350 Seventh Ave., Suite 1800 399 Knollwood Rd, Suite 310
New York, NY 10001-5013 White Plains, NY 10603
Phone: 212-419-1500 Phone: 914-328-0366
Fax: 212-419-1510 Fax: 914-682-9128
CONSULTANTS AND ACTUARIES
Summit Actuarial Services, LLC
11 Racquet Road
Newburgh, NY 12550
845-567-6090
AUDITOR
Moore Stephens, PC
340 North Avenue
Cranford, NJ 07016
908-272-7000
PENSION FUND LOCAL 445 CONSTRUCTION PLAN
Dear Participant:
We are pleased to provide you with this Summary Plan Description for the Pension Fund (the “Plan”). This booklet presents a summary of valuable information about your pension benefit, including:
·When you can become a participant,
·What the requirements are for eligibility,
·How benefits are determined,
·When you can lose credit you have earned towards a pension benefit, and
·When you become Vested in the plan and entitled to a non-forfeitable benefit.
It’s important that you understand how the Plan operates. Therefore, we urge you to read this booklet very carefully. Please understand that no general explanation can adequately give you all the details of the Plan, and your full rights can be determined only by referring to the full text of the Plan document, which is available at the Fund Office. If there is any conflict between the wording in this booklet and the wording in the official Plan document, the Plan document will govern.
Since some of the provisions of the Plan may also apply to members of your immediate family, we encourage you to read this booklet with them so that they are aware of your pension benefit as well as any survivor benefit to which they may become entitled.
Every effort has been made to provide you with a clear description of the Plan in plain, everyday language. However, certain words and phrases are technical. Therefore, if you still have questions after reading this booklet, please contact the Fund Office.
The Pension Fund was established as the result of Collective Bargaining Agreements between Contributing Employers (“Employers”) and the Union. The Pension Fund consists of two retirement plans: the Local 445 Construction Plan and the Local 445 Freight Plan. These Plans are completely financed by Employer Contributions. Employees may not contribute to the Plan.
These Plans are administered by a Board of Trustees consisting of representatives of the Union and representatives of the Contributing Employers. They serve without compensation. The Pension Fund is a separate trust fund established for the purpose of paying benefits provided under the Plans. The Plans have been qualified by the Internal Revenue Service.
You are covered by a Plan if you are an Employee working under a Collective Bargaining Agreement between your Employer and the Union providing for contributions to this Pension Fund, or if you are an Employee of the Pension Fund, the Union, the Local 445 Welfare Fund, or any affiliated Fund which has signed a participation agreement with the Plan providing for contributions to the Pension Fund on your behalf. When this booklet refers to “you”, it assumes that you are an Employee covered by the Plan.
This booklet describes the provisions of the Pension Fund Local 445 Construction Plan in effect as of January 1, 2009. Your benefit, however, is calculated under the Plan provisions in effect at the time you leave Covered Service. Therefore, if you left Covered Service prior to January 1, 2009, some of the benefits described in this booklet may not apply to you. If you fall into this category, the Fund Office can answer any questions about the provisions of the Plan in effect when you last worked in Covered Service.
Please consult the Summary Plan Description for the Pension Fund Local 445 Freight Plan if you worked in contributory employment under a collective bargaining agreement that requires contributions to the Freight Plan.
GLOSSARY
The following are definitions of some of the terms used in the Plan and this booklet.
Collective Bargaining Agreement – A Collective Bargaining Agreement is a contract between the Union and a Contributing Employer which requires the Contributing Employer to pay contributions to the Fund on behalf of its Employees.
Contributing Employer – If you work for an Employer who is required to contribute to the Fund in accordance with a Collective Bargaining Agreement or a participation agreement, then your Employer is a Contributing Employer.
Contribution Period – The Contribution Period is the period of time during which your Employer is required to make contributions to the Fund.
Covered Service – If you work for an Employer who contributes to the Fund, in a job covered by a Collective Bargaining Agreement, you work in Covered Service. Covered Service includes periods of time before the Collective Bargaining Agreement required contributions to the Fund. Covered Service also includes employment by the Pension Fund, the Union, or any other Local 445 or affiliated benefit fund that has signed a participation agreement requiring contributions to the Fund on behalf of its Employees.
Employee – If you work for an Employer who is required to contribute to the Fund on your behalf under the terms of a Collective Bargaining Agreement or Participation Agreement, you are an Employee under the Plan.
Normal Retirement Age – Normal Retirement Age is age 65, or if later, the fifth anniversary of your Participation in the Plan.
Participant – You become a Participant in the Plan on the earlier of January 1 or July 1 following a 12-month period during which you completed at least 1,000 hours of work in Covered Service. You are also a Participant if you are receiving a pension or if you are a former Employee who has acquired a vested right to a pension under the Plan.
Plan Year – The Plan Year is the calendar year, from January 1 through December 31.
Pension Credits – Pension Credits are the units of credit, based on your periods of employment, which determine the amount of any pension you
may become eligible to receive from the Plan.
Vesting Service – You will be credited with one year of Vesting Service for each Plan Year in which you work at least 1,000 hours in Covered Service. Your number of Years of Vesting Service determines whether you are entitled to a vested Pension under the Plan. Once you attain vested status, you will not lose your right to a benefit under the Plan regardless of when you subsequently leave Covered Service.
BENEFIT APPLICATION FILING INSTRUCTIONS
Important: No pension benefits will be paid for any period before your application date. Failure to file early may result in a delay in receiving benefits and loss of monthly payments that would otherwise have been received. Submit your application 90 or more days prior to the date you want your pension to start. If you meet the requirements for benefit entitlement, your monthly pension will start the first day of the month following the later of:
… For Normal Retirement, your 65th birthday or the date you filed your application;
… For Early Retirement, the date you filed your application or your eligibility entitlement date.
For Disability Retirement: submit your application as soon as possible. Do not wait until you receive your Social Security Disability Award. You must let the Fund Office know if you plan on applying for a Social Security Disability Award when filing your application for an Early Retirement Pension in order to maintain your right to convert to a Disability Pension. While waiting for your Social Security Disability Award, you may retire on an Early Retirement Pension, and, upon receipt of such Award, convert from the Early Retirement Pension to a Disability Pension. If you meet the requirements for benefit entitlement, your monthly pension will start the first day of the month following the later of:
… Your application filing date; or
… A six-month waiting period from the date you are certified as totally disabled.
Benefit application forms can be obtained from the Fund Office:
By Mail:
P.O. Box 2572
Newburgh, NY 12550
Location:
15 Stone Castle Road
Montgomery, NY 12549
By Phone:
Telephone (845) 564-4076
1-800-445-0151 (Toll Free)
Your application forms must be completed and returned to the Fund Office in order for the Board of Trustees to determine your entitlement to a benefit. If you submit an application that is not complete or which lacks required supporting documents, you will be notified of what is necessary to complete your application.
PENSION CREDITS, VESTING SERVICE AND BREAKS IN SERVICE
One of the eligibility requirements for each of the pensions provided by the Plan is that you earn a certain amount of Pension Credits or Years of Vesting Service. Your Pension Credits also determine the amount of your monthly benefit. This section explains how you accumulate Pension Credits and years of Vesting Service, and also how you can lose Pension Credits and Vesting Service you have already accumulated if you have not yet become vested in the Plan.
HOW DO I EARN PENSION CREDIT?
You earn units of Pension Credit for periods of work in Covered Service both before and during the Contribution Period. The Contribution Period is the time during which your Employer was required to make contributions to the Pension Fund on your behalf.
Employment Prior to the Contribution Period
Prior to July 1, 1960:
For periods before the Contribution Period, you were credited with a Pension Credit for each Plan Year in which you worked in Covered Service, provided:
? You worked in uninterrupted continuous employment in a job classification which became covered under a collective bargaining agreement in effect on July 1, 1960 with Teamsters Local 445 Construction Division for which contributions were required to be made on your behalf; and
? You had continuous membership in good standing of Teamsters Local 445 Construction Division.
Employment During the Contribution Period
From July 1, 1960 to June 30, 1968:
During the Contribution Period from July 1, 1960 to June 30, 1968, you are credited with Pension credits on the basis of your hours of work in Covered Service (jobs covered under agreements for which contributions to the Pension Fund were made on your behalf) according to the following schedule:
Hours of Work Pension Credits
In a Calendar YearEarned
1,000 and over 1 Pension Credit
500 but less than 999 .5
Less than 499 0
From July 1, 1968 to December 31, 1969:
For the period July 1, 1968 to December 31, 1969, you are credited with Pension Credits on the basis of your hours of work in Covered Service (jobs covered under agreements for which contributions to the Pension Fund were made on your behalf) according to the following schedule:
Hours of Work Pension Credits
In a Calendar YearEarned
1,500 and over 1.5 Pension Credit
1,000 but less than 1,499 1
500 but less than 999 .5
Less than 499 0
From January 1, 1970 to December 31, 1979:
From the period January 1, 1970 to December 31, 1979, you are credited with Pension Credits on the basis of your hours of work in Covered Service (jobs covered under agreements for which contributions to the Pension Fund were made on your behalf) according to the following schedule:
Hours of Work Pension Credits
In a Calendar YearEarned
1,000 and over 1 Pension Credit
500 but less than 999 .5
Less than 499 0
For Plan Years on and After January 1, 1980:
For periods after January 1, 1980, you are credited with Pension Credits on the basis of your hours of work in Covered Service (jobs covered under agreements for which contributions to the Pension Fund were made on your behalf) according to the following schedule:
Hours of Work Basic Credits
In a Calendar YearEarned
1,000 but less than 1,099 1
900 but less than 999 .9
800 but less than 899 .8
700 but less than 799 .7
600 but less than 699 .6
500 but less than 599 .5
Less than 499 0
Additional Pension Credits will be accrued as follows for work in Covered Service on or after January 1, 1980 based on the following schedule:
Hours of Work Additional Credits
In a Calendar YearEarned
1,500 and over .5
1,400 but less than 1,499 .4
1,300 but less than 1,399 .3
1,200 but less than 1,299 .2
1,100 but less than 1,199 .1
Note: Additional Pension Credits are used only in the calculation of the monthly pension amount at retirement date. It is not applicable to Vesting or to the minimum qualifying Pension Credit requirement for an Early Retirement or Disability Retirement Pension.
Credit for Non-Work Periods
You may also earn Pension Credit for periods during which your Covered Service is interrupted for any of the following reasons:
Disability
You will receive Pension Credit during periods of temporary disability arising from an occupational accident or illness incurred from Covered Service compensated under a Workers’ Compensation Law, up to a maximum period of 26 weeks for all periods of total disability within any period of 3 consecutive Plan Years. However, in no event will you be credited with more than ½ Pension Credit in any Plan Year.
You will receive Pension Credit during periods of disability in which weekly disability benefits are paid through the Welfare Fund of Local 445, up to a maximum of 26 weeks for all periods of total disability within any period of 3 consecutive Plan Years. However, in no event will you be credited with more than ½ Pension Credit in any Plan Year.
Also, any hours granted for a verified temporary total disability will not be applied to hours of employment for Additional Future Pension Credit.
Military Service
You will receive Pension Credit during periods of service in the armed forces of the United States to the extent required by law. To protect your full rights, if you left Covered Service to enter military service, upon discharge for such military service you must apply for re-employment with your Employer within the time prescribed by law. You must bring your claim for credit for military service to the attention of the Trustees, and be prepared to supply the evidence that the Trustees will need in order to verify your rights.
IMPORTANT NOTE:
In order to qualify for Pension Credit during the above absences from Covered Service, you must have completed at least 500 hours of work in the Plan Year which precedes the non-work period. In addition, Pension Credit for hours in Covered Service prior to becoming a Participant will be granted in accordance with this section only if you completed 500 hours in Covered Service immediately preceding the Plan Year in which you became a Participant.
WHAT IS VESTING SERVICE AND HOW DO I EARN IT?
Vesting Service determines when you have a non-forfeitable right to receive a pension benefit from the Plan. You earn Vesting Service at the same time you earn Pension Credit. You will be credited with one Year of Vesting Service for each Plan Year in which you work in Covered Service for 1000 hours or more.
If you worked for a Contributing Employer in a job not covered by this Plan and such employment directly follows (is “contiguous” with) Covered Service with the same Contributing Employer, you will continue to earn Vesting Service under this Plan for work in such contiguous non-Covered Service. Years of Vesting Service for such contiguous non-Covered Service however, shall not be used to earn Pension Credit under this Plan and will not increase your pension benefit under the Plan. You and your Employer must notify the Fund Office in the event this situation should arise.
WHAT IS VESTED STATUS?
Vestedstatus means you are vested in your rights under the Plan. Once your benefits become vested, you cannot lose your right to a pension from the Plan if you stop working in Covered Service, even if you have a Break in Service. You become vested when you meet any of the eligibility requirements for a Vested Deferred Retirement Pension (see page 22). In addition, you will attain vested status, if before January 1, 1976, you had attained age 45 and earned at least 15 Years of Vesting Service.
WHAT IS A BREAK IN SERVICE?
If you have attained Vested status, you have a non-forfeitable right to a pension benefit. However, if you are not yet Vested and incur too many consecutive One-Year Breaks in Service, you may lose your Pension Credits and Vesting Service.
WHAT CONSTITUTES A ONE-YEAR BREAK IN SERVICE?
A One-Year Break in Service occurs in any Plan Year in which you do not complete at least 500 hours of work in Covered Service. If you have a One-Year Break in Service before you have attained Vested status, your previously earned Years of Vesting Service and Pension Credits will be cancelled.
The effects of a One-Year Break in Service can be repaired by earning 500 hours in a Plan Year before incurring a Permanent Break in Service. In other words, if you have a One-Year Break in Service, then in the next Plan Year you earn 500 hours, the Pension Credit and Years of Vesting Service that were previously canceled by the One-Year Break in Service will be restored.
For example, during your first four years in Covered Service, you earned four Pension Credits and four years of Vesting Service, but during your fifth year you only worked 200 hours, therefore incurring a One-Year Break in Service. Then, during your sixth year, you worked 1,600 hours. Because you earned a Pension Credit and a year of Vesting Service after you incurred a One-Year Break in Service, the four Pension Credits and four Years of Vesting Service you earned prior to your Break in Service will be restored.
Under the rules of the Plan, you cannot incur a One-Year Break in Service if you have attained Vested status. Therefore, if you have attained Vested status, your Pension Credits and your Years of Vesting Service can never be forfeited.
WHAT IS A PERMANENT BREAK IN SERVICE?
If you incur a Permanent Break in Service, you permanently lose, or forfeit, all previously earned Pension Credit and Years of Vesting Service. This lost Pension Credit and Vesting Service cannot be restored. If you have not attained Vested status, you will incur a Permanent Break in Service under the following rules:
Before 1976
You will have incurred a Permanent Break in Service if, before 1976, you failed to earn at least four quarters of Pension Credit in any three consecutive Plan Years. However, in no event will you incur a Permanent Break in Service if you attained age 45 and earned at least 15 Years of Vesting Service.
After January 1, 1976, but before December 31, 1984
During this period, you will have incurred a Permanent Break in Service if you had consecutive One-Year Breaks in Service that equaled or exceeded the number of Years of Vesting Service you earned prior to the Break. For example, if you earned four Years of Vesting Service and then incurred four consecutive One-Year Breaks in Service, your previously earned Pension Credits and Years of Vesting Service are permanently cancelled.
After January 1, 1985
Employees Whose Employment is Covered by a Collective Bargaining Agreement:
If you earned five or fewer Years of Vesting Service, you will incur a Permanent Break in Service after January 1, 1985, if you incur five consecutive One-Year Breaks in Service. If you have earned more than five but less than ten Years of Vesting Service, you will incur a Permanent Break in Service after January 1, 1985, if you incur consecutive One-Year Breaks in Service that equal or exceed the number of Years of Vesting Service you earned prior to the Breaks. For example:
Years of Vesting Service Consecutive One-year Breaks
Earned before leaving in Service needed to incur a
Covered Servicea Permanent Break in Service
1 Year 5 Plan Years
2 Year 5 Plan Years
3 Year 5 Plan Years
4 Year 5 Plan Years
5 Year 5 Plan Years
Years of Vesting Service Consecutive One-year Breaks
Earned before leaving in Service needed to incur a
Covered Servicea Permanent Break in Service
6 Year 6 Plan Years
7 Year 7 Plan Years
8 Year 8 Plan Years
9 Year 9 Plan Years
For example, if you leave Covered Service with two Years of Vesting Service and return to work after incurring four One-Year Breaks in Service, the earlier Vesting Service and Pension Credit you earned will be restored, whereas had you incurred five One-Year Breaks in Service, you would incur a Permanent Break in Service and all your previously earned Years of Vesting Service and Pension Credits would be cancelled. On the other hand, if you leave Covered Service with seven Years of Vesting Service and return after incurring six One-Year Breaks in Service, the seven Years of Vesting Service and Pension Credit would be restored, whereas had you incurred seven One Year Breaks in Service, you would incur a Permanent Break in Service and all your previously earned Years of Vesting Service and Pension Credit would be cancelled.
Employees Whose Employment is Not Covered by a Collective Bargaining Agreement:
If you have earned less than five Years of Vesting Service, you will incur a Permanent Break in Service after January 1, 1985, if you incur five One-Year Breaks in Service. As of January 1, 1989, however, if you are a “non collectively bargained” employee, you will become Vested in the Plan once you earn five Years of Vesting Service.
After January 1, 1998
Employees Whose Employment is Covered by a Collective Bargaining Agreement:
If you earned less than five Years of Vesting Service, you will incur a Permanent Break in Service after January 1, 1998, if you incur five consecutive One-Year Breaks in Service. If you have earned more than five Years of Vesting Service including earning one Hour of Service in Covered Service after December 31, 1997, you will attain Vested Status and not incur a permanent Break in Service.
Under the rules of the Plan, you cannot incur a Permanent Break in Service if you have attained Vested status. Therefore, if you have attained Vested status, your Pension Credits and your years of Vesting Service can never be forfeited.
SPECIAL CREDITING RULE
If you have also worked in employment requiring contributions to the Local 445 Freight Division Pension Fund and/or the Local 445 Moving and Storage Division Pension Fund (called “other Local 445 Plans”), your service under such Plans will be recognized for purposes of crediting Years of Vesting Service under this Plan. Also, for purposes of determining the benefit level to which you are entitled at retirement, the date you cease coverage under either of the Local 445 Plans, if later than the date you cease coverage in this Plan, shall be deemed your last date of coverage under this Plan.
However, pension credits accrued under the Other Local 445 Plans shall not be counted to determine your Pension Credits in calculating your retirement benefit payable from this Plan.
ARE THERE EXCEPTIONS TO THE BREAK RULES?
Absences from Covered Service for certain reasons are treated as grace periods for which you will not incur a Break in Service:
? Absence due to disability, to a maximum of 26 weeks. Disability means total inability because of injury or illness to engage in creditable employment whether or not the injury or illness is compensable under the Workers’ Compensation Law. You must submit proof of such disability to the satisfaction of the Board of Trustees.
? Absence due to pregnancy, the birth of your child, placement of a child with you in connection with the adoption of a child, to care for your child immediately following his or her birth or placement, or absence due to a leave under the Family and Medical Leave Act, you will be credited up to a maximum of 501 Hours of Service. These hours will be applied to the Plan Year in which the absence begins if it will prevent you from incurring a One-year Break in Service in that year, otherwise they will be credited to the following year.
? Time spent in military service in the armed forces of the United States, to the extent required by law. To qualify, you may need to return to Covered Service within the required time period prescribed by the prevailing law at that time.
You shall be entitled to such grace periods only if:
? You have prior Vesting Service; and
? Your non-work periods for such disability or military service, accounted for your absence from work for at least one-half the working days of such Plan Year; and
? You worked at least 500 hours in Covered Service in the Plan Year immediately preceding the Plan Year in which the verified disability or military service arises; and
? You worked at least 500 hours in Covered Service in the Plan Year in which you recovered form disability or were discharged form military service.
You are responsible for furnishing the necessary documents for verification of total disability and military service.
WHAT TYPES OF PENSION BENEFITS ARE THERE?
Six different types of pensions are provided by the Plan:
· Normal Retirement Benefit
· Thirty Five Year Service Pension
· Early Retirement Benefit
· Vested Deferred Retirement Benefit
· Disability Retirement Benefit
· Partial Pension
WHAT IS A NORMAL RETIREMENT PENSION AND HOW IS IT CALCULATED?
You are eligible for a Normal Retirement Pension if you have attained age 65 or if later, have participated in the Plan for at least five (5) years.
The amount of your monthly Normal Retirement Benefit is determined by multiplying the number of Pension Credits by the benefit level in effect at the time you left Covered Service. The benefit levels are:
Covered Service On or AfterBenefit LevelMaximum Benefit
January 1, 2001 $63 --
January 1, 1999 $61 $2,562
January 1, 1997 $57.50 $2,415
January 1, 1996 $55 $2,310
January 1, 1994 $50 $2,100
January 1, 1993 $47 $1,974
July 1, 1990 $45 $1,800
January 1, 1989 $40 $1,600
For example, if you retire with 20 Pension Credits on January 1, 1998, your monthly pension will be $57.50 multiplied by 20 Pension Credits or $1,150.00.
Please note that if you retire after your Normal Retirement Age, the benefit you receive will not be adjusted due to the delayed starting date.
Thirty Five Year Service Pension
Effective January 1, 1999, a Participant may retire on a Service Pension commencing at any age if he has accrued at least thirty-five (35) Pension Credits.
The monthly amount of the 35 Year Service Plan shall be compiled in the manner as the Normal Pension.
CAN I RETIRE ON AN EARLY RETIREMENT PENSION AND HOW IS IT CALCULATED?
You are eligible for an Early Retirement Pension if you meet the following requirements:
¾ You have attained age 55, and
¾ You have earned at least 15 Pension Credits
The monthly amount of your Early Retirement Pension is determined by reducing the amount of the Normal Pension you would receive at age 65 by a percentage which is based on your age at the time you retire. The percentage by which your benefit is reduced is determined as follows:
Percent of Normal Pension
Number of Pension Credits
Age at Less Than
Early Retirement30 Plus25-2925
64 100% 100% 99.0%
63 100 100 98.0
62 100 100 97.0
61 100 99.0 96.0
60 100 98.0 95.0
59 98.0 96.0 93.0
58 96.0 94.0 91.0
57 92.0 90.0 87.0
56 88.0 86.0 83.0
55 84.0 82.0 79.0
The above percentages will be adjusted and calculated to reflect your age in years plus full months.
Examples:
If you retire at Age 59 on January 1, 1998 with 20 Pension Credits and at a benefit level of $57.50, your Early Retirement benefit would be calculated using the factors in the above mentioned table as follows:
Benefit at Age 65: $57.50 x 20 = $1,150.00/mo.
Benefit at Age 59: $1,150.00 x .930 = $1,069.50/mo.
If you retire at Age 62 on January 1, 1998 with 25 Pension Credits and at a benefit level of $57.50, your Early Retirement Benefit would be calculated as follows:
Benefit at Age 65: $57.50 x 25 = $1,437.50/mo.
Benefit at Age 62: $1,437.5 x 1.00 = $1,437.50/mo.
WHAT IS A VESTED DEFERRED RETIREMENT PENSION?
You are eligible for a Vested Deferred Retirement Benefit regardless of
your age when you cease to be employed in a job covered by the Plan, if you meet any one of the following requirements:
? You have earned at least 5 years of Vesting Service provided you earned at least one Hour of Service after December 31, 1997, or
? You have earned at least 10 years of Vesting Service, or
? You are a Non-Collectively Bargained Participant, you have at lease 5 years of Vesting Service, and you have completed at least one hour of work in Covered Service on or after January 1, 1989, or
? You have attained Normal Retirement Age (later of age 65 or the 5th anniversary of your Participation in the Plan).
If you have earned at least 15 Pension Credits, your Deferred Retirement Benefit can begin as early as age 55. If you have earned less than 15 pension Credits, your Deferred Retirement Benefit begins at age 65. If your Deferred Retirement Benefit begins on or after you attain age 65, the monthly amount will be calculated in the same manner as a Normal Retirement Benefit. If payment of your Deferred Retirement Benefit begins after age 55 but before 65, the monthly amount will be calculated in the same manner as for an Early Retirement Benefit.
DOES THE PLAN OFFER A DISABILITY PENSION AND HOW IS IT CALCULATED?
You may be eligible for a Disability Retirement Benefit if you meet the following requirements:
? You are Totally and Permanently Disabled as defined below, and
? You have earned at least 15 Pension Credits, (counting no more than one Pension Credit in any one Plan Year), and
? Your disability began while you were actively working in Covered Service under the jurisdiction of Local 445, or during a period in which you were registered as being available for active work in Covered Service, provided you had worked at least 500 hours in the Plan Year you are certified as disabled and in the two immediately preceding Plan Years in which you became Totally and Permanently Disabled.
Please note: You should submit your application for a disability pension as soon as possible. Do not wait until you receive your Social Security Disability Award. You must let the Fund Office know if you plan on applying for a Social Security Disability Award when filing for an Early Retirement Pension in order to maintain your right to convert to a Disability Pension. If you meet the eligibility requirements for a Disability Pension, your benefits will be payable on the first of the month following the later of:
? your application filing date; or
? a six-month waiting period from the date you are certified as totally disabled.
Disability Defined
You will be deemed Totally and Permanently Disabled only if:
? You have been awarded Disability Benefits from the Social Security Administration; and
? Your disability is considered to be permanent and continuous for the remainder of your life, and
? Your disability resulted from an unavoidable cause and shall exclude a disability resulting from any of the following:
· habitual, excessive use of intoxicants or drugs;
· participation in any criminal act;
· work for an employer other than work in Covered Service;
· intentional self inflicted injury.
In addition, if you apply for a Disability Retirement Benefit, you may be required to submit to an examination by a physician or physicians selected by the Trustees and may be required to submit to re-examination periodically as the Trustees may direct to make a determination as to the status of your disability.
The Trustees will be the sole and final judges of Total and Permanent Disability, and of your entitlement to a Disability Retirement Benefit, based on medical evidence and the provisions of the Plan.
The monthly amount of the Disability Retirement Benefit is calculated in the same manner as a Normal Retirement Benefit. The Disability Retirement will continue for life, provided you remain Totally and Permanently Disabled to age 65. If you cease to be Totally and Permanently Disabled before age 65, your Disability Retirement Benefit will cease, starting with the first month after your disability ceased, although you may at that time (or later on) qualify for another type of pension under the Plan.
WHAT IS THE SOCIAL SECURITY LEVEL INCOME OPTION?
Social Security benefits are not payable until age 62. If you retire before age 62 with an Early Retirement Benefit, you may elect to receive a larger benefit prior to age 62 with the understanding that a smaller benefit will be provided after age 62 when Social Security benefits become payable. The effect of this option will be to provide a benefit, including Social Security payments, which will be constant during the entire retirement period.
The option may be elected only if you are single or both you and your spouse reject the Qualified Joint and Survivor Annuity as described above. This option cannot be revoked once payments begin.
Please note that this option is based on your projected Social Security benefits. The Plan cannot guarantee your eligibility for or the ultimate amount of your Social Security benefits. You, not the Plan, are responsible for ensuring that you begin to receive your Social Security benefits in a timely manner.
The following factors are used to calculate your benefit under the Social Security Level Income Option, before and after age 62:
AgeTable 1Table 2
55 .6285 1.0
56 .6688 1.0
57 .7126 1.0
58 .7602 1.0
59 .8122 1.0
60 .8691 1.0
61 .9315 1.0
Please note that the above factors are updated annually.
For example, suppose you retire on your 57th birthday with an Early Retirement Benefit of $1,000 per month and your estimated Social Security benefit at age 62 is $600 per month. Using the table of factors above, your benefit would be calculated as follows:
1) Table 2 factor x monthly pension
1.0 X $1,000 = $1,000.00
2) Table 1 factor x monthly social security
.7126 X $600 = $ 427.56
3) Item 1 + Item 2
$1,000 + $427.56 = $1,427.56
4) Item 3 – Social Security Benefit
$1,427.56 - $600 = $ 827.56
Monthly Benefit Payable from the Plan from age 57
up to age 62: = $1,427.56
Monthly Benefit Payable from the Plan on or
after age 62: = $ 827.56
Your Early Retirement benefit of $1,000 is increased by $427.56, giving you a monthly benefit of $1,427.56 up to age 62. After age 62, when you start receiving Social Secuirty payments, your pension payment is reduced to $827.56. Accordingly, your total monthly income remains constant throughout your years of retirement, as shown when you start receiving your Social Security payments, your pension payment in the chart below:
Before Age 62
After Age 62
Pension from Plan
$1,427.56
$827.56
Social Security
(Assumed)
-0-
$600.00
Total Monthly Benefit
$1,427.56
$1,427.56
WHAT IS A PARTIAL PENSION?
If you earn Pension Credit with one or more “Related Plans” (i.e., Teamster Pension Funds that have signed a Reciprocal Agreement with Pension Fund Local 445 Construction Plan), you may be entitled to a Partial pension.You should contact the Fund Office if you have worked under other Teamsters Funds, and your work history will be reviewed to determine if you are eligible for a Partial Pension.
Partial pensions were established for employees who would not be eligible for any pension because their years of employment were covered under different Teamster Pension Funds, or for employees whose pension from different Teamster Pension Funds, if provided independently, would be less than the amount they would have received had all their employment been covered under one Teamster Pension Fund.
To be eligible for a Partial Pension under the Plan, you must meet the following requirements:
? You would be eligible for any type of Pension under this Plan had all your years of employment been covered under this Plan, and
? You have at least two Pension Credits based on hours reported in Covered Service, and
? You were found eligible and elect to receive a Partial Pension under this Plan and the Related Plan.
The amount of your Partial Pension shall be determined based on your Pension Credits accrued under this Plan and the benefit level in effect when you last worked in Covered Service under this Plan. However, if there is a break-in-service of 3 years or more between Local 445 service and reciprocal local service, the benefit level is frozen based on the benefit rate when last Local 445 service credit was earned. If there is no break-in-service between Local 445 and reciprocal local service, the benefit level is based on the benefit rate at retirement.
ADDITIONAL INFORMATION
For further details on any of the Pensions described in this booklet, please contact the Fund Office.
FORMS OF PAYMENT
HOW IS YOUR PENSION BENEFIT PAID?
If you are married, your benefit will be paid in the form of a “50% Husband and Wife Pension,” unless you and your spouse reject this form of payment as described below. If you are not married, or if you and your spouse reject the 50% Husband and Wife Pension and you do not elect another optional form of payment, your benefit will be paid in the form of a Single Life Annuity.
50% HUSBAND AND WIFE PENSION AT RETIREMENT
If you are married when you retire, the automatic form of payment is the 50% Husband and Wife Pension. All benefits will be paid in this form unless it is properly rejected by you and your spouse, or if you are not married. Under the 50% Husband and Wife Pension, you will receive a reduced monthly benefit payable during your lifetime. Upon your death, your spouse will receive 50% of the monthly benefit amount throughout his or her lifetime.
In order to provide this coverage for your spouse, the amount of your pension will be reduced. The amount of the reduction depends on the difference between your age and your spouse’s age at the time you begin receiving your pension benefits. You will receive 89% of your monthly pension minus .4% for each full year that your spouse’s age is less than yours, or plus .4% for each full year that your spouse’s age is greater than yours. The resulting percentage will be no greater than 99%.
For example, assume you retire at age 65 and your Normal Retirement Benefit amount is $1,904. Your wife is 62 years old. Because your wife is three years younger than you, your 50% Husband and Wife Pension will be 87.8% of your Normal Retirement amount, and you will receive $1,671.71 a month for your lifetime. When you die, your spouse will continue to receive a monthly pension in the amount of $835.86 (50% of the amount you were receiving) for as long as he or she lives.
You should be aware that your benefits will automatically be paid in the form of a 50% Husband and Wife Pension unless you and your spouse reject this type of benefit. Your spouse must consent to the rejection of the 50% Husband and Wife Pension in writing, witnessed by a notary public, and also consent to any beneficiary you designate.
The 50% Husband and Wife Pension may also be waived if you cannot locate your spouse or your spouse’s consent cannot be obtained due to extenuating circumstances. In these situations, you must submit appropriate proof as requested by the Trustees.
To be entitled to a 50% Husband and Wife Pension, you and your spouse must be married to each other throughout the year ending with the date you begin receiving your pension benefits, or on the date of your death. If you marry within twelve months prior to retirement, you can receive the 50% Husband and Wife Pension. However, if you die before you were married for a full year, your surviving spouse will not receive the survivor’s pension. Once your pension benefits begin, you cannot change your decision about the Husband and Wife Pension.
ARE THERE OPTIONAL FORMS OF BENEFIT PAYMENT?
SINGLE LIFE ANNUITY
If you are unmarried or you and your spouse reject the Husband and Wife Pension, you may elect the Single Life Annuity Option. Under this form of payment you would receive your retirement benefit monthly during your remaining lifetime, ending with the last payment due on or before your death.
100% JOINT AND SURVIVOR BENEFIT
If you and your spouse reject the 50% Husband and Wife Benefit, you may elect the 100% Joint and Survivor Benefit. Under this form of payment, your spouse will continue to receive the same amount you were receiving at the time of your death, rather than one-half of that amount. Because your spouse will be receiving a greater benefit under this option, your pension will be further reduced from what it would be as a 50% Husband and Wife Pension.
Under this optional form, you will receive 80% of your monthly benefit minus .6% for each full year that your spouse’s age is less than yours, or plus .6% for each full year that your spouse’s age is greater than yours. The resulting percentage will be no greater than 99%.
For example, assume you retire at age 65, and your Normal Retirement Benefit amount is $1,904. Your wife is 62 years old. Because your wife is three years younger than you, your Pension under the 100% Joint and Survivor Benefit option will be 78.2% of your Normal Retirement Benefit amount, and you will receive $1,488.93 a month for your lifetime. When you die, your spouse will continue to receive a monthly pension in the amount of $1,488.93 (100% of the amount you were receiving) for as long as he or she lives.
POP-UP OPTION
You may also elect to add a Pop-up Option if you take your benefit in the form of a Husband and Wife Pension or under the 100% Joint and Survivor Benefit. Under the Pop-up option, the Husband and Wife Pension or the Joint and Survivor Benefit is paid in the standard way, as a reduced lifetime benefit for you with 50% (or 100%) of the monthly benefit paid to your spouse for his or her lifetime after your death. However, should your spouse die before you do, the monthly amount you had been receiving would “pop-up” to the amount you would have been receiving had your pension never been reduced for the Husband and Wife Pension or 100% Joint and Survivor Benefit. You would begin to receive unreduced monthly payments for the remainder of your life.
The amount of the reduction in your benefit would be one percent greater under this option than under the standard Husband and Wife Pension or the 100% Joint and Survivor Benefit reductions.
36 MONTH PENSION GUARANTEE
If you retire on a Normal, Early, Service or Disability Retirement, you are not married (or your benefit is not being paid as a Qualified Joint and Survivor Annuity or a 100% Spouse Shared Benefit), and you die before receiving 36 monthly payments, a benefit will be payable to your beneficiary. The benefit will be the balance of any monthly payments due, computed so that the total of payments made to you and to your beneficiary equal 36 times the amount of your monthly benefit. The amount of the benefit will be paid to your beneficiary in a lump sum.
You may designate any of the following individuals to be the beneficiary of this benefit:
? Your spouse;
? Your unmarried dependent child or children at home, provided they are under age 19, or under age 24 if they are attending an accredited educational institution. Dependent children who are unmarried and mentally or physically handicapped and living at home may be designated as a beneficiary regardless of age;
? Your surviving parent or parents who are dependent upon you for support and maintenance within the meaning of the United States Internal Revenue Code.
If no one in any of the above classes survives you, then no further benefits will be paid.
CAN I RECEIVE MY RETIREMENT BENEFIT AS A LUMP SUM PAYMENT?
On or after March 28, 2005
If you are eligible to receive monthly benefit payments, you may elect to receive a lump sum benefit instead of monthly payments if the actuarial equivalent lump sum value of your vested accrued benefit payable under the Plan is $5,000 or less. If your lump sum benefit is more than $5,000, you may not waive or decline part of your benefit in order to qualify for this option. No spousal consent is required if the lump sum is $5,000 or less.
DEATH BENEFITS
WHAT HAPPENS IF I DIE BEFORE I RETIRE?
If you are married, have a Vested right to a pension but die before you retire on a pension, your spouse will be eligible for a death benefit payable under this Plan. The type of death benefit that your spouse will qualify for, however, will depend upon your age, number of Pension Credits and whether you were actively engaged in Covered Service at the time of your death.
PRE-RETIREMENT SURVIVING SPOUSE BENEFIT
Under this form of payment, your surviving spouse will receive 100% of the monthly amount that you would have received had you retired on a pension under the 100% Joint and Survivor option after any reduction for early retirement and applying the applicable 50% Husband and Wife adjustment factor, payable for his or her lifetime.
If you were eligible for immediate payment of a pension at the time of your death, the Pre-Retirement Surviving Spouse Benefit will automatically be the form of death benefit payable to your spouse. If you were not eligible for immediate payment of a pension at the time of your death and you did not meet the requirements for your spouse to receive the Pre-Retirement Death Benefit described below, the Pre-Retirement Surviving Spouse Benefit will automatically be the form of death benefit payable to your spouse.
Benefit payments to your surviving spouse may not begin until the earliest date on which you could have retired, based upon your years of Vesting Service or Pension Credits. (You can retire as early as age 55, if you have at least 15 Pension Credits.) Your spouse may elect to defer payment of this benefit, not beyond the December 1 of the year you would have reached age 70 ½.
The monthly amount payable to your spouse will be determined when payments begin, based on the age you would have been at that time had you survived and retired on a pension under the 100% Joint and Survivor Benefit.
For example, assume you died at age 58 with 22 Pension Credits and your benefit level was $57.50 at the date of your death. Your spouse would be eligible to receive a Pre-Retirement Surviving Spouse Benefit payable immediately. If your spouse were three years younger than you, the monthly amount of the benefit, payable for the life of your spouse, would be $900.20, calculated as follows:
Pension Amount:
$57.50 x 22 Pension Credits = $1,265.00
Early Retirement Reduction for Benefit payable
at age 58: X 91.00%
Early Retirement Pension Amount: $1,151.15
100% Factor for Spouse 3 years younger: x .7820
Monthly amount of Pre-Retirement
Qualified Joint and Survivor Benefit: $900.20
FORMS OF PAYMENT
Your surviving spouse shall designate the form of payment of the pre-retirement surviving spouse benefit pursuant to the option benefit forms described below if eligible, on forms approved by and filed with the Fund Office. If the pre-retirement surviving spouse is not immediately payable and your surviving spouse fails to designate the form of payment within a reasonable period of time, the Fund Office shall pay such benefit in the form of a survivor annuity for the life of your surviving spouse.
PRE-RETIREMENT DEATH BENEFIT
Your spouse may elect the Pre-Retirement Death Benefit if at the time of your death you met the following requirements:
? You were not eligible at the time of your death to immediately begin receiving a pension,
? You had accumulated at least 10 Pension Credits, and
? You were actively engaged in Covered Service. You are considered actively engaged in Covered Service unless you had incurred a One-Year Break in Service that was not repaired by earning a subsequent year of Vesting Service.
The monthly benefit amount payable to your spouse shall be determined based on the monthly benefit to which you would have been entitled had you retired on the date of your death. In the event that you die before attaining age 55, the benefit shall be calculated as if you had retired at age 55. This monthly amount shall be payable to your spouse for the period of time determined according to the following schedule:
Participant’s Payment Certain
Pension CreditsBenefit Period in Months
10 36
15 66
20 96
25126
30156
35 or more 186
For example, if you died at age 45 with 20 Pension Credits, your spouse could choose to receive 96 monthly payments in an amount equal to the amount you would have received had you retired at age 55. The monthly payments would begin immediately.
This benefit is payable only to your spouse and only if you and your spouse were married to each other for at least one year before your death. If your spouse dies or remarries before the expiration of the payment period listed above, no further benefits shall be payable.
If you are not married and you die while vested, no survivor benefit is payable.
WHAT IS THE POST RETIREMENT DEATH BENEFIT?
Effective January 1, 1997, provided you accrued at least 500 Hours of Service in three out of the last five Plan Years immediately prior to the effective date of your pension, upon your death your designated beneficiary will receive a single sum of $6,250.
You may name your beneficiary by completing a Beneficiary Designation Card. You may change your beneficiary at any time by completing and filing a new Beneficiary Designation Card with the Fund Office.
RETIREMENT AND SUSPENSION OF BENEFITS
WHAT IS RETIREMENT?
When you stop working in Covered Service and begin receiving a pension benefit from the Plan, you are considered to be in retirement. While you are retired, you will receive monthly pension checks unless you resume work in Disqualifying Employment. Whether you are working in Disqualifying Employment depends upon your age and the type of work.
WHAT IS DISQUALIFYING EMPLOYMENT?
Before age 65. Disqualifying Employment is any kind of work (whether union or non-union, whether in self-employment or employed, whether actually working or supervising such work, whether contributions are required to be made to the Plan or not) regularly performed by a Participant in the Pension Fund Local 445 - Construction Plan and in the state or geographic area covered under the jurisdiction of the Teamsters Local 445. If you take this kind of work, your pension benefit will not be paid for the month or months in which you worked, plus six additional months. In addition, you must notify the Fund Office within 15 days following your return to such employment, or an additional period of up to 12 months of suspension will result.
After age 65. Disqualifying Employment is employment or self-employment in an industry covered by the Plan, and in the geographic area covered under the Plan, and in any job class under the Plan. Your pension benefit will not be paid for any month in which you work 40 hours or more in this type of employment. You must notify the Fund Office within 15 days following your return to such employment. However, after April 1 following the year in which you reach age 70-1/2, yourbenefit will not be suspended for any reason.
Except for these limitations, you will be free to work in anything else, without affecting your pension. If you need assistance in determining whether a job is considered to be Disqualifying Employment, please contact the Fund Office.
WHAT HAPPENS IF YOU WERE PAID PENSION BENEFITS WHILE YOU WERE WORKING IN DISQUALIFYING EMPLOYMENT?
If you were paid a benefit during any month in which your benefits should have been suspended under the above rules, the Plan will deduct that amount from your future benefit payments once your payments from the Plan resume. If you die before the Plan can recoup the entire amount of payments made while you worked in Disqualifying Employment, the benefit payments to your surviving spouse or beneficiary, if any, are subject to deduction until the overpayment is recovered by the Fund.
CAN YOU CONTINUE TO EARN ADDITIONAL PENSION CREDIT IF YOU RETURN TO COVERED SERVICE?
If you return to Covered Service, regardless of whether it is considered “disqualifying”, you are eligible to accrue additional Pension Credit, up to a maximum number of Pension Credits available under the Plan. If your pension benefit was suspended during your return to Covered Service, any additional benefits will be payable when you cease such work or on the April 1 following the year you attain age 70-1/2. If your pension benefit was not suspended during your return to Covered Service, any additional benefits you earn during each Plan Year will be determined at the end of that plan Year and will be payable as of February 1 of the following year.
APPLYING FOR BENEFITS
FILING AN APPLICATION
To make sure your benefit payments are not delayed, you must file an application at least three months before the date you want benefit payments to begin. The rules of the Plan require that your application be filed in advance and you are urged to file as soon as you decide on your intended retirement date. Early filing will avoid delay in the processing of your application and payment of benefits. Application forms are available from the Fund Office.
IF YOUR APPLICATION IS DENIED
If your application for a benefit is denied, in whole or in part, you will be sent written notice within 90 days after the Pension Fund receives your application, explaining:
? the specific reasons for the denial;
? the exact Plan provision(s) on which the decision was based; and
? your rights under the Plan to appeal the decision.
YOUR RIGHT TO APPEAL
If your application is denied by the Trustees, you have the right to request that your application be reconsidered. You must file this appeal in writing within 30 days after you receive the application denial notice. Your appeal may include any additional information you believe relevant to your application. You may also review any pertinent documents the Trustees have that concern your application, such as copies of the Plan documents or special information relating to your application. You and/or your representative may choose to appear in person before the Board of Trustees or designated subcommittee.
The Board of Trustees or subcommittee must reach a final decision within 60 days after receiving your review request. If special circumstances, such as a need to hold a hearing, require an extension of time, you will be notified in writing that the Trustees request a 60 day extension. The final decision must be made in writing, clearly stating the reasons for the decision and the provisions of the Plan upon which the decision is based.
RECEIVING YOUR PENSION BENEFIT
Generally, you should begin receiving your pension benefit on the first day of the month following the month you submit your application, or the first day of the month you reach the required age to begin receiving a pension. You may, however, choose to delay the start date of your benefit payments, but they cannot be delayed beyond April 1st following the calendar year in which you turn age 70 1/2. Your benefit must begin by that April 1, even though you may still be working in Covered Service.
NON-ASSIGNMENT OF BENEFITS
Benefits cannot be assigned, sold, transferred or pledged as security for a loan. Furthermore, they are not subject to attachment or execution under any decree of a court or action with the exception of a Qualified Domestic Relations Order (QDRO) and those domestic relations orders permitted to be so treated by the Trustees under the provisions of the Retirement Equity Act.
The Trustees are required to comply with certain court orders (or judgments, decrees or approved property settlements) providing for distribution of a Participant’s benefit under the Plan to his or her spouse or dependent, in order to meet the Participant’s alimony, marital property rights or dependent support obligations. A Qualified Domestic Relations Order cannot change or alter the benefit provisions of a qualified defined benefit Pension Plan.
A domestic relations order (DRO) is any judgment, decree or order made pursuant to a State domestic relations law that provides child support, alimony or marital property rights to an Alternate Payee.
A Participant can be a current, former or retired employee; an Alternate Payee can be a spouse, former spouse, children or other dependent. An Alternate Payee may not be either a trust or someone to be named at a future date (a contingent beneficiary).
(1) Upon receipt of a DRO, the Trustees will determine whether the order is a qualified domestic relations order (QDRO) and meets the following requirements needed for the Plan to comply with the Order:
(a) The Order is made pursuant to a State domestic relations law (including a community property law);
(b) The Order creates or recognizes an Alternate Payee’s rights to (or assigns an Alternate Payee the right to) receive all or a portion of the Participant’s vested benefit. An “Alternate Payee” is defined as any spouse, former spouse, child or other dependent of the Participant who is recognized in the Order as having a right to receive all (or a portion of) the vested benefit
payable to the Participant under the Plan;
(c) The Order clearly specifies the name of the Participant and the name and mailing address of each Alternate Payee covered by the Order;
(d) The Order clearly specifies the amount or percentage of the vested benefit to be paid by the Plan to each such Alternate Payee (or the manner in which the amount or percentage is to be determined);
(e) The Order clearly specifies the number of payments or the period to which the Order applies;
(f) The Order clearly specifies each plan to which the Order relates;
(g) The Order does not require the Plan to provide any form of benefit option not otherwise available under the Plan;
(h) The Order does not require the Plan to provide actuarially increased benefits;
(i) The Order does not require the Plan to provide benefits to an Alternate Payee that are to be paid to another Alternate Payee under a separate order previously determined to be a Qualified Domestic Relations Order.
(2) An Order will be treated as a Qualified Domestic Relations Order (QDRO) if it meets the requirements of paragraph 1, even if it requires the payment of benefits to an Alternate Payee at any time prior to the Participant’s separation from Service, provided that:
(a) The Participant has attained (or would have attained) the earliest retirement age under the Plan;
(b) Benefit payments are computed as if the Participant had retired on the date on which payments are to begin based on the present value of benefits actually accrued;
(c) Such payments are in a form in which benefits may be paid under the Plan to the Participant (other than in the form of a joint and survivor annuity with respect to the Alternative Payee and his or her subsequent spouse).
(3) To receive benefits from the Plan pursuant to a QDRO, the Alternative Payee must furnish the Trustees with a copy of the QDRO, certified by the Clerk of the Court issuing the qualified domestic relations order.
(4) Any determination that an Order is a QDRO will apply prospectively (i.e., the Plan shall not be liable for payments to an Alternative Payee for the period before the Order was determined to be a QDRO). The Plan shall be discharged from any obligation or liability to any Participant or Alternate Payee to the extent of any payment made pursuant to these procedures, provided the Trustees have acted in accordance with their fiduciary responsibility.
(5) The Trustees may require any Participant and any Alternate Payee to furnish such releases, documents or information as the Trustees may require for the administration of the Plan and determination whether an Order is or is not a QDRO.
DIRECT ROLLOVERS
You should be aware that if you or your surviving spouse receives your pension benefit or pre-retirement death benefit in a lump sum or in periodic payments of less than ten years duration, the benefit will be subject to an automatic 20% federal tax withholding unless it is directly rolled over into an IRA or other qualified retirement plan. Additional information on “eligible rollover distributions” will be provided upon application for a benefit.
MAXIMUM LIMITATIONS
Under the law, there are certain limitations on pensions received from qualified pension plans. If your pension under this Plan is subject to any type of maximum limitation, your benefit will be reduced to comply with the law.
WHAT HAPPENS IF THE PLAN TERMINATES?
Although the Trustees intend to continue the Plan indefinitely, they reserve the right to amend or discontinue it at any time. If the Plan is terminated, it will not affect your right to any benefit to which you have already become entitled. If the Plan terminates, you will be entitled to any benefit you have accrued to the extent then funded.
Plan assets will be allocated to benefit categories in a particular order. Beginning with the benefit category that has first claim on Plan assets, payments will be made for:
? benefits for retirees or beneficiaries that are or could be in effect as of the beginning of the three-year period ending with the Plan’s termination,
? benefits generally guaranteed by the Pension Benefit Guaranty Corporation (PBGC),
? benefits that are nonforfeitable (Vested) under the Plan,
? all other benefits under the Plan.
Assets will be allocated to these categories sequentially until assets run out.
WHAT IS THE PENSION BENEFIT GUARANTY CORPORATION (PBGC)?
Certain benefits to which you are entitled under the Plan are insured by the U.S. Government’s Pension Benefit Guaranty Corporation (PBGC). This agency automatically guarantees that these benefits will be paid up to a certain maximum level. The guarantee applies whether or not the Plan terminates. Each year, the Plan pays a premium for this protection.
Generally, PBGC guarantees a portion of most Vested Normal Retirement Age benefits, and certain disability and survivor’s pensions. The amount of your pension that is guaranteed depends on your years of service and the level of your monthly benefits under the Plan. A benefit increase is guaranteed only after it has been in effect for five years.
For more information on the PBGC insurance protection and its limitations, contact the Fund Office or the PBGC. You may call the PBGC Customer Service Department at (202) 326-4000 or write to:
PBGC Customer Service Department
1200 K Street, NW
Washington, DC 20005
YOUR RIGHTS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT (ERISA)
In addition to what the Trustees, the Employers and the Union have done to see that the Plan’s benefit obligations are fulfilled, federal regulations require the following summary of rights and protection to which every Participant in the Plan is entitled under the Employee Retirement Income Security Act of 1974 (ERISA). You have the right to:
? Examine, without charge, at the Fund Office and other specified locations, such as worksites and Union halls, all Plan documents, including insurance contracts, Collective Bargaining Agreements and copies of all documents filed by the Plan with the U.S. Department of Labor and available at the Employee Benefits Security Administration, such as detailed annual reports and Plan descriptions.
? Obtain copies of all Plan documents and other Plan information upon written request to the Fund Office. The Fund Office may make a reasonable charge for the copies.
? Receive a summary of the Plan’s annual financial report. The Plan Administrator is required by law to furnish each Participant with a copy of this summary annual report.
? Obtain a statement, not more than once a year, telling you whether you have a right to receive a pension at Normal Retirement Age (age 65, or, if later, your age on the fifth anniversary of your participation) and if so, what your benefits would be at Normal Retirement Age if you were to stop working under the Plan now. If you do not have a right to a pension, the statement will tell how many more years you have to work before you earn a right to a pension under the Plan. This statement must be requested in writing and is not required to be given more than once a year. The Plan must provide the statement free of charge. The Plan will provide this information to the extent it is able, based on available records.
In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of your Plan. The people who operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan Participants and beneficiaries.
No one, including your Employer, your Union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a benefit or exercising your rights under ERISA.
Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request material from the Plan and do not receive it within 30 days, you may file a suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator.
If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court. If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim frivolous.
If you have questions about the Plan, your rights, or this statement, or if you need assistance in obtaining documents from the Plan Administrator, please contact the Fund Office or the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publication hotline of the Employee Benefits Security Administration at 1-800-347-3756.
OTHER INFORMATION
The following additional information concerning your Plan is being provided to you in accordance with government regulations. This Plan is a defined benefit plan. A Joint Board of Trustees, consisting of Union Representatives and Employer Representatives administers the Plan. The Board of Trustees has been designated as the agent for the service of legal process. Service of legal process may also be made upon the Fund Administrator at the address shown below.
By mail:
PENSION FUND LOCAL 445
P.O. Box 2572
Newburgh, New York 12550
In Person:
15 Stone Castle Road
Montgomery, NY 12549
Employers contribute to the Fund in accordance with their Collective Bargaining Agreements with the Union. The Collective Bargaining Agreements require contributions to the Fund at fixed rates per hour worked.
The Fund Office will provide you, upon written request, with information as to whether a particular Employer is contributing to this Fund on behalf of Employees working under the Collective Bargaining Agreements.
Benefits are provided from the Fund’s assets, which are accumulated under the provisions of the Collective Bargaining Agreement and the Trust Agreement and are held in trust for the purpose of providing benefits to covered participants, and defraying reasonable administrative expenses.
The Fund’s assets and reserves are held in custody by the Bank of New York.
Normally, the Fund Office should be able to help you resolve any problem you might have about your rights to benefits. All Plan documents and other related information are available if you wish to study these materials.
If, for some reason, it becomes necessary to contact the Department of Labor, you will need the following information to properly identify your Plan.
