A GUIDE TO YOUR DEFINED BENEFIT PENSION PLAN

GLOSSARY

A

A Journeyman Bonus Credits - a rate that is 1/3 of the current Benefit Rate added to Benefit Rate that is applied to active A Journeyman participants that are vested  and continue to work after reaching the Normal Retirement Age of 62 or by meeting the Rule of 85.

Accrued Benefit - the Pension benefit which has accrued on a Vested Employee's behalf and which is payable at Normal Retirement Age.

Active Participant - a person who is working in Covered Employment.

Agreement and Declaration of Trust - the Agreement and Declaration of Trust establishing the Electrical Workers Local No. 26 Pension Trust Fund originally entered into as of July 1, 1961, as amended and restated.

Annuity - a payment made every month in the same dollar amount.

Annuity Starting Date - the first day of the first month for which an Employee is entitled to receive benefits under the Plan.

Avoid (Bridge) a One Year Break-in-Service - a One Year Break-in-Service may be bridged for the following reasons: disability (up to a maximum of three years), unemployment (up to two years), strikes and lockouts, military service, or absence due to pregnancy, childbirth, adoption or infant care. 

B

Bargaining Unit Alumni - a person who formerly was an Active Participant in the Plan, who earned a Vested pension and who now works for a contributing employer in a capacity not covered by the Collective Bargaining Agreement.

Beneficiary(ies) - person(s) designated by the participant to receive all or a portion of any available death benefits in the Pension Plan. 

Benefit Hour of Service - an hour for which an Employer makes Employer Contributions or is obligated to make Employer Contributions into the Pension Fund on behalf of an Employee.

Benefit Rate - a rate determined by the Board of Trustees used to determine a future pension benefit by multiplying by the Benefit Unit. There are different Benefit Rates for A-Journeyman and Residential Wireman.

Benefit Units - the number of actual Years of Participation in the Plan or the number of years and quarters by dividing total benefit hours by 1600 (whichever is less).

C

Collective Bargaining Agreement - typically an agreement negotiated between the Union  and Employers.

Covered Employment - a job covered by a Collective Bargaining Agreement between your employer and IBEW Local 26 that requires your employer to make contributions on your behalf to the Pension Plan.

Credit by Hours - determined by dividing your total benefit hours by 1600.

Credit by Years - the number of actual Years of Participation in the Plan.

E

Electronic Reciprocal Transfer System (ERTS) - a program that allows participants who may be working in another IBEW Local's jurisdiction  to choose where their pension contributions are sent (their home local) or reciprocated.

Employee - Employee of an Employer for whom Employer contributions are made, or required to be made to this Plan pursuant to the terms of an agreement with the Union or the Pension Fund.

Employer - is contractually obligated to make employer contributions to this plan for their employees.

Employer Contributions - the monies that an Employer is obligated to pay to the Pension Fund pursuant to the terms of a written agreement with the Union or the Pension Fund on behalf of the Employees in Covered Employment.

M

Military Service - the period of time during which an Employee leaves Covered Employment, or if prior to July 1, 1961 leaves employment under the jurisdiction of the Union, to enter the United States Armed Forces.

Minimum of 400 hours  - to avoid a break-in-service, you must work a minimum of 400 hours each calendar year.

N

Normal Retirement Age - the date on which a Vested Employee attains age 62, or the date vested if over age 62.

O

One Year Break-in-Service - a year with less than 400 Vesting hours of service.

P

P Credit - calculate benefit amount using A Journeyman Rate.

Pension Fund - the Electrical Workers Local No. 26 Pension Trust Fund.

Pensioner - an Employee who has begun to receive and is still receiving benefits under the Plan.

Permanent Break-in-Service - an employee who has not been credited with at least five (5) Years of Vesting Service and who has incurred five (5) consecutive One Year Breaks-in-Service shall have all Years of Vesting Service earned prior to such time permanently canceled (forfeited).

Personal Representative - someone you designate to act on your behalf. 

Plan - the Electrical Workers Local No. 26 Pension Plan, as amended.

Plan Year - the period from January 1 through December 31.

Pop-up-Provision - will increase your benefit from a Joint & Survivor Pension amount if your spouse pre-deceases you.

Prohibited Employment - as a Pensioner you cannot work more than 39 hours in a month in the electrical business, either union or non-union, in any capacity in the Local 26 jurisdictional area while receiving a pension from this Plan.

Q

Qualified Domestic Relations Order (QDRO) - a court order that may award certain portions of your Pension benefits to your former spouse.

R

R Credit - calculate benefit amount using Residential Wireman Rate.

Required Minimum Distribution (RMD) - pension benefit must commence by April 1 of the calendar year following the later of (1) the calendar year in which the Employee attains age 70 1/2 or (2) the calendar year in which the Employee retires.

Retirement - the complete, continued, and final cessation of work in Covered Employment.

Rollover - you may elect to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan or individual retirement account (IRA). 

S

Spouse - the term “Spouse” shall mean, with respect to an individual, the person to whom such individual is lawfully married in a binding marriage in accordance with the laws of a State of the United States or the District of Columbia, or, in the case of a marriage outside the United States, the person to whom such individual is lawfully married in a binding marriage in accordance with the laws of such foreign jurisdiction that the Trustees determine to be consistent with the public policy of the United States.

Suspension of Benefits - no benefits shall be payable for any month in which a Pensioner is employed in "Prohibited Employment".

T

The Rule of 85 - eligible to receive an unreduced pension if your age plus your Years of Vesting Service add up to 85 or more.

Totally & Permanently Disabled - inability to work in covered employment as a result of an unavoidable injury or illness while working in covered employment or within six months of leaving covered employment.

Trustees - persons who have accepted appointment to act as Trustees in accordance with the provisions of the Plan Rules and federal laws.

U

Union - the International Brotherhood of Electrical Workers Local No. 26.

V

Vested - you become fully (100%) Vested when you have five years of Vesting Service.  Once fully Vested, your right to a Pension benefit cannot be taken away.

Vesting Hour of Service - an hour for which an employee is paid for the performance of duties in Covered Employment.

W

Work After Retirement - as a Pensioner you can work up to 39 hours in a month in the electrical business, either union or non-union, in any capacity in the Local 26 jurisdictional area while receiving a pension from this Plan.

Y

Years of Participation - the number of full years between when you first begin participation, and when you last participate, not including any years in which you worked less than 400 hours.

Years of Vesting Service - you earn one Year of Vesting Service for each calendar year in which you work at least 1600 hours in Covered Employment.