Frequently Asked Questions

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Health & Welfare

Employees working in covered employment whose employers contribute to the Laborers A.G.C. Trust of Montana are eligible for benefits under either the Construction Plan or the Service & Industrial Plan, depending on their classification.

You must work enough covered hours to meet the Hour Bank eligibility requirements:

  • Construction Plan: Initial eligibility requires 200 hours; ongoing eligibility requires 120 hours per month.
  • Service & Industrial Plan: Initial eligibility requires 200 hours; ongoing eligibility requires 130 hours per month.

Coverage begins on the first day of the second calendar month after you accumulate enough hours:

  • Example: If you work 200 hours by April 30, coverage begins on June 1 (with May as a lag month for processing hours).
  • Construction Plan: Hours worked beyond 120 per month are stored in your Hour Bank (up to 800 hours).
  • Service & Industry Plan: Hours beyond 130 per month are banked, with a maximum accrual of 600 hours.

If your Hour Bank falls below the required monthly deduction, your coverage will end unless you:

  • Self-pay through COBRA, or
  • Work additional hours to regain eligibility.

Coverage under the Active Plans ends when:

  • Your Hour Bank falls below the minimum required hours.
  • Your employer stops contributing on your behalf.
  • You switch to a Retiree Plan, if eligible.

Eligible dependents include:

  • Spouse (legally married).
  • Children up to age 26 (including biological, adopted, stepchildren, or those under a Qualified Medical Child Support Order (QMCSO)).
  • Disabled children over 26, if covered before aging out.
You must submit an enrollment form and required documents (e.g., marriage certificate or birth certificate) to the Trust Administrative Office within 31 days of the qualifying event.

You must meet the following criteria:

  • Worked in covered employment and earned at least 12 months of eligibility under the Active Plan in the last 48 months before retirement.
  • Receiving a pension from the Laborers A.G.C. Pension Trust of Montana or another recognized plan.
  • Meet the age or disability requirements:
    • Age 51+ and receiving a normal, early, or late retirement benefit.
    • Age 40+ if receiving a disability pension.

You must complete a Retiree Plan Enrollment Form and submit it to the Trust Administrative Office at the time of retirement.

If you return to covered employment, your retiree coverage will terminate, and you must transition back to an Active Plan.

Once you or your dependent become eligible for Medicare, you must enroll in Medicare Parts A & B.

Key Details:

  • Enrollment Required: Retirees must complete an application to enroll in the Medicare Advantage Plan. There is no option under the Trust’s self-funded plan for Medicare eligible retirees.
  • Premium Payments:
    • Retirees are billed directly by Blue Cross Blue Shield of Montana for the full premium.
    • The Trust will reimburse retirees for the currently scheduled subsidy amount.
  • Medicare Part B Requirement: Retirees must still pay for their Medicare Part B coverage separately.

This plan serves as a fully insured option for retirees eligible for Medicare?.

You will not be able to enroll in Medicare Advantage without enrolling into Medicare Parts A & B. Failure to enroll in Medicare may result in higher out-of-pocket costs. The Medicare Advantage plan will confirm enrollment in Medicare prior to enrolling you in the plan and paying claims.

Yes, dependent coverage continues:

  • Spouses remain covered until age 65 or Medicare eligibility (whichever comes first).
  • Children remain covered as long as they meet dependent eligibility requirements.

Yes, you may continue coverage through COBRA for up to:

  • 18 months if you lose coverage due to termination or reduced hours.
  • 36 months for dependents due to death, divorce, or a child aging out.

You must notify the Trust Administrative Office within 60 days of losing coverage and submit the required COBRA election form.

COBRA participants pay the full premium plus a 2% administrative fee.

Pension

Pension related information

You automatically participate in the Laborers A.G.C. Pension Trust of Montana if your employer is required to contribute on your behalf under:

  • A collective bargaining agreement with Local 1686 of the Laborers International Union of North America.
  • A special agreement between your employer and the Trust.

You become a participant once you work at least 435 hours in a Plan Year (April 1 – March 31) for covered employers.

Covered employment includes work for an employer required to contribute to the Plan on your behalf.

Uncovered employment occurs if:

  • You switch to a non-covered position with the same employer.

Vesting means you have a right to a pension benefit when you retire, even if you leave covered employment.

You become vested when you:

  • Earn 5 Years of Service (minimum 435 hours per Plan Year), or
  • Qualify for Normal Retirement (age 60 or 65, depending on start date, and fifth anniversary of participation date).

If you are not vested when you leave, you forfeit your accrued benefits unless you return and meet the vesting requirement before a permanent Break in Service.

Your pension benefit is based on:

  1. Hours worked each Plan Year (minimum 435 hours required for credit).
  2. Employer contributions made on your behalf.
  3. Benefit formulas, which differ based on pre-2017 vs. post-2017 service:
    • Before April 1, 2017: Benefits were calculated under a Traditional Benefit Formula (fixed dollar amount based on employer contributions).
    • After April 1, 2017: Benefits follow a Sustainable Income Benefit formula, where your pension adjusts based on the Plan’s investment returns.
  • The value of your benefit adjusts annually based on the Plan’s investment performance.
  • Each April 1, benefits increase when investment returns exceed 5% but decrease if returns are below 5%.
  • A Stabilization Reserve helps avoid decreases in benefits being paid when returns are low.

 

Retirement Type

Age Requirement

Service Requirement

Normal Retirement

Age 60 (if first covered hour was before April 1, 2013) or 65 (if first covered hour was on or after April 1, 2013)

Must be vested

Early Retirement

Age 51-55 (depending on start date)

Must be vested and meet service rules (depending on start date)

Disability Retirement

Age 40+

10+ Years of Service and proof of total and permanent disability

 

Note: If you retire early, your benefit will be reduced due to the longer expected payout period.

You can choose from different pension payment options:

  • Single Life Annuity – Lifetime payments for you only (no survivor benefits).
  • 10-Year or 15-Year Certain & Life Annuity – Payments for life, but if you die early, benefits continue to your beneficiary for 10 or 15 years from your original retirement date.
  • 50%, 75%, or 100% Spouse Option – A portion of your pension continues to your spouse after your death.

Note: If you chose an option other than the Single Life Annuity, your benefit will be reduced due to the guaranteed payments or survivor coverage.

Your pension may be suspended if you return to work in prohibited employment:

  • Before Normal Retirement Age (60 or 65) – Your pension stops if you work any hours in a covered industry.
  • After Normal Retirement Age – Your pension stops if you work more than 40 hours per calendar month in a related job.
  • After Age 70 – You can work without any benefit suspension.

If you plan to return to work, notify the Trust Administrative Office to avoid delays in payments. Before you return to work, you may also request the Trust review your employment to determine whether your benefit will be suspended.

If you are vested and married, your surviving spouse will receive a lifetime Pre-retirement Survivor Annuity, which is based on what they would have received under the 50% Spouse Option.

If the benefit value is $5,000 or less, the spouse may choose a lump sum payout instead.

If you selected a spouse or beneficiary option, payments would continue to them based on the percentage you elected.

If you selected a 10-Year or 15-Year Certain & Life Annuity, payments would continue to your beneficiary for the remainder of the certain period.

If you chose the Single Life Annuity, no further payments are made after your death.

Yes, Reciprocal Agreements exist with related pension plans. If you worked under another Laborers pension plan, your service may count toward vesting and eligibility.

Yes. Your benefit may be split or assigned to a former spouse under a Qualified Domestic Relations Order (QDRO).

The Plan is insured by the Pension Benefit Guaranty Corporation (PBGC), a federal agency that provides financial assistance to multiemployer pension plans. However, the PBGC only covers a portion of benefits if the Plan becomes insolvent. The Plan is not currently expected to go insolvent. Notification to all participants is required if this changes.

  1. Contact the Administrative Office to request an application.
  2. Provide proof of age (birth certificate, passport, etc.).
  3. Choose your payment option.
  4. Your benefits will begin the first of the month after approval.