Pre-Retirement Death Benefits

What happens if I die prior to retirement?

In the event of your death, if you have completed at least two years of service and you are not on deferred pension status, your beneficiary will be eligible to receive a lump sum distribution equal to the contributions made on your behalf up to a maximum of $55,000. However, if you have been married to the same spouse for at least the one-year period prior to your death and you are vested at the time of your death, benefits will be payable solely to your surviving spouse, in a manner described in the section entitled “Pre-Retirement Spouse’s Benefit”, regardless of your beneficiary designation. If there is a Pre-Retirement Spouse’s benefit payable, the maximum Death Benefit is $8,250.00.

It is important to know that if you did not have at least 450 hours of credited service in the two consecutive Plan years immediately prior to your death, you will not be considered an active participant and your beneficiary will not be eligible for the Pre-Retirement Lump Sum Death Benefit.

SPOUSE’S PRE-RETIREMENT DEATH BENEFIT

100% Joint and Survivor

In the event you die before retirement after earning a vested right to a future benefit, and were married to your spouse for at least one year prior to your death, your spouse will be entitled to the Spouse’s Pre-Retirement Death Benefit. The Spouse’s Pre-Retirement Death Benefit is a monthly benefit equal to the amount your spouse would have received had you retired having elected a 100% Joint and Survivor Annuity and died the next day. The annuity begins when you would have reached your earliest retirement date under the Plan, or, if you had already reached your earliest retirement date under the Plan, on the first of the month following your death. The annuity continues for the life of your spouse. The amount would be reduced, if applicable, for early retirement. It should be noted that the Pre-Retirement Spouse’s Benefit does not have a 60 month payment guarantee.

Lump Sum Payment

In addition to the Qualified Pre-Retirement Survivor Annuity, if you are not on Deferred Pension status your spouse will receive a lump sum death benefit equal to the contributions made on your behalf up to $8,250.00.

If you are not married or you are not married to the same spouse for at least one year prior to your death, the Death Benefit as described in the Pre-Retirement Lump Sum Death Benefit section above shall be payable to your designated beneficiary, provided you were credited with at least 450 hours of service within the two successive fiscal Plan years prior to your death.

If you are not on Deferred Pension status and your spouse elects not to receive the Qualified Pre-Retirement Survivor Annuity benefit, he/she will instead receive a lump sum distribution equal to the contributions made on your behalf up to a maximum of $55,000.

If you were vested and an active participant at the time of your death, your surviving spouse will be given the opportunity to elect either the Pre-Retirement Lump Sum Death Benefit or the Spouse’s Pre-Retirement Death Benefit (i.e., life annuity) as explained above.

The lump sum death benefit may be rolled over to an Individual Retirement Account (IRA). If paid directly to a spouse, or other beneficiary, the Fund is required to withhold 20% of the distribution in Federal Income Tax.

POST-RETIREMENT LUMP SUM DEATH BENEFITS

Effective July 1, 1999, the Plan began providing a $10,000 Lump Sum death benefit for all retired participants. This death benefit is payable to your named beneficiary at the time of your death.

The lump sum death benefit may be rolled over to an Individual Retirement Account (IRA). If paid directly to a spouse, or other beneficiary, the Fund is required to withhold 20% of the distribution in Federal Income Tax.