I. BENEFIT HIGHLIGHTS
A. Monthly Pension Benefits: Normal, Early, and Disability
1. When do you become eligible to receive a monthly pension?
(a) You become eligible for a NORMAL Pension at age 65, which is the Plan's normal retirement age, or upon retirement from the industry, whichever is later, if you have 5 years of Service Credit (see Section II.B.). However, 10 years of Service Credit are required if your coverage ended before 1989. Even if you have not retired, you will receive a pension beginning April 1 after the calendar year in which you reach age 70½.
(b) You become eligible for a reduced EARLY Pension if you are retired and apply between the ages of 62 and 65, and have either 20 years of Service Credit (25 years if your coverage ended before 1993) or are Vested with a Social Security Disability Award.
(c) DISABILITY Pensions are no longer offered. A Social Security Disability Award instead entitles a participant to a reduced Early Pension at age 62. Pensions based on Disability will terminate if your Social Security Disability Pension is terminated prior to reaching age 65, but you would remain eligible for a Normal Pension from this Plan.
Note on pension eligibility: Becoming Vested (see Section II.) assures you of a pension, even if you leave covered employment before age 65.
2. How do you want your monthly pension paid?
You may choose to have the full amount of your monthly pension paid to you as a LIFE ONLY pension or to receive an actuarially reduced amount so that upon your death, pension payments can continue in accordance with one of the options described below. If you are married when your pension starts, your pension must be paid under one of the joint and survivor options (50%, 75%, and 100%) unless you and your spouse submit a signed and notarized waiver. Once payments begin, the payment option cannot be changed, even if you divorce or your spouse dies. All options have approximately the same relative (actuarial) value.
(a) LIFE ONLY: Highest pension payable for your lifetime, with payments ending upon your death.
(b) LIFE/10: Reduced pension payable for your lifetime, but in the event you die before receiving at least 120 monthly payments(10 year minimum guarantee), the remaining guaranteed payments will be made to your beneficiary(ies).
Additional options if married (joint & survivor pension):
(c) 50% SPOUSE: Reduced pension payable for your lifetime. Upon your death 50% of your monthly pension will be paid to your eligible surviving spouse for his/her lifetime.
(d) 75% SPOUSE: Reduced pension payable for your lifetime. Upon your death, 75% of your monthly pension will be paid to your eligible surviving spouse for his/her lifetime.
(e) 100% SPOUSE: Reduced pension payable for your lifetime. Upon your death, 100% of your monthly pension will be paid to your eligible surviving spouse for his/her lifetime.
For the joint & survivor options (50%, 75% and 100%), there is no guaranteed minimum number of payments. The eligible surviving spouse is the person married to you when payments begin. If your spouse dies, you will continue to receive the same lifetime pension amount and payments end with your death. If you select a joint & survivor option but die before you have been married for one year, the survivor provisions will not apply and benefits will continue as if you had selected the LIFE/10 form of pension.
If the actuarial present value of a monthly pension is less than $5,000 at the time it becomes payable, a lump sum will be paid instead of monthly payments. The determination is based on the applicable interest rate then in effect. Otherwise, a pension is not payable in a lump sum.
3. How much will your pension be?
Your pension amount is based on the total employer contributions made on your behalf. Contribution amounts are multiplied by the pension formula in effect when those contributions were credited. The monthly pension formula currently in effect for contributions on or after May 1, 2009 is 1% of contributions (except for certain contributions after retirement--see Section II.F). For example, if contributions began on May 1, 2009 and total $50,000 at retirement, your LIFE ONLY amount at age 65 would be $500.00 per month ($50,000 x 1%) based on the current formula. Earlier contributions are multiplied by different pension formulas as follows:
2.5% of contributions credited for January 1, 2003 through April 30, 2009
3.25% of contributions credited for July 1, 1998 through December 31, 2002
3.0% of contributions credited for July 1, 1987 through June 30, 1998
1.7% of contributions credited for July 1, 1985 through June 30, 1987
1.3% of contributions credited for January 1, 1984 through June 30, 1985
1.0% of contributions credited for January 1, 1977 through December 31, 1983
1.7% of contributions credited from inception through December 31, 1976
In addition, pension amounts accrued through December 31, 1997, calculated as described above, are increased by 12% for persons not yet receiving a pension as of that date. Pension amounts accrued through December 31, 1998 are increased by an additional 10% if your pension is effective after that date.
If you entered the Plan before January 1, 1977 and were continually employed as a journeyman beginning before January 1, 1967, you may be eligible for an additional pension amount attributable to Past Service. The amount of Past Service Pension is based upon contributions before January 1, 1977 and your years of Past Service. The Plan Office can advise whether you have any Past Service Pension and can describe how it is calculated.
Therefore, your Normal Pension is the sum of the amounts computed during each period, plus any Past Service Pension, and if applicable, the percentage increases on pension amounts earned through December 31, 1997 and December 31, 1998.
The calculation of an Early Pension begins with the Normal Pension amount, but is then reduced based on the retiree's age on the date the Early Pension begins, because it is expected to be paid for a longer period of time. The reduction factors are shown in Appendix B. The amount calculated with these reduction factors is the amount you will receive for as long as you receive a pension.
The calculation of a Disability Pension is the same as for an Early Pension.
Based on the above example of a $500 monthly Normal Pension, the following comparison shows Normal and Early Pension amounts under each option, assuming the Participant's spouse is 3 years younger. Reduction factors for the options are listed in Appendix A. Reduction factors for Early Pension are listed in Appendix B.
Normal Early Early Early
Age 65 Age 64 Age 63 Age 62
LIFE ONLY $500.00 $450.80 $407.30 $368.75
LIFE/10 $455.55 $414.96 $378.38 $345.33
50% SPOUSE $434.00 $391.29 $353.54 $320.08
75% SPOUSE $407.50 $367.40 $331.95 $300.53
100% SPOUSE $386.00 $348.02 $314.44 $284.68
B. Death Benefits
1. Death Benefit Before Retirement
(a) Married, Vested Participants. If you are married for at least one year and Vested but die before you begin receiving a pension, your surviving legal spouse will be eligible to receive a 50% SPOUSE monthly survivor pension (described in A.2.c.), with payments beginning on the earliest date you would have qualified for pension if you had survived.
(b) Unmarried, Vested Participants. If you are vested and die before receiving a pension, your named beneficiary(ies) will be eligible to receive a monthly benefit, to be determined based on your total credited contributions and payable on the date you would have been eligible to start receiving a pension
2. Death Benefit After Retirement
The benefits, if any, which follow your death and to whom they are paid are determined by the form of Pension payment chosen.
Under the LIFE ONLY pension, payments end with your death.
Under LIFE/10, if you die before receiving the guaranteed minimum of 120 payments, monthly payments will continue to your beneficiary(ies) ending when 120 total payments have been made. The Board of Trustees have the sole discretion to direct that the remaining guaranteed benefits be paid in a lump sum to the beneficiaries, which shall be the actuarial equivalent of the remaining payments. If your beneficiary dies before the guaranteed payments have been made, the remaining benefits shall be paid as provided in the Plan.
Under the joint & survivor pension options (50% SPOUSE, 75% SPOUSE & 100% SPOUSE), your surviving spouse (to whom you were married at retirement) will continue to receive monthly payments for life. Benefits end when your spouse dies.
3. Designation Of Beneficiary For Death Benefit
The Plan Office can furnish you with the appropriate Designation of Beneficiary form. You should complete the form and mail it to the Plan Office. You may change your designation by filing a new form, except that if you are receiving a pension under the 50% SPOUSE, 75% SPOUSE or 100% SPOUSE options, the designated survivor cannot be changed.
For a pre-retirement Death Benefit or for a LIFE/10 pension, you may name more than one beneficiary and specify the shares each will receive, subject to spouse consent if applicable. You may also name contingent beneficiaries to provide for the possibility of your primary beneficiary predeceasing you.
If you do not designate any beneficiaries, the Plan provides that your Death Benefit will be paid (i) to your surviving spouse, or if there is none, (ii) to your children, each of whose share if that child has predeceased you will go to the children of that child, or if there are no children or descendants, (iii) to your surviving parents, or if there are none, (iv) to your estate.
C. Withdrawal Benefit
Effective July 1, 2010, Withdrawal Benefits for non-vested Participants will no longer be paid.