Sheet Metal Workers' International Association
Local Union No.73
Pension Welfare and Annuity Funds
May 23, 2005
Dear Active Participant:
The Board of Trustees is pleased to announce a change to the Plan that allows for fractional pension credits to be used in the calculation of your monthly pension benefit. Previously, only whole pension credits were used in the calculation. This change, which will give you credit for fractional pension credits, is effective for individuals that are actively participating in the Plan at the time of retirement and have an annuity starting date on or after March 1, 2005.
Example:
Jake is retiring with a normal pension on July 1, 2005 with 34.83 pension credits. Before this Plan change, the Plan provided that only the whole pension credits that Jake earned prior to retirement would be used to calculate his pension benefit, or 34 pension credits. With this Plan change, full pension credits plus any fractional pension credits earned are now used to calculate the pension benefit amount. In the following example, 34.83 pension credits, or all of Jake’s pension credits, are used in determining the pension calculation. This means that Jake gets an extra $36.50 per month with the Plan change.
| Prior to Plan Change | With Plan Change | |
|---|---|---|
Pension Credits Used |
34 |
34.83 |
Pension Calculation |
34 credits (x) $43.50 accrual rate |
34.83 credits (x) $43.50 accrual rate |
Monthly Pension |
$1,479.00 |
$1,515.50* |
* Benefit is rounded to the next higher $.50
If you have any questions regarding this change or how it affects your pension benefit calculation, please contact the Pension Department at 708-449-7373, ext. 7.
Sincerely,
Board of Trustees
Sheet Metal Workers’ Local 73 Pension Fund
Stanley F. Karczynski
John Delano
Michael E. Keeley
John P. Harmon, Sr.
Anthony Scavone, Jr.
Patrick J. Ludvigsen