Summary Plan Description

Normal Retirement Pension

You can retire on a Normal Retirement Pension if you are a Participant who has reached age 65 and have either:

  • Achieved Vested Status (completed at least five Years of Service) or;
  • Have earned:
    • 10 or more years of Pension Credit, including at least five years of Future Service Credit; or
    • 15 or more years of Pension Credit, including at least one year of Future Service Credit, and have attained age 55.

You must be considered “retired” under the Plan to receive a pension, meaning you cannot be engaged in any Disqualifying Employment or perform any work in the Sheet Metal Industry as of the date you want benefits to start.

How a Normal Retirement Pension Benefit is Calculated

Normal Retirement Pension benefits earned before 2014 might be different than those earned during and after 2014. The combined amount of your benefit earned prior to 2014 and the amount earned during and after 2014 equals your total Normal Retirement Pension benefit.

For hours worked on or after January 1, 2014, your Normal Retirement Pension benefit is calculated using a Variable Benefit Accrual Rate (VBAR) formula, a percentage tied to the Fund’s average investment return over a three-year period. See the Details Tab for VBAR formula calculation examples. In addition, the benefit formula takes other factors into account when determining the amount of the Normal Retirement Pension benefit you earn each year:

  • Contribution Hours: The total number of hours for which Plan contributions are required to be made for your work in Covered Employment.
  • Contribution Rate: The hourly rate required to be paid by your Employer for each hour you work in Covered Employment.
  • Benefit Rate: The Contribution Rate less the 55/30 Rate and used to determine the amount of your Normal Retirement pension benefit if:
    • you are working under a CBA (or similar agreement) that qualifies you for a 55/30 Pension, the Benefit Rate is equal to your Contribution Rate MINUS the portion of the Contribution Rate attributable to the 55/30 Rate. Currently, the 55/30 Rate is 30% of your Contribution Rate, so 70% of your Contribution Rate is used to determine your Normal Retirement Pension benefit.
    • If you are not working under a 55/30 Rate, your Contribution Rate will be equal to your Benefit Rate.

The Fund uses the three factors discussed above—VBAR, Contribution Hours, and Contribution Rate—to determine the portion of your Normal Retirement Pension benefit for each year you work in Covered Employment. Then, the Fund adds up the amounts determined by the formula to arrive at a total monthly Normal Retirement Pension benefit.

Monthly Benefit Accrued under the VBAR Formula
Contribution HoursXContribution RateX55/30 Offset* (if applicable)XVariable Benefit Accrual Rate=Monthly Normal Retirement Pension Benefit

*If a 55/30 Rate applies, 70% of your Contribution Rate (referred to as the Benefit Rate) is used in the calculation.

This page includes only highlights of the Plan’s normal retirement pension benefit rules. See the Details Tab for more information.

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