Defined Contribution Plan Document
ARTICLE XIII
PRO-RATA BENEFITS
Section 2. International Reciprocity Agreement.
- Purpose. The Board of Trustees adopted The Electrical Industry Pension
Reciprocal Agreement ("International Reciprocity Agreement") effective
June 1, 1985. The purpose of this Reciprocity Agreement is to protect the
pension rights of a Participant who may lack sufficient vesting service to
be eligible for any pension because his years of employment are divided
between different pension plans, or if eligible his pension would be less
than the full amount because of such division of employment. The
Reciprocity Agreement provides for the transfer of contributions made to
another pension fund (Participating Fund) to the Southern California
IBEW-NECA Pension Trust Fund (Home Fund) if the Participating Fund
has adopted the Reciprocity Agreement and the Participant has executed a
blanket authorization card with the Participating Fund. The Reciprocity
Agreement also provides for the transfer of Contributions received by the
Southern California IBEW-NECA Pension Trust Fund to the Home Fund
if the Participant who has executed a blanket authorization card with the
Southern California IBEW-NECA Pension Trust Fund. Effective July 1,
2004, except as otherwise defined in the Electrical Industry Pension
Reciprocal Agreement, this Plan is the Home Defined Contribution Plan
for participants working under collective bargaining agreements between
IBEW Local 11, 440, 477 and the appropriate NECA Chapter, which
require contributions to this Plan.
- Effective June 1, 2005, 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 received by the Home Pension Fund from a Participating
Pension Fund. The eligibility for and/or payment of pension benefits will
be solely subject to the provisions of the Home Pension Fund receiving
reciprocal contributions.
- 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 the date of an 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.