# Thinking of leaving union questions about pension



## kg7879

I am thinking of leaving the union to pursue other opportunities. I haven't made up my mind whether I am going to to leave but I have some questions. If anybody could help I would appreciate it. Also I know the best resource for these questions would be the union hall but I do not know want to tip my hand since I am still unsure if I am going to leave. 

I have been in the union for ten years and realistically would have another thirty years before I could take a full retirement. So as far as my pension would I even get one with only ten years of service?

I have heard if you have a gap in service you could lose your pension. Is a gap in service considered not working in the union or just not paying your monthly dues?

If I would not get a pension what is the professional way to resign your membership with the union? An email, a letter, in person?

Thanks for any input.


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## HackWork

You should receive documentation about this. Things are different in different locals, but you are often vested in 5 years. Every year you should get a statement telling you how much you will get when you retire from what you worked up until that point. So if you have been in for 10 years, you may get $1000/month. 

The gap in service thing is usually about getting the raise as the pension goes up. 

Ask the other guys in your local first, just out of curiosity. Many of them will know.


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## Southeast Power

We used to not get the raises on years before broken service but they changed that.
I don't know what your situation is but, you can pay your quarterly dues and keep your ticket or put your ticket in the IO.
I wouldn't think twice about letting my local know my intentions. They should be able to counsel you it the best decision for you.
I'm sure they see this quite often, not that many people can make it all of the way through until retirement age.
Health gets to be an issue, people move, come into money, get municipal or private jobs. 
It's not unusual to go out.


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## splatz

If you are worried about tipping your hand maybe you could have your accountant call and say you're doing some planning and he just wants to review the details of your retirement plan.


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## PlugsAndLights

Caveat emptor: Your local may work different than my former local. 

Local union doesn't manage the pension. A private co is hired to do 
so and they provide regular updates and can be contacted with questions
such as this. 
I worked for the union for about 5 years and left the union about 5 yrs 
ago. I still receive annual info advising what my pension will be when I 
turn 60 as well as options for receiving payments starting as early as 
55 with reduced payments. 
I told my local by phone that there'd be no more dues and I wanted back 
the money of mine they were holding. If you like/respect your local 
more than I did mine, you might choose a different route. 
Good Luck,
P&L


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## Rock knocker

Pensions, wether a defined defined benefit or fixed sum plan, as well as retirement plans such as annuities, are all covered by strict Federal law. After you are vested (typically five years, but can vary to the equivalent 10,000 hours) one is fully vested. Meaning the money in the account is all yours.

At this point it becomes illegal to "lose your pension". This does not mean that if the money is held in a defined benefit plan (fixed monthly payments with COLA adjustments which can go on forever regardless of the original sum) that you can ask the union for a check and walk out the door. The money will be held in the pension account until you reach retirement age and then the paymants will start.

Some unions also have annuities and plans similar to 401's and the like. In those instances you can often take a lump sum. If you reinvest the money into a qualified plan there is no tax penalty. If you want to use the money to buy gin and sailboat, the taxes will be huge.

You should be able to get all the information about your plans from the local and the various administrators.


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## kg7879

Thanks for the replies so far. I do have a good relationship with virtually everybody in the hall, but I know that they will try to convince me to stay.

It seems there was a gap in service provision because there have been lawsuits about it and I know a few older guys who left to do maintenance only to scramble back a few years before retirement because they said there were issues with gap in service.


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## Loose Neutral

Pension rules for eligibility are different for every local. looks like you have the time to be vested for your local pension, so that money is always yours just like your annuity. If you continue to pay dues you will be eligible for your international pension based on simply paying your international portion of the dues. As for your nebf, chances are if you aren't or wont be in covered employment and don't have the time to be vested, you will not be eligible for it. Good luck and think wisely.


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## KingNothing

If you contribute to NECA, you will get that retirement benefit when you retire. They will send you a letter after a year of not contributing. IBEW benefit isn't much. If you were an "A" member you will get about $50/month once you retire. You will also get death benefits for your spouse or next of kin around $6700. As far as what you contributed to your local's retirement pension, usually it's different for all local's but on my old local I had to work outside of that local for 2 years. Then I pulled it and reinvested with a local investor. Hope this helps.


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