Retirement Options

I. OPTIONS AVAILABLE UNDER PART A AND PART B

A. NORMAL RETIREMENT (AGE 65)

1. LIFE ANNUITY- 36 PAYMENTS GUARANTEED:
Monthly payments will be paid for your lifetime.  However, if you should die prior to receiving 36 monthly payments, payments will be continued to your designated beneficiary until 36 monthly payments have been made.

2. LIFE ANNUITY- 120 PAYMENTS GUARANTEED:
Monthly payments will be paid for your lifetime.  However, if you should die prior to receiving 120 monthly payments, payments will be continued to your designated beneficiary until 120 payments have been made.

3. LIFE ANNUITY- 180 PAYMENTS GUARANTEED:
Monthly payments will be paid for your lifetime.  However, if you should die prior to receiving 180 monthly payments, payments will be continued to your designated beneficiary until 180 payments have been made.

4. LIFE ANNUITY 240 PAYMENTS GUARANTEED:
Monthly payments will be paid for your lifetime.  However, if you should die prior to receiving 240 monthly payments, payments will be continued to your designated beneficiary until 240 payments have been made.

5. 50% JOINT & SURVIVOR ANNUITY:
Monthly payments will be made to you during your lifetime, and, upon your death 50% of your monthly benefit will be continued to your spouse for his/her lifetime.

PLEASE NOTE: If married for at least twelve (12) months prior to retirement, this would be the normal form of benefit unless you and your spouse elect, in writing and witnessed, to waive this benefit in favor of another.

6. 75% JOINT & SURVIVOR ANNUITY:
Monthly payments will be made to you during your lifetime, and, upon your death 75% of your monthly benefit will be continued to your spouse for his/her lifetime.

7. 100% JOINT AND SURVIVOR OPTION:
Monthly payments will be made to you during your lifetime, and upon your death, the same monthly benefit will be continued to your spouse during his/her lifetime.

B. EARLY RETIREMENT (AGE 55)

The above benefits are available for anyone who retires at age 55 or later and who is vested.  However, the total monthly benefit will be reduced as shown on the attached Benefit Examples.

C. 22 YEAR EARLY RETIREMENT FROM THE TRADE

  1. If you have at least 22 years of vesting credit and retire from the trade as defined below, you shall be eligible for the 22 year Early Retirement From The Trade.

For all benefits earned, the reduction shall be one quarter of one percent for each month the early retirement date precedes age 58 (3 % per year).  Please refer to page 5 of attached Benefit Example.

  1. Retirement from the trade shall require that in the 48 months prior to retirement, you have accrued at least 3,500 hours of vesting credit.  Months that you were receiving State Disability Insurance or Worker’s Compensation benefits shall not be counted as part of the 48 month period.  In addition, up to 12 months that you were on the Out of Work List and actively seeking employment and up to 24 months if you received Social Security Disability benefits shall not be counted as part of the 48-month period.

Please Note:  If you are receiving an Early Retirement benefit and re-enter employment in the Electrical Industry, you will resume the accrual of credited service.  However, Pension payments shall cease and you will not again be eligible to retire on an Early Retirement benefit.

  1. Upon written request, the Plan will furnish you with a written explanation of the terms and conditions of the qualified joint and survivor annuity and the financial effect of making such election in terms of dollars per annuity.  The Plan will respond to your written request within thirty (30) days from the date of your request.  Participants are limited to one request per participant.  Please send all requests to the Administrative Office.

II. OPTIONS AVAILABLE UNDER PART B ONLY:

1. LUMP SUM CASH:
You may elect to receive the value in your Part B Account in the form of a lump sum cash distribution.

2. MONTHLY INSTALLMENT:
You may elect to receive a specific monthly installment until your basic account is exhausted.

Upon written request, the Plan will furnish you with a written explanation of the terms and conditions of the qualified joint and survivor annuity and the financial effect of making such election in terms of a projected annuity.  The Plan will respond to such written request within thirty (30) days from the date of your request.  Participants are limited to one request per participant.  Please send all requests to the Administrative Office.

I.B.E.W. LOCAL 332 PENSION PLAN PART A

BENEFIT EXAMPLES

I. NORMAL RETIREMENT

Assumes Active Participant is age 65, married and his spouse is age 62.  He retired on February 1, 2003, based on ten (10) years of Past Service Credit and thirty-one (31) years of Future Service Credit from 1972 through 2003, and he worked 1,200 hours per year.  His benefits would be calculated as follows:

Past Service Credit 10 x $20.00 = $ 200.00
Future Service 1972-1981
Total Contributions $ 8,770.00 x 3.00% = $ 263.10
Future Service 1982 – 1986
Total Contributions  $13,245.00 x 3.25 % = $ 430.46
Future Service 1987 – 2003 (with exception of 1991)
Total Contributions $46,390.00 x 3.5 % = $1,623.65
Future Service 1991
Total Contributions $ 3,360.00 x 3.5% x 150% = $  176.40
TOTAL MONTHLY BENEFIT $2,693.61

 

II.  EARLY REDUCED RETIREMENT

Assumes Participant is age 55, his date of birth is 1/17/48 and he has earned 23 years of
Future Service Credit from 1980 – 2003 and he worked 1,200 hours per year.  Prior to age 65, his monthly benefit would be reduced as follows:

Benefits Earned prior to 1 / 1/93
(Reduction – 3 % per year) $1,135.20 x 70 % =  $  794.64
Benefits Earned After 1/1/93
(Reduction – 6 % per year) $ 918.90 x 40 % = $  367.56
TOTAL MONTHLY BENEFIT $1,162.20

Example #1 – Member Age 55 With 22 Years of Vesting Credit

Total Accrued Benefit – $2,100.80
(Reduction – 3% Per Year = 36 months (3 years) x 3% = .09 = 91%
$2,100.80 x 91% = $1,911.73
TOTAL MONTHLY BENEFIT (36 Month Guarantee) = $1,912.00

Example #1A 50% Joint & Survivor Annuity, Member Age 55 – Spouse Age 55

Amount to Fund = $1,911.73 x 131.50 (APR) =
$251,392.49 ÷139.34 (APR 50% J & S Factor) =
TOTAL MONTHLY BENEFIT (50% J&S)= $1,804.50

Example #2 – Member Age 57 With 25 Years Vesting Credit

Total Accrued Benefit – $2,700.00
(Reduction – 3% Per Year = 12 Months (1 year) x 3% = .03 = .97%
$2,700.00 x 91% = $2,619.00 (36 Month Guarantee)
Life Annuity With 180 Month Guarantee:
$2,619.00 x 127.50 (APR) = $333,922.50 ÷135.41 (APR 180 Month Guarantee)= $2,466.01
TOTAL MONTHLY BENEFIT (180 Month Guarantee) $2,466.50

Example #2A 100% Joint & Survivor Annuity, Member Age 57 – Spouse Age 55

Amount to Fund = $333,922.50 ÷146.06 (APR 100% J&S) = $2,286.20
TOTAL MONTHLY BENEFIT (100% J&S)= $2,286.20

Example #3 – Member Age 58 With 22 Years Vesting Credit

Total Accrued Benefit = $3,300.00
$3,300.00 = (36 Month Guarantee) Life Annuity
Life Annuity With 240 Month Guarantee
$3,300.00 x 125.40 (APR) = $413,820.00 ÷139.84 (APR 240 Month Guarantee) = $2,959.23
TOTAL MONTHLY BENEFIT (240 Month Guarantee) = $2,959.23

Example 3A 100% Joint & Survivor Annuity, Member Age 58 –Spouse Age 56

Amount to Fund = $413,820.00 ÷144.45 (APR 100% J&S) = $2,864.74
TOTAL MONTHLY BENEFIT (100% J&S)= $2,865.00

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