Other Information
Appeals Procedure:
No Employee, Participant, Beneficiary, other person or entity will have any right or claim to benefits under the Plan, or any right or claim to payment from the Plan, except as specified by the Plan. Any dispute as to eligibility, type, amount or duration of benefits or any right or claim to payments from the Plan shall be resolved by the Board of Trustees under and pursuant to the provisions of the Plan. The decision(s) made by the Board of Trustees are final and binding subject only to such judicial review as may be in harmony with federal labor policy and only after applicable administrative remedies have been exhausted.
Any person or entity whose application for benefits under the Plan, claim to benefits or claim against the Fund has been denied will be notified in writing of the denial within 90 days after receipt of the application or claim. An extension of time, not exceeding 90 days, may be required by special circumstances. If an extension is required, notice of the extension, indicating what special circumstances exist and the date by which a final decision is expected to be rendered, will be furnished to the claimant or applicant prior to the expiration of the initial 90-day period.
The notice of denial will be in a manner reasonably expected to be understood by the claimant or applicant, the following: the specific reason for the denial, the specific reference to the pertinent Plan provisions on which the denial is based, the description of any additional material or information necessary for the claimant or applicant to perfect the claim and an explanation as to why such material and information is necessary and the appropriate information as to the procedures to be followed if the claimant wishes to submit the claim for further review.
Any such person or entity may petition the Board of Trustees for review of the denial. A petition for review must be in writing, stating in clear and concise terms the reason or reasons for disputing the denial. The petition must be accompanied by any pertinent or relevant document or material not already furnished to the Plan and shall be filed by the petitioner or the petitioner’s duly authorized representative with the Board of Trustees within 60 days after the petitioner receives notice of the initial denial.
On a showing of good cause, the Board will permit the petition to be amended or supplemented and will grant a hearing on the petition before a panel consisting of at least one Employer Trustee and One Employee/Participant Trustee. The panel shall receive and hear any evidence or argument that cannot be presented satisfactorily by correspondence. The failure to file a petition within such 60-day period or the failure to appear and participate in any timely scheduled hearing, will constitute a waiver of the claimant’s right to a review of the denial. However, the Board may relieve a claimant of any such waiver for good cause shown, provided application for such relief is made within one year after the date shown on the notice of denial.
The Board of Trustees will make its decision on the review of the denial no later than the meeting of the Board that immediately follows the Plan’s receipt of a petition for review. However, if the petition is received within 30 days before the date of such meeting, the decision may be made no later than the date of the second meeting following the Plan’s receipt of the petition for review. If special circumstances require a further extension of time, a benefit determination shall be made at the following meeting, but in no case later than the third meeting of the Board following the Plan’s receipt of the petition for review. If an extension of time is required, the Board of Trustees, before the extension commences, will notify the petitioner in writing of the extension, describing the special circumstances and the date which the benefit determination will be made. The notice of decision shall include specific reasons for the decision, written to be understood by the petitioner and with specific references to the Particular Plan provisions which the decision is based.
The Board’s decision will be provided to the petitioner in writing. The notice of decision will include specific reasons for the decision, written designed to be understood by the petitioner and with specific references to the Plan provisions on which the decision is based.
The denial of an application or claim as to which the right of review has been waived as well as any decision of the Board of Trustees with respect to a petition for review, will be final and binding on all parties including the applicant, claimant or petitioner of any person or entity claiming under the application, claim or petition, subject only to judicial review as provided in the first paragraph under the Appeals Procedure subheading. The provisions of this Section will apply to and include any and every claim for benefits from the Plan and any claim or right asserted under or against the Plan, regardless of the basis asserted for the claim or right, regardless of when the act or omission on which the claim or right is based occurred and regardless of whether or not the claimant or applicant is a “Participant” or “Beneficiary” of the Plan within the meaning of those terms as defined in ERISA.
Disputes as to Other rights Under the Plan
If a participant, spouse, or any other person to whom benefits may be payable under the Plan questions the manner in which that person’s rights under the Plan, other than those described under the general procedures above, have been determined, such person may make a written request to the Fund Office for review by the Trustees or their designated representative of the determination of those rights. The Trustees or their designated representative will act upon such request within 90 days after receipt of the request unless special circumstances require further time, but in no event later than six months after receipt. The Trustees or their designated representative will give written notice to the participant, spouse or other person setting forth, in a manner calculated to be understood by such participant, spouse or other person, the results of the review.
Non-Assignment of Benefits
You are not allowed to sign over, transfer, or alienate your Plan benefits to any other person in any way. However, if the Plan receives a domestic relations court order which meets certain technical requirements prescribed by Federal law, it will be required to pay the person designated in the order the amount of your benefit specified by the court. If you know of a court order that may affect your Plan benefit, you should contact the Fund Office immediately so that all legal requirements can be met. Also, if the Plan receives a federal tax levy on your account, it may be required to pay all or part of your benefit to the Internal Revenue Service pursuant to the levy. Further, your benefit is subject to legal process and, under certain circumstances, may be assigned, alienated, or attached pursuant to a court judgment or settlement including certain settlements or judgments ordered or required to be paid to the Plan if you commit bad acts involving Plan assets.
Incompetence or Incapacity of a Pensioner or Beneficiary
In the event it is determined to the satisfaction of the Trustees that a pensioner or beneficiary (including a spouse) is unable to care for his/her affairs because of mental or physical incapacity, any payment due may be applied, in the discretion of the Trustees, to the maintenance and support of such pension or beneficiary or to a person the Trustees find to be an object of the natural bounty of the pensioner or beneficiary, unless, prior to such application or payment, claim will have been made for such payment by a legally appointed guardian, committee, or other legal representative appropriate to receive such payments on behalf of the pensioner or beneficiary
Misstatements
In the event of any misstatement of fact(s) or furnished fraudulent or incorrect information affecting coverage and/or benefits under the Metal Trades Branch Local 638 Pension Fund, the true facts will be used to determine the proper coverage and the participant or qualifying dependent will be liable to repay the Fund for any excess coverage or benefits provided on the basis of the misstatement. The Trustees have sole and absolute discretion to determine eligibility for benefits and the type and amount of benefits to which a participant or beneficiary is entitled.
Overpayments
If a covered person has been paid benefits by the Pension Fund that either should not have been paid or are in excess of the benefits that should have been paid, the Fund may cause the deduction of the amount of such excess or improper payment from any subsequent benefits payable to such covered person or other present or future amounts payable to such person. The Fund, in its sole discretion, may also recover such amount by any other legal means. Each covered person hereby authorizes the deduction of such excess payment for such benefits or other present or future compensation payments.
Non-Duplication of Benefits
A Participant shall be entitled to only one under this Plan, except that a Disability Pensioner who recovers may be entitled pension to a different kind of pension and a Pensioner may also receive a pension as the Spouse of a deceased Pensioner.
In addition, a Participant who is eligible for more than one type of pension under this Plan shall be entitled to the one that gives him the highest monthly amount.
Plan Termination Insurance:
Certain benefits to which you are entitled under this “multiemployer” Plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal agency. A multiemployer plan is a collectively bargained pension arrangement involving two or more unrelated employers, usually in a common industry.
The maximum benefit that the PBGC guarantees is set by law. Only benefits that you have earned a right to receive and that cannot be forfeited (called vested benefits) are guaranteed. There are separate insurance programs with different benefit guarantees and other provisions for single-employer plans and multiemployer plans. Your Plan is covered by PBGC’s multiemployer program. Specifically, the PBGC guarantees a monthly benefit payment equal to 100 percent of the first $11 of the Plan's monthly benefit accrual rate, plus 75 percent of the next $33 of the accrual rate, times each year of credited service. The PBGC’s maximum guarantee, therefore, is $35.75 per month times a participant’s years of credited service.
Example 1: If a participant with 10 years of credited service has an accrued monthly benefit of $600, the accrual rate for purposes of determining the PBGC guarantee would be determined by dividing the monthly benefit by the participant’s years of service ($600/10), which equals $60. The guaranteed amount for a $60 monthly accrual rate is equal to the sum of $11 plus $24.75 (.75 x $33), or $35.75. Thus, the participant’s guaranteed monthly benefit is $357.50 ($35.75 x 10).
Example 2: If the participant in Example 1 has an accrued monthly benefit of $200, the accrual rate for purposes of determining the guarantee would be $20 (or $200/10). The guaranteed amount for a $20 monthly accrual rate is equal to the sum of $11 plus $6.75 (.75 x $9), or $17.75. Thus, the participant’s guaranteed monthly benefit would be $177.50 ($17.75 x 10).
The PBGC guarantees pension benefits payable at normal retirement age and some early retirement benefits. In addition, the PBGC guarantees qualified preretirement survivor benefits (which are preretirement death benefits payable to the surviving spouse of a participant who dies before starting to receive benefit payments). In calculating a person’s monthly payment, the PBGC will disregard any benefit increases that were made under a plan within 60 months before the earlier of the plan’s termination or insolvency (or benefits that were in effect for less than 60 months at the time of termination or insolvency). Similarly, the PBGC does not guarantee benefits above the normal retirement benefit, disability benefits not in pay status, or non-pension benefits, such as health insurance, life insurance, death benefits, vacation pay, or severance pay.
For additional information about the PBGC and the pension insurance program guarantees, go to the Multiemployer Page on PBGC’s website at www.pbgc.gov/multiemployer. Please contact your employer or Executive Administrator for specific information about your pension plan or pension benefit. PBGC does not have that information. See “Where to Get More Information About Your Plan,” below.
Termination of Plan:
Although the Trustees intend to continue the Plan indefinitely, they reserve the right to amend or end it. If the Plan is terminated, it will not affect your right to any benefit to which you have already become entitled. If the Plan terminates, you will be entitled to any benefit you have accrued to the extent then funded.
Plan assets will be allocated to benefit categories in an order. Beginning with the benefit category that has the first claim on Plan assets, payments will be made for:
• benefits for retirees or beneficiaries that are or could be on the pension rolls at the beginning of the 3 year period ending with the Plan's termination date at the lowest benefit level in effect during the 5-year period ending with the Plan's termination date;
• benefits generally guaranteed by the PBGC;
• benefits that are non forfeitable (vested) under the Plan, but not guaranteed by the PBGC;
• all other benefits under the Plan.
Assets will be allocated to the categories in the order indicated until assets run out.
Any remaining balance, after providing payments for the benefit categories listed above, will be applied in accordance with the Plan Provisions.
Miscellaneous Rules
Under the law, effective January 1, 2024, the Plan cannot pay an annual life annuity benefit in excess of $275,000 (as adjusted each year for the cost of living) beginning when the Employee would be entitled to full Social Security benefits. If benefits are paid earlier, say in the case of an Early Retirement Pension, the $275,000 amount is actuarially adjusted. This limit refers to the total of monthly benefits paid per year. These limitations are very unlikely to affect any Plan participant, but if for any reason you would be affected, the Fund Office will contact you.
Also, if 60% of the Plan’s accumulated benefits were to be earned by a group of "key" employees (generally officers, shareholders and highly compensated employees of an Employer), the Plan would become subject to certain accelerated vesting and minimum benefit rules. It is highly unlikely that these rules could ever affect the Plan, but should this ever change, affected participants will be notified by the Fund Office.
