Break in Service Credit
What is a break in Service?
Any Plan year in 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 quarter credit 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.
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 any one of the two Plan years immediately prior to your death, you are not considered an active participant in the Plan, and therefore, your beneficiary will not be entitled to the Pre-Retirement Lump Sum Death Benefit provided for in the Plan
When does my Break in Service become Permanent?
You will have a Permanent Break in Service if you have consecutive one-year Breaks in Service that equal or exceed five (5) or more consecutive one-year Breaks in Service
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 Plan year, a permanent Break in Service may be prevented. Specifically, your participation status with the Plan is restored and previously earned Years of Vesting Service and Pension Credits are restored.
For example:
2018 - 2021 You earned 4 Years of Service.
2022 - 2024 You incurred 3 consecutive One-Year Breaks in Service.
2025 You earn ¼ year of service credit.
At the end of 2025 you have 4¼ Years of Service. You are not affected by any One-Year Break in Service.
For example:
2018 - 2021 You earned 4 Years of Service.
2022 - 2027 You have 6 consecutive One-Year Breaks in Service.
2028 You earn a Year of Service.
At the end of 2028 you have 1 Year of Service. Your prior Years of Service would have been permanently forfeited because you had five (5) or more consecutive One-Year Breaks in Service.
Credit For Certain Periods of Military Service?
If you are on active military duty, you are entitled to certain rights in accordance with the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”). The “uniformed services” consist of the following:
• Army, Navy, Marine Corps, Air Force and Coast Guard
• Army Reserve, Naval Reserve, Marine Corps Reserve, Air Force Reserve and Coast Guard Reserve
• Army National Guard and Air National Guard
• Commissioned Corps of the Public Health Service
• Any other category of persons designated by the President in time of war or emergency
Under certain circumstances, the time you spend in military service may also count toward your earning Future Service credit, Years of Vesting Service, and avoiding a Break in Service, if you return to Covered Employment from qualifying military service and provided the following conditions are satisfied:
• You have reemployment rights under USERRA in order for the period of Military Service to be recognized.
• You must not have incurred a One-Year Break in Service at the time you entered Military Service.
• You must have earned at least one Hour of Service for which contributions were required to be made to the Plan within 30 days prior to the first day of Military Service.
• You must have become a Participant in the Plan before entering Military Service.
To qualify for USERRA’s protections, you must meet the following conditions:
• Notify your Employer that you have been called to service
• Leave service under conditions that are honorable
• Report back to Work or apply for reemployment within the period required by law after you complete your active duty as outlined in the following chart:
Length of Military Service |
|
Reemployment Deadline |
Less than 31 days
31 through 180 days
More than 180 days |
|
1 day after discharge (allowing 8 hours for travel)
14 days after discharge
90 days after discharge |
• Provide the Fund Office with acceptable proof of your service and discharge.
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 Executive Administrator within 30 days of the date it reemploys a veteran. Service must be terminated honorably, and you must provide proof of discharge including a copy of your “Certificate of Release or Discharge from Active Duty” form (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. Qualifying military service is service in the United States Armed Forces (the Army, Navy, Air Force, Marine Corps and Coast Guard, including service in their reserves), the National Guard or the Commissioned Corps of the public health service, or any other category designated by the President in time of war or national emergency.
In accordance with the law, the Plan provides protection for participants who, after leaving Covered Employment to serve in the military, die while in qualified military service. If you die while performing qualified military service in accordance with §414(u) of the Internal Revenue Code, the period of such qualified military service shall be treated as Vesting Service under the Plan.
If you die while performing qualified military service, your period of qualified military service shall be counted for purposes of determining whether you met the requirement of completing at least 450 Hours of Service in any one of the two Plan Years immediately before your date of death.
If you have any questions regarding USERRA or your return to Work after uniformed service, you should contact the Fund Office.