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Summary Plan Document
Payment Of Benefits
Payment of benefits under this Plan is not automatic. You must apply for your benefits on the application form provided by the Trustees. See page 24 about how to apply for your benefits.
How Benefits Are Paid
If your Individual Account is less than $5000, your Benefit will be paid as a single lump sum. If your Individual Account is $5000 or more, the Plan must pay your benefit in the automatic form that applies to you based on your marital status, unless you and your spouse, if applicable, elect otherwise.
Automatic Form of Payment if You Are Married: 50% Husband and Wife Pension
If you are married and your Individual Account is at least $5000, the law requires that your Benefit will be paid automatically as a 50% Husband and Wife Pension unless you waive this method of payment and choose another method of payment with your spouse's consent. Your spouse's consent must be notarized. The 50% Husband and Wife Pension provides a monthly lifetime payment to you, and if you die before your spouse, 50% of your monthly payment will continue to your spouse for his or her lifetime.
Automatic Form of Payment if You Are Not Married: Single Life Pension
If you are not married and your Individual Account is at least $5000, the law requires that your Benefit will be paid automatically as a Single Life Pension unless you waive this method of payment and choose another method of payment. A Single Life Pension provides a monthly payment to you for your lifetime only.
Information About the 50% Husband and Wife Pension and Single Life Pension
Either a 50% Husband and Wife Pension or a Single Life Pension is purchased by the Fund from an insurance carrier, to provide monthly lifetime payments to you or to you and your spouse.
The amount of your monthly payment (and if applicable, the monthly payment to your spouse), is based on the amount in your Individual Account and your expected lifetime(s).
Fees and costs directly related to the purchase of a lifetime pension (also called an "annuity") will be deducted from your Individual Account, and the balance which remains will determine the monthly payments you will receive.
Other Options for Benefit Payments
Whether or not you are married at the time your benefit is payable, if you (or you and your spouse, if applicable) waive the automatic benefit payment form (Single Life Pension or 50% Husband and Wife Pension), you have a variety of choices of payment forms in which to receive your Benefit.
You may choose to receive your Individual Account in one of the following ways:
If you choose to receive your Individual Account in Installment Payments you may elect to receive either monthly, quarterly, semiannual or annual installments over a period of time that you choose. However, the period of time may not be less than two years and may not be more than 10 years. Each installment payment will be the amount in your Individual Account at the time the installment is to be paid to you divided by the number of installments remaining.
For example, if you choose annual installments over a five year period the payments will be as follows:
Remember, an "annuity" is a monthly payment which starts on a specified date and continues for as long as you live. In addition to the Single Life Pension and 50% Husband and Wife Pension discussed above, other annuities with different features are available. Either you or any beneficiary who is entitled to a benefit payment from the Plan may elect to purchase an annuity from an insurance company.
If you elect an annuity, the Plan uses your Individual Account to purchase the annuity from an insurance carrier that guarantees monthly checks for the life or lives covered. The Plan maintains a group annuity contract with a major insurance carrier for this purpose. No commissions are involved and the annuity purchase rates are very competitive in the market place. Of course, you may purchase an annuity form of benefit from an insurance company of your own choosing. The Plan does not require or suggest that the Plan's group annuity contract be utilized.
The amount of the monthly benefit payment is based on the amount of your Individual Account used to purchase the annuity, the expected lifetime of the person(s) covered by the annuity and the choices made for payments to continue after that persons death.
Other options may also exist. The Fund Office can arrange for a life insurance company to provide estimates based on any options that are of interest to you. Of course, monthly benefit amounts change depending on the options chosen.
Remember, the IRS generally allows only those annuity options that provide for the distribution of your Individual Account during the projected lifetimes of you and your spouse or beneficiary.
Choosing Your Benefit Payment Option
If you apply for a Benefit and your Individual Account is at least $5000 you will be provided with the estimated monthly benefit amount of a Single Life Pension, or 50% Husband and Wife Pension. The law requires that this information must be provided no more than 90 days before your benefit is paid. You have up to 30 days after receiving this information to waive the Single Life Pension or, if you are married, the 50% Husband and Wife Pension. This is your election period. You, and your spouse, if applicable, may revoke a previous waiver or file a new waiver at any time after the receipt of the information just described and before the end of your election period.
If you wish to waive the Single Life Pension or if you and your spouse wish to waive the 50% Husband and Wife Pension in order to receive your benefits in another method of payment provided by the Plan, you must pay careful attention to the instructions for completing the application and the instructions for waiving the automatic pension benefits. You must also pay careful attention to the dates by which your application and/or supporting documents or waiver forms must be submitted. If you have any questions, you should contact the Fund Office. Finally, you should carefully review the comparative value information about the other payment options available before you make your decision.
For the purpose of computing the 50% Husband and Wife Pension, your spouse is the person to whom you are married on the Effective Date of your benefit. The person to whom you are married on the Effective Date is the person who must consent to a waiver of the 50% Husband and Wife Pension.
Once a 50% Husband and Wife Pension is purchased from an insurance company and becomes payable, it generally cannot be revoked. If your spouse dies after the Pension becomes payable, your monthly payment generally will not be increased and no one can be substituted as your beneficiary for your spouse. If you and your spouse are divorced after the 50% Husband and Wife Pension becomes payable, your former spouse will be entitled to receive the survivor benefit if you predecease your former spouse unless the terms of a Qualified Domestic Relations Order provide otherwise. You should review the conditions of the insurance company contract for specific information.