Call the Fund Office: 800-922-3240 or 203-934-7991.
Becoming a Participant
You become a Participant in the Fund on the date you begin working in Covered Employment and contributions are received by the Fund Office.
Covered employment is work covered by a written agreement, typically a Collective Bargaining Agreement, between your employer and the Laborers’ Union, which required your employer to make contributions at a fixed amount per hour to the Connecticut Laborers’ Annuity Fund on your behalf. An employer who has signed such an agreement is a Contributing Employer.
Covered Employment also means any service for which contributions have been made by your employer under an agreement with the Annuity Fund.
Contributing Employers make all contributions to the Fund. Participants are not required to—and cannot make—contributions to the Fund.
You are always 100% vested in your account balance in the Connecticut Laborers’ Annuity Fund.
Your Participant Account
An account is established for you when you become a Participant in the Annuity Plan. Your Participant Account consists of Employer Contributions made on your behalf. The plan is valued each December 31st for any investment earnings and/or losses less payments made to you, administrative fees and QDRO assignments, or IRS levies.
Contributions to your Participant Account are made by your Contributing Employer for each hour you work under the terms of a Collective Bargaining Agreement. The most recent contribution rates to the Fund have been:
|Work in Covered Employment On or After||Contribution Rate per Hour|
|April 2, 2017||$2.40|
|April 7, 2019||$3.10|
|April 5, 2020||$3.90|
|April 4, 2021||$4.10|
|April 3, 2022||$4.50|
What Types of Distributions Are Available?
You will be eligible to begin receiving benefit payments from the Fund when you retire, terminate employment, attain Normal Retirement Age, or become disabled, provided you satisfy the necessary requirements. You cannot take a loan or hardship withdrawal from the Annuity Fund.
Termination of Covered Employment is defined as:
- a period of three consecutive full months have elapsed since contributions were received on your behalf, and
- it has been four full calendar months since you last worked in Covered Employment.
IMPORTANT: If you meet the eligibility requirements above but you return to Covered Employment and/or the Fund Office receives contributions on your behalf before the distribution is paid on your behalf, you will not be eligible for a distribution at that time.
Applying for a Regular Distribution
To receive a Regular Distribution you must apply in writing and complete a Regular Distribution Application. You can find the application form on the Forms page or you can contact the Fund Office. On the Forms page, you can also download a CLAF Application Checklist, which will help you include all of the documents required by the Fund Office to process your Application.
Effective July 1, 2022, you will be eligible to apply for an in-service distribution as long as your Account Balance is $5,000 or more.
- The in-service distribution is limited to 50% of your account balance up to a maximum of $20,000.
- You are eligible for ONE in-service distribution per plan year (January 1 through December 31).
- In-service distributions CANNOT be rolled over to a qualified plan.
- In-service distributions are subject to Federal and State taxes.
- If you take an in-service distribution and you are younger than 59½, you will be subject to a 10% early withdrawal tax penalty, in addition to the Federal and State taxes.
Applying for an In-Service Distribution
To receive an in-service distribution, you must apply in writing and complete an In-Service Distribution Application. You can find the application form on the Forms page or you can contact the Fund Office. On the Forms page you can also download a CLAF Application Checklist, which will help you include all of the documents required by the Fund Office to process your Application.
Forms of Payment
The amount of your benefit will be based on the value of your Participant Account as of the December 31 immediately preceding the date when payment is made. If you are eligible for a Regular Distribution, your account balance can be converted to a monthly annuity, which can be purchased from an insurance company, or you can elect Annual Installments from the Annuity Fund.
The normal form of a monthly payment under the Plan is a 50% Joint and Survivor Benefit (if you are married) or a Lifetime Benefit (if you are not married). Other benefit payment options are available under the Plan; see the Annuity Fund SPD for details.
If you are married, your spouse is automatically your beneficiary for the Pre-Retirement Surviving Spouse Benefit, unless you both reject this option in writing or a Qualified Domestic Relations Order (QDRO) is in effect.
Your spouse will receive a monthly annuity for life, or if elected, a lump sum distribution of your account balance, or if elected, annual installments.
If you are unmarried, be sure to designate a beneficiary! Your beneficiary designation must be in writing and must be received by the Fund Office before you die. The beneficiary form is on the Forms page.
Your designated beneficiary will receive 100% of the value of your account, payable as a lump sum payment, as installment payments (not longer than 15 years), or as a Life Annuity purchased from an insurance company.
Different methods of distribution can result in different tax consequences. We encourage you to consult with a qualified tax advisor or similar professional before making a decision about the timing and/or method of distribution and whether you will roll over all or a portion of your distribution to an IRA or other tax-qualified plan.