Retirement Fund Announcement Letters (since last SPD)

 
Summary of Material Modification - December 2007
 
Summary of Material Modification - December 2005
 
Accrual Rate Increase Letter - December 2004
 
Summary of Material Modification - May 2004

 

 

 

 

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Summary of Material Modification - December 2007

TO ALL PENSION PLAN PARTICIPANTS

The following is a summary of Amendments to the Pipe Fitters Local 597 Retirement Fund. 

  1. Waiver of Suspension of Benefits Provisions.

Effective January 1, 2008, when there is a shortage of qualified employees to meet the staffing needs of the pipe fitting industry, the regular suspension of benefits provisions may be waived at specific jobsites as determined by the Business Manager of the Union through a written declaration.  A participant’s performance of work under a waiver shall not require him to repay any 13th check. 

For example, if the Business Manager announces that work at a certain jobsite for the months of June, July, and August will not result in a suspension, retired Participant Joe may work at that site for those months without a suspension of his retirement benefits.  If, however, Joe or any other retired Participant worked at that jobsite before June or after August or worked at a different jobsite between June and August, his benefits would be suspended. 

  1. Excused Years

Effective for Annuity Starting Dates on or after January 1, 2005, certain calendar years will be considered Excused Years in applying the break-in-service rules.  This exception to the break-in-service rules may apply if for at least 6 months you have the following special status: 

    1. Full-time work for a local unit of government that has a collective bargaining agreement with the Union that does not require contributions to the Plan, or
       
    1. Disability, for which you receive weekly workers’ compensation benefits, or Social Security disability benefits.

In order, for a period of special status to qualify towards an Excused Year period, you must; 1) provide proof to the Fund that you meet one of the above requirements and 2) complete at least 900 hours of service in covered employment during the 12 calendar months that follow the period of special status. 

You are allowed only one Excused Year period, if more than one period would qualify.  In such an event, the period occurring first in time would be the only one allowed. 

Finally, an Excused Year period only applies to determining whether you have incurred a one-year break-in-service or a permanent break-in-service.  The granting of an Excused Year period does not change your years of vesting service, pension credits, pension years, or the end of a period of accrual for determining accrual rates.   

  1. 13th Check.

Effective November 1, 2007, retirees receiving benefits as of November 1, 2007 received an extra (13th) pension check along with their regular November 2007 monthly benefit conditioned upon their continued status in retirement.  Beneficiaries, surviving spouses and alternate payees are not entitled to this 13th check.  In the event the Participant returns to Covered Employment during the 12 calendar month period following November 1, 2007, the Participant shall be obligated to return the value of the extra (13th) pension check to the Fund.  If the Participant does not return the value of the 13th check, the amount owed will be deducted from any subsequent benefit payments. 

Please keep this notice with your Summary Plan Description (SPD) booklet for future reference.  The SPD is being restated and a new up-to-date booklet will be issued in 2008. 

If you have any questions, please call the Fund Office.

 

 

 

 

 

 

Summary of Material Modification - May 2004

To:      All Retirement Plan Participants 

As Chairman of the Board of Trustees, I am pleased to announce the following improvements and changes to your Retirement Plan.  

1.      Effective January 1, 2005,  a pipe fitter will be able to retire as early as age 60 on a reduced pension as long he has at least 25 Pension Years and was actively employed before retirement. 

2.      Effective January 1, 2004, the eligibility rules for the Unreduced 25 Year Pension at age 62 were slightly liberalized. 

3.      Effective September 1, 2003, the Trustees adopted the United Association’s new Pension Fund Reciprocal Agreement.  

Reduced 25 Year Pension at age 60 

Under this new benefit, beginning January 1, 2005, you’ll be able to retire as early as age 60 if you meet the following requirements: 

a.                   You are at least age 60.

b.                  You have at least 25 Pension Years.

c.                   You worked in covered employment at least 750 hours in the calendar year in which you retire or in either of the two preceding calendar years. 

Your pension amount will be reduced by ½ of 1% for each month you’re younger than age 62 at the time of your retirement.   

For example, let’s say you have 40 Pension Credits and at least 25 Pension Years when you retire at age of 60.   Your pension, payable for life, would be $2464.00 per month calculated as follows: 

1.                  Calculate the Unreduced 25 Year Pension as if you were age 62: 40 Pension Credits times $70.00 = $2800.00. 

2.                  Reduce this amount by ½ of 1% for each month you’re younger than 62 at the time your pension starts: ½ of 1% times 24 months = 12%.  12% of $2800.00 = $336.00.  The $2800.00 Pension at age 62 will then be reduced by $336.00. 

3.                  The resulting amount, $2800.00 - $336.00 = $2464.00, is your monthly pension payable for life. 

This improvement is a first major step towards our ultimate goal of providing improved benefits for pipe fitters’ that wish to retire early. 

Change in Eligibility Rules for Unreduced 25 Year Pension at age 62 

Effective January 1, 2004, the actively at work requirement to qualify for the Unreduced 25 Year Pension at age 62 was eased so that a pipe fitter could qualify if he worked at least 750 hours in the calendar year in which he retired or in either of the two preceding calendar years.  Before this change, you had to have at least 750 hours in the calendar year in which you retired or in the immediately preceding calendar year. 

New Pension Fund Reciprocal Agreement 

Effective September 1, 2003 the Trustees adopted the new United Association Pension Fund Reciprocal Agreement.  This Agreement replaces the various other reciprocal agreements under which the Fund previously operated.  The vast majority of the UA Local Unions in the Country have now signed this new Agreement.  Now, when you work in another Union’s jurisdiction that has signed the Agreement, their pension fund will transfer 100% of all retirement contributions to the Local 597 Retirement Fund.  Under this new Agreement, your retirement hours will then be calculated based on the dollar amount of the contributions received. 

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In recent years we have been able to increase the benefit accrual rate to $70.00 per credit.  We have been able to increase the amount of pension credit that a pipe fitter can earn in a year.  In this last improvement we have made it possible for you to retire earlier than ever before.

We will continue to strive towards providing our working and retired members with the strongest possible retirement benefits while preserving the financial stability of your Retirement Fund. 

James Buchanan  
Business Manager  
Chairman, Pipe Fitters’ Retirement
Fund, Local 597             

Please keep this announcement letter with your copy of the Pipe Fitter’s Retirement Fund, Local 597 Summary Plan Description.

 

 

 

Accrual Rate Increase Letter - December 2004

                                                                                                        December, 2004
To All Participants: 

The Board of Trustees of the Pipe Fitter’s Retirement Fund, Local 597 is pleased to announce the following improvements to the Retirement Plan.

  1. Effective January 1, 2005, the accrual rate per pension credit is increased from $70.00 per credit to $74.00 per credit.
  1. All retirees receiving benefits as of December 31, 2004 will receive a 5.7% increase in the amount of their monthly benefit.  Beneficiaries, surviving spouses and alternate payees are not entitled to this increase.

 On the reverse side of this notification is Amendment Number 13 to the Rules and Regulations of the Retirement Fund, the Plan that covers this change.

 The Trustees adopted this improvement after studying the Benefits Survey results which showed that over 85% of the respondents favored Option 2.  Among other things, Option 2 provided that retirees would begin making a modest self-payment to the Welfare Fund to keep their coverage intact.  These pension improvements are intended to help offset the financial impact of the Welfare self-payments by current and future retirees.

 Please keep this notice with your copy of your Pipe Fitters 597 Retirement Plan Booklet for future reference.  If you have any questions, please contact the Fund Office.

 

                                                                                    Sincerely,

                                                                                     The Board of Trustees

 Note:    Due to the conversion to a new pension system, the Fund Office had previously advised that you would be receiving your annual pension credit history through 2003 late this year.  We have decided that, rather than issue a statement this late in the year, the Fund Office would send all members their pension credit statements on March 1, 2005 so that active members can have up-to-date pension credit histories through December 31, 2004.

 

 

Summary of Material Modification - December 2005

The Board of Trustees of the Pipe Fitters’ Retirement Fund, Local 597 is pleased to announce the following Plan improvement: 

Unreduced 25 Year Pension at Age 60 

Effective January 1, 2006, an Unreduced Twenty Five Year Pension is available at age 60.  Previously, a participant with 25 pension years could retire with an unreduced pension at age 62 and a reduced pension at age 60.  Under these new provisions, a participant who is eligible for the Unreduced Twenty Five Year Pension can receive his full benefit at age 60. 

You are eligible for the Unreduced Twenty Five Year Pension if you meet the following requirements: 

  1. You attain age 60,
  1. You have earned at least 25 Pension Years, and
  1. You work within the 36 months prior to retirement at least 750 hours during a 12 consecutive month period.

Example:  John has 32 Pension Years and 36 Pension Credits all of which were earned under a single period of accrual.  He retires February 1, 2006 at age 60 after meeting the 750 hour requirement prior to retirement.  His Regular Pension benefit would be: $74/credit x 36 credits - $2664/month. 

Because he qualifies for the Unreduced Twenty Five Year Pension, he is able to receive his Regular Pension Benefit at age 60 without reduction.  

If you have questions, please contact the Fund Office.

 

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