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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.
1.14 "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.
1.17 "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.
1.29 "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.
1.31 "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.