1. What is the difference between a "defined benefit" and a "defined contribution" Plan?
a. A "defined benefit" Plan provides monthly benefits determined by a formula as applied to some measurement of your accumulated service in the industry (e.g. years of service
or accumulated contributions) at the time of your retirement. The Fund Office keeps track of your actual service records, but no Fund Assets are specifically allocated to your
account. The level of benefits is not directly dependent on the investment return of the Fund.
A "defined contribution" Plan provides for accumulation of employer contributions in
your individual account. At retirement, this amount, together with investment earnings is paid out as a lump sum or converted into a monthly annuity to be paid for your life. The
level of benefits is directly dependent on the level of contributions and the investment return of the Fund over your working lifetime.
2. Who pays for the Plan?
a. The entire cost of the Plan is borne by your employer's contributions as detailed in the Collective Bargaining Agreement.
3. Can I lose my benefits?
a. If you are vested, you cannot lose your normal retirement benefit accrued at the time you terminate employment. If you are not vested and have a permanent break in
service, your previously accumulated service will be cancelled and you will no longer be entitled to a retirement benefit (See Permanent
.
4. Is my pension guaranteed?
a. While it is expected that the Plan will be continued indefinitely, the Trustees reserve the right to terminate or partially terminate the Plan if provided for in a subsequent
Collective Bargaining Agreement. In such event, the normal retirement benefit for each participant will become vested to the extent funded as of the date of discontinuance. In
addition, benefits (subject to certain limitations) under the Plan are insured by the Pension Benefit Guaranty Corporation.
5. When can I retire?
a. You may retire with an unreduced benefit at Normal Retirement Age (age 65, or the fifth anniversary of your participation, if later). You may retire as early as age 55
with your benefit reduced to account for the longer period of payment.
6. How is my retirement benefit calculated?
a. Your monthy unreduced Normal Retirement benefit is calculated as 2% of the total employer contributions made on your behalf. (Additional past service benefits may be
credited for employment at a monthly benefit of $5.00 per year of past service.) This benefit may be reduced for early retirement and/or optional payment forms.
7. What happens to my benefits if I die before retirement?
a. If you are vested and married at the time of your death, your spouse will be entitled to a benefit beginning at the time you would have attained earliest retirement
age. This benefit is equivalent to the benefit your spouse would have received if you survived to your earliest retirement age, retired under the 50% Joint & Survivor option, and
died on the following day.
8. What happens to my benefits if I die after retirement?
a. If you are married at the time of retirement, your accrued Nomal or Early Retirement benefit will be reduced and paid as a 50% Joint & Survivor benefit (unless you and
your spouse elect otherwise). Upon your death, 50% of your monthly retirement benefit will be paid to your spouse for the remainder of her life.
If you elect out of the 50% Joint
& Survivor benefit or are not married, your full Normal or Early Retirement benefit will paid to you for life, with a total of 60 monthly payments guaranteed to you and your designated
beneficiary.
9. What happens to my benefits if I get a divorce?
a. Normally, benefits cannot be assigned or subject to attachment or garnishment. However an exception to this applies in the issuance by judgement of a Qualified Domestic
Relations Order (QDRO) which relates to a provision of child support, alimony, or marital property rights to a spouse, child or other dependent of a participant (the "alternate payee") and is
made pursuant to a State Domestic Relations Law. This order may recognize the existence of the alternate payee's right to all or a portion of a participant's benefits. The Plan
Administrator has procedures for determining the qualification status of such order and the notification to participants and the payment of benefits in accordance with the order if deemed
qualified.
