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Pension Plan

 
Breaks in Service

General

If a Participant has a Break in Service before he has become a Vested Participant, it has the effect of canceling his participation, previous Years of Credited Service, Benefit Units and accrued benefit. However, a Break in Service may be temporary, subject to repair by a sufficient amount of subsequent Credited Service. A longer Break in Service may be permanent. The Break in Service rule does not apply to a Pensioner or a Vested Participant.

  1. Permanent Breaks in Service Before January 1, 1976. After December 31, 1962 and before January 1, 1976, a Participant shall have incurred a Permanent Break in Service and his Credited Service and accrued benefits canceled, if he failed to earn at least one quarter of Credited Current Service as a result of Contributory Hours of work in a period of two consecutive Calendar Years after (i) December 31, 1962, or (ii) the December 31 following his Contribution Date, whichever is later.

    Exception: A Participant who had incurred a Permanent Break in Service prior to January 1, 1976, will have the Credited Current Service and Contributory Benefit Units canceled prior to that date reinstated, provided he returns to Covered Employment and earns at least five Contributory Benefit Units, without a Separation from Covered Employment.
  2. One-Year Break in Service After December 31, 1975.
    1. A Participant has a One-Year Break in Service in any Calendar Year after December 31, 1975 in which he fails to complete 400 Hours of Service.
    2. Hours of Service in Continuous Non-Covered Employment after December 31, 1975 shall be counted in determining whether a Break in Service has been incurred.
    3. A One-Year Break in Service is repairable, in the sense that its effects are eliminated if, before incurring a Permanent Break in Service, the Employee subsequently earns two quarters of Credited Service. More specifically, participation, previously earned Years of Credited Service, Benefit Units and accrued benefits are restored. Nothing in this paragraph (3) shall change the effect of a Permanent Break in Service.
  3. Permanent Break in Service After December 31, 1975 and Before January 1, 1985. A Participant shall have a Permanent Break in Service if he had consecutive One-Year Breaks in Service, including at least one after December 31, 1975, that equal or exceed the number of full Years of Credited Service which he had previously accumulated.
  4. Permanent Break in Service After December 31, 1984. A Participant shall have a Permanent Break in Service if he has consecutive One-Year Breaks in Service, including at least one after December 31, 1984, that equal the greater of five or the aggregate number of full Years of Credited Service which were previously accumulated.
  5. Effect of a Permanent Break in Service. If a person who has not achieved status as a Vested Participant has a Permanent Break in Service:
    1. His previous Years of Credited Service, Benefit Units, and accrued benefits are canceled, and
    2. His participation is canceled; new participation is subject to the provisions of Section 2.04.
  6. Grace Periods After the Contribution Date. A Participant who is absent from Covered Employment shall be allowed a grace period to prevent a One-Year Break in Service under the following conditions:
    1. Prior to January 1, 1976. If he was absent from Covered Employment, a Participant may be allowed a grace period, if he failed to earn at least one quarter of Credited Service in any period of two consecutive Calendar Years before January 1, 1976 if he:
      1. Was disabled;
      2. Was involuntarily unemployed;
      3. Was employed with a public agency in the type or kind of work covered by a Collective Bargaining Agreement and such work was performed in the geographical area covered by the Plan; or
      4. Was employed as a painter or taper in the geographic area covered by the Plan, with an employer, approved by the Trustees, who does not contribute to the Pension Trust Fund.
      With the exception of (c) above, such grace period shall not exceed three years.
    2. After December 31, 1975. If he is absent from Covered Employment and fails to complete at least 400 Hours of Service in a Calendar Year after December 31, 1975, a Participant may be allowed a grace period to prevent a One-Year Break in Service during that Calendar Year if, with the consent of the Union, he is employed with a public agency in a position covered by an agreement negotiated between the Union and that public agency.
    3. After December 31, 1985. If he is absent from Covered Employment after December 31, 1984, because of Maternity or Paternity Leave, a Participant shall be credited with a maximum of 501 Hours of Service for the period of such leave.

      "Maternity/Paternity Leave" Defined. A Participant shall be deemed to be on Maternity or Paternity Leave if the Participant is absent from work by reason of the pregnancy of the Participant, by reason of the birth of a child of the Participant, by reason of the placement of a child with the Participant in connection with the adoption of the child by such Participant, or for the purpose of caring for such child during the period immediately following such birth or placement.

A grace period does not add to a Participant’s Credited Service, Benefit Units or accrued benefit; it is a period that is to be disregarded in determining whether the Participant has worked sufficient hours in Covered Employment necessary to prevent one or more One-Year Breaks in Service leading to a Permanent Break in Service.

In order to secure the benefits of a grace period, a Participant must give written notice to the Board and must present such written evidence as the Board, in its sole discretion, determines.

Separation from Covered Employment

A Participant shall be deemed to have incurred a Separation from Covered Employment under the circumstances described below. Unless otherwise indicated, benefits accrued prior to a Separation from Covered Employment shall be subject to the Plan provisions in effect immediately prior to the Separation from Covered Employment. Benefits accrued after a Separation from Covered Employment shall be subject to the Plan provisions under the most recently amended Plan.

  1. A Participant will be deemed Separated from Covered Employment after December 31, 1975, at the end of any two consecutive Calendar Year period in which he does not work at least 400 Contributory Hours in either one of the two Calendar Years.
  2. A Participant will be deemed to have Separated from Covered Employment before January 1, 1976, if he failed to earn one-quarter year of Credited Service in a period of two consecutive Calendar Years as a result of Contributory Hours of work.

    Exception: If a Separation from Covered Employment is incurred, the Separation will be waived if the Participant returns to Covered Employment and earns an additional 5 Benefit Units.

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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