Pensions, 401(k)s & Union Benefit Funds

Construction workers often change employers many times. Retirement benefits can follow you across jobs, but only if you keep records and understand the rules for earning and keeping them.

• All Workers
• Union Members
• Apprentices

Common types

• 401(k) or similar defined contribution plan: you (and often your employer) put money in an account, invested by you. The balance depends on contributions and investment results.
• Traditional pension (defined benefit): pays a set monthly amount based on a formula, such as years of service and wages or hours.
• Union multiemployer pension funds: many employers contribute hourly into a joint fund, so your credit follows you from one union contractor to another in the fund's area.
• Annuity plans and IRAs.

Key terms

• Vesting: when you earn the right to keep employer contributions. Your own contributions are always yours. Employer 401(k) matches may vest over a few years. Pensions often require five years of service or similar.
• Hours credit: in union funds, you earn a year of service by working enough hours (such as 1,000 or more) in a year. Keep your pay stubs.
• Break in service: too few hours in some years can lose credit under some plans.
• Match: employer money that matches part of your contribution. Take it if offered. It is free money.

Protect your benefits

• Get the Summary Plan Description for each plan and read how benefits are earned
• Check your statements each year and make sure hours and contributions are correct. Report errors in writing
• Keep pay stubs and records of union hours
• Update your address with each plan so you receive notices
• When you leave a job, you can often roll over a 401(k) to an IRA or a new plan. Move it directly between plans to avoid taxes and penalties, and avoid cashing out early; withdrawals before about age 59 and a half are usually taxed and penalized
• Know that the Pension Benefit Guaranty Corporation (PBGC) insures many private defined benefit pensions up to limits
• Ask the fund office or plan administrator about early retirement, disability pension and spouse benefits

If employers don't contribute

Employers in union agreements must pay benefit contributions. If you think they are not paying, tell your union or fund. You can also contact the U.S. Department of Labor Employee Benefits Security Administration (1-866-444-3272). See Where to Get Help.

Last updated: October 8, 2026