FAQs & Important Updates

Current rule is 5 years of 1,000 or more per calendar year. Prior to 1998, it was 10 years of 1,000 or more.

Without the waiver program, there are still several ways you may work and receive a pension.

• Call the Fund office and stop your pension while you work, restart it when you are ready to re-retire (and get additional accruals)
• Work outside of the painting and allied trades field
• If 65 or older, you may work up to 40 hours per month in the union
• If 70.5 or older you may work as much as you like in the union with no effect to your pension

The Trustees will re-assess the need for a waiver program in 2019 and a revised program may be available after 2019 with the sole intent of manning jobs where there is not a strong enough union membership to successfully bid on jobs without pulling retirees.

Eligibility: Total and permanent disability by a Participant who meets the following requirements:

a.       Is an Active Employee on the onset of total and permanent disability as determined by the Social Security Administration;

b.      Has not yet attained age 65 at the onset of total and permanent disability;

c.       Has completed at least 18,000 Benefit Hours before the onset of total and permanent disability;

d.      Has completed at least 1,800 Benefit Hours based on actual Employer Contributions (not past service);

e.       Has never performed any work in Noncovered Employment

Amount: The amount the Disability Pension is equal to 110% of the Participant’s Accrued Benefit, reduced by 3% per year (0.25% per month) that the benefit begins before age 65, but not more than the Accrued Benefit. For this purpose, if the Participant is younger than age 55 at the time their Disability Pension begins, the amount of the benefit will be determined as if the Participant is age 55. If the Participant has completed at least 54,000 Hours, the amount of the Disability Pension is equal to the Participant’s Accrued Benefit.

Disability benefit is 10% over your benefit amount, not to exceed your normal retirement benefit amount. If you are declared permanently and totally disabled prior to the age of 55, the pension benefit will be calculated as if you are age 55 at retirement.

Example:

Benefit at age 65 = $2,000

Retired at age 55 with 22,000 hours = $2,000 x 30% = $600

Benefit at age 55 = $1,400

Disability benefit = $1,400 x 10% = $140 + $1,400 = $1,540

Pre-Retirement Death benefits:

• Married Vested Participants and over earliest retirement age: Spouse will receive 50% of J&S payment form based on participants accrued benefit.
• Married Vested Participants under earliest retirement age: Spouse will receive an option of a monthly payment (beginning at members’ earliest retirement age), a lump sum payment, or a combination of both.
• Single Vested Participant – beneficiary receives 50% of employer contributions.

If you divorce PRIOR to retirement, your ex-spouse will not have a right to a pension unless the Fund office receives a QDRO (Qualified Domestic Relations Order). Your spouse will automatically be removed as your beneficiary unless a QDRO directs otherwise. A court can preserve your ex-spouse’s right to a benefit through a QDRO. The QDRO must adhere to Plan rules and regulations and cannot assign a greater benefit to the ex-spouse than what the participant would receive If you divorce AFTER retirement, no effect on the payment of the survivor can be changed. A QDRO can require the Plan to make payments during your lifetime to your former spouse. Contact the Fund office to receive sample QDRO language and benefit information if you are going through a divorce.

Normal Retirement – Age 65, receive the full amount of accrued benefit

Special Early Retirement (full amount of benefit) – As of Jan 1, 2018,

• Active Employee at age 55 with 60,000 Benefit Hours
• Active Employee at age 60 with 54,000 Benefit Hours
• Active Employee at age 62 with 45,000 Benefit Hours

Early Retirement Benefit 3% Reduction – As of Jan 1, 2018,

• Active Employee at age 55 with at least 45,000 Benefit Hours
• Active Employee at any age with 60,000 Benefit Hours

Early Retirement 6% Reduction – As of Jan 1, 2018,

• Vested at age 55 with at least 18,000 Benefit Hours

• Five Year Guaranteed
  • Single Participants
  • Married Participants must get written consent from their spouse
  • Your payment will be guaranteed for 5 years (60 months) and payable for your lifetime
  • If you die before you receive 60 payments, your designated beneficiary will continue to receive the remaining payments at the same amount until a total of 60 payments have been made
  • If you die after receiving 60 payments, no further benefits will be payable
• Ten Year Guaranteed
  • Single Participants
  • Married Participants must get written consent from their spouse
  • Your payment will be guaranteed for 10 years (120 months) and payable for your lifetime
  • If you die before you receive 120 payments, your designated beneficiary will continue to receive the remaining payments at the same amount until a total of 120 payments have been made
  • If you die after receiving 120 payments, no further benefits will be payable
• Partial Lump Sum   
• Joint and Survivor (50%, 75% or 100%)
  • If you are married your pension will be payable in the form of a Joint and Survivor, unless you and your spouse reject this option in front of a Notary Public
  • The benefit is actuarially adjusted for your lifetime
  • Upon your death, your beneficiary will receive a lifetime benefit
  • If your beneficiary dies before you, no other beneficiary can be named and your benefit will remain the same for your lifetime
• Joint and Survivor with Pop-Up
  • If you are married your pension will be payable in the form of a Joint & Survivor, unless you and your spouse reject this option in front of a Notary Public
  • The benefit is actuarially adjusted for your lifetime
  • Upon your death, your beneficiary will receive a lifetime benefit
  • If your beneficiary dies before you, no other beneficiary can be named however your benefit would be increased to the amount it would have been if you had not chosen the J and S Option

The Fund Office recommends that you begin the process at least 3 months prior but no more than 6 months before your planned retirement date (this is to avoid any delays in your monthly payment).

Example: your intended retirement date is Jan 1st; you can submit your application as early as August.

The Fund is legally required to send these notices to all Plan participants, beneficiaries, and participating employers regardless of the Fund status.  You will receive this notice every year with updated information regarding the funding status of the Plan.

This has no effect on your benefits. The Pension Plan is a defined benefit plan that pays benefits based on a benefit formula rather than an individual account. Pension Plans are funded over periods of up to 30 years on a rolling basis. The funding percentage looks at the expected benefit costs over decades into the future against current assets.  It is a guidepost for the Trustees in setting contributions so that the plan will continue to have assets to pay benefits in the future.

The funded percentage reported on the notice is the ratio of the Plan’s actuarial value of assets to liabilities.  It is decreasing, in large part, because the full impact of the 2008 investment loss will take 10 years to be reflected in the actuarial assets. We expect the funded percentage to start increasing after 2018 when all of the 2008 loss is reflected in the asset value. Our actuaries project that the Plan’s funded percentage will rise steadily after 2018 to 100% by 2033.

By law, pension plan assets must be held in a separate trust account.  The majority of plan assets are held at Northern Trust Company. They are invested with the advice of a well‐known professional investment consultant, NEPC, LLC.  All assets are managed by professional asset managers.