TYPES OF PENSION

Normal Pension

You will be eligible to retire with a normal pension if you are an Active Participant with at least five Years of Vesting Service the day you reach Normal Retirement Age, age 62. Assuming you have no Breaks in Service, the formula for a normal pension is:

Benefit Units

x

Benefit Rate

=

Monthly Pension Benefit

Depending on your marital status when you retire, this amount may be adjusted to reflect your form of payment.

EXAMPLE #1: NORMAL PENSION WITH NO BREAKS-IN-SERVICE

Derek is 62 and retires on July 1, 2014, with 10 Benefit Units and no breaks-
in-service. Derek is not married. Derek’s normal pension will be calculated 
as follows:

Benefit Units

x

Benefit Rate

=

Monthly Pension Benefit

10

$90.00

$900.00

EXAMPLE #2: NORMAL PENSION WITH TEMPORARY BREAKS-IN-SERVICE

Joe is 62 and retires on July 1, 2014 with 20.5 Benefit Units and two temporary breaks-in-service. Joe’s normal pension will be calculated by multiplying his benefit credits by the rate in effect before each of his breaks-in-service and then adding the benefit amounts together.

Benefit Units

x

Benefit Rate

=

Monthly Pension Benefit

2.5

2007 rate of $82.00

$205.00

3

2008 rate of $85.00

+ $255.00

15

2014 rate of $90.00

$1,350.00
20.5   $1,810.00

Joe’s monthly benefit is $1,810.00. If he is married, his benefit will be converted to a Joint & Survivor Pension. If he is not married, he will receive a Monthly Lifetime Pension with 60 Months Guaranteed. These types of benefits are explained further in the Section of this SPD entitled “Forms of Payment.”

Without any breaks-in-service, all of Joe’s 20.5 Benefit Units would be at $90.00, making his benefit $1,845.00.

EXAMPLE #3: RESIDENTIAL WIREMAN WITH BOTH TYPES OF 
BENEFIT UNITS

Anita is 62 and retires on July 1, 2014 with a total of eight Benefit Units: four Residential Wireman and four A Journeyman Wireman. Her benefit is calculated as follows:

Benefit Units

x

Benefit Rate

=

Monthly Pension Benefit

4

2014 Residential Wireman 
rate of $24.00

$96.00

4

2014 A Journeyman Wireman 
rate of $90.00

$360.00

8

 

$456.00

Anita’s monthly benefit is $456.00. If she is married, her benefit will be converted to a Joint & Survivor Pension. If she is not married, she will receive a Monthly Lifetime Pension with 60 Months Guaranteed. These types of benefit are explained further in the Section of this SPD entitled “Forms of Payment.”

Rule of 85

The Plan includes an important feature referred to as “The Rule of 85,” which enables you to receive an unreduced pension if your age (at your most recent birthday) and Years of Vesting Service add up to 85 or more. This means you will receive the same amount of money as if you retired at normal retirement, age 62.

WHEN DO I MEET THE RULE OF 85?

You meet the Rule of 85 when your age at your most recent birthday and your Years of Vesting Service add up to equal 85 or more.

EXAMPLE OF RULE OF 85

Ned retired on July 1, 2014, the day after his 54th birthday. He had 31 Years of Vesting Service and Benefit Units and no breaks-in-service.

Age: 54

+ Vesting Service: 31

= 85

Since he met the Rule of 85, Ned’s pension would be calculated as if it were a normal pension:

Benefit Units

x

2014 Benefit Rate

=

Monthly Pension Benefit

31

$90.00

$2,790.00

Thus, Ned’s unreduced pension amount would be $2,790.00.


Delayed Retirement—Bonus Credits

If you keep working in covered employment after you become eligible for the Rule of 85, or after your normal retirement date, then you will earn bonus credits in addition to your regular accrual (see the Delayed Retirement Bonus Credits located in the Section of this SPD entitled “Benefit Units and Rates.”)


EXAMPLE OF DELAYED RETIREMENT BONUS CREDITS

If Ned, in the example above, keeps working after he is age 54, then he will accrue a benefit in the future for the years after he met the Rule of 85 at the Bonus Credit rate, and all his years of service will be based upon the rates in effect when he retires. For example, if Ned worked until 2018 when he is age 58, his benefit at age 58 will be:

Benefit Units

x

Benefit Rate in 2014

=

Monthly Pension Benefit

31

Normal Pension Rate of $90.00

$2,790.00

4

Delayed/Bonus Rate of $120.00

$480.00

35

  $3,270.00

Ned’s monthly benefit is $3,270.00. By delaying his retirement Ned receives an additional $480.00 per month at retirement due to his additional 4 years under the Bonus Credit.