Issue. years of service to you. In This. Summer 2010, Issue 29. Celebrating 75 Years of Service to You 1

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1 For Your Benefit Summer 2010, Issue 29 A Publication of the Laborers and Retirement Board Employees Annuity and Benefit Fund of Chicago Celebrating years of service to you Issue In This Celebrating 75 Years of Service to You 1 Pension Reform Legislation - Applies to Future Participants 2 In Frequently Asked Questions 3 Power of Attorney 3 Retirement Checklist 4 In Case of Divorce 5 Keeping Active After Retirement 5 Board of s 6 Important Phone Numbers and Websites 6 In 2010, the Laborers Annuity & Benefit Fund (LABF) celebrates its diamond anniversary of 75 years of serving its members. LABF was established on July 1, 1935 to serve those employed by the City of Chicago classified as labor services, certain Board of Education employees, and employees of the City retirement boards. LABF remains dedicated to delivering superior service and benefits to our members. LABF annuity benefits have dramatically improved over time. When first established in 1935, the maximum salary for all Fund purposes was $3,000 per year. Maximum annuities were $150 per month for retirees and $125 per month for widows. The average Employee Annuity was $42.88 per month. The average Widow s Annuity was $11.13 per month. We are proud of our past accomplishments and optimistic about the future. The Fund s founders could never have foreseen the technological advances, such as systems automation and imaging, employed by today s LABF. They would be pleased to know that LABF is a financially sound and secure organization, even in the most challenging of economic times. The future will certainly present many new challenges. However, our commitment to our participants will always endure and remain the foundation for all our efforts. We acknowledge and honor the stewardship of all the past and present members of the LABF Board of s. Their prudent guidance has made the Laborers Annuity and Benefit Fund the strong organization that it is today. For Your Benefit 1

2 Pension Reform Legislation Applies to Future Participants On April 14, 2010, Governor Quinn signed Senate Bill 1946 into law. The new legislation creates a Second Tier of pension benefits applicable to public employees hired on or after January 1, The law does not change benefits for current and retired employees. Some of the provisions of the Second Tier include the following: An employee is eligible for a benefit at age 67 with at least ten years of service. An employee is eligible for a reduced benefit at age 62 with at least ten years of service. The benefit is reduced by ½ percent for each month that the employee is under age 67. The final average salary used to calculate a pension benefit is limited to $106,800. This limit is automatically increased annually by 3% or by ½ the annual increase in the Consumer Price Index (CPI-u), whichever is lower. The final average salary is based on the highest eight consecutive years of service within the last ten years of service. The annuitant s annual cost-ofliving adjustment is either 3% or ½ the annual increase in the CPIu, whichever is lower, and is only applied to the original annuity amount. The Fund continues to follow any future amendments that may affect the implementation of the Second Tier. The complete text of the law, Public Act , is available at In 1935 Fun Facts Gas cost an average of 10 cents a gallon..10 The average cost of a new house was $3,450. A new car would set you back about $625. The Chicago Cubs won the National League pennant. Babe Ruth hit the 714 th and final home run of his career. The Monopoly board game was released by the Parker Brothers. The Hoover Dam was completed it took five years and 21,000 men. Shirley Temple was the #1 box office draw. Amelia Earhart flew solo across the Pacific Ocean. Elvis Presley, Woody Allen and the Dalai Lama were born. The 8 th Annual Academy Awards awarded Oscars to: Mutiny on the Bounty for best picture, Victor McLaglen as best actor for the role of Gypo Nolan in The Informer, Bette Davis won as best actress for the role of Joyce Heath in Dangerous. $625 2

3 Frequently Asked Questions Q. When can I pick up my next regular pension or disability check? A. Regular monthly checks on hold at the Fund office can be picked up on the last business day of each month. Q. How can I start (or change) direct deposit of my monthly annuity check? A. For your convenience, there is an Electronic Deposit Authorization Form on the back of your monthly Earnings Statement. Complete the information, sign and date the Required Signature line, and return it to the Fund, along with a personalized voided check or savings deposit slip for the new account. Q. How can I change the federal tax withholding on my pension? A. Your monthly Earnings Statement allows you to change your Federal Tax Withholding. Complete the section titled Federal Tax Election Form on the front of your monthly Earnings Statement, sign and date the Required Signature line, and return it to the Fund. Q. I plan to retire soon. How can I find out what my benefits would be? A. If you have a date in mind, call the Fund office at (312) , and request an estimate of your monthly annuity. Q. What benefits are available if I am injured on the job? A. If you are injured while on the job and an injury report has been filed, you may be eligible to apply for Duty Disability benefits. Call the Fund office at (312) to request an application for disability benefits. Q. What benefits are available if I am off work due to a non work-related injury or illness? A. You may be eligible to apply for Ordinary Disability benefits if you are on an approved Leave of Absence and are unable to work for medical reasons. Call the Fund office at (312) to request an application for disability benefits. Power Of Attorney Are you incapacitated or disabled, and would like to grant someone the power to talk to the Fund on your behalf about your records? If so, you may complete a durable financial Power of Attorney form and submit it to the Fund office to place in your file. A durable financial Power of Attorney (POA) allows you to name one or more persons to handle your financial affairs if you become incapacitated or disabled. The person(s) you designate as your attorney in fact becomes your Agent and you are the Principal. The principal can be physically limited, but must be mentally competent in order to legally sign a POA form. A durable POA remains in effect even if the principal later becomes mentally incompetent. You may also specify that the POA becomes effective when the principal becomes incompetent. You may grant power to an agent to have limited or complete power to act on your behalf without giving up the power to make personal decisions for yourself. Even with this document you can still handle your own financial affairs for as long as you choose. In order to execute a durable POA to be filed with the Fund, the POA should specify property and finances and it must state that your agent has power to handle pensions, annuities or retirement transactions. The POA must be signed by both the agent and the principal and witnessed by a notary. Your decision to use this document is very important and you should think carefully about what financial decisions you want your agent to make for you. Consult an attorney or other qualified person if you have questions. You may visit to obtain more information regarding the Illinois Power of Attorney Act or to download forms. You may also contact the Fund office at (312) to obtain a POA form. For Your Benefit 3

4 Retirement Checklist At or about age 50 Find out when you will be eligible for a retirement annuity. Refer to your Summary Plan Description or call the Fund office at (312) to 12 months prior to your retirement Request an estimate of your benefits. This estimate will include: A calculation of your retirement annuity and years of pension service credit. The option to repay a refund and/or to pay for any service time in which deductions were not withheld from you paycheck (if any). An account receivable (AR) must be paid prior to or at resignation. Payments for unpaid service (US) or refund repayment (RR) must be made prior to resignation. In some instances, payment may be made up to 90 days after retirement. A checklist of required documents will also be included. 3 to 6 months prior to retirement Review possible retirement dates. Review the annuitant health insurance benefits. If you are retiring from the City of Chicago, contact the Benefits Management Office (BMO) to verify current rates since rates are based on service determined by the BMO. You may contact the BMO at (312) , and then press 2 for the eligibility department. Make sure you have all required documents to present to the Fund office at your retirement appointment. Certified copies are required. Call the Fund office at (312) with any questions prior to resignation. Upon resignation Submit resignation to your department. Upon receipt of your resignation and acceptance letter from your department, contact the Fund office at (312) to schedule a retirement appointment. If you are applying for a combined annuity with service from another Illinois pension fund(s) under the Reciprocal Act, contact the other fund(s) regarding your retirement. Benefits are payable the 1 st day of the month following resignation. We suggest resigning the last day of the month for the following reasons: 1. If you work until the end of the month, resign on the last day of the month, you are entitled to an annuity on the 1 st day of the following month, thus there are no unpaid days. However, if you resign prior to the last working day of the month, you will not be entitled to an annuity until the 1 st day of the following month. In this case the Fund will not pay from the resignation date to the end of the month. 2. If you enroll in the retiree insurance plan and resign sometime between the 1 st and the 15 th of the month, you will be charged for a whole month of health insurance for the month in which you resigned. If you enroll in the retiree insurance plan and resign sometime on or after the 16 th of the month but before the last working day of the month, you will be charged for a ½ month of health insurance for the month in which you resigned. Please note that it may take at least 2 months from retirement to receive your first annuity check, and may take up to 3 months if retiring under a reciprocal system. Remember to plan ahead in consideration of this transition period. 4

5 In Case of Divorce QILDRO, pronounced kwil-dro, is a Qualified Illinois Domestic Relation Order. This Order provides for a division of retirement benefits according to the Marital Settlement Agreement between our member and the alternate payee. Illinois pension funds, such as LABF, are mandated to recognize and implement a valid QILDRO. When a pension becomes payable, a QILDRO directs the Fund to pay a certain portion to a former spouse, child, or other dependent. The Fund will assist you and your legal counsel through the QILDRO process. We can provide you and your counsel with certain information necessary to complete the required forms. While the Fund cannot advise you legally, the Fund can provide you with an understanding of the QILDRO process and the Fund s involvement in that process. Please contact the Fund at (312) or visit our website at if you have any questions regarding the QILDRO process or if you are going through a divorce or legal separation. Keeping Active After Retirement You did it! You retired! Enjoy the things you always wanted to do but didn t have time to do. Take a stroll around your neighborhood. Meet old friends. Explore this beautiful city of ours. Chicago offers so many diverse activities for your leisure! Pick up a new hobby with classes in photography, drawing techniques, sewing, or even dancing lessons! You ll discover and develop new talents. Pick up a quarterly copy of the Life Enrichment Programs brochure at City Hall or at your local Public Library. Contact Renaissance Court - Programs for Chicagoans 55 and over located at 77 E Randolph Street, Chicago, (312) They provide informational brochures on diverse activities and social events. On the web, visit sites such as and to find more information on a variety of activities offered throughout the Chicago land area. There are many events that are at little or no cost. Make the most of your retirement by staying active, enjoying yourself and ensuring a healthy mind, body and spirit! For Your Benefit 5

6 Board of s President Carmen Iacullo Retired Member Secretary Charles LoVerde III Union-Appointed Member Custodian and Treasurer Stephanie Neely City Treasurer Ex-Officio Member Gene Saffold City Chief Financial Officer Appointed Member Steven Lux City Comptroller Ex-Officio Member Kenneth Cannata Elected Member Nicole Hayes Elected Member Officers Executive Director James Capasso, Jr. Comptroller Aileen M. Pecora Important Phone Numbers and Websites Benefits Management Office (Health Insurance) (312) Blue Cross Blue Shield (Medical Claims) (800) Committee on Finance (Workers Compensation) (312) Deferred Compensation (Nationwide Retirement Solutions) (312) Laborers Annuity and Benefit Fund (312) Mayor s Office of Inquiry and Information (24 hours) Social Security Administration (800) Medicare Part D (800) Caremark (Prescription Drug Program) (866) Prudential (Active Employee Life Insurance) (800) Cook County General Phone number (312) To request documents on file in Cook County: Birth Certificates-Cook County Clerk s Office* (312) Death Certificates-Cook County Clerk s Office* (312) Marriage Certificates-Cook County Clerk s Office* (312) Divorce Decrees-Cook County (312) * Birth and death certificates may also be obtained, for an additional fee, at most local currency exchanges. Death certificates for deaths within the past six months in the City of Chicago may be obtained from the Chicago Board of Health at (312) Birth certificates for children under three months old and born in Chicago may be obtained from the Chicago Board of Health at (312) For recent deaths and births in the suburban area, contact your local government office. Laborers and Retirement Board Employees Annuity and Benefit Fund of Chicago Presorted First Class U.S. Postage PAID Chicago, IL Permit # North LaSalle St Ste 748 Chicago IL