6. RECAPTURED VESTING AND BENEFIT SERVICE
Participants (including retirees) who worked at least 500 Contributory Hours in one of the Plan Years which began July 1, 2001, 2002, 2003, 2004, 2005, 2006, 2007, or 2008 will be eligible to begin recapturing any previously forfeited Contributory Vesting and Benefit Service on a “dollar for dollar” and an “hour for hour” basis. Recaptured service is credited in the Plan Year that the recapture occurs, not the Plan Year of the earlier forfeiture.
EXAMPLE:
During Plan Years 1988 to 1991, Dennis earned 5,800 Contributory Hours and his employer made $17,400 in Contributions on his behalf. Dennis then left Covered Employment. Because Dennis had not vested as of 1991, and did not return to work within the five year period permitted for him to reinstate his service, the 5,800 Contributory Hours Dennis worked and his benefit derived from $17,400 in employer Contributions were permanently forfeited in 1996.
Dennis returned to Covered Employment in Plan Year 2005, and during Plan Years 2005 to 2007 earned 5,000 Contributory Hours and had $20,000 in employer Contributions made on his behalf. With this return to Covered Employment, Dennis recaptured his forfeited Contributory Hours and Contributions on an “hour for hour” and “dollar for dollar” basis. In this example, Dennis recaptured 5,000 of the 5,800 Contributory Hours he had forfeited and all of his $17,400 in forfeited Contributions.
If Dennis continues to work in Covered Employment after Plan Year 2007, he may continue to recapture forfeited Contributory Hours, up to his remaining 800. He has already recaptured all of his $17,400 in forfeited Contributions.
See the tables below for a review of Dennis’ forfeited and recaptured Contributory Hours and Contributions:
Dennis’ Forfeited Service, Plan Years 1988 to 1991
| Plan Year |
Contributory |
Hours Contributions |
| 1988 |
2,500 |
$7,500 |
| 1989 |
500 |
$1,500 |
| 1990 |
1,800 |
$5,400 |
| 1991 |
1,000 |
$3,000 |
| Total |
5,800 |
$17,400 |
Dennis’ Service and Recaptured Service, Plan Years 2005 to 2007
| Plan Year |
Contributory
Hours |
Recaptured Contributory Hours |
Total Contributory Hours |
Contributions |
Recaptured Contributions |
Total Contributions |
Total Years of Vesting Service |
Total Contributory Years of Vesting Service |
| 2005 |
1,800 |
1,800 |
3,600 |
$7,200 |
$7,200 |
$14,400 |
1.80 |
1.80 |
| 2006 |
400 |
400 |
800 |
$1,600 |
$1,600 |
$3,200 |
1.00 |
.80 |
| 2007 |
2,800 |
2,800 |
5,600 |
$11,200 |
$8,600 |
$19,800 |
2.80 |
2.80 |
| TOTAL |
5,000 |
5,000 |
10,000 |
$20,000 |
$17,400 |
$37,400 |
5.60 |
5.40 |
In addition to his benefits earned based on current Contributions, Dennis earns a benefit at Normal Retirement Age equal to 1.25% of his recaptured Contributions during Plan Years 2005 and 2006; 2.00% of his recaptured Contributions during Plan Year 2007.
The Contributory hours worked are combined with the Recaptured Contributory Hours for purposes of applying the vesting credit schedule.
Dennis’ Monthly Benefit Earned Including Recaptured Contributions, Plan Years 2005 to 2007
| Plan Year 2005 |
(1.25% accrual rate) $14,400 x 1.25% |
= $180.00 (current & recaptured) |
| Plan Year 2006 |
(1.25% accrual rate) $ 3,200 x 1.25% |
= $40.00 (current & recaptured) |
| Plan Year 2007 |
(2.00% accrual rate) $19,800 x 2.00% |
= $396.00 (current & recaptured) |
Total Monthly Benefit Earned $616.00 |
Forfeited Past Benefit and Past Vesting Service are not eligible for recapture. Service before you established Participation is eligible for recapture, if there is no intervening Break-in-Service.
Recaptured Benefit Service is payable at the times explained in Section 4, When You May Retire, without regard to the Appendices.
Recaptured Vesting and Benefit Service does not count toward:
- The 5 Contributory Years of Service and the 10,000 Contributory Hours earned after June 30, 1990, that are required to qualify for a Qualified Retirement or Early Retirement benefit under the Overlay and Rule of 80 Retirement Benefit programs (see Section 4.3.3, Rule of 80 Retirement Benefit and Section 5.5, Benefit Service Before July 1, 1990: The Overlay);
- The initial 500 Contributory Hours required, earned in a Plan Year beginning July 1, 2001, 2002, 2003, 2004, 2005, 2006, 2007, or 2008 to trigger recapture;
- The 1,000 Contributory Hours earned after June 30, 1997 that triggers the Overlay under Section 5.5, Benefit Service Before July 1, 1990: The Overlay;
- The 1,000 Contributory Hours required to qualify for the Rule of 80 Program;
- The 1,500 Contributory Hours that are required to qualify for a Disability Retirement Benefit; or
- The 1,500 Contributory Hours required in either the consecutive three Plan Year period after you reach age 49 or the 36 months after you reach age 49 and before you retire, to qualify for retirement benefits at or after age 60.
In addition, the recaptured amount will be reduced by the value of any amounts you received or may receive pursuant to a court-approved settlement, judgment or order.
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