If
you incur a Break in Service, all of your previously earned years of service are
permanently cancelled. If you are vested (5 Pension Credits) however, your years
of service cannot be cancelled – if you are vested you cannot incur a Break in
Service.
Break
Year
You will have incurred a Break Year for each Plan Year that you do not earn at least ¼ Pension Credit. There are certain situations, which will entitle you to non-working credits and prevent you from incurring a Break in Service. If you think you have an unusual situation contact the Fund Office for additional information.
Break in Service
If
you are not vested, you will incur a permanent Break in Service and lose all of
your previously earned years of Pension Credits, Service Credits and Benefit
Units when the number of consecutive Break Years equals 5 years.
Break in Service Examples
If a member leaves Covered Employment in 1997 after earning 3 years of Pension Credits, those 3 years will be permanently cancelled on December 1, 2002 (after 5 Break Years) unless additional Pension Credit is earned before December 1, 20021. Service Credits and Benefit Units would also be cancelled. I
f a member leaves Covered Employment
in 1997 after earning 5 or more years of Pension Credits, the member will not
incur a Break in Service since he or she is vested.
In
general, if you are absent from work due to pregnancy, birth, adoption or
immediate post-natal child care, you will be credited during such period of
absence with the additional hours of service required to prevent a Break in
Service in the year of the absence, or the following year. These hours are
credited solely for purposes of determining a Break in Service.
In
addition, you will be credited with hours of service to avoid a Break in Service
during periods of approved Family and Medical Leave.
If
you return to Covered Employment after one or more Break Years, but before a
permanent Break in Service, your pension when you retire will consider all of
your Pension Credits, Service Credits and Benefit Units both before and after
the Break Year(s). If you return to Covered Employment after two Break Years,
your benefit will be based on the sum of the following:
Service Credits and Benefit Units for
the service before the break, times the benefit level in effect at the time you
had your first break year,
PLUS
your Benefit Units after the break times the benefit level currently in
effect.
| Depending on the length of the break, different benefit levels may be applicable in determining your pension amount. |
What if I return to Covered Employment after a Permanent Break in Service?
A
Permanent Break in Service permanently cancels all of your previously
accumulated years of Pension Credits, Service Credits and Benefit Units. If you
return to work after a Permanent Break in Service, when you return to work you
will be considered a new employee with no previous service.
Will I receive a refund
of money paid on my behalf by my Employer if I leave Covered Employment prior to
retirement?
No.
Contributions made by Employers are deposited into the Pension Trust Fund, which
is used for the exclusive benefit of Plan participants. Since the Pension Plan
was designed to provide pension benefits to employees who become eligible under
the Plan, refunding Employer contributions to employees leaving Covered
Employment before qualifying for a pension would not fulfill the purpose of the
Plan.