 |
 |
 |
 |
 |
 |
SUMMARY PLAN DESCRIPTION
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Normal Retirement Age means age 65 or the age you reached Vested Status, if later. |
Normal Retirement Pension Amount
The monthly amount of your Normal Retirement Pension is calculated by adding the following three amounts:
1. Pre-2000 Portion.
The monthly amount determined as if you reached Normal Retirement Age and began receiving your pension before January 1, 2000.
This portion of your pension benefit is based on your years of Pension Credit and the number of Increments that your Employer contributed to the Plan. Contributing Employers pay a Contribution Rate set in the Collective Bargaining Agreement (or other agreement) your Employer made with the Union. The Employer pays the Contribution Rate for each hour you work. The Contribution Rate contains a certain number of Increments, determined by dividing the Increment Rate into the Contribution Rate. The monthly pension benefit for each year of Pension Credit is based on the number of Increments in the Contribution Rate your Employer was obligated to contribute on your behalf. From time to time, the Increment Rate was increased so an increase in Contribution Rate was required to maintain the same monthly pension benefit.
For example, in 1991, Increments were based on 13¢ cent rates, so a Contribution Rate of $1.30 per hour equaled 10 Increments. In 1995, the Increment Rate changed to 15¢. So your Employer had to have a Contribution Rate of $1.50 for your benefit to continue to be worth 10 Increments.
The hourly Increment Rate amounts are as follows:
|
Effective
Date of Increment Rate |
Increment
Rate |
|
January
1, 1998 |
$0.17 |
|
January
1, 1997 |
$0.16 |
|
July
1, 1995 |
$0.15 |
|
January
1, 1991 |
$0.13 |
|
June
1, 1979 |
$0.12 |
See Appendix A for more information on
Accrued Benefit Rates before January 1, 2001.
For
Example:
Tom’s Employer agreed to contribute two Increments for each hour
employees worked and John’s Employer agreed to contribute five Increments for
each hour employees worked. The hourly Contribution Rate for each Employer is
outlined in the table below:
|
Amount
Contributed Per Hour Worked |
||
|
Date
of Contributions |
Tom’s
Employer – 2
Increments |
John’s
Employer – 5
Increments |
|
January
1, 1998 and After |
$0.34 |
$0.85 |
|
January
1, 1997 to January 1, 1998 |
$0.32 |
$0.80 |
|
July
1, 1995 to January 1, 1997 |
$0.30 |
$0.75 |
|
January
1, 1991 to July 1, 1995 |
$0.26 |
$0.65 |
|
June
1, 1979 to January 1, 1991 |
$0.24 |
$0.60 |
See
the Accrued Benefit Rate Tables in Appendix A.
On or after January 1, 2000, your monthly pension benefit is based on your Employer’s Contribution Rate(s) made on your behalf during each calendar year times your Contribution Hours for the year. The Collective Bargaining Agreement (or other agreement) will specify an hourly Contribution Rate your Employer is required to contribute on your behalf. Generally, the Employer must contribute that amount for each hour you work. Each hour for which contributions are required is called a Contribution Hour. The following two amounts are added together to determine your accrued benefit for the calendar year:
§ The total contributions made on your behalf for up to 1,400 of your Contribution Hours at the highest Contribution Rate in effect for you that year multiplied by 24 and divided by 1,400.
§ The total contributions for hours exceeding 1,400 multiplied by 0.6%.
Each year will have its own earned monthly benefit, depending on the hours you work and the Employer’s Contribution Rate. The monthly benefits you earn for each year after 1999 are added together to determine this portion of your monthly Normal Retirement Pension.
3. Past Service Pension Credit Portion. This portion is equal to $10 for each year of your Past Service Pension Credit if your Employer’s Contribution Date is on or after January 1, 2000, in accordance with certain rules as described in the Plan Document.
For the rules regarding eligibility and calculation of Normal Retirement Pensions before January 1, 2000, you should contact the Pension Benefits Department.
| For Example | |
| Bill,
a Construction Employee, retires at the beginning of 2002. He earned 31
years of Pension Credit from 1971 through 2001. Bill’s Employer was
contributing 10 Increments for each hour of Bill’s employment through
1999. Bill worked 1,400 Hours in 2000 and 2001. Bill’s Normal
Retirement Pension is determined in two parts – his Pre-2000 Portion
and his Post-1999 Portion. Please note that Bill is not eligible for a
Past Service Pension Credit Portion.
Pre-2000 Portion The
monthly Accrued Benefit per year of credit at 10 Increments is $37.60 at
age 65 (see Accrued Benefit Rates
for Construction Employees Table. |
|
| Accrued Monthly Benefit Years of Pension Credit earned before 2000 Pre-2000 Monthly Benefit Portion |
$37.60 |
|
Post-1999 Portion |
|
|
Year 2000: 1,400 Hours Worked at
$1.79 Contribution Rate x 1,400
|
$ 2,506.00 $ 3,080.00 |
|
Year 2000 Monthly Benefit Year 2001 Monthly Benefit Post-1999 Benefit Portion |
$
42.96 |
| Total Monthly Normal Retirement Pension | |
|
Pre-2000 Portion Post-1999 Portion Total Monthly Benefit |
$ 1,090.40 |
| *Your Normal Retirement Pension benefit may be subject to further reductions depending on the form of payment you select. Benefit amounts are rounded up to the next highest dollar. | |
| For
Example: |
|
|
Jim,
a Construction Employee, retires on January 1, 2010. He worked for the
same employer for 25 years from January 1985 through 2009. Jim’s
Employer’s Contribution Date is January 1, 2004. Since Jim’s
Employer’s Contribution Date is after 1999, Jim’s Normal Retirement
Pension is determined in two parts – his Past Service Pension Credit
Portion and his Post-1999 Portion. Past
Service Pension Credit Portion
Jim
has 19 years of Past Service for his work from 1985 through 2003 before
his Employer’s January 1, 2004 Contribution Date. Jim is entitled to one
year of Past Service Pension Credit for each year of Future Service
Pension Credit he earned on a one-for-one basis, up to a maximum of 10
years. Because Jim earned six years of Future Service Pension Credit for
his work from 2004 through January 1, 2010, he is entitled to six years of
Past Service.
|
|
|
Years
of Past Service |
6 |
Post-1999
Portion
The
Post-1999 Portion of Jim’s benefit will be based on his Employer’s
Contribution Rate of $2.20 times his Contribution Hours for the year, up
to 1,400 hours. However, in 2005 and 2006, Jim worked 1,800 hours.
Therefore, two amounts will be used to calculate the Post-1999 Portion of
his benefit, as follows:
|
|
| Monthly Benefit for First 1,400 Hours Per Year | |
|
Hours Worked Contribution Rate Monthly Benefit |
1,400 |
| Monthly Benefit for Excess Hours | |
|
Year 2005: Hours Worked in excess of 1,400
(1,800 – 1,400) Year 2006: Hours Worked in excess of 1,400 (1,800 - 1,400) Total Contribution Hours Exceeding 1,400 Contribution Rate Total Multiplied by Monthly Benefit for Excess Hours |
400 |
| Total Monthly Post-1999 Portion | |
|
Monthly
Benefit for First 1,400 Hours Monthly Benefit for Excess Hours Post-1999 Portion |
$ 316.80 |
|
Total
Monthly Normal Retirement Pension |
|
|
Past Service Pension Credit Portion Post-1999 Portion Total Monthly Benefit |
$ 60.00 |
|
*
Example assumes that the Contribution Rate remains at $2.20. **
Your Normal Retirement Pension benefit may be subject to further
reductions depending on the form of payment you select. Benefit amounts
are rounded up to the next highest dollar. |
|
Additions to Your Pension for Pre-2000 Past Service
The amount of your pension may be increased for some of your Past Service Pension Credit earned before January 1, 2000 if you have:
§ Less than 30 years of Future Service Pension Credit as of December 31, 1999, and
§ 30 or more years of Future Service Pension Credit when you are eligible for and elect to begin receiving a pension benefit from the Plan.
The amount of the increase is 1% of the Pre-2000 Portion of your pension for each year of Past Service Pension Credit that was not used in calculating the Pre-2000 Portion of your pension benefit. For Participants with less than 30 years of Future Service Pension Credit as of December 31, 1999, the Plan takes into consideration only as much Past Service Pension Credit as needed to total 25 years of Pension Credit, when added to the Future Service Pension Credit earned as of December 31, 1999. Any Past Service Pension Credit used in calculating the Pre-2000 Portion of your pension will not be included.
| For
Example: |
|
Chris
retires on January 1, 2008 with 30 years of Future Service Pension Credit.
Since Chris had 22 years of Future Service Pension Credit and five years
of Past Service Pension Credit as of December 31, 1999, Chris’ pension
benefit will include an additional amount for her Past Service Pension
Credit earned before January 1, 2000 that was not used in calculating her
pre-2000 pension amount. Three
of her years of Past Service Pension Credit were used to calculate the
Pre-2000 Portion of her pension amount of $1,700 (22 years of Future
Service Pension Credit + 3 years of Past Service Pension Credit = 25 year
maximum). Since Chris has two years of Past Service Pension Credit that
were not used in calculating the Pre-2000 Portion of her pension amount,
$34 (1% of $1,700 x 2, for each of her unused years of Past Service
Pension Credit) will be added to the Pre-2000 Portion of her pension, for
a total Pre-2000 Portion amount of $1,734. Remember,
Chris’ total monthly Normal Retirement Pension includes her Pre-2000
Portion amount and her Post-1999 Portion amount. Click
here for more information on how to calculate the amount of the
Post-1999 Portion.
|
Early Retirement Pension
Eligibility for an Early Retirement Pension
You may receive an Early Retirement Pension if you have reached age 55 and you have:
§ At least 15 years of Pension Credit and at least 12 months of Future Service Pension Credit, or
§ At least 10 years of Pension Credit (five years of which are Future Service Pension Credit) or
§ At least 10 Years of Service.
Your early retirement date may be delayed by six months for each calendar quarter you work at least one hour in employment in the Sheet Metal Industry that is not covered by a collective bargaining agreement. The delay may be waived if you return to Covered Employment and earn a number of Pension Credit months equal to the period of time you worked in employment in the Sheet Metal Industry that is not covered by a collective bargaining agreement. The waiver applies only to your first return to work after such employment. Call the Pension Benefits Department if you have questions about delayed early retirement.
Early Retirement Pension Amount
Because your Early Retirement Pension will generally be paid over a longer period of time, your monthly benefit is reduced. Your Early Retirement Pension is calculated like your Normal Retirement Pension, then reduced by the following percentages, based on the number of years and months you are younger than age 65 when you retire:
· ¼ of 1% (.0025) for each month (3% per year) from age 65 to age 62, and
· ½ of 1% (.005) for each month (6% per year) from age 62 to 55.
| For Example | |
|
Jim
is eligible for and decides to retire with an Early Retirement Pension at
age 58, exactly seven years before age 65. Jim’s Normal Retirement
Pension is $720 per month. To calculate Jim’s Early Retirement Pension: |
|
|
Jim's
Normal Retirement Pension Subtract the following two amounts: $720 x 9% (3% per year between age 65 and 62) $720 x 24% (6% per year between age 62 and 58) Early Retirement Pension |
$ 720.00 |
|
*
Benefit amounts are rounded up to the next highest dollar. |
|
Special Early Retirement Pension
Eligibility for a Special Early Retirement Pension
You may receive a Special Early Retirement Pension as early as age 55 if you satisfy certain conditions:
§ You meet the requirements for an Early Retirement Pension, and
§ You are a Non-Construction Employee, or
§ You are a Construction Employee and have at least 3,500 Hours of Work in Covered Employment within the five-year period before:
The year in which you apply for the Special Early Retirement Pension, or
If earlier and you retire on or after January 1, 1997, the year in which you begin to receive pension benefits with no reduction for age from another multiemployer defined benefit pension plan that has a Reciprocal Agreement with this Plan.
Your early retirement date for the Special Early Retirement Pension may be delayed under the same rules applicable to Early Retirement Pensions.
Special Early Retirement Pension Amount
Your Special Early Retirement Pension will be reduced only if you are younger than age 62. Your Special Early Retirement Pension is calculated like your Normal Retirement Pension, then reduced by:
§ ¼ of 1% (.0025) for each month (3% per year) from age 62 to 60, and
§ ½ of 1% (.005) for each month (6% per year) from age 60 to 55.
| For Example | |
|
Jack
is eligible and decides to retire with a Special Early Retirement Pension
at age 58 and 2 months. Jack’s Normal Retirement Pension is $860 per
month. To calculate Jack’s Special Early Retirement Pension: Jack’s Normal Retirement Pension
$ 860.00 |
|
|
Jack's
Normal Retirement Pension Subtract the following amount: $860 x 6% (1/4% x 24 months younger than age 62 but older than age 60) $860 x 11% (1/2% x 22 months younger than age 60) Special Early Retirement Pension |
$860.00 -$ 51.60 |
|
*
Benefit amounts are rounded up to the next highest dollar. |
|
55/30 Pension
Eligibility for a 55/30 Pension
The 55/30 Pension provides you with an unreduced pension at age 55. If you retire before January 1, 2006, you are eligible for a 55/30 Pension if you have reached age 55 and:
§ Your Employer contributed at the 55/30 Rate on your behalf, beginning no later than December 31, 2003,
§ You meet the requirements for a Special Early Retirement Pension,
§ You have 30 years (360 months) of Future Service Pension Credit,
§ You have 24 months of Future Service Pension Credit at the 55/30 Rate, and
§ You have at least 60 months out of the last 120 months of Future Service Pension Credit in a position that is or becomes subject to the 55/30 Rate before your retirement.
If you retire on or after January 1, 2006, you are eligible for a 55/30 Pension if you have reached age 55 and you:§ Meet the requirements for a Special Early Retirement Pension,
§ Have 30 years (360 months) of Future Service Pension Credit,
§ Have 3,500 Hours of Work at the 55/30 Rate within the five calendar year period immediately before the calendar year in which you apply for your pension, and
§ Have at least 60 months out of the last 120 months of Future Service Pension Credit in a position that is or becomes subject to the 55/30 Rate before your retirement.
If you are working under a 55/30 Rate, you will earn pension benefits based on 80% of that rate.
| For Example: |
| Pete’s
Local Union adopts a 55/30 rate of $4.00 per hour. After adoption of the
$4.00 per hour rate, Pete will earn monthly benefits on a Contribution
Rate of $3.20 per hour (80% of $4.00). The remaining $0.80 of the 55/30
Rate is used to eliminate any reduction for early retirement for those
qualifying for the 55/30 Pension. |
If you work at least one hour in employment in the Sheet Metal Industry that is not covered by a collective bargaining agreement at any time after your Contribution Date, you will not be eligible for a 55/30 Pension. However, your ineligibility may be waived if you return to Covered Employment and earn a number of months of Pension Credit that equals the number of months during which you were employed for at least one hour in employment in the Sheet Metal Industry that was not covered by a collective bargaining agreement.
55/30 Pension Amount
The 55/30 Pension is equal to the amount of the Normal Retirement Pension. It is not reduced for age if you retire before age 65.
| The 55/30
Rate is a rate adopted by your participating Local Union when it adopts
the 55/30 Pension. To qualify, your Local Union must adopt the
55/30 Pension and pay the increased rate before December 31, 2003.
After the 55/30 Rate is adopted, 80% of the Contribution Rate paid goes to pension accrual and 20% goes to cover the cost of unreduced benefits. |
Disability Pension
See the section Becoming Disabled for information about the Disability Pension and the Industry-Related Disability Pension.
Pro Rata Pension
The Plan participates in the Sheet Metal Workers’ International Pension Reciprocity Agreement. This agreement may enable you to meet the eligibility requirements for a pension in the event that:
· You would otherwise lack sufficient credit to be eligible for any pension because your years of employment were divided between pension plans, or
· If you are eligible for a pension, your pension would be less because of the division of employment.
Under the Pro-Rata part of the agreement, you may be entitled to use Pension Credit earned under another pension plan that participates in the Reciprocity Agreement to determine if you have reached Vested Status or to qualify for a pension under this Plan. When you apply for pension benefits, you should let the Pension Benefits Department know that you are claiming Pension Credit earned under another plan that has a Reciprocal Agreement with this Plan.
In some instances contributions made to one plan may be transferred to the other plan. Check with your Local Union or the Pension Benefits Department before you request a transfer of contributions.
Eligibility for a Pro-Rata Pension
You are eligible for a Pro Rata Pension if you:
§ Would be eligible for any type of pension under this Plan (other than a Pro Rata Pension) if your combined Pension Credit were treated as Pension Credit under this Plan,
§ Have at least one year of Pension Credit under this Plan based on hours of employment for which contributions were payable to this Plan, and
§ Are eligible for a Pro Rata Pension from this Plan and at least one Related Plan.
Pro Rata Pension Amount
The amount of the Pro Rata Pension payable by each plan that has signed the Reciprocal Agreement will be based on the Pension Credit and benefit levels you earn under each plan.