The importance of Bricklayers Union Local 1 stems from the pension funds of employees. The International Pension Fund (IPF) covers 92% of BAC members across the United States. The body ensures the retirement security of pensioners and beneficiaries across the United States.
The numbers and figures vary. But it is estimated that the body is responsible for securing the pension funds of more than 26,000 beneficiaries and pensioners in the United States.
The pension plan is centered on a board of trustees. Beneficiaries receive the payments at the Fund office. The latter is controlled by an executive director who is inducted by the board of trustees.
This post will highlight the benefits of applying for a pension plan through Bricklayers Union Local 1 for BAC members. Also, it will cover the four fundamental types of pension plans.
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Types of pension plans
For BAC members, there are four prominent pension plans. These include the following:
1. Normal Pension
This is one of the most simple pension plans for BAC members. Are you a beneficiary of the Collective Bargaining Agreement? If yes, you can take your retirement from employment at the age of 64 years.
Alternatively, you can also do this in the fifth year of your participation in the plan provided you meet the following terms and conditions:
- You reach your age of retirement, show proof of working for at least an hour after January 1, 1999, and have Pension Credit of at least five years with 1,500 hours of further service included or have Vesting Service for at least five years, or
- You attain the average age for retirement, as mentioned in the rules of the plan while continuing your employment.
In case you belong to the group of individuals who did not work at a later date after January 1, 1999, then you need twice the Pension Credit and Vesting Service, as mentioned above.
Some individuals may not necessarily meet the condition mentioned above, but they will still be eligible to receive the benefits if they work after January 1, 1988, and meet the following requirements.
- If they reach their average age of retirement without any permanent break in their employment
- If their future service involves a minimum of 1,500 hours
- If they have at least a year of Vesting Service
The pension is calculated based on the sum total of the benefits an individual earns at the time of their employment. A lot depends on the number of service credits an individual has earned on and before April 1, 2009.
2. Early Retirement Pension
In case you have worked under covered employment at a later date than the first day of January in 1999, and you have attained a minimum of 55 years and still do not meet the eligibility criteria set for the normal pension plan, you will be able to apply for your retirement under this pension plan.
Because it allows you to retire from your employment at an earlier date than the conventional age for retirement agreed upon, this plan is known by the name of the early retirement plan.
In order to be eligible for this plan under covered employment, you need to have a minimum of 5 Pension Credits at your disposal. In addition, you also need to have a minimum of 1,500 hours of service in the future of 5 years of Vesting Service.
Furthermore, one needs to have a future service credit of 450 hours after attaining the age of 50 years. An individual may be exempted if they fail to attain this age and leave the employment out of account of eligibility.
Failing to earn 450 hours of future service credit for two consecutive years can come across as a red flag to authorities of the international pension fund.
People who work without a cover, need to have ten years of Vested Service along with the last requirement as mentioned above. Also, the same holds apply to employees of an organization that is related to another organization that covers it.
3. Disability Pension
As the name suggests, this disability pension plan is for those who come across a permanent disability that forces them to abandon their employment. Persons working under a covered as well as a non-covered organization can get the benefits provided they meet the set criteria.
In the case of covered employment, an individual should not attain the age of 64 years and have 5 Pension Credits apart from at least 1500 years of future service. Besides, they also need to have five years of Vesting Service.
Further, such candidates should have 150 hours of future service in the year of disability. Even if they have these many years in their Future Service in the year preceding their year of disability or 1500 hours of Future Service, they will still qualify for receiving the benefits under this plan.
Employees who are not covered need to have either ten years of Vesting Service or Pension Credit.
4. Inactive Vested Pension
Inactive Vested Pension plan is for those covered employees who have worked after January 1, 1999, and have the same number of Vested Service or Pension Credits but still do not qualify for any of the three aforementioned pension plans.
Employees who belong to an organization that is not covered under this pension plan but still wish to receive the benefits of this plan can get them provided they have ten Pension credits including Future Service Credit for five years.
If they do not meet the criteria for standard or early retirement, they need at least ten years of Vesting Service.
Pension is one of the pressing needs of individuals after their retirement. Even as they get it after retiring from their job, the preparation for it begins at a much early age. You will be able to claim your pension benefits by following the procedure and by applying for a plan with all the documents.
Remember the information above while applying for your pension plan through Bricklayers and Allied Craftworkers Local 1. This will not reduce your hassles but also enable you to reap the benefits of the program in the true sense of the term.