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ABORERI L L I N O I SL

Winter 2013-2014

A Publication of theCentral Laborers’ Pension, Welfare & Annuity Funds

ILLaborer2013fall.indd 1 2/10/14 1:18 PM


2 Illinois Laborer Winter 2013-2014

This newsletter contains information regarding the Central Laborers’ Pension, Welfare and Annuity Funds. The actual Funds’ provisions may be found in the Funds’ Plan documents which include the actual Plans and Trust Agreements. In the event of a conflict between the wording in this newsletter and the Plan documents that govern the Plans, the Plan documents shall govern.

Please keep this newsletter with your Summary Plan Description (SPD) booklet and other benefit materials for future reference. The Trustees reserve the right to amend, modify, or

terminate the Plans at any time.

Send address changes and newsletter questions, comments and ideas to:

Central Laborers’ Pension, Welfare and Annuity FundsP.O. Box 1267

Jacksonville, IL 62651-1267or call: (800) 252-6571

www.central-laborers.com

Contents

Illinois Laborer is published by the Central Laborers’ Pension, Welfare and Annuity Funds.

Trustees of the three funds are, listed alphabetically:

Daniel Aussem

Holly Bailey

Jim Bruner

Russell Davenport

Chris Davis

Kenton Day

Ed Doyle

Tim Garvey

Ken Kilian

Joe Lamb

Bob McDonald

Doug Megginson

Steve Morthole

John Peisker

John Penn

Glyn Ramage

Allan Reyhan, Jr.

Joe Riley

Brad Schaive

Rick Schewe

Charles Shempf

Patrick Sheppard

Kevin Starr

Clint B. Taylor

Steve Trokey

Dan Koeppel Executive Director

Viewpoint Page 3

Your Money Pages 4-5

Pension News Pages 6-7

Meet One Of Your Trustees Page 8 Local News Page 9

Health and Welfare Pages 10-11

On The Cover: The Stan Musial Veterans’ Memorial Bridge spanning the Mississippi River connecting Illinois and Missouri. Construction has employed many Laborers from Missouri and Illinois.


VIEWPOINT

Illinois Laborer Winter 2013-2014 3

John F. Penn, Chairman,Central Laborers’ Pension and Annuity Funds

Dear Fellow Laborers,

Your pension fund, Central Laborers’ Pension Fund, has been under-going changes in the last few years that affect you and your fellow Fund participants. To understand why these changes are necessary, we must look to the Pension Protection Act of 2006, signed into law by former President George W. Bush. This Act, and the Great Recession which followed, put new burdens and restrictions on the Fund. Though these restrictions are intended to make the Fund more secure and sustainable for future retired Laborers, the changes involved now are challenging for all involved.

The Trustees of the Central Laborers’ Pension Fund do not take lightly their responsibility of evaluat-ing and implementing changes to the Fund. They care about the members who are affected by these changes and in some cases are part of the generation that is directly affected. But the Plan is legally required to conform to the restrictions of the Pension Protection Act, and the Trustees are tasked with getting the Plan where it needs to be. If it were not for the Trustees making these changes, the govern-ment would have to step in and enforce whatever changes it would deem necessary to get the Plan in line with the Pension Protection Act.

Faced with an economy that has not rebounded as hoped and a significant decrease in construction work

decision that will best serve all current and future retirees — not just a single participant or group of participants, but all 17,000 Central Laborers’ Pension Fund participants from various parts of Southern, Central and Northern Illinois.

This means balancing the needs of retired members, members near retirement, members in the middle of their working life and the new members just out of apprenticeship who need the Fund to be there for them when they retire, too. So the choice might not be between keeping the retirement rules the same and making these changes, but making these changes now or not having a Pension Fund for the next generation of retired Laborers.

The bottom line is, as Labor and Management leaders, the Trustees of Central Laborers’ Pension Fund know you have worked hard and deserve a return on the investment of your work over the years. But that must be balanced with keeping the Fund operating and healthy for the next generation, too. It’s the right thing to do and the government requires it. That is why changes were made.

As always, thank you for your years of service.


must make theand work hours, Trustees had to make changes necessary to preserve the Fund. The Trustees


Your MoneyWhat kind of retirement do you want to have?Many people know they should be planning for retirement. But what that means exactly depends on what kind of lifestyle you hope to have in retirement.

As a Central Laborers’ Pension Fund participant, you can look forward to a pension after you stop work-ing. For many people, that pension might be sufficient to meet their planned financial needs.

But consider this: the financial needs of a retiree who stays in the house they paid off years ago and en-tertains visits from the grandkids varies greatly from the financial needs of a retiree who hopes to move to a warmer climate and take on another mortgage, or one who wants to use their retirement to travel the country or even the world.

Being realistic now about the kind of life you want to live in retirement and what potential costs you see in your future will make you better prepared for those associated costs. Will you have to fly across the country to visit family several times a year, or do your loved ones live down the street? Have you always dreamed of having a lake getaway and a boat for fishing? Is your mortgage paid off, or will you be making house payments or paying rent after you stop working?

And unfortunately, everyone is at risk of having a major unforeseen expense. A May 2011 report from the National Bureau of Economic Research found that about half of Americans could not come up with $2,000 cash if they had 30 days’ notice. We don’t like to think of our loved ones, or ourselves, being in this position – having an expensive home or car repair; having a loved one in need of major medical care; or needing cash to make it through the aftermath of a natural disaster. But having all your eggs in one basket and living pension check to pension check can be avoided by saving for retirement in your working years.

Some questions you can ask yourself to get a picture of your retirement reality: What will my housing costs be? Is my mortgage paid off? Will I want to sell and move to an other place? Do I plan to rent? Do I want to go south for the winter every year? Don’t forget about home repairs and property taxes.

Will I want or need a new car? Am I prepared to make car payments or can I buy a vehicle with cash?

What hobbies do I want to pursue? Will there be any new costs?

Will I travel more? What costs are associated with travel?

Will my food and entertainment costs stay the same? Do I want the ability to go to a new movie every Friday and go out to dinner regularly?

Will my loved ones require financial assistance? Do I want to help kids and grandkids pay for college?



Depending on the costs you anticipate in retirement, your pension check might or might not be sufficient. And regardless of how frugally you plan to live, you should have an emergency fund for unanticipated expenses. But beyond that, consider which of these savings plans might be right for you:

A regular savings account at your bank: pays low interest but you can access the money at any time.

A CD (certificate of deposit): held through your bank or credit union. CDs are purchased for a fixed time period and pay a higher interest rate than a regular savings account, but there is a substantial penalty for withdrawing before the CD is “mature,” that is, before the original time period is complete.

A Roth IRA (Individual Retirement Account): funded by post-tax income and not taxed upon withdrawal. This account has greater potential for interest paid but cannot be accessed without penalty until age 59 ½.

Defined Benefit Plan (DB Plan): A DB Plan pays a monthly benefit to its vested participants when the participant retires according to the plan’s eligibility rules. The Central Laborers’ Pension Fund (CLPF), a DB Plan, provides an annual pension statement to Participants each year which shows whether or not the Participant is vested, includes the accrued benefit amount for each year worked in Covered Employment, and the pension amount payable to vested Participants if initially retiring after attaining Normal Retirement Age (Age 65). The annual statement should assist CLPF Participants in planning their retirement and determining (during their working years) what other investment vehicles may be necessary to support their anticipated retirement lifestyle.

Defined Contribution Plan (DC Plan): A DC Plan is an investment that is intended to supplement one’s income in retirement, such as an annuity or 401(k). The Central Laborers’ Annuity Fund (CLAF), a DC Plan, provides statements to its Participants twice per year. Perhaps you are not a Participant of CLAF but a Participant of another LIUNA Annuity Fund that provides statements once a year or at other intervals. Regardless, be sure to keep a good record of the DC Plan you participate in by reviewing the statements for employer contributions, investment yield and expenses. Once a Participant is eligible for a distribution, it is important to know the DC Plan’s rules and/or tax implications be making the decision to take a distribution. By law, DC Plans are required to withhold 20% federal income taxes on cash distributions; if you are under age 59½, you may be subject to an additional 10% federal excise tax when you file your federal income tax return for the year of distribution. If the distribution is rolled over into another qualified plan, federal tax withholding is generally deferred until a distribution is taken from the other qualified plan. Also, if electing a rollover to another qualified plan, be sure to review that plan’s yield and expense history and whether or not there are any additional fees or penalties applicable.

It is beneficial to consult with a financial planner and/or tax consultant before beginning retirement and/or electing to receive any type of retirement distribution.

Your financial institution should be able to set up an automatic recurring transfer from your main account into any savings accounts you set up. You’re more likely to meet your savings goals if money gets moved auto-matically, without you having to remember or decide to do it every time.


Pension News


What it means to “Retire”As you are considering when to retire and are formulating your plans after retirement, please keep in mind that the Pension Fund is a retirement plan. As such, the Pension Fund is required to provide “retire-ment” benefits to participants who are, in fact, “retired.” Such a retirement is generally called a “bona fide” retirement.

The Pension Fund and the Pension Fund’s plan of benefits are governed by the rules and regulations of the Internal Revenue Service (“IRS”). According to the IRS, the Pension Fund is considered a defined benefit pension plan that is tax-exempt under Section 401(a) of the Internal Revenue Code. In order to maintain its tax-exempt status, the Pension Fund is required to provide for the payment of benefits upon a participant’s retirement. In general, to “retire” means to withdraw from one’s position or occupation or to conclude one’s working or professional career. However, to “retire” has been given a more specific meaning under IRS rules and regulations. For example, according to the IRS, a participant is deemed to “retire” only if all of the following statements are true and correct:

That participant has separated from employment and service from his/her employer;

The participant has stopped performing services for his/her employer and has not simply had a reduction in the number of hours that he/she works for his/her employer;

The participant does not have an arrangement or understanding with his/her employer that he/ she will return to employment with the employer;

The participant is not on a leave of absence from his/her employer; and

The participant has no expectation of continued employment with his/her employer and can confirm that he/she is not available for reemployment with any other contributing employer to the Pension Fund.

Please note that a participant will still be deemed to have separated from employment and to have stopped performing services if the participant works less than forty (40) hours per month as permitted by the Pension Fund’s Disqualifying Employment rules and regulations. Additionally, a participant’s ability to work less than forty (40) hours per month for a contributing employer will not be considered an arrangement or understanding or an expectation of continued employment as described above.

In an effort to comply with IRS rules and regulations and to maintain its tax-exempt status under 401(a) of the Internal Revenue Code, the Pension Fund requires each participant to certify that each of the foregoing statements set forth above is true and correct. Additionally, the Pension Fund may condi-tion receipt of pension benefits upon a participant demonstrating that the participant’s “retirement” was indeed a “bona fide” retirement (i.e., a participant may be required to provide information and records

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demonstrating the participant’s retirement). If the Pension Fund’s review demonstrates that retirement was not “bona fide,” the participant will be notified and the participant’s benefits may be subject to termination.

Accordingly, as you contemplate retirement, please keep in mind that these IRS rules and regulations which must be met in order to “retire.” If you have any questions regarding your retirement, please contact the Fund Office at (800) 252-6571, extension 5.

Please be advised that in response to the recent mailings (one in the form of a booklet dated December 9, 2013, and the other, a two sided one-page document dated December 23, 2013) regarding the Central Laborers’ Pension Fund’s updated Rehabilitation Plan, the Fund Office has received numerous communications from participants. Please understand that pension representatives are working diligently to serve your needs and process appli-cations as quickly as possible.

Your patience is appreciated.

REMINDER As a reminder, please call the Fund Office to schedule an appointment before stop-ping by the Fund Office to ensure proper customer service. While in some instanc-es it may seem convenient to personally meet with a representative and/or deliver documents, without an appointment, it could become an inconvenience for you if the representative with whom you need to speak is unavailable or if the office is closed when you arrive.

The Fund Office’s normal business hours are: 7:30 am – 5 pm (Monday – Thursday) and

7:30 am – noon (Friday).



TrusteesMeet Chris DavisYou work for Central Illinois Builders, an association comprised of union contractors. What is your role there?I am Director of Labor Relations. I sit on various pension and health and welfare funds. I’m a trustee on about seven different funds, including Central Laborers’ Pension, Welfare and Annuity Funds. And I negotiate contracts with the various trade unions to which Central Illinois Builders members are signatory. I also process and adjudicate grievances.

Tell us about yourself personally and how you got to be involved in the construction industry.I was born and raised in Springfield and attended Sacred Heart-Griffin High School, and then Wabash College in Crawfordsville, IN. I spent 5 and a half years on legislative staff at the Capitol and for 3 of those years I staffed the House Labor Com-mittee. Then for 8 and a half years I was the lobbyist for Home Builders Association of Illinois. Due to the downturn in the housing economy I left the Home Builders in December of 2012, and I started with Central Illinois Builders in May 2013, when Scott Larkin resigned in April.

When did you become a Central Laborers’ Trustee?At the beginning of my employment with the Central Illinois Builders Association in May.

How would you say you view your role as a trustee? What do you contribute to the board?The most useful experience I have is that my minor in college was economics. My role and primary respon-sibility is protecting the financial future of the Pension Fund, and the financial security of the annuitants and participants. My economics background helps me to understand economic and financial factors that affect the health of the Fund.

Is there anything that you have learned since becoming a trustee that you’d like the members to know? What has been most revealing to me is how cooperatively the Labor trustees and Management trustees have come together and attempted to find real solutions for the long-term viability of the Fund.

How would you say your role with the Central Illinois Builders Association intersects with your role as a trustee?The first thing is establishing and maintaining relationships with the Laborers’ business managers and devel-oping a sense of trust and understanding. More importantly, I go into contract negotiations understanding the factors and issues that are forces in determining what gets discussed at the negotiating table.

Is there anything else that you want to say to Pension Fund participants?Hang in there. We’re looking for long-term solutions. The Pension Fund is not in the best condition and we’re in red zone status. We’re really looking for long-term solutions that will help the fund remain viable. I have a different perspective because as part of my benefits package with Central Illinois Builders, my re-tirement package is enrollment in Central Laborers’. In addition to being a management trustee I am a Plan Participant, and I really care about the Pension Fund.



Laborers’ Local 165 members are honoring veterans through a new memorial wall and display case in their hall where veterans can show off their service memorabilia.

The idea came about when the Local decided to renovate the meeting room at the hall, and officers wanted to do something to recognize members who are veterans, said Business Manager Tim Schmidgall.

Officers raised the idea of a Veterans’ memorial to members at a Veterans Day dinner in 2011, and members quickly became passionate about the idea, offering lots of ideas for what the memorial should include,

Schmidgall said.

Eventually, the project grew to include a background mural and spotlight, an overlaid plaque listing current members who have served in each military branch, and a cabinet that displays memorabilia that members have lent to the Local specifically for the memorial.

“This has gotten a really big response from veterans,” Schmidgall said. Schmidgall added that the display cabi-net was hand-made by a union cabinet company in Peoria, and the mural was also locally produced.

“I wanted this to be nice and last forever,” he said. Tom Bowers, the Local 165 Retiree Council President, is a Vietnam veteran and lent the Local his Purple Heart and photos from his time in service for display.

“I took it out to the Local so other Veterans could see it,” he said.

He said that through the project and memorial display, he has learned about other members’ service records and shared his own stories. “A lot of them didn’t even know I was in Vietnam, but you get to talking about old war stories and everything else,” he said.

Bowers said he thinks it’s important for younger generations to see the Veterans display, so they can get a feel of what war is really like, instead of a glorified TV version of war.

Retired Laborer Francis Dusch and his wife Debbie are both military veterans and contributed to the memorial. In addition contributing a plank of wood from the USS Wisconsin and a LZRVG Vietnam Veterans Homecom-ing plaque to the display case, they distributed literature and information about Veterans resources at the Veter-ans Day dinner in 2013.

Francis said they contributed the USS Wisconsin plank and LZRGV plaque to help give Vietnam veterans the recognition they didn’t get during the war.

The Midwest Regional Office appreciates and honors all those who have served our country in the military. If you are a Veteran and have not told your Local of your service, please contact your Local Union Hall, so that the Veteran list is up-to-date.

In addition, the Regional Office is offering a trip to Washington, D.C. for members who are Veterans, plus one guest per member, to visit the Korean Memorial this Spring. If you served between 1950 and 1953, whether in Korea or elsewhere, contact your Local to find out about the trip.

Local 165 Honors Veterans



Health andWelfareALERT: no texting or calling while driving beginning Jan. 1Drivers in Illinois are prohibited from handling their cell phone while driving beginning January 1, 2014, thanks to legislation signed by Governor Pat Quinn. Previously, texting while driving was specifically banned in Il-linois, but this law expands the ban to any use of a cell phone that isn’t in hands-free mode, such as dialing or holding the phone up to your ear.

It is especially important to follow this new law while driving in work zones and school zones. As Laborers who have done road work can attest, distracted drivers make their job much more dangerous. And children playing are not always paying attention to the world around them, so it’s up to adults to be responsible and safe in their driving. It’s not just safety on the line for drivers who handle their cell phone while the car is driving. Violating the new law could lead to a $75 fine and if a driver’s cell phone use leads to an accident, they could face up to three years in prison.

There are several adaptations drivers can make so they can talk on the phone while driving, if necessary. Most cell phones have a speakerphone capability so the phone doesn’t have to be held up to the ear. And newer cell phones have Bluetooth technology that allows for a detached earpiece and microphone to be worn, allowing you to carry on a conversation while keeping both hands on the wheel. These headsets are allowed under the new law. Some newer cars even have Bluetooth technology as well, allowing your cell phone to connect to the speaker system in your car and making it possible for you to dial using your own voice, without touching your cell phone!

If you need to talk on the phone while driving, make sure to use a hands-free option. Your cell phone carrier should have equipment, such as Bluetooth headsets, available for purchase so that you can stay safe and remain within bounds of the law. Just make sure to set up your hands free device and dial before you leave the driveway, not once your car is already moving. Your safety, and the safety of other drivers, road workers, children and other pedestrians depend on it.

Source: http://www3.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=2&RecNum=11465

Central Laborers’ Pension Fund - Firearms Concealed Carry SignagePursuant to the Illinois Firearm Concealed Carry Act (the “Act”), the Central Laborers’ Pension Fund’s Trustees have adopted a policy prohibiting posses-sion of firearms and/or other weapons on the Fund’s premises and/or at any meeting of the Board of Trustees or subcommittee thereof regardless of the location of the meeting. A sign, conforming to the requirements of the Act, has been posted at the entrances to the Fund’s offices illustrating that the car-rying of firearms on the premises is not permitted.

While this action does not necessarily reflect all Trustees’ views on the con-cealed carry law, it is motivated by a concern for the safety of Fund Participants, Employees, Trustees and visi-tors to the Fund Office.



CELL PHONE APPS & JOBSITE SAFETYAmerican Red Cross First Aid App - quick access to information videos that could reduce the risk of serious injury and even death.

Decibel 10th - sound meter that precisely measures sound pressure level around you.

iConstructSafe- collection of safety reminder videos that can even benefit the weekend warrior around the house, as well as at the job site.

NIOSH Ladder Safety - uses visual and audio signals to make it easier for workers using extension ladders to check the angle of the ladder.

*NIOSH Pocket Guide to Chemical Hazards – provides concise source of industrial hygiene for workers.

OSHA Heat Safety Tool - calculates the heat index for a job site, displays the risk to workers relevant to cli-mate conditions.

OSHA Safety - full text of OSHA regulations that apply to work sites, current and new regulations, as well provides official interpretations.

*Listed Apps are free with exception of NIOSH pocket guide which is $8.00

For more information regarding safety information, please call the Midwest Region Laborers’ Health & Safety Fund or visit our website at www.midwestregionlaborers.org.

Health Tip:With flu season at its peak, these seven foods may help keep you healthy:

1. Almonds: Antioxidant Vitamin E2. Black-Eyed Peas: Good source of Zinc

3. Carrots: Vitamin A4. Mushrooms: Selenium (helps ward off flu)

5. Tea: Green or Black has powerful antioxidants6. Tomatoes: Vitamin C

7. Yogurt: Probiotics

Source: AARP Bulletin, December 2013



Published by:Central Laborers’ Pension, Welfare and Annuity FundsP.O. Box 1267Jacksonville, IL 62651-1267

Dan Koeppel, Executive Director(800) 252-6571

www.central-laborers.com

Veterans’ Memorial at Laborers’ Local 165 in Peoria, Illinois honors veterans from all wars.


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