Benefit 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

When am I eligible for a 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. You attain Normal Retirement Age as defined in the Plan Rules while still employed.

If you did not work after January 1, 1999, you must have earned 10 years of Pension Credit or Vesting Service rather than the 5 year requirements listed above. If you do not meet the above requirements and worked after January 1, 1988, you are eligible to retire on a Normal Pension if:

1. You attain Normal Retirement Age without incurring a Permanent Break in Service; and
2. You have at least 1,500 hours of Future Service; and
3. You have one Year of Vesting Service; or
4. You have at least 0.1 year of Future Service Credit (150 hours) in the same year you attain Normal Retirement Age or in the year after you attain Normal Retirement Age without incurring a Permanent Break 12 in Service, unless your failure to meet this requirement is due to disability as determined by the Board of Trustees.

If you are an employee of a related organization, not covered under a Collective Bargaining Agreement and work after January 1, 1989, you will be entitled to retire on a Normal Pension if you meet the following requirements:

You have attained Normal Retirement Age and (1) have at least 10 years of Pension Credit including at least 1,500 hours of Future Service; or (2) have at least five Years of Vesting Service.

1. You have attained Normal Retirement Age as defined in the Plan while still employed.
2. Participants not covered under a Collective Bargaining Agreement are described in Question 1 of the booklet.

How do I figure the amount of the Normal Pension?

The Normal Pension is a monthly pension based on your employer’s contribution rate. (Your participating Local’s collective bargaining agreement with your employer establishes a contribution rate that he must contribute to the IPF on your behalf). The table on page 14 illustrates the Normal Pension benefit amounts payable to you with various years of Pension Credits and the amount per year for those years in excess of 40 years. Bear in mind that the maximum number of Past Service Credits you can earn is 24.

In addition, if you stop working and delay your retirement past Normal Retirement Age, your monthly pension will be your accrued benefit at Normal Retirement Age plus an increase of 1% for each month (up to 60 months) between Normal Retirement Age and your actual retirement date. This actuarial increase will be 1.5% for each month following the first 60 months after Normal Retirement Age.

Please note that these accruals do not apply to benefits 13 suspended for continued employment and only apply up to the mandatory pension start date of April 1 of the year following the calendar year after the attainment of age 70 years and 6 months. Please note that the standard form of pension payment for all benefits is the Husband-and-Wife Pension, which is explained in Question 28. Under this form of payment, the benefit shown in the table on page 14 is reduced. In exchange for the reduction, upon your death, 50% of your benefit will be paid to your surviving spouse for life.

The table on page 14 shows the monthly IPF benefits that are earned at various years of total service (including both Past and Future Service Credits) and employer contribution rates. The table applies to US participants who earn at least one hour of service after January 1, 2001 and who retire on or after November 1, 2001.

Early Pension:

When am I eligible for an Early Retirement Pension?

If you worked in Covered Employment after January 1, 1999, 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 (a) at least 5 Pension Credits including at least 1,500 hours of Future Service; or (b) at least 5 Years of Vesting Service, and
2. You have earned at least 3/10 of a Year of Future Service Credit (450 hours) after attaining age 50, unless your failure to meet this requirement is due to disability.

If you did not work in Covered Employment after January 1, 1999, you must have earned 10 years of Pension Credit or vesting service rather than the 5 year requirements noted above.

Effective June 1, 1988, if you work in Non–covered Masonry Employment, your effective date for an Early Retirement Pension will be delayed six months for each calendar quarter that such work was performed. However, if you work on or after January 1, 1999 and have earned at least six years of Future Service Credit in Covered Employment following your work in Non-covered Masonry Employment, your Early Retirement Pension will not be delayed.

If you are an employee of a related organization, not covered under a Collective Bargaining Agreement and work after January 1, 1989, you will be entitled to retire on an Early Retirement Pension if you meet the following requirements:

1. You have attained age 55 but are not yet eligible for a Normal Pension.
2. You have at least 10 years of Pension Credit including at least 1,500 hours of Future Service or have at least five Years of Vesting Service.
3. You have earned at least 3/10 of a year of Future Service Credit (450 hours) after attaining age 50, unless your failure to meet this requirement is due to disability.

Participants not covered under a Collective Bargaining Agreement are described in Question 1 of the booklet.

How do I figure the amount of the Early Retirement Pension?

For those Participants who retire on or after August 1, 1999, the Early Retirement Pension is adjusted downward from the Normal Pension amount, based on your age. It is the Normal Pension amount calculated as if you were age 64, 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.

In this example, Peter’s Early Retirement Pension would be $469.00 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. The reduction factors for the Early Retirement Pension are different for those Participants who retire prior to August 1, 1999.

Disability Pension:

When would I be eligible to retire on a Disability Pension?

If you worked in Covered Employment after January 1, 1999, 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 1,500 hours of Future Service Credit, or 5 years of Vesting Credit; and
3. You are totally and permanently disabled; 19
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 1,500 hours of Future Service in the five calendar years preceding the date of disability (unless failure to meet this requirement was due to disability or employment on referral); and
5. You have not worked in Non-covered Masonry Employment or you have earned at least six years of Future Service Credit in Covered Employment following your work in Non-covered Masonry Employment.

If you have not worked in Covered Employment after January 1, 1999, you must have earned 10 years of Pension Credit or Vesting Service rather than the 5 year requirements listed above.

How do I figure the amount of the Disability Pension?

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. 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. For further information on this option, see Question 40.

How is total and permanent disability defined?

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 which indicates the nature of your disability and states that you are totally and permanently disabled from the trade. If your application is approved, you may be required to submit to re-examination periodically as the Trustees may direct.

What will happen if I recover from my Disability?

The Disability Pension will continue for life, provided you remain totally and permanently disabled until age 64. If you lose your Social Security Disability Benefit before age 64, 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 64, payments will continue even if you recover, but subject to the rules governing work after retirement (see Question 36). If you lose entitlement to your Social Security Disability Benefit, you must report it to the Board of Trustees within 15 days of the date you receive notice from the Social Security Administration. If you fail to notify the Board, you may be penalized when you subsequently retire. The penalty will be loss of your benefits for six months plus the months you received a Disability Pension after your loss of entitlement. Whatever disability benefits you received will not affect your eligibility for Normal, Early or Deferred Vested Pensions.

Following the guidelines of the Social Security Administration, IPF will allow Disability Pensioners a trial work period during which benefits will not be affected by earnings. If the trial work period is successful and your Social Security Disability benefits are suspended, you must notify the Fund office as your IPF benefits will be suspended.

Deferred Vested Pension

When am I eligible for a Deferred Vested Pension?

If you worked in Covered Employment after January 1, 1999, you become entitled to a Deferred Vested pension if you have at least five Pension Credits, including at least 1,500 hours of Future Service, or five Years of Vesting Service and you have not met the requirements for either a Normal or Early Retirement Pension.

If you did not work in Covered Employment after January 1, 1999, you become entitled to a Deferred Vested Pension if you have at least ten Pension Credits, including at least five years of Future Service Credit, or ten Years of Vesting Service and you have not met the requirements for either a Normal or Early Retirement Pension.

Effective January 1, 1989, if you are an employee of a related organization, not covered under a Collective Bargaining Agreement and you meet the following requirements, you will be entitled to retire on a Deferred Vested Pension: 21

• (a) You have at least five Years of Vesting Service, or
• (b) you have at least five years of Future Service Credit.

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 age 55, but no later than April 1st of the year following the calander year in which you attain age 70 1/2.

Effective June 1, 1988, if you work in Non-covered Masonry Employment, your effective date for a Deferred Vested Pension will be delayed six months for each calendar quarter that such work is performed. However, if you work on or after January 1, 1999 and have earned at least six years of Future Service Credit in Covered Employment following your work in Non-covered Masonry Employment, your Early Retirement Pension will not be delayed.

How do I figure the amount of the Deferred Vested Pension?

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.

Which contribution rate do I use in calculating my Deferred Vested Pension?

If you leave Covered Employment with a right to a Deferred Vested Pension payable on or 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 1,500 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.