Special
Restatement Provision
Your pension plan was restated effective July 1, 2001. For complicated
legal reasons, the previous details and language of the plan must be preserved.
In part, this is to ensure that your benefits under the restated and simplified
plan cannot be less than they were before the restatement. Since the benefits
currently provided generally exceed those you would have received before
the restatement, most participants don't need to be concerned with the
previous details and language. IN NO CASE will any participant receive
lower benefits as a result of the restatement.
The Plan which is described in the Pension BenefitTabs™, was designed
to simplify the program's structure by offering both uniform pension accrual
rates and uniform retirement ages across all years of contributory service.
Case I below shows how the benefits of most participants will be calculated,
even if they became participants in earlier periods. For some, as described
in cases II and III below, the benefit calculation may be higher under
the previous provisions and if the described situation applies, you should
request a benefit estimate from the Trust Customer Service Office as you
near retirement to see how your benefits are calculated.
Case I: If You became a Participant on or after
July 1, 1997
Your benefits are the same before and after the restatement.
Accrual Rates: Your monthly benefit payable at normal retirement age is computed as 2.5% of Contributions made through June 30, 2003, plus 1.25% of Contributions made from July 1, 2003 through June 30, 2006, plus 2.00% of Contributions made from July 1, 2006 through June 30, 2007, plus 1.00% of Contributions made July 1, 2007 and later.
Bonus Years: For the period July 1, 2000 through June 30, 2002, an additional .5% of Contributions iscredited.
Example: Joe Schmo works from 7/1998 - 6/2026 with total pension contributions of $100,000 ($20,000 prior to July 1, 2003, $12,000 from July 1, 2003 through June 30, 2006, $4,000 from July 1, 2006 through June 30, 2007, and $64,000 after that date). 2.5% of $20,000 is $500, 1.25% of $12,000 is $150, 2.00% of $4,000 is $80, and 1.00% of $64,000 is $640, so Joe could get an unreduced benefit (as soon as he was old enough) of $1,370 ($500 plus $150 plus 80 plus $640) per month in the form of a single life annuity.
If Joe had $8,000 in pension contributions from 7/1/2000 - 6/30/2002, he was credited with a bonus accrual: .5% of $8,000 is $40 bringing his unreduced single life annuity benefit up to $1,410 per month.
Retirement Ages: Under the Plan, you can get benefits unreduced for early retirement as early as ages 60, 57 or 50 (under the Rule of 80) depending on your history of employment and contributions. You can also get reduced benefits payable as early as age 52.
Case II: If You became a Participant on or after
July 1, 1990 and before July 1, 1997
Benefits earned on or after July 1, 1997 are the same before and after
the restatement (see Case I).
Benefits earned from July 1, 1990 through June 30, 1997: If you have
1,000 Contributory Hours after July 1, 1997, the restated Plan, in most
cases, will provide a higher benefit than would be provided based on the
previous benefit formula*. If you do not have 1,000 Contributory Hours
after July 1, 1997, your benefits will be calculated under the previous
benefit formula, and you should contact the Trust Customer Service Office
as you near retirement for a benefit estimate.
*There are exceptions: For example, if you retire prior to age 55 with
40,000 Contributory Hours or 25 Years of Contributory Early Retirement
Vesting Service and your contributions after 6/30/97 are less than your
7/1/90-6/30/97 contributions; the previous benefit formula may produce
a higher benefit for this period.
Case III: If You became a Participant prior
to July 1, 1990
Benefits earned on or after July 1, 1990 - see Case II.
Benefits earned prior to July 1, 1990: If you have 1,000 Contributory
Hours after July 1, 1997, the Plan as restated, in most cases will provide
a higher benefit than the previous formula.
Contact the Trust Customer Service Office as you near retirement for
a benefit estimate if you have not had at least 1,000 Contributory Hours
since July 1, 1997 and you don't already have such an estimate.
Also note, if you elect to receive a Lump Sum payment of your pre-July
1, 1990 contributions, all your benefits for service through June 30,
1997 will always be calculated as though there had been no restatement
of the Plan.
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