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June 15, 2010
The Board of Trustees of the Southern California IBEW-NECA Pension Plan has adopted a clarification to the postponed retirement provisions of the Pension Plan. The following is an explanation of the change.
HOW IS MY PENSION CALCULATED IF I START TO RECEIVE MY BENEFIT AFTER MY NORMAL RETIREMENT AGE?
If you are eligible for a Normal Retirement Benefit due to your age and service and both of the following conditions are met, your benefit amount at your Normal Retirement Date will not be actuarially increased upon your pension effective date:
If either of the above conditions are not met, then your benefit accrued as of your postponed retirement date may be increased if either of the following amounts is larger:
Example 1 - Working past age 65 in non-covered suspendible employment:
Jim Johnson was eligible for Normal Retirement at age 65 and has an accrued benefit of $1,000. He continues to perform work until age 65-1/2 for at least 40 hours per calendar month in the State of California which would have resulted in suspension of pension benefits and for which no benefits are earned under the Plan. At age 65-1/2 when he retires, he would receive his $1,000 accrued benefit as of his postponed retirement date with no further increase.
Example 2 - Working past age 65 in covered employment:
Assume the same facts as for Example 1 except Mr. Johnson continues to perform work in covered employment until age 65-1/2 for at least 40 hours per calendar month in the State of California which would have resulted in suspension of pension benefits. He earns an additional $50 in pension benefits as a result of his work after age 65. At age 65-1/2 when he retires, he would receive a pension of $1,050 as of his postponed retirement date with no further increase.
Example 3 - Commencement after Normal Retirement Age without working:
George Jones was eligible for Normal Retirement at age 65 and had an accrued benefit of $1,000 but did not perform work which would have resulted in suspension of pension benefits. He elects to commence benefits age 66 and was mailed a notice that his benefits would be suspended if he continued to work in covered employment after age 65. His benefit is increased to the larger of the following amounts:
As a result, Mr. Jonesâ€™ benefit would be $1,096.00 payable at age 65.
If Mr. Jones had performed covered work for which benefits accrue and which would have resulted in suspension of pension benefits for some but not all of the 12 months between age 65 and age 66, his accrued benefit would increase for only those months in which he worked. That amount would then be compared to the original $1,000 benefit earned at age 65, increased only for those months in which he did not work.
This Notice shall serve as a Summary of Material Modifications to your Plan and should be kept with your current Summary Plan Description for future reference. If you have any questions regarding this Notice, please contact the Administrative Office at (800) 824-6935 or by mail at Southern California IBEW-NECA Pension Trust Fund, P.O. Box 910918, Los Angeles, CA 90091.
Board of Trustees
Southern California IBEW-NECA Pension Plan