LABORERS’ ANNUITY FUND

Invest in your retirement and grow your savings by participating in the Massachusetts Laborers’ Annuity Fund. Each month, our professional financial managers work diligently to invest contributions from your employer on your behalf and increase your retirement funds over time.

When you retire, you’ll receive the full value of your annuity, reflecting the eligible hours you’ve worked and the total value of your account’s investments.

If you’ve worked 100 hours in the past year as a union Laborer, you’re eligible to begin investing.

Ready to apply?

If you’re thinking about retiring, contact the Annuity Fund office or download the application.

APPLY NOW

ANNUITY BENEFITS

Your Account

When you become a participant in the Annuity Plan, an individual account is established in your name. Your employer will make contributions to this account on your behalf. These contributions are updated on a monthly basis and summarized at the end of each year. You are not required (or allowed) to contribute to the Fund.

To view your account, visit the Member Dashboard.

Your yearly Account Statement contains:

  • Employer contributions made on your behalf
  • Investment earnings and/or losses
  • Distributions made from your individual account (if applicable)
  • Administrative expenses, which are allocated proportionally across all individual accounts

Eligibility

You become a participant in our Annuity Plan automatically after you’ve worked at least 100 eligible hours in a calendar year. You don’t have to do anything until you’re ready to retire.

Your Annuity is designed to support you when you retire, so you can only receive the benefit if you’re retiring and meet the eligibility criteria.

You can only receive your benefit if:

  • You retire at the age of 65 and begin taking your pension or Social Security Retirement Benefit
  • You retire early, between the ages of 55-65
  • You reach the age of 72 while still working
  • You do not work for an eligible employer for at least 12 consecutive months, or
  • You become permanently disabled and are unable to work

To receive a Disability benefit, you’ll need a Social Security Disability Letter — or, if you’re denied, you’ll need to be approved by the Massachusetts Laborers’ Benefit Funds contracted physician.

Payment Options

The Massachusetts Laborers’ Annuity Plan allows you to choose from several options to receive your funds so that you can select the best option for you and your family. Please note that while some payment plans are automatic for single and married participants, you are not required to choose an automatic plan.

Periodic Payments (from 1 up to 15 years)
Automatic for unmarried participants (married participants may jointly elect). Lifetime monthly income for a specified period of time from 1 up to 15 years.

If a participant dies before receiving the specified number of monthly payments, the beneficiary will receive remaining payments.

Lump-Sum Payment
Optional for any participant. Automatic for any participant with a benefit that is $5,000 or less.

It can be paid (1) directly to you, (2) as a direct rollover, or (3) split between payment to you and as a direct rollover. You will be notified by the Fund Office if your distribution is eligible for rollover treatment.

Combination Lump-Sum/Periodic Payment

Optional for any participant. Combines lump-sum and periodic payment options.

Rollover

Optional for any participant with a balance of $200 or more. You may roll over your entire balance to another qualified retirement account, such as an IRA, without any tax consequences.

Partial Rollover

Optional for any participant with a balance of $500 or more. You may roll over a portion of your annuity balance (must be a minimum of $200) and have the remainder paid to you as a lump-sum payment.

Surviving Spouse/Beneficiary Benefits
The Plan provides benefits for your surviving spouse or designated beneficiary in the event of your death.

The Fund Office can help your beneficiary through the process of applying for benefits and answering any questions about survivor benefits. To learn more, call 781-272-1000.

Please note that in the case of a direct payment, 20% will automatically be withheld to pay Federal income taxes. Massachusetts State income taxes also apply. With a direct rollover to an eligible retirement plan, no taxes or penalties will be withheld. You should be aware that a 10% Federal tax penalty may apply to most distributions made before attainment of age 59½. Before deciding to retire or electing a payment option, you may want to consult with a professional tax advisor.

For more information on your benefits, please download the Annuity Fund’s Summary Annual Report.

HOW TO APPLY

When you’re ready to receive your benefit, all you have to do is submit an annuity application. You must apply for your benefit at least 30 days, but not more than 90 days, before the first month you are eligible to receive your Annuity Benefit.

Download Application

Not sure where to submit your application? Find our office or contact our team.

If you are approved, you should start receiving your payment about 30 days after completing your application. Your annuity must start no later than April 1st of the year after you reach age 72.

If your application is denied, you have the right to appeal within 60 days of receiving word of your rejection.

FREQUENTLY ASKED QUESTIONS

No. You will become a participant automatically after you have worked in covered employment and the Fund receives contributions for at least 100 hours in a calendar year on your behalf. If you are not married, you should complete a Beneficiary Designation Form and submit it to the Fund Office.

You will receive an annual statement (usually in late fall) that shows the value of your individual account as of December 31 of each year.

Your account vests after you complete 100 hours of covered employment during a fiscal year (January 1 through December 31).

You are entitled to the full value of your account

  1. If you are totally and permanently disabled (as determined by the Social Security Administration); or
  2. Collecting a pension; or
  3. Are at the end of a 12 consecutive month period for which no contributions have been received on your behalf; or
  4. Upon your death, your beneficiary or estate will receive the benefit

Upon your death, your benefit will go to the beneficiary (or estate) that you elected on your beneficiary card on file at the Fund Office. If you have not named a beneficiary, fill out an Annuity Beneficiary Card to name a beneficiary. Once it is completed, send it to the Fund Office.

Your benefit amount will be based on the balance of your individual account as of the last monthly valuation date, plus any employer contributions made since the last valuation date, less any distributions or administrative expenses. For example, if you apply June 1 (your application must be received no later than the 15th of the month), the amount you receive July 1 will be based on the value of your account as of May 30.

Administrative expenses include any expense that is associated with operating the Fund, such as day-to-day expenses (payroll, taxes, office rent and telephone) and professional consulting fees (legal, accounting, investment management fees and programming fees). The administrative expenses are divided proportionately across all participants’ individual accounts.

No. Once you begin to receive your benefit, you cannot change to a different payment option.

Plan benefits and Social Security benefits are separate benefits. The benefits payable under the Plan are in addition to benefits paid under Social Security. Annuity Plan benefits will not reduce your Social Security benefits.

No. The Plan does not offer either of these options.

No. Only the collectively bargained employer contributions are allowed to be contributed to your account.

You are now able to withdraw a portion of your Annuity balance (if eligible) and leave the remainder in the account.

If you are under age 59 1/2, there will be a 10% Federal early withdrawal penalty tax in certain circumstances. Therefore, you should carefully read “The Special Tax Notice Regarding Plan Payments” that will be provided to you at the time you elect to receive your benefits. You may pay this penalty at the time of withdrawal or upon filing your income taxes.

There is a mandatory Federal income tax of 20% imposed on all lump-sum distributions and most periodic distributions. There is also a 10% Federal early withdrawal penalty tax imposed on most lump-sum distributions made before age 59 ½ or age 55, if retired and collecting a pension. Massachusetts State tax is 6%. The 10% Federal penalty tax and the State tax can be paid at the time of distribution or upon filing your income taxes.

At this time, the Plan does not provide for any cost-of-living increases.

Applications completed and returned by the 15th of the month will be mailed out the last working day of that month. If your application is approved, the check will be dated for the first of the following month.

No. All checks are sent out via regular mail delivery due to the high monthly volume.

No. The check will be mailed directly to the institution you have chosen.

If you are married, your spouse is generally the automatic beneficiary. I If you have not named a beneficiary, fill out the Annuity Beneficiary Card to name a beneficiary. Once it is completed, send it to the Fund Office.

If you do not have a beneficiary named, someone must first become the administrator of your estate by going through Probate court before a benefit can be distributed.

If you are actively employed when you die, the Fund Office will contact your spouse or beneficiary if the Fund Office is notified of the death. Otherwise, your spouse or beneficiary will need to notify the Fund Office of your death to get the distribution process started. You should alert your spouse or beneficiary to that requirement.

No. Payments to your surviving spouse will not be affected by remarriage.

Your completed Annuity application should be submitted by the 15th of the month prior to the month you become eligible to collect your Annuity. Your check will be mailed on the 1st of that month.

Yes. Any remaining balance in your account is subject to earnings or losses from investments. Your monthly check amount will also be adjusted once a year to reflect these earnings or losses.

A photocopy of your birth certificate, or one of the other documents listed on the application, PLUS a copy of your Social Security card and a copy of your driver’s license or a state-issued photo I.D.