The purpose of the Pension Plan is to arrange for the continuation of a portion of your wages after your working career is completed. Normally, this is at age 65 if you have satisfied the service requirement.
27. What is Normal Retirement Age?
Once you are at least age 65 and withdraw from work at the trade in the Plan area, you may apply for a Normal Pension benefit if you have satisfied the service requirement for a Normal Pension.
28. How do I satisfy the service requirement for a Normal Pension?
You must reach Normal Retirement Age and also qualify in any one of the following ways:
- You have attained the 5th anniversary of your continuous participation in the Plan; or
- You have at least five (5) years of Credited Service that were not forfeited because of a Break in Service and at least one Hour of Service earned after December 31, 1998.
29. How much is the Normal Pension?
For Plan Years prior to 2008, the monthly accrual rate toward your Normal Pension is equal to $51.00 multiplied by your Credited Service. For example, if you earn .9 years of Credited Service in 2007, you will accrue a monthly benefit of $45.90 ($51.00 x .9).
For Plan Years after December 31, 2007 the accrual rate is based on the contributions required to be contributed by Employers on your behalf for the Plan Year. The monthly accrual rate is equal to 1% of the contributions. As with the prior formula you must work at least 100 hours to receive any benefit accrual for the year. For example, if $6,000 is required to be contributed into the Pension Plan for hours you worked in 2008, you will accrue a monthly benefit of $60.00 (one percent of $6,000) for that year.
There is a 35 year maximum on the number of Plan Years for which you can receive Credited Service.
Upon retirement, if you have 35 or more Plan Years of Credited Service, your benefit will be computed using the 35 years in which you earned the highest accruals. If you are on Deferred Pension Status you will not be permitted to change the accrual rate of any service earned before you incurred a Break in Service.