LABORERS’ PENSION FUND

What You Need to Know

The Massachusetts Laborers’ Pension Fund was established on June 1, 1962, with a 10 cent-per-hour contribution. Still going strong, the Pension Fund continues to reward hard-working members for their years of service in the industry.

The Pension Fund is designed to provide you and your family with a steady monthly income when you retire that lasts as long as you live, and has options to pay benefits to your spouse, too if you die before them.

Your employer makes contributions on your behalf (as required by the collective bargaining agreement). The benefit you receive at retirement will depend on the number of years and hours you work, your age at retirement, and the payment form you elect to receive your pension.

Learn how your Pension Fund works.

PARTICIPATION

You become a participant in the Pension Fund after you’ve worked at least 250 hours in covered employment for a period of 12 consecutive months. Covered employment means you work in a position covered by a collective bargaining agreement between an employer and the union.

You earn a right to your pension benefit (and you’re considered “vested”) in the Fund after five years of service.

You must be vested in the Fund to receive a pension benefit when you retire. Generally, you earn one year of vesting service—and one pension credit—for each calendar year you work at least 1,000 hours in covered employment. Your pension credits are used to calculate the amount of your pension.

If you work more than 1,600 hours in a calendar year, then those additional hours are added to an “hours bank.” Banked hours are used to fill in any years in which you worked at least 250 hours or more, but not enough to earn a full pension credit for the calendar year.

You will continue to be a participant in the Fund as long as you’re working in covered employment.

If you stop working for a period of time, you may lose your status as a participant. However, if you’re vested in the Fund, you’ll still be eligible for a benefit when you retire, even if you stop working in covered employment before you’ve reached the normal retirement age.

Your monthly pension benefit amount (this refers to the monthly income you receive in retirement) is determined by multiplying your pension credits by a benefit rate determined by the Board of Trustees.

Your benefit amount also depends on the type of pension you elect at the time you retire, and the payment option you elect—that is, whether your benefit will provide for a spouse or beneficiary.

For more information about credits and vesting, review the Pension Fund’s Summary Plan Description.

If You Die Before Retirement

If you are vested, the Fund provides benefits for your surviving spouse or your designated beneficiary if you die before retirement. Different benefits are payable based on your marital status

Action Required: Pick Your Person

A beneficiary is a person (or persons) you name to receive a benefit in the event of your death. The Pension Fund provides a benefit to your spouse or beneficiary if you die before you retire.

Naming a beneficiary ensures your money will go where you want it to. Your loved ones will get timely access—with minimal legal hassles—to money they’re entitled to in the event of your passing.

As your life changes, make sure you update your beneficiary information accordingly. Life events like marriage, divorce, the birth of a child, and the passing of a loved one may have an impact on your beneficiary information.

You are not limited to naming one individual to be your beneficiary; you can elect more than one person to be your primary beneficiary. You may also elect a secondary beneficiary—known as a contingent beneficiary. If you’re married, your spouse is automatically your beneficiary unless you tell us otherwise, and your spouse consents in writing when you apply for your pension benefit.

To designate or update your pension beneficiary, submit your pension beneficiary card to the Fund Office. Spanish and Portuguese versions of the card are also available.

TYPES OF PENSIONS

When you are ready to retire, you can choose from five types of pensions offered by the Fund. Each has its own set of age and eligibility requirements, which could affect the benefit amount—meaning income in retirement—you receive.

A regular pension is payable if you retire from covered employment at age 65.

  • An early retirement pension is payable if you retire at age 55 or older and have at least 5 pension credits.
  • The early retirement pension amount is the same as the regular pension but reduced in order to pay benefits over a longer period of time. Different reductions apply to credit earned before and after January 1, 2010.

  • A service pension is payable at any age if you have at least 30 pension credits.
  • The amount of the service pension is the same as the regular.

If you become permanently disabled, you can also apply for a disability pension at any age. To qualify you must meet the following requirements:

  • Earned at least 10 pension credits
  • Earned 250 hours of service in one of the last three years immediately preceding the date of disability
  • Have not retired under a different type of pension
  • Have been determined totally and permanently disabled by the Social Security Administration, or if rejected by Social Security, by a physician approved by the Board of Trustees.

Once you are vested, if you stop working for a covered employer, you can begin receiving your vested pension benefit any time after you reach age 55 (as a reduced early retirement benefit) or at age 65.

Normal Retirement Age

The Pension Fund considers age 65 the normal retirement age. But for benefits earned prior to January 1, 2020, age 62 or older is considered the normal retirement age.

And, if you first worked on or after January 1, 2020, and your 5th anniversary of covered employment occurs after you turn age 65, then that 5th anniversary date would be considered your normal retirement age.

PAYMENT OPTIONS

The Fund offers several options for receiving your monthly payments in retirement, so that you can select the one that works best for you and your family. Although there is an automatic payment option for single participants and one for married participants, you can choose your preferred payment option.

Unless you elect not to have taxes withheld, federal and applicable state taxes will be automatically withheld from payments that exceed legal limits. Before you choose a payment option or retire, you may want to talk with a professional tax advisor.

  • Automatic option for married participants, unless you choose a different option.
  • Spouse receives 50% of your benefit after your death.
  • Your monthly income is reduced to provide a benefit for your spouse’s lifetime after you die.

  • Optional for any married participant.
  • Spouse receives 75% of your benefit after your death.
  • The reduction in your monthly income is greater than the 50% Spousal Pension option to provide a larger benefit for your spouse after you die.

  • Optional for any married participant.
  • Spouse receives 100% of your benefit after your death.
  • This option has the largest reduction in monthly income to provide the same benefit that you were receiving to your spouse after you die.

  • Automatic for unmarried participants, unless you choose a different option (married participants may jointly elect).
  • This option provides lifetime monthly income to you.
  • If you die before receiving five years of monthly payments, the beneficiary you elect will receive payments for the remainder of the five-year (60-month) period, with no reduction in your monthly payment.

  • Optional for any participant (married participants may jointly elect).
  • This option provides a reduced monthly income for the rest of your life.
  • If you die before receiving 10 years of monthly payments, the beneficiary you elect will receive payments for the remainder of the 10-year (120-month) period.

  • Optional for any participant (if you’re married, your spouse must consent).
  • A one-time, lump-sum payment up to $5,000 maximum is payable, resulting in reduced monthly income for the rest of your life.
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The Pension Option You Elect is Binding

Once you begin receiving your pension, you cannot change to a different payment option.

Keep the Fund Office Up to Date!

Keep the Fund Office informed of any address changes so that you will receive important notices from the Fund.

APPLYING FOR YOUR PENSION

When you’re ready to retire and begin collecting your pension benefit, you must meet the necessary requirements and submit your pension application form to the Fund Office. Spanish and Portuguese versions of the pension application form are also available.

[Does the Fund want to talk about requesting a benefit calculation or receiving a benefit calculation once someone applies for the benefit and what that calculation will show? Do members get an estimate before they elect a payment option?]

The Board of Trustees must review and approve your application before payments start, so be sure to submit your application well before you plan to retire.

You should submit your application form at least 30 days but not more than 180 days before the first month you are eligible to receive your pension benefit. In no event will your pension payments begin fewer than 7 days after the Fund has notified you of your payment options.

As a reminder, your pension benefits are subject to federal and state taxes.

Where to Submit Your Application

You can submit the application by mail, email, or fax, or call us if you want to drop it off in person. Appointments are required for in-office visits.  

Mail to: 1400 District Ave., Suite 200, Burlington, MA 01803
Email: Pension@mlbf.org
Fax: 781-272-2226
Phone: 781-272-1000, ext. 150

Questions? Contact the Fund office.

RETURNING TO WORK AFTER RETIREMENT

If you have reached age 62 (or age 65 if you first worked in covered employment in 2020 or later), you can work up to 39 hours per month in covered employment while receiving your pension.

If you want to work more than 39 hours per month or return to full-time covered employment, you must notify the Fund Office in writing in advance of your return to work and your monthly payments will be suspended until you leave covered employment.

Between January 1, 2024 and December 31, 2025 only, there is a new, temporary exception to the suspension rule for employment after age 62 (regardless of when you first worked in covered employment). Your benefit will not be suspended if you work for a contributing employer as an estimator, safety officer, project engineer, project manager, superintendent, operations manager, quality assurance/quality control supervisor, or any other position approved by the Board of Trustees, provided that:

  • Your employer is not contributing to the Fund for members in your position (nor has your employer made contributions to the Fund in the past for members in your position);
  • You are not directly supervising Laborers; and
  • You are a member in good standing of a Local Union of the Massachusetts & Northern New England Laborers’ District Council.

You may apply to the Board of Trustees for consideration of additional positions under this temporary program.

Your employer will not make contributions to the Fund for work under this temporary program and, therefore, you will not receive additional benefits. You and/or your employer are required to notify the Fund Office before you may begin work under this temporary exception; otherwise, this exception will not apply to you and your benefits will be subject to suspension.

This is a pilot program and may be extended at the discretion of the Board of Trustees.

If you have not reached age 62 (or age 65 if you first worked in covered employment in 2020 or later), and if you work as a Laborer for any number of hours in the states of Massachusetts, Maine, New Hampshire, Vermont, Rhode Island, Connecticut, or New York, your monthly pension benefits will be suspended while you continue to work. You must notify the Fund Office within 15 days of beginning work, or your monthly pension benefits may be suspended for an additional 6 months after you stop working.

FREQUENTLY ASKED QUESTIONS

Participating in the Fund

No. Your employer’s contributions to the Fund on your behalf are what triggers your Fund participation (or enrollment). You become a participant in the Fund on the first January 1 or July 1 after you’ve worked 250 hours in a 12-month period. Once you become a participant, we encourage you to select a beneficiary if you’re not married. If you’re married, your spouse is automatically your beneficiary unless you tell us otherwise when you apply for your pension, with your spouse’s consent.

You vest after you have earned 5 years of vesting service, provided you have worked 250 hours in 1998 or later.

If you work outside the jurisdiction of the Massachusetts Laborers’ Pension Fund, you may be able to have credits from another pension fund count toward this one. This is called “reciprocating” your work hours. The Fund Office can help you determine if you’re eligible for receiving credits from another pension. The best time to resolve any questions about reciprocating hours is by contacting the Fund Office at the time you earn the hours for work outside the Fund’s jurisdiction. 

Check out the Member Dashboard to view your total pension credits and vesting service.

In certain circumstances, hours earned in excess of 1,600 hours in a calendar year may be used to fill in hours needed to earn a pension credit in another calendar year where a minimum of 250 hours but less than 1,000 hours were worked.

If there are unused hours in your hours bank, you can convert them to pension credit, but only if they were banked before January 1, 2010. Hours banked on or after January 1, 2010, may be applied to years in which you earned at least 250 hours but less than 1,000 hours; however, they cannot be converted to additional pension credits. The conversion rate is 1,000 hours = ¼ pension credit, up to a maximum of 5 pension credits.

Receiving Your Benefit

Yes, you’ll be eligible for a vested pension. You can begin receiving your vested pension benefit any time after you reach age 55 (as a reduced early retirement benefit) or at, normal retirement age (generally, age 65).

For credit earned before January 1, 2010, the reduction is 19% (3% per year for age 55 through 59, and 2% per year for age 60 and 61. For credit earned after January 1, 2010, the reduction is 30% (3% per year for age 55 through 64).

If you have been married for at least one year at retirement, your benefit will be paid as a 50% Spousal Pension (or it will be paid as a 75% or 100% Spousal Pension if you chose one of those options instead).

After you divorce, your spouse would no longer be automatically entitled to your pension at retirement or to a pre-retirement survivor benefit unless a Qualified Domestic Relations Order (QDRO) has awarded it to him or her under the terms of the divorce settlement. You should alert the Fund Office of your divorce and designate a beneficiary for your benefit by completing a beneficiary form and filing it with the Fund Office.

No increases will be made to your monthly payments because of a divorce, and the person who was your spouse will no longer be considered your spouse. Therefore, he or she is ineligible for the survivor option, unless a Qualified Domestic Relations Order (QDRO) has awarded it to him or her under the terms of the divorce settlement.

No. If you divorce and remarry after your pension starting date, your new spouse will not be entitled to any benefits under the Spousal Pension you have started receiving. If your former spouse was awarded some portion of your retirement benefit by a Qualified Domestic Relations Order (QDRO), your remarriage does not change your former spouse’s rights.

No. You can begin receiving a reduced pension as early as age 55, or an unreduced pension if you are eligible for a 30-year service pension. After 10 years of work, you may be eligible for a disability pension at any age.

No. Once you begin to receive your pension, you cannot change to a different payment option.

Yes. Your pension is always payable for your lifetime, and with a Spousal Pension, your spouse will receive benefits for his or her lifetime if you die before them.

Pension Fund benefits and Social Security benefits are separate benefits. The benefits payable under the Pension Fund are in addition to benefits paid under Social Security. Pension benefits will not reduce your Social Security benefits.

The Fund does not provide for any cost-of-living increases.

Yes. The IRS limits annual benefits paid from plans such as the Pension Fund, but these limits are quite high. In the unlikely event you are affected by these limits, you will be notified.

Yes. Federal and state taxes apply.

In the Event of Death

If you are vested, the Fund provides benefits for your surviving spouse or your designated beneficiary if you die before retirement.

Be sure to complete a beneficiary form if you’re not married (available in English, Spanish and Portuguese) and submit it to the Fund Office. Keep it up to date as your situation changes.

The pension is guaranteed to be paid for at least 60 months. If you have not collected 60 payments at the time you die, your named beneficiary will receive the remainder of those payments.

At the time you retire, you may also elect a 120-month certain payments pension. Under that option, the pension is guaranteed to be paid for at least 120 months. If you have not collected 120 payments at the time you die, your named beneficiary will receive the remainder of those payments. Your monthly income will be reduced to reflect the longer payment period.

They should call the Fund Office at 781-272-1000 to get answers to any questions about survivor benefits or for help with applying for benefits.