• SPD Table of Contents
  1. Introduction
  2. Funding Improvement Plan
  3. Pension Plan Highlights
  4. Beginning Work
  5. Leaving Work
  6. Getting Married or Divorced
  7. Preparing for Retirement
  8. Receiving a Pension
  9. Choosing a Payment Option
  10. Returning to Work
  11. In the Event of Death
  12. Administrative Information
  13. Definitions
  14. Table 1: Early Retirement Pension Reduction Factors for Benefits Accrued on or Before May 31, 2018
  15. Table 1A: Early Retirement Pension Reduction Factors for Benefits Accrued on or After June 1, 2018
  16. Table 2: Deferred Pension Early Retirement Reduction Factors
  17. Table 3: Actuarial Equivalent Reduction Factors for Pension Before Suspension of Benefits

Preparing for Retirement

Thinking About Retirement

Preparing for your retirement takes planning. Regardless of your retirement plans, you will want to be financially comfortable. To maintain your current standard of living during retirement, experts say you may need between 70% and 80% of your pre-retirement income.

Retirement income generally comes from three sources: Social Security, personal savings, and pension benefits. Understanding how all three of these sources work can help you plan for a financially secure retirement.

The information in this section is designed to help you think about what you may need during retirement.

Your Social Security Benefit

Here are a few facts about Social Security benefits to keep in mind:

• Social Security benefits will not change your pension benefits. Your pension benefit from the Plan, and any other plans (excluding offset plans) from which you may receive a pension benefit, are in addition to any benefits you or your spouse may receive from Social Security.
• Social Security benefits replace a higher percentage of income for retiring Participants at lower pay levels. A retiring Participant with annual earnings of $35,000 could expect Social Security to replace approximately 33% of pre-retirement income. Reaching the 70% to 80% income replacement levels will require help from the Participant’s pension benefits and personal savings.
• The government has gradually increased the Social Security full retirement age for people born after 1937. Full retirement age is the age at which you can collect full retirement benefits from Social Security without any reduction for early retirement. For example, if you were born in 1960 or later, full Social Security benefits will be payable to you at age 67—not age 65. If you are planning to retire before your Social Security full retirement age, you will receive a reduced Social Security benefit (unless you wait to receive Social Security). Retirement benefits from Social Security are not payable before age 62.

To receive an estimate of your Social Security benefits, contact the Social Security Administration at www.ssa.gov

The remainder of this section explains the process for receiving your pension benefit.

Applying for Your Pension Benefit

Three things need to happen before you are eligible to start your pension benefit:

• You must apply for benefits;
• The Trustees must approve your application; and
• You need to stop working in Covered Employment.

You should file a completed application form and supporting documentation with the Fund Office before you want your pension payments to begin. Your application for a pension must be in writing on a form provided by the Fund Office. Your spouse or other beneficiary must apply in the event of your death. Return the completed application to the Fund Office.

Pension payments generally begin on the first day of the month following the date your pension application is approved. Please file your pension application in advance of the month you want pension payments to begin. Payments of benefits may not be delayed later than 60 days after the last of the following dates:

• End of the calendar year in which you reach Normal Retirement Age;
• End of the calendar year in which you retire;
• Date you file a claim for benefits; or
• Date the Trustees were first able to determine your entitlement to or the amount of, the pension.

You may elect in writing to postpone your benefits; however, you must begin receiving pension benefits by your required beginning date, which is the April 1 of the calendar year following the calendar year in which you reach age 70½ (age 72 if you turned 70½ after December 31, 2019). However, if your Required Beginning Date is age 72, you may elect to voluntarily start benefits on or after April 1 of the calendar year following the calendar year in which you reach age 70½ even though you have not retired.

If you can be located and you have not filed a claim for benefits, the Trustees will begin payment of your benefits on your required beginning date. If your Annuity Starting Date is after your normal retirement age, your benefit will be increased for each complete calendar month that you are not in disqualifying employment and payment was not made.

Whenever administratively possible, you will receive a decision from the Board of Trustees on your claim for benefits within 90 days (45 days for a Disability Pension), unless special circumstances require an extension of time for processing. If an extension is required, you will receive written notice of the extension within the initial determination period. The extension notice will include the reasons for the extension and the date by which a decision will be made. The extension of time will not exceed 90 days (45 days for a Disability Pension) after your application is received.

You may assume your claim has been denied and may proceed to appeal the denial if you do not receive any notice from the Trustees within the 90-day or 45-day period, or a notice of a delayed decision within such 90-day or 45-day period.

The Trustees may delegate the obligation to review and decide claims to any individual, committee or entity.

If Your Application for a Non-Disability or Disability Pension is Denied

If you disagree with a denial or benefit amount, you or a person you authorize to act as your representative may appeal the decision in writing (along with any supporting documentation) within 60 days (180 days for a Disability Pension) of the date you receive the denial notice. The appeal should be sent to the Board of Trustees at the Fund Office. If you choose to authorize a representative to appeal a denied application on your behalf, the authorization must be provided to the Trustees in writing.

If your claim is denied, you will receive a written statement, which will include:

• The reason(s) for the denial;

• Reference to all related provisions of the Plan or other documents used to make the decision;

• A description of the Plan’s review procedures and applicable time limits.

• A description of additional information needed to reconsider your application and why the information is needed;

• A statement of your right to bring a civil action under ERISA Section 502(a), including the Plan’s applicable time limits for pursuing such action and the date such limits expire;

• A detailed explanation of the steps you can take to appeal the decision; and

• For a Disability Pension application, including a retroactive termination of a Disability Pension occurring on or after April 1, 2018, a copy of any internal rule, guideline, protocol, or similar criteria that was relied on to make the determination, or a statement that a copy of such rule, guideline, protocol or standard or other similar criteria of the Plan is available to you at no cost upon request or do not exist;.

• If the adverse benefit determination for a claim, including a Disability occurring on or after April 1, 2018, is based on a medical necessity or experimental treatment, or similar exclusion or limit, either an explanation of the scientific or clinical judgement for the determination (applying the Plan’s terms to your medical circumstances) or a statement that such an explanation will be provided free of charge upon your request;

• An explanation of the basis for disagreeing with or not following:

  • The views you presented to the Plan of the health care and vocational professionals who treated or evaluated you;

  • The views of medical or vocational experts whose advice was obtained on behalf of the Pan in connection with your adverse benefit determination, regardless of whether the advice was relied upon in making the benefit determination; and

  • A disability determination made by Social Security Administration that you presented to the Plan.

• If your application for benefits is denied, you (or your authorized representative) have the right to:

• Submit additional proof of entitlement to benefits; and

• Examine any Plan documents that are related to your application (regardless of whether it was relied upon) free of charge; and

• A full, fair and timely review by the Trustees of all information relevant to your claim. A document, record, or other information is relevant if it:

  • Was relied upon by the Plan to make the decision;

  • Was submitted, considered, or generated as part of the appeal process (regardless of whether it was relied upon); or

  • Demonstrates compliance with the claims processing requirements.

The Trustees may require you to submit additional written information, or to appear before the Trustees for an oral examination, or both. If you are required to appear before the Trustees, the hearing will be held at the next regular Trustees’ meeting or at a time determined by the Trustees with reasonable notice of the date and place given to you. After a full and fair review, the Trustees will send you a written notice of their decision within 60 days (45 days for a Disability Pension) after your appeal is received, or 120 days (90 days for a Disability Pension) under special circumstances, but no later than 120 days after your request for review is received. You will receive written notice of the extension before the extension begins, and for Disability Pension claims, within the 45-day period.

The appeal decision will be provided in a culturally and linguistically appropriate manner containing the following:

• The reason(s) for the decision;

• Refer to specific Plan provisions on which the decision is based;

• Notify you of your right to access and copy (free of charge) all documents, records, and other information relevant to your application;

• Notify you of your right to bring a civil action under ERISA Section 502(a);

• Notify you of additional voluntary appeal procedures offered by the Plan, if any;

• An explanation of the basis for disagreeing with or not following:

  • The views you presented to the Plan of the health care and vocational professionals who treated or evaluated you;

  • The views of medical or vocational experts whose advice was obtained on behalf of the Pan in connection with your adverse benefit determination, regardless of whether the advice was relied upon in making the benefit determination; and

  • A disability determination made by Social Security Administration that you presented to the Plan;

• If the initial determination is based on medical necessity or appropriateness, the Board of Trustees (or appeals committee) must consult with a medical professional who is not the same person (or his/her subordinate) who was consulted with during the initial review of your claim;

Before the Trustees issue a denial on an appeal, the Trustees will provide you – free of charge – with any new or additional rationale or evidence considered, relied upon, or generated by the Plan, insurer, or by any person making the benefit determination. This information is provided as soon as possible and sufficiently in advance of the date on which the notice of your appeal denial is required to be provided to you. This is to give you a reasonable opportunity to respond to this evidence prior to the notification date.

The decision will be sent to you within five days from the date the decision was rendered and written in a clear and understandable manner. You must exhaust the Plan’s procedures for review of a denial of benefits before you may bring a lawsuit or other administrative action for benefits. The Trustees’ decision is final and binding on all parties to the decision. The Plan will notify you in the event of a denial how long you have to bring a lawsuit and how to access copies of information relevant to your claim.

Benefit Payment to an Incapacitated Person

If the Trustees determine that you or your beneficiary are unable to care for your or his or her affairs due to a mental or physical incapacity, the Trustees may make payment directly for your or your beneficiary’s support, maintenance, and welfare. In addition, the Trustees may make payment 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.

The Trustees have no obligation to ensure the funds are used or applied for any purpose. 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, unless, before payment, a claim has been made by a legally appointed guardian, committee, or other legal representative appropriate to receive the payments on your or your beneficiary’s behalf.

Former Health Care Pension Benefit and Special Supplement

Before June 1, 1998, the Plan included a Health Care Pension and Special Supplement to help pay for some retiree health care costs. However, effective June 1, 1998, retiree health benefits began being funded through the Welfare Fund and therefore no additional Health Care Pension or Special Supplement benefits were accrued under the Pension Plan. Any Health Care Pension or Special Supplement that you earned before June 1, 1998, will be paid to you when you retire with the intent that you use it to purchase retiree health care. Please note that any Health Care Pension and Special Supplement is available as a Single Life Pension or, for married Participants, as a 50% or 75% Participant and Spouse Pension.

Limitation Period and Required Venue Provisions for Judicial Actions

Judicial actions affecting the Plan or Trustees must be brought in the United States District Court for the Northern District of Illinois, Eastern Division, within one year of either the date of final decision under the Plan's appeal procedures, the date a final decision was required under the appeals procedures if no final decision was made or the date of final Trustee action in a matter not involving a claims appeal. The Plan also provides that the standard for review shall be whether the Trustees acted arbitrarily and capriciously.

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