HGL Funds Performance Analysis and Portfolio Insights

Together, these funds form
one of the most comprehensive benefit portfolios available to union laborers in
New Jersey. For members approaching retirement, navigating medical coverage, or
seeking to advance their workforce skills, understanding how HGL Funds are
structured and how their respective portfolios perform is essential for
making informed financial and career decisions.

This analysis provides an
authoritative, fact-based overview of each fund’s purpose, structure, benefit
provisions, and portfolio characteristics, drawing directly from official HGL
Funds documentation and regulatory context under the Employee Retirement Income
Security Act (ERISA) and the Taft-Hartley Act.

What Are HGL Funds? Background and
Structure?

HGL Funds is the
collective designation for the Heavy & General Laborers’ Funds of New
Jersey, headquartered at the Joseph P. Madden Building, 700 Raymond Boulevard,
Newark, New Jersey. The funds serve as the benefit administration hub for
members of Laborers’ Local Unions 472 and 172.

Structurally, HGL Funds
operates as a multiemployer trust fund a model commonly referred to as a
Taft-Hartley plan, named for the Labor-Management Relations Act of 1947. Under
this framework, participating employers make contributions to the trust on
behalf of their covered employees through collectively bargained agreements.
Workers are not required or permitted to contribute directly to most of these
funds.

The five HGL Funds operate
as legally separate trusts, though they are jointly administered through a
unified member portal and office structure. This separation ensures that assets
designated for health coverage, retirement income, training, and vacation pay
are managed distinctly in compliance with applicable federal law.

The Five HGL Funds: At a Glance

The following table
summarizes the core characteristics of each fund within the HGL portfolio:

HGL Funds Portfolio: In-Depth Fund-by-Fund
Analysis

1. HGL Welfare Fund – Comprehensive Health Coverage

Established in 1950, the
HGL Welfare Fund is the longest-running component of the HGL portfolio. It
provides eligible participants and their qualifying dependents with health and
welfare benefits, typically covering a broad range of medical and ancillary services.

Coverage areas generally
include:

• Medical Care: In-network access managed through the Meritain Health / Aetna provider network, including hospitalization and specialist visits.
• Prescription Drugs: Managed through Express Scripts, one of the largest pharmacy benefit administrators in the United States.
• Dental Benefits: Access to both a New Jersey-specific dental provider list and a broader national provider network, with published fee schedules and benefit overviews.
• Vision and Optical Care: Coverage for eye exams and corrective lenses through a designated optical provider list.
• Hearing Aid Benefits: Assistance for hearing aid procurement through a listed network of providers.

2. HGL Pension Fund – Defined Benefit Retirement Income

The HGL Pension Fund is a
defined benefit plan that provides participants with a predictable monthly
income upon reaching retirement age. Unlike investment account-based plans, a
defined benefit pension calculates benefits using a formula tied to employer contributions
and credited service not market investment performance.

Core plan provisions
include:

• Normal retirement age is 65
• Benefits are funded exclusively by employer contributions; members do not and cannot contribute directly
• A 2021 Pension Increase was implemented, reflecting a benefit enhancement for eligible participants
• Members may view their estimated pension benefit at age 62 through the member portal
• Annual Funding Notices are published and made available to participants

The following table
contrasts the HGL Pension Fund against a typical 401(k) plan to clarify
structural differences:

Important required forms
for pension benefit applications include the W-4P (updated for 2025), the
W-8-BEN (2021 version for non-U.S. persons), and the NJ State Tax Form. A
Summary Plan Description (2015) and Annual Funding Notice (2022) are available
on the HGL Funds website.

3. HGL Annuity Fund – Individually Tracked Retirement Savings

Established in 1980, the
HGL Annuity Fund maintains an individual account for each participating member.
Unlike the Pension Fund, which pays a formula-based benefit regardless of
account balance, the Annuity Fund accumulates employer contributions in a
participant-specific account that grows based on the investment decisions made
by the Board of Trustees and their professional investment consultants.

The investment framework
is explicitly trustee-directed: the Board and their consultants develop an
investment plan, and investment professionals execute all transactions. The
fund’s stated goal is to pursue safe and profitable investments, though
official documentation makes clear that investment results cannot be
guaranteed.

Members may access their
Annuity Fund account balance at retirement through several distribution
options:

• Lump sum payment (subject to mandatory 20% federal income tax withholding)
• Direct rollover to a Traditional IRA, Roth IRA, or another eligible retirement plan
• Partial rollover, with the remainder paid directly to the member (subject to withholding on the direct payment)
• Monthly annuity for the member’s lifetime, with or without a 50% continuation benefit for a surviving spouse
• Monthly installment payments based on life expectancy tables
• Loan against account balance – subject to plan terms and IRS loan limits
• Deferred distribution up to the required minimum distribution age (currently age 73 under current IRS rules)

4. HGL Vacation Fund – Employer-Funded Paid Leave

The HGL Vacation Fund provides
vacation benefits for all participants working under the Local Unions 472 and
172 Collective Bargaining Agreement for whom contributions are made. The fund
operates on an individual account model:

Each participating employer contributes to the Vacation Fund for every hour worked by each covered employee

Each participant receives an individual account reflecting contributions received from all participating employers

Vacation Fund accounts are administered through the Heavy and General Laborers’ Locals 472 and 172 Welfare Fund of NJ

Payroll taxes on Vacation Fund contributions are handled through the following process: contributions are added to the member’s gross pay, all applicable payroll taxes are deducted, and after deductions, the full contribution amount is forwarded to the Fund Office and applied to the member’s account.

This structure means that
while contributions are employer-funded, they are treated as taxable
compensation for payroll purposes, an important consideration for members
tracking their annual tax obligations.

5. HGL SET Fund – Safety, Education & Training Since 1972

The Safety, Education, and
Training (SET) Fund has been operating since 1972, making it one of the most
established workforce development programs in the HGL portfolio. The SET Fund
offers training and skill advancement opportunities for both union members and
affiliated contractors, with a stated mission to develop a skilled,
well-trained workforce for the heavy and highway construction industry.

Key program offerings
include:

Safety Certification Courses: OSHA-aligned safety training relevant to heavy construction environments, including excavation, confined space, and hazmat procedures.

Technical Skills Training: Trade-specific instruction in areas such as drilling, blasting, paving, tunneling, and concrete work, aligned with the jurisdictional work scope of Locals 472 and 172.

Technology and Industrial Advancement: Programs designed to address emerging tools and methods in the construction sector.

Scholarship Program: An educational scholarship opportunity for eligible members. Applications are
available via the SET Fund forms on the HGL Funds website.

The SET Fund maintains
separate class schedules for Local 172 and Local 472 members, with courses
offered at designated training locations. Eligibility details are published on
the SET Fund eligibility page at hglfunds.org. The fund’s 2024 Summary Annual
Report is available for download.

The SET Fund also
maintains connections with the LIUNA New Jersey Training program, expanding the
breadth of certifications and safety training available to members beyond what
is administered directly through the fund.

Local Unions 472 and 172 – Geographic
Jurisdiction and Work Scope

HGL Funds serves members
of two distinct local unions, each covering a defined geographic and
occupational jurisdiction within New Jersey.

Laborers’ Local Union 472 – Northern New Jersey

Local 472 covers the
following counties: Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth,
Morris, Passaic, Somerset, Sussex, Union, and Warren. Its work jurisdiction
encompasses: drilling, blasting, roads, sewers, bridges, utility work, paving,
tunnels, dams, hazmat, excavations, and concrete work on heavy and general
construction projects.

Current Local 472
leadership includes: Manuel Amador, Jr. (Business Manager), Luis Recio
(President/Business Agent), Dennis D’Imperio (Vice President/Auditor/Business
Agent), Derek Brooks (Recording Secretary/Business Agent), and Michael Guinta
(Secretary-Treasurer/Business Agent), among other officers and Executive Board
members.

Laborers’ Local Union 172 – Southern New Jersey

Local 172 covers the
following counties: Atlantic, Cape May, Cumberland, Camden, Gloucester, Salem,
Burlington, Mercer, and Ocean. Its work jurisdiction mirrors Local 472’s in
scope, covering drilling, blasting, roads, sewers, bridges, utility work,
paving, tunnels, dams, hazmat, excavations, and concrete work.

Current Local 172
leadership includes: Anthony Capaccio (President/Business Manager), William
Coffin Jr. (Vice President/Business Agent), Christian Cole
(Secretary-Treasurer/Business Agent), Keith Klemmer (Recording
Secretary/Business Agent), and Howard Tomlin (Sergeant-At-Arms), among others.

Accessing Your HGL Funds Account – The
Member Portal

HGL Funds operates an
online member portal that provides eligible participants with secure,
personalized access to their benefit information. Once registered, members can
access a broad range of account-level data across the fund portfolio.

To register, members need
a valid email address. Registration is completed via the Member Login link at
hglfunds.org. The portal serves all members of both Locals 172 and 472. For
technical assistance or account questions, members may contact the Fund Office
directly.

Investment Strategy and Portfolio
Governance for HGL Funds

The investment management
of HGL Funds assets – most directly applicable to the Annuity Fund, follows a
governance structure common among well-managed Taft-Hartley plans. The model separates
policy decisions (made by the Trustees) from execution (carried out by
professional investment managers under the guidance of independent investment
consultants).

The Trustee-Directed Investment Model

Under the trustee-directed
model used by HGL Funds:

• The Board of Trustees, composed of equal numbers of labor and employer representatives, sets overall investment policy and objectives
• Professional investment consultants assist Trustees in developing the investment plan, conducting manager searches, and monitoring performance against benchmarks
• Investment professionals execute all actual transactions, buying, selling, and managing fund assets across designated asset classes
• Trustees maintain fiduciary accountability under ERISA, meaning they must act in the sole interest of participants and beneficiaries at all times

Key Investment Principles in Multi-Employer Fund Management

While HGL Funds does not
publicly disclose its specific asset allocation, well-managed Taft-Hartley
plans across the industry typically apply the following investment principles:

• Diversification across asset classes – equities, fixed income, real assets, and alternatives, to balance return potential with risk management
• Long-term investment horizons aligned with the fund’s liability profile and projected member retirement schedules
• Actuarial coordination – working with actuaries to ensure that assumed rates of return align with contribution levels and projected benefit obligations
• Regular performance benchmarking against appropriate indices and peer funds
• Cost discipline – seeking institutional investment access at favorable fee structures

How to Apply for HGL Funds Benefits –
Step-by-Step Guide

The process for accessing benefits
varies by fund type. The following guides outline the general steps for each
program.

Pension Fund – Retirement Benefit Application

1. Contact the Fund Office well in advance of your intended retirement date to begin the process and confirm your benefit eligibility.
2. Request and complete the Pension Application form. Download supporting forms from the HGL Funds website: W-4P (2025), NJ Tax Form, and the W-8-BEN if applicable.
3. Review your estimated monthly benefit using the member portal’s pension estimator tool.
4. Submit completed application and documentation to the Fund Office. Arrange direct deposit if desired for monthly payments.

Annuity Fund – Withdrawal or Distribution

1. Download the appropriate Withdrawal Application from hglfunds.org: standard Withdrawal Application, or Age 73 Withdrawal Application if deferring to the required minimum distribution age.
2. Select your preferred distribution method: lump sum, direct rollover (to IRA or qualified plan), partial rollover, lifetime annuity (with or without 50% spousal continuation), or monthly installment.
3. If opting for a Direct Rollover, complete the Direct Rollover Form and provide the receiving institution’s account information.
4. If married and selecting a joint and survivor annuity, both you and your spouse must sign the application in front of a Notary Public.
5. Submit completed forms to the Fund Office. Set up direct deposit using the Bank Authorization Form for ongoing monthly payments.

Welfare Fund – Health Coverage Access

1. Verify your eligibility status through the member portal or by contacting the Fund Office.
2. Register with Meritain Health (via the Aetna DocFind portal) to locate in-network medical providers.
3. Register with Express Scripts for prescription drug coverage and mail-order pharmacy services.
4. Download provider lists for dental, vision, and hearing aid providers from the hglfunds.org Welfare Fund page.

SET Fund – Training Enrollment

1. Verify your SET Fund eligibility at the SET Fund eligibility page on hglfunds.org.
2. Review the current class schedule for your local (Local 172 or Local 472).
3. Enroll in available courses that align with your work jurisdiction and career development goals.
4. Apply for the educational scholarship using the Scholarship Application form available on the SET Fund page.

Frequently Asked Questions About HGL Funds

1. What does HGL Funds stand for?

Ans. HGL Funds stands for Heavy
& General Laborers’ Funds of New Jersey. The organization administers five
benefit programs, Welfare, Pension, Annuity, Vacation, and SET, on behalf of
members of Laborers’ Local Unions 472 and 172.

2. Who is eligible for HGL Funds benefits?

Ans. Eligibility generally
extends to workers employed under the Collective Bargaining Agreement between
Local Unions 472 and 172 and participating employers in New Jersey. Specific
eligibility requirements, including qualifying hours thresholds, vary by fund
and are detailed in each fund’s Summary Plan Description.

3. Can I contribute to my own Pension or Annuity account?

Ans. No. Both the Pension Fund
and the Annuity Fund are funded exclusively through employer contributions made
on your behalf per the Collective Bargaining Agreement. Members are neither
required nor permitted to contribute directly to these funds.

4. What is the difference between the HGL Pension Fund and the Annuity Fund?

Ans. The Pension Fund is a
defined benefit plan that pays a formula-based monthly income at retirement,
regardless of market performance. The Annuity Fund is an individual
account-based plan where your employer contributions accumulate and are
invested by the Trustees your eventual benefit reflects the account balance
and chosen distribution method.

5. How can I check my Annuity Fund balance?

Ans. Your Annuity Fund balance
can be viewed through the secure member portal at member.hglfunds.org.
Registration requires a valid email address. Alternatively, you may contact the
Fund Office directly.

6. What happens to my Annuity Fund if I pass away before retirement?

Ans. In the event of a member’s
death prior to retirement, the designated beneficiary may be entitled to
receive the remaining account balance. A Beneficiary Withdrawal Application is
available on the HGL Funds website.

7. How does the SET Fund’s training benefit me?

Ans. The SET Fund provides
access to safety certifications, technical skills training, and scholarship
opportunities, all without direct cost to the member. These credentials may
enhance employability, enable members to take on higher-skilled assignments, and
support career advancement in the heavy and highway construction industry.

8. Can I roll over my Annuity Fund to an IRA?

Ans. Yes. Upon qualifying for a
distribution, you may elect a direct rollover to a Traditional IRA, Roth IRA,
or another eligible qualified retirement plan. The Direct Rollover Form is
available on the Annuity Fund page of hglfunds.org.

9. What is the required minimum distribution age for the Annuity Fund?

Ans. Under current IRS rules
(as updated by SECURE Act 2.0), the required minimum distribution age is 73. An
Age 73 Withdrawal Application is available for members who have reached this
age and must begin taking distributions.

10. Who should I contact for questions about my HGL benefits?

Ans. Members should contact the
HGL Funds Office at 700 Raymond Boulevard, Newark, NJ. Portal access is
available at hglfunds.org. Fund-specific questions about medical coverage,
pension calculations, or annuity distributions are best directed to the Fund
Office staff.