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Pension Plan

 
Death

Important: Information on this page may have been affected by recent updates to the Plan. Please review the updates contained within the September 2009 Critical Status Rehabilitation Plan notice.

Pre-Retirement Death Benefit

If a Participant dies before his Annuity Starting Date, 60 monthly payments in a monthly amount determined in the same manner as the Regular Pension shall be made to individuals described in Subsection b. below, payable the first of the month following date of death, provided the Participant meets the following requirements:

    1. He had, as a result of actual work in Covered Employment, earned two quarters of Credited Current Service in the two-consecutive-Calendar-Year period immediately prior to the Calendar Year in which he died, and
    2. He had earned 10 Years of Credited Service, excluding any Credited Service canceled due to a Permanent Break in Service, Credited Current Service earned in Continuous Non-Covered Employment, or he was eligible for an Early Retirement Pension
  1. The Pre-Retirement Death Benefit shall be payable to individuals in the following order of preference:
    1. The Participant’s surviving legal spouse.
    2. If upon the death of a Participant, there is no surviving legal spouse, or if the Participant’s legal spouse dies before the receipt of 60 monthly payments, then the 60 monthly payments or any remainder thereof shall become payable in equal shares to the Participant’s surviving children who were younger than age 19 (or under age 23 if full-time students at an accredited educational institution and dependent upon the Participant for 50% of their financial support) on the date of the Participant’s death.
    3. If, upon the death of a Participant, there is no surviving legal spouse or surviving children or if they die before the receipt of 60 monthly payments, then the 60 monthly payments or any remainder thereof shall become payable to the Participant’s designated Beneficiary

      A Participant may designate a Beneficiary to receive payments not otherwise due a surviving legal spouse or surviving children under Section 8.01 by forwarding such designation on a form acceptable to the Trustees. A Participant shall have the right to change his designation of Beneficiary without the consent of the Beneficiary, but no change shall be effective or binding on the Trustees unless it is received by the Trustees prior to the time any payments are made to the Beneficiary whose designation is on file with the Trustees.
    4. If, upon the death of the Participant, there is no surviving legal spouse, surviving children or designated Beneficiary or if they die before the receipt of 60 monthly payments, then the 60 monthly payments or any remainder thereof shall become payable to any person who is an object of natural bounty of the Participant or to his estate, as the Board of Trustees in its sole discretion, may designate.
  2. In no event will the benefit under Section 8.01 exceed the aggregate of 60 payments made to any and all parties described in Subsection b. In addition, the total value of any pension payments received by the deceased Participant during a previous period of retirement shall be deducted from the value of the 60 monthly payments otherwise due the deceased Participant’s surviving legal spouse, children, Beneficiary or estate.
  3. The benefits provided by this Section shall not be payable if payments are due under the Husband-and-Wife Pension. However, if the beneficiary under this Section is the Participant’s surviving legal spouse, and is entitled to a pre-retirement survivor’s pension under Section 7.05, no death benefits shall be payable under this Section unless the surviving legal spouse so elects, in accordance with Section 7.05.c.

Pre-Retirement Lump Sum Death Benefit
If a Participant dies on or after April 1, 1981, and before his Annuity Starting Date, a Lump Sum Death Benefit will be paid to the Participant’s surviving legal spouse in an amount equal to $100 for each full year of Credited Current Service, not to exceed $3,500, provided the following requirements are met:

  1. He had earned 10 years of Credited Current Service excluding any Years of Credited Service canceled due to a Permanent Break in Service, and
  2. The surviving legal spouse is not entitled to benefits under any other provision of this Pension Plan. If upon the death of a Participant, there is no legal spouse then living, then the Lump Sum Benefit shall become payable to the Participant’s surviving children younger than age 19. If there is no surviving legal spouse or no surviving children younger than age 19, no Lump Sum Benefit shall be paid.

Pensioners’ Benefits Guaranteed for Thirty-Six Months

If a Pensioner dies prior to receiving thirty-six monthly payments, then the monthly benefit to which he was entitled shall be continued to his Beneficiary until an aggregate of 36 payments have been made to the Pensioner and his Beneficiary.

  1. Exception
    1. This benefit shall not be payable if payments were due under the Husband-and-Wife Pension or the Five-Year Guarantee Option, or Ten-Year Guarantee Option, 75% Survivor Option or 100% Survivor Option.
    2. This benefit shall be payable in the amount, if any, by which payments on a Level Income Option total less than 36 times the monthly amount to which the Pensioner would have been entitled to under Section 8.03 had he not elected the Level Income Option. This benefit shall be payable in monthly installments equal to the amount to which the Pensioner would have been entitled if he had not elected such Option.
  2. Beneficiary
    1. A Pensioner may designate the Beneficiary to receive any payments due under this Section by forwarding such designation on a form acceptable to the Trustees. A Pensioner shall have the right to change his designation of Beneficiary without the consent of the Beneficiary, but no such change shall be effective or binding on the Trustees unless it is received by the Trustees prior to the time any payments are made to the beneficiary whose designation is on file with the Trustees.
    2. If the designated Beneficiary is not alive at the time any payment under this Section is due, benefits provided under this Section shall be paid to any person who is an object of natural bounty of the Pensioner; or to his estate, as the Board of Trustees, in its sole discretion, may designate.
    3. A married Pensioner who designates anyone other than his spouse as Beneficiary shall be required to obtain his spouse’s consent to such designation or any change in such designation as provided in Article 7.
    4. Any designation of a spouse as Beneficiary is automatically revoked upon entry of a final decree of marital dissolution, unless a Qualified Domestic Relations Order provides otherwise.

Five- or Ten-Year Guarantee Option

In lieu of the pension otherwise available to him, a Participant may elect to receive a lifetime pension with payments guaranteed for five or ten years.

The amount of the monthly pension to a Participant selecting the Five-Year Guarantee Option shall be 98% of the amount determined from Sections 3.03, 3.05 or 3.14, whichever is appropriate, if he is age 65. This factor is increased by .2 percentage point for each full year the Participant is younger than age 65, subject to a maximum factor of 99%, or decreased by .7 percentage points for each full year the Participant is older than age 65.

The amount of the monthly pension to a Participant selecting the Ten-Year Guarantee Option shall be 92% of the amount determined from Sections 3.03, 3.05 or 3.14, whichever is appropriate, if he is age 65. This factor is increased by 1.1 percentage points for each full year the Participant is younger than age 65, subject to a maximum factor of 99%, or decreased by 2.5 percentage points for each full year the Participant is older than age 65.

If the Participant dies before receiving 60 or 120 pension payments, as the case may be, payments will continue to his Beneficiary until an aggregate of 60 or 120 payments have been made to the Pensioner and his Beneficiary.

This Option is not available to a Participant who is retiring on a Disability Pension.

  1. Election and Revocation
    1. Election of either Guarantee Option must be made in writing in a form prescribed by the Trustees and filed with the Trustees prior to the date the first pension payment is made. However, for those who retired prior to January 1, 2004 the Ten-Year Guarantee Option will not take effect for 24 months after it is elected, if the Participant’s Pension is effective on or after January 1, 1981. Unless and until the Option takes effect, benefits shall be payable in the normal form (the Pensioners’ benefits guaranteed for thirty-six months as in Section 8.03), as if the Option had not been elected. Otherwise, the Ten-Year Guarantee will begin with the twenty fifth month after the Participants pension is effective.
    2. A Guarantee Option may be revoked if the revocation is made in writing on a form prescribed by the Trustees and filed with the Trustees prior to the date the first pension payment is made
  2. Beneficiary
    1. A Pensioner may designate the Beneficiary to receive any payments due under this Option by forwarding such designation on a form acceptable to the Trustees. A Pensioner shall have the right to change his designation of Beneficiary without the consent of the Beneficiary, but no such change shall be effective or binding on the Trustees unless it is received by the Trustees prior to the time any payments are made to the Beneficiary whose designation is on file with the Trustees.
    2. If the designated Beneficiary is not alive at the time any payment under this Option is due, benefits provided under this Option shall be paid to any person who is an object of natural bounty of the Pensioner; or to his estate, as the Board of Trustees, in its sole discretion, may designate.
    3. A married Pensioner who designates anyone other than his spouse as Beneficiary shall be required to obtain his spouse’s consent to such designation or any change in such designation as provided in Article 7.
    4. Any designation of a spouse as Beneficiary is automatically revoked upon entry of a final decree of marital dissolution, unless a Qualified Domestic Relations Order provides otherwise.

Death of an Eligible Participant Before Retirement

  1. If the Participant’s death occurs after attaining age 55, the surviving legal spouse shall be paid a survivor’s pension as if the Participant had retired on a Husband-and-Wife Pension on the day before death. If the Participant’s death occurs before attaining age 55, the surviving spouse shall be paid a survivor’s pension commencing with the month following the month in which the Participant would have attained age 55 had the Participant lived, and the amount of such pension shall be determined as if the Participant had left Covered Employment on the date of death (or the date the Participant last worked in Covered Employment if earlier), retired on a Husband-and-Wife Pension upon attaining age 55 and died on the last day of the month in which his earliest retirement age was reached.

    This Section shall also apply to an inactive Participant who has achieved Vested Status, had one or more Hours of Service on or after September 2, 1974 and dies after August 22, 1984.
  2. Notwithstanding any other provision of this Article, a survivor’s pension shall not be paid in the form, manner or amount described above if one of the alternatives set forth in this Subsection apply.
    1. If the Actuarial Present Value of the spouse’s benefit is $5,000 or less, the Board shall make a single-sum payment to the legal spouse in an amount equal to that Actuarial Present Value in full discharge of the pre-retirement survivor’s pension.
    2. The Spouse may elect in writing, filed with the Board, and on whatever form it may prescribe, to defer commencement of the survivor’s pension until a specified date that is no later than the first of the month on or immediately following the date the Participant would have attained Normal Retirement Age. The amount payable at that time shall be determined as described in Subsection a. above, except that the benefit shall be paid in accordance with the terms of the Plan in effect when the Participant last worked in Covered Employment, as if the Participant had retired with a Husband-and-Wife Pension on the day before the legal spouse’s payments are scheduled to start, and died the next day.
    3. Payment of the survivor’s pension must start no later than December 1 of the Calendar Year in which the Participant would have reached age 70 1/2 or, if later, December 1 of the Calendar Year following the year of the Participant’s death. If the Board confirms the identity and whereabouts of a surviving spouse who has not applied for benefits by that time, payments to that surviving Spouse in the form of a single life annuity (subject to the provisions of paragraph 1) will begin automatically as of that date.
  3. Notwithstanding any other provisions of the Plan, if the Annuity Starting Date for the survivor’s pension is after the Participant’s earliest retirement date, the benefit shall be determined as if the Participant had died on the spouse’s Annuity Starting Date after retiring with a Husband-and-Wife Pension the day before, taking into account any actuarial adjustments to the Participant’s accrued benefit that would have applied as of that date.
  4. If a surviving spouse dies before the Annuity Starting Date of the survivor’s pension, that benefit will be forfeited and there will be no payments to any other party.
  5. A surviving legal spouse who is the Participant’s Beneficiary under Section 8.01 may elect to receive the death benefits as provided in that Section. In that case, the Actuarial Present Value of the survivor’s pension shall be reduced (but not below zero) by the Actuarial Present Value of those death benefits, and any remaining value of the survivor’s pension shall be paid in a single sum as the sixty-first payment.

Adjustment of Pension Amount

  1. For a Participant who is eligible for a Regular, Early or Service Pension, the Husband-and-Wife Pension shall be 89% of the amount determined from Section 3.03, 3.05, or 3.14, whichever is appropriate, if the Participant and spouse are the same age. The factor is increased by .4 percentage points for each full year the spouse is older than the Participant, subject to a maximum factor of 99%, or decreased by .4 percentage points for each full year that the spouse is younger than the Participant.

    For a Participant who is eligible for a Service Pension, the factor determined in the paragraph above shall be increased by .5 percentage points if the Participant is age 45. The factor is reduced by .5 percentage points for each full year the Participant is older than age 45; or increased by .5 percentage points for each full year younger than age 45. Such increase thus determined when added to the adjustment factor above shall not exceed 99%.
  2. For a Participant who is eligible for a Disability Pension, the Husband-and-Wife Pension shall be 79% of the amount determined from Section 3.07, if the Participant and spouse are the same age. The factor is increased by .4 percentage points for each full year the spouse is older than the Participant, subject to a maximum factor of 99%, or decreased by .4 percentage points for each full year that the spouse is younger than the Participant.

    The factor determined in the paragraph above shall be increased by 2.5 percentage points if the Participant is age 45. The factor is reduced by .25 percentage points for each full year the Participant is older than age 45; or increased by .75 percentage points for each full year younger than age 45. Such increase when added to the adjustment factor above shall not exceed 99%.

Additional Conditions
A Husband-and-Wife Pension is not effective under any of the following circumstances:

  1. A Husband-and-Wife Pension shall not be effective in the case of the surviving legal spouse of a Participant who is not a Pensioner (i.e. a pre-retirement death situation) unless the spouse was married to the Participant throughout the year preceding the Participant’s death.
  2. A Husband-and-Wife Pension (i.e. post-retirement situation) shall not be effective in the case of the surviving legal spouse of a Pensioner unless the Pensioner and spouse were married to each other on the Annuity Starting Date of the Participant’s pension, and for at least a one-year period of time before the Pensioner’s death.
  3. Subject to the requirements for documentation described in Section 7.03, the Participant must file, before his Annuity Starting Date, a written representation, on which the Board is entitled to rely, concerning that Participant’s marital status which, if false, gives the Board the discretionary right to adjust the dollar amount of the pension payments made to the Participant or “surviving spouse” so as to recoup any excess benefits which may have been erroneously paid.
  4. An election or revocation of a Husband-and-Wife Pension must be:
    1. made (or revoked) prior to the Annuity Starting Date;
    2. made on forms furnished by the Administrative Office; and
    3. filed with the Administrative Office.
  5. A Husband-and-Wife Pension, once payable, may not be revoked or the Pensioner’s benefits increased, by reason of the subsequent divorce of the spouse from the Pensioner or the spouse predeceasing the Pensioner.
  6. The rights of a prior spouse or other family member to any share of a Participant’s pension, as set forth under a qualified domestic relations order, shall take precedence over any claims of the Participant’s surviving legal spouse at the time of retirement or death.

Optional Survivor’s Benefit
In lieu of any other form of Pension otherwise payable to him, a Participant entitled to a Regular, Early Retirement or Service Pension may elect to receive an optional survivors’ benefit, in accordance with which he will receive a lower monthly amount with the provision that 100% or 75% of that lower amount (whichever the Participant elects) is continued after his death for the lifetime of the surviving legal spouse. The amount payable to the Pensioner who has elected this Option shall be determined as follows:

  1. 100% Survivor Option - The pension amount shall be 80% of the amount determined from Section 3.03, 3.05 or 3.14, whichever is appropriate, if the Participant and legal spouse are the same age. The factor is increased by .6 percentage points for each full year the legal spouse is older than the Participant, subject to a maximum factor of 99%; or decreased by .6 percentage point for each full year the legal spouse is younger than the Participant.
  2. 75% Survivor Option - The pension amount shall be 84.5% of the amount determined from Section 3.03, 3.05 or 3.14, whichever is appropriate, if the Participant and legal spouse are the same age. The factor is increased by .5 percentage points for each full year the legal spouse is older than the Participant, subject to a maximum factor of 99%; or decreased by .5 percentage points for each full year the legal spouse is younger than the Participant.

Election of the Optional Survivors’ Benefit must be made in writing in the form prescribed by the Trustees and filed with the Trustees prior to the date the first Pension payment is made. The Optional Survivors’ Benefit shall take effect only if the Pensioner and his surviving legal spouse are both alive on the date when it is otherwise to take effect.

Once elected, the Optional Survivors’ Benefit may not be revoked, unless the revocation is made in writing in a form prescribed by the Trustees and filed with the Trustees prior to the date the first Pension payment is made.

The Optional Survivors’ Benefit shall not be available if it would result in a monthly benefit of less than $20 to the Pensioner or surviving legal spouse.

Except for the amount of benefit, the conditions applicable to the Husband-and-Wife Pension as described in Section 7.07 shall apply to the Optional Survivor’s Benefit.

Beneficiary of a Pensioner Receiving Benefits for Thirty-Six Months, Five or Ten Years

  1. A Pensioner may designate the Beneficiary to receive any payments due under Section 8.03 by forwarding such designation on a form acceptable to the Trustees. A Pensioner shall have the right to change his designation of Beneficiary without the consent of the Beneficiary, but no such change shall be effective or binding on the Trustees unless it is received by the Trustees prior to the time any payments are made to the Beneficiary whose designation is on file with the Trustees.
  2. If the designated Beneficiary is not alive at the time any payment under Section 8.03 is due, benefits provided under Section 8.03 shall be paid to any person who is an object of natural bounty of the Pensioner; or to his estate, as the Board of Trustees, in its sole discretion, may designate.
  3. A married Pensioner who designates anyone other than his spouse as Beneficiary shall be required to obtain his spouse’s consent to such designation or any change in such designation as provided in Article 7.
  4. Any designation of a spouse as Beneficiary is automatically revoked upon entry of a final decree of marital dissolution, unless a Qualified Domestic Relations Order provides otherwise

Download the Death Benefit Application

References to specific section(s) of the Plan can be found in the Official Plan Document under Plan Documents on this website.

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