Claims Review

Credit

How Working Time Counts

The amount of time you work in a job covered by the Plan counts in several important ways. It determines whether you are eligible for a pension and how much your pension will be. For these purposes, the time you work as a Participant of the Plan is measured in Years of Service Credit.

When you become a Participant of the Plan, you receive Service Credit for the time your Employer contributes to the Plan with respect to your work. The credit earned for this period of time is called “Future Service Credit.”

You may also receive Service Credit for certain work performed before contributions were made to the Plan for your work group. This Service Credit earned is called “Past Service Credit.” Past Service Credit is only available to Employees who became Participants before July 1, 1976.

In general, Years of Service Credit taken into account in determining your eligibility for a pension are called “Vesting Credit.” Years of Service Credit taken into account when determining the amount of your pension are called “Benefit Accrual Credit.” The total amount of your pension is calculated on the basis of Benefit Accrual Credit earned prior to July 1, 1976 and after that date, a percentage of Qualifying Contributions required to be made to the Plan on your behalf. (Note: Any portion of hourly contributions that is earmarked strictly to improve or maintain proper funding of the Plan (“off-benefit” contributions) is not counted when determining your benefit accruals).

VESTING CREDIT FOR PAST SERVICE

You are entitled to receive one Year of Vesting Credit (up to a maximum of 20 years) for each calendar year of work performed in Covered Past Service during the Past Service Period before your work group began participating in the Plan, if you meet the eligibility requirements described below (Past Service Credit).

Eligibility for Past Service Credit

As a general rule, you will be eligible for Past Service only if (1) you have at least 1½ Years of Future Service Benefit Accrual Credit and (2) you worked at least 360 hours under the Plan within the two Plan Years immediately following the applicable Past Service Period described below. If you did not earn 360 hours during the two-year period, it is possible that you may still be eligible for Past Service Credit if you were on an excused absence.

Past Service Period. The following are the Past Service Periods for each group. The group applicable to you is the one with which you earned your first Hour of Covered Service (“Initial Work Jurisdiction”).

Work Jurisdiction Past Service Period
All Glaziers and all Auto Glassworkers, except as noted below. January 1, 1937 – June 30, 1963
Oakland, San Francisco, San Jose and Fresno Allied Workers and Sacramento Local 767 Shower Door Workers and Sacramento Local 767 Auto Glassworkers January 1, 1946 – June 30, 1972
Sacramento Local 767 Allied Workers July 1, 1947 – November 30, 1973
Oakland, San Francisco, San Jose and Fresno Shower Door Workers January 1, 1948 – June 30, 1974

Covered Past Service. Covered Past Service is employment during your applicable Past Service Period in any of the following:

  • Employment in the Work Jurisdiction in which you earned your first Hour of Covered Service, or any Work Jurisdiction that became part of this Plan at the same time as your initial Work Jurisdiction;
  • Employment with a Union which participates as an Employer in this Plan; or
  • U.S. military service for which you have guaranteed reemployment rights in work of the type described in the items above, provided you returned to such work within the time allowed by law.

In addition, if you became a Participant in the Plan before July 1, 1976, you may also be eligible to receive additional Past Service Credits for employment in other Work Jurisdictions.

Example: Assume an Employee began working as a glazier in January 1942, worked continuously in Covered Past Service (including any qualifying military service) and became a Participant in the Plan when it began on July 1, 1963. The Participant would then have 21½ Years of Covered Past Service Credit. However, he is limited under the Plan rules to a maximum of 20 Years of Past Service Credit.

VESTING CREDIT FOR FUTURE SERVICE

Vesting Credit is given for employment with an Employer after the date contributions were first required for the Work Jurisdiction in which you earned your first Hour of Covered Service (Future Service Credit). You receive Vesting Credit for Hours of Service worked in a Plan Year according to the following schedule:

From July 1, 1963 through June 30, 1974

You earn a Year of Vesting Credit for 1,800 Hours of Covered Service in a Plan Year. For less than 1,800 Hours of Covered Service, you earn 1/1,800 Year of Vesting Credit for each Hour of Covered Service. No more than one Year of Vesting Credit can be earned during a single Plan Year.

From July 1, 1974 through June 30, 1976,

You earn a Year of Vesting Credit for 1,620 Hours of Covered Service. For less than 1,620 Hours of Covered Service, you earn 1/1,620 of a Year of Vesting Credit for each Hour of Covered Service. For more than 1,620 Hours of Covered Service, you earn an additional 1/1,620 of a Year of Vesting Credit for each Hour of Covered Service with no maximum.

Beginning July 1, 1976

You continue to earn a Year of Vesting Credit for 1,620 Hours of Covered Service. For less than 1,620 Hours of Covered Service, you earn 1/1,620 of a Year of Vesting Credit for each Hour of Covered Service. For more than 1,620 Hours of Covered Service, you earn an additional 1/1,620 of a Year of Vesting Credit for each Hour of Covered Service with no maximum.

In addition, Hours of Service earned after June 30, 1976 in Connecting Noncovered Service, shall be counted only towards earning a maximum of one Year of Vesting Credit in a Plan Year.

ALTERNATIVE METHOD FOR CALCULATING VESTING CREDIT

If it is to your advantage, instead of using the formula for calculating vesting credit under “Future Service Credit for Vesting, you will earn one Vesting Credit for each Plan Year beginning after June 30, 1963 in which you have at least 870 Hours of Service. However, under this calculation method, if you did not have at least 870 Hours of Service, you receive no Vesting Credit for that year. The maximum Vesting Credit for a single Plan Year is one.

Whether the Plan uses this method or the method under “Future Service Credit for Vesting,” the same method must be used to calculate your Vesting Credit for all Plan Years.

VESTING CREDIT FOR PERIODS OF MILITARY SERVICE

From July 1, 1963 through December 11, 1994

You will receive Vesting Credit for the period of military service during which you retain reemployment rights under Federal law, provided you return to Covered Future Service within 90 days following release from active duty, or within 90 days after recovery from a disability continuing after release from active duty. The Vesting Credit will be granted based on 1/4 of a year of Credit for each calendar quarter in which you performed military service.

USERRA Beginning December 12, 1994

You will receive Vesting Credit for the period of military service during which you retain reemployment rights under the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”), provided you return to Covered Future Service following your release from active duty within the applicable period specified in the USERRA. The Vesting Credit will be granted based on 190 Hours of Service credited for each calendar month of such service.

VESTING CREDIT FOR RECIPROCAL SERVICE

For Vesting purposes only, this Plan may recognize hours that you may have worked under other pension plans covering this industry. If you work or have worked under any such plan, be sure to let the Plan Office know. The Plan presently has reciprocity agreements with the following plans:

  • Western Glaziers Retirement Trust of Oregon and South Western Washington
  • Western Glaziers Retirement Fund, Seattle, Washington
  • Southern California Glaziers and Glassworkers Pension Plan
  • Hawaii Glaziers Pension Trust Fund
  • Joint Industry Pension Funds of all District Councils and Local Unions Affiliated with the International Brotherhood of Painters and Allied Trades

BENEFIT ACCRUAL CREDITS

The amount of your pension for all Plan Years through June 30, 1974 is based on the number of Benefit Accrual Credits you earn before you retire and the dollar value assigned to each Credit. Benefit Accrual Credits are granted for all work for which Employers contribute, or are required by a written agreement to contribute to the Pension Plan. Benefit Accrual Credits are also earned for employment of the same kind performed before contributions were first required for the Work Jurisdiction in which you earned your first Hour of Covered Service (Benefit Accrual Credit for Past Service). Your total Benefit Accrual Credits are determined based on your Years of Past and Future Service Credits earned under the Plan.

BENEFIT ACCRUAL CREDITS FOR PAST SERVICE

One Benefit Accrual Credit is given for each Year of Vesting Credit for Past Service. That is, if you earned one Vesting Credit, you also earned one Benefit Accrual Credit. The way in which Vesting Credit for Past Service is earned is explained under Vesting Credit for Past Service.

BENEFIT ACCRUAL CREDITS FOR FUTURE SERVICE CREDIT

You earn Benefit Accrual Credits for Hours of Covered Service worked in a Plan Year according to the following:

From July 1, 1963 through June 30, 1974

You earn one Benefit Accrual Credit for 1,800 Hours of Covered Service in a Plan Year. For less than 1,800 Hours of Covered Service, you earn 1/1,800 of a Benefit Accrual Credit for each Hour of Covered Service.

From July 1, 1974 through June 30, 1976

You earn a Benefit Accrual Credit for 1,620 Hours of Covered Service. For less than 1,620 Hours of Covered Service, you earn 1/1,620 of a Benefit Accrual Credit for each Hour of Covered Service. For more than 1,620 Hours of Covered Service, you earn an additional 1/1,620 of a Benefit Accrual Credit for each Hour of Covered Service with no maximum.

Benefit Accruals Beginning July 1, 1976

Beginning July 1, 1976, you no longer earn Benefit Accrual Credits. Instead, the formula for accruing benefits on or after July 1, 1976 is based on a percentage of Qualifying Contributions. “Qualifying Contributions” are contributions that are required to be made on your behalf by your Employer for work in Covered Service, subject to the following conditions:

  • Contributions earned at any time to be used for supplemental payments for retirement Participants or for deficit reduction purposes are not included when calculating benefit accruals. These contributions are sometimes referred to as “off-benefit contributions.”
  • Contributions made to the Northern California Glaziers Excess Benefit Plan are included when calculating benefit accruals.
  • Other special rules are contained in Article A.12 of the Plan.

BENEFIT ACCRUAL CREDIT FOR PERIODS OF MILITARY SERVICE

Beginning December 12, 1994, you will receive Benefit Accrual Credits for the period of military service during which you retain reemployment rights under the Uniform Services Employment and Reemployment Rights Act of 1994, provided you return to Covered Future Service, following your release from active duty, within the applicable period specified by the Act. The amount of the Benefit Accrual Credits will be calculated in accordance with the pay rate you would have received had you continued to work in Covered Service, or if the rate is undeterminable, the average pay rate, hours, or compensation during the 12-month period immediately preceding the period of the military service will be used.

Can you lose your vesting credit, benefit accrual credits, and other accrued benefits?

Once you are Vested, you cannot lose your Vesting Credits, Benefit Accrual Credits or accrued benefits based on Qualifying Contributions. Being Vested means that you have fulfilled the requirements to receive a non-forfeitable pension beginning at age 62 (or Normal Retirement Age, if later). (See “How You Achieve Vested Status” on page ____) – even if you cease working in Covered Service and leave the industry.

However, if you are not Vested and do not work a required a minimum number of hours for an Employer in Covered Service or have Connecting Noncovered Service within a specified number of consecutive Plan Years, you may incur a Permanent Break in Service. A Permanent Break in Service has the effect of canceling your previous years of participation, Vesting Credit, Benefit Accrual Credit, and other accrued benefits. One-year Breaks in Service and Permanent Breaks in Service are determined by the Plan rule in effect at the time your Break occurs, as explained below.

ONE-YEAR BREAK IN SERVICE

Beginning July 1, 1976, a One-Year Break in Service occurs if you earn less than 435 Hours of Service in a Plan Year. However, a One-Year Break in Service will not occur if any one of the following exceptions applies:

  • For at least half of that Plan Year, you were employed as a glazier or glass worker for the United States Government anywhere in the world; or state or local government agency in an area where Future Reciprocal Service Credits could be earned; or
  • You received Vesting Credit during the Plan Year as a result of service in the United States military; or
  • For at least half of that Plan Year, you were employed by a glaziers apprenticeship plan, a district council covering glaziers, or as an organizer at a non-union company as certified by the Union with jurisdiction over the area in which the non-union company is located; or
  • After July 1, 1985, you received Hours of Maternity/Paternity Leave to prevent a Break in Service for the period you were absent from employment as a result of (a) pregnancy, (b) birth of a child, (c) adoption or (d) care of a child immediately following birth or adoption.
  • After July 1, 1995, for at least half of that Plan Year, you were employed by the International Brotherhood of Painters and Allied Trades.
  • After July 1, 1989, for at least half of that Plan Year, you were employed by the company that administered the Plan during that Plan Year, and you did not incur a One-Year Break in Service in the prior Plan Year.

PERMANENT BREAK IN SERVICE

Before July 1, 1976, you had a Permanent Break in Service and lost your Vesting and Benefit Accrual Credit if you did not earn at least 360 hours of credit in a period of two consecutive Plan Years.

Between July 1, 1976 and July 1, 1985, a Break in Service becomes permanent if you have as many consecutive One-Year Break in Service years as you have full Years of Vesting Credit.

For Example: After July 1, 1976, but prior to July 1, 1985, you have four years of Vesting Credit, based on having 1,620 hours worked in each of four years. Then in the four years that follow:
YEAR PARTICIPANT WORKS TOTAL
YEARS OF VESTING
CREDIT
BREAK IN SERVICE YEARS
1 405 hours 4.00 1 year (temporary)
2 162 hours 4.00 2 year (temporary)
3 0 hours 4.00 3 year (temporary)
4 324 hours 0 4 year (temporary)
Although you have One-Year Breaks in Service, they do not result in a Permanent Break in Service until the fourth year when the number of One-Year Breaks in Service (four) equal the full number of previously earned Vesting Credit (four).

Beginning July 1, 1985, a Break in Service becomes permanent if you have at least five consecutive One-Year Breaks in Service and the number of your consecutive One-Year Breaks equals or exceeds the number of your previously earned full Years of Vesting Credit.

For Example: After July 1, 1985, you have four years of Vesting Credit, based on having 1,620 hours worked in each of four years. Then in the five years that follow:
YEAR PARTICIPANT WORKS TOTAL
YEARS OF VESTING
CREDIT
BREAK IN SERVICE YEARS
1 405 hours 4.00 1 year (temporary)
2 162 hours 4.00 2 year (temporary)
3 0 hours 4.00 3 year (temporary)
4 324 hours 0 4 year (temporary)
Although the four consecutive One-Year Breaks in Service equal the number of previously earned Vesting Credits (four), they do not result in a Permanent Break in Service because you must have at least five consecutive One-Year Breaks in Service before you incur a Permanent Break in Service. You eventually incur a Permanent Break in Service after the fifth year because, by that time, you have incurred five consecutive One-Year Breaks in Service.

In both of the above examples, you incurred a Permanent Break in Service because had had a number of consecutive One-Year Breaks in Service. If you had stopped the number of consecutive One-Year Breaks in Service by working at least 435 hours in a Plan Year, you would have prevented the Permanent Break in Service.

In other words:

  • A One-Year Break in Service can be repaired–so long as the Break in Service is not permanent. All previous Breaks in Service years are disregarded after a Plan Year in which a Participant has at least 435 hours of work in Covered Service and/or Connecting Noncovered Service.
  • Break in Service years will not be added together unless they come one right after the other, without interruption by years of at least 435 hours of work in Covered Service and/or Connecting Noncovered Service.

CURING A PERMANENT BREAK IN SERVICE

If you incur a Permanent Break in Service (as described above), you may still “cure” the Permanent Break in Service – thereby restoring any cancelled Vesting Credit, Benefit Accrual Credit and accrued benefits based on Qualifying Contributions – if:

  • You return to Covered Service and earn at least six Years of Vesting Credit without an intervening Permanent Break in Service; or
  • You have a controlling interest in an Employer which is required to make contributions to this Plan under a collective bargaining agreement covering glaziers or glass workers, and contributions are made to this Plan on behalf of such workers for six-consecutive Plan Years beginning on or after July 1, 1994.

How you achieve vested status

If you become Vested under the rules of this Plan, you shall have a right to receive a Normal Retirement Benefit – even if you cease working and never return to work in Covered Service. You may also be entitled to Early Retirement Benefits if you meet the Plan’s age and service requirements for that type of benefit.
You are Vested if:

  • You attain Normal Retirement Age
  • You are a Participant at a time when you attain at least age 52 and you are still a Participant when you accumulate at least 1-1/2 Years of Future Service Benefit Accrual Credits.
  • Beginning July 1, 1997, you have at least one Hour of Service after June 30, 1997 while you are a Participant in this Plan, and have accumulated at least 5 Years of Vesting Credit without a Permanent Break.
  • From July 1, 1976 through June 30, 1997, you accumulated at least 10 Years of Vesting Credit without a Permanent Break in Service. Effective July 1, 1989, if you are not covered by a collective bargaining agreement, you are Vested if you have accumulated five Years of Credited Service and you have at least one Hour of Service after June 30, 1988.
  • If you ceased to participate in this Plan before July 1, 1976, your vested status is determined in accordance with the Plan rules in effect at the time.

If you have any questions regarding your status in the Plan, you should contact the Plan Office for a determination.

Benefits

This section describes the types of pensions available under the Plan and the service, age and other requirements for each. The amount of a monthly pension benefit will vary according to a number of factors, including: when your benefits were accrued, when you apply for pension benefits, and which option you select. The Plan Office can tell you about your eligibility and explain various factors which should be considered when you are ready to think about retirement.

NORMAL RETIREMENT BENEFIT

Eligibility Requirements

You are eligible to receive a Normal Retirement Benefit on the date:

  • You reach age 62 and you have achieved Vested status, as described on page ___, or
  • You reach age 65 and the fifth anniversary of your Plan participation, provided you worked at least one Hour of Covered Service on or after July 1, 1988 while you were a Participant in this Plan; or
  • You reach age 65 and the tenth anniversary of your Plan participation.

Normal Retirement Benefit Amount

The amount of your monthly Normal Retirement Benefit depends on:

  • The number of Benefit Accrual Credits earned;
  • The amount payable for each Benefit Accrual Credit before July 1, 1974 (determined by your Weekly Contribution Rate and Work Jurisdiction); and
  • The percentage of the Qualifying Contributions required to be made with respect to your work after June 30, 1974.

Monthly Benefit Earned Before July 1, 1974

The portion of your Past Service and Future Service Benefit earned before July 1, 1974 is calculated by multiplying the Benefit Accrual Credit earned before July 1, 1974 by the monthly benefit amount determined using the Weekly Contribution Rate applicable to the Work Jurisdiction in which you earned your first Hour of Covered Service.

Past Service Benefits. The maximum monthly benefit amount payable for each Year of Past Service Benefit Accrual Credit is $37.50 for a Participant whose Weekly Contribution Rate is at least $22.00. The maximum amount will be reduced proportionately for Participants with lower Weekly Contribution Rates.

Future Service Benefits earned from July 1, 1963 through June 30, 1974. The maximum monthly benefit amounts payable for each Year of Benefit Accrual Credit earned for this period are as follows:

Weekly Contribution Rate Maximum Monthly Benefit Amount for each Year of Benefit Accrual Credit
$40.75 or higher $37.50
$30.00 but less than $40.75 $35.23
Less than $30.00 $35.23 amount Reduced Proportionately

Monthly Pension Earned on and after July 1, 1974

The portion of your monthly pension earned on and after July 1, 1974 is determined in a completely different way. It is based on a percentage of the Qualifying Contributions payable with respect to your work in Covered Service. The percentage factor is multiplied by the amount of Qualifying Contributions during a Plan Year as follows:

Period Effective Percentage of Qualifying Contributions
July 1, 1974 through June 30, 2002 5.0%
July 1, 2002 through June 30, 2003 2.6%
July 1, 2003 through June 30, 2005 1.3%
July 1, 2005 to present 1.0%
Note: Qualifying Contributions does not include certain “off-benefit” amounts. See page ___ for more details.

Important

If you have a Computation Break in Service or become employed in Noncovered Glazing Service after July 1, 1994, the amount of the monthly benefit you earned before the Computation Break or Noncovered Glazing Service will be frozen and determined under the terms of the Plan in effect at the end of the Computation Break period or on the date you entered Noncovered Glazing Service (unless such rules are waived as described on page ___). If you return to Covered Service and earn additional benefits, the monthly pension amount earned after your return will be based on the amount payable by the Plan at that time.

Here is an example of how the Normal Retirement Benefit is calculated for a pension effective July 1, 2011. Assume the Participant has worked in continuously in Covered Service since the 1987-1988 Plan Year, has not incurred a Computation Break in Service, and contributions for all years have been made on his behalf at the maximum hourly contribution rate.

Credits Benefit Rate Normal Retirement Amount
Past Service Benefits for 1972 None $37.50
Future Service Benefits for 1973-1974 None $37.50
Future Service Benefits for 1974-1987 None 5.0%
Plan Year Amount of Contributions 1 5.0% $231.05
1987-1988 4,621 1 5.0% 240.00
1988-1989 4,800 1 5.0% 247.30
1989-1990 4,946 1 5.0% 232.50
1990-1991 4,650 1 5.0% 154.10
1991-1992 3,082 1 5.0% 176.15
1992-1993 3,523 1 5.0% 210.65
1993-1994 4,213 1 5.0% 244.50
1994-1995 4,890 1 5.0% 248.75
1995-1996 4,975 1 5.0% 245.00
1996-1997 4,900 1 5.0% 242.50
1997-1998 4,850 1 5.0%
1998-1999 1 5.0%
1999-2000 1 5.0%
2000-2001 1 5.0%
2001-2002 1 5.0%
2002-2003 1 2.6%
2003-2004 1 1.3%
2004-2005 1 1.3%
2005-2006 1 1.0%
2006-2007 1 1.0%
2007-2008 1 1.0%
2008-2009 1 1.0%
2009-2010 1 1.0%
2010-2011 1 1.0%
Normal Retirement Benefit $___________
After Rounding $___________

EARLY RETIREMENT BENEFIT

Eligibility Requirements

You are eligible to receive an Early Retirement Benefit on the later of the date:

  • you achieve Vested status, and
  • you reach age 52, and
  • you have earned at least 1½ Years of Future Service Benefit Accrual Credit.

Early Retirement Benefit Amount

The amount of the Early Retirement Benefit is determined in the same manner as the Normal Retirement Benefit (see page ___).

Exceptions:

  • Noncovered Glazing Service Freeze Rule. For Vested Participants who retire on or after July 1, 1997 and have worked in Noncovered Glazing Service before retirement, the Early Retirement Benefit will be based on the early retirement reduction factors, and other provisions, in effect under the Plan when they last earned Vesting Credit prior to working in the Noncovered Glazing Service. However, this rule may be waived once in a Participant’s lifetime if he or she returns to Covered Service after working in Noncovered Glazing Service and earns at least six Years of Vesting Credit.
  • Rehabilitation Plan – Recommended Schedule. For Vested Participants who retire on or after July 1, 2011 and who are covered under the Rehabilitation Plan Recommended Schedule, the amount of the Early Retirement Benefit is determined in the same manner as the Normal Retirement Benefit (see page_____) only if the Participant:
    • Is at least age 52 with 60,000 hours of credited service; or
    • Is at least age 55 with 54,000 hours of credited service; or

If the Participant does not satisfy either of the above two requirements, the amount of the Participant’s entire Early Retirement Benefit is reduced from the amount payable as a Normal Retirement Benefit for each month that he is younger than age 62 as follows:

Participant Age Percentage of Normal Retirement Benefit Payable (Percentages shown for whole years. Actual percentages based on age in years and months)
62 100%
61 90.16%
60 81.46%
59 73.74%
58 66.88%
57 60.75%
56 55.27%
55 50.36%
54 45.94%
53 41.96%
52 38.37%
Below 52 Additional reductions apply
Special Eligibility Rules

Please read this section carefully, as special rules pertaining to your eligibility for benefits, the availability of benefits and how those benefits are calculated apply if:

  • You are subject to a “frozen benefit” rule based on you having incurred a Computation Break in Service.
  • You are subject to a “frozen benefit” rule for having engaged in Noncovered Glazing Service.
  • You are covered under either the Recommended or Default Schedule of the Rehabilitation Plan.

In some cases, your total benefit may be covered under more than one of these special rules and one portion of your benefit may be calculated differently than another.

FROZEN BENEFIT RULES – COMPUTATION BREAK IN SERVICE

How a Computation Break in Service Occurs

  • After June 30, 1976, a Computation Break in Service occurs on the June 30th ending date of the second consecutive Plan Year in which a Participant does not work at least 435 Hours of Service in either of the two-consecutive Plan Years.
  • Before July 1, 1976, a Computation Break in Service occurred on the June 30th ending date of the second consecutive Plan Year when a Participant did not have at least 360 hours of credit based on contributory or reciprocal service in either of the two-consecutive Plan Years.

The Effect of a Computation Break in Service

If you incur a Computation Break in Service, the portion of your benefit earned prior to the Computation Break is “frozen” under the terms of the Plan in effect when the Computation Break occurred (except that the frozen Early Retirement reduction factor will not apply, unless you also worked in Noncovered Glazing Service).

Benefits earned following a Computation Break in Service are added to the “frozen” benefit and are not subject to the prior Computation Break’s frozen rules.

A Participant may incur multiple Computation Breaks in Service and have portions of his benefit calculated under different frozen benefit rules.

One-Time “Cure” of a Computation Break in Service

A Vested Participant can “cure” having the Computation Break in Service freeze rule apply once in his or her lifetime by returning to Covered Service, earning at least two Years of Vesting Credit and meeting one of the following two conditions:

  • Subsequently earn Vesting Credit equal to or in excess of the number of his or her prior One-Year Breaks in Service; or
  • Subsequently earn at least six Years of Vesting Credit.

Once the Computation Break in Service freeze is cured, the increased benefit will apply to the Participant.

FROZEN BENEFIT RULES – WORKING IN NONCOVERED GLAZING SERVICE

“Working in Noncovered Glazing Service” Defined

A Participant is considered to have worked in Noncovered Glazing Service if the work is:

  • Performed in the jurisdiction of any local of the Glaziers, Architectural Metal and Glassworkers Union; and
  • Performed on or after November 1, 1986, and on or after the Participant became eligible under this Plan or a reciprocal plan; and
  • Performed for a company (without written authorization of the local union of the Glaziers, Architectural Metal and Glass Workers Union with jurisdiction over the company), which is doing the type of work covered by the terms of any collective bargaining agreement between any local union of the Glaziers, Architectural Metal and Glass Workers Union and any contributing Employer, but is not signatory to a collective bargaining agreement.

The Effect of Working in Noncovered Glazing Service

If a Participant works in Noncovered Glazing Service (as defined on page ___) on or after July 1, 1994, his or her benefit will be frozen under the terms of the Plan in effect when he or she first engaged in such work.

How a Participant’s benefits are affected depends upon when the work in Noncovered Glazing Service occurs. Some effects may include not being entitled to receive an Early Retirement Benefit that is not reduced for age and not having the unreduced 100% Marital Annuity available. Specific limitations resulting from working in Noncovered Glazing Service are described elsewhere in this booklet.

One-Time “Cure” of Working in Noncovered Glazing Service Frozen Benefits

A Vested Participant can cure or waive having the Noncovered Glazing Service freeze rule apply once in his or her lifetime by returning to Covered Service and subsequently earning at least six Years of Vesting Credit.

Once the freeze is cured, the increased benefit will apply to the Participant.

REHABILITATION PLAN SCHEDULES

Background

The Pension Protection Act of 2006 (“PPA”) introduced a number of changes in the funding and administration of qualified defined benefit retirement plans. Plans whose funded status is certified to be either “endangered” or “critical” are required to adopt either a funding improvement plan (for endangered plans) or rehabilitation plan (for critical status plans). Both funding improvement and rehabilitation plans contain one or more schedules consisting of increased employer contributions and/or benefit reductions designed to improve the plans funded status. Depending on the funding status of a plan in future years, the schedules may need to be updated. Every new or renewed collective bargaining agreement must contain the terms of one of the available schedules or a “default” schedule will automatically be imposed.

Based on the Glaziers Plan having been certified to be in critical status for the Plan Year beginning July 1, 2010, the Trustees adopted a Rehabilitation Plan containing two Schedules – a Recommended and a Default Schedule. The benefit reductions contained in the Schedules are applicable to Participants who do not retire by July 1, 2011.

Participants have been receiving annual notices concerning the Plan’s funding status and previously received a notice informing them of the Rehabilitation Plan Schedule benefit reductions described in this booklet.

The rules used to determine how schedule(s) are applied to Participants and the specific Schedule of benefits are described as of the printing date of this booklet. They may change in the future based on updates to the Rehabilitation Plan Schedules and/or Plan funding.

How Coverage Under a Schedule is Determined

Whether the Recommended Schedule, Default Schedule or current Plan applies to an individual is based on the following:

  • Retired Participants

    Participants who retire prior to July 1, 2011 are not affected by the Rehabilitation Plan and neither Schedule applies to them (i.e., there are no changes in the benefits currently being paid to them).

    However, Participants who retire on or after October 28, 2010 but prior to July 1, 2011 are not affected by the Rehabilitation Plan unless they return to work and have their benefits suspended prior to receiving 12 monthly pension payments. In such cases, the Participant’s benefits then become subject to the terms of one of the two Schedules as if he had retired on or after July 1, 2011.

  • Active Participants Who Have Not Retired as of July 1, 2011

    Participants who terminate covered employment after their Employer negotiates a collective bargaining agreement on or after October 28, 2010 containing terms consistent with either the Recommended Schedule or Default Schedule will have their benefits determined based on that Schedule. If their Employer fails to negotiate a collective bargaining agreement containing the terms of either Schedule, the Default Schedule will automatically be imposed on the Employees of that Employer 180 days following the expiration date of the collective bargaining agreement that was in effect on July 1, 2010.

    Benefit reductions become effective when a Participant’s Employer’s collective bargaining agreement adopted after October 28, 2010 and containing terms consistent with one of the Schedules is adopted – but not earlier than July 1, 2011 or later than 180 days following the expiration date of a collective bargaining agreement in effect on July 1, 2010.

    A Participant’s assigned Employer is the Employer for whom he/she has worked the most hours in Covered Service.

    For non-collectively bargained active Participants whose work is covered under the terms of a subscription agreement, the effective date for the benefit change described in this notice is July 1, 2011.

  • Inactive Vested Participants Who Have Not Retired as of July 1, 2011

    Participants who terminate Covered Service after their Employer has negotiated a collective bargaining agreement containing the terms of one of the Rehabilitation Plan Schedules shall have their benefits determined based on that Schedule.

    Participants who terminate Covered Service before their Employer has negotiated a collective bargaining agreement containing the terms of one of the Rehabilitation Plan Schedules shall have their benefits determined based on Recommended Schedule.

The Effect of Being Covered Under a Rehabilitation Plan Schedule

The Rehabilitation Plan Schedules contain a number of benefit changes, including the reduction or elimination of certain “adjustable benefits” (as defined in the Internal Revenue Code). In the case of the Default Schedule, some benefits earned prior to July 1, 2011 are unchanged, while benefits earned after that date are subject to reduction or elimination. The specific benefit changes under the Rehabilitation Plan Schedules are described later in this booklet.

Reciprocity

For Vesting purposes only, this Plan may recognize hours that you may have worked under other pension plans covering this industry. If you work or have worked under any such plan, be sure to let the Plan Office know. The Plan presently has reciprocity agreements with the following plans:

  • Western Glaziers Retirement Trust of Oregon and South Western Washington
  • Western Glaziers Retirement Fund, Seattle, Washington
  • Southern California Glaziers and Glassworkers Pension Plan
  • Hawaii Glaziers Pension Trust Fund
  • Joint Industry Pension Funds of all District Councils and Local Unions Affiliated with the International Brotherhood of Painters and Allied Trades