Logo
Profile Administrator Log In  



December 27, 2016 | Print | Site Map | Help
 

Pension Plan

 
Maximum Benefits

General Rule.

  1. Notwithstanding any other provision of this Plan, the annual Accrued Benefit relating to employment with a contributing Employer payable with respect to any Participant shall not exceed $160,000.
  2. This limit shall not apply to any benefit payable in a year that does not exceed $1,000 a year for each year in which the Participant earns a Year of Credited Service, up to a maximum of $10,000. If the Participant does not earn a Year of Credited Service, but earns a fraction, not exceeding 1.0, of a Year of Credited Service, the $1,000 amount for the year is reduced by multiplication by that fraction. This subsection b. shall not apply if the Participant has also been covered by an individual account plan to which the Employer contributed on the Participant's behalf, and such plan was maintained as a result of collective bargaining involving the same employee representative as this Plan. The special $10,000 exception set forth in this subsection b. applies to a Participant without regard to whether that Participant ever participated in one or more other plans maintained by an employer who also maintains this Plan, provided that none of such other plans were maintained as a result of collective bargaining involving the same employee representative as the multiemployer plan.
    1. The $160,000 limit in subsection a. is adjusted, effective January 1 of each year, under section 415(d) of the Code in such manner as the Secretary shall prescribe, and payable in the form of a straight life annuity. A limitation as adjusted under section 415(d) will apply to limitation years ending with or within the calendar year for which the adjustment applies.
    2. Benefit payments that are limited by this Article shall be increased annually to the level permitted by the limitations of this Article as adjusted for later years in accordance with this subsection, but in no event to a level higher than the benefits attributable to accrued benefits earned by the Participant.
  3. Effective for Limitation Years beginning before July 1, 2007 and pursuant to the grandfather rules in Section 1.415(a)-1(g)(4) of the Treasury Regulations, this paragraph shall not apply to benefits accrued on or after January 1, 2008. For the purpose of administering the Plan, the maximum benefit limitation under this Article shall be tested on the basis that the Participant's benefit is attributable to service with a single Contributing Employer. If on the above basis the Participant's benefit would be limited because of the maximum benefits under this Article, then the provisions of this Article shall be applied separately for employment with different Contributing Employers. For this purpose, the benefit under this Plan considered as payable with respect to a Participant and an Employer shall equal the excess of the benefit over the benefit computed as if the Participant had no covered service with the Employer.
  4. Effective for Limitation Years beginning before July 1, 2007 and pursuant to the grandfather rules in Section 1.415(a)-1(g)(4), notwithstanding the provisions of Section 7.03, once the maximum benefit limitation under this Article 14 for each applicable form of payment provided by this Plan has been tested by applying the provisions of this Article separately for employment with different Contributing Employers, the Participant may elect to change his or her previously elected form of payment. Such election must be made in writing within 90 days after the date the Participant is notified of the benefit limitations of the forms of payment for which he or she qualifies based on such separate testing and will be made retroactive to the Participant's Pension Effective Date. If the Participant is married and elects to receive a form of payment other than the Spousal Pension, his or her election shall require the Spouse's written consent, which must acknowledge the effect of such election and name both a designated beneficiary and the specific form of payment elected. Such spousal consent must be witnessed by a Notary Public.
  5. Benefit increases resulting from the increase in the limitations of section 415(b) of the Code will be provided to all current and former Participants (with benefits limited by section 415(b)) who have an accrued benefit under the Plan immediately prior to the effective date (other than an accrued benefit resulting from a benefit increase solely as a result of the increases in limitations under section 415(b)).
  6. In addition to any other limitations set forth in the Plan and notwithstanding any other provisions of the Plan, effective for Limitation Years beginning on or after July 1, 2007, benefits under the Plan shall be limited in accordance with Section 415 of the Code and the Treasury Regulations thereunder, in accordance with this Article. This Article 14 is intended to incorporate the requirements of Section 415 of the Code by reference except as otherwise specified herein. If and to the extent that the rules set forth in this Article 14 are not longer required for qualification of the Plan under Section 401(a) and related provisions of the Code and the Treasury Regulations thereunder, they shall cease to apply without the necessity of an amendment to the Plan.

Adjustment of Dollar Limit for Early or Late Retirement.

  1. If the benefit of a Participant begins prior to age 62, the defined benefit dollar limitation applicable to the Participant at such earlier age is:
    1. If the Pension Effective Date is in a limitation year beginning before July 1, 2007, the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s Pension Effective Date that is the actuarial equivalent of the dollar limitation under Section 415(b)(1)(A) (as adjusted under Section 415(d)), with actuarial equivalence computed using whichever of the following produces the smaller annual amount: (i) the interest rate and mortality table or other tabular factor specified in the Plan for determining actuarial equivalence for early retirement purposes; or (ii) a 5 percent interest rate assumption and the applicable mortality table.
    2. If the Pension Effective Date is in a limitation year beginning on or after July 1, 2007, the lesser of (i) the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s Pension Effective Date that is the actuarial equivalent of the dollar limitation under section 415(b)(1)(A) (as adjusted under section 415(d)), with actuarial equivalence computed using a 5 percent interest rate assumption and the applicable mortality table (and expressing the Participant’s age based on completed calendar months as of the Pension Effective Date); and (ii) the product of the dollar limitation under section 415(b)(1)(A) (as adjusted under section 415(d)) multiplied by the ratio of the annual amount of the immediately commencing straight life annuity under the Plan to the Participant’s Pension Effective Date to the annual amount of the immediately commencing straight life annuity under the Plan at age 62, both determined without applying the limitations of section 415.

      Notwithstanding the above, if the Plan does not have an immediately commencing straight life annuity payable at both age 62 and the age of benefit commencement, the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that is the actuarial equivalent of the defined benefit dollar limitation (adjusted for years of participation less than 10, if required) with actuarial equivalence computed using a 5 percent interest rate assumption and the applicable mortality table for the annuity starting date as defined in Section 1.02 of the Plan (and expressing the Participant’s age based on completed calendar months as of the annuity start date).
  2. If the benefit of a Participant begins after the Participant attains age 65, the defined benefit dollar limitation:
    1. If the Pension Effective Date is in a limitation year beginning before July 1, 2007, the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s Pension Effective Date this is the actuarial equivalent of the dollar limitation under Section 415(b)(1)(A) (as adjusted under Section 415(d)), with actuarial equivalence computed using whichever of the following produces the smaller annual amount: (i) the interest rate and mortality table or other tabular factor specified in the Plan for determining actuarial equivalence for delayed retirement purposes; or (2) a 5 percent interest rate assumptions and the applicable mortality table.
    2. If the Pension Effective Date is in a limitation year beginning on or after July 1, 2007, is the lesser of (i) the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s Pension Effective Date that is the actuarial equivalent of the dollar limitation under section 415(b)(1)(A) (as adjusted under section 415(d)), with actuarial equivalence computed using a 5 percent interest rate assumption and the applicable mortality table (and expressing the Participant’s age based on completed calendar months as of the Pension Effective Date); and (ii) the product of the dollar limitation under section 415(b)(1)(A) (as adjusted under section 415(d)) multiplied by the ratio of the annual amount of the immediately commencing straight life annuity under the Plan at the Participant’s Pension Effective Date to the annual amount of the immediately commencing straight life annuity under the Plan at age 65, both determined without applying the limitations of section 415.

      Notwithstanding the above, if the Plan does not have an immediately commencing straight life annuity payable at both age 65 and the age of benefit commencement, the annual amount of a benefit payable in the form of a straight life annuity commencing at the Participant’s annuity starting date that is the actuarial equivalent of the defined benefit dollar limitation (adjusted for years of participation less than 10, if required), with actuarial equivalence computed using a 5 percent interest rate assumption and the applicable mortality table for that annuity starting date as defined in Section 1.02 of the Plan (and expressing the Participant’s age based on completed calendar months as of the annuity starting date).

      The applicable mortality table is the mortality table prescribed by Section 415(b)(2)(E)(v) of the Code.

Adjustment for Optional Payment Form. If the Participant's accrued annuity benefit is paid in any form other than a single-life annuity or a Spousal Pension, the limitation in Section 14.01.a. (as otherwise modified under this Article) is applied to the accrued annuity benefit before it is converted to the alternative payment form, so that the amount payable under the payment form selected will be the Actuarial Equivalent of the accrued annuity benefit (which is defined as a single-life annuity) as limited by Section 14.01.a. Actuarial Equivalent is determined for this purpose based on a 5 (five) percent interest assumption and the 1983 Group Annuity Mortality Table based on a 50% male/50% female gender blend.

Notwithstanding the above, for purposes of applying the limitation in Section 14.01.a. in limitation years beginning on or after July 1, 2007, a retirement benefit that is payable in any form other than a single-life annuity and that is not subject to Section 417(e)(3) of the Code must be adjusted to an actuarially equivalent straight life annuity that equals the greater of the annual amount of the straight life annuity (if any) payable under the Plan at the same Pension Effective Date, and the annual amount of a straight life annuity commencing at the same Pension Effective Date that has the same actuarial present value as the Participant’s form of benefit computed using an interest rate of 5 (five) percent and the applicable mortality table under Section 417(e)(3) of the Code.

Phase-In Over Years of Participation. If a Participant has fewer than 10 years of participation in this Plan the $160,000 limitation in Section 14.01.a. shall be multiplied by a fraction, the numerator of which is the Participant's total years of participation in this Plan and the denominator of which is 10. The limitation thus obtained shall not be less than 10% of the $160,000 limitation.

Limitation Year. The annual limits of this Article shall be applied on a calendar year basis.

Protection of Prior Benefits.

  1. For any year before 1983, the limitations prescribed by Section 415 of the Code as in effect before enactment of the Tax Equity and Fiscal Responsibility Act of 1982 shall apply, and no benefit earned under this Plan shall be reduced on account of the provisions of this Article if it would have satisfied those limitations under the prior law.
  2. For any year before 1992, the limitations prescribed by Section 415 of the Code as in effect before enactment of the Tax Reform Act of 1986 shall apply, and no benefit earned under this Plan as of the close of the last Limitation Year beginning before January 1, 1987 shall be reduced on account of the provisions of this Article if it would have satisfied those limitations under the prior law.
  3. The application of the provisions of this Article 14 shall not cause the maximum permissible benefit for any Participant to be less than the Participant’s accrued benefit under all the defined benefit plans of the Employer or a predecessor employer as of the end of the last Limitation Year beginning before July 1, 2007 under provisions of the plans that were both adopted and in effect before April 5, 2007. The preceding sentence applies only if the provisions of such defined benefit plans that were both adopted and in effect before April 5, 2007 satisfied the applicable requirements of statutory provisions, Regulations, and other published guidance relating to Code Section 415 in effect as of the end of the last Limitation Year beginning before July 1, 2007, as described in Section 1.415(a)-1(g)(4) of the Treasury Regulations.

Adjustments Following Commencement of Benefits. If on a Participant's Pension Effective Date, his or her benefit exceeds the maximum limitation as allowed under Internal Revenue Code Section 415 for that Calendar Year, said Participant's benefit for subsequent Calendar Years shall be increased up to the maximum limitation as adjusted for the particular Calendar Year. Any excess benefit amounts not payable during the initial or subsequent Calendar Years shall be held by the Fund, and accumulated with interest to the end of the year (at the prime rate as published in the Wall Street Journal as of January 1 of each Calendar Year) in an account for the Participant.

In the event that the maximum limitation for a Calendar Year exceeds the Participant's original benefit that would have been payable in the absence of Section 415, the Participant shall be entitled to recover benefits, which were previously determined to be in excess and held by the Fund, up to the current Calendar Year's maximum limitation. Subject to any subsequent Calendar Year's maximum limitation, the Participant shall be entitled to the continued recovery of excess benefits until such time as all excess benefit amounts have been paid.

Upon the death of a Participant, any remaining excess benefit amounts in the Participant's account shall be paid to the Participant's Spouse or, if there is no surviving Spouse, to the Participant's designated beneficiary to the extent such payment is permitted by Internal Revenue Service regulations.

Effective the first day of the second month after the last collective bargaining agreement providing for contributions to the Resilient Floor Covering Pension Fund has been amended to provide for the creation of and contributions to the Resilient Floor Covering Excess Benefit Plan this Section will no longer be operative and any benefits payable under this Section 14.07 shall be offset by amounts paid therefore under the Resilient Floor Covering Excess Benefit Plan.

Adjustment for Benefits Subject to 417(e)(3) of the Code. For purposes of adjusting any benefit under this Plan that is subject to Section 417(e)(3) of the Code, for distributions made on or after January 1, 2004, the computation of Actuarial Equivalent shall be based on the Applicable Mortality Table, as determined under the Plan, and the greater of the rate specified in the Plan or five and one-half percent (5.5%); and for distributions made on or after January 1, 2006, the computation of Actuarial Equivalent shall be based on the Applicable Mortality Table, and the greatest of (i) 5.5%, (ii) the rate that provides a benefit of not more than 105% of the benefit that would be provided if the “applicable interest rate” as defined in Code Section 417(e)(3) were the interest rate assumption, or (iii) the rate specified in the Plan.

Interpretation or Definition of Other Terms. All terms used in this Article not otherwise expressly defined in the Plan, shall be defined, interpreted and applied as prescribed in Internal Revenue Code section 415 and the regulations and rulings issued thereunder.

Minimum Distribution Requirements

General Rules.

  1. Effective Date. The provisions of this Article will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year.
  2. Precedence. The requirements of this Article and the Treasury Regulations under Section 401 (a)(9) will take precedence over any inconsistent provisions of the Plan.
  3. Requirements of Treasury Regulations Incorporated. All distributions required under this Article will be determined and made in accordance with the Treasury Regulations under Section 401(a)(9) of the Internal Revenue Code.
  4. TEFRA Section 242 (b)(2) Elections. Notwithstanding the other provisions of this Article, other than Section 15.01.c., distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2).

Time and Manner of Distribution.

  1. Required Beginning Date. The Participant’s entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant’s required beginning date.
  2. Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant’s entire interest will be distributed, or begin to be distributed, no later than as follows:
    1. If the Participant’s surviving spouse is the Participant’s sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31of the calendar year in which the Participant would have attained age 70½, if later.
    2. If the Participant’s surviving spouse is not the Participant’s sole designated beneficiary, then distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died.
    3. If there is no designated beneficiary as of September 30 of the year following the year of the Participant’s death, the Participant’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.
    4. If the Participant’s surviving spouse is the Participant’s sole designated beneficiary and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this Section 15.02.b., other than Section 15.02.b.(1) will apply as if the spouse were the Participant.

      For purposes of this Section 15.02 and Section 15.05, distributions are considered to begin on the Participant’s required beginning date (or, if Section 15.02.b.(4) applies, the date distributions are required to begin to the surviving spouse under Section 15.02.b. (1)). If annuity payments irrevocably commence to the Participant before the Participant’s required beginning date (or to the Participant’s surviving spouse before the date distributions are required to begin to the surviving spouse under Section 15.02.b.(1), the date distributions are considered to begin is the date distributions actually commence.
  3. Form of Distribution. Unless the Participant’s interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year, distributions will be made in accordance with Sections 15.03, 15.04, and 15.05 of this Article. If the Participant’s interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Section 401(a)(9) of the Code and the Treasury regulations. Any part of the Participant's interest which is in the form of an individual account described in Section 414(k) of the Code will be distributed in a manner satisfying the requirements of Section 401(a)(9) of the Code and the Treasury regulations that apply to individual accounts.

Determination of Amount to be Distributed Each Year.

  1. General Annuity Requirements. If the Participant’s interest is paid in the form of annuity distributions under the Plan, payments under the annuity will satisfy the following requirements:
    1. The annuity distributions will be paid in periodic payments made at intervals not longer than one year.
    2. The distribution period will be over a life (or lives) or over a period certain not longer than the period described in Section 15.04 or 15.05.
    3. Once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted.
    4. Payments will either be nonincreasing or increase only as follows:
      1. By an annual percentage increase that does not exceed the annual percentage increase in a cost-of-living index that is based on prices of all items and issued by the Bureau of Labor Statistics;
      2. To the extent of the reduction in the amount of the Participant's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described in Section 15.04 dies or is no longer the Participant’s beneficiary pursuant to a qualified domestic relations order within the meaning of Section 414(p);
      3. To provide cash or refunds of employee contributions upon the Participant’s death; or
      4. To pay increased benefits that result from a Plan amendment.
  2. Amount Required to be Distributed by Required Beginning Date. The amount that must be distributed on or before the Participant’s required beginning date (or, if the Participant dies before the distributions begin, the date distributions are required to begin under Section 15.02.b.(1) or 15.02.b.(2) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the Participant’s benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the Participant’s required beginning date.
  3. Additional Accruals After First Distribution Calendar Year. Any additional benefits accruing to the Participant in a calendar year after the first distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues.

Requirements for Annuity Distributions That Commence During the Participant’s Lifetime

  1. Joint Life Annuities Where the Beneficiary is Not the Participant’s Spouse. If the Participant’s interest is being distributed in the form of a joint and survivor annuity for the joint lives of the Participant and a nonspouse beneficiary, annuity payments to be made on or after the Participant’s required beginning date to the designated beneficiary after the Participant’s death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the Participant using the table set forth in Q&A-2 of Section 1.401(a)(9)-6T of the Treasury Regulations. If the form of distribution combines a joint and survivor annuity for the joint lives of the Participant and a nonspouse beneficiary and a period certain annuity, the requirement in the preceding sentence will apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain.
  2. Period Certain Annuities. Unless the Participant’s spouse is the sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the Participant’s lifetime may not exceed the applicable distribution period for the Participant under the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations for the calendar year that contains the annuity starting date If the annuity starting date precedes the year in which the Participant reaches age 70, the applicable distribution period for the Participant is the distribution period for age 70 under the Uniform Lifetime Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations plus the excess of 70 over the age of the Participant as of the Participant’s birthday in the year that contains the annuity starting date. If the Participant’s spouse is the Participant’s sole designated beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the Participant’s applicable distribution period as determined under this Section 15.04.b., or the joint life and last survivor expectancy of the Participant and the Participant’s spouse as determined under the Joint and Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury Regulations, using the Participant’s and spouse’s attained ages as of the Participant’s and spouse’s birthdays in the calendar year that contains the annuity starting date.

Requirements for Minimum Distributions Where Participant Dies Before the Date Distributions Begin

  1. Participant Survived by Designated Beneficiary. If the Participant dies before the date distribution of his or her interest begins and there is a designated beneficiary, the Participant’s entire interest will be distributed beginning no later than the time described in Section 15.02(b) (1) or 15.02.b.(2), over the life of the designated beneficiary or over a period certain not exceeding:
    1. Unless the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary’s age as of the beneficiary’s birthday in the calendar year immediately following the calendar year of the Participant’s death; or
    2. If the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary’s age as of the beneficiary’s birthday in the calendar year that contains the annuity starting date.
  2. No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the Participant’s death, distribution of the Participant’s entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death.
  3. Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If the Participant dies before the date distribution of his or her interest begins, the Participant’s surviving spouse is the Participant’s sole designated beneficiary and the surviving spouse dies before distributions to the surviving spouse begin, this Section 15.05 will apply as if the surviving spouse were the Participant, except that the time by which distributions must begin will be determined without regard to Section 15.02.b.(1).

Definitions

  1. Designated Beneficiary. The individual who is designated as the beneficiary under Section 8.05 of the Plan and is the designated beneficiary under Section 401 (a)(9) of the Internal Revenue Code and Section 1.401(a)(9)-1, Q &A-4, of the Treasury Regulations.
  2. Distribution Calendar Year. A calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participant's required beginning date. For distributions beginning after the Participant's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to Section 15.02.b.
  3. Life Expectancy. Life expectancy as computed by use of the Single Life Table in Section 1.401 (a)(9)-9 of the Treasury Regulations.
  4. Required Beginning Date. "Required Beginning Date" means the date specified in Section 1.24 of the Plan.

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

Contact Plan Administrator
regarding questions about your benefits

Telephone NumberPhone
(800) 782-0010

Contact FormEmail:
resilientinfo@hsba.com

Click for MapVisit Us
Health Services & Benefit Administrators, Inc. (HS&BA)
4160 Dublin Boulevard, Suite 400
Dublin, CA 94568-7756

Contact Website Technical Support
regarding questions related to the use of this web site.

Toll Free(866) 367-8265