Welcome to the IBEW LU 490 Benefits Page
Kathleen Smith is the Benefits Administrator, We are here to work for the membership. Please call our office anytime if you need assistance or have questions.
It definitely pays to be organized – that’s a fact! According to the U.S. Department of Labor:
- Union workers weekly earnings are 27% higher than non-union workers.
- 69% of union workers enjoy guaranteed (defined benefit) pensions, while just 14% of non-union workers have these pensions. IBEW LU 490 also has an annuity plan (defined contribution).
- 75% of union workers receive health benefits, while just 49% of non-union workers receive medical benefits.
On behalf of the officers and members of Local Union 490, we wish to extend a cordial welcome. We hope that you will be an active member. Unions are only successful when the rank and file members play an active role in all our endeavors. Following is a brief description of the benefits IBEW LU 490 offers:
There are three benefit funds: Health & Welfare, Pension and Annuity. Contractors contribute monies to each fund, on your behalf, for every hour worked. These monies are sent from the contractors that you work for along with a Monthly Report of members and hours worked, to the Local Union 490 Benefits Office. Upon receipt, all information from the reports is transferred to your file in the computer. This way, we have an ever-growing record of who you worked for, when, and how many hours were worked, and which benefits were paid in for you.
Health & Welfare Benefits
The health insurance package is administered by New England Electrical Workers Benefits Fund and is Anthem Blue Cross/Blue Shield. You become eligible on the first day of the calendar month following your having accumulated 500 hours of credited employment within the previous 12 months. You will be credited to your “Bank of Hours” for each hour you work in covered employment for which the Benefits Fund receives contributions from a participating employer. The maximum number of hours you can accumulate in your bank is 900 hours (6 months of coverage). 150 hours will be deducted from your Bank of Hours for each month coverage.
Once you have earned the 500 hours, you will receive a Summary Plan Description and ID cards. N.E.E.W. Benefits Fund will require you to fill out an enrollment/beneficiary card and return to their office at PO Box 5817, Wallingford, CT 06492. Their phone number is 1-800-446-8646, or you may call Kathy at the LU 490 benefits office.
Pension Fund
The Pension Fund is funded by signatory union contractors who contribute $3.90 per hour for each hour worked by the member. The Pension Fund is a Defined Benefit Plan, which means that credit is given based on hours worked per year. 1200 hours (worked between June 1 and May 31) are required for one year of credited service. If you work less than 1200 hours, you will receive credit in tenths for each 120 hours worked. The current benefit rate is $99.00 per month for each year of credited service, i.e. 25 years of credited service X $99.00 = $2,475.00 per month at normal retirement age. Normal retirement age is age 65 or with 85 total years (age plus years of service to equal 85). Vesting requires five years to be fully vested. The Pension Plan has no cash value except in case of death, which would then pay contributed monies to your beneficiary. The beneficiary can collect 50% of your pension for the rest of his/her life at what would have been your normal retirement age, of if you elect in a lump sum. This lump sum distribution election must be made before your death with both you and your spouse’s signatures notarized.
Annuity Fund
The Annuity Fund is set up as a qualified retirement plan also. If differs by being a Defined Contribution account which is administered by Invesmart. The contractor sends a dollar amount for each hour you work. The current rate is $2.25 per hour. Vesting is immediate upon credit of the first dollar. Since this is a Qualified Retirement Plan, withdrawal is only available after a six month break in service (no contributions made to your account). There are no exceptions for first-time home buyers, or for college expenses. Please be aware, however, there are stiff penalties and withholdings due to the IRS.
I hope this summary is helpful in explaining the benefits available to you and the purpose of the different funds. We are here to answer your questions and help in any way we can. We look forward to meeting you. Best regards to you and your families.
Kathy Smith
Benefits Administrator
ksmith0327@aol.com
