Summary Plan Description Table of Contents
- Introduction
- Funding Improvement Plan
- Pension Plan Highlights
- Beginning Work
- Leaving Work
- Getting Married or Divorced
- Preparing for Retirement
- Receiving a Pension
- Choosing a Payment Option
- Returning to Work
- In the Event of Death
- Administrative Information
- Definitions
- Table 1: Early Retirement Pension Reduction Factors for Benefits Accrued on or Before May 31, 2018
- Table 1A: Early Retirement Pension Reduction Factors for Benefits Accrued on or After June 1, 2018
- Table 2: Deferred Pension Early Retirement Reduction Factors
- Table 3: Actuarial Equivalent Reduction Factors for Pension Before Suspension of Benefits
Leaving Work
If your employment is interrupted before you are vested, you may lose your accumulated Vesting Service and Pension Credits. However, once you are vested, you will not lose your accumulated Vesting Service and Pension Credits. Certain interruptions may not result in a break in service. The break in service rules vary depending upon when the break occurs, as outlined below.
A one-year break in service occurs if you do not complete at least 435 Hours of Work in any calendar year.
In general, you incur a permanent break in service if you have five consecutive one-year breaks in service.
Breaks in Service
There are two types of breaks in service:
- One-year break in service; and
- Permanent break in service.
One-Year Break in Service
A one-year break in service is temporary and can be repaired. A one-year break in service occurs if you do not complete at least 435 Hours of Work in any calendar year. You can repair a break in service and restore your previous Vesting Service and Pension Credits if you subsequently earn a Year of Vesting Service before incurring a permanent break in service.
Permanent Break in Service
If you incur a permanent break in service before you are vested, you will lose your Years of Vesting Service and Pension Credits.
On and After January 1, 1986
On and after January 1, 1986, you incur a permanent break in service if you have five consecutive one-year breaks in service.
Example: Break in Service on and After January 1, 1986 Suppose Chris has the following work record: |
|||
|---|---|---|---|
| Year | Hours of Work in Covered Employment |
Years of Vesting Service |
One Year Break in Service |
| 1 | 1,650 | 1 | 0 |
| 2 | 1,200 | 1 | 0 |
| 3 | 300 | 0 | 1 |
| 4 | 0 | 0 | 1 |
| 5 | 0 | 0 | 1 |
| 6 | 0 | 0 | 1 |
| 7 |
0 |
0 | 1 |
| Total | 3,150 | 2 | 5 |
Example: Break in Service on and After January 1, 1986 In the previous example, Chris has two Years of Vesting Service and five consecutive one-year breaks in service at the end of year 7. Chris incurs a permanent break in service at the end of Year 7 (the fifth one-year break); because he has five consecutive one-year breaks in service. Therefore, in the previous example, his previous Years of Vesting Service, Pension Credits, and total contributions are cancelled. Suppose instead, Chris returned to employment in year 7 and completed 500 Hours of Work, and his work record is: |
|||
| Year | Hours of Work in Covered Employment |
Years of Vesting Service |
One Year Break in Service |
| 1 | 1,650 | 1 | 0 |
| 2 | 1,200 | 1 | 0 |
| 3 | 300 | 0 | 1 |
| 4 | 0 | 0 | 1 |
| 5 | 0 | 0 | 1 |
| 6 | 0 | 0 | 1 |
| 7 |
500 |
1 | 0 |
| Total | 3,650 | 3 | 4 |
| In this example, Chris returned to work in year 7 and his consecutive one-year breaks were less than five. By returning to Covered Employment and working 500 Hours of Work in year 7, his participation, Pension Credits, Years of Vesting Service, and contributions are reinstated. | |||
January 1, 1976 through December 31, 1985
During the period January 1, 1976, and December 31, 1985, you incur a permanent break in service when your consecutive one-year breaks equal or exceed your Years of Vesting Service.
January 1, 1972, through December 31, 1975
During the period January 1, 1972, and December 31, 1975, you incur a permanent break in service if you do not earn a Pension Credit in any calendar year. However, if you retire after January 1, 1996, and have worked at least 500 hours in Covered Employment during a calendar 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 above.
Grace Periods
You must notify the Trustees if you will be absent due to any of the non-work periods listed in this section.
Certain non-work periods may be considered as grace periods to avoid a break in service. 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 Work in a calendar year. 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 in this section. The following periods are considered grace periods under the Plan.
Parenting Leave
You will not incur a break in service if you were absent from work due to:
- Your pregnancy;
- Childbirth, adoption, or temporary placement before an adoption; or
- Child care immediately following childbirth or placement.
You will be credited with the Hours of Work that you would have otherwise earned (or up to eight hours per day) if you were not absent from employment, up to a maximum of 501 Hours of Service. The Hours of Work will be credited only in the calendar year when the absence begins or immediately following the calendar year to prevent a break in service. These Hours of Service will be credited solely for determining whether a one-year break in service has occurred.
Family and Medical Leave Act (FMLA)
Any leave granted under the Family and Medical Leave Act (FMLA), for up to 12 weeks, will not be counted toward a break in service for the purposes of determining eligibility, Vesting Service, and Pension Credit.
Military Leave
Time spent in qualified military service will be considered Hours of Service to prevent a break in service. See page 7 for more information about military service.
Disability
If you are totally disabled based on medical evidence, you will not incur a break in service because of that disability. You must provide written notice of your disability to the Trustees.
Deferred Pension
If you leave Covered Employment and meet the eligibility requirements, you may be eligible for a Deferred Pension. For information about this benefit, refer to page 26.