A Regular Pension
An Early Retirement Pension
A Disability Pension
A Deferred Pension
A Normal Retirement Age Pension
A Rule of 95 Pension
A Pro-Rata (Reciprocal) Pension
How Is the Amount of a Participant’s Pension Determined?
What Is the Amount of the Regular Pension?
Special Service Credits
Work for Certain Governmental Entities
Application of Benefit Increases
What Is the Amount of the Early Retirement Pension?
What Is the Amount of the Deferred Pension?
What Is the Amount of the Disability Pension?
What Is the Amount of the Rule of 95 Pension?
What Is the Amount of the Pro-Rata (Reciprocal) Pension?
What Happens if I Work in the Sheet Metal Industry for a Non-Signatory Employer?
Recovery of Previous Status

What Types of Pensions Are Provided by the Plan?

The Pension Plan provides several different kinds of pensions as follows:

1. A Regular Pension if:
   
   
   1. you are age 62 or over and
      
      
   2. you have at least 10 pension credits, including at least 4 pension credits earned after January 1, 1950 during the contribution period.
      
      
2. An Early Retirement Pension if:
   
   
   1. you are age 55 but not yet 62 and
      
      
   2. you have at least 10 pension credits, including at least 4 pension credits earned after January 1, 1950 during the contribution period.
      
      Caution: If you go to work in employment in the Sheet Metal Industry that is not covered by a Collective Bargaining Agreement between the employer and the Union after December 31, 1989, your early retirement date will be delayed six (6) months for each calendar
      quarter in which you perform at least one hour of such employment.
      
      
3. A Disability Pension if:
   
   
   1. you are totally and permanently disabled.
      
      
   2. you have at least 10 pension credits, including 4 pension credits earned after January 1, 1950 during the contribution period and one-half pension credit earned during the twelve-month period immediately preceding the time you became totally and permanently disabled.
      
      Caution: If you go to work in covered employment in the Sheet Metal industry that is not covered by a Collective Bargaining Agreement between the employer and the Union after December 31, 1989, you will not be
      able to receive a Disability Pension again. You may, however, be entitled to a Regular Early Retirement or Deferred Pension if you meet the requirements for such a pension.
      
      
4. A Deferred Pension if you have 5 years of vesting service. The Deferred Pension is payable at normal retirement age. If you were not a participant in the Plan as of July 1, 1999, you must return (or begin) work in covered employment and meet the participation requirements in order to qualify for a Deferred Pension with 5 years of Vesting Service. If you do not meet this requirement, you must have 10 years of Vesting Service to be entitled to a Deferred Pension.
   
   Caution: If you go to work in covered employment in the Sheet Metal industry that is not covered by a Collective Bargaining Agreement between the employer and the Union after December 31, 1989, the effective date of your Deferred Pension will be delayed six (6) months for each calendar quarter in which you perform at least one hour of such employment (but not past Normal Retirement Age).
   
   
5. A Normal Retirement Age Pension if:
   
   
   1. you are not eligible for one of the pensions described above, and
      
      
   2. you are a participant in the Plan at or after your normal retirement age. Participation before a permanent break in service is not recognized in determining whether an employee qualifies for this benefit.
      
      
6. A Rule of 95 Pension if:
   
   
   1. you separate from covered employment on or after April 1, 1997; and
      
      
   2. the sum of your attained age plus your Pension Credits equals or exceeds 95.
      
      
7. A Pro-Rata (Reciprocal) Pension if:
   
   
   1. you would be eligible for a pension if your total combined pension credit (pension credit under this Plan and other related Sheet Metal Worker Plans) is treated as service under the Sheet Metal Workers’ Local No. 73 Pension Plan, and
      
      
   2. you earned at least one pension credit under this Pension Plan based on employment after September 1, 1953, and you are eligible for a Pro-Rata Pension under this Plan and at least one other Sheet Metal Worker Plan.

How Is the Amount of a Participant’s Pension Determined?

A number of factors are taken into account in calculating the amount of a pension: a participant’s age (based on the number of months the participant is younger than age 62) and marital status, the number of pension credits the participant earned, the form of payment elected, and the date and benefit accrual rate when he or she separated from covered employment.

If a participant is married when he retires, his pension benefit will be paid in the form of a Husband-and-Wife Pension unless he and his spouse both reject this form. This rejection by both the husband and wife must be witnessed by a notary public and filed with the pension application at the Fund Office.

These examples assume the employee does not elect a Husband-and-Wife Pension, or any other optional form of payment under the Plan. The amount of a pension paid to an employee in the Husband-and-Wife form would be somewhat lower than the amounts shown in the examples. For more information on the Husband-and-Wife Pension. In addition, other optional forms of payment are available.

What Is the Amount of the Regular Pension?

The monthly amount of the Regular Pension is determined by multiplying your total units of pension credit that, added together, equal a full pension credit, up to the appropriate maximum pension credits recognized by the Plan by the benefit accrual rate in effect on the date you separated from covered employment as shown in the following table:

Date of Separation from Covered Employment	Accrual Rate per Pension Credit	Maximum Pension Credit
July 1, 1976 to August 31, 1978	$12.00	25
September 1, 1978 to August 31, 1980	$13.00	25
September 1, 1980 to January 31, 1981	$14.50	25
February 1, 1981 to January 31, 1982	$15.00	25
February 1, 1982 to June 30, 1983	$15.00	30
July 1, 1983 to June 30, 1984	$16.00	30
July 1, 1984 to March 31, 1985	$17.00	30
April 1, 1985 to March 31, 1986	$18.00	30
April 1, 1986 to March 31, 1987	$19.00	30
April 1, 1987 to March 31, 1988	$20.00	31
April 1, 1988 to December 31, 1989	$21.00	33
January 1, 1989 to March 31, 1989	$22.00	33
April 1, 1989 to March 31, 1990	$23.00	33
April 1, 1990 to March 31, 1991	$24.00	34
April 1, 1991 to March 31, 1992	$25.00	36
April 1, 1992 to March 31, 1993	$26.00	38
April 1, 1993 to June 30, 1993	$27.00	40
July 1, 1993 to March 31, to March 31, 1996	$29.00	40
April 1, 1996 to March 31, 1997	$31.00	Unlimited
April 1, 1997 to March 31, 1998	$35.00	Unlimited
April 1, 1998 to March 31, 1999	$37.00	Unlimited
April 1, 1999 to March 31, 2000	$39.50	Unlimited
April 1, 2000 to March 31, 2001	$42.50	Unlimited
April 1, 2001 and after	$43.50	Unlimited

 

If you left covered employment before July 1, 1976, your benefit amount will be determined based on the provisions of the Plan Document in effect at that time. For more information, contact the Fund Office.

Special Service Credits

For Calendar Years 2000 and after, you will also receive Special Service Credits. You earn Special Service Credits for hours of Work in Covered Employment in a Calendar Year on or after January 1, 2000, as follows:

Hours of Work in Covered Employment During Calendar Year	During Calendar Year
1,500 – 1,799	1
1,800 – 2,099	2
2,100 or more	3

 

The maximum number of Special Service Credits you can earn in a Calendar Year is 3. Special Service Credits are used to determine the amount of your Pension from the Plan, but don’t count toward eligibility for a Pension from the Plan. You will be entitled to earn Special Service Credits in calendar 2000 and subsequent Calendar Years.

The value of the Special Service Credits is determined by multiplying the number of Special Service Credits earned in a Calendar Year on or after January 1, 2000 by the Accrual Rate for Special Service Credit for that year as follows:

Calendar Year	Accrual Rate per Special Service Credit
2000	$3.00
2001	$3.50
2002	$3.50
2003	$5.50

Work for Certain Governmental Entities

If you leave Covered Employment to work for one of the following governmental entities (under collective bargaining agreements with the Union) you will have your pension calculated using the accrual rate in effect at the time you retire from such entity, and not at the time you separate from Covered Employment. Prior to April 1, 1998, the accrual rate used to calculate your pension was the rate in effect at the time you separated from covered employment under the Sheet Metal Workers’ Local 73 Pension Fund.

In order to qualify for this provision, you must:

1. have earned at least 20 Pension Credits under the Sheet Metal Workers’ Local 73 Pension Fund prior to being employed by the governmental entity;
   
   
2. have a minimum of one year of employment with one of the following governmental entities, under a bargaining agreement with the Union:
   
   - City of Chicago
   
   - County of Cook
   
   - County of Cook Forest Preserve
   
   - Chicago Metropolitan Sanitary District
   
   - Chicago Board of Education School Board
   
   - Chicago Park District, or
   
   - a governmental agency within the jurisdiction of Sheet Metal Workers’ Local 73 that is not a contributing employer to the Pension Plan;
   
   
3. work under a bargaining agreement between the Union and one of the above entities after December 31, 1996, and
   
   
4. first from the governmental entity (and then retire under the Sheet Metal Workers’ Local 73 Pension Plan) after December 31, 1996.

Application of Benefit Increases

The pension to which a Participant is entitled is determined under the terms of the Plan as in effect at the time the Participant separates from Covered Employment.

To determine the accrual rate per pension credit which applies to you, you must determine when you separated from covered employment. You separate from covered employment as of the end of a two consecutive calendar year period during which you do not earn at least one minimum unit of pension credit (1/12 of a pension credit beginning in 1990; before 1990, 1/4 of a pension credit).

However, if you have a separation from covered employment and subsequently return to covered employment, the accrual rate for your pension credits will be the rate in effect during your return provided you earn at least three pension credits during your return (one pension credit before 1990). If you earn less than the required number of pension credits during your return (three (3) beginning in 1990; one (1) before 1990), the accrual rate for pension credits earned before the separation will be the rate in effect when you separated and the accrual rate for the pension credits during your return will be that in effect for those credits.

If you have not previously separated from covered employment, the date of your retirement will be considered as such date for purposes of determining your accrual rate per pension credit. In the case of separation from covered employment before July 1, 1976, the accrual rate can be obtained from the Fund Office.

If the resulting amount of pension is not an exact multiple of $.50, it is rounded to the next higher $.50 multiple.

The following are examples of the monthly Regular Pension that would be payable if you retired with the pension credits described.

Examples of Regular Pension Amount

EXAMPLE 1: You retire on January 1, 2004 at age 62 with a total of 41 pension credits. Your accrual rate per pension credit is $43.50 because you had no previous separation from covered employment. You also earned twelve Special Service Credits (three each in 2000 through 2003). Therefore, your monthly Regular Pension is determined as follows:

$43.50	X	41 Pension Credits	=	$1,783.50
$3.00	X	3 Special Service Credits (2000)	=	9.00
$3.50	X	3 Special Service Credits (2001)	=	10.50
$3.50	X	3 Special Service Credits (2002)	=	10.50
$5.50	X	3 Special Service Credits (2003)	=	16.50
				$1,830.00

EXAMPLE 2: You retire on July 1, 2003 at age 62. You had a separation from covered employment as of January 1, 1991 at which time you had earned 20 pension credits. You subsequently returned to work in 2000 and earned three pension credits. Your pension amount is $610.50, the sum of $480.00 (20 pension credits x $24.00, the rate in effect January 1, 1991) and $130.50 (3 pension credits x $43.50, the rate in effect when you retire in 2003.) If you earn nine Special Service Credits (three in 2000, 2001 and 2003), your Regular Pension would increase to $640.50.

What Is the Amount of the Early Retirement Pension?

The monthly amount of the Early Retirement Pension is determined as follows:

Calculate the amount of the Regular Pension to which you would be entitled if you were age 62, based on your pension credits at the time of early retirement.

Reduce this by 1/2 of 1% for each full month by which you are younger than age 62 on the date your pension payments will begin.

The resulting figure is the amount of the Early Retirement Pension.


EXAMPLE 1: You retire on October 1, 2003 at age 59 and have a total of 30 pension credits. You also earned ten Special Service Credits (three each in 2000, 2001 and 2002 and one in 2003). If you had no prior separation from covered employment your Early Retirement Pension amount would be determined as follows:

Your Regular Pension amount would be $1,335.00 per month determined as follows:

1. $43.50	X	30 Pension Credits	=	$1,305.00
   $3.00	X	3 Special Service Credits (2000)	=	9.00
   $3.50	X	3 Special Service Credits (2001)	=	10.50
   $3.50	X	3 Special Service Credits (2002)	=	10.50
   $5.50	X	1 Special Service Credits (2003)	=	5.50
   				$1,340.50

Because you are age 59, you are 36 months younger than age 62. The Regular Pension benefit must be reduced by 1/2 of 1% for each month, or 18%.

1. 36 months x ½ of 1%	=	18%
   18% of $1,340.50	=	$241.29
   $1,340.50 minus $241.29	=	$1,099.21 (rounded to $1,099.50)

The resulting amount of the monthly Early Retirement Pension is $1,099.50.

EXAMPLE 2: You retire on March 1, 2003 at age 55 and 7 months with 23 pension credits and you separated from covered employment in January 1995.

Your Regular Pension amount would be $667.00 per month ($29.00 x 23 pension credits = $667.00).

You are 77 months younger than age 62, therefore, the benefit amount must be reduced by 1/2 of 1% for each month, or 38.5%.

77 months x ½ of 1%	=	38.5%
38.5% of $667.00	=	$256.80
$667.00 minus $256.80	=	$410.20 (rounded to $410.50)

 

What Is the Amount of the Deferred Pension?

The amount of the Deferred Pension is the same as the Regular Pension Amount. If you meet the requirements for an Early Retirement Pension described above, you can retire on a Deferred Pension as early as age 55 and your pension would be reduced using the same factors as for an Early Retirement Pension.

What Is the Amount of the Disability Pension?

The amount of the Disability Pension is the same as the Regular Pension depending upon the total pension credits you earned. There is no reduction in benefit amount because you are younger than 62. It is payable for life, assuming, of course, that you remain totally and permanently disabled. If approved by the Trustees, your Disability Pension will start no earlier than the first day of the month following the month in which your total and permanent disability began (or, if later, the first day of the month following the month in which the Fund Office received the completed application) and will continue during total and permanent disability for life.

You are considered totally and permanently disabled if you are totally unable, as the result of bodily injury or disease, to work as a Sheet Metal Worker or in other employment in the construction industry. You can be considered disabled and perform other types of work if you earn less than $1,000 per month. Your disability must be permanent for the remainder of your life.

Medical evidence of total and permanent disability is required. Medical evidence of total and permanent disability can consist of a Social Security Disability Award or other medical evidence acceptable to the Trustees. An employee will be required to be examined by a physician or physicians selected by the Trustees.

What Is the Amount of the Rule of 95 Pension?

The amount of the Rule of 95 Pension is the same as the Regular Pension. There is no reduction because the benefit begins earlier than age 62.

What Is the Amount of the Pro-Rata (Reciprocal) Pension?

The amount of the Pro-Rata (Reciprocal) Pension payable under this Plan is determined by multiplying the accrual rate in effect when you worked under this Plan by the pension credits earned under this Plan.

The Pro-Rata (Reciprocal) Pension amount payable under a Related Plan will be based on the accrual rates and number of pension credits earned under the Related Plan. If you have worked, or plan to work, under another Sheet Metal Worker Pension Plan, call or write the Fund Office for information.

What Happens if I Work in the Sheet Metal Industry for a Non-Signatory Employer?

If you perform work in the Sheet Metal Industry and such employment is not covered by a Collective Bargaining Agreement between the Union and the Employer, on or after January 1, 1990:

You will lose all Past Service credit for the purpose of calculating your benefit; provided, however, that this loss will not decrease the pension benefit you had accrued as of December 31, 1989.

The effective date of an Early Retirement or Deferred Pension, or resumption of payments in the event that you had been on pension and then returned to employment, will be delayed 6 months for any calendar quarter in which you performed one hour or more of such employment. An effective date of pension cannot be delayed under this provision beyond age 65.

You cannot retire under a Disability Pension.

In the event of your death before retirement, no Pre-Retirement Lump Sum Death Benefit will be payable to your beneficiaries.

Recovery of Previous Status

If you performed work in the Sheet Metal Industry not covered by a Collective Bargaining Agreement with the Union on or after January 1,1990, you can regain your previous status. To do so, you must return to Covered Employment with the Plan, and earn months of Pension Credit under the Plan that equal the number of calendar months in which you worked at least one hour in employment in the Industry that was not covered by a Sheet Metal Collective Bargaining Agreement.

This opportunity to restore previous status is available only once. In other words, if your performed work in the industry not covered by a Sheet Metal Collective Bargaining Agreement from January through November 1990 (11 months) and then returned to Covered Employment with the Plan and earned 11 months of credit, the conditions (1) through (4) described above will no longer apply to you. However, if you then returned to non-signatory employment in the Industry, these conditions would be applied to your
second period of such employment, without any further opportunity for repair.