. Address changes will not be accepted over the phone and must be submitted in writing.

Q: When are pension checks mailed out?
A: The first of each month. Please note that a pension check will not be considered late until after the 10th of the month.

Q: I retired a while back and am receiving my pension under the 10 Year Certain Option. The person I named as my beneficiary (my mother) recently died, and I would like to name my sister as my beneficiary.
A: Yes, under this form of payment you may name a new beneficiary. If you don’t have a valid beneficiary designation on file, then any amounts due on your death will be paid under the procedure described in the section called “How Your Pension is Paid.”

Q: I’ve been receiving pension payments for a few years and got divorced a couple of months ago. Next month I’m going to get married again. I’m receiving my payments under the 50% Joint & Survivor Annuity and want to change my beneficiary so that my new spouse, not my ex-spouse, will get the benefit due when I die.
A: No, you cannot do that. Once payments start under the Joint & Survivor Annuity form of payment, you can’t change anything. Your former spouse will receive the benefit if he or she survives you. (This is one reason you should consider consulting an attorney who can help you identify and address issues relating to pensions and other property rights at the time of your divorce.