What Does Retirement Mean?
To What Extent Will I be Allowed to Work and Still Receive a Pension from the Plan?
If I Work in Disqualifying Employment, Will My Pension Be Recalculated When I Retire Again?
What Happens if I Continue to Receive My Pension Checks While I Am Working in Disqualifying Employment?
Where May I Find the Plan’s Rules Regarding Suspension of Benefits?
Do the Plan Benefits Affect My Social Security?
May I Receive Weekly Accidental and Sickness Benefits from the Sheet Metal Workers’ Local No. 73 Welfare Fund and Monthly Pension Benefits at the Same Time?
If I Owe Money, Can I Sign Over My Rights to My Pension?
What Is a Qualified Domestic Relations Order?
Can I Roll My Distribution Over Tax-Free to IRA or Other Qualified Plan?
Are There Limits On the Amount of Pension I Can Receive from the Plan?

What Does Retirement Mean?

To receive a pension from this Plan, you must be in retirement. Generally, retirement means that you have left covered employment and are not working in “disqualifying employment.” You may actually do certain types of work and still be considered retired, as long as that work is not what is called “disqualifying employment.”

To What Extent Will I be Allowed to Work and Still Receive a Pension from the Plan?

There are certain limits. Exactly what kind of work is disqualifying (that is, will cause a temporary loss of pension) depends on your age, as briefly described below. Also, if you are receiving a Disability Pension, employment will be limited. For more detailed information regarding work after retirement, refer to Section 6.8 of the Plan Document.

1. Before age 62. If in any month you are employed or self-employed in work regularly performed by Sheet Metal Workers or in any other building trades craft, you will lose your pension for that month.
   
   If you are under 62 and your work in the Sheet Metal Industry in employment that is not covered by a Collective Bargaining Agreement between the employment and Union, your pension will be suspended for six (6) consecutive months for every calendar quarter in which you worked one hour or more in that type of employment in addition to the other suspensions described in this Section.
   
   
2. After Age 62. You will lose your pension for any month in which you are employed or self-employed for more than 40 hours in a month as a Sheet Metal Worker in the State of Illinois labor market area.
   
   
3. After Age 70-1/2. As of April 1 of the calendar year following the year in which you reach 70-1/2 you will be considered retired, whether or not you are employed. This means that no types of employment are disqualifying after April 1 of the calendar year following the year in which you reach age 70-1/2.
   
   
4. After Disability Retirement. Before age 62, benefits will be suspended for each month in which you earn $1,000.00 or more from any employment or gainful pursuit, at or after age 62, benefits will be suspended as described in number 2 above.
   

The Trustees may request that the disability pensioner verify that his earnings do not exceed this limit. If a pensioner fails to respond to the Trustees’ request for earnings information within 30 days, the Trustees will presume the pensioner exceeded the earnings limit for the period requested and the pensioner will be disqualified for benefits for that period.

You are required to report within 15 days to the Fund Office any disqualifying work you undertake. If you do not notify the Fund Office within 15 days, your pension benefits will be suspended for an additional twelve months. If you are not sure whether or not a job you are considering is disqualifying employment, check with the Fund Office.

If I Work in Disqualifying Employment, Will My Pension Be Recalculated When I Retire Again?

If you work in disqualifying employment and earn a year of vesting service, your pension benefit will be recalculated when you resume retirement and will include additional earned. If you return to work for at least three months but do not earn one year of vesting service during your return, your pension will be adjusted for your age only, up to age 62.

In addition, if you originally retired with an Early Retirement Pension, your recalculated pension will be actuarially adjusted based on the special actuarial factors. For more information, please contact the Fund Office.

What Happens if I Continue to Receive My Pension Checks While I Am Working in Disqualifying Employment?

It is important for you to know that you are obligated to repay the pension amounts you receive while working in disqualifying employment. When you stop working and your benefits begin again, part of your payments will be withheld until the Fund has recovered benefits improperly paid to you. If you are age 62 or older, the Plan may withhold the first three monthly payments due to you plus up to 25% of the following monthly amounts (including payments to your spouse) if necessary to recover any overpayment. Prior to age 62, all checks due to you may be withheld by the Plan until the overpayment is recovered.

Where May I Find the Plan’s Rules Regarding Suspension of Benefits?

The Plan’s rules regarding suspension of benefits can be found beginning in Section 6.8 of the actual text of the Pension Plan document. The Plan’s rules are in accordance with Department of Labor regulations concerning suspension of benefits. Those regulations can be found in Section 253.203-3 of Volume 29 of the Code of Federal Regulations.

Do the Plan Benefits Affect My Social Security?

No. You are entitled to Social Security independently of this Pension Plan. Your Plan benefits are not affected by your Social Security benefits.

May I Receive Weekly Accidental and Sickness Benefits from the Sheet Metal Workers’ Local No. 73 Welfare Fund and Monthly Pension Benefits at the Same Time?

No. You are not entitled to receive a pension benefit for any month in which you receive weekly accident and sickness benefits from the Sheet Metal Workers’ Local No. 73 Welfare Fund.

If I Owe Money, Can I Sign Over My Rights to My Pension?

No. The Pension Plan contains a provision forbidding any assignment, pledging or otherwise disposing of your pension payments except in relation to a “qualified domestic relations order.” See the following section for a description of a qualified domestic relations order.

What Is a Qualified Domestic Relations Order?

A “domestic relations order” is a judgment, decree or order (including approval of a property settlement agreement) that (1) relates to the provision of child support, alimony payments or marital property rights to a spouse, former spouse, child or other dependent of a participant and (2) is made pursuant to a state domestic relations law.

A “domestic relations order” is a “qualified domestic relations order” (QDRO) if it creates or recognizes the existence of an alternate payee’s rights, or assigns to an alternate payee the right, to receive all or a portion of the benefits payable to a participant under a plan, specifies required information, and does not alter the amount or form of plan benefits.

An “alternate payee” is a spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits under a plan with respect to the participant.

Thus, if a qualified domestic relations order requires the distribution of all or part of your benefits under the Plan to an alternate payee, the Trustees are required to comply with the order.

Please note: An order is not considered qualified unless you and the alternate payee receive notification from the Plan. If you receive a domestic relations order, you should immediately forward it to the Fund Office. The order is not effective until it is filed with and approved by the Fund Office. It is processed under the same procedures that are used for benefit appeals (Appeals). It is very important that you follow these procedures as they affect the amount of benefit you will receive from the Fund when you retire.

For more information regarding QDROs, or to receive a copy of the Fund’s QDRO procedures free of charge, please contact the Fund Office.

Can I Roll My Distribution Over Tax-Free to IRA or Other Qualified Plan?

If you receive a lump sum payment from the Plan (including a Partial Lump Sum), you may roll over all or part of it to a traditional individual retirement account (IRA), or another eligible plan that accepts these contributions. If you do not choose to roll over this lump sum payment, federal law requires the Fund to withhold 20% of the total amount for federal tax purposes. There may be an additional 10% penalty if you are under age 59-½ at the time of your lump sum distribution.

Federal law requires the Fund Office to provide you with a timely “Special Tax Notice Regarding Plan Payments” which describes your rights and obligations regarding rollovers and withholding requirements. For more information, or a copy of this notice, please contact the Fund Office.

Are There Limits On the Amount of Pension I Can Receive from the Plan?

Federal law limits the total amount participants can receive from all retirements plans in which they participate. It is unlikely that these limits will affect the amount of pension you receive from this Plan, however, if you have any questions, please contact the Fund Office.