Definitions

A - M N - Z

Active Participant
An active participant is anyone working in a job for which contributions are required to be made to the Plan. You become an active participant on the first day you work on a job for which contributions are required to be made. You cease to be an active participant on December 31 of any year in which you do not work at least 400 hours.

Benefit Units
Benefit units are used to determine the amount of your pension. There are two types of benefit units:

Past Benefit Units for employment under a collective bargaining agreement with Local 26 or employment within its jurisdiction before July 1, 1961; and
Future Benefits Units for covered employment after June 30, 1961.

Collective Bargaining Agreement
The agreed upon contract that is the result of negotiations between the contributing employers and a labor union (Local Union No. 26, IBEW)

Contributing Employer
An employer who contributes to the Plan is called a Contributing Employer.

Covered Employment
You are covered by the Pension Plan if you are an employee working under a collective bargaining agreement between a signatory employer and Local Union No. 26, IBEW, and that agreement provides for contributions to this Pension Fund. You are also covered if you are an employee of the Local Union, the Pension Fund, the Electrical Welfare Trust Fund, the Electrical Workers Local No. 26 Joint Apprenticeship and Training Trust Fund or another organization that has executed a valid agreement to participate with the Board of Trustees. Work covered by the Plan is called Covered Employment.

Deferred Pension
The Deferred Pension provides for employees who have a vested right to a pension but leave active employment prior to retirement. It is called a Deferred Pension because payments will not begin, at the earliest, until you reach age 55. If you elect to receive a Deferred Pension beginning before Normal Retirement Age (62), your monthly benefits will be reduced.

Defined Benefit Plan
A defined benefit plan promises a specified monthly amount at retirement. Benefits are calculated using a formula that includes working the minimum number of hours (1600 per year) multiplied by the unit amount that is determined by the Board of Trustees. The Electrical Workers Local No. 26 Pension Trust Fund is a defined benefit plan.

Defined Contribution Plan
This type of Plan does not promise you a specific amount of benefits at retirement but rather is based on contributions made to the Plan. The Electrical Workers Local Union No. 26 Individual Account Plan is a defined contributions plan.

Disability Pension
Disability Pension is a benefit of the Plan that allows participants who

have at least 5 years of vesting service, and
have become totally and permanently disabled from an unavoidable cause while working in Covered Employment or within 6 months after you leave Covered Employment, and
can furnish satisfactory proof of their total and permanent disability.

Early Retirement Pension
You may retire under this Plan as early as age 55 if you are an active participant, you are vested and have earned the right to a pension. If you choose Early Retirement, your monthly benefits will be reduced from the Normal Pension unless you meet the requirements of the "Rule of 85."

Early Survivor Pension
This pension is payable to the surviving spouse of a deceased employee who is eligible for (but who had not yet received) a Normal, Early or Deferred Pension.

ERISA
This acronym is for the federal law entitled "Employee Retirement Income Security Act of 1974." Refer to the Department of Labor (DOL) website for more information or the current Summary Plan Description.

Lump Sum Bonus
This bonus is a one time payment of $2500. Certain requirement must be met to qualify for this bonus. You must:

be an Active Employee when you retire;
be credited with at least 15 years of vesting service; and
retire on or after your 62nd birthday

be an Active Employee when you retire;
you satisfy the "Rule of 85"; and
retire after January 1, 1997

Normal Pension
A Normal Pension under this plan is active participants who have at least 5 years of vesting service as of the date you reach age 62 or, if later, the date on which you have at least 5 years of vesting service.

PBGC Insurance
Pension Benefit Guaranty Corporation (PGBC) is a U.S. government corporation that insures this pension plan.

Permanent Break in Service
A Permanent Break in Service is an absence from covered employment that may cause you to lose your years in vesting service resulting in cancellation of your benefit units.

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.

Reciprocal
Employees who decide to go to work out of another IBEW local can reciprocate their hours to their "home" Pension Plan in certain situations. To find out more about reciprocating your pension contributions, visit the ERTS website.

Rule of 85
This rule is for active participants who retire after January 1, 1997 on an Early Retirement Pension and their age at their last birthday plus the number of years of vesting service equals or exceed 85, the benefit will not be reduced because of early retirement but will be payable in the same amount as the Normal Retirement Pension.

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.

Temporary (One-Year) Break in Service
A Temporary (One-Year) Break in Service occurs if you fail to work at least 400 vesting hours of service in any Plan year.

Vesting
This term is used to indicate the rules for earning the right to a Pension under this Plan. Vesting means you have worked for 5 years with a minimum of 1600 hours each year. Once you are "vested" you have earned the right to a pension that cannot be taken away.

Years of Vesting Service
Years of Vesting Service are used to determine your eligibility for the various pensions under the Plan. There are two types of vesting service:

Past Years of Vesting Service for employment under a collective bargaining agreement (CBA) with Local 26 or employment within its jurisdiction before July 1, 1961; and
Future Years of Vesting Service for covered employment after June 30, 1961.