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Pension Plan

 
Pension Eligibility And Amounts

General. This Article sets forth the eligibility conditions and amounts payable for the pensions provided by the Plan. (Eligibility conditions and amounts payable for Employees as defined in Subsection 1.11.b. are set forth in Article 5.) The accumulation and retention of Benefit Units and Credited Service for eligibility are subject to the provisions of Article 6. The pension amounts are subject to reduction on account of the Spousal Pension (Article 7). Entitlement of an eligible Participant to receive pension benefits is subject to the Participant's Retirement and application for a pension, as provided in Article 10.

Eligibility depends in most instances upon Credited Service, which is defined in Sections 6.02 and 6.03, and takes into account credited employment both before and after the Contribution Date. Pension amounts (and in some instances, eligibility) are based on accumulated Benefit Units, as defined in Section 6.04, which also take into account creditable employment both before and after the Contribution Date.

Regular Pension - Eligibility. A Participant who has retired shall be entitled to receive a Regular Pension upon meeting the following requirements:

  1. He or she has attained age 60 and is vested in accordance with Section 6.09, or
  2. He or she has attained Normal Retirement Age as defined in Section 1.17.

For a Participant who retires subject to an Alternative Schedule, a Regular Pension shall not be available until the attainment of Normal Retirement Age and the early retirement provisions under Section 3.05 pertaining to retirement under an Alternative Schedule shall apply.

For a vested Participant who retires subject to the Default Schedule, a Regular Pension is available at age 60 only as to amounts accrued before January 1, 2011. For amounts accrued on or after January 1, 2011, the early retirement provisions under Section 3.05 pertaining to retirement prior to Normal Retirement Age under the Default Schedule shall apply.

Amount of Regular Pension.

  1. Effective June 1, 2000 (and applicable only to benefits accrued after the most recent Separation from Covered Employment, if any, before that date), the amount of a Regular Pension with a Pension Effective Date on or after January 1, 2001, shall be the sum of the following Subsections (1), (2) and (3).
    1. $25.00 for each Non-Contributory Benefit Unit.
    2. $90.00 for each Contributory Benefit Unit earned prior to the January 1 coincident with or next following the increase in the Participant's Bargaining Unit Contribution Rate to more than $1.00 per hour. However, if the Participant's Bargaining Unit Contribution Rate increased to more than $1.00 per hour by November 1, 1976, the $90.00 shall be paid for each Contributory Benefit Unit earned by the Participant prior to January 1, 1976.
    3. With respect to the Participant's hours of work in Covered Employment after the January 1 coincident with or next following the increase in the Participant's Bargaining Unit Contribution Rate to more than $1.00 per hour:
      1. 5.25% of Contributions made for such hours of work prior to January 1, 2003; plus
      2. 4.2% of Contributions made for such hours of work on and after January 1, 2003 and prior to April 1, 2003; plus
      3. 1.5% of Contributions made for such hours of work on or after April 1, 2003 and prior to September 1, 2005; plus
      4. 1% of Contributions made for such hours of work on and after September 1, 2005.

      If the Participant's Bargaining Unit Contribution Rate increased to more than $1.00 per hour by November 1, 1976, the monthly amount of the Regular Pension earned for the 1976 Calendar Year will be based on 5.0% of the Contributions made with respect to the Participant's hours of work in Covered Employment in 1976.

      No Regular Pension benefits will accrue under this Subsection (3) in any Calendar Year in which the Participant works less than 500 Contributory Hours, except that his or her Regular Pension will be increased by the applicable percentage of all Employer Contributions paid on his or her behalf for work in a Calendar Year in which he or she earns a Year of Credited Service and in a Calendar Year in which his or her Pension Effective Date occurs. Disability hours which are credited under Section 6.05 shall be excluded unless such hours, plus any actual Contributory Hours worked, total 500 or more.

    Exception: For hours worked in Covered Employment during Calendar Years 1988, 1989, and 1990 for which the Contribution Rate of $1.00 or less is made, the benefit rate is 2% of Contributions made for such hours of work. For such hours of worked in Covered Employment during the period January 1, 1991 through May 31, 1998, the benefit rates are the benefit rates in effect for the Employees covered by Article 5 during the period in which such Contribution Rates of $1.00 or less are made. For such hours of work in Covered Employment during the period of June 1, 1998 through August 31, 2005, the benefit rate is 2.8% of Contributions. Beginning September 1, 2005, the benefit rate is 1% of Contributions made for such hours of work in Covered Employment.
  2. If there has been a separation from Covered Employment as defined in Section 6.08, the Regular Pension shall be a monthly amount equal to the sum of (1) and (2) below:
    1. For work in Covered Employment which follows the most recent Separation from Covered Employment before June 1, 2000, a monthly amount determined in accordance with Subsection (a) above.
    2. For work in Covered Employment which precedes the most recent Separation from Covered Employment before June 1, 2000, a monthly amount determined as follows:
      1. If the Separation from Covered Employment is prior to January 1, 1999, a monthly amount determined in accordance with the terms of the Plan in effect at the end of the separation period; or
      2. If the Separation from Covered Employment is after January 1, 1999,a monthly amount determined in accordance with the terms of the Plan in effect at the end of the Calendar Year in which the Participant last earned Credited Service based on Contributory Hours worked prior to such separation period.
  3. If there has been a Permanent Break in Service prior to January 1, 1989, for which Section 6.07.g. applies, the Regular Pension attributable to the period preceding the Permanent Break in Service shall be determined in accordance with the reinstatement provisions of that Subsection.
  4. For Pensions with a Pension Effective Date on or after January 1, 1991, the monthly Regular Pension amount shall not be less than the Minimum Monthly Benefit determined in accordance with Section 3.16
  5. Notwithstanding this Section 3.03, the amount of a Regular Pension shall not include Employer Contribution allocated to reduce the Plan’s funding deficit as described in Section 1.07 of the Plan.

Early Retirement Pension -- Eligibility. A Participant who is retired shall be entitled to an Early Retirement Pension upon meeting the following requirements:

  1. He or she has attained age 55 but not yet attained age 60;
  2. He or she has ten Years of Credited Service without a Permanent Break in Service, exclusive, however, of any Credited Future Service earned as a result of Continuous Non-Covered Employment; and
  3. He or she has worked at least 1,400 Contributory Hours after his or her Contribution Date.

Amount of the Early Retirement Pension. The Early Retirement Pension shall be a monthly amount determined as follows:

  1. The first step is to determine the amount of the Regular Pension to which the Participant would be entitled in accordance with Subsection 3.03.a., b., and c. if he or she had attained age 60 on the Pension Effective Date.
  2. The second step, to take account of the fact that the Participant is younger than age 60, is to reduce the first amount by 1/2 of 1% for each month that the Participant is younger than age 60 on the Pension Effective Date of his or her Early Retirement Pension.

For Pensions with a Pension Effective Date on or after January 1, 1991, the monthly Early Retirement Pension amount shall not be less than the Minimum Monthly Benefit determined in accordance with Section 3.16.

For a Participant who retires subject to an Alternative Schedule, Subsection 3.05.b. shall not be applicable as to any amounts accrued under the Plan and the amount of the Early Retirement Pension shall be actuarially equivalent to the age 65 benefit. Such actuarial reduction for early commencement shall not give rise to an early retirement subsidy.

For a Participant who retires on or after January 1, 2011 subject to the Default Schedule, Subsection 3.05.b. shall apply only as to amounts accrued before January 1, 2011. For amounts accrued on or after January 1, 2011, the amount of the Early Retirement Pension shall be actuarially equivalent to the age 65 benefit and such actuarial reduction for early commencement shall not give rise to an early retirement subsidy.

Disability Pension -- Eligibility. A totally and permanently disabled Participant shall be entitled to receive a Disability Pension upon meeting the following requirements:

  1. He or she has not attained age 60;
  2. He or she has ten Years of Credited Service without a Permanent Break in Service, exclusive, however, of any Credited Future Service earned as a result of Continuous Non-Covered Employment; and
  3. He or she has, as a result of actual work in Covered Employment, earned at least two quarters of Credited Future Service in the two consecutive Calendar Years prior to or including the Calendar Year in which he or she became disabled from working in the Resilient Floor Covering Industry.

In accordance with the Rehabilitation Plan, the Disability Pension is discontinued as of January 1, 2011 and shall not be available to any Participant who becomes totally and permanently disabled, as determined under the Plan, on or after such date. The Disability Pension shall continue for any Participant who applied for a Disability Pension as of January 1, 2011 and is entitled to such Disability Pension in accordance with the terms of the Plan.

Amount of the Disability Pension. The monthly amount of a Disability Pension with a Pension Effective Date on or after January 1, 2001 is equal to 90% of the monthly amount of the Regular Pension for which the Participant would be eligible if he or she had attained age 60 when he or she became disabled.

Total and Permanent Disability Defined. A Participant shall be deemed totally and permanently disabled only if the Trustees, in their sole and absolute judgment, find that:

  1. On the basis of such competent medical evidence as the Trustees may require to be shown, the Participant is totally and permanently unable, as a result of bodily injury or disease, to engage in or perform any of the duties of any occupation for which he or she may reasonably be fitted by reason of education, training or experience;
  2. Such bodily injury or disease is not due to such Participant's willful engagement in any illegal activity or occupation or the self-infliction of such or any other injury, or resulting from chronic alcoholism or the use of narcotics, unless the same were administered pursuant to the orders of a licensed physician; and
  3. Such disability will be permanent and continuous for the remainder of the life of the Participant.

The Trustees may, in their sole and absolute judgment and discretion, require or accept as proof of total and permanent disability a determination by the Federal Social Security Administration that the Participant is entitled to a Social Security Disability Benefit in connection with his or her Old Age and Survivors Insurance Coverage. The Trustees may at any time, or from time to time, require evidence of continued entitlement to such Social Security Disability Benefit, and may at any time, notwithstanding the prior granting of a Disability Pension under the Plan on the basis of such Social Security Disability Benefit, require that the Participant satisfy the provisions of sub-paragraphs a., b., and c. of this Section as a prerequisite to the continuance of the Disability Pension granted under the Plan.

If there is a difference in the medical evidence submitted through the Social Security Administration or by an individual doctor or doctors, the Fund may select at its own expense a doctor to examine the Participant and submit the report of his or her findings in order to assist the Trustees with a determination as to whether the Participant is totally and permanently disabled as defined above.

Disability Pension Payments.

  1. Payment of the Disability Pension shall not commence until five full calendar months of Total and Permanent Disability have elapsed. Payment of the Disability Pension will continue as long as the disabled Pensioner remains totally and permanently disabled as herein defined, except that upon becoming age 60, the disabled Pensioner shall have his or her benefits continued regardless of whether he or she remains totally and permanently disabled.
  2. If the Pension Effective Date for a Participant who is totally and permanently disabled as defined in Section 3.08 is after the date payment would have begun in accordance with paragraph a. above, the Participant shall be entitled to a one-time cash payment equal to the monthly amount of the Disability Pension, in the payment form elected, multiplied by the number of calendar months between the date determined in accordance with paragraph a. above and the Pension Effective Date.
  3. Disability Pension payments shall continue during a period of trial work in which the Pensioner is determined by the Social Security Administration to be entitled to a Social Security Disability benefit.

Recovery of a Disability Pensioner. If a Disability Pensioner loses entitlement to a Social Security Disability Benefit, or recovers from a disability prior to attaining age 60, such fact shall be reported by the Pensioner in writing to the Board within 31 days of the date he or she receives notice from the Social Security Administration or the date of such recovery, whichever occurs first. If such written notice is not provided, the Pensioner will upon subsequent retirement not be eligible for benefits for a period of 3 months following the date of his or her subsequent retirement. The 3-month waiting period shall not apply if the subsequent retirement occurs after Normal Retirement Age.

Overpayments attributable to Disability Pension benefits paid for any month or months for which the Pensioner was no longer entitled to such benefits shall be deducted from any subsequent pension payments to which the Pensioner becomes entitled. A deduction from a monthly benefit for a month after the Pensioner attains Normal Retirement Age shall not exceed 25 percent of the pension amount. If a Pensioner dies before recoupment of overpayments has been completed, deductions shall be made from the benefits payable to his or her beneficiary or surviving Spouse, as the case may be, subject to the 25% limitation on the rate of deduction.

Service Pension -- Eligibility.

  1. A Participant who has retired shall for benefits accrued prior to September 1, 2005 be entitled to receive a Service Pension upon meeting all of the following requirements:
    1. He or she has not yet attained age 60;
    2. He or she has at least 25 Years of Credited Service without a Permanent Break in Service exclusive of any Credited Service earned in Continuous Non-Covered Employment (Service Credit earned under a Related Plan shall not be counted toward meeting this requirement for a Service Pension, the provisions of Section 4.05, notwithstanding);
    3. He or she had not previously been in receipt of an Early Retirement Pension; and
    4. Contributions of $0.50 per hour or more had been made for at least six months for the retired Participant's Bargaining Unit.

    A Participant who retires and receives a Service Pension with respect to his benefits accrued prior to September 1, 2005 must also concurrently receive any benefits accrued between September 1, 2005 and his or her Pension Effective Date.
  2. A Participant who has retired shall for benefits accrued on or after September 1, 2005 be entitled to receive a Service Pension upon meeting all of the following requirements:
    1. He or she is at least age 50 but has not yet attained age 60;
    2. He or she has at least 25 Years of Credited Service without a Permanent Break in Service exclusive of any Credited Service earned in Continuous Non-Covered Employment (Service Credit earned under a Related Plan shall not be counted toward meeting this requirement for a Service Pension, the provisions of Section 4.05, notwithstanding);
    3. He or she had not previously been in receipt of an Early Retirement Pension; and
    4. Contributions of $2.50 per hour or more had been made for at least six months for the retired Participant's Bargaining Unit.
  3. Notwithstanding the above, a Participant who has retired and is subject to an Alternative Schedule shall be entitled to receive a Service Pension upon meeting one of the following requirements, provide he or she had not previously been in receipt of an Early Retirement Pension:
    1. Has accrued at least 60,000 Hours of Service that constitute Credited Service;
    2. Is at least age 55 but has not yet attained age 62 and has accrued at least 54,000 Hours of Service that constitute Credited Service; or
    3. Is at least age 62 but has not yet attained age 65 and has accrued at least 45,000 Hours of Service that constitute Credited Service.

    The service requirement under Subsections (1), (2) and (3) above must be exclusive of any Hours of Service constituting Credited Service prior to any Permanent Break in Service and exclusive of any Credited Service earned in Continuous Non-Covered Employment (Service Credit earned under a Related Plan shall not be counted toward meeting this requirement for a Service Pension, the provision of Section 4.05, notwithstanding).
  4. For a Participant who retires on or after January 1, 2011 subject to the Default Schedule, the Service Pension shall be available under the terms described in Subsections 3.12.a. and 3.12.b. only as to amounts accrued before January 1, 2011. Such Participant may continue to accrue Years of Credited Service on and after January 1, 2011.
  5. Notwithstanding the above, if a Participant (i) stops working in the Resilient Floor Covering Industry prior to December 1, 2010, (ii) is within 1 year of earnings 25 Years of Credited Service and (iii) otherwise meets the requirements under Section 3.12.a. and/or b. above, such Participant shall be entitled to a Service Pension in accordance with subsection a. and/or b., provided he or she applies for such Service Pension on or after April 1, 2010 and before December 1, 2010.

Amount of the Service Pension. The monthly amount of the Service Pension is determined in the same way as the monthly amount of the Regular Pension is determined.

Special Service Pension - Eligibility. A Participant who retired on or after January 1, 1997 shall be entitled to receive a Special Service Pension for benefits accrued prior to September 1, 2005 upon meeting the following requirements:

  1. He or she has at least 30 Years of Credited Service without a Permanent Break in Service exclusive of any Credited Service earned in Continuous Non-Covered Employment (Service Credit earned under a Related Plan shall not be counted toward meeting this requirement for a Special Service Pension, the provisions of Section 4.05 notwithstanding); and
  2. He or she has not previously received any type of pension under the Plan. (This requirement shall not apply to a Disability Pensioner who recovers from his or her disability and reenters Covered Employment before age 55).

A participant who retires and receives a Special Service Pension for benefits earned before September 1, 2005 must also concurrently receive any benefits accrued between September 1, 2005 and his or her Pension Effective Date.

For a Participant who retires subject to an Alternative Schedule, a Special Service Pension shall not be available as to any amounts accrued under the Plan. For a Participant who retires on or after January 1, 2011 subject to the Default Schedule, the Special Service Pension shall be available under the terms described in this Section 3.14 notwithstanding the Rehabilitation Plan, and such Participant may continue to accrue Years of Credited Service on and after January 1, 2011 for purposes of earning a Special Service Pension.

Amount of the Special Service Pension. The monthly amount of the Special Service Pension is:

  1. 110% of the Regular Pension amount calculated in accordance with Subsections 3.03.a., b., and c.; or
  2. 125% of the Regular Pension amount calculated in accordance with Subsections 3.03.a., b., and c. if the Participant, on his or her Pension Effective Date, is at least age 60 or has at least 35 Years of Credited Service without a Permanent Break in Service exclusive of any Credited Service earned in Continuous Non-Covered Employment (Service Credit earned under a Related Plan shall not be counted toward meeting this requirement, the provisions of Section 4.05 notwithstanding).

For Pensions with a Pension Effective Date on or after January 1, 1991, the monthly Special Service Pension amount shall not be less than the Minimum Monthly Benefit determined in accordance with Section 3.16.

Minimum Monthly Benefit. The Minimum Monthly Benefit for Pensions with a Pension Effective Date on or after January 1, 1991 shall be determined as follows:

  1. The first step is to determine the amount of the Regular Pension in accordance with Subsections 3.03.a., b., and c.
  2. The second step is to increase the amount in a. above by 25%.
  3. The third step is to reduce the amount in b. above by 6-2/3% for each year that the Participant is younger than age 65 but not younger than age 62 and by 5% for each year that the Participant is younger than age 62.

If the first month for which the Pension is payable does not coincide with the month of the Participant's birthday, the appropriate factor shall be determined on a pro-rata basis, taking into account the number of completed months since the Participant's last birthday.

For a Participant who retires subject to an Alternative Schedule, the Minimum Monthly Benefit shall not be applicable as to any amounts accrued under the Plan and the amount of the Early Retirement Pension shall be determined under Section 3.05.

For a Participant who retires on or after January 1, 2011 subject to the Default Schedule, the Minimum Monthly Benefit shall apply only as to amounts accrued before January 1, 2011. For amounts accrued on or after January 1, 2011, the amount of the Early Retirement Pension shall be determined under Section 3.05.

Non-duplication of Pensions. A person shall not be entitled to the payment of more than one type of pension under this Plan at any one time.

Pensioner Increases.

  1. The amount of a Pension in pay status as of December 1, 1988, shall be increased effective January 1, 1989, as follows:
    1. Pensions having an Effective Date which is prior to the date the Pensioner's Bargaining Unit Contribution Rate was increased to more than $1.00 shall be increased by 12%.
    2. Pensions having an Effective Date which is after the date the Pensioner's Bargaining Unit Contribution Rate was increased to more than $1.00 shall be increased by 6%.
  2. For Pensioners who retired between January 1 and December 31, 1989 with respect to hours of work in Covered Employment in the 1989 Calendar Year only, for which the Contribution Rate was more than $1.00, benefits shall be accrued at 2.65% of Contributions.
  3. The amount of a pension in pay status as of December 1, 1990 shall be increased effective January 1, 1991 by 1 1/2% for each full Calendar Year since the later of the Pension Effective Date or the date of Resumption of pension payments following the most recent Suspension of pension payments.

    For purposes of this Subsection c., a "Full Calendar Year" shall mean a Calendar Year in which twelve monthly pension payments were made.
  4. The amount of a pension in pay status as of December 1, 1991 shall be increased effective January 1, 1992 according to the following schedule:
    Monthly Pension Amount as of December 1, 1991 Benefit Increase
    Under $400.00 5%
    $400.00 but less than $800.00 3%
    $800.00 or more 1%
    A Pensioner who retires on or after January 1, 1991 must have at least 500 Contributory Hours in the two Calendar Years immediately prior to his or her Pension Effective Date in order to be eligible for the above increase.
  5. The amount of a pension in pay status as of December 1, 1993 shall be increased effective January 1, 1994 by 1 1/2% for each full Calendar Year since the later of the Pension Effective Date or the date of Resumption of pension payments following the most recent Suspension of pension payments.

    For the purposes of this Subsection e., a "full Calendar Year" shall mean a Calendar Year in which twelve monthly pension payments were made.

    A Pensioner who retired on or after January 1, 1991 must have at least 500 Contributory Hours in the two Calendar Years immediately prior to his or her Pension Effective Date in order to be eligible for the above increase.
  6. The amount of a pension in pay status as of December 1, 1994 shall be increased effective January 1, 1995 by $5.00; with the exception that the amount of a Surviving Spouse Pension shall be increased by 50%, 75%, or 100% of this amount, whichever is applicable to the type of Surviving Spouse Pension the Spouse is receiving.

    A Pensioner who retires on or after January 1, 1991 must have at least 500 Contributory Hours in the two Calendar Years immediately prior to his or her Pension Effective Date in order to be eligible for the above increase.
  7. The monthly amount of a pension in pay status as of December 1, 1996 shall be increased effective January 1, 1997 according to the following schedule:
    Total Benefit Units Earned Under this Plan as of December 1, 1996 Additional Monthly Benefit
    25 or more $52.50
    15 but less than 25 $35.00
    Less than 15 $17.50
    The monthly amount of a Surviving Spouse Pension shall be 50%, 75% or 100% of the above additional monthly benefit, whichever is applicable to the type of Surviving Spouse Pension the Spouse is receiving.

    A Pensioner who retires on or after January 1, 1991 must have at least 500 Contributory Hours in the two Calendar Years immediately prior to his or her Pension Effective Date in order to be eligible for the above increase.
  8. The 500-hour eligibility requirement set forth in paragraphs d., e., f., and g. above and in paragraphs 9, 10, 11, 12, 13 and 14 of Appendix I shall be waived for any Pensioner who demonstrates to the satisfaction of the Board of Trustees that he or she has refrained from employment with a non-contributing employer performing work described in Section 1.25.
  9. The monthly amount of a pension in pay status as of December 1, 1997 shall be increased effective January 1, 1998 according to the following schedule:
    Total Benefit Units Earned Under this Plan as of December 1, 1997 Additional Monthly Benefit
    25 or more $90.00
    15 but less than 25 $60.00
    Less than 15 $30.00
    The monthly amount of a Surviving Spouse Pension shall be 50%, 75% or 100% of the above additional monthly benefit, whichever is applicable to the type of Surviving Spouse Pension the Spouse is receiving.

    A Pensioner who retires on or after January 1, 1991 must have at least 500 Contributory Hours in each of the two consecutive Calendar Years immediately prior to or including the Calendar Year in which his or her Pension Effective Date occurred in order to be eligible for the above increase.
  10. The monthly amount of a pension in pay status as of December 1, 1998 shall be increased effective January 1, 1999 according to the following schedule:
    Total Benefit Units Earned Under this Plan as of December 1, 1998 Additional Monthly Benefit
    25 or more $135.00
    15 but less than 25 $90.00
    Less than 15 $45.00
    The monthly amount of a Surviving Spouse Pension shall be 50%, 75% or 100% of the above additional monthly benefit, whichever is applicable to the type of Surviving Spouse Pension the Spouse is receiving.

    A Pensioner who retires on or after January 1, 1991 must have at least 500 Contributory Hours in each of the two consecutive Calendar Years immediately prior to or including the Calendar Year in which his or her Pension Effective Date occurred in order to be eligible for the above increase.
  11. The monthly amount of a pension in pay status as of May 31, 1999 shall be increased effective June 1, 1999 according to the following schedule:
    Total Benefit Units Earned Under this Plan as of
    May 31, 1999
    Additional Monthly Benefit
    25 or more $75.00
    15 but less than 25 $50.00
    Less than 15 $25.00
    The monthly amount of a Surviving Spouse Pension shall be 50%, 75% or 100% of the above additional monthly benefit, whichever is applicable to the type of Surviving Spouse Pension the Pension the Spouse is receiving.

    A Pensioner who retires on or after January 1, 1991 must have at least 500 Contributory Hours in each of the two consecutive Calendar Years immediately prior to or including the Calendar Year in which his or her Pension Effective Date occurred in order to be eligible for the above increase.
  12. The 500-hour eligibility requirement set forth in paragraphs i., j., and k. above and in paragraphs 15, 16, 17, 18 and 19 of Appendix I shall be waived for any Pensioner who demonstrates to the satisfaction of the Board of Trustees that he or she has refrained from employment with a non-contributing employer performing work described in Section 1.25. If the same 500-hour eligibility requirement is made applicable to other benefit improvements adopted on or after June 1, 2001, the same waiver shall be available unless the Plan specifically provides otherwise.

Merger Rules for the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan. To accomplish the merger of the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan into this Plan effective August 1, 2001, the following rules will apply:

  1. Assumption of Liabilities. This Plan assumes the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan's obligation to pay its benefits which were accrued prior to August 1, 2001. No benefits will accrue under that plan after August 1, 2001 but benefits already accrued will continue to vest as provided in that plan.
  2. Power to Amend. If after July 31, 2001, it is necessary to amend the terms of the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan to retain this Plan's tax qualification status, this Plan shall have full authority to make such amendments.
  3. Benefits Preserved. To the extent required by law or applicable regulations, the merger shall not eliminate or reduce the accrued benefit of any participant under the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan as of July 31, 2001, specifically including any early retirement benefit or retirement-type subsidy or optional forms of benefits applicable to such accrued benefits.

    Benefits accrued by participants under the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan during the period January 1, 2001 through July 31, 2001 will be accrued in accordance with the provisions of the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan or the Resilient Floor Covering Pension Plan, whichever produces the higher benefit amount.
  4. Vesting of Benefits Accrued Under Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan. The following rules shall apply with respect to Participants who have accrued benefits through July 31, 2001:
    1. Effective August 1, 2001, all Covered Employment under the Resilient Floor Covering Pension Plan shall be considered Covered Employment under the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan for vesting and break in service purposes.
    2. The benefits of a Participant will become 100% vested when the Participant accumulates 5 Years of Vesting Service if the Participant earned at least one Hour of Service on or after January 1, 1999. If the Participant did not earn at least one Hour of Service of or after January 1, 1999, the vesting schedule of the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan in effect on July 31, 2001 shall continue to apply to those benefits.
  5. Incorporation by Reference. In order to assure that all benefits earned under the Carpet, Linoleum and Soft Tile Local Union 1926 Pension Plan prior to August 1, 2001 are maintained, that plan, as it exists on July 31, 2001 is hereby incorporated into this Plan by reference to the extent necessary to preserve those benefits.
Eligibility And Pension Benefits For Corporate Contributing Employers And Their Non-Bargained Employees

Purpose. This Article sets forth the requirements for eligibility and amounts payable for pensions provided by this Plan for Employees described in Section 1.11.b. Except as specifically covered in this Article 5, all other provisions of this Plan shall apply.

Eligibility. To be eligible for any benefits provided by this Plan based on Benefit Units earned and/or Contributions made on his or her behalf while a Section 1.11.b. Employee, a Participant must have at least two Years of Contributory Credited Service based on hours worked as a Section 1.11.b. Employee.

Exception. A Regular Pension at Normal Retirement Age and a Surviving Spouse Pension as provided by Section 7.05 are payable based on the Benefit Units earned and/or Contributions made on a Participant's behalf while a Section 1.11.b. Employee regardless of the number of Years of Contributory Credited Service he or she earned as a Section 1.11.b. Employee.

Non-Contributory Credited Service and Benefit Units. If an Employee was a Participant in this Plan at any time prior to becoming a Section 1.11.b. Employee, such Employee shall not be entitled to Non-Contributory Credited Service or Non-Contributory Benefit Units under this Article 5 during such periods of prior Participation.

Regular Retirement Age. The Regular Retirement Age is age 60, subject to the provisions of the Rehabilitation Plan and its Schedules.

Amount of Regular Pension. Effective June 1, 2000 (and applicable only to benefits accrued after the most recent Separation from Covered Employment, if any, before that date), the amount of the Regular Pension effective on or after June 1, 2001, based on the Benefit Units earned and/or Contributions made on the Participant's behalf while he or she worked as a Section 1.11.b. Employee, shall be determined according to the following Subsections:

  1. $25.00 for each Non-Contributory Benefit Unit, up to a maximum of 10 Benefit Units; plus
  2. 5.25% of Employer Contributions made on the Participant's behalf for hours worked prior to January 1, 2003; plus
  3. 4.2% of Employer Contributions made on the Participant's behalf for hours worked on and after January 1, 2003 and prior to April 1, 2003; plus
  4. 1.5% of Contributions made for such hours of work on or after April 1, 2003 and prior to September 1, 2005; plus
  5. 1% of Contributions made for such hours of work on and after September 1, 2005.

Notwithstanding this Section 5.05, the amount of a Regular Pension shall not include Employer Contribution allocated to reduce the Plan’s funding deficit as described in Section 1.07 of the Plan.

No Regular Pension benefits will accrue under Subsections b., c., d. and e. in any Calendar Year in which the Participant works less than 500 Contributory Hours, except that such Participant's Regular Pension will be increased by the applicable percentages above for any Calendar Year in which he or she earns a year of Credited Service or in the Calendar Year in which his or her Pension Effective Date occurs. Disability hours which are credited under Section 6.05 shall be excluded unless such hours, plus any actual Contributory Hours worked, total 500 or more.

Level Income Option

Purpose. In lieu of the pension otherwise payable, a Participant entitled to a Regular or Early Retirement Pension may elect a Level Income Option in accordance with which he or she will receive a higher monthly amount for each month before the month in which he or she attains age 62 or 65, according to the age at which he or she expects to receive his or her Social Security Benefit, and reduced thereafter. The adjustment will be determined in such a way as to provide a pension before age 62 or 65, as nearly equal as possible to his or her combined retirement income after that age.

The Level Income Option is not available to a Pensioner in receipt of a Spousal Pension.

The Level Income Option is not available for benefits accrued on and after January 1, 1997.

Amount of the Level Income Option.

  1. The amount by which such a Participant's pension may be increased until age 62 or 65 for each $10 by which the increased pension is to be reduced thereafter shall be in accordance with the following table:
    Age Increased Pension Effective Age Reduced Pension Effective
      62 65
    55 $5.25 $3.85
    56 $5.73 $4.20
    57 $6.26 $4.58
    58 $6.84 $5.01
    59 $7.50 $5.49
    60 $8.24 $6.03
    61 $9.06 $6.64
    62 - $7.32
    63 - $8.10
    64 - $8.99
  2. If the first month for which the Level Income Option is payable does not coincide with the month of the Participant's birthday, the appropriate factor shall be determined from the above table on a pro rata basis, taking into account the number of completed months since the Participant's last birthday.
  3. Payment of the Level Income Option shall be subject to the following conditions:
    1. The Participant must have elected the Level Income Option in writing, in a form prescribed by the Trustees and filed with the Trustees, before the first month for which the pension is payable.
    2. The Option may not be revoked once benefit payment in the optional form has commenced.
    3. If the adjustment described above would reduce the monthly amount payable after age 62 or 65 to less than $20 a month, it shall not be applied and in such event, the benefit amount payable before age 62 or 65 shall be adjusted so that the benefit payable to the Participant on and after attainment of age 65 shall be at least $20 a month.
    4. The Option shall in no event be less than the Actuarial Present Value of a straight life annuity.

Level Income Option No Longer Available under Rehabilitation Plan. For a Participant who retires subject to an Alternative Schedule or to the Default Schedule, the Level Income Option shall not be available as to any amounts accrued under the Plan.

References to specific section(s) of the Plan can be found in the Official Plan Document under Plan Documents on this website.

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