1. Electrical Workers Local No. 26 Pension Trust Fund
Pension Presentation October 2017
Good Morning! I’m Robin Balint and this is Lovetta Farrar and Sheree Dempsey. We are from the Local 26 Pension office and our goal is to make applying for your Local 26 Retirement benefits as easy as possible.
There is quite a bit of information to cover today so please hold all questions until the end.
I will be talking about 3 components of your Local 26 Retirement benefits, the Pension Plan, Retiree health coverage, and the Individual Account Plan at Fidelity.

2. Terms to Know Normal Retirement Age Active Participant
Break-in-Service
Rule of 85
Vesting
Covered Employment
Disability
These are a few terms you’ll hear throughout the presentation.
I will start with “Covered Employment” which means you worked in a job class covered by a contract that requires your employer to make contributions to the Pension Plan on your behalf.
Normal Retirement Age: Age 62
Active Participant: Work in a job for which contributions are due. You cease to be an Active Participant on December 31st of any year in which you work less than 400 hours.
Break-in-Service: A year with less than 400 Vesting Hours of Service.
Rule of 85: Age plus years of creditable service = 85
Vesting: Vesting credits determine your right to a pension. You must work 1600 hours per year for 5 years without a Permanent Break in Service in order to be Vested.
Covered Employment: Employment for which a participating Employer is obligated to make contributions on your behalf.
Disability: Total and permanent condition from an unavoidable cause while working in covered employment, or within 6 months after leaving covered employment. Requires proof.

3. Types of Pensions Normal Early Retirement Unreduced Early Deferred
Disability
These are the types of Pensions available.

4. Normal Pension Eligibility
ACTIVE
At least 5 Years
Vesting Service
as of
Normal Retirement Age
(Age 62)
You are Active until December 31 of any year in which you work less than 400 hours. If you return to work, you will become “Active” again.

5. Credits & Rates What are Credits? What are Rates?
You can earn a maximum of one Credit for each year in the Plan. Credit by Hours is determined by dividing your total Pension benefit hours by 1600
Credit by Years is the number of actual Years of Participation in the Plan
What are Rates?
If you work in the “A” program you receive P Credits. The current rate for P Credits is $90.00
If your class is RW you receive R Credits. The current rate for R Credits is $24.00
You can earn a maximum of one Credit for each year in the Plan. Credit by Hours is determined by dividing your total Pension benefit hours by 1600
Credit by Years is the number of actual Years of Participation in the Plan
If you work in the “A” program you receive P Credits. The current rate for P Credits is $90.00
If your class is RW you receive R Credits. The current rate for R Credits is $24.00

6. Basic Pension Calculation
Basic Pension Calculation
Credits X Rate = Monthly Benefit
BENEFIT CREDITS BASED ON LOWER OF “CREDIT BY YEARS” AND “CREDIT BY HOURS”
This slide shows the Basic Pension Calculation.

7. Eligibility for Pension Bonus Credits
What are Bonus Credits?
You will earn bonus credits if you keep working in covered employment after age 62 (Normal Retirement age) or after becoming eligible under the Rule of 85.
The current rate for Bonus Credits is $ Bonus Credits became available in the year 2000.
You will earn bonus credits if you keep working in covered employment after age 62 (Normal Retirement age) or after becoming eligible under the Rule of 85.
The current rate for Bonus Credits is $ Bonus Credits became available in the year 2000.

8. What are Breaks In Service? Can Breaks In Service be Waived?
Occur in any year in which you have less than 400 credit hours.
Can Breaks In Service be Waived?
Can be waived (“bridged”) if you can verify:
unemployment for up to two years
unemployment for up to three years with 25 years of vesting service if the break occurs between
disability for up to three years
strikes and lockouts
active military service
years of Traveling Service prior to 1988 under certain conditions.
To bridge a break in service, contact the Fund Office for the appropriate forms.
Occur in any year in which you have less than 400 credit hours.
Can be waived (“bridged”) if you can verify:
unemployment for up to two years
unemployment for up to three years with 25 years of vesting service if the break occurs between
disability for up to three years
strikes and lockouts
active military service
years of Traveling Service prior to 1988 under certain conditions.
To bridge a break in service, contact the Fund Office for the appropriate forms.

9. Bridged Break in Service
How does a Break In Service affect your Pension Benefit?
A Break in Service “Freezes” all credit earned prior to the break at the Benefit Rate for the break year.
How does a “bridged” Break In Service work?
A “Bridged” Break in Service avoids the “Break” and removes the “Freeze” so that the benefit is calculated at a higher benefit rate which results in an increased benefit amount.
A Break in Service “Freezes” all credit earned prior to the break at the Benefit Rate for the break year.
A “Bridged” Break in Service avoids the “Break” and removes the “Freeze” so that the benefit is calculated at a higher benefit rate which results in an increased benefit amount.

10. One-Time Lump Sum Bonus of $2,500.00
Active & Normal Retirement (with minimum of 15 years of vesting service) or
Unreduced Early (Rule of 85)
Continue working until Retirement
A one-time bonus that can be rolled over into an IRA or taken as a cash payout.
Cash payout will be subject to mandatory 20% federal tax and possibly state taxes.

11. Early Retirement Pension – Eligibility
At least age 55
15 Vesting Credits OR
Active
Vested (at least 5 Vesting Credits)
At least age 55
1600 hours in 12 months prior to Retirement

12. Early Retirement Pension – Calculation
Credit x Rate – Reduction = Pension Benefit
The Basic Pension Calculation is reduced by 6% for each year you retire earlier than age 60; and 3% for the years between 60 and 61. (For example: Reduction at age 55 is 36%; at age 58, it is 18%)
What’s the Reduction for?
Plan must reduce your benefit amount to pay your benefit for a longer period of time
The Basic Pension Calculation is reduced by 6% for each year you retire earlier than age 60; and 3% for the years between 60 and 61. (For example: Reduction at age 55 is 36%; at age 58, it is 18%)

13. Unreduced Early Retirement
Vested
Age plus years of service =
85 or more (Rule of 85)

14. Unreduced Early Retirement Pension Calculation
Same as Normal Pension
No reduction for retirement before age 62

15. Deferred Pension - Eligibility
Inactive
Vested
Deferred Pension is available to any member that became vested and then left the union prior to retirement
If you apply for a deferred Pension, we might need to provide information and/or clarification of your employment outside of Local 26 prior to beginning any payments
At least age 62
Calculations are the same as with Normal Retirement.

16. Disability Pension - Eligibility
Vested
Totally and Permanently
Disabled
A Disability Pension requires medical evidence from two doctors and possibly a social security award.
All Disability applications are reviewed and approved by the Board of Trustees
Calculation is the same as with Normal Retirement--no reduction One-time Lump Sum bonus of $1,500

17. Once monthly payments begin, the form of benefit cannot be changed
Forms of Benefits
JS80 (Joint and Survivor Pension)
GB60 (60-Month Guarantee)
Once monthly payments begin, the form of benefit cannot be changed
When you retire you must choose between the Joint and Survivor Pension, which provides a lifetime benefit for your spouse should you pre-decease your spouse. Or
The GB60 option which is for members who reject the J&S or an unmarried member.

18. JS80 (Joint and Survivor Pension)
Normal form of benefit for married pensioners
Provides for 80% of your monthly benefit to your surviving spouse
No spousal consent is required

19. JS80 (Joint and Survivor Pension): Calculation
89% of unreduced benefit
Minus .4% for each year your spouse is younger OR
Plus .4% for each year your spouse is older (maximum is 91%)

20. GB60 (60-Month Guarantee)
Normal form of benefit for non-married pensioners
Guaranteed minimum of 60 payments to pensioner and/or beneficiary (combined)
If pensioner dies before receiving 60 payments, the remaining payments will be paid to beneficiary
If pensioner dies after receiving 60 or more payments, no benefit to beneficiary
GB60 may also be elected by married pensioners with notarized spousal consent

21. Pop-Up Provision
Joint & Survivor option selected at retirement and spouse predeceases
Benefit recalculated for GB60 rate from date of retirement at date of Spouse’s death
Add in increases since retirement to get new benefit amount

22. Applying for Pension
Contact Fund Office about three (3) months before you want to retire.
Earliest retirement date is the first day of the month following the month in which you apply.
Other factors may also affect retirement date.
Strongly suggest you make an appointment to see us or at least call and make sure we are available before stopping by the Fund Office.

23. Applying for Pension Documents Required: Birth Certificate for you
Birth Certificate for your spouse
Marriage Certificate
Divorce Decree and Property Settlement
Other documents may be requested!
If any documents are not available it could delay your pension start date

24. Work After Retirement What’s “Prohibited Employment?”
More than 39 hours a month
Notification and suspension
Repayment of benefits
Pension Reinstatement
Prohibited Employment is work in the electrical business, either union or non-union, in the jurisdictional area of IBEW Local No. 26 while receiving a pension through this Plan.
You may work and earn wages as long as the work is not in “Prohibited Employment” for more than 39 hours in a month
If you do work in “Prohibited Employment” after you retire, you must notify the Fund Office in writing so that your monthly pension payments can be suspended.
You will be required to repay any pension benefits paid to you after you worked in “Prohibited Employment.”
You must apply in writing for Pension Reinstatement after you have stopped working in prohibited employment.

25. Annual Statements Mailed every year
Contact the Fund Office if you have any questions about your Statement.
Annual Statements include a year-by-year listing of your reported hours and service credit, as well as a calculation of your accrued benefit amount.
This is a good time to contact us about Breaks-in-Service

26. JOINT & SURVIVOR GB60 Survivor Benefits after Retirement
Joint & Survivor - pays your surviving spouse 80% of your monthly payment for spouse’s lifetime.
GB60 - If less than 60 payments were received prior to pensioner’s death the remaining payments are payable to the named beneficiary.

27. Pre-Retirement Death Benefit
If at your date of death you have NOT retired are Vested and Married:
Lifetime Survivor Pension - Spouse’s share under the Joint & Survivor Pension payable on or after member’s 45th birthday, calculated as if the member were age 55 or their age (if older) at the time of their death
Five Year Survivor Pension as a monthly payment of the unreduced vested benefit payable for five years or as a lump sum payment equal to 85% of your vested benefit times 60
Lump Sum Death Benefit calculated by multiplying number of Benefit Units by $500.00

28. Pre-Retirement Death Benefit (continued)
If at your date of death you have NOT retired are Vested and Not Married:
Five Year Survivor Pension as a monthly payment of the unreduced vested benefit payable for five years or as a lump sum payment equal to 85% of your vested benefit times 60
Lump Sum Death Benefit calculated by multiplying number of Benefit Units by $500.00

29. Pre-Retirement Death Benefit (continued)
If at your date of death you have NOT Retired and are Not Vested:
Lump Sum Death Benefit calculated by multiplying number of Benefit Units by $500.00
That concludes the Pension portion of our presentation
We will now go over your Retiree Health & Welfare Benefits

30. Health Coverage at the Time of Your Retirement
To be eligible for Welfare Coverage as a Retiree:
Must be covered by the Plan at the time you retire and must have ten consecutive years of coverage immediately preceding retirement date
Must be receiving a Local 26 Pension; or
Receiving Social Security retirement benefits (if you are unable to receive Local 26 Pension benefits)

31. Health Coverage at the Time of Your Retirement
Details on Retiree Health Coverage:
Must pay for retiree coverage and premiums can be withheld from monthly pension payment
You begin paying for retiree health coverage approximately 6 months from the month you last worked, depending on your banked hours
Coverage includes prescription, dental, and vision
Death benefit is reduced from $25,000 to $6,000

32. Premiums for Retirees Under 65 (Not Eligible for Medicare)
Current monthly rates are:
Age at Retirement
Monthly Rate Per Person
Under 60
$200.29
60 – 64
$145.16
Maximum $ per month per family

33. Health Coverage for Retirees Age 65 or Over (Eligible for Medicare)
Supplemental to Medicare Benefits
Current monthly premium is $73.50
Coverage includes, prescription, dental, and vision
Death Benefit is $6,000
At age 65, Medicare becomes your primary coverage if you are Retired. EWTF provides secondary coverage. You must have both the Part “A” (hospital) and Part “B” (physician) options under Medicare.
More information on Medicare is on pages 101 and 146 of your EWTF Guide to Your Family Health Benefit which is available online at

34. Health Coverage for Dependents of Retirees
Spouse
Dependent Child
Spouse does not have to be covered under Retiree’s coverage (but should be listed in the Plan records); can be added to or taken off at any time.
If Retiree predeceases spouse while spouse is not covered, spouse is not eligible for surviving spouse option.
Retiree may cover a dependent child if the child other-wise meets the eligibility rules under the Welfare Plan

35. If You Have Less than 10 Consecutive Years of Coverage Before Retirement
Can self-pay for coverage by:
Pay Back (20 or more years of coverage) or
Pay Ahead (10 or more years of coverage and age 62 or older)
Disability pension allows for either option
You must be covered by the Health Plan at the time you retire
If you have a break in coverage due to unemployment between 10/01/2008 and 12/31/2013 and you were available for work with Local 26, you may be eligible to apply to bridge the break.
In order to accumulate the necessary 10 continuous years of coverage you may “Pay Back” with 20 or more years of coverage or “Pay Ahead” with 10 or more years of coverage and age 62 or older.
If you are eligible to Pay Back, you self-pay the missing months of coverage. An example of a Pay Back calculation is provided.
If you are eligible to Pay Ahead, you self pay the monthly rate paid by contributing employers for working participants. Rate is subject to change.
Current rate is $ per month ($6.10 x 135 hours per month).
Retirees paying ahead are entitled to the same coverage as a working participant, including medical, dental, vision, prescription, and a $25,000 Death Benefit

36. Surviving Spouse Coverage
Three Months
Cost
Availability
Termination
Spouse (and other eligible dependents) must be covered at time of the member’s death
Entitled to coverage for three months without cost following the date of death
If continuing coverage is elected, the cost is $ per person per month for spouse & any eligible dependents – maximum $ per month per family
If spouse is eligible for Medicare, monthly cost is $73.50
Coverage not available if spouse has comparable plan
Coverage ends if spouse re-marries

37. Electrical Workers Local No. 26 Individual Account Plan
Type of Plan
Contributions
Investing
Contact: Fidelity Customer Service at
UNION ( ) or go online
This is the 3rd component of your Local 26 retirement benefits. This is a Defined Contribution Plan. Your contributions are made by your employer based on hours worked and you can choose where to invest your funds.

38. Eligibility to Collect IA Benefits
Retirement
Separation
Total and Permanent Disability
Hardship Withdrawal
Retirement – must be at least age 50 and permanently leave covered employment
Separation - No work hours for at least six full consecutive calendar months and you have not returned to covered employment
Total and Permanent Disability- unable to work in covered employment due to injury or illness that is likely to continue for the rest of your life
Hardship Withdrawals for unreimbursable medical expenses or eviction from or mortgage foreclosure on the principal residence. Max cannot exceed 75 percent of the account balance minimum amount will be $2, Limited to one time in a twelve (12) month period. Participant must show they received financial counseling through the Employee Assistance Plan for the Electrical Welfare Trust Fund.

39. When to Apply for an IA Retirement Benefit
Wait at least four months
Contact Fund Office for forms
Provide copies of documents
Wait at least four months after retirement to apply. This will allow time for all contributions to be received, posted by the Fund Office, and sent to Fidelity Investments.
You must contact the Fund Office for the proper forms to apply for your Plan Benefit
Must provide copies of divorce documents or death certificate, if you are divorced or widowed
You are NOT required to begin distributions until you reach age 70 ½
Should you die before receiving your account balance your spouse or named beneficiary will apply and receive it as a death benefit.

40. IA Distribution Options
Rollover Lump Sum Payment to an Individual Retirement Account (IRA)
Lump Sum Cash Payout
Combination cash payout and rollover to an IRA
Monthly installments (not to exceed 120 months)
Combination of lump sum and monthly installments
Life Annuity
You are strongly encouraged to meet with a financial advisor to help you make the decision that works best for you while protecting your investments
To find the closest Fidelity Investor Center call or go online to

41. Beneficiary Designation Form
Purpose
Update your form!
The purpose of this form is to allow you to name the person or persons to receive any benefits which may be payable upon your death under the provisions of the Electrical Welfare Trust Fund, the Electrical Workers Local No.2 6 Pension Trust Fund, and/or the Electrical Workers Local No. 26 Individual Account Plan.
Please remember that unless you update/change your designation your beneficiary will remain the same. It is very important that you change/update your beneficiary designation, if you have experienced a relationship change due to divorce, death, or ended a relationship with your beneficiary.

42. Member Portal
There is a website for members and their families that is easy, convenient, and secure.
Use your smartphone, tablet, or PC to review benefits information like Pension Credit, Pension Payment, Work History, Health Claims, Eligibility, Beneficiary Designation, and more.
Creating an account is simple, access is granted through self-authentication with just a few pieces of information so Sign Up Now! Look for the “quick link” on our page at EWTF.org.
If you need help signing up, directions can be found on the Create Account Page of the Member Portal or call the Fund Office.
Pension Benefit information is not yet available on the Member Portal.

43. Questions Robin Balint (240) 487-4524 Retirement Services Manager
Lovetta Farrar (301) Ext. 149
Sheree Dempsey (301) Ext. 118
Summary Plan Description (SPD) for all Plans available online at