Break in Service Credit

What is a break in Service?

Any fiscal year during which you did not work at least 450 hours in covered employment is considered a one-year break in service.

Effective January 1, 1987, in order to avoid a break in service, if you are absent due to a “parenthood event” your absence will count as Hours of Service (up to a maximum of 450 Hours), provided you prove to the satisfaction of the Trustees the reason and duration of your 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. Hours credited for this purpose do not count towards accrual or vesting service or pension credit. Hours lost due to a leave of absence under the Family Medical Leave Act will not count as a Break in Service for purposes of determining eligibility and vesting.

What happens if I have a Break in Service?

If you incur a One-Year Break in Service, the Service Credit and Vesting Service you earned prior to the break will be cancelled. However, if you return to employment before you incur a “Permanent Break in Service” and earn at least a year of Vesting Service, the Service Credit and Vesting Service you earned prior to the one-year break in service will be restored.

If you incur a Permanent Break in Service, your Service Credit and Vesting Service are permanently cancelled, and will not be restored, even if you later return to covered employment.

It is important to note that once you become Vested, you cannot lose the Service Credit and Vesting Service you earned, regardless of any breaks in service.

Effective January 1, 1987 you will have a Permanent Break in Service if you have consecutive one-year Breaks in Service that equal or exceed 5, or your total Years of Vesting Service.

If you have earned at least 6 years 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”).

If you incur a break in service by working less than 450 hours in covered employment in each of two or more consecutive plan years, your benefit will be computed at the rate in effect at the time you last earned credited service.

If you are not credited with at least 450 hours of service in two successive fiscal Plan years prior to your death, you are not considered an active participant in the Plan, and therefore, your beneficiary will not be entitled to the Lump Sum Pre-Retirement Death Benefit provided for in the Plan.

Is my Break in Service Temporary?

If before you incur five (5) consecutive one year Breaks in Service, you return to work in the Industry and earn at least 450 hours of credited service within a fiscal year, a permanent Break in Service may be prevented.

For Example:

At the end of 2005 you have 4¼ Years of Service. You are not affected by any One-Year Break in Service.

For Example:

At the end of 2007 you have 1 Year of Service. Your prior Years of Service would have been permanently forfeited because you had 5 or more consecutive One-Year Breaks in Service.

What happens if I am called into military service?

Your active military service may count for purposes of earning Service Credit, Years of Vesting Service and avoiding a Break in Service.

Prior to 1994, certain periods of active U.S. Military Service may also count towards your Years of Service if you are engaged in Covered Employment immediately before such military service and return to Covered Employment within a year after discharge.

For Participants who return to Covered Employment from Military Service on or after December 12, 1994, The Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”) protects individuals with the same employment and benefit rights that would have accrued if their leave of absence in the uniformed services had not occurred. You are eligible for protection under USERRA if you are engaged in Covered Employment for one hour within the 30 days immediately prior to such military service and return to Covered Employment within the prescribed timeframe below:

You must provide oral or written advance notice (not required if prevented by military necessity circumstances) to the Fund Office. Your employer must notify the Plan Administrator within 30 days of the date it reemploys a veteran. Service must be terminated honorably and you must provide proof of discharge including Form DD-214.

You will be credited upon return with one twelfth of the total annual hours worked in the twelve months immediately prior to entry into active service, for the months served in the military. Military service is defined as the Armed Forces or reserves, Army or National Guard, Commissioned Corps of the public health service, or any other category designated by the President in time of war or national emergency.

If you die while in Qualified Military Service, the period your Qualified Military Service will be treated as Vesting Service and you will be considered an active participant for purposes of the Plan’s Pre-Retirement Lump Sum Death Benefit.