Pension Fund Highlights

Overview

What is the New England Health Care Employees Pension Fund?

The New England Health Care Employees Pension Fund is a Taft-Hartley defined benefit plan. The plan is administered by an equal number of management and union trustees who make up the Board of Trustees. Your benefit is defined by a formula which is based on your years of credited service and earnings during a specified period of time before you retire.

Participation in the Plan

How do I become a participant?

There are two requirements to become a participant of the Pension Plan

  1. You are in a covered job class with a contributing employer under an 1199 Collective Bargaining Agreement (CBA)
  2. Your employer is required to contribute to the Fund on your behalf under the terms of the CBA.

Vesting

  • Vesting Service – You earn one year of vesting credit if you work at least 1,000 hours in a calendar year for a contributing employer

Earning and Calculating Your Pension Benefit

Your pension benefit is determined by a formula that takes the sum of your earned Credited Future Service and your average earnings.

  • Credited Future Service – Each month that you work the required number of hours per the CBA your Employer will make a contribution on your behalf. Each contribution will earn you a credit for that month (.0833 of credited service per monthly contribution)
  • Average Earnings – The average of your highest five consecutive years of wages within a ten-year time frame in which you received a future service credit.  The plan takes your highest five consecutive years of wages, divides them by the number of months that a contribution was received, and multiplies them by 12
    • i.e., Total Wages in a five-year period = $171,593.27; total number months that a contribution was received = 59 months.
      •  $171,593.27 / 59 = $2,908.36 x 12 = $34,900.32 (your average earnings)
  • Pension Benefit Percentage Rate – A percentage that is determined by the Board of Trustees 

Below is the formula that is used to determine your pension benefit:

Average Earnings x Total Credited Future Service x Pension Benefit Percentage Rate / 12= Your monthly pension benefit

Becoming 100% Vested in the Plan

  • You become entitled to your pension benefit when you become 100% vested. You must meet one of the following requirements (plus have one additional month of credited future service) to become vested:
  • 5 Years of Vesting Service (five years of 1000 hours or more) or
  • 5 Years of Credited Future Service (60 future service credits) or
  • Any combination of 5 calendar Years of Credited Service and Years of Vesting Service (the same period shall never be counted twice)

Pension Fund Questions and Answers

Pension Fund Questions and Answers

How do I enroll in the Pension Fund?

You need to complete an enrollment form. Mail the completed form to:

1199 New England Health Care Employees Pension Fund
77 Huyshope Avenue, 2nd Floor
Hartford, CT 06106-7001

What is a covered job class?

Any position listed in your Collective Bargaining Agreement (CBA), Recognition section (usually listed in Article 1 or the Preface of the CBA).

Who makes contributions to the pension plan?

Contributions are paid entirely by your Employer on your behalf on a monthly basis based on overall employee payroll. Your Union dues do NOT go toward your pension, nor are any deductions taken from your paychecks for pension contributions. Your employer is required to contribute on your behalf when you work the required number of hours in a month as outlined in your CBA.

How do I become vested?

You earn one year of vesting service if you work 1,000 or more hours in a calendar year. You need 5 vesting credits plus at least one (1) additional employer contribution to be 100% vested in the Plan.

Please refer to the Summary Plan Description (SPD) for additional ways to fully vest in the plan.

Do I need to name a beneficiary?

If you are married your spouse is automatically your beneficiary.

If you are single, you do not automatically have a beneficiary for your pension. When you apply for your pension benefit you can elect an option to name a beneficiary.

What if I die before I retire?

  • If you are married; your spouse is automatically entitled to a 50% Joint & Survivor (J&S) benefit (unless you have chosen a different option with the written consent of your spouse).
  • Under the J&S benefit, if you die after age 55 your spouse can collect immediately or delay to when you would have reached age 65.
  • Under the J&S benefit, if you die before age 55 the earliest your spouse can begin collecting a benefit is when you would have reached age 55. Your spouse will receive these payments for life.

What happens if I transfer to or from a bargaining position to a non-bargaining position?

  • If you are vested in the Plan before you transfer, you are entitled to your vested benefit at retirement.
  • If you are not vested in the Plan before you transfer, you may still be entitled to (1) vesting credit if you work at least 1,000 hours in that calendar year.
  • You will not receive any benefit credits while in a non-bargaining position.
  • You may not collect your pension while in a non-bargaining position with a contributing employer.

Are loans or hardship withdrawals allowed?

No, there are no provisions for loans or withdrawals.

Can I take a lump sum distribution?

No, the pension benefit is only payable as a monthly benefit.

When can I retire?

If you are 100% vested, you can:

  • Early retire any time after age 55. If you early retire your pension is subject to a 6% reduction per year (i.e.: 60% reduction at age 55; 30% reduction at age 60; 6% reduction at age 64)
  • Normal retirement age is 65 with no reduction.

What is an Unreduced Early Retirement?

You must complete 10 years of credited future service and must work in a covered job class for the 10 years immediately preceding your Early Retirement Date and

You must also meet one of the following requirements:

  • You are age 55 and the sum of your age and years of credited service, vesting service, or combination of both equals at least 90
  • You are age 62 and have completed 25 years of credited service, vesting service or any combination of the two

Is my pension benefit taxable?

Yes, your pension benefit is considered a taxable source of income. You will receive tax forms to complete when you apply for your benefit.

Can pension benefits or eligibility criteria change?

Yes, in accordance with applicable federal law, the Pension Fund Trustees are allowed, and under certain circumstances are required, to make changes to benefits and qualifying criteria in their capacity as fiduciaries to the Pension Fund. If you are potentially effected by any changes adopted by the Trustees, you will receive notice of any benefit reductions prior to the implementation of these changes by the Pension Fund.

Please note the purpose of this Q and A is to provide informal guidance only and that all elements  of the Pension Fund are controlled by the terms of the Fund Plan Document and SPD

Who should I contact if I have additional questions?

77 Huyshope Avenue, 2nd Floor Hartford, CT 06106

Where can I get additional information about the Pension Plan?

Please visit our website www.1199nefunds.org and click the Pension Fund link. Under Pension Fund Forms click on the Pension Fund Summary Plan

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