Pension
No investment is more important than the one you make in preparation for your retirement years. Local 3 provides a stable, dependable pension plan that allows members to retire with dignity and a good quality of life.
The Local 3 pension plan, in conjunction with Social Security, allows you to maintain a comfortable lifestyle during your retirement and provides you or your dependents with basic financial protection in the event of disability or death.
If a bargaining unit participates in the Local 3 pension program, the employer contributes to the Operating Engineers Pension Trust Fund at an hourly rate. Each year in which you work at least 1,000 hours – about the equivalent of working full time for six months – you will receive one pension credit. Participants in the union’s pension plan are vested after earning five pension credits. For vested members with at least five pension credits but less than 10, monthly pension benefits are available at age 65. Vested members with at least 10 pension credits may draw their full pension benefit at age 62.
Upon retirement, eligible members begin receiving a monthly pension benefit based on the amount of contributions, pension credits and years of service.
Other highlights of your pension plan include retiree health insurance and early retirement.
- Retiree health insurance. Retired members with 10 or more pension credits and who meet all the plan’s requirements are eligible to receive retiree health insurance. This plan pays 80 percent of the covered charges remaining after Medicare’s payment, or if you’re not yet 65 years old and eligible for Medicare, the plan pays covered charges at 80 percent of the usual, reasonable and customary rate.
- Early retirement. Local 3 members can retire with a reduced pension or full pension benefits as early as age 55, depending on the number of pension credits and years of service.
For more information about your pension, please contact the Fringe Benefits Service Center at (800) 532-2105.
Did you know? Nearly 70 percent of union workers have a pension compared to only 14 percent of non-union workers.
The Local 3 pension plan, the annuity plan and the vacation & holiday pay plan are administered according to the provisions of the applicable collective bargaining agreement (CBA) that governs a particular job. Not all CBA’s contain the same contribution amounts or rates. Refer to the specific CBA for accurate information.