Generally, you earn one year of Vesting
Service for each calendar year in which you complete 500 hours of work. As
of June 1, 1976 you have a non-forfeitable right to a pension if you have at
least five years of Vesting Service.
If you are absent from Covered Employment for
a long period of time, you may incur 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.
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 in service will not accumulate unless they occur right after
each other (consecutively).
The rules covering breaks in service vary
depending upon when the break occurs. The current rule, in effect since
January 1, 1986, specifies that you receive a permanent break in service
when you accumulate the greater of:
- Five one-year breaks in service, or
- One-year breaks in service equal to your
years of Vesting Service
A grace period may be applicable for the
purposes of determining breaks in service. Grace periods are counted as
exceptions if you do not earn 500 hours of service in a plan year because
of:
- Retirement under the Plan;
- Military service as required by applicable
federal law;
- Your pregnancy;
- Birth of your child;
- Placement of a child in connection with
your adoption of the child, or
- 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 Medical Leave
Act (FMLA) will not count toward a break in service for purposes of
determining eligibility and vesting.
