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SOUTHERN CALIFORNIA IBEW-NECA PENSION PLAN
(As Amended and Restated Effective January 1, 2015)
TABLE OF CONTENTS
*Appendix II contains 60 pages of actuarial charts listing the reduction factors used to calculate the Joint and Survivor Options, based on age of member and spouse at retirement and listing the Social Security adjustment pension options. Due to space limitations three charts have not been included, but are available from the Administrative Office.
Effective January 1, 2015, or as otherwise indicated, this document constitutes another complete Amendment and Restatement of the Southern California IBEW-NECA Pension Plan (the "Plan").
The rights and benefits of Participants, Beneficiaries, Annuitants and Alternate Payees who retire prior to January 1, 2015 and the rights and benefits, if any, for periods prior to January 1, 2015 shall be determined in accordance with the prior provisions of the Plan, unless otherwise provided in the Plan or in any Amendment thereto.
Articles 1.1 through 1.8 define terms by reference to the Trust Agreement.
1.1 "Association" has the same meaning as in the Trust Agreement and includes the Los Angeles County Chapter of the National Electrical Contractors Association, Orange County Chapter of the National Electrical Contractors Association, and Southern Sierras Chapter of the National Electrical Contractors Association.
1.2 "Contribution Agreement" means any Contribution Agreement or other written agreement as specified in the Trust Agreement approved by the Trustees, which requires payments to the Trust Fund on behalf of employees.
1.3 "Covered Employee" means an Employee as defined in the Trust Agreement, including any person performing work under a Collective Bargaining Agreement and employed by an "Employer", and such other persons as the Trustees may hereinafter designate as "Employees" for the purpose of the Agreement and Declaration of Trust, provided any such designation does not jeopardize or adversely affect the tax exempt status of the "Plan", including a special Employee (except where expressly excluded in the Plan) and employees of an Employer who adopts the Plan, with the consent of the Trustees. No self-employed person, sole proprietor, owner, operator, partner, or "Employer", unless employed by a corporation, shall be "Covered Employees" hereunder.
1.4 "Employer" has the same meaning as in the Trust Agreement, which is any present or future member of an "Association", and any contractor who is or becomes signatory to a Collective Bargaining Agreement. The term "Employer" shall also include the "Unions" and the "Associations", which may at the discretion of the Trustees make contributions to this Trust or those Employers who adopt the Plan, with the consent of the Trustees.
"Employer" also means any employer who does in fact make one or more contributions to the Plan or who is the employer of employees admitted pursuant to the provisions of the Trust Agreement. The term "Employer" shall also include any Union which makes contributions to the Plan on behalf of its employees provided that the inclusion of said Union(s) is not a violation of any existing law or regulation. The term Employer shall also include any of the employers who make contributions to the Plan on behalf of their employees pursuant to regulations adopted by the Board of Trustees.
An employer shall not be deemed a Contributing Employer simply because it is part of a controlled group of corporations (within the meaning of Section 1563(a) of the Internal Revenue Code, determined without regard to Section 1563(a)(4) and (e)(3)(C), or of a trade or business under common control within the meaning of Section 414(c) of the Internal Revenue Code), some other part of which is a Contributing Employer.
For purposes of identifying Highly Compensated Employees and applying the rules on participation, vesting and statutory limits on benefits under the Plan but not for determining Covered Employment, the term "Employer" includes all members of an affiliated service group with the Employer within the meaning of Internal Revenue Code Section 414(m) and all other businesses aggregated with the Employer under Internal Revenue Code Section 414(b).
1.5 "Trust" means the Trust created and established under the Trust Agreement.
1.6 "Trust Agreement" means the Agreement and Declaration of Trust of the Southern California IBEW-NECA Pension Plan, executed October 1, 2001, and any amendments, modifications and successors thereto.
1.7 "Trustees" means the Board of Trustees designated and acting under the Trust Agreement.
1.8 "Union" means Local Union No. 11, International Brotherhood of Electrical Workers, Local Union No. 440, International Brotherhood of Electrical Workers, Local Union No. 441, International Brotherhood of Electrical Workers, and Local Union No. 477, International Brotherhood of Electrical Workers, for and on behalf of themselves and any Local Union affiliated with the International Brotherhood of Electrical Workers in the future permitted to participate in this Trust as set forth in the Trust Agreement.
Where used in the Plan:
1.9 "Actuarial Equivalent" means the dollar value on any specified date computed on the basis of appropriate actuarial assumptions used in the most recent actuarial valuation unless otherwise set forth in an appendix to this Plan.
1.10 "Covered Employment" means employment with an Employer in a position subject to a Contribution Agreement.
1.11 A "Covered Hour" includes each hour for which a Covered Employee is paid, or is entitled to payment, for the performance of duties, or on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated), or for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the employer. The number of Covered Hours to be credited for periods during which the Covered Employee performs no duties and the credit of Covered Hours to specific plan years shall be determined by the Trustees in accordance with subsections (b) and (c) of Department of Labor Regulations §2530.200b-2.
1.12 "Credited Future Service" means the sum of a Participant's Future Service Credits. A Participant shall be credited with a Future Service Credit of one fifteen-hundredth (1/1500th) of one year for each Covered Hour rendered after his Employee Contribution Date.
A Participant will receive Credited Future Service for military service during a period described in Appendix III and covered by applicable federal law governing veteran's reemployment rights provided:
Effective June 1, 2002, Credited Future Service will be credited for military service at the greater of 125 hours per month for each complete month of military service or the average monthly hours worked in the twelve months prior to the Participant's commencement of military service, and eight (8) hours per day (but not more than 125 hours) for any additional fraction of a month.
1.13 "Credited Past Service" means the sum of a Participants Past Service Credits.
1.14 "Credited Vesting Service Years" means, for a Participant, the total number of Vesting Service Years completed by the Participant that have not been forfeited as provided in Section 2.1(c). For a Participant who died on or after January 1, 2007 while performing qualified military service, the Participant shall receive Vesting Service Years for the period of qualified military service.
1.15 "Divesting Service Year" means a Plan Year, commencing on or after July 1, 1976, during which a Participant earns less than 375 Vesting Hours. However, if a Participant fails to earn 375 Vesting Hours in a Plan Year in which he accrues at least one hour of Special Service, then such Plan Year shall not cause a Divesting Service Year.
1.16 "Non-Covered Electrical Employment" means any kind of work which is performed:
1.17 "Employee" means an employee who works for an Employer.
The term "Employee" shall also include employees of Unions of the Trust Fund on whose behalf contributions are made to the Plan pursuant to regulations adopted by the Board of Trustees, provided the inclusion of said employees is not a violation of any existing regulation.
Effective August 1, 2003, the term 'Employee' also means employees described above and employees not performing work under any of the collective bargaining agreements but who formerly performed services under any of the collective bargaining agreements. The Employer must notify the Trustees in advance in writing of an election to pay contributions on behalf of collective bargaining unit alumni pursuant to this subsection and pursuant to regulations adopted by the Board of Trustees and provided further that the inclusion of said employees is not a violation of any existing law or regulation.
Participation in the Plan by non-collectively bargained employees shall be subject to a Participation Agreement duly executed by the Board of Trustees and the Employer.
Effective August 1, 2003, Employees not performing services under a collective bargaining agreement may only participate in the Plan if no more than five percent (5%) of the Employees covered under the Plan are non-collective bargaining unit employees. Employees who previously participated as collective bargaining unit employees and who continue participation in the Plan as collective bargaining unit alumni pursuant to this Section shall not be treated as collective bargaining unit employees for purposes of the five percent (5%) maximum but shall be considered collective bargaining unit employees to the fullest extent permissible under Internal Revenue Code Section 410, Regulations related to that Section and all related Sections and Regulations. Except as may be required by law, collective bargaining unit alumni whose participation is allowed pursuant to this Section of the Plan and other participants not performing services under the collective bargaining agreement participating pursuant to the provisions of this Section of the Plan, shall in no event accrue benefits under the Plan in a fashion more favorable than that applicable to similarly situated Employees who are performing services under the collective bargaining agreement.
In no event may an Employer that wishes to pay contributions to the Plan on behalf of non-collectively bargained unit employees do so without the prior approval of the Trustees. Should an Employer pay such contributions without the prior approval of the Trustees, those contributions less any investment losses but in no event with any investment gains, shall be returned by the Trustees to the Employer. The Trustees shall not permit initial or continued participation pursuant to this Section if such participation would result in the five percent (5%) limitation of this Section being violated.
The term "Employee" does not include any self-employed person, whether a sole proprietor or partner."
1.18 "Employee Contribution Date" means the date of a Covered Employee's first Covered Hour, or, if the forfeiture provisions of Section 2.1(c) apply, the Covered Employee's first Covered Hour subsequent to his reentry into Covered Employment. However, for any Employee who became a Participant before July 1, 1976, for Credited Future Service or Credited Past Service accrued before July 1, 1976 which would have been forfeited under Section 1.18 of the Plan as it existed on or before June 30, 1976, the following rule applies. If the forfeiture of such service would have occurred during a period of employment in the electrical contracting industry which was not Covered Employment at the time of reference but which employment would have been Covered Employment at the earliest of his death, retirement or on June 30, 1976, then his Employee Contribution Date shall be the date of the Covered Employee's first Covered Hour which immediately follows the latest date as of which such period or periods of employment would have been Covered Employment as defined by this Plan.
1.19 "Employer Contributions" means contributions made pursuant to a Contribution Agreement.
1.20 "Future Service Unit" means the amount of benefit earned by a Participant for each year of Credited Future Service as determined under the Benefit Schedule in Section 4.2.
1.21 "Grace Period" means a period following the date on which a Covered Employee becomes an Active Participant and prior to his Normal Retirement Date during which the Active Participant fails to work at least 375 Covered Hours in each year of two consecutive Plan Years. For example, an Active Participant who completes 375 Covered Hours in one Plan Year, and zero Covered Hours during the following Plan Year would not complete a Grace Period, because he has earned at least 375 Covered Hours in at least one of the two Plan Years. However, a Participant who completes 374 Covered Hours in one Plan Year and 374 during the following Plan Year would complete a Grace Period, because he has completed less than 375 Covered Hours during each year of those two years.
1.22 "Participant" means a Covered Employee who is participating in the Plan in one of the categories of participation specified in Section 2.1, a Disabled Participant pursuant to Article 7, or a Pensioner pursuant to Article 3.
1.23 "Pension Fund" or "Fund" means the Southern California IBEW-NECA Pension Trust Fund.
1.24 "Plan" means this Southern California IBEW-NECA Pension Plan.
1.25 "Plan Year" means each twelve (12)-month period from July 1 through June 30.
1.26 "Special Employee" means a Covered Employee represented by IBEW Local 441 with an effective date of coverage of January 1, 1976, as recorded on the administrative records of the Trust Fund.
1.27 "Special Service" means the following:
1.28 "Total Credited Service" means the sum of a Participant's Credited Past Service and Credited Future Service which has not been forfeited.
1.29 "Uncovered Vesting Employment" means employment with an Employer in a position not subject to a Contribution Agreement, provided the Employee was employed with an Employer as a Covered Employee immediately preceding Uncovered Vesting Employment or immediately following Uncovered Vesting Employment.
1.30 "Vesting Hour" means the following:
1.31 "Vesting Service Year" means a Plan Year during which an Employee earns 750 or more Vesting Hours. For purposes of an Employee who is not covered by a collective bargaining agreement between a Union and Employer, Vesting Service Year means the Plan Year during which such Employee earns 750 or more Vesting Hours commencing with the Plan Year in which such Employee is eligible to participate in the Plan.
1.32 "Normal Retirement Age" means attainment of age 65.
1.33 "Retirement" - To be considered retired, a Participant who has not attained his Normal Retirement Date must sever all employment with any and all entities which pay contributions to the Southern California IBEW-NECA Pension Trust Fund.
1.34 "Related Plan" - means a Plan that is signatory to the Electrical Industry Pension Reciprocal Agreement or any other pension plan with which the Trustees have entered into a pro-rata reciprocity agreement.
1.35 "Highly Compensated Employee" means each Highly Compensated Active Employee and Highly Compensated Former Employee of an Employer. Whether an individual is a Highly Compensated Employee is determined separately with respect to each Employer, based solely on the individual's compensation from or status with respect to that Employer.
A Highly Compensated Active Employee is an Employee of the Employer who performs service for the Employer during the determination year and who:
The determination of who is a Highly-Compensated Employee, including the determination of the number and identity of Employees in the top-paid group, the top 100 Employees, and the number of Employees treated as officers and the Compensation that is considered, will be made in accordance with IRC Section 414(q) and the regulations thereunder. No Employee who is collective bargaining unit alumni, who is included in a collective bargaining unit under, or whose Compensation is governed by the collective bargaining agreements shall be considered a Highly-Compensated Employee and, pursuant to IRC Section 414(q)(8), no such Employee shall be taken into account in determining the number of employees in the top-paid group."
1.36 "Annuity Starting Date" for a Participant means the first day of the first calendar month starting after the Participant has fulfilled all of the conditions for entitlement to benefits and after the later of:
The Annuity Starting Date will not be later than the Participant's Required Beginning Date.
The Annuity Starting Date for a Beneficiary or alternate payee designated under a Qualified Domestic Relations Order will be determined under this Section, except that references to the Joint and Survivor Pension and spousal consent do not apply. An alternate payee shall be treated as a surviving spouse to the extent required under a Qualified Domestic Relations Order and the extent required by applicable law.
A Participant who retires before his Normal Retirement Age and then earns additional benefit accruals under the Plan through reemployment will have a separate Annuity Starting Date determined under this Section with respect to those additional accruals, including the election of any benefit payment options available under the Plan, except that an Annuity Starting Date that is on or after Normal Retirement Age shall apply for any additional benefits accrued through reemployment after that date.
A Participant who is entitled to and who begins to receive Early Pension Benefits prior to age 55, but who has less than 42,500 hours with at least 300 hours in each of 23 Plan Years, will have a separate Annuity Starting Date* (as defined as the first day of the month following or coincident with the participant's 55th birthday) determined under this Section with respect to the benefit accrued on or after July 1, 1996 including the election of any benefit payment options available under the Plan.
*With respect to those participants described in the paragraph above who return to active employment and accrue at least 42,500 hours with at least 300 hours in each of 23 Plan Years, a separate Annuity Starting Date is needed as defined herein.
1.37 Effective for benefits payable under an RASD with an initial payment on or after August 1, 2006, the following definition shall apply. "Retroactive Annuity Starting Date" means an Annuity Starting Date that is affirmatively elected by a Participant that occurs on or before the date the written explanation of benefit payment options described in Article 7 is provided to the Participant. Benefits payable under a Retroactive Annuity Starting Date shall consist of an initial single sum payment attributable to the period beginning on the Participant's Retroactive Annuity Starting Date and ending with the first day of the first month immediately prior to the month in which the benefit is paid. The corresponding interest paid on such single sum payment shall be made for the period beginning with the first day of the month coinciding with the Retroactive Annuity Starting Date and ending with the first day of the first month immediately prior to the month in which the benefit is paid. The provisions for a Retroactive Annuity Starting Date in this Section 1.37 shall not apply in the case of an application made for a Surviving Spouse Pension or a Pre-Retirement Death Benefit.
1.38 "Alternate Payee" means a person designated in a Domestic Relations Order or a Qualified Domestic Relations Order to receive all or a portion of the Participant's benefits under the Plan, as permitted under applicable provisions of ERISA, the Internal Revenue Code and regulations issued thereunder.
1.39 "Applicable Mortality Table" applies to a distribution with an Annuity Starting Date on or after December 31, 2002. Notwithstanding any other Plan provisions to the contrary, the Applicable Mortality Table for purposes of adjusting any benefit or imitation under Section 415(b)(2)(B), (C), or (D) of the Internal Revenue Code and the Applicable Mortality Table used for purposes of satisfying the requirements of Section 417(e) of the Internal Revenue Code is the table prescribed in Revenue Ruling 2001-62. For completed applications received in the Fund office on or after July 1, 2008 for purposes of Section 417(e) of the Internal Revenue Code (but not for purposes of Section 415(b)(2)(B), (C), or (D)), the Applicable Mortality Table means the mortality table for the Plan Year under subparagraph (A) of Internal Revenue Code Section 430(h)(3) (without regard to subparagraph (C) or (D) of such section).
1.40 "Applicable Interest Rate" for completed applications received in the Fund office on or after July 1, 2008 means the segment interest rates as determined under Internal Revenue Code Section 417(e)(3)(C) for the April preceding the Plan Year in which the completed application is received.
1.41. 'Spouse' means a person to whom a Participant is legally married.
1.42. All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
1.43. "Compensation" shall mean wages within the meaning of Code section 3401(a) and all other payments of compensation in which an Employer is required to furnish the Participant with a statement under Code sections 6401, 6051 and 6052, if applicable, including elective amounts that are not includible in the gross income of the Employee by reason of Code sections 125,132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b) that are paid to or on account of the Participant from the Employer for that Plan Year. Compensation shall also include post-severance compensation (such as overtime, shift differential, commission, bonuses or other similar compensation) paid by the later of 2 ½ month after severance from employment or the end of the Plan year that includes the dates of severance from employment.
2.2 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
3.1 Normal Retirement. The Normal Retirement Date for a Participant shall be the first day of the month coincident with, or next following the later of:
The Normal Pension Benefit payable to a Participant shall be determined under Article 4.
3.2 Early Retirement. Any Active Participant, Inactive Participant, or Inactive Vested Participant, who has completed 10 or more years of Total Credited Service (15,000 hours), at least two (2) years of which are Credited Future Service (3,000 hours), may elect to retire and receive an Early Pension Benefit at any time after the attainment of age 55. In this event, payment of Early Pension Benefits shall commence at said Participant's Early Retirement Date, which shall be the first day of the month coincident with, or next following, the date stipulated by the Participant as his retirement date, provided he has complied with the provisions of Article 9 and the Benefit payable to said Participant shall be as determined under Section 4.4 or 4.5. However, for an Active Participant retiring prior to July 1, 1979, age 45 shall be substituted for age 55 in this Section 3.2. In no event shall the date stipulated by the Participant as his Early Retirement date be more than twelve (12) months prior to the date of the application for Early Retirement benefits. A full monthly benefit for each month of a Retroactive Annuity Starting Date Early Retirement Pension shall only be payable for a month in which the eligible Participant's entire monthly benefit is not subject to suspension pursuant to Section 9.7. For all other months an appropriate percentage of each month's benefit, up to and including one hundred percent, shall be subject to suspension pursuant to Section 9.7. EXCEPTION: If an eligible Participant is registered for employment in violation of Section 9.7(b)(2)(iii) and/or 9.7(b)(2)(viii) in the month the application is received by the Fund or in any of the three months preceding said receipt and; the eligible Participant terminates all registration prohibited by Section 9.7(b)(2)(iii) and/or 9.7(b)(2)(viii) by the close of the month in which the application is received and; the eligible Participant would otherwise be entitled to receive full monthly benefits for one or more of those four months; then, in that event, the eligible Participant shall receive monthly benefits for those four months as if Section 9.7(b)(2)(iii) and/or 9.7(b)(2)(viii) did not apply to those four months but all other applicable provisions of Section 9.7 shall apply to those four months and all applicable provisions of Section 9.7 shall apply to all other periods of monthly pension payments.
3.3 Postponed Retirement. Any Active Participant, Inactive Participant or Inactive Vested Participant, may elect to postpone his retirement and to remain in the service of his Employer after his Normal Retirement Date. A Participant who reaches the Normal Retirement Date and continues working as provided in Section 9.7(c) shall be given notice, as stipulated in Section 9.7(d), of his eligibility to retire and suspension of pension benefits until retirement, in accordance with applicable regulations. Payment of Postponed Pension Benefits to said Participant shall commence at his Postponed Retirement Date, which shall be the first day of any month coincident with, or next following, the date stipulated by the Participant as his retirement date, provided he has complied with the provisions of Article 9 with respect to application for pension benefits. The Active Participant's Postponed Pension Benefit shall be as determined under Section 4.6. In no event shall the date stipulated by the Participant as his Normal Retirement date be more than twelve (12) months prior to the date of the application for Normal Retirement benefits. A retroactive effective date shall only be approved if the Participant satisfied all of the eligibility requirements of a Normal Retirement pension as of the effective date.
3.4 Pensioner. A Participant shall become a Pensioner on the effective date of his retirement pursuant to this Article 3. Each Pensioner on June 30, 1976, who was not receiving a Disability Pension, and each such Pensioner who was receiving a Disability Pension and who had attained his Normal Retirement Date, shall continue in this status and shall receive the monthly pension to which he was entitled prior to July 1, 1976. For disability benefits effective on or after July 1, 2009, a Disabled Participant shall become a Pensioner upon commencement of his Disability Benefit pursuant to Article 7.
3.5 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
4.1 The Normal Pension Benefit to which a Participant shall be entitled under the Plan shall be a monthly pension on the Normal Form of Pension described in Section 5.2. A Participant shall be eligible to receive the first monthly payment of his Normal Pension Benefit on his Normal Retirement Date, if he is then living and if he has elected to receive this form of pension pursuant to Section 5.4.
4.2 Normal Pension. Subject to Section 4.2(d) (relating to freezing of benefits on completion of a Grace Period), Section 4.8 (relating to modification of benefits on the withdrawal of an Employer or insufficiency of contributions) and Section 4.9 (relating to limitations imposed by Section 415 of the Internal Revenue Code), the amount of monthly Normal Pension credited to any Participant retiring after December 31, 1989 shall be equal to the sum of (a), (b) and (c) as follows:
For any Pensioner who retired prior to January 1, 1990, or for any Participant whose last Covered Hour occurred prior to July 1, 1976, the Normal Pension will be determined based on Plan provisions in effect prior to January 1, 1990.
BENEFIT UNIT BASED ON LAST COVERED HOUR PRIOR TO RETIREMENT
(2.25% OF EMPLOYER CONTRIBUTIONS BEGINNING 7/1/82)
|LOCAL||BENEFIT UNIT||LAST DATE WORKED|
|11||$30.50||07/01/64 - 06/30/76|
|$30.60||07/01/76 - 11/30/76|
|$34.35||12/01/76 - 05/31/78|
|$37.15||06/01/78 - 05/31/79|
|$40.45||06/01/79 - 05/31/80|
|$49.45||06/01/80 - 01/14/82|
|$55.95||01/15/82 - 06/30/82|
|440||$25.00||01/01/71 - 05/31/77|
|$30.25||06/01/77 - 11/30/78|
|$35.05||12/01/78 - 11/30/79|
|$37.85||12/01/79 - 05/31/80|
|$40.45||06/01/80 - 11/30/80|
|$43.05||12/01/80 - 06/30/82|
|441||$13.25||03/01/71 - 09/30/72|
|$25.00||10/01/72 - 06/30/82|
|447||$13.25||07/01/71 - 09/30/72|
|$25.00||10/01/72 - 01/31/79|
|$29.60||02/01/79 - 12/31/79|
|477||$13.25||03/01/67 - 09/30/72|
|$25.00||10/01/72 - 05/31/75|
|$29.40||06/01/75 - 11/30/76|
|$30.25||12/01/76 - 05/31/77|
|$35.05||06/01/77 - 11/30/77|
|$36.45||12/01/77 - 05/31/78|
|$40.45||06/01/78 - 11/30/78|
|$42.40||12/01/78 - 05/31/79|
|$46.95||06/01/79 - 11/30/79|
|$48.25||12/01/79 - 05/31/80|
|$50.05||06/01/80 - 10/31/81|
|$52.05||11/01/81 - 06/30/82|
Refers to Local Union representing Participant for preponderance of Covered Hours earned prior to 7/1/82. For a Participant with-preponderance of hours under Local 11, the Benefit Units for any service on or after 6/1/80 will be determined by the Local in whose jurisdiction the hours were worked.
Benefit Unit per 1500 hours determined by period in which last Covered Hour worked, except as noted in (4) and (5) below. If last date worked is after 6/30/82, then Benefit Unit for 6/30/82 will be used for all hours worked up to that date. Beginning 7/1/82, benefit amount of 2.25% of Employer contributions.
Applicable only to Participants who had not retired as of 9/1/75.
$49.45 rate used only for hours worked 6/1/80-1/14/82. Hours through 5/31/80 use Benefit Unit based on last hour worked through 5/31/80 -- if service is continuous, all hours through 5/31/80 would use $40.45 Benefit Unit.
$55.95 rate used only for hours worked 1/15/82-6/30/82. See (4) above for Benefit Unit on hours prior to 1/15/82.
4.3 Normal Pension Benefit. The monthly Normal Pension Benefit payable to an Active Participant at his Normal Retirement Date shall be fully vested as of and equal to the amount of monthly Normal Pension credited to the Participant at his Normal Retirement Date. The monthly Normal Pension Benefit payable to an Inactive Vested Participant or an Inactive Participant at his Normal Retirement Date shall be equal to the amount of monthly Normal Pension credited to the Participant up to the date of his leaving Covered Employment.
4.4 Early Pension Benefit for Active Participants. Early Pension Benefits for most Active Participants are described in Section 4.4(a); however, for those Active Participants retiring prior to July 1, 1979, Early Pension Benefits may be reduced as described in Section 4.4(b). Also, for Active Participants who have previously completed a Grace Period, the Early Pension Benefits described in Sections 4.4(a) and 4.4(b) may be modified as described in Section 4.4(c).
4.5 Early Pension Benefit for an Inactive Vested Participant or Inactive Participant.
4.6 Postponed Pension Benefit. The monthly Postponed Pension Benefit payable to a Participant at his Postponed Retirement Date shall be equal to the amount of monthly Normal Pension credited to the Participant up to his Postponed Retirement Date provided that the Participant is working in suspendible employment after the Normal Retirement Date [as defined in Section 9.7(c)], is eligible for a Postponed Retirement Benefit and received the notice referred to in Section 3.3. If all of the preceding conditions are not met, then the Postponed Retirement Benefit Date shall be the greater of (a) and (b):
4.7 Accrued Benefit For a Participant Ineligible to Retire. If, for purposes of providing Participants with benefit information required by Federal law and regulations, or for any other purpose, it becomes necessary to determine an accrued benefit as of a given date for a Participant ineligible to retire, his accrued benefit as of such date will be equal to the monthly Normal Pension credited to the Participant as of such date.
4.9 Limitations. In no event will benefits provided by the Plan exceed the limitations imposed by §415 of the Internal Revenue Code.
A Participant's benefits or contributions provided under other qualified plans of an Employer may be required to be considered with this Plan in determining whether §415 of the Internal Revenue Code the limits have been exceeded. If the benefits provided by this Plan and such other qualified plans would exceed the limits imposed by §415 of the Internal Revenue Code, then benefits under the Plan will be reduced, so that, together with any reduction imposed by such other plans, the excess will be eliminated.
4.10 Directed Rollovers. Effective January 1, 1993, notwithstanding any provision of this Plan to the contrary that would otherwise limit a Distributee's election under this Plan, a Distributee may elect, at the time and in the manner prescribed by the Trustees, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover. For these purposes, the following definitions apply:
4.11 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
5.1 Automatic Joint and Survivor Pension Form. A married Participant shall receive the benefit provided by the Actuarial Equivalent of his pension benefit as determined under Article 4 on the Automatic Joint and Survivor Pension Form, or, if he so elects, the Normal Form of Pension or an Optional Form of Pension. An unmarried Participant shall receive the Normal Form of Pension, or, if he so elects, the Social Security Adjustment Pension option.
Payments under the Automatic Joint and Survivor Pension Form shall be actuarially determined, based on the ages of the Pensioner and his spouse. The actuarially determined monthly pension shall be payable to the Participant as long as he survives. If at his death his spouse survives him, monthly payments will continue to his spouse during her remaining lifetime in an amount equal to 50% of the monthly pension payable to the Pensioner under this Automatic Joint and Survivor Pension Form.
All elections shall be subject to the provisions of Section 5.4. In no event shall any Covered Employee be entitled to retirement annuity payments which became payable more than one year before the date of application.
5.2 Normal Form of Pension. The Normal Form of Pension under the Plan shall be a life pension with 60 monthly payments guaranteed. Monthly payments shall be made to the Pensioner on the first day of each month commencing on his retirement date, if he is then living, terminating with the last payment due immediately preceding the Pensioner's death or with the last guaranteed monthly payment, whichever is later. Any payments to be made after the Pensioner's death shall be made in accordance with Section 8.2.
5.3 Optional Forms of Pension. The Optional Forms of Pension are as follows:
5.4 Election of any form of Pension must be made in writing. The period during which any such election may be made ("Election Period") shall be the one hundred eighty (180) day period ending on the date of benefit commencement which has been elected by the Participant. However, if the Participant has not received the description and explanation of the optional forms of benefits available under the Plan at least 30 days before his elected Benefit Commencement Date, the election period shall end 60 days after the date the description and explanation of optional benefit forms are mailed to the Participant. Any such election of pension form or Benefit Commencement Date shall be revocable during the Election Period. However, if benefits have commenced, no change in effective date or pension form shall be recognized. Nothing in this provision shall prevent a Participant from changing the effective date of his or her pension for a period of up to sixty days after the original effective date of his or her pension if such change shall enable the Participant to qualify for coverage under the Retiree Health Plan offered by the Board of Trustees of the Southern California IBEW-NECA Health Trust Fund.
For purposes of this Plan, the "Benefit Commencement Date" is the earlier of the date the initial pension check is returned to the Pension Trust Fund or 30 days after the date the initial pension check is issued by the Pension Trust Fund.
Once the Election Period has expired, a Participant may not change his form of pension. After benefits have commenced to a Participant pursuant to a Joint and Survivor pension form, the Participant may not designate a new spouse to be entitled to any benefits payable under said Joint and Survivor pension form.
If a Participant is married on the date his pension commences and is electing a form of pension other than a Joint and Survivor pension described under Sections 5.1, 5.3(a), 5.3(b) or 5.3(c), the election must be made jointly by the Participant and his spouse, and must be made only after the Plan Administrator has provided the Participant and his spouse with a written explanation of the results of an election not to elect a Joint and Survivor pension. Furthermore, the election of a form of pension other than a Joint and Survivor pension shall be subject to rules relating to designation of a beneficiary as provided in Article 8.
5.6 In lieu of any form of pension benefits properly payable other than a lifetime pre-retirement death benefit, an eligible Participant who is not married and who has a Registered Domestic Partner may elect to receive the payment of their pension on the basis of a Contingent Annuitant Option, in accordance with which they will receive a lower monthly amount with the provision that 50% of the lower amount is continued after their death for the lifetime of the Registered Domestic Partner designated by the Participant if the Registered Domestic Partner is living after the Pensioner's death.
If the Annuity Starting Date of a Participant's Disability Pension with the Contingent Annuitant Option occurs prior to the Participant's attainment of age 55, payment to the Contingent Annuitant, if any, will start on the later of the (a) the first of the month following the death of the Pensioner, or (b) the first of the month following the date the Pensioner would have obtained age 55 had they lived.
The amount payable to the Pensioner who has elected this option shall be determined as follows:
5.6 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
6.1 An Active Participant who completes a Grace Period prior to his Normal Retirement Date shall become an Inactive Vested Participant provided his service meets one of the following conditions:
6.4 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
7.1 Total and Permanent Disability. A Participant shall be deemed to have a condition of "Total and Permanent Disability" only if the Participant provides to the Trustees a determination by the Social Security Administration that the Active Participant is entitled to Disability Insurance benefits under the Federal Social Security Act.
7.2 Partial Disability. An Active Participant who is not totally and permanently disabled, as described in Section 7.1 above, but who has a physical or mental condition resulting from bodily injury, disease or mental disorder, which renders him incapable of performing the duties required of a Journeyman under the Inside Wiremans Agreement between the Union and the Association at any time during the remainder of his life, shall be deemed to have a condition of Partial Disability.
7.3 Termination of Benefit Payments to Disabled Participants. Monthly payments to Disabled Participants shall terminate at the earliest of the following dates:
7.4 The existence of and/or the continuation of Total and Permanent or Partial Disability shall be determined by the Trustees. The Trustees may establish such rules and regulations for proof of the existence of a Total and Permanent or Partial Disability as they may deem proper. The Trustees, at no expense to the individual, shall have the right and opportunity to provide, as often as they deem necessary, for the examination of the person of any individual whose injury or sickness is the basis of claim. Upon receipt of an application for a Partial Disability Benefit, the Trustees shall, at their sole expense, provide for the independent medical examination of the Participant to determine whether the Participant meets the definition of Partial Disability as set forth in Section 7.2.
7.5 Nothing in this Section shall prevent a Pensioner receiving Partial Disability Benefits under the Plan from qualifying for a Total and Permanent Disability Benefits under the Plan as of the effective date of the Social Security Administration Disability Award if the medical condition causing Total and Permanent Disability is a continuation of or is causally related to the Partial Disability. For a Pensioner who on or after July 1, 2010 provides the Trustees acceptable evidence under Section 7.1 that he qualifies for a Total and Permanent Disability Benefit and whose Partial Disability Benefit under this section is subsequently converted to a Total and Permanent Disability Benefit, his Total and Permanent Disability Benefit shall be determined under the terms of Section 7.11(b).
7.6 A Participant who is disabled and unable to work in Covered Employment due to such disability, will be credited with 30 hours for each week of disability for determining Credited Future Service for vesting purposes only required to satisfy the eligibility criteria for either a Total and Permanent Disability Benefit or a Partial Disability Benefit.
7.7 A Disabled Participant may continue to receive monthly disability benefits during his or her return to work in Covered Employment for one initial period of up to three (3) consecutive months. Beginning June 1, 2001, a Disabled Participant shall be permitted to return to Covered Employment for a second period of up to three (3) consecutive months if the commencement date of the second period is at least nine (9) months after the first date benefits would otherwise be suspendible due to the Disabled Participant's work in Covered Employment following the initial three (3) month return to Covered Employment. A Disability Participant who works in Covered Employment for any period of time in excess of the allowable periods set forth in the preceding sentence, will not be entitled to receive monthly disability benefits for such month in which he or she engaged in Covered Employment. Effective for Applications for Partial Disability Benefits with an Annuity Starting Date on or after July 1, 2006, a retiree receiving Partial Disability Benefits under the Plan shall not have his benefits suspended for any month in which he is employed to serve as a Trustee for an IBEW-NECA Taft-Hartley Trust Fund. In order to secure the benefits of this Section and to avoid the suspension provisions of Section 9.7(b)(2)(iii) and other applicable provisions of Section 9.7(b) a Disabled Participant must notify the Fund Offices of the Disabled Participant's intent to utilize this Section prior to registration for employment at any hiring hall in the electrical construction contracting industry. The exceptions of this Section permitting a Disabled Participant to return to work in Covered Employment is intended to provide solely an opportunity to return to work by Disabled Participants and may not be utilized by Disabled Participants in an attempt to secure unemployment insurance benefits rather than returning to gainful employment.
7.8 If, prior to his Normal Retirement Age, it is determined that a Disabled Participant is no longer suffering from Total and Permanent or Partial Disability, said Disabled Participant shall become an Active Participant.
7.9 A married Participant who has not elected otherwise shall receive his disability benefit on the Automatic Joint and Survivor Pension Form. If the Disabled Participant and his spouse make an appropriate election in writing during the 180-day period prior to the commencement of disability payments, then monthly disability benefits shall be payable in accordance with either Section 7.10 with respect to one of the Optional Forms of Pension or Section 7.1(b) for Total and Permanent Disability benefits or Section 7.2(b) for Partial Disability benefits and the Automatic Joint and Survivor Pension Form shall not become effective.
Once the Election Period has expired, a Disability Pensioner may not change his form of benefit. Once disability benefits have commenced, a Disability Pensioner may not designate a new spouse with respect to such benefits. A Disability Pensioner, who is receiving a benefit pursuant to a disability application made on or after January 1, 2005, with benefit commencement prior to July 1, 2009, and who is receiving Total and Permanent Disability Benefits or unreduced Partial Disability Benefits under the Plan is entitled to make a new election of benefits at Normal Retirement Age, including, but not limited to designation of a new spouse under a Joint and Survivor Pension Form upon attainment of Normal Retirement Age.
7.10 Under the Automatic Joint and Survivor Pension Form, the monthly disability payments shall be actuarially reduced, based on the ages of the Disabled Participant and his spouse, to provide, if the Disabled Participant dies on or after the date of commencement of disability benefits, for monthly payments of 50% of the reduced amount to continue to his spouse during her lifetime. If his spouse dies prior to the commencement of disability benefits, the Automatic Joint and Survivor Pension Form shall not become effective and the monthly disability benefit payable to the Disabled Participant shall be determined pursuant to Section 7.1(b) for Total and Permanent Disability benefits or Section 7.2(b) for Partial Disability benefits.
A Disabled Participant may elect to receive an actuarially reduced benefit based on the pension benefit determined under Article 4 on one of the Optional Forms of Pension permitted under this Section 7.10, subject to the provisions of Section 7.9. The Optional Forms of Pension for Disabled Participants are as follows:
7.11 Disabled Pensioners attaining Normal Retirement Age. The amount and form of benefit due to a Disabled Pensioner attaining Normal Retirement Age shall be determined by the following:
7.12 Each Participant who had not attained his Normal Retirement Date and who was receiving a Disability Pension on June 30, 1976 shall be a Disabled Participant under this Plan and shall continue to receive monthly disability benefits in the same amount as he was receiving prior to July 1, 1976.
7.13 In the event a Pensioner has applied for and is receiving an Early Pension Benefit and satisfies the criteria for a Disability Pension as defined above either on or after the effective date of his Early Pension Benefits, the Pensioner will have the option of converting his Early Pension Benefit to a Disability Pension if the Pensioner became disabled prior to or on the effective date of his Early Pension Benefit. In the event the Retiree's application to convert an Early Pension Benefit to a Disability Pension is approved by the Board of Trustees, the Retiree shall repay the Trust Fund the amount of all Early Pension Benefits received prior to the Disability Pension effective date through an offset of twenty-five percent (25%) of each monthly Disability Pension payment until all Early Pension Benefits are repaid in full.
The effective date of the Pensioner's Disability Pension converted under this section shall commence with the first day of the month following the date of the Pensioner's disability as established by the Social Security Administration Disability Award or the Board of Trustees or the date the Pensioner has accrued at least ten (10) years of Credited Service.
This Section is applicable to applications to convert an Early Pension Benefit to a Disability Pension received by the Pension Trust Fund on or after January 1, 2005.
For a Pensioner who on or after July 1, 2010 provides the Trustees acceptable evidence under Section 7.1 that he qualifies for a Total and Permanent Disability Benefit and who subsequently elects to convert his Early Retirement Benefit under this section to a Total and Permanent Disability Benefit, his Total and Permanent Disability Benefit shall be determined under the terms of Section 7.11(b).
7.14 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
8.1 Upon the death of an eligible Active Participant as defined in Section 8.4, his beneficiary shall be entitled to a death benefit, if any, as defined in Section 8.4. Upon the death of an eligible inactive Vested Participant as defined in Section 8.5, his beneficiary shall be entitled to a death benefit, if any, as defined in Section 8.5. Upon the death of a Pensioner or Disabled Participant, his designated beneficiary shall be entitled to a death benefit, if any, as defined in Section 8.2.
8.2 If the death of a Pensioner who is receiving the Normal Form of Pension occurs before the number of guaranteed monthly payments have been made, as defined in Section 5.2, the remaining guaranteed monthly payments shall be made to the Pensioner's designated beneficiary. Upon the death of a Pensioner who is receiving benefits on the Automatic Joint and Survivor Pension Form or an Optional Form of Pension, the death benefits, if any, shall be paid in accordance with Article 5. Upon the death of a disabled Participant, the death benefit, if any, shall be paid in accordance with Article 7 and Section 8.6.
8.3 If an Active or Inactive Vested Participant is married at the time of his death, his spouse is deemed to be the Participant's beneficiary. If the Participant is an eligible Active Participant at the time of his death, the spouse receives the Qualified Pre-Retirement Survivor Annuity set forth in Section 8.4(a). If the Participant is an eligible Inactive Vested Participant at the time of his death, the spouse receives the Qualified Pre-Retirement Survivor Annuity set forth in Section 8.5(a). These Qualified Pre-Retirement Survivor Annuity benefits may not be waived by any pre-nuptial agreement. Waivers of these Qualified Pre-Retirement Survivor Annuity benefits are subject to the requirements of Internal Revenue Code Sections 401 and 417 and all related Regulations, including but not limited to Regulation 1.401(a)-20. Waivers must be on forms supplied by the Fund. A spouse's signature consenting to a waiver must be notarized. The waiver must name the non-spouse beneficiary who will receive the pre-retirement death benefit. A spouse's waiver may only be revoked with the written consent of the Participant. The non-spouse beneficiary may be changed by the Participant only with the notarized written consent of the spouse. The Participant may revoke the non-spouse beneficiary designation by execution of a form provided by the Fund. Upon revocation any then spouse of the Participant becomes the beneficiary of the pre-retirement death benefit subject to a subsequent spousal waiver by way of the process set forth above.
Any unmarried Participant may name any pre-retirement death benefit beneficiary of the Participant's choice. If an unmarried Participant subsequently marries any prior designation of beneficiary by the participant is automatically revoked as to all pre-retirement death benefits which may be payable by the Plan. An unmarried Participant may change the pre-retirement death benefit beneficiary at any time. However, if an unmarried Participant, or a married Participant whose spouse has consented to a waiver, dies any benefits payable under Section 8.4 or 8.5 shall be paid to the Participant's surviving children under the age of 21 in accord with Section 8.4 or 8.5 prior to any payment to any other designated or preference beneficiary. All beneficiary designations must be on forms provided by or approved by the Fund offices. All designations must be signed and dated by the Participant. All revocations, except automatic revocations, must be on forms supplied or approved by the Fund Offices and must be signed and dated.
Any surviving spouse receiving pre-retirement death benefits pursuant to Section 8.4 or 8.5 may execute a beneficiary designation on a form supplied or approved by the Fund Offices. Any such designation is subject to benefits, if any, payable to the surviving children of the Participant pursuant to Section 8.4 or 8.5 which payments will be made to the Participant's surviving children under the age of 21 prior to any payment to the surviving spouse's designated beneficiary.
Payments to surviving spouses, designated beneficiaries and preference beneficiaries fully discharges periodic death benefit amounts payable under the Plan unless a contrary claim is received by the Fund prior to the periodic payment. In cases of contested periodic payments the Fund may commence an appropriate proceeding including but not limited to interpleader actions. In any such court action the Fund's attorney fees and costs shall be paid from any contested periodic payments deposited with the court.
8.4 Pre-retirement Death Benefit for Active Participants. Upon the death of an Active Participant after completing (A) five (5) Vesting Service Years or (B) ten (10) years of Total Credited Service, at least two (2) of which are Credited Future Service, or an Active Participant who has attained their Normal Retirement Date as defined in Section 3.1, benefits will be payable pursuant to (a) or (b) below, whichever is applicable.
8.5 Pre-Retirement Death Benefit for Inactive Vested Participants.
8.6 Dependent's Benefit for Disabled Participants.
Upon the death of a Disabled Participant before his Normal Retirement Date, a monthly benefit equal to 50% of the disability pension payable to the Disabled Participant will be continued to his eligible children under age 21. The monthly pension will be divided equally among all such eligible children. A child shall cease to be an eligible child upon the earlier of death or attainment of age 21, and the benefit provided under this Section 8.6 shall cease when there are no longer any eligible children.
If at the Participant's death, the Joint and Survivor Pension Form described in Sections 7.6 and 7.7 is in effect, then the amount of each monthly payment to be divided among the children will be reduced by the amount of each monthly payment to the surviving spouse, so that no monthly payments will be made to the Participant's children during the surviving spouse's lifetime.
8.8 Any death benefit payable to a minor may be paid to the legally appointed guardian of the minor or, if there be no such guardian, to such adults as have, in the opinion of the Trustees, assumed the custody and principal support of said minor.
8.9 In accord with the requirements of Internal Revenue Code Section 401(a)(9) and the regulations related thereto if a Participant dies before the Participant has begun to receive any distribution of their interest under the Plan and no benefits are payable to a surviving spouse in the form of a Qualified Pre-Retirement Survivor's Annuity or to the surviving children under age 21 then in that event the Participant's entire interest shall be distributed within 5 years of the Participant's death. The provisions of the Internal Revenue Code Section 401(a)(9) and related regulations override any distribution feature of this Plan which is inconsistent with that Section and related regulations.
If no benefits are or will be payable to a surviving spouse in the form of a Qualified Pre-Retirement Survivor Annuity, no benefits are payable to a surviving child under age 21 and more than 60 guaranteed monthly benefits are then payable then during such period the total paid per month pro-rata per beneficiary shall be equal to the result of the number of guaranteed payments times the guaranteed monthly amount divided by 60.
The 5 year rule described above does not apply to Qualified Pre-Retirement Survivor Annuity payments payable to a surviving spouse who is, under the Plan, deemed to be the designated beneficiary of the Participant. For purposes of payments under the Plan to the Participant's surviving children under age 21 those children are deemed the designated beneficiaries of the Participant and any surviving spouse. Distributions to these designated beneficiaries shall, except as described below, commence within one year of the death which results in these distributions. Distributions to these designated beneficiaries shall be in accord with the Internal Revenue Code Section 401(a)(9) and applicable regulations and shall be for a period not extending beyond the life expectancy of these designated beneficiaries. These payments may continue for periods longer than five years.
A surviving spouse entitled to Qualified Pre-Retirement Survivor Annuity may elect to defer receipt of the annuity to a date no later than the date the deceased Participant would have attained 70 ½. If such a surviving spouse dies before their distribution begins and no benefits are payable to surviving children under age 21 the 5 year rule shall apply to the surviving spouse's guaranteed benefit effective with the date of the surviving spouse's death.
8.10 Due to the restrictions of the Internal Revenue Code the Plan does not permit Living Trusts to be a named beneficiary. This limitation does not prevent a beneficiary or Participant from requesting automatic deposit of periodic payments payable to the Participant or beneficiary into a bank account which is held by a Living Trust.
8.11 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
9.1 The Trustees shall be the named fiduciaries for, and, as such, shall administer the Plan according to the powers and duties granted them in accordance with the Trust Agreement.
9.2 No Covered Employee shall be permitted to make any contributions to the Fund. The sole source of contributions to the Fund shall be Employer Contributions made in accordance with the applicable Contribution Agreement.
9.3 All applications for benefits under this Plan, whether on account of retirement, disability or death, and all elections and designations made by Participants or beneficiaries under this Plan shall be made in writing to the Trustees in the form and manner prescribed by the Trustees. The Plan Administrator will notify the participant when a benefit under the Plan is requested. Such notification shall include a general description of the material features, and an explanation of the relative values of, the optional forms of benefit available under the plan in a manner that would satisfy the notice requirements of IRC 417(a)(3) and Treas. Reg. 1.417(a)(3)-1. Any misrepresentation by the applicant shall constitute grounds for the denial, suspension or discontinuance of benefits, in whole or in part, for such applicant, or for the cancellation or recovery of benefit payment made in reliance thereon.
9.4 The Trustees shall have the right to require submission of all necessary information before any benefit is paid, including records of employment; proofs of date of birth, disability or death; and evidence of existence, marriage and dissolution of marriage. No benefit dependent in any way upon such information shall be payable unless and until the information so required has been furnished. Upon receipt of such information, the Trustees shall determine the eligibility of the applicant for such benefit, and shall notify the applicant of their determination and the amount of any benefit payable.
9.5 No benefit payments will be made under the Plan until an application is made therefore to the Trustees as provided in Section 9.3 and all information required by Section 9.4 has been submitted.
9.6 No Participant, Annuitant, Beneficiary or other person shall have any right or claim to benefits under this Plan, other than as specified in this Plan. If any person shall have a dispute with the Trustees as to eligibility, type, amount, or duration of such benefits, the dispute shall be resolved solely by the Trustees under and pursuant to this Plan, who shall have the power to construe in their sole discretion the provisions of the Plan and their decision shall be final and binding upon all parties thereto, subject to applicable federal law. The Trustees shall also have the authority to make findings of fact in any claim presented to the Board of Trustees and shall be the sole and exclusive judge of the credibility of any witness providing testimony or written statements for consideration by the Board of Trustees.
9.7 Suspension of Benefits on Re-employment of a Pensioner.
9.8 If a Pensioner is re-employed in Covered Employment, he may accrue additional benefits, subject to the following limitations:
9.9 The Trustees or the insurance company, if any, which is providing benefits under the Plan to the Pensioner, shall have the right to require satisfactory evidence that a Pensioner is living on each and every date when a pension benefit is due such Pensioner. In the absence of such evidence, when required, any payments due shall not be made until such evidence has been received.
9.10 If, in the judgment of the Trustees, the Pensioner or Disabled Participant is unable to care for his affairs because of illness, accident, or incapacity, either mental or physical; then, any payment due, unless claim shall have been made therefore by a duly appointed legal representative, may be paid to the spouse or other person or party deemed by the Trustees to have incurred expense for the Pensioner or Disabled Participant. Any such payment shall be a payment for the account of the Pensioner or Disabled Participant, and shall be a complete discharge of the liability therefore under the Plan.
9.11 Neither the Trustees, nor any Employer, shall in any manner be liable for or subject to the debts or liabilities of any Covered Employee or any individual entitled to Pension Benefits. No individual entitled to any benefits under the Plan shall have any right to alienate, hypothecate or encumber his interest in any benefits under the Plan and such benefits shall not in any way be subject to claim of his creditors or liable to attachment, execution or other process of law. This provision shall not apply to any transfer made pursuant to a federal tax lien or a qualified domestic relations order.
9.12 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
9.13. Overpayments and Underpayments of Benefits
10.1 Subject to the terms and conditions of the Contribution Agreement, the Trust Agreement, and any applicable laws or regulations, the Trustees may at any time or times amend or modify the Plan, retroactively or otherwise, in any respect consistent with the intent of the Plan and with the requirement that at all times the Plan will conform to the applicable requirements of the Labor Management Relations Act, 1947, as amended, the Employee Retirement Income Security Act of 1974, as amended, and to the Internal Revenue Code, and that Employer Contributions will be deductible as an item of expense by the Employer for income tax purposes. No amendment or modification of this Plan may reduce any benefits payable to Pensioners who have retired prior to such amendment or modification. No amendment shall change the vesting schedule under the Plan unless each Vested Participant and each other Participant who is accruing Vesting Service Years as of the later of the date of adoption of or the effective date of such amendment shall have a nonforfeitable percentage of his accrued benefit at least as great as the nonforfeitable percentage determined under the vesting schedule in effect prior to such amendment. No such amendment or modification shall result in any portion of the funds to be recovered by any Employer, the Association or the Union, or cause or result in the expenditure of any portion of the funds for any purpose other than for the exclusive benefit of Participants or beneficiaries, or for any payment or expenditure authorized under the Plan or the Trust Agreement. No amendment or modification of the Plan shall be adopted which will in any way impair the actuarial soundness of the Plan.
10.2 If the Trust Agreement or the Contribution Agreement is amended by the insertion, modification, or deletion of any provisions relating to or affecting this Plan, the Trustees, to the extent legally permissible and in conformity with Section 10.1, shall amend the Plan to effectuate the intent of such amendment of the Trust Agreement or the Contribution Agreement.
10.3 If this Plan is amended, the Trustees shall furnish a copy of such amendment promptly to all Participants, Retirees, Beneficiaries, as well as the Associations, the Union, the Employers, and the Plan administrator.
10.4 It is intended that the Plan will constitute a qualified pension plan under the applicable provisions of the U.S. Internal Revenue Code, as now in effect or hereafter amended. Any modification or amendment of the Plan may be made retroactively, if necessary or appropriate, to qualify or maintain the Plan as a plan meeting the requirements of the applicable provisions of the U.S. Federal tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder.
10.5 No contribution to the Trust required from any Employer by the Trust Agreement shall be recoverable by Employers, or be used for or diverted for purposes other than for the exclusive benefit of the individuals entitled to benefits under the Plan, provided, however, that in the event any Employer shall make any payment to the Trust in excess of the amount required by the Trust Agreement, then (1) to the extent such excess payments by such Employer are currently deductible under Section 404 of the Internal Revenue Code, such excess contributions may be applied in satisfaction of any succeeding payment due from such Employer, or, in the discretion of the Trustees, may be refunded to the Employer within six (6) months of the date the Trustees discover the mistake, and (2) to the extent such excess payments are not currently deductible under Section 404 of the Internal Revenue Code, such excess contributions shall be returned to the Subscribing Employer.
10.6 In no event shall this Plan be merged or consolidated with any other plan, nor shall there be any transfer of assets or liabilities from this Plan to any other plan, unless immediately after such merger, consolidation or transfer, each Covered Employee shall (if the Plan then terminated) be entitled to receive a benefit immediately after the merger, etc., which is equal to or greater than the benefit he was entitled to immediately before the merger, etc. (if the Plan had then terminated).
10.7 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
11.1 It is expected that the Plan will be continued in effect indefinitely and that each Employer will continue to make contributions required by the applicable Contribution Agreement. Subject to the Trust Agreement, the Trustees reserve the right to institute proceedings to effect a partial or total termination of the Plan.
In the event of a partial or total termination of the Plan, the Normal Pension Benefit, credited to each Participant as of the date of termination will be nonforfeitable.
11.2 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
12.1 The provisions of Article 12 shall apply only to Participants who were covered under this Plan on July 1, 1976.
12.2 Retirement Date. The Normal Retirement Date for said Participant shall be the earlier of (a) or (b) as follows:
12.3 Normal Pension Benefit. The Normal Pension Benefit for said Participant shall be the greater of (a) or (b), as follows:
12.4 Vested Benefit on Termination of Coverage.
12.5 Disability Benefit. The commencement date for monthly disability benefit payments or said Participant, who was a Covered Employee on July 1, 1976, shall be determined as of the earlier of (a) or (b) as follows:
12.6 Contributions Made to the Plan Under a Salting Agreement. Any and all contributions transmitted to the Pension Trust Fund pursuant to a duly executed Salting Agreement between the Participant and a sponsoring IBEW Local Union to this Plan or any other Related IBEW Local Union shall be accepted by the Trustees and benefits shall be accrued under the Plan by the Participant on whose behalf such contributions were made. Services or employment performed by a Participant pursuant to a duly executed Salting Agreement shall not constitute Non-Covered Electrical Employment as described in Section 1.16. No grace period shall be applied during any period in which a Participant was working under a duly executed Salting Agreement.
12.7 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
13.1 Under all circumstances, benefits payable under this Plan shall be at least equal in value to the benefits accrued under the IBEW Local Union 440 Pension Plan as that plan existed on August 31, 1975.
13.2 To the extent that benefits are payable under Section 13.1 of this Article 13, such benefits may be paid under the terms and conditions of the IBEW Local Union 440 Pension Plan as it existed on August 31, 1975, provided, however, that in all instances the values of such benefits shall not exceed the values as established on September 1, 1975, provided further that Section VI (a)(2)(d) and Section VI (a)(2)(e) of the Pension Plan of Local Union 440 International Brotherhood of Electrical Workers of Riverside County be amended as follows: the phrase "two consecutive calendar years," wherever it appears in these sections, shall be replaced by the phrase "twenty-four consecutive calendar months"
13.3 Irrespective of Sections 13.1 and 13.2, if benefits are otherwise payable under this Plan to Participants who were former IBEW Local Union 440 Pension Plan participants, then, to the extent that benefits are payable under Section 13.2, the benefits otherwise payable under this Plan shall be reduced in an amount which has the Actuarial Equivalent value of such benefits. All benefit reductions shall be determined by the actuary for the Plan.
13.4 The retirement benefits payable to former IBEW Local Union 440 Pension Plan participants who are retired and receiving a monthly pension as of August 31, 1975, shall be increased, effective September 1, 1975, to $6.00 per month for each year of Credited Past Service. No death benefits shall be paid pursuant to this provision.
13.5 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
14.1 Purpose. Pro Rata Pensions are provided under this Plan for Employees:
14.2 Related Plans. By resolution duly adopted, the Board of Trustees may recognize another pension plan as a Related Plan. Recognition of employment under the Related Plan, and payment of Pro Rata Pensions with respect to such employment will be governed by the reciprocity agreement between this Plan and the Related Plan, subject to the rules of this Article 14.
14.3 Related Hours. The term "Related Hours" means hours of employment that are creditable under a Related Plan. Effective July 1, 2010, for the sole purpose of
determining eligibility for an Early Retirement Benefit prior to age 55 with Total Credited Service of 42,500 hours under Section 3.2(b), Related Hours shall be treated as if they were Total Credited Service under this Plan only if such hours were worked prior to July 1, 2010.
14.4 Related Credit. The term "Related Credit" means credited service, or portions thereof, creditable to an Employee under a Related Plan, recognizable by this Plan pursuant to the terms of a reciprocity agreement.
14.5 Combined Pension Credit. The term "Combined Pension Credit" means the total of an Employee's Related Credit plus the Pension Credit accumulated under this Plan (hereinafter referred to as Southern California Credit) including but not limited to the Future Service Unit requirement.
14.6 Non-Duplication. An Employee shall not receive double credit for the same period of employment.
14.7 Eligibility for a Pro Rata Pension. An Employee who is retired shall be eligible for a Pro Rata Pension if he would be eligible for a Pension under this Plan if his Combined Pension Credit were treated as Southern California Credit.
14.8 Break in Service. Related Hours shall be considered in determining whether an Employee has incurred a Divesting Service Year.
14.9 Amount of Pro Rata Pension. The monthly amount of the Pro Rata Pension payable under this Plan is determined in the same way as the Normal, Early Retirement, Disability, Vested Pension or Survivor Pension is determined, based solely on the Pension Credits earned under this Plan. The benefit unit on which a Pro Rata Pension is based may not exceed the benefit unit applicable to the Participant on his last Covered Hour under this Plan.
14.10 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
15.1 Purpose. By allowing for a transfer of contributions between participating Funds, a pension is provided or enhanced under this Plan for employees who would otherwise be ineligible for a pension because their years of employment have been divided between different pension plans or, if eligible, whose pension would be less than the full amount because of such division of employment. The provisions of this Article are operative only if the Electrical Industry Pension Reciprocal Agreement has been adopted by the signatory Funds in whose jurisdiction the employee works.
Transfer of contributions to or from this Plan shall or may be made pursuant to forms or methods as set forth in the Electrical Industry Pension Reciprocal Agreement from time-to-time. It is the sole responsibility of the individual requesting a transfer of contributions to timely register for transfers in accord with the provisions of the Electrical Industry Pension Reciprocal Agreement and to file any and all required forms, if any, with the appropriate Plan.
15.2 Home Pension Fund. This Plan is the Home Defined Benefit Pension Fund of employees who are members of IBEW Local Unions 11, 440, 441 and 477, all of which Local Unions participate in this Plan by virtue of Collective Bargaining Agreements requiring contributions to this Plan. If an employee is not a member of an IBEW Local Union, or the employee's IBEW Local Union does not have a pension fund, or the employee is not a Participant in or has no credited service in his Local Union's fund, then his Home Defined Benefit Fund will be the Participating Fund or Funds in which he currently is a Participant or has credited service at the time he files an authorization form requesting reciprocity.
15.3 Participating Pension Fund. Each jointly administered Defined Contribution Plan or jointly administered Defined Benefit Plan which has executed the Electrical Industry Pension Reciprocal Agreement which covers employment within the jurisdiction of an IBEW Local Union is considered a Participating Pension Fund.
15.4 At least monthly, each Participating Pension Fund(s) shall transfer to the electing Employee's Home Fund(s) an amount of money equal to all contributions received. There shall be no administrative fee charged by a Participating Fund for the transfer or for any other reason. If the Employee electing reciprocity has two Home Funds, a Defined Benefit Fund and a Defined Contribution Fund, the Participating Funds shall transfer all monies to whichever Home Fund is the same type as the Participating Fund (Defined Benefit to Defined Benefit, Defined Contribution to Defined Contribution). If the Employee electing reciprocity has only one Home Fund, the Participating Fund(s) shall transfer all monies to that Home Fund. All hours worked in any Participating Pension Fund for which contributions are transferred pursuant to an Employee's election for reciprocity shall be counted as vested service by the Employee's Home Pension Fund receiving the transferred contributions on an hour-for-hour basis. In computing the amount of benefits payable under the Home Pension Fund receiving reciprocal contributions, full credit shall be given to Employer Contributions forwarded to said Pension Fund by Participating Pension Funds, as well as those employer contributions received or required to be received by the Home Pension Fund directly from its contributing employers. The eligibility for and/or payment of the pension will be solely subject to the provisions of the Home Pension Fund receiving reciprocal contributions.
15.5 Special Provisions. Participants in this Plan may also participate in the Southern California IBEW-NECA Defined Contribution Plan and/or the Orange County IBEW-NECA Defined Contribution Plan. For Plan Years commencing on and after July 1, 2004, notwithstanding anything in this Plan to the contrary, no Plan Year in which at least 375 hours of reciprocal contributions are made on behalf of a Participant to either of these Defined Contribution Plans shall constitute a portion of a 'Grace Period' of such a Participant under this Plan. Effective June 1, 2004, the preceding sentence includes contributions that are contributed directly to either the Southern California IBEW-NECA Defined Contribution Plan or the Orange County IBEW-NECA Defined Contribution Plan through the terms of a collective bargaining agreement, Non-Bargaining Participation Agreement or a reciprocity authorization.
Reciprocity contributions shall be received from Participating Pension Funds pursuant to appropriate authorizations by the Employee under the Electrical Industry Pension Reciprocity Agreement. Contributions which a Participating Pension Fund is willing to transfer may be received for a period not to exceed 18 months prior to Employee's authorization.
Reciprocity contributions shall be transmitted to Participating Pension Funds on a prospective basis pursuant to an Employee's authorization under the Electrical Industry Pension Reciprocity Agreement. If a Participating Pension Fund is willing to accept a transfer of contributions received prior to the employee's authorization for transfer such contributions shall be transferred for a period not to exceed 18 months prior to the employee's authorization for transfer.
The provisions of this Article 15 shall be effective for reciprocal contributions received by the Pension Trust Fund on and after June 1, 2005. The preceding provisions of this Section are effective on the stated effective date. Hourly contributions received by the Southern California IBEW-NECA Defined Contribution Plan via reciprocity for hours worked prior to February, 1996 shall also qualify as Vesting Hours under the Pension Plan.
15.6 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
16. 1 Purpose and Scope. The plan amendments set forth in this Article are adopted to reflect certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). These amendments are intended to constitute good faith compliance with the requirements of EGTRRA and are to be construed in accordance with EGTRRA and the guidance issued thereunder. Except as otherwise provided herein, the amendments contained in this Article shall be effective as of the first day of the first Plan Year beginning after December 31, 2001. The provisions of this Article shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Article.
16. 2 Limitations on Benefits.
16. 3 Increase in Limit on Compensation Taken Into Account.
16.4 Direct Rollover of Plan Distributions.
16. 5 Modification of Top-Heavy Rules
16.6 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.
The provisions of this Article 17 shall be effective October 28, 2009 for all benefits commenced on or after October 28, 2009 and shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Article. Benefits commenced prior to October 28, 2009 continue to be governed by other applicable provisions of the Plan. Any internal cross-references in the Sections of this Article are for convenience only and are not inclusive or controlling.
The Pension Protection Act of 2006 ("PPA") as amended by the Worker, Retiree and Employer Recovery Act of 2008 (WRERA), requires the Trustees of a multiemployer pension plan that has been certified by the plan's actuary as being in Critical status (also known as "Red Zone" status) to develop a Rehabilitation Plan ("RP"). An RP must prescribe actions, including recommended actions to be taken by the bargaining parties that are expected to enable a plan to meet stated financial benchmarks by the end of the Rehabilitation Plan Period, based on reasonably anticipated experience and on reasonable actuarial assumptions. On September 28, 2009, the Southern California IBEW-NECA Pension Plan ("Plan") was certified by its Actuary to be in Critical status for the Plan Year beginning July 1, 2009, pursuant to IRC Section 432(b)(3).
This Rehabilitation Plan:
Rehabilitation Plan Period
The Rehabilitation Plan Period for the Plan is the period of 13 Plan Years beginning July 1, 2010. The Board of Trustees of the Plan, on October 15, 2009, elected to extend the 10-year Rehabilitation Plan Period under IRC Section 432(c)(4)(A) to 13 years pursuant to Section 205 of the Worker, Retiree, and Employer Recovery Act of 2008.
The Trustees also determined, based on information about the expiration of current collective bargaining agreements, that the Rehabilitation Period will begin on July 1, 2010. The Fund is expected to emerge from Critical Status by July 1, 2023, based on reasonable assumptions and implementation of this Rehabilitation Plan.
If the Fund Actuary certifies before the end of this period that the Plan is no longer in Critical status for a Plan year, the Rehabilitation Plan Period will end as of the close of the preceding Plan year.
Based on the projected credit balances calculated for purposes of the Plan Actuary's September 28, 2009 certification that the Plan is in Critical status, the RP must contain schedules of plan changes and/or contribution rate changes that are projected to enable the credit balances to be positive by the end of the Rehabilitation Plan Period. Pursuant to the PPA an RP must include a proposed "default schedule" that identifies the necessary reductions in the amount of future benefit accruals and reduction in adjustable benefits necessary to achieve the applicable benchmarks, assuming no collective bargaining agreement increases contributions to the plan (other than contributions necessary to achieve the benchmark after amendments have reduced future benefit accruals to the maximum extent permitted by law). This schedule has been prepared and is set forth below in the Default Schedule of this RP.
An RP may also provide a proposed schedule providing increases in contributions necessary to achieve the applicable benchmark, assuming no amendments reducing future benefit accruals, nor reduction in adjustable benefits under the Plan. This schedule has been prepared and is set forth below in Alternative Schedule 1 of this RP. Projections by the Fund Actuary, which were based on reasonable assumptions, indicate that the benchmark will be achieved by increasing the contribution rate by $2.00 an hour effective July 1, 2010. This additional $2.00 per hour in contributions would result in no benefit accrual, would be devoted solely to improving the funding of the Plan and would cease at the later of emergence from Critical Status or upon action by the Board of Trustees.
The Board of Trustees has determined alternative schedules addressing contribution rates and or benefit reductions need to be provided to the bargaining parties as set forth in Schedules 1 and 2 below.
Implementation of Remedies & Schedules
The current monthly benefit of pensioners and beneficiaries whose actual pension benefit commenced prior to October 28, 2009 are not subject to reduction under this Rehabilitation Plan. Benefits for other participants and deferred benefits of all Participants are determined as follows:
All participants who terminated or will terminate covered employment prior to becoming covered by a Schedule in the Collective Bargaining process, and not in pay status as of October 28, 2009, and any deferred benefit of all Participants, shall have their benefits determined based on the benefit changes described under the applicable Schedule upon implementation of the applicable Schedule to their former bargaining unit. To the extent provided under the implemented Schedule the benefits of a Participant who commenced benefits under the current Plan on or after October 28, 2009, and any deferred benefit of all participants, shall, to the extent required by the applicable Schedule, see their benefits reduced in accord with the applicable Schedule. These provisions shall take effect on the later of the date the applicable Schedule is implemented for the Participant's former bargaining unit or the date that benefits can be eliminated allowing for legally required advanced notice.
As with any Schedule the Default Schedule is implemented upon adoption by the Collective Bargaining Parties as the applicable Schedule for a particular bargaining unit. However, should the bargaining parties fail to elect any Schedule within 180 days following the expiration date of a collective bargaining agreement in effect as of October 28, 2009 the Board of Trustees are required by law to unilaterally implement the Default Schedule for that particular bargaining unit.
For non-bargaining unit employee Participants employed by employers who also contribute on behalf of bargaining unit Participants the Schedule and implementation date is the same as the Schedule and implementation date for that employer's bargaining unit employees. For non-bargaining unit employee participants not employed by an employer that contributes pursuant to a collective bargaining agreement their implementation date is the earlier of the employer's adoption of a Schedule or 180 days from July 1, 2010.
Reciprocity and other issues under the Rehabilitation Plan and Critical Status determination.
Off-benefit contributions payable under the Schedules result in no benefit accruals and are devoted solely to improving the funding status of the Plan. The same is true in terms of any employer surcharge contributions received or payable for periods prior to the collective bargaining parties adoption and implementation of a Rehabilitation Plan Schedule. Accordingly, individuals who work inside the jurisdiction of this Plan and have employer contributions transferred to another Plan pursuant to the money-follows-the-person Reciprocity Agreement shall see all increased off-benefit contributions under any Schedule and all employer surcharge contributions remain in this Plan for funding purposes only. Only on-benefit contributions received will be transferred.
The benefits of an Alternative Schedule are available only for work performed under a Collective Bargaining Agreement or Subscription Agreement which specifically adopts the Alternative Schedule. When a Participant works outside the jurisdiction of this Plan, the individual, absent an extraordinary agreement, is not working under an agreement which adopts an Alternative Schedule. When such a Participant reciprocates contributions to this Plan pursuant to the money-follows-the-person Reciprocity Agreement for work performed outside of this Plan's jurisdiction, it must be credited to the Default Schedule absent an extraordinary agreement by the employer to adopt an Alternative Schedule for such work.
Some individuals who never become vested in benefits under this Plan may be entitled to a pro-rata Pension from this Plan due to pro-rata Reciprocity Agreements. The pro-rata Pension of such a non-vested individual shall be calculated and paid pursuant to the Default Schedule except to the extent of Covered Hours under an Alternative Schedule which shall accrue benefits in accord with the Alternative Schedule under which the Covered Hours were worked.
If a Participant works under a particular Schedule and subsequently works under another Schedule benefits accrued during the first period of employment and for prior periods under the same collective bargaining agreement, will be determined under the applicable Schedule and benefits accrued during employment under a second Schedule shall be determined under the second Schedule. To the extent required by law this may result in separate and distinct annuities being provided to an individual Plan Participant to assure compliance with all applicable law.
In the event that a particular Schedule is implemented for an employer, and then that employer, in a subsequent negotiation, bargains a different Schedule, the Trustees may develop a revised contribution Schedule for that particular situation.
Rules During the Rehabilitation Period and Adoption of the Rehabilitation Plan
On and after September 28, 2009, the Board of Trustees may not accept a collective bargaining agreement or participation agreement that provides for: (a) lower contributions for any participants; (b) a suspension of contributions with respect to any period of service; or (c) any new direct or indirect exclusion of younger or newly hired employees from plan participation. During the plan adoption period, the trustees may not amend the plan in any way that increases plan liabilities by reason of an increase in benefits, change in accruals, or change in the vesting rate, unless the amendment is necessary to maintain the plan's qualified status.
Once the RP has been adopted, the Plan may not be amended in a manner that is inconsistent with the RP. In addition, the Plan may not be amended to increase benefits, including future benefit accruals, unless the Fund Actuary certifies that the benefit increase is consistent with the RP and is paid for out of contributions not required by the Rehabilitation Plan to meet the applicable benchmark.
Based on reasonable assumptions, the Fund is expected to emerge from Critical Status by the Plan Year beginning July 1, 2023. The Trustees recognize the possibility that actual experience could be less favorable than the reasonable assumptions. Thereforee, the Trustees are establishing the following annual standards to reflect possible actuarial losses and still keep the Fund on target to emerge from Critical Status by the end of the Rehabilitation Period.
Annual Updating of RP
Each year the Fund's Actuary will review and certify the status of the Fund under the PPA funding rules and whether the Fund is or is not making the scheduled progress toward the requirements of the RP. To that end, the chart below provides the projected credit balances for each year of the Rehabilitation Plan. If the Board of Trustees determines that it is necessary in light of updated information they will revise the RP and the schedules recommended under it. Notwithstanding subsequent changes in contribution schedules, a schedule of contribution rates provided by the Board of Trustees and relied upon by the bargaining parties in negotiating a collective bargaining agreement shall remain in effect for the duration of that collective bargaining agreement. However, a collective bargaining agreement that is renewed or extended will need to include terms consistent with one of the Schedules in effect at the time of the renewal or extension. A failure to adopt such an updated Schedule would require the Board of Trustees to unilaterally implement the Default Schedule 180 days subsequent to the expiration of a collective bargaining agreement containing a Schedule.
Plan Year Ending 6/30
Projected Credit Balance
Benefit changes will become effective pursuant to the terms of the Rehabilitation Plan as soon as legally permissible after a Rehabilitation Plan Schedule is adopted or implemented and those benefit changes are expected to be permanent, as required by the PPA for benefits commencing on or after October 28, 2009. The Social Security Level Income form of payment is no longer permitted.
DEFAULT SCHEDULE FOR BENEFITS COMMENCING ON AND AFTER OCTOBER 28, 2009
The only forms of benefit payment available to a retiring participant commencing receipt of benefits on or after October 28, 2009 shall be a single life annuity with no guarantee period, the 50% Joint-and-Survivor Pension, and the 75% Joint-and-Survivor Pension. The reduction factors for the Joint-and-Survivor payment forms will be adjusted so as to be actuarially equivalent to a single life annuity with no guarantee period.
Employer contribution rate levels shall not increase. If an existing Agreement calls for different rates for apprentices or other classifications than the journeyman rate that practice may continue under this Default Schedule.
ALTERNATIVE SCHEDULE 1
Benefit accruals under a Collective Bargaining Agreement after this Schedule is implemented shall be determined disregarding any contribution increases specifically required under this Schedule. The Level Income option is eliminated October 28, 2009. Except for the foregoing no other benefit accrual changes or reductions are provided for under this Schedule.
Employer contribution rate levels shall increase by $2.00 per hour under this Alternative Schedule 1 for July 1, 2010 hours worked and hours worked thereafter.
All additional contributions pursuant to this Schedule over the amounts required under collective bargaining agreements in effect as of October 28, 2009 shall be disregarded for purposes of determining participants' accrued benefits. Accrued benefits are in no fashion based upon the amount of increased employer contributions under the foregoing Schedule or any employer surcharge contributions payable by the employer. These contributions shall be utilized solely to improve the funding condition of the Plan and shall result in no benefit accruals whatsoever.
If an existing agreement calls for different rates for apprentices or other classifications than the journeyman rates specified above, proportional off-benefit contribution increases will be required.
ALTERNATIVE SCHEDULE 2
Employer contribution rate levels shall increase by $1.30 per hour under this Alternative Schedule 2 for July 1, 2010 hours worked and hours worked thereafter.
All additional contributions pursuant to this Schedule over the amounts required under collective bargaining agreements in effect as of October 28, 2009 shall be disregarded for purposes of determining participants' accrued benefits. Accrued benefits are in no fashion based upon the amount of increased employer contributions under the foregoing Schedule or any employer surcharge contributions payable by the employer. These contributions shall be utilized solely to improve the funding condition of the Plan and shall result in no benefit accruals whatsoever.
If an existing agreement calls for different rates for apprentices or other classifications than the journeyman rates specified above, proportional off-benefit contribution increases will be required.
EXECUTED at _______________, California on this ____ day of ________, 2015 by the BOARD OF TRUSTEES of the SOUTHERN CALIFORNIA IBEW-NECA PENSION TRUST FUND.
Section 1. Preamble
This Appendix I to the Southern California IBEW-NECA Pension Plan sets forth rules applicable to the determination of Employer Withdrawal Liability as established under the Multiemployer Pension Plan Amendments Act of 1980 (the Act). These rules shall apply to complete or partial withdrawals, as defined in the Act, occurring after April 28, 1980. The relevant provisions of the Act shall apply to any matter affecting an Employer's withdrawal liability to the extent that such matter is not addressed in this Appendix I.
Section 2. In determining the fractions for allocating:
The following rules described in Sections 3 and 4 will apply in determining the denominator of such fractions.
Section 3. In calculating the denominator for the fractions described in Section 2, only contributions of significant withdrawn Employers will be excluded.
Section 5. The Board of Trustees has determined that the Plan primarily covers employees in the building and construction industry.
Notwithstanding any other plan provisions to the contrary, any optional form subject to 417(e)(3) shall be calculated as the greater of (i) or (ii) as follows:
(Not included. See explanatory note in Table of Contents)
If a Participant is or was engaged in Military Service during a period covered by applicable federal law governing veteran's reemployment rights, he may earn Credited Future Service pursuant to Section 1.12, Credited Past Service pursuant to Section 1.13(c) and Vesting Hours pursuant to Section 1.30(d).
As of July 1, 1986, Military Service must occur during the following periods in order for a veteran's reemployment rights to be protected by federal law:
The above schedule of dates may be changed from time to time to reflect changes in applicable federal law pertaining to veteran's reemployment rights.
Effective October 1, 1994, notwithstanding any provision of this Plan to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with §414(u) of the Internal Revenue Code.
Effective June 1, 2002, contributions shall be credited on behalf of a Participant during periods of military service in accordance with Section 1.12 of the Plan at the hourly employer contribution rate for the Southern California IBEW-NECA Pension Plan in effect in the collective bargaining agreement between the IBEW and NECA which governs the jurisdiction of the Participant's IBEW membership for the month in which the hours are being credited. Contributions shall be credited on behalf of a Non-Bargaining Unit Employee in accordance with the terms of any Non-Bargaining Agreement in effect for the Participant's last employer prior to the commencement of military service in accordance with the hourly employer contribution rate specified in such Non-Bargaining Agreement for the month in which hours are being credited.
Contributions credited under this Appendix are paid out of Plan assets and are contingent upon satisfaction of the requirements of Sections 1.12 and 1.27(b).