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Summary Plan Description
TYPES OF PENSIONS
Five types of pensions are provided under the Plan. They are:
The type of pension determines the manner in which your pension is calculated, which benefit payment options are available to you and which eligibility rules apply.
Several payment options offered by the Plan govern the distribution of pension benefits. These are discussed in the section beginning on page ___.
In general, your monthly pension benefit will be based on the benefit rates in effect when you last separated from Covered Employment. However, if a Break in Continuity occurs, more than one rate may be used to calculate your benefit.
In addition, if you stop working in Covered Employment and decide to retire at a later date, you will not be entitled to any increase in the benefit rates which occurs after you stop working, unless you return to Covered Employment and repair your Break-in-Continuity.
Eligibility - You are eligible to retire on a Regular Pension if you are age 61 or older and have at least 15 Pension Credits, five of which are Future Service Credits. (Section 3.01)
Amount - The rates in the following table are used to calculate the amount of a Regular Pension. As you can see, the number of your Pension Credits and the last year you worked under Covered Employment determine the amount of your benefit. (Section 3.02)
BENEFIT RATE PER PENSION CREDIT FOR:
Here are some examples of Regular Pension benefit calculations:
John is age 61 and retires in December, 2006, with 36 Pension Credits--4 Pension Credits were earned from 1971 through 1974 and 32 Pension Credits were earned from 1975 through 2006. Because he didn't have a Break in Service or a Break in Continuity, John's monthly Regular Pension is calculated as follows:
Fred is age 61 and retired during 1993 with 34 Pension Credits - 2 Past Service Credits (earned prior to 1958) and 32 Future Service Credits. 15 Pension Credits were earned from 1975 through 1992. Assume, too, that he didn't work at all in 1987 and did not earn at least two-tenths of a Pension Credit during 1988, causing a Break in Continuity. All credit earned prior to the Break in Continuity will be multiplied by the rates in effect before the break. All credit earned after the break will be multiplied by the rates in effect when he retires from Covered Employment. Fred's monthly Regular Pension is calculated as follows:
For Service Before the Break in Continuity (1986 Rates)
For Service After the Break in Continuity (1993 Rates)
Total Monthly Regular Pension Benefit
Example # 3:
If Fred (in Example # 2 above) retires in January 1994 after earning one additional Future Service Credit in 1993, he will be able to repair his Break in Continuity because he returned to Covered Employment and earned 5 years of Vesting Service before he retired (assuming he meets the other requirements as described on page ___ ).
Fred's benefit would then be calculated as follows:
Example # 4:
Sam is age 61 and last worked under the Plan in 1990. He wants to retire in 1992 with 35 Pension Credits - two Past Service Credits (earned prior to 1958), 33 Future Service Credits. 17 Pension Credits were earned from 1958 through 1974 and 16 Pension Credits were earned from 1975 through 1990. His monthly Regular Pension is calculated as follows:
Even though he retires in 1992, Sam's benefit calculation is based on the benefit rates for 1990, since he didn't earn at least .2 of a Pension Credit during the calendar years 1991 and 1992, thereby incurring a Break in Continuity.
EARLY RETIREMENT PENSION
Eligibility - You are entitled to retire on a Early Retirement Pension if you are age 55 or older and have at least 15 Pension Credits, five of which are Future Service Credits. (Section 3.03)
Amount - The monthly amount of the Early Retirement Pension is calculated in the same way as the
Regular Pension, but it is reduced to take into account the longer period of time over which benefits will
be paid. The monthly reduction is 1/12 of 1% for each month that you are younger than 61. (Section 3.04)
Assume that the Regular Pension to which Fred would otherwise be entitled is $1,420 per month (see Example # 2 above), but he retires at exactly 58 years of age instead of at 61. The Regular Pension amount adjustment is as follows:
Eligibility - You are eligible for a Vested Pension if you: (1) cease to be employed in a job covered by the Plan; (2) completed more than one Hour of Service on or after January 1, 1996, and (3) have at least five years of Vesting Service, all five of which have been earned after contributions to the Plan began on your behalf. Pension payments will generally begin at age 65. However, if you have earned enough pension credits to be eligible for a Regular or an Early Retirement Pension, you can start receiving your pension as early as age 55. (Section 3.05)
Amount The Vesting Pension is calculated the same way as the Regular Pension (unless you are entitled to an Early Retirement Pension, in which case your benefit will be reduced the same as the Early Retirement Pension). As stated before, the amount of your pension is based on the benefit rates in effect at the time you last earned Pension Credit under the Plan. (Section 3.06)
Eligibility- You may retire on a Disability Pension if before reaching age 61, you become permanently and totally disabled, and qualify for and receive a Social Security Disability Award; and you satisfy one of the following: (Section 3.07)
The date your disability began is the Date of Entitlement stated on your Social Security Disability Award. The effective date of your Disability Pension is the first day of the month following the receipt of a pension application by the Fund Office. In order to avoid any delays, you should apply for a Disability Pension as soon as possible after the date you receive your Social Security Award.
If your request for Social Security benefit is denied, you can continue to work under the Plan while you contest the denial. If you are successful in receiving Social Security benefits, you will receive credit for all work after the Date of Entitlement to Social Security benefits.
You are not entitled to receive a Disability Pension payment for any month in which you receive weekly disability benefits from the National Automatic Sprinkler Industry Welfare Fund. The Disability Pension will continue for life, provided you remain totally and permanently disabled. You may not work at all while receiving a Disability Pension unless you are performing work that the Trustees have previously determined to be for purposes of rehabilitation. In addition, you may arrange to temporarily terminate your Disability Pension for up to three months to return to any type of employment on a trial basis.
After you are age 65, you are subject to the same suspension of benefits rules for certain employment that apply to any other type of pensioner under the Plan (see page ___).
If your Social Security Entitlement Date is before January 1, 1984, special rules may apply. Please contact the Fund Office for more information.
Amount- The monthly amount of the Disability Pension is determined in the same manner as the Regular Pension, and is based on the number of Pension Credits earned to the date of disability. However, if the monthly Regular Pension benefit that would otherwise be payable to you, but for your disability, is less than $1,620, your monthly Disability benefit, before adjustment for the Husband-and-Wife Pension, will be $1,620. This minimum amount is for pensions effective on or after January 1, 1999.
Because the Social Security Entitlement Date is generally before the date you receive your first Social Security payment (and thus the effective date of your Disability Pension payment from this Plan is delayed), your first monthly benefit payment from this Plan will be equal to your monthly benefit amount plus an additional lump sum. Where the effective date of the Disability Pension is on or after January 1, 1980, the lump sum amount in your first monthly benefit payment will be equal to the monthly benefit times number of months between your Social Security Entitlement Date and the effective date of your pension under this plan. Where the effective date of the Disability Pension is on or after January 1, 1975 but before January 1, 1980, the lump sum amount in your first monthly benefit payment will be equal to the monthly benefit amount times the number of months between the effective date of your pension and January 1, 1996. (Section 3.09 (b) and (c)).
CONTINGENT DISABILITY BENEFIT
If you have applied for a Disability Pension and are waiting to hear from Social Security, you can apply for an Early Retirement Pension from the Fund (if you are eligible) and start receiving benefits. If you then receive your Social Security Award within two years of the date your Early Retirement Pension started and you forward your award to the Fund Office within 90 days after you receive it, you will be entitled to a payment equal to the difference between the amount of the Disability Pension payable from this Fund and the benefits you have received since the later of: (a) the Date of Entitlement on your Social Security Award, or (b) the date you applied for a Disability Pension from the Fund. (Section 3.08)
RECOVERY FROM DISABILITY (SECTION 3.10)
If you recover from your disability or lose your entitlement to Social Security Disability Benefits while receiving a Disability Pension, your must notify the Trustees of your recovery in writing within thirty (30) days. Upon such notification, your pension will be stopped and you may choose one of the following:
If you attempt to return to work under the Plan but return to disability status within three months, you will not be required to resubmit a pension application to obtain approval for further benefits. A return to disability status, of course, still requires eligibility for Social Security Disability benefits.
If the actuarial present value of your Disability Pension is $5,000 or less, the Trustees will pay that benefit in a lump sum upon your submission of a properly completed pension application. (Section 7.05 (a))
PRORATA/PARTIAL PENSIONS (SECTION 3.13)
Eligibility- A ProRata/Partial Pension is a type of Vested Pension and is payable once you reach age 65. Partial pension benefits are provided under this Plan to certain Participants who would otherwise not have enough vesting service to be eligible for pension benefits because their years of employment have been divided between pension plans. If another pension plan has been recognized by the Trustees of this Plan as a Related Plan, you can receive a Pro Rata/Partial Pension under this Plan if you do not otherwise qualify for a pension from the NASI Pension Plan and if you worked enough hours under the Related Plan so that when those hours are added to your hours in this Plan, you would have been vested under this Plan's rules had those hours been in work covered by this Plan.
Hours you work under the Related Plan will not count toward Pension Credits and will not affect the amount of your pension benefit under this Plan. Neither will hours you work under a Related Plan help you avoid the effect of a Break in Continuity which affects the value of your pension credits under this Plan. Such Hours will be counted as Covered Employment for avoiding the provisions of this Plan with regard to the effect of a Break in Service.
You will be eligible for a Pro Rata/Partial Pension under this Plan if you satisfy all of the following requirements:
Amount- The amount of your Pro Rata/Partial Pension is based solely on your Pension Credit under this Plan. Hours worked under a Related Plan have no effect on the amount of your pension benefit under this Plan. Past Service Credit under this Plan will not add to your pension benefit under a ProRata/Partial Pension. Payment of a Pro Rata/Partial Pension will be subject to all conditions applicable to other types of pensions under this Plan.
PARTIAL PENSION WITH NAS METAL TRADES PENSION PLAN
Eligibility- A Partial Pension is a type of Vested Pension and is payable once you reach at age 65. If you have at least two (2) Pension Credits in this Plan and you are vested in the NAS Metal Trades Pension Plan, you will qualify for a partial pension as long as the work covered by the NAS Metal Trades Pension Plan would have prevented a Permanent Break in Service if that work had been covered by this Plan. (Section 3.11)
Amount - The amount of your Partial Pension is based solely on your Pension Credit under this Plan. The Partial Pension benefit amount is determined by multiplying the Pension Credits under this Plan by the rate in effect when you last earned Pension Credits under this Plan. In the event of more than one period of service, the monthly pension benefit will be determined by (1) multiplying the credited service for each period by the appropriate rate for that period and (2) adding together each of these amounts. (Section 3.12).