Plan Information - Benefits

An Early Retirement Pension

You are eligible to receive an early retirement pension when:

• You are at least 55 but have not reached age 60;
• You have at least 10 years of credited service, without a permanent break in service (exclusive of any credit for non-covered employment); and
• You have worked at least 1,400 hours in covered employment after your contribution date.

Payment of your early retirement pension can begin any time after attaining age 55 and file an application.

Unless you retire under an Alternative or Default Schedule, as described below, the amount of your early retirement pension is reduced from the amount of the regular pension you would have received at age 60 to reflect the longer period of time that you will be collecting payments.  This reduction is ½ of 1% for each month you are younger than age 60.  This is a subsidized early retirement pension.

For Example:  Assume you decide to retire at age 58.  Further assume that if you were age 60, your regular pension would be $2,842.02.  Since you are 24 months younger than age 60, the reduction is 1/2 of 1% for each of the 24 months, which equals 12%.  The reduction is, therefore, 12% of $2,842.02, or $341.04.  Subtract $341.04 from $2,842.02 which equals $2,500.98 ($2,501.00 after rounding).

Note: The amount of the monthly early retirement pension will not be less than the minimum monthly benefit.

Rehabilitation Plan Provisions:   If you retire under an Alternative Schedule, your early retirement pension will be equal to your age-65 benefit actuarially reduced to reflect early commencement.  This benefit will not be subsidized. If you retire under the Default Schedule, you will receive the subsidized early retirement pension described above for the amount of your benefit earned before January 1, 2011.  Your remaining benefit will be equal to your age-65 benefit actuarially reduced to reflect early commencement.  This portion of your benefit will not be subsidized.

A Disability Pension

If you become totally disabled before January 1, 2011 and before age 60, you are eligible for a disability pension if:

• You are totally and permanently disabled, and you have at least 10 years of credited service without a permanent break in service and exclusive of any credit for continuous non-covered employment; and
• You have worked in covered employment and earned at least two quarters of credited service within the -two calendar years before or including the calendar year in which you become totally disabled from working in the Resilient Floor Covering Industry.

You qualify for a disability pension if the Trustees determine on the basis of medical evidence that you are wholly and permanently prevented from engaging in any occupation or employment for wages or profit as a result of bodily injury or disease, either occupational or non-occupational in cause.

The Trustees may require or accept as proof of total and permanent disability a determination by the Social Security Administration that you are entitled to a Social Security disability benefit.  The Trustees may at any time, or from time to time, require evidence of continued entitlement to such Social Security disability benefit.

If there is a difference in the medical evidence submitted through the Social Security Administration and by an individual doctor or doctors, the Fund may select at its own expense a doctor to examine you and submit the report of his/her findings in order to assist the Trustees with a determination as to whether you are totally and permanently disabled under the Plan’s rules.

A Disability Pension will not be payable for a disability

1. Arising from a self-inflicted injury;
2. Arising solely from habitual drunkenness or narcotic addiction;
3. Incurred while engaged in a criminal act.

The amount of a disability pension is equal to 90% of the regular pension for which you would be eligible if you had attained age 60 when you became disabled.  However, the amount of the monthly disability pension will not be less than the minimum monthly benefit.

Payment of your disability pension begins after you have been totally and permanently disabled for five full calendar months.  Your disability pension will continue as long as you remain totally disabled as required by the Plan.  When you reach age 60, your pension will continue regardless of whether you remain totally and permanently disabled.

If you are receiving a Disability Pension and you recover from your disability prior to attaining age 60, you must report this to the Fund Office in writing, within 31 days of your recovery.  Failure to do so will result in a delay in the commencement of pension benefits upon subsequent retirement.  You may then return to covered employment and again accrue credit toward your pension which will be unaffected by your having received a disability pension.  If, after you return to covered employment, you become disabled, you may again be eligible to receive a disability pension, providing you satisfy the requirements for such a pension.

Rehabilitation Plan Provisions:  The Disability Pension is discontinued as of January 1, 2011 and will not be available to any Participant who becomes totally and permanently disabled on or after that date.  If as of January 1, 2011 you were either receiving a Disability Pension or you had applied for and are entitled to a Disability Pension, your Disability Pension will not be discontinued.

A Service Pension

Pre-Rehabilitation Plan Provisions: You are eligible to receive a service pension for benefits earned before September 1, 2005 if:

• You have not attained age 60.
• You have at least 25 years of credited service in this Plan without a permanent break in service (credited service earned in continuous non-covered employment and credited service earned under a related plan cannot be used to meet this requirement).
• You have not previously received an early retirement pension.
• Contribution of $0.50 per hour or more have been made for at least six months for your bargaining unit.

You are eligible to receive a service pension for benefits earned on or after September 1, 2005 if:

• You are at least age 50 but not yet 60.
• You have at least 25 years of credited service in this Plan without a permanent break in service (credited service earned in continuous non-covered employment and credited service earned under a related plan cannot be used to meet this requirement).
• You have not previously received an early retirement pension.
• Contributions of $2.50 per hour or more have been made for at least 6 months for your bargaining unit.

If you retire and receive a Service Pension for benefits you earned before September 1, 2005 you must also concurrently receive any benefits earned after that date.

Example:  In this example, Matt retires on September 1, 2010, his 45^th birthday, with 25 years of service under the Plan.  Matt otherwise meets the eligibility requirements for a Service Pension (but not a Special Service Pension, which requires 30 years of service) on amounts earned under the Plan as of August 31, 2005 only.  His monthly Regular Pension as of August 31, 2005 is $750 and his monthly Regular Pension for amounts earned during his last five years of service is $250.  Matt will receive an unreduced Regular Pension benefit for his August 31, 2005 accrued benefit and a reduced benefit for his last five years of benefit accruals, according to his age.  The early retirement rules under the Plan require a ½% benefit reduction for each month that the participant retires before reaching age 60.  Because Matt is retiring 180 months (15 years) before reaching age 60, his last five years of benefit accruals will be reduced by 90% (0.5% x 180 months) for a monthly benefit amount equal to $25.  His total monthly benefit payable on September 1, 2010 is $775.  If Matt had waited to retire until reaching age 50, his entire benefit would be unreduced.

The amount of your service pension is determined in the same way as the regular pension and will not be less than the minimum monthly benefit.

Rehabilitation Plan Provisions:  If you retire under an Alternative Schedule, you are entitled to receive a Service Pension if:

• You have at least 60,000 hours of service that constitute credited service;
• You are at least age 55 but not yet age 62 and have at least 54,000 hours of service that constitute credited service; or
• You are at least age 62 but not yet age 65 and have at least 45,000 hours of service that constitute credited service; and
• You have not previously been in receipt of an early retirement pension:

The service requirements above may not include credited service or hours of service earned prior to a permanent break in service.

If you retire under the Default Schedule, you are entitled to receive a Service Pension provided under the Pre-Rehabilitation Plan Provisions but only for amounts earned before January 1, 2011.  You may continue to accrue years of credited service on and after January 1, 2011.

In addition, if you:  (i) stop working in the Resilient Floor Covering Industry prior to December 1, 2010, (ii) are within 1 year of earnings 25 years of credited service and (iii) otherwise meet the requirements for the Pre-Rehabilitation Plan Provisions above, you are entitled to a service pension determined under the Pre-Rehabilitation Plan rules, provided you apply for your service pension on or after April 1, 2010 and before December 1, 2010.

A Special Service Pension

Subject to the Rehabilitation Plan Provisions, below, if you retired on or after January 1, 1997, you are eligible to receive a special service pension for benefits earned prior to September 1, 2005:

• If you have at least 30 years of credited service in this Plan without a permanent break in service, (credited service earned in continuous non-covered employment and credited service earned under a related plan cannot be used to meet this requirement); and
• You have not previously received any type of pension under this Plan.  (This requirement does not apply to disability pensioners who recover and return to covered employment before age 55.)

If you retire and receive a special service pension for benefits you earned before September 1, 2005, you must also concurrently receive any benefits earned after that date, which will be subject to reduction for early retirement for ages below 60.

The amount of your special service pension is:

• 110% of your regular pension amount; or
• 125% of your regular pension amount if you are at least age 60 or at any age if you have at least 35 years of credited service in this Plan without a permanent break in service (credited service earned in continuous non-covered employment and credited service earned under a related plan cannot be used to meet this requirement).

The amount of your special service pension will not be less than the minimum monthly benefit subject to Section 3.16 of the Plan document.

Rehabilitation Plan Provisions

If you retire under an Alternative Schedule, you are not eligible for a special service pension. If you retire on or after January 1, 2011 subject to a Default Schedule, the special service pension is available under the terms of Section 3.14 of the Plan notwithstanding the Rehabilitation Plan and you may continue to accrue years of credited service on or after January 1, 2011 for purposes of earning a special service pension.   

The Minimum Monthly Benefit

Subject to the Rehabilitation Plan Provisions, below, your monthly pension payable as a regular, early retirement, disability, service or special service pension will not be less than the minimum monthly benefit payable by the Plan.  The minimum monthly benefit is determined as follows:

Rehabilitation Plan Provisions

If you retire under an Alternative Schedule, you are not entitled to the minimum monthly benefit and the amount of your early retirement pension will be determined under the early retirement provisions, described in that section.  If you retire under the Default Schedule, the minimum monthly benefit will apply only as to amounts you earned before January 1, 2011.  For amounts you earned on or after January 1, 2011, the amount of your early retirement pension will be determined under the early retirement provisions, described in that section.

A Partial Pension If you have worked under this Plan and other pension plans related to it through the National Reciprocity Agreement for Joint Industry Pension Funds of all District Councils and Local Unions Affiliated with the International Union of Painters and Allied Trades you may be entitled to a partial pension.  A partial pension provides for those who may not be eligible for benefits under any one pension plan because their working time was divided between two or more plans. You are eligible for a partial pension if:

1. You would be eligible for a pension if your combined credited service (the credited service earned under this Plan added to the service credits earned under a related plan) fulfilled the requirements for eligibility under this Plan; and
2. You have earned under this Plan and each of the related plans in which you have credited service, at least one year of future service credit (prior to June 30, 1982, two years of future service credit); and
3. You are eligible for a partial pension from each related plan.

A partial pension is determined in the same way as the regular, early retirement, or disability pension — depending on which type of partial pension you are eligible for.  Only benefit units and contributions made to this Plan are used to determine a partial pension benefit payable from this Plan. The other related plans will also pay partial pensions based on your service with each plan and the level of benefits available under those plans.  Your total pension is the sum of all the partial pensions.

Death Before Retirement

Surviving Spouse Pension

If you are vested, married and die prior to retirement, your surviving spouse will receive 50% of your regular, early retirement, service or special service pension benefit, as the case may be, adjusted as though you had retired on the day before your death and had elected the 50% spousal pension.  If you have not attained age 55 and are not eligible for a service or special service pension at the time of your death, the amount payable to your surviving spouse will be determined as if you were age 55 when you died.  In this case, payments to your spouse would be deferred until the date you would have attained age 55.  Your surviving spouse may, however, elect to receive payments immediately (not deferred to your 55th birthday) in which case the monthly amount would be adjusted to reflect the fact that benefits would be paid over a longer period of time.

If the actuarial present value of the surviving spouse pension is $5,000 or less, payment of the actuarial present value of this benefit will be made to your spouse in a single lump sum in lieu of any other death benefit described in this section.

Your surviving spouse may elect in writing, filed with the Board, to defer commencement of the surviving spouse pension until a specified date that is no later than the first of the month on or immediately following the date you would have attained Normal Retirement Age.  The amount payable at that time shall be determined as described above, except that the benefit shall be paid in accordance with the terms of the Plan in effect when you last worked in covered employment, as if you had retired with a 50% Spousal Pension on the day before your surviving spouse’s payments are scheduled to start, and died the next day.

This benefit is payable for your spouse’s lifetime.

36-Payment Pre-Retirement Death Benefit

As of January 1, 2011, the Pre-Retirement Death Benefit is discontinued in accordance with the Rehabilitation Plan.  Should you die on or after that date, your beneficiary will not be entitled to the Pre-Retirement Death Benefit described in this section.

Pre-Retirement Lump-Sum Death Benefit

As of January 1, 2011, the Pre-Retirement Lump-Sum Death Benefit is discontinued in accordance with the Rehabilitation Plan.  Should you die on or after that date, your beneficiary will not be entitled to a Pre-Retirement Death Benefit.

Prior to January 1, 2011, if you die before your pension effective date, your beneficiary will receive a lump sum payment in an amount equal to the total employer contributions paid on your behalf up to a maximum of $10,000.00, provided you meet the following requirements:

• You have at least two years of credited service without a permanent break in service; and
• You have worked in covered employment and earned at least two quarters of credited future service within the two consecutive calendar years prior to the calendar year in which you die.

If at the time you die, you meet the requirements for this lump sum death benefit and the above 36 payment death benefit, your beneficiary will receive one of these death benefits, not both.  Neither of these benefits are payable if your spouse is eligible for and elects to receive the Survivor Spouse Pension.

Spouse’s Choice of Death Benefits

If, at the time of your death, your surviving spouse is eligible for the 36-payment pre-retirement death benefit and/or the lump-sum pre-retirement death benefit and the surviving spouse pension, your spouse may choose whichever form of benefit he or she prefers.  Please note that these benefits are discontinued in the event of your death on or after January 1, 2011.

Important:

You should be sure that you have a beneficiary designation card on file with the Fund Office and, if so, that it is up to date.  If you are married and designate anyone other than your spouse as your beneficiary, your spouse must consent to such designation in a form and manner prescribed by the Board of Trustees.