Vesting

Becoming Vested

WHERE ARE THE DETAILS ABOUTBREAKS-IN-SERVICE?

To learn more about what qualifies as a Break-in-Service, please refer to pages Losing or Interrupting Vesting Service of this Section.

To receive “vesting,” you earn credits for Years of Vesting Service. Once you have five Years of Vesting Service (without a Permanent Break-in-Service, as explained in Losing or Interrupting Vesting Service) you have earned the right to a pension and are a fully vested participant.

The Plan considers there to be 1600 vesting hours in a calendar year. Generally, you must be credited with a minimum of 400 hours in a calendar year to earn at least partial vesting credit for a year. Unless certain circumstances apply, you will have a break-in-service if you work less than the required minimum hours. Your Years of Vesting Service are equal to whichever of the following is less:

  • the number of actual Years of Participation in the Plan; or
  • the number of years and quarters (rounded to the next lower quarter) determined by dividing your total vesting hours of service by 1600.

The chart below shows how Years of Vesting Service are generally credited:

Number of Hours Worked During the 
Plan Year

Years of Vesting Service Credited

0 – 399

No credits

400 – 799

.25 (1 quarter)

800 – 1,199

.50 (2 quarters)

1,200 – 1,599

.75 (3 quarters)

1,600 or more

1.0 (4 quarters)

EXAMPLE #1 OF YEARS OF VESTING SERVICE CALCULATION:

Bob worked 1,658 hours in his first year, 1,702 in his second, 1,697 his third, 565 in his fourth and 1,178 his fifth. This is a total of 6,800 hours in five years. If we divide 6,800 by 1,600, the result is 4.25 Years of Vesting Service. Bob is not yet fully vested.

EXAMPLE #2 OF YEARS OF VESTING SERVICE CALCULATION:

Suppose instead, Bob worked 1,658 hours in his first year, 1,702 in his second, 1,697 his third, 1,645 in his fourth and 1,706 his fifth. This is a total of 8,408 hours in five years. If we divide 8,408 by 1,600, the result is 5.25. Because his actual five years of participation is less, he is credited with five Years of Vesting Service. Since he has five Years of Vesting Service, he is fully vested, and his right to receive a Pension when he reaches Normal Retirement Age cannot be taken away.

Vesting Hour of Service is each hour of employment for which you are paid or entitled to payment for:

  • performance of duties in covered employment;
  • a period of time during which an employee would normally have been engaged in employment or contiguous non-covered employment during which no work was performed due to vacation, holiday, illness, incapacity, layoff, jury duty, military duty or leave of absence up to a maximum of 501 hours, except that:
    • military service is not limited to 501 hours;
    • worker’s compensation or disability hours under the Electrical Welfare Trust Fund are limited to a maximum of forty (40) hours per week up to a maximum of thirteen (13) weeks;
  • periods during which you received weekly accident and sickness benefits from the Electrical Welfare Trust Fund up to a maximum of thirteen (13) weeks;
  • periods during which you received worker’s compensation benefits up to a maximum of 40 hours per week limited to thirteen (13) weeks for any one disability; and
  • time spent working for a contributing employer in a job not including covered employment, and that non-covered employment is continuous with (immediately before or after) employment with the same employer in covered employment, your hours of service in that non-covered job will also be counted as Vesting Hours of Service, provided that no quit, termination, discharge or retirement occurs between such covered employment and noncovered employment.

Hours are credited regardless of whether payment for the Vesting Hour of Service is actually paid by the Employer or some other source. Vesting Hours of Service as set forth above may include certain time periods that are not included when calculating benefit units. Benefit Units are discussed later in this SPD.