The Midwest Operating Engineers Pension Plan is a defined benefit Plan based on a set formula, and will be paid on a monthly basis for the member’s lifetime. At retirement, married participants can elect a lifetime survivor benefit for their spouse in the event the member dies.
It is imperative that you read and share with your family the Pension Plan’s Summary Plan Description (linked above) which outlines all of the benefits in further detail.
If you have any questions or you are considering retirement within the next six months, please contact the Retirement Services Group at (708) 579-6630.
The monthly vested accrued benefit is determined based on the following factors:
- Employer contributions based on the rate(s) specified in the member’s collective bargaining agreement (CBA) multiplied by
- Multiplier in effect at the time of the Employer Contributions are contributed multiplied by
- Vested Percentage
Your vesting percentage is your nonforfeitable right to a monthly pension benefit. You automatically receive one Vesting Service Year for your first hour worked in your first Plan Year. The Plan Year is from April 1 – March 31. For every 500 hours worked in a Plan Year, you will receive one Vesting Service Year.
The current Vesting Service schedule is as follows:
Each Pension type has certain eligibility requirements that must be met.
- Monthly Pension Benefit (Early, Normal, Vested) payable for your lifetime
- Death Benefits
- Pre-Retirement death benefit
- Post retirement lump sum death benefit
- Post retirement surviving spouse monthly benefit payable for spouse’s lifetime
- Disability Benefit (Operating Engineer or All Work)
Refer to your Summary Plan Description for specific requirements.
Generally, for both Normal Retirement age (NRA) and Early Retirement Age (ERA), for Participants that have 10 Vesting Service Years at retirement and who have first Hour of Service in Covered Employment on or after:
Reduction for Early Retirement is 3% per year of .25% per month for which benefits commence prior to your NRA.
Normal Forms of Payment:
- Single: 5 Year Certain & Life
- Married: Joint & 50% Survivor
Optional Forms of Payment:
- 10 Year Certain & Life
- Joint & 75% / 100% Survivor
- Joint 50% / 75% / 100% Survivor with Pop-Up
- Accelerated level income on all optional forms of payment
If you and your spouse elect one of the Joint & Survivor options, subsequent to the members death, the spouse’s monthly benefit will be payable based on the elected % and payable over your spouse’s lifetime.
Once you have received your first benefit payment, your benefit option may not be changed.