How are Benefits calculated?

The monthly Normal Retirement Benefit for a Participant, who has not incurred a Break-in-Service, is currently equal to 3.27% of the contributions received on his behalf.

If your initiation date with Local 132 was prior to April 1, 1962, please refer to Appendix A for information regarding Past Credited Service and the effect on your monthly pension benefit.

If you are a Participant who has accrued a Vested Benefit (see page 3), you can estimate your Normal Retirement Benefit by multiplying your total contributions since your last date of participation by the benefit accrual rate in in effect at the time you last worked in covered employment:

        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.

        If you last worked 01/01/1999 through 03/31/2008, use 3.27%                (0.0327)
        If you last worked 04/01/1985 through 12/31/1998, use 3.10%                (0.0310)
        If you last worked 07/01/1980 through 03/31/1985, use 3.00%                (0.0300)
        If you last worked  04/01/1976 through 06/30/1980, use 2.90%               (0.0290)

This calculation will give your Normal Retirement, Life Option Five (5) Year Certain Benefit.

NORMAL RETIREMENT - Example

A Participant who had a total of 24,000 Covered Hours and $50,000 in pension contributions reported upon their behalf with the last contributions reported for the month of March 2005, would receive the following:

$50,000.00   x   0.0327   =   $1,635.00 per month

In this example, the Participant would be eligible for a Normal Retirement, Life Option Five (5) Year Certain Benefit of $1,635.00 per month, payable at age sixty-five (65).

EARLY NON-REDUCED RETIREMENT – Example

A vested Participant as of April 1, 2008 who is age sixty-two (62) with a total of 36,000 Covered Hours and $50,000 in pension contributions reported upon their behalf with the last contributions reported for the month of March 2005, would receive the following: 

$50,000   x   0.0327   =   $1,635.00 per month

In this example, the Participant would be eligible for a Non-Reduced Early Retirement Benefit of $1,635.00 per month, payable at age sixty-two (62).

EARLY RETIREMENT - Example

If the Participant in the previous example wanted to retire at age sixty (60), as he was eligible for a Non-Reduced Retirement Benefit of $1,635.00 at age sixty-two (62), he would then be retiring two years, or twenty-four (24) months early.  The early retirement reduction factor is one half of one percent (½%) for each month retirement is early. 

You would calculate the reduction from a Normal or Early Non-Reduced Retirement Benefit as follows:

$1,635.00   x   (0.005 x 24 months)   =   $1,635.00   x   0.12   =   $196.20

To calculate an Early Retirement Benefit, you would take the amount of the Normal or Non-Reduced Early Retirement Benefit and subtract the reduction as follows:

$1,635.00   -   $196.20   =   $1,438.80 per month

In this example, the Participant would be eligible for an Early Retirement Benefit (Life Option Five Year Certain Benefit) of $1,438.80 per month, payable at age sixty (60).

DISABILITY RETIREMENT

For benefits payable between ages fifty-five (55) and sixty-five (65), you calculate your disability retirement benefit in the same manner as you would calculate an Early Retirement Benefit.  For ages prior to ages fifty-five (55) the monthly benefit will be actuarially reduced based on the Plan's definition of actuarial equivalence as of your retirement date.