| Q. |
What is a Defined Benefit
Pension and how is that different from a Defined Contribution Plan or a
401(k) Plan? |
| A. |
A Defined Benefit Plan sets a
specific benefit amount that is funded by primarily by the Employer and
guaranteed to be paid to a retiree until the time of the retiree’s death,
whereas a Defined Contribution plan or a 401(k) plan is funded most often by
the employee and is an accumulation of
funds that makes up a pension and is not guaranteed to last a lifetime. You
are a Participant under a Defined Benefit Plan |
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|
| Q. |
How do I become a Participant in
the Plan? |
| A. |
You will automatically become a
Participant in the Plan if you work for an Employer who remits Contributions
on your behalf to this Pension Plan. |
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|
| Q. |
How do I become Vested? |
| A. |
You will become 100% vested
after being credited with 5 years of vesting service and you have not
incurred a break in service. You may
also become a Vested Participant if you are receiving employer contributions
when you reach Normal Retirement age 62. |
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|
| Q. |
What is a Year of Service and
how do I earn this? |
| A. |
You will earn one year of
service for each Plan Year in which you are credited with 1,000 or more hours
worked and employer contribution earned. You can earn a partial year of
service if you have less than 1,000 hours contributed on your behalf, but no
less than 100 hours contributed. |
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|
| Q. |
What is a Plan Year |
| A. |
The Plan Year is the twelve
month period beginning May 1st and ending April 30th. |
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| Q. |
How are pension contributions
for a Participant accumulated? |
| A. |
Effective May 1, 2022 a
Participant receives $11.54 credit for every hour worked for a Local 7 Zone 3
contributing employer. |
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|
| Q. |
How is an accrued monthly
benefit determined? |
| A. |
The total amount of
contributions received on behalf of a participant is multiplied by 1%. For Benefits accrued prior to May 1, 2009,
the applicable benefit multiplier will be used. |
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|
|
The following example
illustrates how the multiplier works: |
|
If you work 1,000
hours in a year x $11.54 per hour equals $11,540. Using the 1% multiplier $11,540 x 1% =
$115.40 toward your monthly pension benefit. |
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| ELIGIBILITY FOR PENSION |
| Eligibility
for a pension generally depends on your age and number of Years of Service
you have earned. The amount of your
Pension benefit depends on the amount of your Accrued Benefit. |
|
|
| Q. |
At what age could an unreduced
monthly benefit begin? |
| A. |
Normal retirement is at age 62
(must be active or vested). Unreduced
Early retirement begins either at age 55 with with 10 years of service or at
age 58 with 30 years of service |
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|
| Q. |
How do I qualify for a Normal
Retirement Benefit? |
| A. |
Normal Retirement begins the
first day of the month following the month you turn age 62. You qualify for Normal Retirement if you
have attained age 62, you are Vested and have terminated employment. |
|
|
| Q. |
How do I qualify for an Early
Retirement Benefit? |
| A. |
Early Retirement requires that
you are at least age 55, you have 10 or more years of service and you have
terminated employment. You may
qualify for an Unreduced Early Retirement benefit or a Reduced Early Retirement
benefit. |
|
|
| Q. |
What is an Unreduced Early
Retirement Benefit? |
| A. |
If you meet either of the age
and service combinations; 500 or more Hours of Service in the 3-year period
immediately preceding your Early Retirement date, and you have less than 30
years of service, but not less than 10 years of service, and you retire after
your 60th birthdate. Or, you have
500 or more Hours of Service in the 3-year period immediately preceding your
Early Retirement date, you have 30 or more years of service and retire on or
after your 58th birthdate. |
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|
| Q. |
What are the requirements for a
Reduced Early Retirement |
| A. |
If you are eligible for Early
Retirement, but you do not meet the age and service requirements for an
unreduced benefit, your benefit will be reduced based upon your age and
service at the time of your retirement. |
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|
| Q. |
How do I qualify for a
Disability Pension Benefit? |
| A. |
To qualify for a Disability
Pension benefit, you must be an Active Participant, you have NOT attained age
62, you do have 10 or more years of service, you have terminated employment
and you have suffered a Permanent and Total Disability. |
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|
|
Note: A Permanent and Total Disability means a
disability as determined by the Board of Trustees in accordance with specific
standards as outlined in the Summary Plan Description booklet. Contact the Benefits office for more
information on what is required. |
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| APPLYING
FOR BENEFITS |
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|
| Q. |
How can I obtain an estimate of
my Pension benefit? |
| A. |
Please contact the Pension Fund
office at (248) 641-4973 and request an estimate. We will need your name and
date of birth and if married your spouse’s date of birth. We will need the
future month and year you wish to retire.
We will need to confirm your address and phone number. Also if you
were previously married and divorced, we will need the date(s) of divorce. |
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|
|
|
| Q. |
How do I apply for my Pension
benefit |
| A. |
Please contact the Pension Fund
office at (248) 641-4973 to request an estimate and an application. |
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|
| Q. |
How far in advance should I
request an application for retirement? |
| A. |
We recommend contacting the
Benefits office at least 2-3 months prior to your expected retirement date. |
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| Q. |
Does the Pension Plan affect
Social Security benefits in any way? |
| A. |
It could. Please contact the
Social Security Administration at (800) 772-1213 to confirm this. |
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|
| Q. |
In addition to the application
for retirement, what other documents do I have to submit to the Fund office? |
| A. |
You will need to provide a copy
of your Birth Certificate and Photo ID (Driver’s License) and if you are
currently married, your Spouse’s Birth Certificate, Photo ID (Driver’s
License) and your Marriage Certificate. If you were previously married and
divorced (or your previous Spouse passed away), you will need to provide the
Divorce Decree in full or the Death Certificate. If your previous Spouse is
awarded any part of your Pension Benefit, you will need to provide the
Qualified Domestic Relations Order document. |
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|
| Q. |
I am currently receiving a
monthly pension benefit from the Plan and would like to change the tax
withholding. What needs to be done? |
| A. |
Please contact the Pension Fund
office at (248) 641-4973 and request a Federal W-4P tax withholding form. For
Michigan State tax, request a MI W-4P tax withholding form. The form will be
sent to you to complete and return to the Pension Fund office. (this can be printed from the Participant
website) |
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|
| Q. |
I am currently receiving a
monthly pension benefit from the Plan and would like to change the bank
account information. How do I change this information? |
| A. |
Please contact the Pensin Fund
office at (248) 641-4973 and request a Direct Deposit Agreement form. This
form will be sent to you to complete and return to the Pension Fund office.
(this can be printed from the Participant website) |
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|
| Q. |
I am currently receiving a
monthly pension benefit from the Plan, what happens if I do not receive my
check? |
| A. |
Please contact the Pension Fund
office at (248) 641-4973 to let us know you have not received your check. We
will place a stop payment on the original check and replace it once the stop
payment is completed. We cannot place a stop payment on your check until the
10th-12th of the month to give
the Postal Service (USPS) time to deliver your check. You may want to
consider having your monthly benefit direct deposited into your bank account.
If you do not receive your directly deposited monthly benefit by the 1st of the month, please
call the Pension Fund office and we will investigate why you did not receive
it. We can only replace your direct deposit monthly benefit with a check for
that month. |
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|
| Q. |
I recently moved, how do I
change my address? |
| A. |
Please contact the Pension Fund
office at (248) 641-4973 with your new address and we will update it in your
file. If you have a summer address and winter address, please let us know and
what months you plan to be at each address throughout the year. |
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|
|
|
| Q. |
Who should I contact if I'm
getting a divorce and what documents do I need to submit? |
| A. |
Please contact the Pension Fund
office at (248) 641-4973 with your date of divorce or expected date of
divorce. You will need to send in your full Divorce Decree once it has been
filed in court. If any Ex-Spouse is awarded a portion of your benefit, you will
need to provide the Qualified Domestic Relations Order (QDRO) document. It is
best to send in the draft copy of your QDRO first to have the Fund's Legal
Councel review and determine the document as qualified. |