PAINTERS & ALLIED TRADES D.C. #35
PENSION FUND
Submitted by Sharon P. Saganey
ADDRESSING COMMONLY ASKED QUESTIONS
PROVISO: This is a general summary of the rules and regulations of the Painters & Allied
Trades D.C. #35 Pension Plan and is for information only. It does not guarantee
a Participant benefit or correctness of information. A Participant must meet
specific work tests to qualify for any or all of the benefits described above.
Refer to you Pension Fund Summary Plan Description for detailed information.
Q - What is the earliest age that I may retire and what is the reduction in my
pension benefit?
A - Generally, if you are active and have earned at least ten (10) years of Vesting
Service, you may retire on an Early Pension at age 55. If you are eligible for an
Early Pension, you would reduce your Regular Retirement Pension amount by ¼ of
1% for each month you are younger than age 60. (or 3% per year)
If you are active and have earned at least five (5) years but less than ten (10) years
of Vesting Service, you may retire at age 65 only.
Q - What age may I retire without any reduction in my pension benefit?
A - Generally, if you have earned at least 10 years of Vesting Service, you may retire at
age 60 without any reduction in your pension benefit.
Exceptions:
• If you earned at least 5 years but less than 10 years of Vesting Service you may only retire at age 65.
• If you have earned a ¼ Pension Credit after June 30, 2000 and have thirty (30) or more Pension Credits, you may retire any time between age 55 and 59 with out any reduction.
This is called a “Service Pension”.
Q – What is the current accrual rate for active members and how do I calculate my
monthly Pension amount at age 60?
A - First of all, because the Pension Plan rules and regulations include multiple work
tests to qualify for benefit increases etc., I encourage you to contact me a (617) 524-
1240 for an accurate and individualized Pension worksheet reflecting your specific
pension benefit. However and generally, if you earned at least ¼ Pension Credit after
July 1, 2007, the current accrual rate for active members is $145 per Pension Credit.
• Calculated at age 60 as follows:
30 (thirty) Pension Credits earned as of December 31, 2007 equals $4350 per month.
30 Pension Credits multiplied by $145 = $4350 per month
Q – Is there a maximum amount of Pension Credits I may earn and receive benefits?
A – No, after 1994, there is no maximum amount of pension credits. i.e. if you are active and
earn 40 Pension Credits, your monthly benefit will be calculated using all 40 pension credits.
Q – I’m a 50 year old “married”, active and vested Participant in the Pension Plan – if I die
before retirement, what benefit will my wife receive?
A – Since you are active and vested, (have earned at least 10 years of Vesting Service), and
since you’ve earned at least ¼ Pension Credit within 24 months prior to your death, your
spouse would be entitled to 75% of the pension benefit you would have received if you had
retired at age 55 and elected the 75% Joint/Survivor benefit.
Q – I’m a 50 year old “single”, active and vested Participant in the Pension Plan – if I die
before retirement, what benefit will my beneficiary receive?
A - Since you are active and vested, (have earned at least 10 years of Vesting Service), and
since you’ve earned at least ¼ Pension Credit within 24 months prior to your death, your
beneficiary would be entitled to a lump sum benefit of $1500 multiplied by the amount of
pension credits you have earned.
Q – Are there any other death benefits for inactive or non-vested Participants?
A - Yes, there are additional death benefits available for those who are not active
or not vested. Please refer to you Pension Fund Summary Plan Description, pages
28-29 for other death benefits and the work tests required for eligibility.
Q - When I retired, I elected the 75% Joint/Survivor benefit so my spouse would receive
a monthly pension when I die – What happens to my pension amount if my wife
dies before me?
A - If you retired after 1982 and elected the 75% or 100% Joint/Survivor Option and
your wife dies before you, your monthly benefit will “pop-up” or increase
to the amount you would have received if you had elected the Straight Life Option.
Q - Once I retire, are there any Lump Sum Death Benefits from the Pension Plan?
A - Yes, if you are active and vested when you retire, there is a Lump Sum Death Benefit
equal to 12 times your monthly pension to a maximum of $15,000.
For example:
• you retire with 10 Pension Credits and your monthly pension is $1450 (10 pension
credits times $145 = $1450) – Your beneficiary would receive, upon your death,
a Lump Sum Death Benefit of $15,000 – calculated by multiplying $1450 times
12 = $17,400 – Since the death benefit maximum is $15,000, that’s the amount your beneficiary would receive upon your death.
Q - After I retire, are there any health benefits through the Painters & Allied Trades D.C.
#35 Health Plan?
A - Basically, after your health eligibility ends with the Painters & Allied Trades D.C. #35
Health Plan, you and your spouse must find an outside health plan for coverage. If
you are on active health insurance when you retire, Cobra Coverage is offered for 18
months. Or, if you meet the requirements, you may choose the “Supplementation of a
Non-Group Plan” option which is described on the yellow sheets on the left side of folder
and in the Health Fund Summary Plan Description on pages 20-21.
In addition, if on the day you retire, you are eligible for active (not Cobra) health coverage
through the Painters & Allied Trades D.C. #35 Health Plan and you collect your pension
check directly from the D.C. #35 Pension Plan , you and your spouse will be eligible for
lifetime vision care benefits through Davis Vision and hearing benefits through NECP.
Q – Can I work in the trade after retirement without a suspension of my monthly pension
benefit?
A – Yes, according to the Pension Plan Rules and Regulations, you may work in Covered
Employment as follows:
• age 55-64 – you may work in Covered Employment up to 300 hours during any 12 month
period (unless you are a Total or Partial Disability pensioner)
• age 65-69 – you may work in Covered Employment up to 375 hours during any 12 month
period (unless you are a Total or Partial Disability pensioner)
• age 70 and beyond – you may work in Covered Employment at any time (unless you are a Total of Partial Disability pensioner)
Q - It’s very important to my wife and I that we are financially secure when we reach
retirement age and, that we make the correct decision regarding election of a
Joint/Survivor (spousal pension) - Is there something we should be doing now to
prepare for future retirement?
A – Yes, it is recommended that you contact a Financial Planner years before you plan to retire.
A Financial Planner will look at your specific situation and design a plan to meet the
unique needs of you and your family. Many factors should be analyzed when making a
pension decision and addressing this area of your financial life early, even decades in
advance, will allow you to explore, understand and take advantage of techniques that can
maximize your retirement income.
In order to assist the membership in making these important decisions District Council
#35 supports the independent financial planning firm of Integrated Financial Partners. (IFP)
IFP has agreed to waive all financial planning fees in order to offer their programs as a
complementary service to our membership. If you would like to schedule a consultation,
please contact John Pastore at (781) 890-3045, ext. 244.
Please contact Sharon at (800) 799-1240 for a Health, Pension or Annuity Fund Summary Plan Description. In addition, call to set up a meeting to discuss your retirement benefits, health coverage, to request an application or to receive an individual pension statement. The blue sheet on the left side of the folder outlines how you should proceed when you are ready to retire.
PROVISO: This is a general summary of the rules and regulations of the Painters & Allied
Trades D.C. #35 Pension Plan and is for information only. It does not guarantee
a Participant benefit or correctness of information. A Participant must meet
specific work tests to qualify for any or all of the benefits described above.
Refer to you Pension Fund Summary Plan Description for detailed information.