What Is a Break in Service?
When Do I Have a Break in Service?
Are There Any Exceptions to the Break in Service Rules?

What Is a Break in Service?

Until you have met the requirements for a pension, it is possible for you to lose your pension credit and years of vesting service. This can happen if you have a permanent break in service.

A break in service occurs if you are not credited with a minimum number of hours of employment during a specified period of time. In general, when you have a break in service you are no longer a participant in the Plan. If you have a permanent break in service, your pension credit and years of vesting service earned before the break are cancelled.

However, if you have earned the right to a pension, you may leave the coverage of the Plan without having a break in service or losing your pension rights.

When Do I Have a Break in Service?

1. Before March 1, 1971 you had a permanent break in service if you had less than 15 pension credits and you did not earn at least 1/4 of pension credit in six consecutive calendar quarters, or in 12 consecutive calendar quarters if you had 15 or more pension credits.
   
   For example, you had five (5) pension credits as of January 1, 1965. You did not earn additional pension credit until January 1, 1967. You had a permanent break in service because you did not have 15 or more pension credits as of January 1, 1968 and you did not earn at least one-quarter (1/4) of a pension credit in six consecutive calendar quarters.
   
   
2. Between March 1, 1971 and December 31, 1975, you had a permanent break in service if you did not earn at least 1/4 of a pension credit in any six consecutive calendar quarters. However, if you had a permanent break before January 1, 1976, but then returned to covered employment and earned at least 1/4 of a pension credit in each of 12 consecutive calendar quarters after January 1, 1973, your pension credit that was forfeited because of the permanent break will be reinstated.
   
   
3. On or after January 1, 1976, the break in service rule is different. The Federal law known as ERISA introduced “one year breaks” and “permanent breaks”. One-year breaks are temporary and can be repaired.
   
   One-Year Break in Service Between 1976 and 1990
   
   After 1975 and before 1990, you have a one-year break in any calendar year in which you do not earn at least 1/4 of a pension credit or do not have at least 435 hours of work in covered employment or continuous non-covered employment.
   
   One-Year Break in Service Beginning in 1990
   
   Beginning in 1990 you have a one-year break in any calendar year in which you do not earn 1/12 of a pension credit or do not have at least 435 hours of work in covered or continuous noncovered employment.
   
   Repairing a One-Year Break in Service
   
   You can repair a one-year break if, before having a permanent break, you earn a year of vesting service. This means you must work at least 870 hours in covered and/or continuous non-covered employment. When you repair a one-year break, your participation in the Plan, your pension credits and years of vesting service will be restored. When your service is restored, it is as if the one-year break had not occurred.
   
   Permanent Break in Service after 1975
   
   Unless you have met the requirements for a pension, if you have a one-year break in service and do not return to work, the number of your consecutive one-year breaks will be added together and you may have a permanent break as follows:
   
   
   1. After 1975 and before January 1, 1987, you have a permanent break when the number of your consecutive one-year breaks equal or exceed the number of your years of vesting service or full pension credits earned during the contribution period (whichever is greater).
      

      An example of how an employee has a permanent break in service on or after January 1, 1976 and before January 1, 1987 is as follows:

      Year	Hours of Work	Pension Credit	Years of Vesting Service	One-Year Breaks in Service
      1	1,500	1	1	0
      2	1,000	1	1	0
      3	90	0	0	1
      4	0	0	0	1
      Total	---	0	0	2

      
      This employee had 2 years of vesting service, 2 pension credits, and 2 one-year breaks. Because his consecutive one-year breaks equaled his years of vesting service (or pension credits) he has a permanent break which cancels all pension credit and years of vesting service that he earned.
      
      
   2. After December 31, 1986 you do not have a permanent break until your consecutive one year breaks equal five or, if greater, the number of your years of vesting service or full pension credits earned during the contribution period (whichever is greater). After July 1, 1999, you do not have a permanent break until your consecutive one-year breaks equal five or more.
      
      An example of a permanent break in service after December 31, 1986 follows:
      
      

      Year	Hours of Work	Pension Credit	Years of Vesting Service	One-Year Breaks in Service
      1	1,700	1	1	0
      2	1,800	1	1	0
      3	1,600	1	1	0
      4	50	0	0	1
      5	85	0	0	1
      6	90	0	0	1
      7	80	0	0	1
      8	40	0	0	1
      Total	---	0	0	5

      
      
      This employee has 3 years of vesting service, 3 pension credits, and 5 consecutive one year breaks. He has a permanent break in service at the end of Year 8 which cancels all of his pension credits and years of vesting service under the Plan. He did not have a permanent break in service after Year 6, even though he had 3 pension credits and 3 years of vesting service, and 3 one-year breaks, because after December 31, 1986 a permanent break cannot occur unless an employee has at least 5 consecutive one-year breaks in service. However, once an employee is vested in a pension from the Plan, he can’t have a permanent break in service.
      
      If this employee had returned to employment in Year 8 and completed at least 870 hours of work, his work record would look like this:
      
      

      Year	Hours of Work	Pension Credit	Years of Vesting Service	One-Year Breaks in Service
      1	1,700	1	0	0
      2	1,800	1	0	0
      3	1,600	1	0	0
      4	50	0	1	1
      5	85	0	1	1
      6	90	0	1	1
      7	80	0	1	1
      8	870	7/12	1	0
      Total	---	0	5	0

      
      
      In this example, the employee reinstated his participation, pension credit and years of vesting service by returning to employment and receiving credit for 870 hours in Year 8.
      Because the number of his consecutive one-year breaks was less than 5, he was able to repair his one-year breaks and restore his years of pension credit and years of vesting
      service.
      
      IMPORTANT: One-year breaks will not be added together unless they come one right after the other, without interruption by a calendar year in which you are credited with at least one minimum unit of pension credit (1/4 before 1990 and 1/12 after 1989) or 435 hours of work.

    

Are There Any Exceptions to the Break in Service Rules?

Yes. Certain periods of time will not be counted in determining if a break has occurred. These periods of time will be considered exceptions if your failure to earn years of vesting service or pension credit was caused by the following:

1. Disability (as defined in Subsection 4.5(a) of the Plan Document), up to a maximum of twelve consecutive calendar quarters for the period prior to 1990 (or a maximum of three consecutive calendar years for the period subsequent to 1989). You must notify the Trustees in writing of your disability.
   
   
2. Lack of sufficient work in covered employment if you have remained available for covered employment but none was available, for up to four consecutive calendar quarters.
   Continued membership in good standing with the Union will be used to prove the participant was available for work. (This grace period no longer applies on or after January 1, 1987).
   
   
3. Full-time employment as an elected officer or elected employee with the International Association or Union, or as Joint Apprenticeship Committee Coordinator for Apprentices (or as a full-time teacher) or as representative of the Energy Management Institute of Illinois.
   
   
4. Employment as a Sheet Metal Worker for up to three years with any of the following:
   
   City of Chicago, County of Cook, County of Cook Forest Preserve, Chicago Metropolitan Sanitary District, Chicago Board of Education or Chicago Park District or a governmental agency within the jurisdiction of the Union that is not a contributing employer to the Pension Fund.
   
   
5. Absence from work because of pregnancy, childbirth, adoption or infant care, up to a maximum of 501 hours of work in the year the absence starts or, if not required in that year to prevent a break, in the following year.
   
   
6. Absence from work, up to 12 weeks, that qualifies under the Family and Medical Leave Act of 1993 (FMLA).

 

Most important, you cannot have a break in service if you are eligible for any kind of pension under the Plan.