The Electrical Workers I.B.E.W. Local No. 701
Pension Plan
Summary Plan Description
1999
Edition
I.B.E.W. Local No. 701 General Pension Plan
To All Plan Participants:
We are pleased to present you with this
updated description of the Electrical Workers I.B.E.W. Local No. 701 General
Pension Plan.
Because your Pension Plan plays a
significant role in your future retirement income, we believe it’s important
that you and your family understand the benefits provided under this Plan. For
this reason, every effort has been made to explain the Plan in a clear,
straightforward manner.
This booklet is an interpretation
of the Plan’s legal document. However, if this description and the Plan
document differ, the Plan document will govern.
Please take some time to review
this booklet explaining your benefits under the Pension Plan. Understanding
your benefits under the Plan is an important part of preparing for retirement,
at any age.
If you have questions about the Plan
or if you would like a copy of the Pension Plan’s legal documents, please
contact the Fund Office.
Sincerely,
Board of Trustees
Important To Remember
Ø Tell
your family, particularly your spouse, about this booklet and where you keep it
filed.
Ø If
you have worked in employment covered by the Pension Plan for five years or
more and you are leaving without definite plans to return in the near future,
you may be entitled to a pension, payable when you have reached retirement age.
To protect your benefit rights, call or write the Fund Office. Arrangements
will be made to furnish you with a statement of your benefit rights.
Ø Notify
the Fund Office promptly if you change your address. If the Trustees are unable
to reach you at your last address on record, any benefit payments will be held
without interest.
Ø Only
the full Board of Trustees is authorized to interpret the Plan described in
this booklet. No employer or union representative is authorized to interpret
this Plan nor can any such person act as agent of the Trustees. If you want any
information regarding this Plan, such information must be communicated to you
in writing signed on behalf of the full Board of Trustees either by the
Trustees or, if authorized by the Trustees, signed by the Fund Administrator.
Table Of Contents
The Pension
Plan
Definitions
Participation
Hour Of Work
How Participation Ends
Reinstatement Of Participation
Earning A Benefit From The Plan
Pension Credits
Pension Credits For Periods Of Disability
Vesting Service
BREAKS IN SERVICE
Break In Service—January 1, 1972 Through December 31, 1975
Break In Service—January 1, 1976 Through December 31, 1985
Break In Service—January 1, 1986 To Present
Grace Periods
Types Of Pensions
Reviewing Your Options From The Plan
Regular Pension
Pension Amount
Normal Retirement Age Benefit
Pension Amount
Early Retirement Pension
Pension Amount
Disability Pension
Definition Of Total Disability
Proof Of Disability
Pension Amount
Deferred Pension
Pension Amount
Lump-Sum Readjustment Allowance
Post-Retirement Survivor Benefits
50% Husband-And-Wife-Pension
Amount Of Benefit
Rules For The Payment Of The 50% Husband-And-Wife Pension
Lump-Sum Death Benefit After You Retire
Pre-Retirement Survivor Benefits
Pre-Retirement Surviving Spouse Pension
When Payments Begin
Pre-Retirement Death Benefit
Health Care Pension Benefit And Special Supplement
If You Return To Work After You Retire
Suspension Of Plan Benefits
Requesting A Review
Benefit Payments Following A Suspension Period
Re-Calculation Of Pension Benefit
Paying Back Benefits
Applying For A Pension Benefit
Effective Date Of Pension
Applying For Survivor Benefits
Appealing Denied Benefits
General Questions And Answers
Table 1: Table Of Early Retirement Factors
Table 2: Table Of Deferred Retirement Factors
Table 3: Annuity Factors For Converting Pension Payments
Important Information About The Plan
Statement of ERISA Rights
I.B.E.W. Local No. 701
General Pension Fund
28600 Bella
Vista Parkway, Suite 1110
Warrenville, Illinois 6055-1600
(630) 393-1701
Fund Administrator
Cathy
Wenskus
Fund Consultant
The Segal
Company
101 North Wacker Drive, Suite 500
Chicago, Illinois 60606-7376
Legal Counsel
Arnold &
Kadjan
19 West Jackson Boulevard
Chicago, Illinois 60604-3958
Fund Auditor
Howard
Levinson & Associates
85 Revere Drive, Suite D
Northbrook, Illinois 60062
Calendar Year means the annual period of January 1 through December 31 and
serves as the period for which Pension Credits, years of Vesting Service, and
breaks in service are computed and recorded. It differs from the Pension Fund’s
fiscal year, which is the twelve-month period of June 1 through May 31.
Contributing
Employer means an employer who is required
in accordance with collective bargaining agreements or other written agreements
to pay contributions to the Pension Fund on behalf of his or her Employees.
Contribution
Period means any time after June 1, 1971.
On June 1, 1971, employers first became obligated by agreements to contribute
to the Fund for Covered Employment.
Covered Employment means work performed during the Contribution Period for an
employer who contributes to the Pension Fund in a job covered by a written agreement
with the union.
For the period between June 1, 1961 and May 31, 1971,
Covered Employment means work that, if performed during the Contribution
Period, would have resulted in contributions being paid to the Fund.
Employee means any Employee who works for an employer who pays
contributions to the Pension Fund for work as required by a collective
bargaining agreement.
ERISA means the Employee Retirement Income Security Act of 1974.
Hour of Work means each hour for which you are paid or entitled to be
paid by a Contributing Employer for the performance of duties, including back
pay. However, if you work for a Contributing Employer in a job not covered by
this Plan, that non-Covered Employment will also be counted as Hours of Work
under the Plan if it is continuous with (immediately before or after) Covered
Employment with that same employer.
Generally, Hours of Work are used to determine participation
in the Plan, breaks in service, years of Vesting Service, Pension Credits, and
eligibility for benefits. Hours of Work may be counted for Pension Credits but
only if contributions are paid to the Fund for the Hours of Work.
Pension Credits mean the units used to measure work in Covered Employment
that determine one’s qualification for pension benefits. Pension Credits may be
earned both before and during the Contribution Period.
Retirement means the period after you qualify for a pension under the
Plan and start to receive monthly pension payments. Once retired, there are
certain types of employment that are prohibited. This is explained further on
page __.
Union means Local Union 701, International Brotherhood of
Electrical Workers, AFL-CIO.
Years of Vesting
Service means years of Vesting Service
earned by accumulating Hours of Work during the Contribution Period. You will
have a non-forfeitable right to a pension once you complete five years of
Vesting Service.
As a participant in the Pension Plan, you are eligible to
earn Pension Credits and Vesting Service. You earn a right to benefits provided
by the Pension Plan as a participant.
Generally, you become a participant in the Plan on the
earliest January 1 or July 1 after:
Ø
you complete a 12-month period
as an Employee; and
Ø
you accumulate at least 500
Hours of Work during that time.
For example, if you start work on April 1, 1998 and
completed 500 Hours of Work before April 1, 1999, you become a Plan participant
on July 1, 1999.
An Hour of Work represents each hour for which you are paid
or entitled to be paid by your employer, including back pay. You will also be
able to count your continuous work with the same employer even if part of that
work is not in a job covered by a collective bargaining agreement. See page __
for a definition of Hour of Work.
If you earned Pension Credits and Vesting Service for work
performed before you became a participant, those hours may be credited
retroactively once you become a participant.
If you do not complete at least 435 Hours of Work in a
calendar year and have not yet met the requirements for a pension from the
Plan, you are no longer a participant. However, once you qualify for a pension
under the Plan, you will always be a participant.
If you lose your participant status, you can again become a
participant by completing 500 Hours of Work during a consecutive 12-month
period. You will be considered a participant when you complete the first hour
of the 500 Hours of Work.
You earn your pension benefit by accumulating Pension
Credits and years of Vesting Service. This section explains how to accumulate
Pension Credits and Vesting Service during different time periods. Rules often
differ for work performed during the
Contribution Period (beginning June 1, 1971, when employers were first required
to contribute to the Fund on the participants’ behalf) and for work performed before the Contribution Period.
Pension Credits are a measure of your employment while
covered by the Plan. They are used to determine eligibility for a pension
benefit.
You earn Pension Credits under the Plan as follows:
From June 1, 1961
through May 31, 1971: You receive one
Pension Credit for each year (June 1 through May 31) during which you perform
the majority of your work in the electrical industry under the jurisdiction of
I.B.E.W. Local Union 701. Pension Credits cannot be earned before June 1, 1961.
From June 1, 1971
through December 31, 1971: You receive one
Pension Credit if you complete at least 291 Hours of Work during this
seven-month period.
As of January 1,
1972: You receive one Pension Credit for
each calendar year in which you complete at least 500 Hours of Work.
Pension Credits may also be allowed for certain non-work
periods due to disability.
If you have earned at least one Pension Credit during the
Contribution Period (after May 31, 1971), you may receive additional
Pension Credits if you are absent from Covered Employment due to a disability.
Such additional Pension Credits will be granted if:
Ø
you are disabled and your
disability is confirmed by evidence satisfactory to the Board of Trustees; and
Ø
you are unable to perform work
in Covered Employment as a result of your disability.
If, however, you are disabled due to drug addiction, chronic
alcoholism, intentional self-inflicted injury, or because you were engaged in
an act of crime, you will not receive Pension Credit during your disability. In
addition, you will not be entitled to receive non-work Pension Credits while
receiving any pension under this Plan.
You will be credited with 20 non-work hours for each week
you are absent from Covered Employment because of disability.
You earn one year of Vesting Service for each calendar year
during the Contribution Period in which you complete at least 500 Hours of
Work. In the period June 1, 1971 through December 31, 1971, you earn a year of
Vesting Service if you complete at least 291 Hours of Work for which
contributions are paid to the Fund. Years of Vesting Service cannot be earned
before the Contribution Period.
As of June 1, 1976, you have a non-forfeitable right to a
pension if you have at least five years of Vesting Service. Otherwise, years of
Vesting Service earned before a permanent break in service will not be counted
in determining your eligibility for a Vested Pension.
Generally, if you are absent from Covered Employment for a
long period of time, you may have a permanent break in service. If you have a permanent
break in service, you will lose all of your Pension Credits and years of
Vesting Service earned before the break. However, once you qualify for any type
of pension, you cannot have a permanent break in service.
The break in service rules vary depending upon when the
break occurs, as outlined below.
If you fail to earn a Pension Credit in any calendar year
between January 1, 1972 and December 31, 1975, you incur a permanent break in
service and lose all Pension Credits and years of Vesting Service earned before
the break. However, if you retire after January 1, 1996 and have worked at
least 500 hours in Covered Employment during a plan year on or after January 1,
1980, your pre-1976 Pension Credits and Vesting Service will be subject to the
January 1, 1976 through December 31, 1985 permanent break in service rules
described below.
You incur a permanent break in service when your consecutive
one-year breaks (described below) equal your years of Vesting Service.
A one-year break in
service occurs if you do not complete at least 435 Hours of Work in any
calendar year. One-year breaks in service are temporary and can be repaired if
you earn a year of Vesting Service before incurring a permanent break in
service. One-year breaks will not accumulate unless they occur right after
another.
Break In
Service Prior To January 1, 1986 Example
Here is an example of how you would have a permanent break in service before January 1, 1986:
Year |
Hours of Work in Covered Employment |
Years of Vesting Service |
One-Year Break in Service |
|
1 |
1,105 |
1 |
0 |
|
|
|
3 Years of Vesting
Service |
3 Consecutive |
You receive a permanent break in service when you accumulate
the greater of:
Ø
five consecutive one-year
breaks in service; or
Ø
consecutive one-year breaks in
service equal to your years of Vesting Service.
You have three consecutive one-year breaks. Because your
consecutive one-year breaks are equal to your number of years of Vesting
Service, you have a permanent break in service that cancels all previous years
of Vesting Service, Pension Credits, and total contributions. A permanent break
in service cannot be repaired.
Break In
Service After December 31, 1985 Example
Here’s an example of how you would have a permanent break on or after January 1, 1986:
|
Year |
Hours of Work in Covered Employment |
Years of Vesting Service |
One-Year Break in Service |
|
1 |
1,650 |
1 |
0 |
|
|
|
2 Years of
Vesting Service |
5 Consecutive |
At the close of Year 7, you have two years of Vesting
Service and five consecutive one-year breaks in service. You have a permanent
break in service at the end of Year 7 (the fifth one-year break) which cancels
your previous years of Vesting Service, Pension Credits, and total
contributions.
Unlike the rule for breaks in service before January 1,
1986, you did not have a permanent break in service at the close of Year 4 when
your one-year breaks in service equaled your number of years of Vesting
Service. Beginning in 1986, you will not have a permanent break until you have
at least five consecutive one-year breaks in service.
If you had returned to employment in Year 7 and completed
500 Hours of Work, your work record would look like this:
Year |
Hours of Work in Covered Employment |
Years of Vesting Service |
One-Year Break in Service |
|
1 |
1,650 |
1 |
0 |
In this example, you reinstated your participation, Pension Credits,
years of Vesting Service, and total contributions by returning to Covered
Employment and receiving credit for 500 hours in Year 7. Because the number of
your consecutive one-year breaks was less than 5, you were able to repair your
one-year breaks and restore your Pension Credits, years of Vesting Service, and
total contributions.
A grace period is a period that will not be counted in
determining a break in service. These periods are exceptions if you do not earn
500 hours of service in a plan year because of:
Ø
retirement under the Plan;
Ø
military service as required
by applicable federal law;
Ø
your pregnancy;
Ø
birth of a your child;
Ø
placement of a child with you
in connection with your adoption of the child; or
Ø
caring for your child during
the period immediately following the birth or placement.
You must submit sufficient and timely information so the
Trustees can establish that your absence from work is due to one of the reasons
listed above.
Also, any leave of absence granted by your employer, up to
12 weeks, that qualifies under the Family and Medical Leave Act (FMLA) will not
count toward a break in service for purposes of determining eligibility and
vesting.
The Plan provides several kinds of pensions. This section describes
the pension benefits available for Employees who retire on or after January 1,
1999. For retirements before January 1, 1999, please consult the previous
booklet.
A number of factors are taken into account in calculating
the amount of a pension, such as your age, marital status, the number of
Pension Credits you earn before the Contribution Period, and the amount of
contributions made to the Fund on your behalf during the Contribution Period.
If you are married and retire on any pension other than a
Disability Pension, your pension benefit will be paid in the form of a 50%
Husband-and-Wife Pension unless you reject this form of payment in writing,
your spouse consents to the rejection in writing, and the rejection is
witnessed by a notary public. If you are a Disability Pensioner and you reach
age 55, you become eligible for an Early Retirement Pension and the provisions
for payment of a 50% Husband-and-Wife Pension will apply. The examples shown in
this section are for a pension for the participant’s lifetime only. The 50%
Husband-and-Wife Pension amount is somewhat lower because the benefit is paid
over both your and your spouse’s lifetimes. For more information on the 50%
Husband-and-Wife Pension, see page __.
When you apply for your pension, you will receive a written
estimate from the Fund Office of the amount of your pension in the 50%
Husband-and-Wife form, as well as all the other options. This will give you a
comparison of the benefits available to you so that you can make an informed
decision.
You will have up to the effective date of your pension, or
if later, 90 days from the date of the estimate, to decide whether you want
your pension paid as a 50% Husband-and-Wife Pension or in another form. You can
make or change a previous election by returning a completed form to the Fund
Office within the period described. However, for the rejection of the 50%
Husband-and-Wife Pension to be valid, the written explanation of the 50%
Husband-and-Wife Pension has to be provided to you no earlier than 90 days and
no later than 30 days before the effective date of your pension. However, you
and your spouse may waive the 30-day waiting period if you both sign a written
agreement on a form provided by the Fund Office. In no event can the election
be changed after the later of the date you start receiving benefits or 90 days
from the date of the written estimate.
In addition, your first pension payment will be adjusted if
your birthday is not on the first day of the month.
You are eligible to retire with a Regular Pension if you
are:
Ø
at least 60 years of age;
Ø
have accumulated at least ten
Pension Credits (including at least one Pension Credit earned during the
Contribution Period); and
Ø
worked at least 500 hours in
Covered Employment in a calendar year after you have reached age 53.
For retirements effective on and after January 1, 1999, the
monthly amount of the Regular Pension is calculated by taking the sum of (1)
and (2) below:
1. $2.00 times the number of Pension Credits earned before the
Contribution Period (up to a maximum of ten Pension Credits)
plus
2. 4.5% times the total contributions subject to the multiplier paid
to the Fund on your behalf for your work in Covered Employment during the
Contribution Period.
Your first pension payment will be a prorated amount for the
balance of the month in which you reached age 60.
Regular Pension
Example
Ted turned 60 on April 13, 1998 and has
filed an application for benefits. The Fund Office records show that Ted earned
ten Pension Credits before the Contribution Period and $23,595 in contributions
subject to the multiplier were paid on Ted’s behalf during the Contribution
Period. His Regular Pension benefit would be effective April 1, 1998 and is calculated
as follows:
Monthly Pension
$2.00 x 10 Pension Credits = $ 20.00
4.5% x $23,595 = 1,061.78
Total $1,081.78 per month payable for life
Prorated Payment for April
18 days ¸ 30 days = .60
$1,081.78 x .6 = $649.07
Ted’s first monthly pension payment will be $649.07 and
$1,081.78 thereafter.
You may elect to receive a portion of your Regular Pension
as a lump-sum amount payable upon retirement. For more information on the
Lump-Sum Readjustment Allowance, see page __.
You are eligible for a benefit if you are an active Employee
at or after Normal Retirement Age, regardless of your number of Pension Credits
or years of Vesting Service. You attain Normal Retirement Age upon your 65th
birthday if you have at least five years of Plan participation. Otherwise,
Normal Retirement Age will be your age after age 65 on the fifth anniversary of
your participation in the Plan. To be considered an active Employee, you must
work 500 hours in Covered Employment in the year you obtain Normal Retirement
Age or a subsequent year prior to a permanent break in service.
The amount of the pension will be determined in the same way
as the Deferred Pension (see page __).
To qualify for this benefit, you must be a participant when
you reach Normal Retirement Age – that is, you must repair any one-year breaks
in service. Refer to page __ for information on how to repair one-year breaks
in service.
You are eligible to retire with an Early Retirement Pension
if you:
Ø
are at least age 55;
Ø
earned at least ten Pension
Credits (including at least one Pension Credit earned during the Contribution
Period); and
Ø
worked at least 500 hours in
Covered Employment in a calendar year since reaching age 53.
The amount of the Early Retirement Pension is reduced from
the amount of the Regular Pension because your pension benefit is expected to
be paid to you for a longer period of time. The following sections describe the
reduction process.
If You Retire On
or After January 1, 1996. If you retire on
or after January 1, 1996 and work 500 hours in a calendar year beginning on or
after January 1, 1994, your Early Retirement Pension will be based on the
factors shown in Table 1 (page __). Table 1 shows the factors for the number of
years and months you are younger than age 60.
Early Retirement
Pension Example
Dave retires on August 1, 1998 at age 59
with 26 Pension Credits, four of which were earned before the Contribution
Period. During the Contribution Period, the Fund received $37,000 in
contributions subject to the multiplier on Dave’s behalf. His Early Retirement
Pension is calculated as follows:
Dave’s Regular Pension amount would be $1,673.00 [(4 Pension
Credits x $2.00) plus (4.5% x $37,000) = $1,673.00].
Because Dave is age 59, his early retirement factor from
Table 1 is 96%. Dave’s monthly pension payable for life beginning at age 59 is
$1,606.08 ($1,673.00 x 96%).
If Dave were age 60 when he retired, he would receive an
unreduced Regular Pension, or $1,673.00.
You may elect to receive a portion of your Early Retirement
Pension as a lump-sum amount payable upon retirement. For more information on
the Lump-Sum Readjustment Allowance, see page __.
If you are totally and permanently disabled, you may retire
with a Disability Pension if you:
Ø
are under age 55;
Ø
have earned at least ten
Pension Credits;
Ø
worked in Covered Employment
for at least 500 hours during the current or immediately preceding calendar
year in which you became totally and permanently disabled; and
Ø
have received a determination
that you are eligible for a disability benefit from the Social Security
Administration at the time your Disability Pension under this Plan begins.
You are considered to be totally and permanently disabled if
your disability is permanent and continuous for the rest of your life. The
disability must also prevent you from engaging in work as an electrician or in
electrical construction, maintenance, or any other type of work covered by a
collective bargaining agreement.
If your disability results from drug addiction, chronic
alcoholism, intentional self-inflicted injury, or a criminal act that you
commit, you will not be entitled to a Disability Pension.
The Board of Trustees may require you to receive an
examination by a physician or selected physicians. Periodic medical
examinations following your retirement on a Disability Pension may also be
required.
In place of a medical examination, the Trustees will accept
as proof of disability written verification from the Social Security
Administration that you are entitled to a Social Security Disability Award. If
the Social Security Administration ever reviews your disability status and determines
that you are no longer eligible for a disability award, you are required to
immediately notify the Fund Office of this event. Failure to do so may
jeopardize your continued disability status and may result in a determination
that your disability ceased on the day the Social Security Administration found
that you were no longer disabled.
The determination of total and permanent disability rests in
the sole and absolute judgment of the Board of Trustees.
Prior to age 45, your monthly Disability Pension is $200.00.
Between ages 45 and 55, your Disability Pension will be the lesser of the
amount you could have received as an Early Retirement Pension or $500.00. Once
you reach age 55, your Disability Pension will end and you will become eligible
for an Early Retirement Pension. You will then be entitled to elect any
optional form of benefit which would be available to any other participant at
early retirement age, including a 50% Husband-and-Wife Pension.
If you are disabled before age 55, you are not eligible for
a 50% Husband-and-Wife Pension until you reach age 55. However, if you die
before reaching age 55, your surviving spouse will receive a Pre-Retirement
Surviving Spouse Pension calculated as if you had lived to age 55 and then retired
on a 50% Husband-and-Wife Pension. For more information on the Pre-Retirement
Surviving Spouse Pension, see page __. The Disability Pension will begin on the
first day of the sixth month following the month in which you are totally and
permanently disabled.
Disability Pension
Example
At age 53, Sam becomes totally and
permanently disabled in April 1998. He had earned 26 Pension Credits (five
before the Contribution Period) and the Fund had received $24,000 in
contributions subject to the multiplier on his behalf during the Contribution
Period. His monthly Disability Pension is $500.00 until he reaches age 55
(since $500.00 is less than his Early Retirement Pension of $872.00 calculated
below). At age 55, Sam begins receiving an Early Retirement Pension of $872.00.
This amount is calculated as follows:
1. Sam’s Regular Pension amount is $1,090.00 per month [($24,000 x
4.5%) plus (5 Pension Credits x $2.00) = $1,090.00].
2. Sam’s Regular Pension amount is multiplied by 80%, the early
retirement factor for age 55, shown in Table 1, and he becomes eligible for a
monthly benefit of $872.00 ($1,090.00 x 80%), payable as a single-life benefit.
A Deferred Pension is provided if you work in Covered
Employment for an extended period of time, but leave Covered Employment before
meeting the requirements for a Regular or Early Retirement Pension.
You are entitled to a Deferred Pension if you have at least
five years of Vesting Service. A Deferred Pension is payable at age 65, or as
early as age 55 if you have earned ten or more Pension Credits. The reduction
factors for early payment of Deferred Pensions are shown in Table 2 on page __.
The monthly amount of the Deferred Pension is
based on the contribution percentage in effect when you last separated from
Covered Employment as shown in the following table.
|
Separated from Covered Employment |
Percentage |
|
June 1, 1971 through October 31,
1983 |
2.50% |
|
November 1, 1983 through December
31, 1984 |
3.00% |
|
January 1, 1985 through December
31, 1985 |
3.50% |
|
January 1, 1986 through December
31, 1986 |
3.75% |
|
January 1, 1987 through December
31, 1989 |
4.00% |
|
January 1, 1990 through December
31, 1992 |
4.25% |
|
On or after January 1, 1993 |
4.50% |
You will be considered separated from Covered Employment on
the last day of work followed by a calendar year in which you worked less than
500 hours in Covered Employment.
To determine the monthly pension benefit amount, first
determine the Regular Pension you would receive. If you receive this benefit
earlier than age 65, reduce the amount by the Early Retirement Pension
reduction factor shown in Table 2 (page __). A Deferred Pension is payable as
follows:
1. If you have at least five years of Vesting Service but less than
ten Pension Credits, your benefit is payable at age 65
2. If you have ten or more Pension Credits, you may choose to receive
your benefit at age 65 or earlier.
If you were totally and permanently disabled on June 1,
1998, were receiving a Social Security disability award and you had at least
five years of Vesting Service, you will be 100% vested in your pension.
If you separated from Covered Employment prior to June 1,
1998 with between five and ten years of Vesting Service, you may be entitled to
a percentage of your Deferred Pension. Please contact the Fund Office for more
information.
Deferred Vested
Pension Example
John left the industry in 1999 after
completing nine years of Vesting Service and earning nine Pension Credits, all
during the Contribution Period. The Fund received $10,000 in contributions
subject to the multiplier on his behalf. Because John has less than ten Pension
Credits, his benefit is not payable until he reaches age 65.
John qualifies for a Deferred Pension payable upon
retirement at age 65. The amount of the monthly benefit is calculated as
follows:
1.
John’s amount calculated as
though it were a Regular Pension is $375.00 (3.75% x $10,000).
2.
If John had ten Pension
Credits, his benefit at age 65 would be unreduced, or $375.00. He could also
elect to receive payments as early as age 55. At age 55, his benefit would
equal $150.00 [$375.00 x .40 (Table 2)].
If you are eligible for a Regular, Early Retirement, or a
Disability Pension after age 55, you may elect to receive a reduced monthly
pension in exchange for a lump-sum payment, called a Lump-Sum Readjustment
Allowance. The Lump-Sum Readjustment Allowance may not be elected if you are
retiring on a Deferred Pension. Furthermore, once it is elected, it may not be
revoked.
The reduction must be an even dollar amount and may not be
more than 15% of your monthly pension benefit. If you are married, you must
have the written consent of your spouse to elect the Lump-Sum Readjustment
Allowance.
The lump-sum payment may be elected regardless of whether
your pension is paid as a single-life benefit or as a 50% Husband-and-Wife
benefit. However, the calculations of the 50% Husband-and-Wife Pension (see page
__) will be based on the lower pension benefit you will receive as a result of
electing the lump-sum payment.
The lump-sum payment is based upon your age on the effective
date of your pension and the amount by which your monthly benefit is reduced.
Factors supplied by the Pension Fund’s actuary and adopted by the Trustees will
be used to determine the amount of the lump-sum payment. These factors are
adjusted each year. For factors currently in effect, contact the Fund Office.
After you have elected the Lump-Sum Readjustment Allowance,
you may request that your lump-sum payment be made at any time up to January 31
of the calendar year following the year in which your retire. This delayed
payment option is offered because of the potential tax advantage.
Lump Sum
Readjustment Allowance Example
Carl retires at age 62 and is eligible for
a Regular Pension of $1,300.00 per month. He and his wife reject the 50%
Husband-and-Wife Pension and Carl elects to reduce his pension benefit by 5%,
or $65.00 per month, in order to receive a lump-sum payment of $7,312.27. This
would reduce his monthly pension benefit from $1,300.00 to $1,235.00. His lump
sum was determined by multiplying $65.00 by 112.4964 (the lump sum factor for
age 62).
If he had elected to reduce his pension by 15% of his
monthly benefit ($195.00), Carl’s lump-sum payment would equal $21,936.80 and
his monthly benefit would be $1,105.00.
If you die after retiring under the Plan, two types of
survivor benefits may be payable to your spouse. These are the:
Ø
50% Husband-and-Wife Pension;
and
Ø
Lump-Sum Death Benefit.
The 50% Husband-and-Wife Pension provides that, upon your
death, half of your monthly benefit will be paid to your surviving spouse for
life. To qualify for the 50% Husband-and-Wife Pension, you must be married to
your spouse at retirement and for at least one year preceding the date of your
death.
If you are married upon retirement (except for retirements
on a Disability Pension) your pension benefit is automatically payable in the
form of a 50% Husband-and-Wife Pension unless you and your spouse reject this
form of payment in writing before your pension begins. The rejection of the 50%
Husband-and-Wife Pension (and spousal consent) must be witnessed by a notary
public.
A Disability Pension will be paid until you reach age 55. At
age 55, you become eligible for the Early Retirement Pension which is
automatically paid as a 50% Husband-and-Wife Pension unless you reject it and
your spouse consents to the rejection. If a Disability Pensioner dies before
age 55, his surviving spouse is eligible for the Pre-Retirement Surviving
Spouse Pension as described on page __.
Because the 50% Husband-and-Wife Pension guarantees retirement
benefits over both the husband’s and wife’s lifetimes, the monthly single-life
benefit is reduced. The amount of the reduction is actuarially determined and
depends on your age and your spouse’s age. The reduction factor equals 90.0%:
Ø
minus 0.4% for each full year
that your spouse is younger than you on the date the pension is effective; or
Ø
plus 0.4% for each full year
that your spouse is older than you on the date the pension is effective, not to
exceed 99.9%.
50%
Husband-And-Wife Pension Example
At age 62, Fred is eligible for a Regular
Pension of $1,400.00 per month (as a single-life benefit) and receives his
pension in the 50% Husband-and-Wife form. His wife is age 59. The 50%
Husband-and-Wife Pension is calculated as follows:
Regular Pension (without adjustment) $1,400.00
Percentage of pension payable under the Husband-
and-Wife Option = 88.8% (90% minus 1.2%, 0.4% for each
of the three years Fred’s spouse is younger than him) x 88.8%
Total monthly 50% Husband-and-Wife Pension payable
to Fred for life $1,243.20
Total monthly lifetime surviving spouse
benefit payable after Fred’s death (50% x $1,243.20) $621.60
Ø
The spouse must have been
legally married to the pensioner on the effective date of the pension and for
at least one year before a pensioner’s death.
Ø
If the spouse dies before the
pensioner, the amount of the pensioner’s monthly benefit will increase back to
the amount of a single-life benefit. Then all monthly pension benefits will
stop upon the death of the pensioner. No other spouse may become eligible for
the 50% Husband-and-Wife Pension.
Ø
If the spouse and pensioner
divorce, the monthly pension does not increase.
Ø
Payments are made to a
surviving spouse for his or her lifetime, whether or not the pensioner
remarries.
Ø
The Plan, in accordance with
the law, must recognize a Qualified Domestic Relations Order (QDRO). A
“domestic relations order” is a judgment, decree, or order (including approval
of a property settlement agreement) that (1) relates to the provision of child
support, alimony payments, or marital property rights to a spouse, former
spouse, child, or other dependent of a participant; and (2) is made pursuant to
a state domestic relations law.
A
“domestic relations order” is a Qualified Domestic Relations Order if it
creates or recognizes the existence of an alternate payee’s right, or assigns
the right to an alternate payee, to receive all or a portion of the benefits
payable to a participant under a plan, specifies required information, and does
not alter the amount or form of plan benefits. Whether a domestic relations
order qualifies as a QDRO under the guidelines established by and adhered to by
the Plan, is within the sole and complete discretion of the Trustees. If the
Trustees do not recognize the domestic relations order as a QDRO, it will not
be treated as a QDRO by the Plan.
An
“alternate payee” is a spouse, former spouse, child, or other dependent of a
participant who is recognized by a domestic relations order as having a right
to receive all, or a portion of, the benefits under a plan with respect to the
participant.
If a QDRO
requires the distribution of all or part of your benefits under the Plan to an
alternate payee, the Trustees are required to comply with the order.
You may
obtain a copy of the Fund’s procedures with respect to QDRO at no charge by
contacting the Fund Office.
If you retire on a pension based on at least ten Pension
Credits and you die, your designated beneficiary will receive a lump-sum death
benefit. If you are married, your designated beneficiary for the lump-sum death
benefit may be someone other than your spouse, only if your spouse consents in
writing to the beneficiary. If you die without designating a beneficiary, your
surviving spouse, if any, is entitled to the death benefit. If there is no
surviving spouse or designated beneficiary, your children, if any, are entitled
to equal shares of the death benefit. If there is no surviving spouse,
children, or designated beneficiary, the death benefit will be paid to your
estate.
The amount of the lump-sum death benefit is equal to $1,000
per Pension Credit, subject to a maximum benefit of $20,000. This benefit is
reduced by any pension payments received prior to your death, to a minimum
benefit of $2,000.
If you die before you retire, your surviving spouse may be
eligible for:
Ø
a pre-retirement surviving
spouse pension; or
Ø
a pre-retirement Death
Benefit.
If you die before you retire under the Plan, your surviving
spouse will receive a Pre-Retirement Surviving Spouse Pension if all of the
following conditions are met:
Ø
you have earned at least five
years of Vesting Service or ten Pension Credits;
Ø
you have at least one Hour of
Work after December 31, 1975; and
Ø
you and your spouse were
married to each other during the one-year period immediately before your death or,
if divorced, after being married for one year and your former spouse is
required to be treated as a spouse or surviving spouse under a Qualified
Domestic Relations Order.
If you have at least ten Pension Credits and you are age 55
or older, your spouse would receive 50% of the Husband-and-Wife Pension you
would have received had you retired on the day before you died.
If you have at least ten Pension Credits and you die before
age 55, your spouse’s pension is reduced for the 50% Husband-and-Wife Pension
and the Early Retirement Pension which would have been payable had you lived to
age 55 and then retired.
If you do not have ten Pension Credits, your spouse’s
pension will be 50% of the pension amount you would have been eligible for at
age 65 reduced in accordance with Table 2
(using 55 as the minimum age) and for the Husband-and-Wife form of payment.
The amount will be determined under the terms of the Plan in
effect when you last worked in Covered Employment, unless expressly specified
otherwise.
Payments to your surviving spouse will start the month after
your death. However, your surviving spouse may elect to defer payment of the
survivor benefit until the date you would have reached age 65. If the actuarial
lump-sum value of the Pre-Retirement Surviving Spouse Pension is worth $5,000
or less, the Trustees will pay out its full value in a single lump sum.
If you are a widowed active participant with at least ten
Pension Credits, a benefit equal to the Pre-Retirement Surviving Spouse Pension
will be payable upon your death to any of your dependent children. A dependent
child is:
Ø
an unmarried child under age
21, including a stepchild or a legally adopted child, who is wholly dependent
upon you; or
Ø
an unmarried child incapable
of self-sustaining employment because of mental retardation or physical
handicap that occurred prior to age 21. The benefit will be divided equally
among the eligible children. When a child reaches the age of 21 he or she will
no longer be eligible and the benefit amount will be divided equally among the
remaining eligible children. A physically or mentally handicapped child will be
eligible to receive the benefit until the later of 120 monthly payments or age
21.
If you are a widowed participant younger than age 55, you
are considered active if you worked at least 435 hours in Covered Employment in
the year you died or in the immediately preceding year. A widowed participant
age 55 or older is considered active if he or she worked 435 hours in the year
he or she reached age 55 or, if not, 500 hours in a subsequent year.
If you die before you retire under the Plan and the
Pre-Retirement Surviving Spouse Pension is not payable, your designated
beneficiary is eligible for the Pre-Retirement Death Benefit if at the time of
your death you:
Ø
had at least five Pension
Credits; and
Ø
worked in Covered Employment
for at least 500 hours during the calendar year in which you died or during the
immediately preceding calendar year.
If you die without designating a beneficiary, your surviving
spouse will receive the Death Benefit. If there is no surviving spouse, your
children will be paid the Death Benefit, in equal shares. If there is no
surviving spouse or children, the benefit will be paid to your estate.
The amount of the Death Benefit for your
beneficiary will be determined in accordance with the following schedule:
|
Number of Full Pension Credits |
Single Payment Death Benefit |
|
5 |
$ 750 |
If you have ten or more Pension Credits and your death
occurs on or after January 1, 1987, your beneficiary receives $1,000 per
Pension Credit, subject to a maximum benefit of $20,000.
Effective on January 1, 1993, a Health Care Pension and
Special Supplement were added to the Plan to help pay for some of the health
care costs faced by participants. You had to meet certain eligibility
requirements in order to be eligible for these benefits. The Health Care
Pension was basically $10 per Pension Credit (up to 30) payable at age 65. A
participant who retired early could elect to receive his Health Care Pension as
early as age 55. If payments began prior to age 60, the Health Care Pension was
reduced to reflect early payment.
There was also a Special Supplement which could be payable
as early as age 55 and which terminated at age 65. The Special Supplement was
also basically $10 per Pension Credit and was also reduced if payments began
prior to age 60 in the same amount as the Health Care Pension.
After carefully reviewing the Plan, the Trustees decided to
fund retiree health benefits through the Welfare Fund. As a result, effective
June 1, 1998, you will no longer accrue any additional Health Care Pension
benefits or Special Supplement benefits. Of course, any Health Care Pension
benefit or Special Supplement benefit that you earned prior to June 1, 1998
will be paid to you when you retire with the intent that you use it to purchase
retiree health care. If you complete at least 1,000 Hours of Work in the 1998
calendar year, you will earn one final Pension Credit for purposes of your
Health Care Pension and Special Supplement. In addition, you will be able to
receive these benefits as early as age 55 with no reduction for early payment
prior to age 60.
You must be retired to receive monthly pension payments. To
be considered retired, you cannot be employed or self-employed in disqualifying
employment.
Work that will disqualify you from receiving your monthly
benefit differs if you are under Normal Retirement Age (generally age 65) or
over Normal Retirement Age.
Before Normal
Retirement Age, disqualifying employment is
work anywhere in classifications of employment covered by the collective
bargaining agreement.
After Normal
Retirement Age, disqualifying employment
means work of 40 hours or more per month in an industry, trade, or craft and
geographic area covered by the Plan when your pension payments began.
If you are on Disability Pension, you are not entitled to
your pension if you engage in any substantial gainful activity. You are
required to report all earnings to the Trustees within 15 days after the month
in which you had any earnings. If you fail to report your earnings, your
Disability Pension will be suspended for an additional 12 months.
NOTE: A pensioner may request a ruling from the Trustees on
whether a particular type of employment will be in violation of the retirement
prohibitions.
If you take a job prohibited by the
Plan, you must notify the Fund Office, in writing, within 21 days after you
start work. You will then be required to give up your pension benefits for the
months during which you are so employed.
If you are a pensioner younger than
age 65 when you work in disqualifying employment, your pension benefits will be
suspended for up to 6 additional months after you end such employment. In
addition, if you fail to notify the Fund Office of your disqualifying
employment within the required 21 days, your benefit will be suspended for an
additional 6 months. These additional suspensions will not apply after Normal
Retirement Age.
If you are retired and intend to
return to work, ask for a determination from the Board of Trustees as to
whether that work will be considered disqualifying employment. If you disagree
with the determination, you may request a review within 90 days. You also have
the same right to a review if the Trustees determine that your benefits will be
suspended for work in disqualifying employment. Your request for a review must
be submitted in writing and will be processed in the same way as an appeal of a
pension denial.
When you work in disqualifying
employment and then want to again receive pension benefits, you must notify the
Fund Office in writing that you want your payments to be resumed. The notice to
the Fund Office to reinstate the pension must include your name, Social
Security number, and the date on which you stopped working in disqualifying
employment. Your payments will begin no later than the third month after the
last calendar month that your benefits were suspended.
If you resume retirement after working
in disqualifying employment and your benefit was suspended for at least three
months, your pension will be re-calculated based upon any additional Pension
Credit you earned and your age (up to Normal Retirement Age) when you resume
retirement.
However, if you originally retired on
a pension payable before Normal Retirement Age, your recalculated pension will
be actuarially adjusted based on the factors in Table 3 (page __) to take into
account the benefit payments received prior to your return to disqualifying
employment. This means that your recalculated benefit will be reduced by an
amount determined by dividing the total amount of benefits received before your
return to work, and before Normal Retirement Age, by the factor for your age
when you resume retirement.
You can elect a new form of pension
payment if you return to retirement before Normal Retirement Age. Once you
reach Normal Retirement Age, the first election you make after you reach Normal
Retirement Age will apply to any additional accruals and will be the final form
of pension election you can receive.
If you work in disqualifying
employment and continue receiving pension payments, you are obligated to repay
the pension amounts received during the months you worked in disqualifying
employment.
If you return to retirement after
Normal Retirement Age, the Trustees will withhold 100% of the first three
monthly benefit payments due upon your return to retirement plus, if necessary,
an amount from your future checks equal to 25% of the subsequent pension
payments to recover any benefits paid to you while in disqualifying employment.
If you die before the entire amount owed is recovered, benefits payable to your
surviving spouse will be reduced by 25% until the overpayment is repaid. If you
return to retirement before Normal Retirement Age, the Trustees will recover
all amounts owed before resuming benefit payments.
The complete rules for suspension of
benefits and re-calculation of benefit amounts are described in detail in Article
7 of the Pension Plan. These rules are in accordance with Department of Labor
regulations, which may be found in Section 2530.203-3 of Title 29 of the Code
of Federal Regulations.
To receive a pension benefit, first
request a pension application from the Fund Office at the address shown at the
beginning of this booklet. Return the completed application to the Fund Office.
You must send proof of your date of birth with your application. If you decide
you want the 50% Husband-and-Wife Pension, you need to provide proof of your
marriage, and your spouse’s birth date as well. If you are applying for a
Disability Pension, you may have to receive a medical examination or provide
proof of your disability.
Pensions are usually effective on the
first day of the third month following the month the pension application is
filed. Please file your pension application well in advance of the month you
want pension payments to begin.
As soon as possible after your death,
your surviving spouse or designated beneficiary should contact the Fund Office
to request instructions about filing an application for survivor benefits. A
copy of the death certificate will be required. Copies of your and your
spouse’s birth certificates and proof of marriage may also be requested.
If you believe you have been denied
benefits provided for under the Plan, your claim will be entitled to a full and
fair review under the following appeal procedure.
1. Upon denial of your application for benefits,
you will receive a written statement of the specific reason or reasons for
denial including reference to the specific Plan provisions on which the denial
is based, a description of any additional material or information necessary for
you to establish your right to benefits, and an explanation of which such
material or information is necessary for you to establish your right to
benefits. This written notice will also contain an explanation of the appeal
procedure that you can follow to have your claim for benefits reviewed.
2. If you have been denied benefits, you or your
duly authorized representative will have the following rights in appealing the
initial decision:
a. The right to submit additional proof of
entitlement to benefits.
b. The right to examine any document in the
possession of the Plan related to the application.
c. The right, within 90 days of receipt of the
notice of the denial of benefits, to appeal the decision to the Board of
Trustees by submitting a written statement setting forth which of the reasons
for denial of the application you disagree with along with any supporting
documents or additional comments related to your appeal. The written statement
is to be submitted to the Board of Trustees at the Fund Office address.
d. In most cases, the Trustees will make their
determination on the basis of the supporting file documents and your written
statement as submitted. However, the Trustees may in their discretion, require
you to submit additional written information and/or to appear before the
Trustees for oral examination. In the event you are required to appear before
the Trustees, the hearing will be held at the next regular meeting of the
Trustees or at such other time as may be determined by the Board of Trustees
with reasonable notice to you of the date and time of the hearing.
3. The Board of Trustees will make a full and
complete review of each appeal and issue its decision in writing within 60 days
after receipt of the written request for an appeal. If circumstances require an
extension of time for processing, the decision will be rendered as soon as
possible, but not later than 120 days after receipt of a request for review.
The decision of the Board of Trustees
will be written in a clear and understandable manner and will include the
specific reasons for the decision. The decision of the Board of Trustees is
final and binding.
If you have exhausted your appeals
with the Board of Trustees, you may file an action in court challenging the
decision. If you choose to file suit, you must do so within 60 days of the
Board of Trustees’ decision in the United States District court for the
Northern District of Illinois, Eastern Division. In no event may you assign
your rights under the Pension Plan to another person, party, or entity to
pursue a claim following denial of your appeal.
Following are some frequently asked
questions and their answers.
What Is The Pension Fund?
The Pension Fund is a legal trust fund
set up for the purpose of providing retirement benefits. The Agreement and
Declaration of Trust dated June 1, 1971 and as amended thereafter established
the Pension Fund. The Trust Agreement and the Pension Plan govern the Pension
Fund’s operation. The Plan sets forth the various types of pensions provided by
the Fund, the benefit amounts for each type of pension, and the eligibility
requirements. The Plan is on file in the Fund Office.
Who Administers The Fund?
A Board of Trustees, which serves
without any compensation, acts on behalf of all Employees in managing all
aspects of the Pension Fund’s operations. This Board is made up of union and
employer representatives whose powers and duties are set forth in a legal
document called the Agreement and Declaration of Trust.
How Were The Benefit Amounts For The Various Types Of Pensions
Determined?
The Pension Plan was set up on the
basis of detailed actuarial studies so that the persons approved for pensions
are assured of the fact that they will receive the promised benefits for the
remainder of their lives following retirement.
Who Pays The Cost Of The Pension Plan?
The entire cost of the Plan is paid
for by the participating employers who contribute to the Pension Fund in
accordance with their collective bargaining agreements or other written
agreements with Local 701. No Employee contributions are required or accepted.
Who Is Covered By The Pension Plan?
All Employees for whom employers are
obligated to make contributions to the Pension Fund in accordance with the
collective bargaining agreements or other written agreements with Local 701 are
covered by the Pension Plan.
Can The Benefits Under The Plan Be Changed?
Yes, as experience under the Plan
develops, the Trustees have the authority to change the benefit amounts payable
under the Plan. Any such change will be made upon the recommendations of an
actuary who has made necessary calculations to assure the validity of any such
change.
The Trustees have the right to amend
or terminate the Plan at any time. Vested benefits that have been earned cannot
be reduced or eliminated. Upon termination of the Plan, all benefits will
become 100% vested.
Will The Fund Continue To Receive Contributions On My Behalf If I
Work After Age 65?
Yes, the Fund will continue to receive
such contributions and an eligible Employee will be entitled to receive a
percentage of such contributions upon retirement on a pension under this Plan.
If I Have Debts, Can I Sign Over My Pension Benefit?
No. Benefits cannot be sold, assigned,
or pledged as a security for a loan. Furthermore, they are not normally subject
to attachment or execution under any judgment or decree of a court except in
relation to a Qualified Domestic Relations Order (QDRO). See page __ for a
description of a QDRO.
Can I Receive Social Security Benefits In Addition To The Benefits
Provided By This Plan?
Yes. Social Security Benefits paid by
the Social Security Administration are independent of this Plan. Employees
should file for any benefits they are entitled to receive from Social Security.
What Happens If I Am Too Ill To Manage My Own Affairs?
The Trustees will pay any benefits due
you to your legal guardian, committee or legal representative or, in their
absence, to any blood relative or connection by marriage the Trustees consider
entitled to receive them on your behalf.
In no event does this mean, however,
that you can assign any claim you may have against the Pension Plan or the
Board of Trustees to another person, party, or entity.
Percentage Of
Accrued Benefit Payable Upon Early Retirement
(For Retirement on or after January 1, 1996)
|
Age |
Months |
|||||||||||
|
0 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
|
|
59 |
0.9600 |
0.9633 |
0.9667 |
0.9700 |
0.9733 |
0.9767 |
0.9800 |
0.9833 |
0.9867 |
0.9900 |
0.9933 |
0.9967 |
|
58 |
0.9200 |
0.9233 |
0.9267 |
0.9300 |
0.9333 |
0.9367 |
0.9400 |
0.9433 |
0.9467 |
0.9500 |
0.9533 |
0.9567 |
|
57 |
0.8800 |
0.8833 |
0.8867 |
0.8900 |
0.8933 |
0.8967 |
0.9000 |
0.9033 |
0.9067 |
0.9100 |
0.9133 |
0.9167 |
|
56 |
0.8400 |
0.8433 |
0.8467 |
0.8500 |
0.8533 |
0.8567 |
0.8600 |
0.8633 |
0.8667 |
0.8700 |
0.8733 |
0.8767 |
|
55 |
0.8000 |
0.8033 |
0.8067 |
0.8100 |
0.8133 |
0.8167 |
0.8200 |
0.8233 |
0.8267 |
0.8300 |
0.8333 |
0.8367 |
Percentage Of
Accrued Benefit Payable Upon Attaining Early Retirement Age
|
Age |
Months |
|||||||||||
|
0 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
|
|
64 |
.940 |
.945 |
.950 |
.955 |
.960 |
.965 |
.970 |
.975 |
.980 |
.985 |
.990 |
.995 |
|
63 |
.880 |
.885 |
.890 |
.895 |
.900 |
.905 |
.910 |
.915 |
.920 |
.925 |
.930 |
.935 |
|
62 |
.820 |
.825 |
.830 |
.835 |
.840 |
.845 |
.850 |
.855 |
.860 |
.865 |
.870 |
.875 |
|
61 |
.760 |
.765 |
.770 |
.775 |
.780 |
.785 |
.790 |
.795 |
.800 |
.805 |
.810 |
.815 |
|
60 |
.700 |
.705 |
.710 |
.715 |
.720 |
.725 |
.730 |
.735 |
.740 |
.745 |
.750 |
.755 |
|
59 |
.640 |
.645 |
.650 |
.655 |
.660 |
.665 |
.670 |
.675 |
.680 |
.685 |
.690 |
.695 |
|
58 |
.580 |
.585 |
.590 |
.595 |
.600 |
.605 |
.610 |
.615 |
.620 |
.625 |
.630 |
.635 |
|
57 |
.520 |
.525 |
.530 |
.535 |
.540 |
.545 |
.550 |
.555 |
.560 |
.565 |
.570 |
.575 |
|
56 |
.460 |
.465 |
.470 |
.475 |
.480 |
.485 |
.490 |
.495 |
.500 |
.505 |
.510 |
.515 |
|
55 |
.400 |
.405 |
.410 |
.415 |
.420 |
.425 |
.430 |
.435 |
.440 |
.445 |
.450 |
.455 |
Note: Reduction is 6% per year from age 65 to 55.
Prior To
Suspension Of Benefits
Age
|
Years |
Months |
|||||||||||
|
0 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
|
|
55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 |
154.43 151.24 148.00 144.70 141.35 137.95 134.50 131.02 127.51 123.98 120.44 116.89 113.37 109.85 106.33 102.80 |
154.16 150.97 147.73 144.42 141.07 137.66 134.21 130.73 127.22 123.69 120.14 116.60 113.08 109.56 106.04 |
153.90 150.70 147.45 144.14 140.78 137.38 133.92 130.44 126.92 123.39 119.85 116.30 112.78 109.26 105.74 |
153.63 150.43 147.18 143.86 140.50 137.90 133.63 130.14 126.63 123.10 119.55 116.01 112.49 108.97 105.45 |
153.37 150.16 146.90 143.58 140.22 136.80 133.34 129.85 126.33 122.80 119.26 115.72 112.20 108.68 105.15 |
153.10 149.89 146.63 143.30 139.93 136.51 133.05 129.56 126.04 122.51 118.96 115.42 111.90 108.38 104.86 |
152.84 149.62 146.35 143.03 139.65 136.23 132.76 129.27 125.75 122.21 118.67 115.13 111.61 108.09 104.57 |
152.57 149.35 146.08 142.75 139.37 135.94 132.47 128.97 125.45 121.92 118.37 114.89 111.32 107.80 104.27 |
152.30 149.08 145.80 142.47 139.08 135.65 132.18 128.68 125.16 121.62 118.07 114.54 111.02 107.50 103.98 |
152.04 148.81 145.53 142.19 138.80 135.36 131.89 128.39 124.86 121.33 117.78 114.25 110.73 107.21 103.68 |
151.77 148.54 145.25 141.91 138.52 135.08 131.60 128.10 124.57 121.03 117.48 113.96 110.44 106.92 103.39 |
151.51 148.27 144.98 141.63 138.23 134.79 131.31 127.80 124.27 120.74 117.19 113.66 110.14 106.62 103.09 |
Normal Form: Life Only
The following information provides
important facts about the Plan that you should know.
1. Plan
Name. The Pension Plan is known as the Electrical Workers General Pension Fund.
2. Board
of Trustees. A Board of Trustees is responsible for the operation of the
Plan. The Board of Trustees consists of an equal number of employer and union
representatives selected by the employers and Local 701 who have entered into
collective bargaining agreements that relate to this Plan. If you wish to
contact the Board of Trustees, you may use the address and telephone number
below:
Board of Trustees
Electrical Workers I.B.E.W. Local No. 701 General Pension Fund
28600 Bella Vista Parkway Suite 1110
Warrenville, Illinois 60555-1600
Telephone: (630) 393-1701
As of January 1, 1999, the Trustees of the
Pension Plan are:
|
Union Trustees |
Employee Trustees |
|
Brian Benson |
Sharon Cattaneo |
|
Arthur Ludwig |
Bruce Creen |
|
John T. Murphy |
George Freda |
|
Timothy Ory |
Michael McInerney |
3. Identification
Number. The number assigned to the Plan by the Board of Trustees pursuant
to instructions of the Internal Revenue Service is 001.
The Employer Identification Number (EIN)
assigned to the Board of Trustees by the Internal Revenue Service is
36-6455509.
4. Agent
for Service of Legal Process. The Board of Trustees is the agent for
service of legal process. Accordingly, if legal disputes involving the Plan
arise, any legal documents should be served upon any of the Trustees at the
Fund Office address.
5. Collective
Bargaining Agreement. This Plan is maintained pursuant to collective
bargaining agreements between the employers and Local Union 701.
The Fund Office will provide you, upon
written request, information as to whether a particular employer is
contributing to the Plan on behalf of participants working under the collective
bargaining agreements.
6. Source
of Contributions. The benefits described in this booklet are provided
through employer contributions. The amount of employer contributions and the
Employees on whose behalf contributions are made are determined by the
provisions of the collective bargaining agreements.
7. Pension
Trust’s Assets and Reserves. All assets are held in trust by the Board of
Trustees for the purpose of providing benefits to eligible participants and
defraying reasonable administrative expenses.
8. Type
of Plan. The Pension Plan is a defined benefit plan maintained for the
purpose of providing retirement benefits to eligible participants.
9. Eligibility
and Benefits. The types of benefits provided, the Plan’s requirements with
respect to eligibility and circumstances that may result in disqualification,
ineligibility, or denial or loss of benefits are fully described in this
booklet.
10. Pension
Benefit Guaranty Corporation. Your pension benefits under this Plan are
insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance
agency. If the Plan terminates (ends) without enough money to pay all benefits,
the PBGC will step in to pay pension benefits. Most people receive all of the
pension benefits they would have received under their plan, but some people may
lose certain benefits.
The PBGC guarantee generally covers: (1)
normal and early retirement benefits; (2) disability benefits if you become
disabled before the plan terminates; and (3) certain benefits for your
survivors.
The PBGC guarantee generally does not
cover: (1) benefits greater than the maximum guaranteed amount set by law for
the year in which the Plan terminates; (2) some or all of benefit increases and
new benefits based on Plan provisions that have been in place for fewer than
five years at the time the Plan terminates; (3) benefits that are not vested
because you have not worked long enough; (4) benefits for which you have not
met all of the requirements at the time the Plan terminates; (5) certain early
retirement payments (such as supplemental benefits that stop when you become
eligible for Social Security) that result in an early retirement monthly
benefit greater than your monthly benefit at the Plan’s Normal Retirement Age;
and (6) non-pension benefits, such as health insurance, life insurance, certain
death benefits, vacation pay, and severance pay.
Even if certain of your benefits are not
guaranteed, you still may receive some of those benefits from the PBGC
depending on how much money your Plan has and on how much the PBGC collects
from employers.
For more information about the PBGC and
the benefit it guarantees, ask your Fund Administrator or contact the PBGC’s
Technical Assistance Division, 1200 K Street N.W., Suite 930, Washington, D.C.
20005-4026 or call (202) 326-4000 (not a toll-free number). TTY/TDD users may
call the federal relay service toll-free at (800) 877-8339 and ask to be
connected to (202) 326-4000. Additional information about the PBGC’s pension
insurance program is available through the PBGC’s website on the Internet at
http://www.pbgc.gov.
11. Rights
and Responsibilities. As someone who is or may be eligible for benefits
from this Plan, you are no doubt aware of the fact that the benefits are paid
in accordance with Plan provisions out of a trust fund which is used solely for
that purpose. If you have had any questions or problems as to benefit payments,
you have had the right to get answers from the Trustees who administer the
Plan.
The same basic rights have now been incorporated
in the Employee Retirement Income Security Act, which Congress adopted in 1974,
for application to all benefit plans. Those rights are set forth on page __.
As a participant in the I.B.E.W. Local
No. 701 Electrical Workers General Pension Fund, you are entitled to certain
rights and protections under the Employee Retirement Income Security Act of
1974 (ERISA). ERISA provides that all Plan participants will be entitled to:
Ø Examine,
without charge, at the Fund Administrator’s office and at other specified
locations, such as union halls and worksites, all documents governing the Plan,
including insurance contracts and collective bargaining agreements, and a copy
of the latest annual report (Form 5500 Series) filed by the Plan with the U.S.
Department of Labor.
Ø Obtain,
upon written request to the Fund Administrator, copies of documents governing
the operation of the Plan, including insurance contracts, collective bargaining
agreements, copies of the latest annual report (Form 5500 Series), and updated
summary plan description. The administrator may make a reasonable charge for
copies.
Ø Receive
a summary of the Plan’s annual financial report. The Fund Administrator is
required by law to furnish each participant with a copy of this summary annual
report.
Ø Obtain
a statement telling you whether you have a right to receive a pension at Normal
Retirement Age (age 65, or if later, your age on the fifth anniversary of your
participation) and if so, what your benefits would be at Normal Retirement Age
if you stop working under the Plan now. If you do not have a right to a
pension, the statement will tell you how many more years you have to work to
get a right to a pension. This statement must be requested in writing and is
not required to be given more than once every 12 months. The Plan must provide
the statement free of charge.
In addition to creating rights for
Plan participants, ERISA imposes duties upon the people who are responsible for
the operation of the Plan. The people who operate your Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the interest
of you and other Plan participants and beneficiaries. No one, including your
employer, your union, or any other person, may fire you or otherwise discriminate
against you in any way to prevent you from obtaining a pension or exercising
your rights under ERISA. If your claim for a pension benefit is denied in whole
or in part, you must receive a written explanation of the reason for the
denial. You have the right to have the Plan review and reconsider your claim.
Under ERISA, there are steps you can
take to enforce the above rights. For instance, if you request materials from
the Plan and do not receive them within 30 days, you may file suit in a Federal
court. In such a case, the court may require the Fund Administrator to provide
the materials and pay you up to $110 a day until you receive the materials,
unless the materials were not sent because of reasons beyond the control of the
administrator.
If you have a claim for benefits which
is denied or ignored, in whole or in part, you may file suit in a state or
Federal court. In addition, if you disagree with the Plan’s decision or lack
thereof concerning the qualified status of a domestic relations order, you may
file suit in Federal court. If it should happen that Plan fiduciaries misused
the Plan’s money, or if you are discriminated against for asserting your
rights, you may seek assistance from the U.S. Department of Labor, or you may
file suit in a Federal court. The court will decide who should pay court costs
and legal fees. If you are successful, the court may order the person you have
sued to pay these costs and fees. If you lose, the court may order you to pay
these costs and fees, for example, if it finds your claim is frivolous.
If you have any questions about your
Plan, you should contact the Fund Administrator. If you have any questions
about this statement or about your rights under ERISA, you should contact the
nearest Office of the Pension and Welfare Benefits Administration, U.S.
Department of Labor, listed in your telephone directory or the Division of
Technical Assistance and Inquiries, Pension and Welfare Benefits
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington,
D.C. 20210.
Nothing in this statement is meant to interpret,
extend, or change in any way the provisions expressed in the Plan or insurance
policies. The Trustees reserve the right to amend, modify, or discontinue all
or part of this Plan whenever, in their judgment, conditions so warrant.