Pension Plan for Contractors and Affiliates
About the Plan
San Diego AGC sponsors an IRS-approved master Employee Pension Plan which provides significant benefits to employees of contractors and affiliate firms. The master Plan, which has also been approved by the U.S. Department of Labor for prevailing wage purposes, maximizes flexibility for participating employers. The Plan benefits are exceptionally worthwhile for prevailing wage contractors.
For the employer, the Plan establishes a means to reduce payroll costs substantially by lowering the taxes and workers' compensation insurance premiums paid by the employer on employee wages. Each employer may design its own plan to best suit its own objectives.
For the employee, the AGC Plan provides financial security by establishing a retirement fund to meet future needs. Many employees do not or cannot provide this security themselves. Participation in the AGC Plan is an attractive benefit for employees and their dependents.
The Plan allows a participating contractor to contribute on all jobs, even those outside San Diego. Employees may be able to maintain eligibility even though they work with different participating employers.
Contractors and affiliates are eligible to join the Plan if they are members of the San Diego Chapter of the Associated General Contractors. Members of California AGC are also eligible to participate in the Plan through an arrangement between the Cal AGC and San Diego AGC chapters. Both administrative and hourly workers can participate in the AGC Plan.
- About the Plan
- AGC Employee Pension Plan Investment Funds
- Most Commonly Asked Questions
- AGC Employee Medical Plan Trustees
- How to Enroll
AGC Employee Pension Plan Investment Funds
All assets are actively invested by qualified investment managers. Two (or more) managers are retained to ensure a balanced investment approach focusing on consistency of growth performance. The Plan additionally retains an independent investment consultant to monitor and verify the manager's performance.
Most Commonly Asked Questions
- Is the Plan approved by the DOL and IRS?
Yes. The Plan is approved by the Department of Labor and the Internal Revenue Service. It is a bona fide plan for federal Davis-Bacon and State of California prevailing-wage work.
- Is the Plan portable?
Yes. The AGC Plan allows participating contractors to contribute on all jobs, even those outside San Diego. Employees may be able to maintain eligibility even though they work with different participating employers.
- Which employers are eligible to participate in the Plan?
The Plan is available to any San Diego AGC contractor or Affiliate member. Members of California AGC may also participate in the Plan through an arrangement between the Cal AGC and San Diego AGC chapters.
- Which employees can be covered under the Plan?
Participating employers may cover their prevailing-wage construction craftsmen, non-prevailing wage construction craftsmen, other hourly paid employees, and salaried employees. Employees who are covered by a collective bargaining agreement where retirement benefits were the subject of good-faith bargaining between employee representatives and the participating employer are excluded from participation.
- Do all employees have to be enrolled in the Plan?
No. For example, plan participation can be limited to non-highly compensated employees only. Alternatively, employers may cover only prevailing-wage work if they so desire. They may also choose to exclude employees under age 21 from the Plan.
- How many people are required to enroll?
There is no minimum requirement.
- When do employees become eligible to participate in the Plan?
Each employer may choose between options ranging from immediate eligibility to eligibility after two years of service.
- What do participating employers contribute to the Plan?
Employers have the option of contributing 5 percent of pay, up to a maximum of 25 percent or a fixed dollar amount per hour of service in eligible employment. The dollar amount may be a flat dollar amount for all eligible employees or an amount determined by work site and labor class.
- How much do employees contribute?
Nothing. All contributions are employer paid.
- When do employees start to receive retirement benefits?
Employees may elect to retire and receive their benefits at their normal or postponed retirement dates, with several normal-retirement options available. If postponed retirement is selected, the employer must continue to make contributions until actual retirement. Refer to the Plan documents for complete details.
- When do employees become vested in the Plan?
Five different vesting schedules are available, subject to IRS approval of your Plan. They are immediate 100% vesting, 4-year vesting, 5-year vesting, 6-year vesting, and 7-year vesting.
- What about death and disability benefits?
An employee's beneficiary is paid 100 percent of the participant's account value on death or disability. The designation of the beneficiary is subject to spousal consent if the employee is married.
- When are benefits paid after employees leave a company?
Employment termination benefits are paid on the following basis: 1) After a one-year break in service if the aggregate value of the employee's account is $3,500 or less, such value will be cashed out on the next Plan anniversary; and 2) if the value exceeds $3,500 such value may be cashed out on any Plan anniversary, after a one-year break in service, subject to spousal consent.
AGC Employee Pension Plan Trustees
The San Diego AGC chapter board of directors appoints the trustees. The five individuals who serve as the AGC Employee Pension Plan trustees are prominent contractors and businessmen. They are long-time, active members of San Diego AGC who have volunteered countless hours creating and implementing the Plan and overseeing its ongoing success.
How to enroll
| Nigel Cary, President
Cox Construction Co.
| Harold Kvaas, President
Kvaas Management Co., Inc.
| Doug Barnhart, President |
| Ray Carpenter, President
R.E. Staite Engineering
Ken Riha, President
Riha Construction Co.
Contractors and affiliates are eligible to join the Plan if they are a member of the San Diego chapter of the Associated General Contractors. Members of California AGC are eligible to participate in the Plan through an arrangement between the Cal AGC and San Diego AGC chapters.
For information, please contact
AGC Director of Marketing & Education
(858) 558-7444, ext. 108
Fax: (858) 558-8444