Definitions
A - M N - Z
Accumulated Share
The accumulated share is the resulting value of the following formula:
The value of your Individual Account as of the last valuation date
PLUS
Employer contributions and changes in the market value of your investment options since the last valuation date
MINUS
Any benefit payments made from the account and a share of operating expenses of the Fund since the last valuation date
Collective Bargaining Agreement
The agreed upon contract that is the result of negotiations between the contributing employers Local Union No. 26, IBEW.
Contributions
Contributions are made to the Individual Account Plan on your behalf under the terms of the collective bargaining agreement between IBEW Local 26 and signatory employers or pursuant to an authorized written agreement established between the Trustees and certain other employers. The amount of the contribution is specified in the collective bargaining agreement or other authorized written agreements applicable to you and can change from time to time.
Covered Employment
You are eligible to participate in the Individual Account Plan when you begin working in a job covered by a collective bargaining agreement (or other written agreement) between your employer and Local Union No. 26, IBEW that requires your employer to make contributions to the Plan on your behalf.
You are not eligible for Plan coverage if you are not a member of a bargaining unit represented by Local 26. In addition, you are not eligible for coverage if you are a sole proprietor, are a partner in partnership, or own or control at least 15% of any class of the outstanding stock of an incorporated contributing employer.
Once you become covered by this Plan, it is your duty to report to the Trustees, in writing, any change in your employment status that may make you ineligible to participate under this rule.
Defined Benefit Plan
A defined benefit plan is a plan that promises you a specific amount at retirement. The Electrical Workers Local Union No. 26 Pension Plan is a defined benefit plan.
Defined Contributions Plan
This type of Plan does not promise you a specific amount of benefits at retirement. The benefit amount is based upon investment earning or losses and employer contributions. The Electrical Workers Local Union No. 26 Individual Account Plan is a defined contributions plan.
ERISA
This acronym is for the federal law entitled "Employee Retirement Income Security Act of 1974". ERISA sets minimum standards for participation, vesting, benefit accrual and funding. Refer to the Summary Plan Description or the Department of Labor (DOL) website for more information concerning your rights under this law.
Individual Account
An Individual Account is an account established for each employee covered by the Plan. The accumulation in your Individual Account is valued according to the Plan rules.
Investment Options
You have several choices of funds in which you may elect to invest the monies in your account. These choices are investment options picked by the Board of Trustees with advice from Fund Consultants. Refer to Summary Plan Description or the Fidelity website for information about the investment options that are available.
Non-Assignment of Benefits
Your retirement benefits are intended for your personal financial security. They cannot be sold, borrowed against, garnished or attached in anyway. However, the plan is required by law to honor a Qualified Domestic Relations Order (QDRO) and a federal tax lien against your benefits.
Participant
You are covered by the Plan if you are working on a job covered by a collective bargaining agreement between your employer and Electrical Workers Local No. 26, IBEW or some other written agreement that requires your employer to make contributions to the Fund on your behalf.
Pre-Retirement Surviving Spouse Benefit
This benefit is a monthly annuity for your legally married spouse's lifetime if you should die before her/him that is the actuarial equivalent, as defined by the Plan, of not less than 50% of your accumulated share determined on your date of death.
QDRO
Qualified Domestic Relations Order (QDRO). This Plan is required by law to honor a QDRO to settle property rights, pay child support or pay alimony in a divorce.
Summary Plan Description (SPD)
The Summary Plan Description is a description of benefits of the Electrical Workers Local No. 26 Individual Account (IA) Plan. The current SPD has a blue column on the left hand side and white cover with red and blue lettering. The introduction page is dated May 2003.
Tax-Qualified Plan
The Fund has been qualified by the Internal Revenue Service, which means that the Plan has met the requirements of the Internal Revenue Code and therefore may receive tax advantages.
Total and Permanent Disability
You are considered totally and permanently disabled if you are unable to work in covered employment as a result of an injury or illness that is likely to continue for the rest of your life. The Trustees make the determination of your total and permanent disability. The Trustees may:
- rely on a Social Security Disability Award;
- require you to submit medical reports; and/or
- undergo a physical exam by a physician of the Trustees' choosing.