Pension Fund Information
- Age 60 (or age 62 for members falling under the 2018 Rules)*
- 5 vesting credits**
- 1 pension credit
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 0.025% for each month you retire prior to regular retirement age.
- Age 53 but before age 60 (or age 58 but before age 62 for members falling under 2018 Rules)*
- 10 pension credits
This type of retirement is the goal of many laborers. Special Service Retirement allows you to retire at an early retirement age without the early retirement reduction.
- Age 53, but before age 60 (or age 58 but before age 62 for members falling under 2018 Rules)*
- 30 pension credits
Hopefully, you will not need to retire under the disability provisions of the Plan. However, if you become disabled, you may be eligible to receive Disability Pension Benefits. These benefits are automatically recalculated to Early Retirement at early retirement age. The Plan offers two different types of Disability Pension Benefits:
- Occupational Disability Pension – Pays 50% of your base benefit
- Permanent and Total Disability Pension – Pays 75% of your base benefit
- Before early retirement age
- 10 pension credits
- Permanently and totally disabled as defined by the Pension Fund
- Worked at least 250 hours in the calendar year in which the disability occurred or in the calendar immediately preceding
- To be eligible for Permanent and Total Disability Pension Benefits, you must be awarded Disability Benefits from Social Security.
Pension Payment Options
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 benefit, you are not allowed to change the option which you elected.
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. 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 per month through December 2011 when the benefit will stop.
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. When the member dies, his/her spouse would then start receiving $500 per month. This would be paid to the spouse for the remainder of their 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.
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.
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.
This option is only available for members who have at least 1/4 unforfeited Pension Credit prior to January 1, 2018.
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 per month from Social Security. The plan will pay the member $733 per month until his Social Security benefits begin, and then reduce his benefit to $333 per month for the rest of his life. This way, his combined retirement income, including Social Security, is $733 per month throughout his retirement years.
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:
The actuarial value of your total benefit is less than $5,000; it is automatically paid to you in a one-time lump sum payment.
Or, the amount of your monthly benefit is less than $200; you may choose to receive your total benefit in a one-time lump sum payment.
Working After Retirement
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 70½: There are no working restrictions after age 70½. Working in Disqualifying Employment after age 70½ 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:
- Perform Laborers’ work in Ohio (or Boone, Campbell, or Kenton counties in Kentucky or Brooke or Hancock counties in West Virginia).
- Perform Laborers’ work with Cleveland Local 310 or Cincinnati Local 265.
- Supervise Laborers – unless you are a Superintendent as defined by the National Labor Relations Act and hours were not previously reported to the Pension, Insurance, or Training Funds for the same work. Multi-Craft supervision is not permitted after retirement unless contributions are made to another construction trade.
- Perform the same job you did before you retired – if contributions were made to the Pension, Insurance, or Training Funds for the same work.
- Perform Laborers’ work for non-union employers under Regular Retirement Age
- Employment outside the Construction Industry
- Employment in a construction trade other than Laboring
- Employment outside of Ohio (even Laboring), except in Boone, Campbell, or Kenton counties in Kentucky or Brooke or Hancock counties in West Virginia. However, if you work outside of Ohio and have hours and fringes transferred to this Fund through reciprocity or from pipeline work, this is considered disqualifying and would affect your pension and retiree insurance benefits.
- Any type of employment after age 70 years and 6 months (even Laboring)
Working after retirement rules have been modified for participants who have not been credited with a minimum of one-quarter of a Pension Credit as of January 1, 2018, or whose Pension Credits earned prior to January 1, 2018 are subsequently forfeited under the Plan’s Break in Service provisions. Under the 2018 Rules disqualifying employment is defined as:
- 40 or more hours in a calendar month; and
- In an industry in which employees covered by the Pension Plan were employed and accrued benefits under the Pension Plan as a result of such employment at the time that the payment of benefits commenced or would have commenced if the employee had not remained in or returned to employment; and
- In a trade or craft in which the employee was employed at any time under the Pension Plan or any other trade or craft covered by the Pension Plan; and
- In the geographic area covered by the Pension Plan at the time the payment of benefits commenced or would have commenced if the employee had not remained in or returned to employment.
The foregoing definition of disqualifying employment includes employment or self-employment with any entity or person, and is not limited to unionized employers or Employers. Any employee who supervises employees who perform disqualifying employment works in disqualifying employment.
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 Ohio Laborers Benefits 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 contact the Insurance Department at Ohio Laborers 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:
If you are retirement age on the date of your death, your spouse’s benefit will be determined as if you had retired the day before your death and elected the 100% Spousal Option. The monthly benefit will be payable the first of the month following your death and will be payable for the life of your spouse.
- If you are NOT yet retirement age on the date of your death, your spouse will be entitled to the 100% Spousal Option when you would have reached retirement age. The monthly benefit will be payable the first of the month after you would have reached retirement age and will be payable for the life of your spouse. Additionally, if you have at least 5 pension credits and have at least 500 hours reported at the $1.70 or higher (rate effective May 1995), your spouse will have the option to receive a one-time lump sum payment at the time of your death and then take an actuarially reduced monthly benefit when you would have been retirement age. The lump sum payment will be equal to $1,000 for each pension credit you have earned, up to a maximum of 30 pension credits.
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.
It is extremely important to keep your beneficiaries up-to-date. Please complete a new Enrollment/Beneficiary Card and submit it to Ohio Laborers Benefits if your family changes. Enrollment/Beneficiary Cards can be updated through your MemberXG account. 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.
* 2018 Rules are for participants who have not been credited with a minimum of one-quarter of a Pension Credit as of January 1, 2018, or whose Pension Credits earned prior to January 1, 2018 are subsequently forfeited under the Plan’s Break in Service provisions.
For members who do not fall under the 2018 Rules, 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.