Sheet Metal Workers' International Association
Local Union No.73
Pension Welfare and Annuity Funds

 

 



ARTICLE 8. DEATH BENEFITS DESIGNATION OF BENEFICIARY

8.1. AMOUNT OF DEATH BENEFIT.
Upon the death of a Participant prior to the date his entire interest under the Plan is distributed, his designated Beneficiary, subject to Article 9.4 and the remaining provisions of Article 8, will be entitled to 100% of the Participant's Accounts described in Article 4.1. If a Participant dies before an allocation is made for the Participant's benefit which would otherwise have been made in accordance with the Plan provisions, the pre retirement death benefit will be the amount of Employer Contributions, as provided by the Plan provisions, for such Participant.

8.2 DISTRIBUTION OF DEATH BENEFITS.
Except for the pre retirement survivor annuity described in Article 8.3, and except to the extent an election is made by the Participant's designated Beneficiary to receive distribution in accordance with Article 9.2, if a Participant dies before distribution of his entire interest under the Plan begins, such interest will be distributed to his designated Beneficiary as soon as practical following receipt of notice of the Participant's death, subject to the remaining provisions of Article 8.

If the Participant's Surviving Spouse is the designated Beneficiary, the Surviving Spouse may elect to defer distribution until the later of (1) December 31 of the calendar year immediately following the calendar year of the Participant's death or (2) December 31 of the calendar year in which the Participant would have attained age 70 1/2 had he survived.

8.3 PRE-RETIREMENT SURVIVOR ANNUITY.
If a married Participant dies before his Annuity Starting Date and (i) a valid waiver, as described in Article 8.5, is not in effect on the date of the Participant's death, or (ii) if a Beneficiary other than the Participant's Spouse has not been designated by the Participant in accordance with Article 8.9, or (iii) if a Beneficiary other than the Participant's Spouse has been designated by the Participant, but the Participant's Spouse did not consent, in accordance with Article 8.6 to such designation, the death benefit will be paid to the Participant's Surviving Spouse in the form of a pre-retirement survivor annuity.

The pre-retirement survivor annuity will be a life annuity for the Participant's Surviving Spouse in an amount which can be purchased by the death benefit described in Article 8.1.

After the Participant's death, the Participant's Spouse may elect to receive, in lieu of the pre-retirement survivor annuity, any other form of payment provided under Article 9.2.

8.6 SPOUSAL CONSENT REQUIREMENTS.
Any waiver described, and any election under Article 9.1 (b) and Article 9.2 which is made by a married Participant will not be valid unless (a) the Participant's Spouse consents, in writing, to such waiver or election, as applicable, (b) the waiver designates a specific Beneficiary (or contingent Beneficiary) in accordance with Article 8.9, (c) the Spouse's consent acknowledges the effect of the Participant's election, (d) the election in Article 9.2 specifies a form of benefit elected, and (e) the Spouse's consent is witnessed by the appropriate named fiduciary, Trustee, Trust Fund staff, or a notary public.

If the required spousal consent cannot be obtained, the waiver or election, as applicable, will nevertheless be valid if it is established to the satisfaction of the appropriate named fiduciary or Trustee that such consent cannot be obtained because (i) there is no Spouse, (ii) the Spouse cannot be located (iii) the Spouse is held incompetent (in which case the consent of the Spouse's guardian, if any, even though the guardian is the Participant, will be required) or (iv) unless otherwise required by a qualified domestic relations order, as described in Code section 414(p), the Participant is legally separated or has been abandoned (within the meaning of local law) and the Participant has a court order to this effect.

Any consent required under this Article 8.6 and Article 9.1 will be valid only with respect to the Spouse who signs it, and, once given, will remain irrevocable until the Participant elects another form of payment in accordance with Article 9.2 or Article 9. 1 (b), or designates another Beneficiary in accordance with Article 8.9.

No spousal consent obtained under this Article 8.6 will be valid unless the Participant has received the required notice under Article 8.4 or Article 9.1 whichever is applicable.

8.7 LIFE EXPECTANCY.
Life expectancy and joint and last survivor life expectancy will be computed using the expected return multiples in Table V and VI of Section 1.72-9 of the Income Tax Regulations.

Life expectancy and joint and last survivor life expectancy will be computed using the attained age of the Participant (or designated Beneficiary, in the case of a benefit payable to the designated Beneficiary) in the applicable calendar year, as defined below, reduced by one for each calendar year which has elapsed since the date life expectancy was first calculated. If life expectancy is being re-calculated, the applicable life expectancy will be the life expectancy as so re-calculated. For purposes of this Article 8.7, "applicable calendar year" means the first distribution calendar year, and, if life expectancy is being recalculated, each succeeding calendar year.

For purposes of the Plan, a distribution calendar year is a calendar year for which a minimum distribution is required. The first distribution calendar year for distributions beginning after the Participant's death under Article 8 is the calendar year in which the particular distribution, as determined under Article 8.2, is required to begin. The first distribution calendar year for distributions under Article 9, and distributions under Article 8 which begin before the Participant's death, is the calendar year immediately preceding the calendar year which contains the Participant's required beginning date, as determined under Article 9.3

The amount of the minimum distribution required under Articles 8 and 9, will be based on the Participant's balance in his Account(s) described in Article 4.1, as of the last Valuation Date, as determined under Article
4.1, occurring in the calendar year preceding the distribution calendar year, as determined under this Article 8.7, plus any contributions and forfeitures allocated on behalf of the Participant after the Valuation Date but for such calendar year and minus any distributions made to the Participant after the Valuation Date.

For purposes of the immediately preceding paragraph, if any portion of the minimum distribution for the first distribution calendar year is made on or before the required beginning date, as determined in Article 9.3 but during the second distribution calendar year, such portion will be treated as though made in the first distribution calendar year.

Unless otherwise elected by the Participant or the Surviving Spouse, life expectancy of the Participant or the Surviving Spouse will be recalculated annually. The election, once made, will be irrevocable and will apply to all subsequent years. In the case of any other designated Beneficiary, life expectancy and joint and last survivor expectancy will be calculated at the time payment first commences without further recalculation.

8.8 DISTRIBUTIONS BEGINNING BEFORE DEATH.
If a Participant dies after the date distribution of his interest under the Plan has commenced, the death benefit, if any, payable to the Participant's designated Beneficiary, will be determined in accordance with the form of annuity under which the Participant's benefit is to be paid or is being paid. In any event, distribution of benefits, if any, to the designated Beneficiary must be made under a form which would result in a distribution at least as rapid as the method used on the date of the Participant's death.

8.9 DESIGNATION OF BENEFICIARY.
Each Participant will have the right to designate a specific Beneficiary or Beneficiaries in accordance with the provisions of this Plan and Code Section 401(a)(9) and the proposed regulations, for any death benefits payable under the Plan. If the Participant is married, the Participant's Spouse will automatically be the designated Beneficiary unless another Beneficiary is designated by the Participant with proper spousal consent, as provided in Article 8.6. The Spouse's consent will be limited to a benefit for a specific Beneficiary.

The designation will be given to the Trustees by the Participant in writing. Subject to the spousal consent requirements of Article 8.6, such designation may include the selection of any optional method of payment as may be available to the Participant under Article 9.2 and the normal form under Article 9.1(b). Upon receipt of such designation or change in designation, the Trustee will take appropriate action to make the designation or change in designation effective for death benefits payable under the Plan. If a Participant fails to designate a specific Beneficiary and he is not married, the Trustee will be designated as the Beneficiary or will be empowered to designate a Beneficiary or Beneficiaries on his behalf, but only from among the following, in the order named: (1) children, including legally adopted children, (2) parents, (3) brothers and sisters, (4) nephews and nieces, and (5) estate of the Participant. In determining such person or persons, the Trustee may rely upon an affidavit by a member of any of the classes or preference Beneficiaries. Payment based on such affidavit will be in full acquittance of any benefit payable under the Plan unless, before such payment is made, the Trustee receives written notice of a valid claim by some other person. If two or more persons become entitled to death benefits as successive preference Beneficiaries, they will share equally.

Any spousal consent required under this Article with respect to a Beneficiary designation will be irrevocable until the Participant designates another Beneficiary.

8.10 LIMITATION OF PAYMENT TO BENEFICIARY.
Except as provided in Article 9.4, payment to a Participant's Beneficiary under any one Article of this Article 8 will be in lieu of any other payment under this Plan.

8.11 DEATH OF BENEFICIARY BEFORE PARTICIPANT.
The interest of any Beneficiary who predeceases the Participant will vest in such Participant unless otherwise specifically provided by the Participant in a written notice received by the appropriate named fiduciary.

 
Home Welfare Fund Pension Fund Annuity Fund Forms Map & Directions Links