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Pension Plan

 
Benefit Calculations

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.

Amount of Regular Pension
Effective for pensions with Annuity Starting Dates on or after January 1, 2003, the amount of a Regular Pension shall be determined in accordance with the provisions of this Section 3.03.

  1. If there has been no Separation from Covered Employment, the amount of the Regular Pension shall be a monthly amount equal to the sum of (1), (2), (3), (4), (5), (6), and (7) below:
    1. $10.00 for each Contributory Benefit Unit or a proportionate amount for any fraction thereof earned by the Participant on or after January 1, 1960 through December 31, 1969.
    2. $83.33 for each Contributory Benefit Unit or a proportionate amounts for any fraction thereof (not to exceed a maximum of 17 Contributory Benefit Units for this period) earned by the Participant on or after January 1, 1970 through December 31, 1986.
    3. With respect to work in Covered Employment on or after January 1, 1987 (or his Contribution Date if later) through December 31, 1998, whenever a Participant has (i) at least 400 Hours of Service in Covered Employment during a Calendar Year, or (ii) has earned a Year of Credited Service including hours of Continuous Non-Covered Employment during a Calendar Year, the monthly amount shall be 4.3% of Contributions required to be made for the particular Calendar Year.
    4. With respect to work in Covered Employment on or after January 1, 1999 (or his Contribution Date if later) through December 31, 1999, whenever a Participant has (i) at least 400 Hours of Service in Covered Employment during a Calendar Year, or (ii) has earned a Year of Credited Service including hours of Continuous Non-Covered Employment during a Calendar Year, the monthly amount shall be 3.5% of Contributions required to be made for the particular Calendar Year.
    5. With respect to work in Covered Employment on or after January 1, 2000 (or his Contribution Date if later) through December 31, 2002, whenever a Participant has (i) at least 400 Hours of Service in Covered Employment during a Calendar Year or (ii) has earned a Year of Credited Service including hours of Continuous Non-Covered Employment during a Calendar Year, the monthly amount shall be 3.0% of Contributions required to be made for the particular Calendar Year.
    6. With respect to work in Covered Employment on or after January 1, 2003 (or his Contribution Date if later) through December 31, 2003, whenever a Participant has (i) at least 400 Hours of Service in Covered Employment during a Calendar Year or (ii) has earned a Year of Credited Service including hours of Continuous Non-Covered Employment during a Calendar Year, the monthly amount shall be as follows:
      1. 3.0% of Contributions required to be made on or after January 1, 2003 through June 30, 2003,
      2. 1.0% of Contributions required to be made on or after July 1, 2003 through December 31, 2003.
    7. With respect to work to Covered Employment on or after January 1, 2004 (or his Contribution Date if later), whenever a Participant has (i) at least 400 Hours of Service in Covered Employment during a Calendar Year or (ii) has earned a Year of Credited Service including hours of Continuous Non-Covered Employment during a Calendar Year, the monthly amount shall be 1.0% of Contributions required to be made for the particular Calendar Year.
    8. Exceptions:
      1. Benefits for periods prior to January 1, 1994 as described in (1) and (2) above, shall be in lieu of any benefit determined under Section 3.03.a. of the Plan in effect prior to January 1, 1994. However, in no event shall the current formula covering that time period produce a benefit that is less than that which would have been determined under Section 3.03.a. of the Plan in effect prior to January 1, 1994 for that same time period.
      2. Benefits for the period January 1, 1987 through December 31, 1993 as described in (2) above shall be in lieu of any benefit determined under Section 3.03.a. in effect prior to January 1, 1998 for that time period. However, in no event shall the current formula covering that time period produce a benefit that is less than that which would have been determined under Section 3.03.a. of the Plan in effect prior to January 1, 1998 for that same time period.
  2. If there has been a Separation from Covered Employment, the Regular Pension shall be a monthly amount equal to the sum of (1) and (2) below:
    1. For work in Covered Employment which follows the most recent Separation from Covered Employment, the Regular Pension shall be a monthly amount determined in accordance with a. above; and
    2. For work in Covered Employment, which precedes the most recent or any prior Separation from Covered Employment, a monthly amount determined in accordance with the terms of the Plan at the end of the period, which caused the Separation from Covered Employment.

Amount of the Early Retirement Pension
The Early Retirement Pension shall be a monthly amount determined as follows:

  1. The first step is to determine the amount of the Regular Pension to which the Participant would be entitled if he were 65 years of age at the time his Early Retirement Pension is to be effective. 
  2. The second step, to take account of the fact that the Participant is younger than 65, is to reduce the first amount by 1/2 of 1% for each month that the Participant is younger than 65 on the effective date of his Early Retirement Pension. 

Amount of the Service Pension
The monthly amount of a Service Pension is the same as the monthly amount of the Regular Pension.

Rounding of Benefit Amounts
If the amount of any monthly benefit payable under the Plan is not a multiple of $.50 the amount shall be rounded up to the next multiple of $.50.

Upon Retirement
Pensions of all married Participants shall be paid in the form of a Husband-and-Wife Pension, unless the Participant has filed with the Board, in writing, a timely rejection of that form of pension, subject to all of the conditions of this Section.

  1. No rejection shall be effective unless the legal spouse of the Participant has consented in writing to such rejection, and acknowledged the effect thereof, and such rejection is witnessed by a Notary Public. No consent shall be required if it has been established to the satisfaction of the Board that there is no legal spouse or the legal spouse cannot be located or if such consent cannot be obtained for extenuating reasons satisfactory to the Board.
  2. The Board shall provide to each Participant, no less than 30 days and nor more than 90 days before the Annuity Starting Date, a written explanation of the terms and conditions of the Husband-and-Wife Pension and the effect of the rejection of such pension. A Participant (with any applicable spousal consent) may waive the requirement that the written explanation be provided at least 30 days before the Annuity Starting Date if the Participant’s pension commences more than 7 days after the written explanation is provided.
  3. A Participant and his legal spouse may reject the Husband-and-Wife Pension (or revoke a previous rejection) at any time not more than 90 days before the Annuity Starting Date; that is, before the first day of the first month for which a pension is payable. However, the rejection period shall end on the 30th day after the date on which the written explanation is provided, if the written explanation is provided after the Annuity Starting Date.
  4. The 50% Husband-and-Wife Pension may be waived, without consent of the legal spouse, in favor of any other form of pension for which the Participant qualifies under the Plan if it would provide the Participant’s spouse with a lifetime pension for the period, if any, that the spouse survives the Participant, no additional conditions are imposed on the spouse’s right to the benefit, and the amount of such survivor pension would be greater than the amount that would be payable as a 50% Husband-and-Wife Pension.

Retirement on a Disability or Service Pension Before Age 55
If the Annuity Starting Date of a married Participant’s Husband-and-Wife Pension occurs before the Participant attains 55, payment to the surviving legal spouse, if any, will start on the later of (a) the first of the month following the death of the Pensioner, or (b) the first of the month following the date when the Pensioner would have attained age 55 had the Pensioner lived.

Adjustment of Pension Amount
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, above, 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.

Postponement of Annuity Starting Date
Effective January 1, 1987, a Participant who is or becomes employed in any capacity with a non-contributing employer in the painting and/or drywall taping industries, excepting a governmental agency, shall have his pension benefits curtailed in the following manner:

  1. For each Calendar Year quarter on or after January 1, 1987 in which he has worked one or more hours for a non-contributing employer, a Participant who has not Retired and has not yet attained his Normal Retirement Age shall have his earliest Annuity Starting Date (except for the filing of an application) for an Early Retirement Pension (per Section 3.04), Service Pension (per Section 3.13), or Deferred Vested Pension (per Section 3.15) postponed for six months.
  2. A Participant who has not retired will not be eligible for a Disability Pension (per Section 3.06) if he worked for a non-contributing employer during the Plan Year he became disabled or the two preceding Plan Years.
  3. Exception: Effective September 1, 2001, a Participant shall not have his Annuity Starting Date postponed as described in Subsection a. provided he satisfies all of the following requirements:
    1. The Participant must have earned at least 20 Benefit Units prior to the date that he became employed with the non-contributing employer in the painting and/or drywall taping industries; and
    2. The non-contributing employer must have subsequently become a Contributing Employer; and
    3. The Participant must have no termination in employment with the Contributing Employer in question between the periods of covered and non-covered employment. (i.e. work while the Employer was not a Contributing Employer).
    4. The Participant must – after the non-contributing employer becomes a Contributing Employer – earned at least five Benefit Units based solely on service with that Employer.

Benefit Payments Generally
A Participant who is eligible to receive benefits under this Plan and makes application in accordance with the rules of this Pension Plan shall be entitled upon Retirement to receive the monthly benefits provided for the remainder of his life, subject to the provisions of this Plan. Benefit payments shall be payable commencing with the first day of the month following the month in which the Participant has fulfilled all the conditions of entitlement to benefits including the filing of an application. Such first day is the meaning of the term, the “Annuity Starting Date” of the Participant’s pension.

However, in no event, unless the Participant elects otherwise, shall the payment of benefits begin later than the 60th day after the later of the close of the plan year in which:

  1. The Participant attains Normal Retirement Age, or
  2. The Participant terminates his Covered Employment and retires, as that term is defined in Section 11.13.

A Participant may, however, elect in writing filed with the Board, to receive benefits first payable for a later month, provided that no such election filed on or after December 31, 1984, may postpone the commencement of benefits to a date no later than the Required Beginning Date.

If a Participant’s beneficiary is not his surviving legal spouse, the payment of any benefits under the Plan that become payable on account of the Participant’s death shall begin no later than one year from the date of such death or, if later, as soon as practicable after the Board learns of the death.

Pension payments to the Pensioner shall not be made in a form other than equal monthly installments for the Pensioner’s lifetime, except as provided in Section 11.08, or to effect (1) retroactive adjustments or (2) increases in the monthly pension amount applicable to all Pensioners in a specified class.

Pension payments shall end with the payment for the month in which the death of the Pensioner occurs except as provided in accordance with a Husband-and-Wife Pension, Optional Survivor’s Benefit or if applicable, upon the completion of the guaranteed payments provided for in Sections 8.03 and 8.04. or the Optional Survivor Benefit provided for in Section 8.05.

Except for an involuntary cash out permitted under Section 11.11, distribution of a Participant’s accrued benefit shall not be involuntarily made or commence before the Participant attains Normal Retirement Age.

Lump-Sum Payment in Lieu of Monthly Benefit
If at the time, a monthly benefit becomes payable to a Participant, surviving legal spouse or Beneficiary, the Actuarial Present Value of the benefit is no more than $5,000, the Board shall pay to the Participant, or surviving legal spouse or beneficiary a lump-sum payment in lieu of the monthly benefit otherwise payable.

For purposes of this Section, the Actuarial Present Value shall be determined in accordance with Section 1.01, except that the following procedure shall apply to benefits payable to a Participant on his Annuity Starting Date if it results in a larger lump-sum amount.

  1. For a Participant who is eligible for a Regular, Early, Service or Deferred Vested Pension, the lump-sum amount shall be $118.00 for each $1.00 of monthly pension benefit if the Participant is age 60. The factor is increased by $.18 for each month the Participant is younger than age 60; or decreased by $.23 for each month the Participant is older than age 60.
  2. For a Participant who is eligible for a Disability Pension, the lump-sum amount shall be $99.00 for each $1.00 of monthly pension benefit if the Participant is age 45. The factor is increased by $.04 for each month the Participant is younger than age 45; or decreased by $.11 for each month the Participant is older than age 45. 

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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ContactEmail:
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