The type of pension benefit you receive depends on when you retire and whether you are an Active Participant on the date you retire. Depending on the type of pension you receive, you may be eligible for a lump sum bonus when you retire.
Please note that you will only receive one type of pension under the Plan no matter how many different contributing employers you work for.
You will be eligible to retire with a normal pension if you are an Active Participant with at least five Years of Vesting Service the day you reach Normal Retirement Age, age 62. Assuming you have no Breaks-in-Service, the formula for a normal pension is:
Benefit Units x Benefit Rate = Monthly Pension Benefit
Depending on your marital status when you retire, this amount may be adjusted to reflect your form of payment.
Michael is 62 and retires on July 1, 2011, with a 10 Benefit Units and no breaks-in-service. Michael is not married. Michael’s normal pension will be calculated as follows:
Benefit Units x Benefit Rate = Monthly Pension Benefit or
10 Benefit Units x $85 Benefit Rate = $850 Monthly Pension Benefit
Damon is 62 and retires on July 1, 2011 with 20.25 Benefit Units and two temporary breaks-in-service. Damon’s normal pension will be calculated by multiplying his benefit credits by the rate in effect before each of this breaks-in-service and then adding the benefit amounts together:
|2.5||1982 Rate of $25.00||$62.50|
|3||1986 Rate of $30.00||$90.00|
|15||2008 Rate of $85.00||$1,275.00|
Damon’s monthly benefit is $1,427.50. If he is married, his benefit will be converted to a Joint & Survivor Pension. If he is not married, he will receive a Monthly Lifetime Pension with 60 Months Guaranteed.
Without any breaks-in-service, all of Damon’s 20.50 Benefit Units would be at $85.00 making his benefit $1,742.50. Because this is an uneven amount, it will be rounded to the next highest dollar, or $1,743 per month.
Tamara is 62 and retires on June 1, 2011 with a total of 8 Benefit Units — 4 Residential Wireman and 4 A Journeyman Wireman. Her benefit is calcuated as follows:
|Benefit Rate||Monthly Pension
|4||2008 Residential Wireman rate of $23.00||$92.00|
|4||2008 A Journeyman Wireman rate of $85.00||$340.00|
Tamara’s monthly benefit is $432.00. If she is married, her benefit will be converted to a Joint & Survivor Pension. If she is not married, she will receive a Monthly Lifetime Pension with 60 Months Guaranteed.
The last two examples are explained further in the “Forms of Pensions” within this website and in the Summary Plan Description.
The plan includes an important feature referred to as “The Rule of 85,” which enables you to receive an unreduced pension if your age (at your most recent birthday) and Years of Vesting Service add up to 85 or more. This means you will receive the same amount of money as if you retired at normal retirement, age 62.
|Medicare Retirees||Current Monthly Rates+|
|Age 65 and Older||$73.50|
+ This amount includes coverage for dental, vision, and hearing benefits.