Benefit Types

What types of pension benefits are available?

Four types of pensions are provided under the Plan.

  • Normal Pension
  • Early Retirement Pension
  • Disability Pension
  • Inactive Vested Pension

In addition, the Plan provides for a lump sum  Death benefit. 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 1,500 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 of a 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 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.

How do I figure the amount of the Normal Pension?

Your Normal Pension is a monthly pension determined as the sum of the benefits earned during your employment. Different benefit formulas apply for Service Credits earned before and after April 1, 2009. For Service Credits earned after April 1, 2009 the accrual rates applicable to you will also depend on whether your CBA accepted the additional fifteen percent (15%) PPA funding levy and also on the particular Funding Improvement Plan Schedule which covers your employment. Bear in mind that the maximum number of Past Service Credits you can earn is 24.

The component of your Normal Pension earned before April 1, 2009 is computed using two formulas explained on pages 11 through 12 in Parts A and B of the Summary Plan Description booklet. 

Please note that these accruals do not apply to benefits 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. Under this form of payment, the benefit shown above is reduced. In exchange for the reduction, upon your death, 50% of your benefit will be paid to your surviving spouse for life.

The following link 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 worked after April 2009, those who have NOT worked after 2001 and those who have NOT worked after 2000.

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.

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.
  3. You do not have any two consecutive years in which you failed to earn 450 hours without subsequently earning three years (4,500 hours) of future service credit. There are exceptions to this rule based on disability or employment on referral by the Local Union in the masonry industry to a job not covered by a collective bargaining agreement.

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 and also meet the requirement in number three 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.

Under the Plan, there will be a reduction for each year between age 55 and 64 that provides approximately equal value to the benefit the participant would receive by waiting until normal retirement age to retire. For early retirement pensions with a start date after June 1, 2016, the following early reduction factors will apply regardless of which schedule was elected under the Funding Improvement Plan.

From the age of 60 to 64, the benefit will be reduced by 8% each year, and from 55 to 60 the benefit will be reduced by 5% each year, as follows:

Table 1

Age   % of Normal Retirement Age Pension Payable Early

64              100%

63                 92%

62                 84%

61                 76%

60                 68%

59                 63%

58                 58%

57                 53%

56                 48%

55                 43%

Example #1: Peter retires on June 15, 2016, and submits his application on September 4, 2016. Peter’s early retirement benefit would be computed as follows:

  1. Normal Pension to which Peter would be entitled if he were 64 = $582.40 
     
  2. Early Retirement Factor: From Table 1 above the factor for 58 years of age is 58%.
     

Normal Pension     $582.40

Early Retirement Factor    x .58

$338.00/month Early Retirement Pension     $337.79

  1. In this example, Peter’s Early Retirement Pension would be $338.00 a month because pensions between whole dollar amounts are rounded to the next higher dollar. His benefit will be less if he chooses the 50% or 75% Joint and Survivor Annuity.

Example #2: Tom retires on September 1, 2016. Tom’s early retirement pension is calculated as follows:

  1. Normal Pension to which Tom would be entitled if he were 64 = $572.50
     
  2. Early Retirement Factor: From Table 1 above the factor for 58 years of age is 58%.
     

Normal Pension  $572.50

Early Retirement Factor   x .58

$333.00/month Early Retirement Pension     $332.05

  1. In this example, Tom’s early retirement pension would be $333.00 a month because pensions between whole dollar amounts are rounded to the next higher dollar. His benefit will be less if he chooses the 50% or 75% Joint and Survivor Annuity.

Example #4: (Same facts as in Example #2), except Tom submits his application on May 16th but continues to work for his employer until he retires on November 1, 2016. Tom’s application will be processed as if he retired on November 1, 2016 and his early retirement benefit will be reduced according to the factors above, as demonstrated in Example

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;
  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 my Disability Pension?

Between the ages of 60 and 64, the disability benefit will be subject to an actuarial reduction factor of 8%. There will be no additional reduction for years prior to age 60. The reduction factors, based on actuarial equivalence and using the Fund’s funding assumptions, will be as follows:

Table 1

Age     % of Normal Retirement Age Pension Payable as Disability

64          100%

63             92%

62              84%

61              76%

60 and under  68%

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. 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.

Inactive Vested Pension

When am I eligible for a Inactive Vested Pension?

If you worked in Covered Employment after January 1, 1999, you become entitled to a Inactive 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 a Normal or Early Retirement Pension.

If you did not work in Covered Employment after January 1, 1999, you become entitled to a Inactive 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 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:

  • (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 “Inactive” Vested Pension because the actual pension payments will not begin, at the earliest, until you reach age 64. You may elect to receive the Inactive Vested Pension at any time after you are age 64, but no later than April 1st of the year following the calendar 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 Inactive 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 Pension will not be delayed.

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

The amount of the Inactive Vested Pension is 100% of the Normal Pension to which you would otherwise be entitled at age 64.