IUOE Benefit Funds of Eastern PA and DE

Pension FAQ

What do I need to earn a Pension Credit?

1/1/13 – current You receive 1 pension credit for each calendar year you are credited with at least 800 hours in covered employment or 1/2 pension credit for each calendar year you are credited with 500 – 799 hours in covered employment. You receive no pension credit for any calendar year you are credited with less than 500 hours in covered employment.

1/1/11 – 12/31/12 You received 1 pension credit for each calendar year you were credited with at least 1,000 hours or earned at least $18,000 in covered employment.

1/1/74 – 12/31/10 You received 1 pension credit for each calendar year you were credited with at least 1,000 hours or earned at least $6,000 in covered employment.

1/1/60 – 12/31/73 You received 1 pension credit for each calendar year you were credited with at least 1,200 hours in covered employment.

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When am I eligible for a Regular Pension?

You are eligible to retire on a Regular Pension if you terminate covered employment on or after your normal retirement age (the later of age 65 or the fifth anniversary of joining the plan).

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What is the amount of the Regular Pension?

The monthly amount is the total of:

• $25.50 times your Pension Credits earned before 1974 but not to exceed $637.50; and
• 0.19% of your total annual earnings in Covered Employment (work for which contributions are payable to the fund) since January 1, 1974.

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What is the Pre-Retirement Incentive Benefit?

For any wages earned between the ages of 55 and 65 while eligible for Special Early Retirement, the wages during this time period are calculated at 0.25% instead of 0.19%. The result is a 0.06% increase during this time period if eligible.

The monthly amount is the total of:

• $25.50 times your Pension Credits earned before 1974 but not to exceed $637.50; and
• 0.19% of your total annual earnings in Covered Employment (work for which contributions are payable to the fund) since January 1, 1974.
• 0.06% increase of your earnings in Covered Employment between the ages of 55 and 65 while eligible for Special Early Retirement since January 1, 2005.

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When am I eligible for a “Special” Early Retirement Pension?

You are eligible to retire on a “Special” Early Retirement Pension if you are age 55 or older, the combined total of your age and the Pension Credits that you have earned equals at least 80, and you have been in covered employment for at least 500 hours in any one of the three years before you retire.

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What is the amount of the “Special” Early Retirement?

The amount of the “Special” Early Retirement Pension is calculated in the same manner as the Regular Pension. There is no reduction in the monthly benefit because of age.

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When am I eligible for an Early Retirement Pension?

You are eligible to retire on an Early Retirement Pension if you are at least age 55 and have earned at least 10 Pension Credits.

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When am I eligible for a Deferred Pension?

You become entitled to a Deferred Pension if you have at least five years of Vesting Service and were an active participant on or after January 1, 1990, regardless of your age when you cease to be employed in a job covered by the Plan. If you left Covered Employment prior to January 1, 1990, you are entitled to a Deferred Pension if you had at least ten years of vesting service when you ceased to be employed.

This benefit is referred to as “Deferred Pension” because the actual payments will not begin until you actually retire. Payments can begin as early as age 55 only if you have met the Pension Credit requirements for either the Special or Regular Early Retirement Pension.

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

You may retire on a Disability Pension if:

1. you have at least 10 Pension Credits;
2. you are totally and permanently disabled (determined by Social Security); and
3. you worked in Covered Employment for at least 3000 hours in the 5 years before you became permanently and totally disabled.

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What is the amount of the Disability Pension?

The monthly Disability Pension Amount is the same as the Regular Pension Amount. However, a Disability Pension will commence with the later of:

• the seventh month following the date the disability began, or
• the month following the month in which your application is filed.

The disability Pension will continue for your life, provided you remain permanently and totally disabled. If you cease to be permanently and totally disabled, your Disability Pension will terminate starting with the first month following the end of the disability.

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How is ‘total and permanent disability’ defined?

You will be deemed totally and permanently disabled only if you have been awarded and continue to receive Disability Benefits from the Social Security Administration.

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How do I file an application for a pension?

You must file a written application with the Board of Trustees on a form that will be provided upon request by the Fund Office. Applications for retirement must be filed in advance of the month when pension payments are to commence.