Pension - Credit
How Working Time Counts
The amount of time you work in a job covered by a Collective Bargaining Agreement or other participation agreement that requires your Employer to contribute to this Plan (“Covered Employment”) counts towards your pension in two important ways – It determines whether you are eligible for a pension and, if so, the amount of your pension.
The time you work is measured in three ways:
- Number of Years of Credited Service
- Number of Benefit Units
- Amount of Employer Contributions made or required to be made on your behalf.
After you begin working in Covered Employment, you receive both Credited Service and Benefit Units during the time your Employer contributes to the Plan with respect to your work. In addition, the Plan keeps track of the Employer Contributions required to be made on your behalf. This period of time is referred to as “after your Contribution Date.”
You may also receive Credited Service and Benefit Units for certain work before your Contribution Date (see discussion of Credited Past Service).
Credited Service Before Your Contribution Date
Credited Service earned before your Contribution Date is called “Credited Past Service.” Your Contribution Date is January 1, 1960 or such later date as may be fixed by the Board of Trustees for a Bargaining Group in which you were employed when a Contribution was first required to be made on your behalf to the Pension Trust Fund. If your Contribution Date is on or after January 1, 1976, you are only entitled to Credited Past Service if you have at least 500 Contributory Hours in the Calendar Year in which your Contribution Date occurs or in the next Calendar Year.
You receive one year of Credited Past Service for each Calendar Year before your Contribution Date during which you worked at least 1,000 hours in the geographical jurisdiction of a Local Union in employment of the type for which Contributions are made to the Pension Trust Fund. If you worked less than 1,000 hours during a Calendar Year, one quarter of Credited Past Service will be granted for each 250 hours of such work.* In determining the amount of your Credited Past Service, your period of membership in a Local Union which participates in the Plan may be used as evidence of employment. The maximum number of Years of Credited Past Service that can be granted is 23 years.
The Trustees have the right to reduce your Credited Past Service with respect to your periods of employment with a Contributing Employer who later withdraws from the Plan.
* You are also entitled to Credited Past Service for periods of service in the Armed Forces of the United States between January 1, 1940 and your Contribution Date if you were employed as a painter or taper in the jurisdiction of a Local Union immediately prior to entering military service and become re-employed within 90 days after your discharge from active duty (or after any disability which continues after your discharge). Your military service must be during a period of war, national emergency or due to national conscription law. You will receive one Year of Credited Past Service for each full year of military service or ¼ of a Year of Credited Service for each three months of military service.
Credited Service On and After Your Contribution Date
Credited Service earned on and after your Contribution Date is called “Credited Current Service.”
Between Your Contribution Date and January 1, 1976
Before January 1, 1976, the number of Hours of Service needed to earn Credited Current Service in a Calendar Year was based on your age during the year in which the hours are worked, as follows:
| Younger than Age 50 | |
|
Hours of Service in Calendar Year Less than 250 hours |
Credited Current Service None |
| Age 50 through 59 | |
| Hours of Service in Calendar Year
Less than 250 hours |
Credited Current Service None |
| Age 60 or more | |
| Hours of Service in Calendar Year
Less than 200 hours |
Credited Current Service None |
On and After January 1, 1976
Beginning January 1, 1976, Credited Current Service in a Calendar Year is earned according to the following schedule:
|
Hours of Service in Calendar Year Less than 400 hours |
Credited Current Service
None |
After January 1, 1976, you also receive Credited Current Service for work in a job not covered by this Plan if you work for a Contributing Employer and:
- You move directly from a covered job (Covered Employment) with that Employer to a non-covered job (Non-Covered Employment) with the same Employer, or
- You move directly from a non-covered job (Non-Covered Employment) with that Employer to a covered job (Covered Employment) with the same Employer.
This is what is meant by the term “Continuous Non-Covered Employment.” (Refer to Sections 1.12 and 6.03.b. of the Plan Document). If you do not work sufficient Hours of Service in Covered Employment and Continuous Non-Covered Employment for Contributing Employer(s) to earn a full Year of Credited Service in a calendar year, you shall not be entitled to any Credited Service for your Hours of Service in Continuous Non-Covered Employment.
Benefit Units Before Your Contribution Date
If you earned one year of Credited Past Service you also earned one non-contributory Benefit Unit. Partial non-contributory Benefit Units are also given for partial Years of Credited Past Service.
Benefit Units On and After Your Contribution Date and Prior to January 1, 1987
On and after your Contribution Date, you earn Contributory Benefit Units based on the number of Contributory Hours credited in a Calendar Year. Contributory Hours are hours in Covered Employment for which Contributions are required to be made by a Contributing Employer to the Fund or, in certain case, hours credited for absences from Covered Employment.
Between Your Contribution Date and January 1, 1976
Before January 1, 1976, the number of Contributory Hours needed to earn a Benefit Unit was based on age, as follows:
| Younger than Age 50 | |
| Contributory Hours in Calendar Year
Less than 250 hours |
Benefit Units
None |
| Age 50 through 59 | |
| Contributory Hours in Calendar Year
Less than 250 hours |
Benefit Units
None |
| Age 60 or More | |
| Contributory Hours in Calendar Year
Less than 200 hours |
Benefit Units
None |
Between January 1, 1976 and December 31, 1981
From January 1, 1976 through December 31, 1981, Benefit Units are earned for Contributory Hours according to the following schedule:
| Contributory Hours in Calendar Year
Less than 400 hours 1,200 hours or more |
Benefit Units
None |
On and After January 1, 1982
After January 1, 1982, Benefit Units for Contributory Hours are earned as follows:
| Contributory Hours in Calendar Year
Less than 400 hours |
Benefit Units
None |
Carry-Over of Hours
If you worked more than a specified number (see below) of Contributory Hours during any Calendar Year on and after January 1, 1981 and prior to January 1, 1986, the excess hours will be “carried-over” into the following Calendar Year and applied towards earning one Contributory Benefit Unit if you do not otherwise work sufficient hours in that Calendar Year to earn one Contributory Benefit Unit. Please note that carry-over hours may not be used to earn more than one Benefit Unit in a Calendar Year. In addition, disability credits (refer to Section 6.05.b.(3) of the Plan Document) cannot be used as carry-over hours.
Between January 1, 1981 and January 1, 1982, Contributory Hours in excess of 1,200 hours are carried-over. Between January 1, 1982 and January 1, 1986 Contributory Hours in excess of 1,500 hours shall be carried-over. These carry-over provisions are last applicable to Contributory Hours earned in Calendar Year 1985 (which are then carried over into Calendar Year 1986). Thereafter, no Contributory Hours are carried-over for benefit accrual purposes.
Benefit Accruals On and After January 1, 1987
The portion of monthly benefit earned on or after January 1, 1987 ceases to be based on Benefit Units and instead becomes based on a percentage of the Employer Contributions required to be made on your behalf during any Calendar Year (in which you have at least 400 Hours of Service in Covered Employment or a Year of Credited Service including hours of Continuous Non-Covered Employment during a Calendar Year). On and after January 1, 1987, Benefit Units will only be calculated and used for other purposes such as determining eligibility for certain benefits.
Non-Working Periods After Your Contribution Date
Hours will be credited on a weekly basis towards Credited Current Service and benefit accruals if you are in military service or disabled.
Prior to January 1, 1976, such periods of absence were credited at the following rate:
- 30 hours per week if you were younger than 50 years of age;
- 20 hours per week if you were age 50 through 59; and
- 16 hours per week if you were age 60 or older.
After January 1, 1976, you receive 25 hours per week regardless of age.
- Exception: For “qualified” military service on and after December 12, 1994 under the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”), benefits will be credited based on the average number of hours you work in Covered Employment in a week during the 12-month period immediately preceding your military service but not less than 25 hours per week for such military service.
Can You Lose Your Credited Service, Benefit Units and Other Accrued Benefits?
You cannot lose your Credited Service, Benefit Units or other accrued benefits once you have attained Vested Status (Refer to page 12 of the Plan Document). However, you can permanently lose them if you have not attained Vested Status and you fail to work a minimum required number of hours in a covered job or earn a fraction of a Year of Credited Service for a certain number of consecutive Calendar Years, as explained below.
Permanent Breaks in Service Before January 1, 1976
Prior to January 1, 1976, if you had attained Vested Status, your Credited Service and Benefit Units were cancelled if you did not earn at least one-quarter Year of Credited Service as a result of Contributory Hours of Service in at least one of two consecutive Calendar Years.
However, cancelled Credited Current Service and Contributory Benefit Units for that period are reinstated if you returned to Covered Employment and subsequently earned five Contributory Benefit Units prior to incurring a Separation from Covered Employment.
Permanent Breaks in Service Between January 1, 1976 and January 1, 1985
Between January 1, 1976 and January 1, 1985, if you had not attained Vested Status, your Credited Service and Benefit Units were cancelled if you had a number of consecutive One Year Breaks in Service (i.e., Calendar Years in which you earned fewer than 400 Hours of Service).
Your Credited Service and Benefit Units were cancelled at the end of the Calendar Year in which the number of consecutive One-Year Breaks in Service was equal to or greater than your previously earned full Years of Credited Service.
For example:
| Year | Hours Worked | Credited Service/ Break in Service |
Total Years of Credited Service/ Break in Service Years |
| 1 | 1,400 | Year of Credited Service | 1 Year of Credited Service |
| 2 | 1,800 | Year of Credited Service | 2 Years of Credited Service |
| 3 | 1,100 | Year of Credited Service | 3 Years of Credited Service |
| 4 | 1,300 | Year of Credited Service | 4 Years of Credited Service |
| 5 | 1,400 | Year of Credited Service | 5 Years of Credited Service |
| 6 | 1,200 | Year of Credited Service | 6 Years of Credited Service |
| 7 | 1,200 | Year of Credited Service | 7 Years of Credited Service |
| 8 | 300 | Break in Service | 1 Break in Service Year |
| 9 | 250 | Break in Service | 2 Break in Service Years |
| 10 | 0 | Break in Service | 3 Break in Service Years |
| 11 | 0 | Break in Service | 4 Break in Service Years |
| 12 | 350 | Break in Service | 5 Break in Service Years |
| 13 | 200 | Break in Service | 6 Break in Service Years |
| 14 | 1,100 | Year of Credited Service | 8 Years of Credited Service |
- The number of consecutive Breaks in Service (6) did not equal or exceed the number of previously earned full Years of Credited Service (7). Therefore, the Participant in this example did not have a Permanent Break in Service and retained his prior 7 Years of Credited Service and added an 8th Year of Credited Service to this total.
The above example illustrates that one or more One-Year Breaks in Service (less than 400 Hours of Service in a Calendar Year) can be repaired – so long as the number of consecutive One-Year Breaks in Service does not equal the full number of Years of Credited Service earned prior to the beginning of the One-Year Breaks. All previous One-Year Breaks in Service are disregarded after a Calendar Year in which you complete at least 400 Hours of Service.
Permanent Breaks in Service on and after January 1, 1985
On and after January 1, 1985, if you are not vested, you can permanently lose your Credited Service and Benefit Units if the number of consecutive One-Year Breaks in Service is equal to five, or if greater, the number of your full Years of Credited Service
For example:
| Year | Hours Worked | Credited Service/ Break in Service |
Total Years of Credited Service/ Break in Service Years |
| 1 | 1,400 | Year of Credited Service | 1 Year of Credited Service |
| 2 | 1,800 | Year of Credited Service | 2 Years of Credited Service |
| 3 | 300 | Year of Credited Service | 1 Break in Service Year |
| 4 | 250 | Year of Credited Service | 2 Break in Service Years |
| 5 | 0 | Year of Credited Service | 3 Break in Service Years |
| 6 | 0 | Year of Credited Service | 4 Break in Service Years |
| 7 | 1,100 | Year of Credited Service | 3 Years of Credited Service |
- Although the number of consecutive One-Year Breaks in Service (4) exceeded the number of previously earned Years of Credited Service (2), the Participant did not have a Permanent Break in Service because the Plan requires that the number of consecutive Breaks in Service be the greater of the number of full Years of Credited Service earned prior to the beginning of the One-Year Breaks in Service or 5.
Grace Periods After Your Contribution Date
Grace periods are used to prevent Breaks in Service that could lead up to a Permanent Break in Service and are periods that are disregarded in determining whether a Permanent Break in Service has occurred. They do not count towards earning Credited Service, Benefit Units or benefit accruals. You are allowed a grace period if you are absent from Covered Employment, as described below:
- Prior to January 1, 1976
- You failed to earn at least one quarter of Credited Service in any period of two consecutive Calendar Years before January 1, 1976 due to any of the following reasons:
-
- You were disabled.
- You were involuntarily unemployed.
- You were employed with a public agency performing the type or kind of work covered by a Collective Bargaining Agreement.
- You were employed as a painter by a non-contributing employer approved by Trustees.
- On or after January 1, 1976
- You failed to complete at least 400 Hours of Service because you were employed by a public agency covered by an agreement between that public agency and the Union.
- On or after January 1, 1985
- You take time off for maternity/paternity leave (i.e., birth or adoption of a child). You may be granted up to 501 Hours of Service for the purpose of this grace period.