TYPES OF PENSION

Lump Sum Bonus

A special feature of the Plan is the lump sum bonus, which is a one-time payment of $2,500 on top of your pension benefit. If eligible, you will receive this bonus when you retire. To qualify:

  • you must be an Active Participant when you retire (meaning you cannot receive the bonus if you retire on a Deferred Pension); and
  •  you must be credited with at least 15 Years of Vesting Service and retire on or after your 62nd birthday, or
  •  You must be an Active Participant and satisfy the Rule of 85 (see Normal Pension).

If you retire on a Disability Pension, you will receive a lump sum bonus of $1,500 regardless of your age and Years of Vesting Service.

If you receive a lump sum bonus and later return to work covered by the Plan, you will be required to repay the lump sum amount paid to you when you initially retired. You can receive only one lump sum bonus.

If you are eligible to receive a lump sum under the Plan, lump sums may be eligible for a “rollover” from this Plan to another tax qualified plan. The “rollover” must occur within sixty (60) days of receipt and be transferred directly to the trustee of the successor plan. Consult with the Fund Office regarding whether your lump sum is eligible for “rollover” treatment, and consult with your financial representatives to determine whether the “rollover” option is something that is right for you.