A GUIDE TO YOUR DEFINED BENEFIT PENSION PLAN

Work After Retirement

FAST FACTS

  • You may work and earn wages as long as the work is not in “Prohibited Employment” for 40 or more hours in a month.
  • If you do work in Prohibited Employment for 40 or more hours in any month after retirement, your pension will not be paid for that month.
  • It is your responsibility to notify the Fund Office of any work in Prohibited Employment.

When you retire and begin to receive any of the benefits of the Pension Plan (except if you retire on a Disability Pension), you may continue to work without any limits on your future employment or your earnings as long as the work is not in “Prohibited Employment” for 40 or more hours in a month. Prohibited Employment is work in the industry, trade or craft and geographic area in which employees were earning credit under the Plan when you retired. This means that as a pensioner you cannot work in the electrical business, either union or non-union, in any capacity (electrician, manager, owner, supervisor, etc.) in the jurisdictional area of IBEW Local No. 26 while receiving a pension through this Plan. This restriction applies regardless of your age or other situation.

(Remember a Disability Pensioner may only perform work which the Trustees determine to be for the purpose of rehabilitation.)

Should you work in Prohibited Employment for 40 or more hours in any month after retirement, your pension will not be paid for that month. Should you return to work in Prohibited Employment, you are required to notify the Fund Office within 15 days of your return regardless of how many hours you work. In addition, the Trustees may periodically require you to provide evidence that you are not employed in Prohibited Employment after retirement. If you fail to provide this proof, your benefits may be suspended until you provide proof that you are not working in Prohibited Employment. If you are found to be working in Prohibited Employment and you have not notified the Trustees, they may presume that you have been working in Prohibited Employment since your employer began at that site, and that you have been working at least 40 hours per month. It will be your responsibility to prove otherwise, and your benefits may be suspended based on these presumptions until you do.

If you received any benefit payments for any months in which you were working in Prohibited Employment for 40 or more hours, you must pay back to the Plan the amount of the benefits improperly received. If you have not repaid the entire amount owed to the Plan by the time that you once again retire and are ready to resume receiving your pension, the Plan will deduct the amount required to be repaid from your monthly pension. The amount to be deducted from each monthly check will not exceed 25 percent of the regularly scheduled payment, except that there is no limit on the amount that can be deducted from the first check to be paid to you when your benefits resume.

You may request from the Trustees a determination as to whether a particular job you are considering is classified as Prohibited Employment.

Should your pension be suspended for any month, you will be notified in writing by the Trustees of the specific reasons for the suspension. You have a right to appeal the suspension if you believe it was made in error.

PROHIBITED EMPLOYMENT

is work in

  • the industry,
  • trade or craft and
  • geographic area

in which employees were earning credit under the Plan when you retired.