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Retirement Benefits

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Notice To All Employers
In The Construction Industry

The Employer’s Organisations and the Trade Union, being parties to the Council have concluded their deliberations on the directive by the Insurance Pension Commission (IPEC) to allow the Pension Fund to collect on its behalf with effect from 01 October 2016. Employers are therefore requested to remit pension deductions/ contributions directly to the Pension Fund.

RE: REMITTANCE OF PENSION DEDUCTIONS /CONTRIBUTIONS DIRECT TO THE CONSTRUCTION INDUSTRY PENSION FUND

We will update a pensioner’s record with any changes to personal details once every month before effecting the monthly payroll.

We will send to each pensioner a certificate of existence, by 31 March each year for subsequent completion and return to the Fund. Failure to return the completed certificate will result in pension payment being suspended.

We will acknowledge receipt of notice of death of a pensioner and start to process payment of dependents’ benefits, provided all details and documentation are at hand, within one month of receipt of the notice.

Retirement Benefits

Retirement benefits are paid to members being guaranteed for sixty months or life, that is if the member dies before the expiration of the sixty months from retirement the benefits are extended to the surviving dependants of the member or at the death of the member after retirement. If the member had elected a joint and survivorship option the pension payable to the nominated dependant will commence immediately. The following are the three scenarios a member can utilise on retirement:

  • Normal retirement age is 60 for both men and women. On normal retirement, the pension payable is equal to the amount of pension purchased by the member’s contributions and the contributions made in respect of the member by the Employer, according to factors set out in the Agreement, and increased by bonuses declared from time to time.

  • Early retirement is permitted on or after age 55, with the consent of the employer and if the member has been employed for at least 15 years. The amount of pension payable is the amount calculated as for normal retirement reduced by a factor depending on the age at retirement

  • Late retirement is permitted with the agreement of the Employer, up to age 65 and contributions continue. The pension payable is equal to the pension purchased at normal retirement age, increased by appropriate factors as set out in the Agreement, PLUS the pension purchased by contributions made in respect of the member after normal retirement age increased by special factors which apply to these contributions.

The Construction Industry Pension Fund is a successor to the Building Industry Pension Fund which was established on the 1st of July 1969.

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