Pension – Special Rules
Frozen Benefit Rules – Computation Break In Service
How a Computation Break in Service Occurs
- After June 30, 1976, a Computation Break in Service generally occurs on the June 30th ending date of the second consecutive Plan Year in which a Participant does not work at least 435 Hours of Service in either of the two-consecutive Plan Years.
- Before July 1, 1976, a Computation Break in Service generally occurred on the June 30th ending date of the second consecutive Plan Year when a Participant did not have at least 360 hours of credit based on contributory or reciprocal service in either of the two-consecutive Plan Years.
The Effect of a Computation Break in Service
If you incur a Computation Break in Service, the portion of your benefit earned prior to the Computation Break is “frozen” under the terms of the Plan in effect when the Computation Break occurred (except that the frozen Early Retirement reduction factor will not apply, unless you also worked in Noncovered Glazing Service).
Benefits earned following a Computation Break in Service are added to the “frozen” benefit and are not subject to the prior Computation Break’s frozen benefit rules.
A Participant may incur multiple Computation Breaks in Service and have portions of his/her benefit calculated under different frozen benefit rules. Note, however, that your frozen benefit may be reduced further if the Rehabilitation Plan so provides.
One-Time “Cure” of a Computation Break in Service
A Vested Participant can “cure” having the Computation Break in Service frozen benefit rule once in his/her lifetime by returning to Covered Service, earning at least two Years of Vesting Credit and meeting one of the following two conditions:
- Subsequently earn Vesting Credit equal to or greater than the number of his/her prior One-Year Breaks in Service; or
- Subsequently earn at least six Years of Vesting Credit.
Once the Computation Break in Service frozen benefit is cured, the increased benefit will apply to the Participant.
Frozen Benefits Rules – Working in Noncovered Glazing Service
“Working in Noncovered Glazing Service” Defined
A Participant is considered to have worked in Noncovered Glazing Service if the work is:
- Performed in the jurisdiction of any local of the Glaziers, Architectural Metal and Glassworkers Union; and
- Performed on or after November 1, 1986, and on or after the Participant became eligible under this Plan or a reciprocal plan; and
- Performed for a company (without written authorization of the local union of the Glaziers, Architectural Metal and Glass Workers Union with jurisdiction over the company), which is doing the type of work covered by the terms of any collective bargaining agreement between any local union of the Glaziers, Architectural Metal and Glassworkers Union and any contributing Employer, but is not signatory to a collective bargaining agreement.
The Effect of Working in Noncovered Glazing Service
If a Participant works in Noncovered Glazing Service on or after July 1, 1994, his/her benefit will be frozen under the terms of the Plan in effect when he/she first engaged in such work.
How a Participant’s benefits are affected depends upon when the work in Noncovered Glazing Service occurs. Some effects may include not being entitled to receive an Early Retirement Benefit that is not reduced for age and not having the unreduced 100% Marital Annuity available. Specific limitations resulting from working in Noncovered Glazing Service are described elsewhere in this SPD and in the Plan Document. Note, however, that your frozen benefit may be reduced further if the Rehabilitation Plan so provides.
One-Time “Cure” of Working in Noncovered Glazing Service Frozen Benefits
A Vested Participant can cure having the Noncovered Glazing Service frozen benefit rule apply once in his/her lifetime by returning to Covered Service and subsequently earning at least six Years of Vesting Credit.
Once the benefit freeze is cured, the increased benefit will apply to the Participant.
Rehabilitation Plan Schedules
The Pension Protection Act of 2006 (“PPA”) introduced a number of changes in the funding and administration of qualified defined benefit retirement plans. Plans whose funded status is certified to be either “endangered” or “critical” are required to adopt either a funding improvement plan (for endangered plans) or rehabilitation plan (for critical status plans). Both funding improvement and rehabilitation plans contain one or more schedules consisting of increased employer contributions and/or benefit reductions designed to improve the plans funded status. Depending on the funding status of a plan in future years, the schedules may need to be updated. Every new or renewed collective bargaining agreement must contain the terms of one of the available schedules or a “default” schedule will automatically be imposed.
Based on the Glaziers Plan having been certified to be in critical status for the Plan Year beginning July 1, 2010, the Trustees adopted a Rehabilitation Plan containing two Schedules – a Recommended and a Default Schedule. The benefit reductions contained in the Schedules became applicable to Participants who did not retire by July 1, 2011. In fact, no one became covered by the Plan’s Default Schedule, and no one is covered by it as of the printing of the Summary Plan Description–2017 Edition.
Participants have been receiving annual notices concerning the Plan’s funding status and previously received a notice informing them of the Rehabilitation Plan Schedule benefit reductions described in the Summary Plan Description.
The rules used to determine how schedule(s) are applied to Participants and the specific Schedule of benefits is described as of the printing date of the Summary Plan Description. They may change in the future based on updates to the Rehabilitation Plan Schedules and/or Plan funding.
How Coverage Under a Schedule is Determined
Whether the Recommended Schedule, Default Schedule or prior Plan applies to an individual is based on the following:
- Retired Participants
Participants who retired prior to July 1, 2011 are not affected by the Rehabilitation Plan and neither Schedule applies to them (i.e., there are no changes in the benefits currently being paid to them).
However, Participants who retired on or after October 28, 2010 but prior to July 1, 2011 will be subject to the Plan’s Recommended Schedule if they return to work and have their benefits suspended prior to receiving 12 monthly pension payments.
- Active Participants Who Had Not Retired as of July 1, 2011
Participants who terminate covered employment after their Employer negotiates a collective bargaining agreement on or after October 28, 2010 containing terms consistent with either the Recommended Schedule or Default Schedule will have their benefits determined based on that Schedule. If their Employer fails to negotiate a collective bargaining agreement containing the terms of either Schedule, the Default Schedule will automatically be imposed on the Employees of that Employer 180 days following the expiration date of the collective bargaining agreement that was in effect on July 1, 2010. As of the date of the printing of the Summary Plan Description–2017 Edition, no one is subject to the Default Schedule.
Benefit reductions become effective when a Participant’s Employer’s collective bargaining agreement adopted after October 28, 2010 and containing terms consistent with one of the Schedules is adopted – but not earlier than July 1, 2011 or later than 180 days following the expiration date of a collective bargaining agreement in effect on July 1, 2010.
A Participant’s assigned Employer is the Employer for whom he/she has worked the most hours in Covered Service.
- Inactive Vested Participants Who Had Not Retired as of July 1, 2011
Participants who terminated Covered Service before July 1, 2011 and did not retire by that date will have their benefits determined under the Recommended Schedule.
The Effect of Being Covered Under a Rehabilitation Plan Schedule
The Rehabilitation Plan Schedules contain a number of benefit changes, including the reduction or elimination of certain “adjustable benefits” (as defined in the Internal Revenue Code). The specific benefit changes under the Rehabilitation Plan Schedules are described later in the Summary Plan Description.
Because no one is subject to the Plan’s Default Schedule, it is not described in the Summary Plan Description. Should you want information about that Schedule, you should contact the Plan Office.