Pension Fund- Break in Service

What Is A Break in Service?

Any year in which you do not earn a Year of Service constitutes a One Year Break in Service, except that, you will not have a One Year Break in Service if you prove to the Trustees’ satisfaction that you did not complete a Year of Service because you were totally disabled.

Also, the first One Year Break in Service which begins on or after January 1, 1986 and directly results from a "parenthood event" will be ignored if you prove to the satisfaction of the Trustees the reason for and duration of such absence. A "parenthood event" must be one of the following events: the Employee’s adoption of a child, the birth of the Employee’s child, the need to care for the Employee’s child immediately after birth or adoption, or the Employee’s pregnancy. Remember, this rule can avoid a Break in Service only in the year of the event or the next year, and the Break in Service year which is ignored does not count as a Year of Service for any purpose under the Plan.

What Happens If I Incur A Break in Service?

If you are already vested, a Break in Service will have no affect on your prior Years of Service.

If you have a One Year Break in Service before becoming vested, your previously credited Years of Service are canceled. However, a Break in Service may be temporary and your prior Years of Service may be recovered if you return to work in the industry and earn additional Years of Service before your Break in Service becomes permanent.

What If My Break in Service Is Temporary?

The effect of a One Year Break in Service is eliminated if you earn a Year of Service before your Break in Service becomes a Permanent Break in Service. The Years of Service that were canceled by the One Year Break in Service are then restored to you.

When Does My Break In Service Become Permanent?

Please note: All of the examples given are intended for illustration only and do not represent any actual participant.

(a) Beginning January 1, 1987:

If you have earned 5 or fewer Years of Service, you will have a Permanent Break in Service if you have at least 5 consecutive One Year Breaks in Service, including at least one after 1986.

If you have earned at least 6 but less than 10 Years of Service, you will have a Permanent Break in Service if the number of consecutive One Year Breaks in Service equal or exceed your previously credited Years of Service. (This is known as the "Rule of Parity".)

For example:

1986 - 1988 You earned 3 Years of Service.

1989 - 1991You have 3 consecutive One Year Breaks in Service.

At the end of 1991 you would have 3 Years of Service. Although your consecutive One Year Breaks in Service (3) equaled your prior Years of Service (3), you did not have 5 consecutive One Year Breaks in Service, so you have not incurred a Permanent Break in Service.

For example:

1984 - 1990 You earned 7 Years of Service.

1991 - 1996 You incurred 6 consecutive One Year Breaks in Service.

1997 You earn a Year of Service.

At the end of 1997 you would have 8 Years of Service because your consecutive One Year Breaks in Service (6) were less than your previously credited Years of Service (7).

For example:

1985 - 1990 You earned 6 Years of Service.

1991 - 1996 You have 6 consecutive One Year Breaks in Service.

1997 You earned a Year of Service.

At the end of 1997 you would have 1 Year of Service and your prior Years of Service would have been permanently forfeited since you had at least five (5) one-year breaks and your consecutive one-year Breaks in Service (6) equaled your previous credited Years of Service (6).

(b) From January 1, 1976 through December 31, 1986, you would have a Permanent Break in Service if your consecutive One Year Breaks in Service equal or exceed your previously credited Years of Service under the "Rule of Parity."

For example:

1975 - 1977 You earned 3 Years of Service.

1978 - 1980 You incurred 3 consecutive One Year Breaks in Service.

1981 You earned a Year of Service.

At the end of 1981 you would have 1 Year of Service and your prior Years of Service would have been forfeited since your consecutive One Year Breaks in Service (3) equaled (or exceeded) your previously credited Years of Service (3).

(c) Prior to January 1, 1976, the Plan had another rule with respect to Breaks in Service: if you did not incur more than 5 Breaks in Service in a row, your prior Years of Service remained credited to you when you returned to Covered Employment. This is the basic rule for Breaks in Service prior to 1976. However, if the Rule of Parity described in paragraph (b) is more favorable to you than the basic rule with respect to Years of Service before 1976, you will be given credit for the prior Years of Service which you would lose under the basic rule only for purposes of determining your benefit, but not for purposes of determining whether you have completed the Years of Service needed to become vested in your benefit before Normal Retirement Age.

Can I Ever Count Service Outside of Covered Employment Under the Plan?

Solely for purposes of avoiding a One Year Break in Service and achieving vested status, you may count certain non-covered employment for a contributing Employer which occurs immediately before or after, and for the same Employer as, your Covered Employment. For example, if you worked for a contributing Employer in a position which was not covered by the collective bargaining agreement immediately before or after you worked for the same Employer as a steamfitter in Covered Employment. If you think you are entitled to credit for any non-covered employment, please contact the Fund Office as soon as possible.