Pension Plan Changes

Check out this informative video and infographic to help you understand the new Variable Pension Plan

Pension Plan Changes

Check out this informative video and infographic to help you understand the new Variable Pension Plan

Press play to watch the whiteboard video.

Click on the image to enlarge the infographic.

Press play to watch the Webinar Presentation video.

Active Participants

Active Participant means a vested Participant who is credited with a total of at least 2,000 Hours of Service in the 5 Calendar Years immediately preceding his pension starting date ("Annuity Starting Date"), including the Calendar Year in which his Annuity Starting Date occurs (except if a Participant's Annuity Starting Date is January 1, then the Participant must be credited with a total of at least 2,000 Hours of Service in the 5 full prior Calendar Years).

Vesting service in a Plan Year is 1/10th of a year credit for each completed 100 hours of service.

When you are Vested in your benefit, you have a non-forfeitable right to receive a pension benefit upon Retirement. This means that the Accrued Benefit you have earned cannot be lost even if you stop working in Covered Employment.

Vesting Service prior to January 1, 2016 is determined under the terms of the New Jersey Plan. Vesting Service on and after January 1, 2016 is credited on the basis of 1/10th of a year of Vesting Service for each complete 100 Hours of Service, or as otherwise required by applicable law. If you work for a Contributing Employer in a job classification that is not considered Covered Employment but that occurs immediately before or after your work in Covered Employment with the same Contributing Employer, you will receive Vesting Service for your work in the job that is not Covered Employment. You cannot receive more than 1 year of Vesting Service in a Calendar Year, even if you work more than 1,000 Hours of Service in that year.

You will become Vested when you have earned 5 years of Vesting Service. You will also become Vested upon the attainment of Normal Retirement Age prior to incurring a Permanent Break-In-Service even if you have not yet earned 5 years of Vesting Service. If you have transferred between bargained and non-bargained status during the period of time that you were a Participant in the Plan, please contact the Fund office to determine whether or not you are Vested.

Pension Plan Year runs January 1 - December 31 to earn Vesting Service.

The eligibility requirement is based on all hours which are credited for vesting purposes under the Plan.

If you are a Participant in the New Jersey Plan on December 31, 2015, then you will remain a Participant covered by this Plan on January 1, 2016. You are also eligible to participate in the Plan on and after January 1, 2016 if you are an Employee who has worked in Covered Employment during the Contribution Period for at least 1,000 Hours within a 12 consecutive month period known as the Eligibility Computation Period. An Eligibility Computation Period is a 12 consecutive month period beginning with the performance of your first Hour of Service, and each Plan Year beginning thereafter. Your participation will begin on the first day of the month that follows the end of the Eligibility Computation Period. For example, if you earned 1,000 Hours during the Eligibility Computation Period ending December 31, 2016, your participation will begin on January 1, 2017. For the purpose of determining your participation commencement date, you will be credited with Hours of Service you work for a Contributing Employer in non-Covered Employment, so long as it is immediately before your work in Covered Employment for the same Contributing Employer.

Pension Accrual Rates as of January 1, 2016

1 % of required Contrubutions made on your behalf

  • For example: 2000 hours x $8.00 (ER contribution rate) = $16,000 x 1% = $160 added to Participant's pension total.

Keywords & Definitions