Article 11. Transfer of Contributions Between Pension Plans

Section 11.01 Purpose

A pension is provided under this Plan for employees who would otherwise lack sufficient pension credit to be eligible for any pension because their years of employment were divided between Pension Plans or, if eligible for a pension, whose pension would be less because of such division of employment.  For these reasons, it is appropriate in some circumstances to permit the transfer of contributions between certain pension plans covering Employees.

Section 11.02 Identification of the Home Fund and Home Local Union

(a)        For the purposes of this Article 11, the Fund shall recognize as the “Home Fund” that fund which has executed the International Reciprocal Agreement for Sheet Metal Workers’ Pension Funds and which has adopted Exhibit B of the Reciprocal Agreement, and which was established in part by the Local Union in which an Employee holds membership or which first represented the Employee for the purposes of collective bargaining (“Home Local Union”).

(b)         The designation of a Home Fund may be changed:

(1)      by an Employee if he transfers to another Local Union which provides a Cooperating Pension Fund by giving notice both to his former Home Fund and to his new Home Fund; or

(2)      by any other Employee if he has earned at least one pension credit in the jurisdiction of a Local Union which provides a Cooperating Pension Fund by giving notice to his former and new Home Funds.

(c)        Upon request of an Employee designating a new Home Fund, a lump sum transfer from the former Home Fund to the new Home Fund may be made, provided the terms and conditions of such a transfer are agreed to by the Trustees of both such funds.  Nothing contained herein will limit the applicability of reciprocal pension credits under Article 10 or the Reciprocal Agreement.

Section 11.03 Cooperating Pension Funds

By resolution duly adopted, the Trustees recognize all other pension funds which have executed the Reciprocal Agreement and which have adopted Exhibit B of such Reciprocal Agreement as a Cooperating Pension Fund.

Section 11.04 Transfer of Contributions 

Each Cooperating Pension Fund shall collect and forward contributions to a traveling Employee’s Home Fund, at least quarterly, in accordance with the following:

(a)               All contributions required to be paid into this Fund on behalf of any traveling Employee working within its territorial jurisdiction unless it is determined that the credit given by the Home Fund of said Employee does not reflect the difference, if any, by which the contribution rate of this Fund is greater than the contribution in the Home Fund.  If such a determination is made, this Fund shall forward to the Home Fund an amount based on the lesser of the contribution rate of this Fund or the Home Fund.

(b)               Contributions shall only be forwarded to the Employee’s Home Fund if the transfer is authorized by the Employee in writing on a form provided for that purpose.

(c)               The Cooperating Fund shall at the same time provide to the Home Fund the traveling Employee’s employment records.  In making such transfers of contributions, the Cooperating Fund will act solely as the agent of the Home Fund and the Employee will continue to remain subject to the rules of eligibility of such Home Fund.

(d)               Additional conditions for the purposes of this section:

(1)               In the event an Employee’s Home Local Union’s collective bargaining agreement requires contributions only to the Home Fund, and the Employee works under the collective bargaining agreement of another local union jurisdiction that provides contributions to a local pension fund and this Pension Fund, then the local pension fund shall transfer to the Employee’s Home Fund the lesser of the contribution rate in effect in the Home Fund or the local pension fund.  In the event that the local pension fund of the jurisdiction in which he is working has a higher contribution rate than his Home Fund, then the difference shall be transferred to this Pension Fund.

(2)               In the event an Employee’s Home Local Union’s collective bargaining agreement requires contributions to the Home Fund and this Pension Fund, and the member works under a collective bargaining agreement in another local union jurisdiction which provides contributions to both a local pension plan and this Pension Fund, then the local pension plan shall transfer to the Home Fund the lesser of the contribution rate in effect in the Home Local Pension Plan or the local pension plan.  In the event the contribution rate in effect in the Home Local Pension Plan is less than the contribution rate of the local pension fund of the jurisdiction in which he is working, then the difference shall be transferred to this Pension Fund.

Section 11.05 Eligibility for Benefits and Service Credit

Upon transfer of contributions by a Cooperating Pension Fund, an employee shall receive credit in his Home Fund for any time worked under a collective bargaining agreement requiring contributions to the Cooperating Pension Fund as if such time were worked in the jurisdiction of the Home Fund.  For the purpose of computing a break in service, time worked for which contributions were due a Cooperating Pension Fund shall be considered to be time worked for credit under the Home Fund, provided that contributions for such time worked are transferred.

Section 11.06 Credit for Contributions

In determining the benefits payable under the Home Fund, credit shall be given for contributions forwarded to said fund by any Cooperating Pension Funds as well as those contributions received by the Home Fund directly.

Section 11.07 Payment of Pension

The payment of the pension shall be subject to the provisions of the Home Fund’s Plan rules and regulations.