This summary of benefit provisions is applicable to Plan members who were employed at Loman on or after January 1, 1998.
Until the year ending December 31, 1999, your credited service was determined by dividing your hours of employment each year by 1700. Effective January 1, 2000, and going forward, your credited service is determined by dividing your hours of employment each year by 1400.
Your credited service is subject to an annual maximum of 1.0000.
Example:
| Year |
Hours
of Employment |
Formula |
Credited
Service |
1994 |
1800 |
maximum |
1.0000 |
1995 |
1625 |
1625 ÷ 1700 |
0.9559 |
1996 |
1686 |
1686 ÷ 1700 |
0.9918 |
1997 |
1742 |
maximum |
1.0000 |
1998 |
2000 |
maximum |
1.0000 |
1999 |
1500 |
1500 ÷ 1700 |
0.8824 |
2000 |
1282 |
1282 ÷ 1400 |
0.9157 |
As of January 1, 1998, immediate vesting came into effect. This means that you are entitled to receive a benefit from the Plan without having worked a minimum number of hours.
The amount of your monthly pension benefit payable at age 65 is calculated using the following formula:
Earnings since September 28, 1992 x 2.0%
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Example:
|
Year |
Earnings |
1992 |
$12,000 |
1993 |
48,000 |
1994 |
50,500 |
1995 |
51,000 |
1996 |
51,000 |
1997 |
52,300 |
1998 |
53,700 |
1999 |
54,000 |
2000 |
54,000 |
TOTAL |
$426,500 |
Pension = $426,500 x 2.0%
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Pension per month = $710.83
This amount of pension is payable to you for your lifetime with a guarantee for 60 months. This means that if you die before 60 monthly payments have been made, your beneficiary or estate will receive the remainder of the 60 payments.
When you actually retire, you will choose a form of pension that may be different than the one described above. For instance, you may take a lesser amount of pension in order to provide your spouse with a lifetime pension in the event of your death. These will be explained to you in more detail on your retirement.
The "normal retirement date" under the Plan is the last day of the month in which you turn age 65. However, you may retire and start to receive your pension from the Plan as early as age 50. With the consent of the Trustees, which is granted on a non-discriminatory basis, you may retire with an unreduced pension at age 60. Your pension will be reduced if you retire before age 60, in order to reflect the fact that you will most likely receive payments for a longer period.
The Plan Administrator is available to discuss in further detail the amount of the reduction applicable at each age.
If you are no longer working for Loman or for any other employer participating in the UFCW Union Pension Plan and you are under age 55, you may transfer the commuted value of your pension out of the Plan. The commuted value of your benefit is, roughly, the lump sum value today of the pension that is payable to you in the future. A number of factors are used to calculate the commuted value of a pension, including current interest rates, the member's age, and the amount of the member's earned pension.
The Plan Administrator will provide you with a detailed statement explaining the commuted value amount in the event you cease working for Loman or any other employer participating in the Plan.
If you die before you retire, your spouse will receive a benefit from the Plan. If you do not have a spouse, or if your spouse completes the applicable form waiving his/her rights to a pre-retirement death benefit, your designated beneficiary (if you have one) or your estate will receive the pre-retirement death benefit from the Plan.
You may have elected to purchase past service credits when that opportunity was available. In the event that you did, your pension will include a benefit recognizing your service (called "past service credit") at Overwaitea prior to September 28, 1992. The monthly pension for this period will be equal to the following:
1992 Earnings x 2.0% x Past Service Credit
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There is also a provision in the Plan guaranteeing that the value of your monthly pension for past service as calculated above would be no less than the amount you transferred into the Plan to purchase the past service credits, plus accumulated interest.
Please be aware that this summary is a very general explanation of the terms and conditions of your pension plan. If there are any conflicts between this summary and the terms of the official Plan document, the official Plan document will apply.
For more detailed information, feel free to call the Plan Administrator at 1-888-345-8329. You can also email any questions to ufcw@mercer.com.