• SPD Table of Contents
  1. Introduction
  2. Funding Improvement Plan
  3. Pension Plan Highlights
  4. Beginning Work
  5. Leaving Work
  6. Getting Married or Divorced
  7. Preparing for Retirement
  8. Receiving a Pension
  9. Choosing a Payment Option
  10. Returning to Work
  11. In the Event of Death
  12. Administrative Information
  13. Definitions
  14. Table 1: Early Retirement Pension Reduction Factors for Benefits Accrued on or Before May 31, 2018
  15. Table 1A: Early Retirement Pension Reduction Factors for Benefits Accrued on or After June 1, 2018
  16. Table 2: Deferred Pension Early Retirement Reduction Factors
  17. Table 3: Actuarial Equivalent Reduction Factors for Pension Before Suspension of Benefits

Administrative Information

Plan Information

Plan Name

I.B.E.W. Local 701 Electrical Workers General Pension Fund

Plan Number

001

Plan Identification Number

36-6455509

Plan Year

June 1 – May 31

Year for Benefit Calculation Purposes

January 1 – December 31

Plan Type

The Pension Plan is a retirement plan designed to provide income for you after you retire or become disabled or for your survivors after you die. The Plan is a defined benefit plan, which means a formula is used to calculate the amount of benefits.

Legal Plan Document

This booklet highlights the provisions of the official legal Plan Document governing the Pension Plan. All of your rights and benefits are governed by the official legal Plan Document, as are all final decisions. If there is a discrepancy between the information provided in this booklet and the official, legal Plan Document, the official, legal Plan Document will govern. If you wish, you may examine the legal Plan Document at the Fund Office or obtain a copy for yourself from the Plan Administrator for a reasonable copying charge.

Plan Sponsor

A Board of Trustees, consisting of Employer and Union representatives, sponsors the Plan. If you wish to contact the Board of Trustees, you may use the information listed below:

I.B.E.W. Local 701 Electrical Workers General Pension Fund
28600 Bella Vista Parkway
Suite 1110
Warrenville, Illinois 60555
(630) 393-1701
www.ibew701fbo.com

Plan Administrator

The Board of Trustees is also the Plan Administrator. It is the Plan Administrator’s responsibility to see that your questions are answered, that service and contribution records are maintained, that benefits are properly calculated and paid promptly, and that the Plan is operated in accordance with the legal documents governing it. You may write to the Plan Administrator at the address shown at the front of this booklet.

Agent for Service of Legal Process

The Board of Trustees is the agent for service of legal process concerning the Plan. Legal process may be served on any other member of the Board of Trustees at the Fund Office that is listed on the inside front cover of this booklet.

Plan Funding

Participating Employers pay for the entire cost of the Plan by contributing to the I.B.E.W. Local 701 Electrical Workers General Pension Fund. Contributions are based on Covered Employment as described in the Collective Bargaining Agreement between your Employer and your Union. The contributions are invested by the Board of Trustees and investment managers chosen by the Trustees. Pension Plan assets, including any investment earnings, are used to pay benefits and administrative expenses. No Participant contributions are allowed.

Collective Bargaining Agreements

The Plan is maintained pursuant to Collective Bargaining Agreements. On written request to the Plan Administrator at the Fund Office, you may obtain a copy of the Collective Bargaining Agreement under which you are covered and you can receive information as to whether a particular Employer participates in the Plan. Your Collective Bargaining Agreement and other documents under which the Plan is maintained are available for inspection at the Fund Office.

Pension Trust Assets and Reserves

All assets are held in a trust by the Board of Trustees and invested by the Board of Trustees and professional investment managers chosen by the Trustees.

Assignment of Benefits

The Plan is intended to pay benefits only to you or your eligible survivors. Your benefits cannot be used as collateral for loans or assigned in any other way, except in connection with a Qualified Domestic Relations Order (QDRO) issued by a court of law. See page 11 for more information about QDROs.

Maximum Pensions

The Internal Revenue Service has established a maximum monthly pension payable from a plan. While the maximum is quite high and will rarely apply, it is stated in the legal Plan Document. You will be contacted if the maximum affects you.

Eligibility and Benefits

The types of benefits provided and the Plan’s requirements with respect to eligibility, as well as circumstances that may result in disqualification, ineligibility, denial, or loss of any benefits, are described in this booklet. Your coverage by the Plan does not constitute a guarantee of your continued employment.

Plan Amendment and Termination

The Board of Trustees intends to continue the Pension Plan indefinitely, although it reserves the right to change or end the Plan at any time. The Plan will end automatically if every Employer withdraws from the Plan or as defined by law. Any remaining benefits will be paid as described in the legal Plan Document.

If an Employer withdraws from the Fund, you will be notified of how you may be affected. For more information, contact the Fund Office.

Sole Determination by Trustees

Only the Board of Trustees has the authority and discretion to determine your eligibility for benefits and your right to participate in the Pension Plan. The Board’s decisions will not be changed by a judge unless the Trustees are found to have abused their discretion. The Trustees have the authority, in their sole discretion, to exercise all the other powers specified in the Plan. The Trustees may, in their sole discretion, change or end the Plan in any manner or at any time permitted by the provisions of the Trust Agreement. If the Trustees change or end the Plan, you will be notified in writing.

Rights and Responsibilities

As someone who is or may be eligible for benefits from the Plan, you should be aware that the benefits are paid in accordance with Plan provisions from a Trust Fund that is used solely for that purpose. If you have any questions about or problems with benefit payments, you have the right to contact the Trustees who administer the Plan.

Plan Interpretation

Only the Board of Trustees is authorized to interpret the Plan described in this booklet. No Employer, Union, or other representative is authorized to interpret the Plan, speak for, or commit the Board of Trustees on any matter relating to the Pension Plan.

Any information you request about the Plan will be provided in writing and signed by the Trustees or the Fund Administrator. Under the Trust Agreement, the Trustees (or persons acting for them) have sole authority and discretion to make final decisions regarding any pension applications, any interpretation of Plan benefits, the Trust Agreement, and any other regulations, procedures, or administrative rules adopted by the Trustees.

Decisions of the Trustees (or of those acting for the Trustees) are final and binding on all persons dealing with the Plan or claiming a benefit from the Plan. If a decision of the Trustees or those acting for the Trustees is challenged in court, it is the intention of the parties to the Trust that such decision is to be upheld unless it is determined to be arbitrary or capricious.

All benefits under the Plan are conditional and subject to the Trustees’ authority under the Trust Agreement to change them. The Trustees have the authority to increase or decrease benefits, or change eligibility rules or other provisions of the Plan as they determine to be in the best interests of the Plan members in accordance with any applicable law.

Your ERISA Rights

As a Participant in the I.B.E.W. Local 701 Electrical Workers General Pension Fund, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan Participants are entitled to certain rights, as outlined in the following information.

Receive Information About Your Plan and Benefits

You have the right to:

• Examine, without charge, at the Fund Administrator’s office and at other specified locations, such as worksites and Union halls, all documents governing the Plan, including insurance contracts, Collective Bargaining Agreements, and a copy of the latest annual report (Form 5500 series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration (EBSA);

• Obtain, upon written request to the Fund Administrator, copies of documents governing the operation of the Plan, including insurance contracts, Collective Bargaining Agreements, and copies of the latest annual report (Form 5500 series) and updated Summary Plan Description (the Plan Administrator may make a reasonable charge for the copies);

• Receive a copy of the Plan’s annual funding notice, which the Plan Administrator is required by law to furnish each Participant; and

• Obtain a statement telling you whether you have a right to receive a pension at Normal Retirement Age (generally age 65) and if so, what your benefits would be at Normal Retirement Age if you stop working under the Plan now. If you do not have a right to a pension, the statement will tell you how many more years you have to work to earn a right to a pension. This statement must be requested in writing and is not required to be given more than once every 12 months. The Plan must provide the statement free of charge.

Prudent Actions by Plan Fiduciaries

In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of a plan. The people who operate your Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan Participants and beneficiaries. No one, including your Employer, your Union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your rights under ERISA.

Enforce Your Rights

If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision (without charge), and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of the Plan Documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.

If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court. However, you may not begin any legal action, including proceedings before administrative agencies, until you have followed and exhausted the Plan’s claims and appeals procedures. In addition, if you disagree with the Plan’s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in federal court. If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

Assistance with Your Questions

If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the EBSA, U.S. Department of Labor, listed in your telephone directory or:

Nearest Regional Office National Office

Chicago Regional Office Division of Technical Assistance and Inquiries Employee Benefits Security Administration Employee Benefits Security Administration
230 South Dearborn Street 200 Constitution Avenue, NW
Suite 2160 Washington, DC 20210
Chicago, IL 60604 (866) 444-3272
(312) 353-0900

For more information about your rights and responsibilities under ERISA visit www.dol.gov/ebsa

Protecting Your Pension

Your pension benefits under this multi-employer plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. A multi-employer plan is a collectively bargained pension arrangement involving two or more unrelated Employers, usually in a common industry.

Under the multi-employer plan program, the PBGC provides financial assistance through loans to plans that are insolvent. A multi-employer plan is considered insolvent if the plan is unable to pay benefits (at least equal to the PBGC’s guaranteed benefit limit) when due.

Law sets the maximum benefit that the PBGC guarantees. Under the multi-employer program, the PBGC guarantee equals a Participant’s years of service multiplied by (1) 100% of the first $11 of the monthly benefit accrual rate and (2) 75% of the next $33. The PBGC’s maximum guarantee limit is $35.75 per month times a Participant’s years of service. For example, the maximum annual guarantee for a retiree with 30 years of service would be $12,870 (30 years x $35.75 per month x 12 months).

The PBGC guarantee generally covers:

• Regular and early retirement pensions;

• Disability benefits if you become disabled before the Plan becomes insolvent; and

• Certain benefits for your survivors.

The PBGC guarantee generally does not cover:

• Benefits greater than the maximum guaranteed amount set by law;

• Benefits based on Plan provisions that have been in place for fewer than five years at the earlier of the:

  • Date the Plan terminates; or

  • Time the Plan becomes insolvent;

• Benefits that are not vested because you have not worked long enough;

• Benefits for which you have not met all of the requirements at the time the Plan becomes insolvent; or

• Non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay, and severance pay.

For more information about the PBGC and the benefits that it guarantees, ask your Plan Administrator or contact:

Pension Benefit Guaranty Corporation
Technical Assistance Division
1200 K Street, NW
Suite 930
Washington, DC 20005-4026

You may also call the PBGC at (202) 326-4000 (not a toll-free number). TTY/TDD users may call the federal relay service toll-free at (800) 877-8339 and ask to be connected to (202) 326-4000. Additional information about the PBGC’s pension insurance program is available through the PBGC’s Web site on the Internet at www.pbgc.gov

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