Union pensions, question about vesting
It’s come to my attention, from another topic on BT, that there may now be laws about union pension funds which could effect me.
Someone said that federal laws now make it mandatory that vesting in a fund must happen in no more than five years. I wonder if this is true and when this law went into effect. And whether it might cover my pension contributions.
I worked in the UBC, carpenter’s union, during most of the 1980s and into the 90s but never got vested because my local’s rules said ten years continuous employment was required, at one thousand hours per year. I contributed many thousands of dollars to that local’s fund so, of course, I’d love to get a pension if and when it’s possible.
Anyone know what’s up with that?
Replies
Contact your old local and ask them. In your case, you would need to find out when the law changed and if there were any provisions to make the change retroactive.
Dave, Not fer nothin' but have you ever been a union member? I want to hear the answer to that question from somebody other than those who have my money in the bank. Thanks.
Yes, I have. I paid my way through college as an Operating Engineer.
I also don't see why my union experience (or lack thereof) would diminish the validity of my response. If the law changed the vesting rules for existing pensions, it may have made provisions to make the changes retroactive. One way to find out is to ask the people who hold (held?) your pension. It doesn't take a union card to know that.
Dave,
Why would I ask the question here if I trusted my union reps to give me an honest, direct answer? Telling me to "call the hall" suggests to me that you're either naive or have very little experience with unions.
I've been a member of both the carpenter's union and the Teamsters. I wouldn't trust either one of them to watch one dime of my money for the time it takes to tie my shoes.
Edit: I left my carpenter's annuity money in my local's interest bearing account and when I went to get it, ten years later, I discovered that it had diminished by half due to annual administrative fees or some such excuse. I guess I should've expected that but it seemed like a safe bet to me. Just more of the same old, same old.
Edited 6/16/2007 1:22 pm ET by Hudson Valley Carpenter
I don't think suggesting that you ask someone who may actually know an answer is naive. Your original post raised a valid question that should be answered. When I suggested in my first response that you contact the union and ask, you blew me off by asking about my union "credentials". Now, you accuse me of being naive and inexperienced. I'm neither one.
Your statement that ...I wouldn't trust either one of them .... speaks volumes. If you think that some of your money may be tied up somewhere, then you need to start asking questions - and the questions should be directed toward whomever you think has it tied up. If you don't (or won't) trust their answers, you can also ask state and/or federal agencies. They usually move at glacial speed, but they do move.
You say that you left some annunity money in a carpenters union account for ten years. Didn't you get periodic statements? Didn't you notice that the balance was decreasing? Why did you let it ride?
What's your goal, here? If you want to recover some money that may be yours, you gotta get proactive. Otherwise, you're sounding a lot like my wife. Her response to most problems is to complain about their existence, lay the blame on someone else, but not lift a finger to find a solution. - lol
What's your goal, here? If you want to recover some money that may be yours, you gotta get proactive. Otherwise, you're sounding a lot like my wife. Her response to most problems is to complain about their existence, lay the blame on someone else, but not lift a finger to find a solution. - lol
I sometimes forget that many guys are having conversations like that with their wives on a regular basis.
Hello DAVE! I'm NOT your wife. I AM making an effort to get objective facts about a matter which just came to my attention yesterday.
Calling the fox in the henhouse and asking him how your chickens are doing probably isn't going to get you an objective report.
Try googling Vesting Pensions.Then look for any of the links with .gov.
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A-holes. Hey every group has to have one. And I have been elected to be the one. I should make that my tagline.
Good advice Bill. Thanks.
Here's a site which offers most of the information I'm looking for, with links to others.
http://www.pueblo.gsa.gov/cic_text/money/secure-4life/secure-pension.htm
HVC,
I've been a member of the UBC&J since the late 70's. Most of my union work was concentrated in the 80's. At that time, I became vested in 7 years, perhaps on total hours worked, rather than actual time. I've kept my card in case of necessity, but can collect a paltry pension upon retirement.
If you've dropped out of the union, then I would expect all the hours to have been lost.
Best bet, contact the pension fund and start asking questions.
Or, ask for direction from a labor relations board.
Here's some interesting reading: Labornet News http://www.labornet.org/news/0000/whatweare.htmlA great place for Information, Comraderie, and a sucker punch.
Remodeling Contractor just outside the Glass City.
http://www.quittintime.com/
Calvin,
Thanks for that article. Definitely interesting.
If you can't trust the people who run the union, maybe you shouldn't be in it?
If you can't trust the people who run the union, maybe you shouldn't be in it?
Spoken like someone who has always had plenty of employment options.
My tale is meant to be cautionary for other members or prospective members. It takes a number of years of membership, observing attitudes, hearing stories and seeing the results of nepotism, etc. to figure out that many union officials can't be trusted. And I'm suggesting that members should be careful about who they elect to represent their interests.
This topic, like most questions asked in a public forum, is meant to serve the interests of others like me, in the same predicament.
Going by the new rules i would have been vested, the old rules i needed so many hours in a row for so many years, None of my friends made it as we had recessions, I called many times and just got the brush off, I dont know what to do either,
Hudson,
I administer retirement plans, mostly 401(k)s. I'm less familiar with tradional pension plans (which is what I think you're talking about), but from what I see the maximum period was changed from 10 to 5 years on January 1, 1989.
To see for yourself, search the Web for "defined benefit plans vesting." Traditional pension plans are known as "defined benefit plans." The Dept of Labor Web site, DOL.gov, has a lot of good information.
As a side note, 401(k)/Profit Sharing plans were required to vest ALL contributions within 6 years (20% per year after the first year). Seven years was allowed for employer contributions prior to the Pension Protection Act of 2006.
Hoosier,
Thanks for your expert advice. That's more than I had hoped for when I posted my question. I'll follow up with some calls, beginning Monday morning.