Pension Benefit Guaranty Corporation (PBGC)
Your pension benefits under this Plan are insured by the
Pension Benefit Guaranty Corporation (PBGC), a Federal insurance agency. The
maximum benefit the PBGC guarantees is set by law.
How Benefits Can Be Delayed or Lost
There are certain situations where benefits can be
reduced, delayed or lost, including:
- You
or your Beneficiary do not file a claim for benefits properly or on time.
- You
or your Beneficiary do not furnish the information required to complete or
verify a claim.
- You
or your Beneficiary do not have your current address on file with the Fund
Office.
No Assignment of Benefits
Benefits under the Plan are for your benefit and the
benefit of your eligible survivors only. They cannot be sold, transferred,
assigned, or pledged to anyone; nor are benefits subject in any manner to
anticipation, alienation, encumbrance, or charge.
Qualified Domestic
Relations Orders (“QDRO”)
A QDRO is a court order or judgment that directs the Plan to pay benefits to your spouse, former spouse, child, or other dependent in connection with child support, alimony, or marital property rights and that satisfies the requirements described in Section 206(d)(3) of ERISA. You’ll be notified if the Plan ever receives a proposed QDRO with respect to your pension. For more information on QDROs, or to receive a free copy of the Fund’s procedures in determining whether an order is qualified or contact the Fund Office.
Amendment and Termination of the Plan
The Trustees have the authority to amend or terminate the
Plan at any time and for any reason. You will be notified if the Plan is
amended or terminated.
Your Disclosures to the Plan
If you provide false information to the Plan or commit
fraud, you may be required to indemnify and repay the Plan for any losses or
damages caused by your false statements or fraudulent actions.
This page includes only highlights of other important information. See the Details Tab for more information.
Pension Benefit Guaranty Corporation (PBGC)
Your pension benefits under this Plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a Federal insurance agency. A multiemployer plan is a collectively bargained pension arrangement involving two or more unrelated employers, usually in a common industry. The PBGC provides financial assistance through loans to plans that are insolvent. A multiemployer plan is considered insolvent if the plan is unable to pay benefits (at least equal to the PBGC’s guaranteed benefit limit) when due.
The maximum benefit the PBGC guarantees is set by law. Under the multiemployer program, the PBGC guarantee equals a Participant’s Years of Service multiplied by 100% of the first $11 of the monthly benefit accrual rate and 75% of the next $33. The PBGC’s maximum guarantee limit is $35.75 per month times a Participant’s Years of Service. For example, the maximum annual guarantee for a Retiree with 30 Years of Service would be $12,870.
The PBGC guarantee generally covers normal and early retirement benefits, disability benefits if you become disabled before the plan becomes insolvent, and certain benefits for your survivors. The PBGC generally does not cover any of the following:
- Benefits greater than the maximum guaranteed amount set by law;
- Benefit increases and new benefits based on plan provisions that have been in place for fewer than five years at the earlier of the date the plan terminates or the time the plan becomes insolvent;
- Benefits that are not Vested because you have not worked long enough;
- Benefits for which you have not met all of the requirements at the time the plan becomes insolvent; and
- Non-pension benefits such as health insurance, life insurance, certain death benefits, vacation pay, and severance pay.
For more information about the PBGC and the benefits it guarantees, contact the PBGC’s Technical Assistance Division, 1200 K Street, NW, Suite 930, Washington, DC 20005-4026, or call 326-4000 (not a toll-free number). TTY/TDD users may call the Federal relay service toll-free at (800) 877-8339 and ask to be connected to (202) 326-4000. Additional information about the PBGC’s pension insurance program is available through the PBGC’s website.
How Benefits Can Be Delayed or Lost
There are certain situations under which benefits can be reduced, delayed, or lost. Most of these circumstances are spelled out in the previous sections, but your benefits will also be affected in the following situations.
- You or your beneficiary do not file a claim for benefits properly or on time.
- You or your beneficiary do not furnish the information required to complete or verify a claim.
- You or your beneficiary do not have your current address on file with the Fund Office.
No Assignment of Benefits
Benefits under the Plan are for your benefit and the benefit of your eligible survivors only. They cannot be sold, transferred, assigned, or pledged to anyone; nor are benefits subject in any manner to anticipation, alienation, encumbrance, or charge. You may not use your benefits as collateral for a loan or receive any part of your benefits before your earliest retirement date. However, the Plan will comply with a Qualified Domestic Relations Order (QDRO) that gives someone else a right to a portion of your pension or any offset permitted under Section 401(a)(13) of the Internal Revenue Code.
Qualified Domestic Relations Orders (“QDRO”)
A QDRO is a court order or judgment that directs the Plan to pay benefits to your spouse, former spouse, child, or other dependent in connection with child support, alimony, or marital property rights and that satisfies the requirements described in Section 206(d)(3) of ERISA. You will be notified if the Plan ever receives a proposed QDRO with respect to your pension. For more information on QDROs, or to receive a free copy of the Fund’s procedures in determining whether an order is qualified, contact the Fund Office.
Marriage and Divorce
Your pension benefits may be affected if you marry or divorce. Please contact the Fund Office if you have questions about the effect of these events under the Plan.
Amendment and Termination of the Plan
The Trustees have the authority to amend or terminate the Plan at any time and for any reason. You will be notified if the Plan is amended or terminated.
If the Plan is ended, you will be fully Vested in any benefit you have accrued to the extent then funded. Plan assets will be applied to provide benefits in accordance with the applicable provisions of Federal law.
Your Disclosures to the Plan
If you provide false information to the Plan or commit fraud, you may be required to indemnify and repay the Plan for any losses or damages caused by your false statements or fraudulent actions. (Some examples of fraud include altering a check, knowingly cashing a voided check, and making false statements about your employment or marital status.) In addition, if the Plan makes payments as a result of false statements or fraudulent actions, the Fund Office may elect to pursue the matter by pressing criminal charges.
Direct Rollover Provisions
If you are entitled to a Lump Sum Payment Option (see How Benefits are Paid for details), you may elect to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan, as described in the Internal Revenue Code. Eligible retirement plans may include an individual retirement annuity, an annuity plan, a qualified trust, an annuity contract that accepts an eligible rollover distribution, Roth individual retirement account or annuity, or a retirement plan that is maintained by a state, state agency, or political subdivision of a state. This also applies to eligible rollover distributions to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a QDRO.
For a non-spouse Beneficiary, an eligible retirement plan is an individual retirement account or annuity, or a Roth individual retirement account or annuity that is established on behalf of the designated Beneficiary and that will be treated as an inherited IRA under the provisions of Section 402(c)(11) of the Internal Revenue Code.
If you have a small benefit payment that is eligible for rollover, and you do not elect the rollover, Federal law requires the Plan to withhold 20% of the total amount for federal income tax withholding.
Tax Considerations
Your monthly pension is not considered taxable income under federal tax laws until it is actually paid to you. Generally, you will have to pay federal income tax on the amount of your monthly pension benefit. In addition to federal taxes, you may be required to pay state or local income taxes on your pension benefit.