Pension Fund Plan Changes

Recent Changes to the Pension Benefits

Future Service Benefit Accrual Rate  (effective 9/01/2009)

The current benefit accrual rate of 2.75% of contributions has been reduced to 1.00% of contributions for work performed on and after September 1, 2009.

This reduction does not in any way affect the benefit amounts earned by active participants prior to September 1, 2009.  The multiplier for contributions for work performed prior to April 1, 2008 will be 3.27%, the multiplier for contributions for work performed April 1, 2008 through August 31, 2009 will be 2.75% and the multiplier for contributions for work performed September 1, 2009 and after will be 1.00%.

For participants who have previously retired from the Fund, this benefit accrual rate change will not affect the pension benefits you are currently drawing.  Should you return to covered employment, the benefit accrual rate of 1.00% of contributions earned will only apply to work performed on or after September 1, 2009.

 

Future Service Benefit Accrual Rate  (effective 4/01/2008)

The actuary for the Plan has determined that, based on changes to the minimum funding standards prescribed by the Pension Protection Act of 2006 effective in 2008 and the funded status of the Plan, that the benefit accrual rate must be reduced from 3.27% to 2.75% for work on or after April 1, 2008.

For participants with at least one hour of contributory service between June 1, 1998 and March 31, 2008, the benefit accrual rate of 3.27% will apply for all contributions previously earned.  The benefit accrual rate of 2.75% of contributions earned will apply to work performed on or after April 1, 2008.

For participants who have previously retired from the Fund, this benefit accrual rate change will not affect the pension benefits you are currently drawing from the Fund, unless you return to covered employment.  Should you return to covered employment, the benefit accrual rate of 2.75% of contributions earned will apply to work performed on or after April 1, 2008.

 

Early Non-Reduced Retirement Benefit  (effective 4/01/2008)

The Early Non-Reduced Retirement Benefit is determined by hours reported to the Plan on your behalf.  For non-vested participants as of April 1, 2008, the Early Non-Reduced Retirement Benefit requires you to be at least age sixty (60) with a total of 45,000 Covered Hours.  There are no additional age and hour combinations available for a non-reduced benefit.

Please note, if you are a vested participant as of April 1, 2008, the above described benefit change does not apply to you.

To review, in order to be vested in the Plan, you must meet one of the following requirements:

If you last worked on or after June 1, 1997, you are vested with:

  • Five (5) Years of Participation; or
  • 16,000 or more Covered Hours.

If you last worked prior to June 1, 1997, you are vested with:

  • Ten (10) Years of Participation; or
  • 16,000 or more Covered Hours.

You are credited with a Year of Participation if your Employer makes contributions on your behalf for 1,000 or more Covered Hours during a Plan Year.  The Plan Year is April 1st through March 31st.

Please refer to your Summary Plan Description, Early Non-Reduced Retirement Benefit.

 

Disability Retirement Benefit  (effective 10/01/2007)

The Trustees have amended the Disability Retirement Benefits available with the Plan for applications received in the Trust Office on or after October 1, 2007.  For applications received October 1, 2007 and after the Disability Retirement Benefit payable will be your actuarially reduced accrued benefit as of your Disability Retirement date.  For purposes of this Disability Retirement Benefit the actuarial reduction will be one-half of one percent (½%) for each month between age sixty-five (65) and age fifty-five (55).  For ages prior to fifty-five (55) the actuarial reduction will be based on the Plan’s definition of actuarial equivalence as of your Disability Retirement date.

You must make an election regarding the joint and survivor option when completing your Disability Retirement Benefit application.  You will not be permitted to change your benefit election once your Disability Retirement Benefit commences, your decision is final.

If you qualify for an Early, Early Non-Reduced or Normal Retirement Benefit, you will not be entitled to receive a Disability Retirement Benefit.

Please refer to your Summary Plan Description, Disability Retirement.

 

Severance Benefit  (effective 9/01/2007)

The Trustees have amended the Severance Benefit to exclude contributions received on or after September 1, 2007.

If you do not become vested for a benefit, any contributions received on or after September 1, 2007 will be forfeited to the Fund after incurring a Break-in-Service.

Please refer to your Summary Plan Description, Severance Benefit.