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Pension Plan

 
Death Benefits

Pre-Retirement Death Benefit. Upon the death of a Participant who meets the requirements described below, 36 monthly payments will be made to the Participant's Beneficiary in an amount determined in accordance with Section 3.03.

  1. The Participant must have accumulated at least 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
  2. The Participant's death occurred at least 24 months after his or her Contribution Date; and
  3. Application is made within 120 days following the date of the Participant's death.

If at the time the Participant dies, the Participant meets the requirements of both Sections 8.01 and 8.02, the Participant's Beneficiary shall receive the benefits as described in either Section 8.01 or 8.02, but not both.

The benefits provided by this Section shall not be payable if payments are due under the Husband-and-Wife Pension. However, if the Beneficiary under this Section 8.01 is the Participant's surviving Spouse and he or she is entitled to a Pre-retirement Surviving Spouse Pension under Section 7.05 he or she may elect to receive the death benefits provided by this Section 8.01 in lieu of the Surviving Spouse Pension payable under Section 7.05.

If a person entitled to receive payments following the death of the Participant dies before all benefits due have been paid, the remaining payments shall be made to such person's estate or heirs as provided in accordance with the applicable law of the State of California. If the commuted value of the remaining payments due is $5,000 or less, such payments shall be made in the form of a single lump sum.

In accordance with the Rehabilitation Plan, the Pre-Retirement Death Benefit under this Section 8.01 is discontinued as of January 1, 2011 and shall not be available upon the death of a Participant on or after January 1, 2011. The Pre-Retirement Death Benefit shall continue for any such benefit in pay status as of January 1, 2011.

Pre-Retirement Lump Sum Death Benefit. If an Employee dies before his or her Pension Effective Date, a lump sum death benefit will be payable to the Employee's Beneficiary in an amount equal to the total Employer Contributions paid on the Employee's behalf up to a maximum of $10,000.00, if the Employee meets the following requirements:

  1. He or she has at least two Years of Credited Service without a Permanent Break in Service; and
  2. He or she has, as a result of actual work in Covered Employment or Continuous Non-Covered Employment, at least two quarters of Credited Future Service in the two consecutive Calendar Years prior to the Calendar Year in which he or she died.

If at the time the Participant dies, the Participant meets the requirements of both Sections 8.01 and 8.02, the Participant's Beneficiary shall receive the benefits as described in either Section 8.01 or 8.02, but not both.

The benefits provided by this Section shall not be payable if payments are due under the Husband-and-Wife Pension. However, if the Beneficiary under this Section 8.02 is the Participant's Surviving Spouse, and he or she is entitled to the Surviving Spouse Pension under Section 7.05, he or she may elect to receive the death benefits provided by this Section 8.02 in lieu of the Pre-retirement Surviving Spouse Pension payable under Section 7.05.

In accordance with the Rehabilitation Plan, the Pre-Retirement Lump Sum Death Benefit under this Section 8.02 is discontinued as of January 1, 2011 and shall not be available upon the death of a Participant on or after January 1, 2011.

Pensioners' Benefits Guaranteed for Thirty-Six Months. If a Pensioner dies prior to having received 36 monthly payments, the remainder of the 36 payments will be paid in equal monthly installments to the Pensioner's Beneficiary, or the person or persons determined in accordance with Section 8.06 except that:

  1. The monthly payments made to a Beneficiary of a Pensioner who has waived all or a portion of his or her pension shall be paid to his or her Beneficiary in the full monthly amount to which the Pensioner was entitled. Any payments or portions of payments waived by the Pensioner shall be deemed to have been made to the Pensioner for the purpose of this Section.
  2. This benefit shall be payable only in the amount, if any, by which payments on a Level Income Option total less than 36 times the monthly amount to which the Pensioner would have been entitled had he or she not elected the Level Income Option. This benefit shall be payable in monthly installments equal to the amount to which the Pensioner would have been entitled if he or she had not elected such Option.
  3. The benefit provided by this Section shall not be payable if payments were due under the Husband-and-Wife Pension (Article 7) at the time of death.
  4. If an Early Retirement Pensioner dies before receiving 36 payments, the amount of the monthly benefit payable to his or her Beneficiary shall be in the amount of the Regular Pension to which the Early Retirement Pensioner would have been entitled had he or she attained at least age 60 on his or her Pension Effective Date.

If a person entitled to receive payments following the death of the Pensioner dies before all benefits due have been paid, the remaining payments shall be made to such person's estate or heirs as provided in accordance with the applicable law of the State of California. If the commuted value of the remaining payments due is $5,000 or less, such payments shall be made in the form of a single lump sum.

For a Participant who dies and is subject to an Alternative Schedule, the 36-month guaranteed benefit under this Section 8.03 shall not be available as to any amounts accrued under the Plan. For a Participant who dies on or after January 1, 2011 and is subject to the Default Schedule, the 36-month guaranteed benefit under this Section 8.03 shall be available only as to amounts accrued before January 1, 2011 and shall not be available as to amounts accrued on or after January 1, 2011.

Five or Ten-Year Guarantee Option. In lieu of the pension otherwise available, a Participant may elect to receive a lifetime pension with payments guaranteed for five or ten years, whereby if the Participant dies before receiving 60 or 120 pension payments, as the case may be, payments will continue to his or her Beneficiary until an aggregate of 60 or 120 payments have been made to the Pensioner and his or her Beneficiary.

When this Option becomes effective, the amount of the Participant's monthly pension is reduced by the appropriate factor in the tables of Five and Ten-Year Guarantee Option factors (Appendices F and G) attached and made part hereof.

The Five-Year Guarantee Option is not available for benefits accrued on and after January 1, 1997.

For a Participant who retires subject to an Alternative Schedule, the Five or Ten-Year Guarantee Option under this Section 8.04 shall not be available as to any amounts accrued under the Plan. For a Participant who retires on or after January 1, 2011 and is subject to the Default Schedule, the Ten-Year Guarantee Option shall be available only as to amounts accrued before January 1, 2011 and the Five-Year Guarantee Option shall be available only as to amounts accrued before January 1, 1997.

Designation of Beneficiary

  1. Subject to the provisions of Subsection b., a Pensioner or other Participant may designate a Beneficiary or Beneficiaries to receive any payments dues and payable but not actually paid prior to the death of the Pensioner or any benefits provided in accordance with Sections 8.01, 8.02, 8.03 or 8.04 by forwarding such designation on a form acceptable to the Board or to the Pension Fund Office. A Pensioner or other Participant shall have the right to change his or her designation of Beneficiary without the consent of the Beneficiary, but no such change shall be effective or binding on the Board unless it is received by the Board prior to the time any payments are made to the Beneficiary whose designation is on file with the Fund Office. Any payments due and payable but not actually paid prior to the death of the Pensioner or any benefits provided in accordance with this Article shall be paid to such designated Beneficiary. If such designated Beneficiary who had survived the Pensioner or other Participant, and is therefore entitled to the benefits and payments stated in Sections 8.01, 8.02, 8.03, or 8.04, dies prior to the receipt of one or more of the payments or benefits, such payments or benefits shall then be paid in accordance with the procedure provided in Section 8.06.
  2. A married Pensioner or other Participant who designated anyone other than his or her Spouse as Beneficiary shall be required to obtain his or her Spouse's consent to such designation or any change in such designation, in a form or manner prescribed by the Board.

Lack of a Designated Beneficiary. If no designated Beneficiary is alive at the time any benefits are payable as a result of a Participant's or Pensioner's death, any benefits due and payable but not actually paid prior to his or her death or any benefits provided under this Article shall be paid to the Spouse of the Participant or Pensioner if then living or, if there is no Spouse then alive, such payments may be made to the Participant's or Pensioner's estate, or to his or her heirs, as provided under applicable law of the State of California.

Benefit if Death Occurs During Qualified Military Service. If a Participant dies while performing qualified military service on or after January 1, 2007, the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service, except as provided under Section 6.06) provided under the Plan had the Participant resumed employment and then terminated employment on account of death.

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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