Pension Benefits

Alaska Teamster-Employer Pension Plan

You do not begin to earn retirement benefits under the Pension Plan until you become a Participant.

These participation rules apply to your service after June 30, 2001. See the Appendices in the SPD for participation rules before that date.

You become a Participant the first day of the month after you receive credit for 250 Contributory Hours within one Plan Year. The Plan Year is July 1 through June 30.

You continue as a Participant by working at least 250 Contributory Hours each Plan Year. If you do not satisfy this requirement, you cease to be a Participant unless you are already vested.

You can also earn participation with “Contiguous Non-Covered Employment”. See Section 2.2 of the SPD for more information.

Vesting refers to the legal (i.e., non-forfeitable) right to receive a benefit under the Pension Plan. Until you are vested, you will have no right to receive any benefit under the Pension Plan.

Generally, you will begin earning credits toward your retirement benefit as soon as you become a Participant. However, you do not have a right to receive a benefit until you become vested.

These vesting rules apply to your service after June 30, 2001. See Appendix B in the SPD for vesting rules before that date.

You vest in your Normal Retirement Age Benefit according to your years of Vesting Service as shown in the following table:

For purposes of establishing an entitlement to Early and Rule of 85 Retirement Benefits, your Contributory Years of Service (see Section 4.3 of the SPD for a definition) will be used instead of these Vesting Service options:

See Section 3.2 of the SPD for descriptions of each Vesting Service option.

If you work less than 250 hours under the Plan during a Plan Year, you incur a Break-in-Service at the end of that Plan Year. If you are not fully vested, you cease to be a Participant at that time. You also forfeit the unvested portion of your Vesting and Benefit Service from any prior year and have no right to receive a benefit from the Pension Plan based on that service. See Section 3.4 in the SPD for more information.

The Normal Retirement Age under the Plan is the later of age 65 or your fifth anniversary of Pension Plan participation. However, under various circumstances earlier retirement is allowed.

The retirement rules in this section apply to Participants who retire on or after July 1, 2016. See
Appendix C in the SPD for additional retirement options and rules that may apply to you. The age you retire may impact the benefits you receive. In all cases you must be vested and you must apply for benefits before payments begin.

The Plan’s Normal Retirement Age for a Participant is the later of the following: age 65, or the fifth anniversary of the date you became a Plan Participant. You may retire with full benefits on the first of the month after you reach your Normal Retirement Age.

You may retire as early as age 52 with a reduced benefit. Unless you qualify for the Rule of 85 or meet the requirements for an unreduced benefit under an Early (age 63) Retirement, the benefit payments you receive will be reduced to account for commencement before Normal Retirement Age at 65. See Section 4.2 in the SPD for more information.

If you meet the Early Retirement requirements, you may retire at or after age 63 with unreduced benefits. If you meet the Rule of 85 requirements, you may retire as early as age 60 with unreduced benefits. If you meet all but the age requirement of the Early Retirement or Rule of 85 benefit, you may retire as early as age 52 with benefit payments reduced to account for commencement before age 63 (Early Retirement) or age 60 (Rule of 85 Retirement). To qualify for an Early or Rule of 85 Retirement, you must meet the requirements for that benefit, including the specified amount of Contributory Years of Service. See Section 4.3 of the SPD for more information.

If you do not work in Suspendible Employment (refer to Section 10 for further information) after your Normal Retirement Age (age 65) and you defer your retirement, your benefit payments will be increased to take into account the late starting date.

If you have separated from service (see Section 9, Separation from Service) or are more than a 5% owner of your employer, you must make application to start receiving your retirement benefit no later than April 1 of the year which follows the year in which you reach age 73.

Since the beginning of the Pension Plan in 1966, there have been several different formulas to calculate Plan benefits. Improvements in the formulas took place in 1997, 1999 and again in 2001. Reductions to the accrual rate occurred in 2003, 2006 and 2008. Therefore, depending on when you work in Covered Employment, your benefit may be made up of several different parts, which are calculated in different ways.

Your benefit is calculated as a Straight Life Annuity. This is a retirement benefit payable in equal monthly installments over your life only. If you receive a form of payment other than a Straight Life Annuity, your monthly benefit amount is actuarially reduced for that form of payment. The current accrual rate is 1.0% of Contributions required on your behalf. Prior accrual rates are shown in Appendix H in the SPD.

Other factors may impact how your benefit is calculated:

A retiring Participant is allowed to choose from several different forms of retirement benefits. Some options require spousal consent, if married. The amount of the monthly payment to you and/or your Spouse or Beneficiary will be different under the various forms of benefit payment.

When you apply for benefits, you must choose a form of payment. If you choose a form of payment which provides payments to a Beneficiary after your death, you will also name a Beneficiary.

If you are married on your Retirement Date, your Spouse must consent to any form of payment other than a Joint Annuity or payment to any Beneficiary other than your Spouse. Neither you nor your Spouse can revoke this consent. If spousal consent cannot be obtained, your form of payment will be defaulted to the 50% Joint Annuity.

Generally, benefit amounts are expressed as a Straight Life Annuity and benefits payable in other forms are actuarially reduced from the Straight Life Annuity form. In addition to a Straight Life Annuity, you may also choose:

See Section 7 of the SPD for explanations and examples of these different payment options. For benefits earned before July 1, 1990; see Appendix F in the SPD for available forms.

You must apply for benefits before payments will begin. After your application is approved, your benefit will commence as soon as practicable based on the commencement date you have requested. Your Retirement Date can be established up to three months before you provide your complete benefit application, if you have not worked in Suspendible Employment during that time.

Typically, if the Trust Customer Service Office has received all required documentation, your benefit payments will begin the first of the second month following the date you terminate your employment. Your first benefit received would be for two months paid retroactive to your established Retirement Date. If final hours are received after your retirement has been processed, a retroactive adjustment to your benefit is processed.

If your monthly benefit payment is $100 or less or the present value (lump sum payment value) of your retirement benefit is less than $3,500, you may elect (with spousal consent if you are married) to receive your benefit as a single lump sum. The Trust will determine the present value of your benefit and pay that amount to you.

In most situations, you cannot change your form of payment more than 90 days after your Retirement Date. There are, however, some limited exceptions. Any change you make will result in an adjustment in the amount of your benefit and your Beneficiary’s benefit.See Section 11 of the SPD for more information.

When you are eligible to retire, you must file a written application for benefits, on a form approved by the Trustees. You may not receive retirement benefits while working in Suspendible Employment depending on the number of hours worked.

Along with forms provided by the Trust Customer Service Office, you must submit a copy of all of the following items from your personal records:

You must have a Separation from Service before benefit payments begin. This means you have permanently terminated employment with your most recent Contributing Employer and with any other related business or trade (whether or not incorporated) that is a member of a controlled group or under common control with your employer through common ownership. See Section 9 of the SPD for more information.

If you work 40 or more hours per payroll month in Suspendible Employment after retirement and are not receiving benefits under Section 4.5, When Payments Are Mandatory, you will forfeit your right to benefits for those months. In addition, you will not receive the increase for deferred retirement explained under Section 4.4, Deferred Retirement if you work in Suspendible Employment 40 or more hours per payroll month beyond your Normal Retirement Age. See Section 10 of the SPD for more information.

Visit the Apply for Retirement Benefits page to learn more about beginning the application for benefits.

Death benefits are paid to your Spouse or other Beneficiary if you are vested and die before you retire. If you are married, your Spouse is automatically your Beneficiary. See Section 12 of the SPD for more information.

For additional information about the plan including what to do if your claim is denied, your rights under ERISA, disputed payments and other plan details please see Section 14 of the SPD or contact the Pension Trust Office.