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DEATH BENEFITS
PRE-RETIREMENT SURVIVING SPOUSE PENSION (SECTION 5.03)

If you die before you have retired under the Plan but after you are vested, your surviving spouse will be entitled to a Pre-retirement Surviving Spouse Pension (provided you and your spouse have been married for at least one year as of the date of your death.). The amount of the benefit payable to your surviving spouse is based on the monthly benefit you would have been eligible to receive if you had retired at the time of your death. Your surviving spouse will be entitled to the greater of:

  • The value of one hundred of the monthly pension payments you would have been eligible to receive if you had retired at the time of your death, actuarially converted to lifetime benefit that your Surviving Spouse will receive each month for his or her life, or


  • A pension determined as if you had retired the day before your death on a pension payable in the Husband-and-Wife benefit payment form (refer to the section entitled “Husband-and-Wife Benefit Payment Form” on page XX).

Remember, the amount of the Pre-retirement Surviving Spouse Pension is based on the monthly benefit you would be eligible to receive if you had retired at the time of your death. If you die before age 55, your monthly benefit will be calculated as if you had stopped working on the day of your death, lived to and retired at age 55, and died the next day. If you die after age 55, your monthly benefit will be based on your actual age at death.

The Pre-retirement Surviving Spouse Pension is payable to your surviving spouse on the first day of the month following your death. Your spouse can elect in writing to have benefits begin at a future date, but not after the later of the December 31 of the year in which you would have been age 70 ˝ or the December 31 of the calendar year immediately following the calendar year in which you died.

As noted above, for your spouse to be eligible for the Pre-retirement Surviving Spouse Pension, you and your spouse must have been married to each other for at least a one year period ending on your date of death.

LUMP-SUM DEATH BENEFITS
Lump-Sum Death Benefit for Pensioners (Section 3.16)

Effective January 1, 1982, if you die while receiving a pension from the Plan, your designated beneficiary will get a Lump-Sum Death Benefit of $1,000 plus $500 for each Future Service Pension Credit earned after 1974 subject to a maximum of $5,000. For example, if you earn 8 Pension Credits after 1974 until the time of your death, your beneficiary will get $1,000 + ($500 x 8) or $5,000.

This benefit will be paid in addition to any other benefits your surviving spouse or beneficiary may be eligible to receive. However, this benefit will not be payable on the death of a surviving spouse or beneficiary.

Lump-Sum Death Benefit for Active Employees (Section 3.15)

Effective January 1, 1998, if you are vested and die before your pension is effective, a Lump Sum Death Benefit equal to $1000 times the number of Future Service Pension Credits you have earned will be paid to your designated beneficiary. For example, if you have earned 25 Future Service Pension Credits at the time of your death, your beneficiary will receive $25,000 ($1000 x 25).

If you are not vested, and you die before your pension is effective (and on or after January 1, 1988), this Lump Sum Death Benefit will be paid to your designated beneficiary if you have at least five Future Service Pension Credits and you have worked at least 350 hours in Covered Employment during the calendar year of your death or during the immediately preceding calendar year.

However, this Lump Sum Death Benefit will not be payable if the Husband-and-Wife benefit payment for is in effect or if a Pre-retirement Surviving Spouse Pension is payable to your spouse.

EFFECT OF RETURNING TO WORK AFTER RETIREMENT ON LUMP-SUM BENEFIT COVERAGE

If you return to work after you retire, you will continue to qualify for the lump sum death benefit for pensioners until you have worked 350 hours in Covered Employment in a calendar year. After that, you will qualify for the active employee lump sum death benefit ($1,000 per year of Future Service Credit) under its terms and conditions. (See description above.) One of those conditions is that the active employee lump-sum death benefit is not available if you and your spouse elected to have your pension benefit paid in the Husband-and-Wife benefit payment form when you retired. Working retirees who have elected the Husband-and-Wife benefit payment form or one of the Joint Life and Survivorship benefit payment options (see page XX) continue to have protection for their surviving spouses or beneficiaries under the benefit payment form elected even if they return to work after retirement. Therefore, these individuals cannot qualify for lump sum death benefits for active employees.

In addition, the retiree lump-sum death benefit is no longer available when you re-qualify for the higher pre-retirement surviving spouse benefits payable to surviving spouses of active employees. You re-qualify for the pre-retirement surviving spouse benefits on the January 1st after you have worked 950 hours in a calendar year unless you have elected one of the Joint Life and Survivorship options with a beneficiary other than your spouse.

You may want to discuss your situation with the Fund Office concerning options and survivor protection, should you return to work after retirement. Returning to work after retirement may also affect medical coverage under the NASI Welfare Fund for you and your spouse.

BENEFICIARY DESIGNATION (SECTION 3.17)

The lump-sum death benefit payment is paid to the beneficiary you have designated on the form provided by the NASI Pension Fund for that purpose. An unmarried Participant may change this beneficiary at any time without the consent of the beneficiary. A married Participant may change the designated beneficiary only with the consent of their spouse. The Trustees, however, will pay benefits based on the most recent designation which was received by the Fund Office prior to the date benefit payments are to begin. If your designated beneficiary is your spouse and you and your spouse are divorced, this does not invalidate the designation of your former spouse as your beneficiary. You must submit a change of beneficiary designation to remove your former spouse as your beneficiary. If you do not designate a beneficiary, or if your beneficiary dies before you, the benefit will be paid to the first of the individuals in the order listed:

  • Your surviving spouse; then


  • Your surviving children; then


  • Your surviving parents.

If none of these beneficiaries are living, no benefit will be paid.

If the present value of any pension benefit payable under this Plan, including Death Benefits, is $5,000 or less, the Trustees will pay that benefit in a lump sum upon submission of a properly completed application.