Eligibility

Upon application and retirement, an Employee or former Employee will be eligible for a Regular Pension if he or she satisfies both the age and Pension Credit requirements:

  1. Age: For retirements on and after January 1, 2015, he or she must have attained Normal Retirement Age. (Note: different rules applied for retirements before 1999, and for retirements between January 1, 1999, and December 31, 2014).

However, on and after January 1, 2015, a Participant is entitled to retire once he has attained age 62, if he or she is otherwise eligible, but the benefit will be calculated differently than for those who retire after reaching Normal Retirement Age. In such event the benefit will be the greater of (i) and (ii) below:

  • The unreduced Regular Pension for benefits accrued before January 1, 2015.
  • The Regular Pension in its entirety reduced by ½ of 1% for each month by which the Participant is younger than Normal Retirement Age.
  1. Pension Credits: He or she must have at least 10 years of Pension Credit without a Permanent Break in Covered Employment, or, if he or she has at least one Hour for Benefit Accrual on or after January 1, 1990, at least 5 years of Pension Credit. He or she also must have earned at least one year of Future Service Credit.

 Pension Amount

The amount of the monthly Regular Pension is based on the contribution rate in effect at the time Pension Credits were earned, the number of Years of Pension Credit earned by the Participant and the effective date of the Pension.

For Regular Pensions that become effective on or after January 1, 2000, and are paid in the form of a Single Life Annuity each year of Pension Credit accrued before December 31, 2014, and earned at a contribution rate of $.10 per hour will produce a monthly benefit of $5.665 payable for the lifetime of the Pensioner. However, credits accrued after December 31, 2014, paid as a Single Life Annuity and earned at a contribution rate of $.10 per hour, will produce a smaller monthly benefit, $4.250 per month for the Pensioner’s life. Proportionately higher or lower monthly pension amounts will be payable for each $.01 by which the contribution rate is higher or lower than $.10.

For example: Let’s assume you retire on January 1, 2016, at age 65, with 16 years of Pension Credit. Assume that you earned the 5 years of Pension Credit with a contribution rate of $.10 per hour, 5 years of Pension Credit with a contribution rate of $.20 per hour, and 6 years of Pension Credit with a contribution rate of $.30 per hour (this includes a Pension Credit earned in 2015).

Remember that, before January 1, 2015, one Pension Credit at a contribution of $.10 per hour earns a monthly benefit of $5.665, and that a proportionately greater monthly benefit is earned when the contribution rate is greater than $.10 per hour. Therefore, one Pension Credit earned with a $.20 per hour contribution rate earns a monthly benefit of $11.33, and one Pension Credit earned under a $.30 per hour contribution rate earns a monthly benefit of $17.00, as shown below:

$5.665 x ($.20/$.10) = $11.33 $5.665 x ($.30/$.10) = $17.00

Also, remember that, on and after January 1, 2015, one Pension Credit at a contribution of $.10 per hour earns a monthly benefit of $4.250, and that a proportionately greater monthly benefit is earned when the contribution rate is greater than $.10 per hour. Therefore, one Pension Credit earned with a $.30 per hour contribution rate earns a monthly benefit of $12.75, as shown below:

$4.250 x ($.30/$.10) = $12.75.

In this example, with 5 Pension Credits at a contribution rate of $.10 per hour, 5 Pension Credits at a contribution rate of $.20 per hour, and 6 Pension Credits at a contribution rate of $.30 per hour, the monthly pension would be calculated as follows:

Pension Credits before January 1, 2015

5 Pension Credits x $5.665 = $28.33

5 Pension Credits x $ 11.33 = $56.65

5 Pension Credits x $17.00 = $85.00

PLUS

Pension Credits On and After January 1, 2015

1 Pension Credit x $12.75 = $12.75

Total monthly pension= $28.33 + $56.65 + $85.00 + $12.75 = $182.73

Regular Pensions that became effective before January 1, 1998 will not have been calculated using the current formula described in these examples. If you have any questions about how your pension amount was (or will be) calculated, you should contact the Trust Fund Office.

Exception (only applicable to Employees who were covered on or before January 1, 1978)

For individuals who were Employees covered under the Plan on or before January 1, 1978, the following rule will apply to both Future and Past Service Credit. Pension Credits earned prior to the expiration date of the Collective Bargaining Agreement covering such individual on January 1, 1978, shall be applied to the lesser of:

  1. the contribution rate in effect at the end of said Collective Bargaining Agreement; or
  1. the contribution rate in effect when such individual terminates employment with the Employer employing him or her on January 1, 1978.

All Pension Credits earned after the expiration date of the Collective Bargaining Agreement covering such individual on January 1, 1978, shall be applied to the contribution rate in effect at the time Pension Credits were earned.

For example: The Employer has a Collective Bargaining Agreement during the period March 1975 to March 1978. The contribution rate for the pension plan begins at 20¢ per hour, increasing by increments of 5¢ per hour each year, and the final rate is 30¢ per hour. All Past and Future Pension Credits earned up to March 1978 will be calculated using a 30¢ per hour Contribution Rate. Pension Credit earned from March 1978 and later will be based on the Contribution Rate in effect at the time such credits are earned.

Remember—in order to qualify for this exception, an Employee must have been employed with the Employer on or before January 1, 1978. If you are not sure of the details of your Employer’s Collective Bargaining Agreement, you should contact the Trust Fund Office.

For Regular Pensions effective prior to January 1, 1982, the maximum number of years of Pension Credit used to calculate the amount of Regular Pension is usually 30 years. However, there are some exceptions to this maximum limit. You should contact the Trust Fund Office to find out if you are subject to the maximum. There is no maximum number of years of Pension Credit used to calculate the amount of Regular Pensions effective on or after January 1, 1982.

Delayed Retirement

If the effective date of an Employee’s pension is after Normal Retirement Age (generally age 65, but see page 26) and he or she did not work more than 40 hours in each month between Normal Retirement Age and the effective date, his or her benefit may be calculated differently. He oe she will receive the greater of:

  1. the benefit payable as of his or her  or her effective date, calculated as described above; or
  1. the benefit he or she would have received if he or she had retired at Normal Retirement Age (based on the benefit formula in effect at that time and using his or her Pension Credit as of that date), actuarially increased for each month after Normal Retirement Age in which he or she worked 40 or fewer hours in prohibited employment. The actuarial increase will be 1% per month for the first 60 months after Normal Retirement Age and 1.5% per month for each month thereafter. (However, in no event will the monthly benefit be less than the accrued benefit, based on Pension Credits accrued before January 1, 2015, at age 62 actuarially increased for each complete calendar month between age 62 and the Annuity Starting Date for which benefits were not suspended. The actuarial increase shall be 1% per month for the first 60 months after age 62 and 1.5% per month for each month thereafter.)