Defined Benefit Pension Plan Document

Important Note:
Notwithstanding any information in these Plan Document pages or embedded links, for retirements that are first in pay status on or after April 1, 2017, certain Defined Benefit Plan provisions are scheduled to change in accordance with the adoption of Alternative Schedules 1 or 2 under the Second Critical Status Rehabilitation Plan.

ARTICLE 5 - AUTOMATIC, NORMAL AND OPTIONAL FORMS OF PENSION BENEFIT

This section added by: Amendment 5.

Rehabilitation Plan: Beginning with the 2009 Rehabilitation Plan Default Schedule and continuing with the 2016 Rehabilitation Plan's Default Schedule, the Normal Form of Pension for all benefits earned under the Plan's Default Schedules is a life pension without any monthly payments guaranteed. The forms of benefit available for married participants for accruals earned under the Plan's Default Schedules are the 50% Joint and Survivor and the 75% Joint and Survivor.

Beginning with the 2009 Rehabilitation Plan, the Level Income Option is eliminated in all its various forms for all accruals for benefits not in pay status as of October 28, 2009.

For accruals earned under the Plan's Alternative Schedules, with the exception of the Level Income Option, all other benefit forms described in this Article 5 remain available.

Any conflicting provisions of this Article are maintained solely in order to identify benefit forms available for pensions awarded prior to 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:

  1. Joint and 66-⅔% Survivor Pension. The Joint and 66-⅔% Survivor Pension option contains the same provisions as the Automatic Joint and Survivor Pension Form as described in Section 5.1, except that the reduced monthly payments to the Participant's surviving spouse shall be equal to 66-2/3% of the monthly pension payable to the Pensioner under this Joint and 66-⅔% Survivor Pension option.

  2. Joint and 100% Survivor Pension. The Joint and 100% Survivor Pension option contains the same provisions as the Automatic Joint and Survivor Pension Form as described in Section 5.1, except that the monthly payments to the Participant's surviving spouse shall be equal to the monthly pension payable to the Pensioner under this Joint and 100% Survivor Pension option.

  3. Joint and 75% Survivor Pension. The Joint and 75% Survivor Pension option contains the same provisions as the Automatic Joint and Survivor Pension Form as described in Section 5.1, except that the reduced monthly payments to the Participant's surviving spouse shall be equal to 75% of the monthly pension payable to the Pensioner under this Joint and 75% Survivor Pension Option.

  4. Social Security Adjustment Pension. Under this option, if a Participant retires before the date on which he becomes entitled to benefitsunder the Federal Social Security Act, and such date is before his 65th birthday, he may elect this Social Security Adjustment Pension option effective on the date he retires The amount of the monthly benefit payable to the Pensioner before his Social Security payments begin will approximately equal the sum of (a) the monthly benefit payable to the Pensioner under the Plan after his Social Security payments begin, and (b) the benefits expected to become payable to him monthly under the Federal Social Security Act in effect at his retirement date. No death benefit is payable under this form of pension.

  5. Joint and Survivor Social Security Adjustment Pension.
    1. Under this option, if a Participant retires and complies with the marriage requirements of Section 5.1 before the date on which he becomes entitled to
      a benefits under the Federal Social Security Act, and such date is before his 65th birthday, he may elect this Joint and Survivor Social Security Adjustment Pension option effective on the date he retires. Payments under this 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. The amount of the monthly Plan pension payable to the Pensioner before his Social Security payments begin will approximately equal the sum of (a) the monthly pension payable to the Pensioner under the Plan after his Social Security payments begin, and (b) the benefits expected to become payable to him monthly under the Federal Social Security Act in effect at his retirement date.

    2. Upon the Participant's death, prior to the commencement date of his Social Security Pension, monthly payments will continue to his surviving spouse. The amount of pension payable to the spouse shall be equal to 50%, 66⅔%, 75% or 100% (as elected) of the monthly Plan pension payable to the Pensioner before his Social Security payments began, and such amount shall continue to his surviving spouse until the earlier of the Participant's commencement date of his Social Security pension (if the Participant would have survived) or the spouse's date of death. If the spouse should survive to the Participant's commencement date of his Social Security pension (if the Participant would have survived) she shall receive monthly payments for her remaining lifetime in an amount equal to 50%, 66⅔%, 75% or 100% (as elected) of the monthly Plan pension payable to the Pensioner after his Social Security payments began. Upon the death of the Participant on or after the commencement date of his Social Security pension, his surviving spouse shall receive monthly payments for her remaining lifetime in an amount equal to 50%, 66⅔%, 75% or 100% (as elected) of the monthly Plan pension payable to the Pensioner after his Social Security payments began.
  6. Effective for retirement benefits with an initial effective date commencing on or after July 1, 1995, a Participant may select, pursuant to a qualified election, to receive payment of a Joint and 50% Survivor Pension, a Joint and 66⅔% Survivor Pension, a Joint and 75% Survivor Pension or a Joint and 100% Survivor Pension, which shall further provide that if the Participant's spouse predeceases the Pensioner, the Pensioner's monthly pension benefit shall be increased effective as of the first month following the death of the spouse to the monthly pension amount that the Pensioner would have received on his retirement effective date had the Participant elected the Normal Form of Pension. No reversionary benefit is payable in the event a Participant selects and receives a Joint and Survivor Social Security Adjustment Pension.

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.

5.5

  1. Notwithstanding any inconsistent provision of the Plan, all distributions under the Plan shall be made in accordance with Code section 401(a)(9), including the incidental death benefit requirement of Code section 401(a)(9)(G), and Treasury Regulations sections 1.401(a)(9)-1 through 1.401(a)(9)-9. Specifically, distribution of the Participant's interest shall:
    1. be completed no later than the Required Beginning Date; or
    2. commence not later than the Required Beginning Date with distribution to the Participant made over the life of the Participant or joint lives of the Participant and a designated beneficiary or a period not longer than the life expectancy of the Participant or the joint life expectancies of the Participant and a designated beneficiary.
    For purposes of this Section 5.5, Required Beginning Date shall mean April 1 of the calendar year following the later of the calendar year in which the Participant attains age 70½ or the calendar year in which the Participant retires; provided, however, if the Participant is a five-percent owner (as defined in Code section 416), the Required Beginning Date shall be April 1 of the calendar year following the calendar year in which the Participant attains age 70½, regardless of the date that the five-percent owner retires.

    In the case of a Participant who retires in a calendar year after the calendar year in which he attains age 70½ and who has not commenced payments as of the first day of such later calendar year, the Plan benefit accrued by the Participant shall be actuarially increased, to the extent required by regulations, to take into account the period (commencing on the April 1 of the calendar year following the calendar year in which the Participant attains age 70½ and ending on the date payment commences) during which the Participant did not receive benefit payments from the Plan; provided, however, in the event that the benefits accrued during the period of such actuarial increase results in a benefit greater than the actuarially increased benefit, the benefit based on the continued accruals shall be paid.

    Effective January 1, 1997, at the option of the Participant, distribution of benefits will commence upon the later of April 1 of the calendar year following actual retirement or attainment of age 70½, if the Participant is not a 5% owner of an Employer. If the Participant opts to defer commencement of benefits under this Section until after actual retirement, the Participant shall file an election form with the Administrative Office of the Trust Fund and the Participant will be entitled to an actuarial adjustment in his benefits resulting from the delay in the commencement of benefits. However, in the event the Participant fails to file an election form with the Administrative Office of the Trust Fund and if the Participant is still employed in Covered Employment and is not a five-percent owner, the failure to file such an election form shall be deemed to be an election to defer benefits until April 1 of the calendar year following the Participant's actual retirement.

  2. In the event that a Participant dies prior to the date that distribution commences:
    1. any portion of the Participant's interest that is not payable to a designated beneficiary shall be distributed not later than the end of the calendar year which includes the fifth anniversary of the date of the Participant's death; and
    2. any portion of the Participant's interest that is payable to a designated beneficiary shall be distributed in accordance with subsection (i) above or over the life of the designated beneficiary (or over a period not extending beyond the life expectancy of the beneficiary), commencing not later than the end of the calendar year following the calendar year of the Participant's death or, if the beneficiary is the Participant's surviving spouse, commencing not later than the last day of the later of the calendar year in which the Participant would have attained age 70½ or the calendar year following the calendar year which includes the date of the Participant's death.

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:

  1. For a Participant who is not retiring on a Disability or Partial Disability Pension, the pension amount shall be 93% if the Participant and Contingent Annuitant are the same age. The factor is increased by .3 percentage points for each year the Contingent Annuitant is older than the Participant, subject to the maximum factor of 99%; or decreased by .3 percentage points per each year that the Contingent Annuitant is younger than the participant.

  2. For a Participant who elects a Disability Pension or Partial Disability Pension the pension amount shall be adjusted by 81% if the Participant and Contingent Annuitant are same age. The factor is increased by .4 percentage points for each year the Contingent Annuitant is older than the Participant, subject to a maximum factor of 99%; or decreased by .4 percentage points for each year the Contingent Annuitant is younger than the Participant.

    If a Participant is under age 55 on the Annuity Starting Date, the factor determined in accordance with the above paragraph shall be modified as follows:
    1. The factor shall be increased by .25 percentage points for each year the Participant's age on the Annuity Starting Date is younger than age 55 but not younger than age 45; plus
    2. The factor shall be increased by .75 percentage points for each year the Participant's age on the Annuity Starting Date is younger than age 45.

      Such increase when added to the adjustment factor in the first paragraph of this Subsection (b) shall not exceed 99%.

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.