You receive a pension credit by meeting a minimum earnings requirement or working 1000 hours in “covered employment” (employment for which an employer paid contribution to the Pension Plan) during a calendar year. Currently, the minimum earnings requirement is $35,000. (See the Pension Plan Summary Plan Description or contact the Fund Office for information regarding the minimum earnings requirement in prior years.)

Vesting
In general, participants become vested when they earn five years of vesting credits. In prior years the requirement has been different, and you should contact the Fund Office if you have questions regarding your vesting status. Once you are vested in the Plan, you have a non-forfeitable right to a pension benefit and can’t lose any credits you have or earn in the future due to breaks in service.

Loss of Credits due to Breaks in Service
If you are NOT vested, and your covered earnings during the year are not at least ½ of the minimum earnings requirement (currently $17,500), you incur a 1-year Break in Service. If you incur consecutive Breaks in Service that exceed (1) your years of vesting service, or if greater (2) five years, you incur a Permanent Break in Service. When you incur a Permanent Break in Service, any credits earned before the break will be permanently lost.

The rules for Breaks in Service were different in past years, and there are some exceptions and grace periods that may be applicable to your situation. If you have any questions regarding whether a break in your service is considered Permanent under the Rules of the Plan, please contact the Fund Office.

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