FAST FACTS
- All applications for benefits must be in writing.
- You should contact the Fund Office for the proper forms to apply for your pension benefit 90 days before you would like to retire.
- If married, you may reject or change the form of payment you elect at any time within the 90-day period prior to your retirement, subject to spousal consent, if applicable.
- Once you retire, you generally cannot change your form of payment.
In order to begin collecting benefits under the Plan, you must submit a written application to the Board of Trustees. This application will be available for completion electronically through the Fund’s online portal.
You should file an application for benefits no more than 90, and no less than 30, days before the date you want payments to begin. The Fund Office will act on your application and notify you of any Plan benefits you may be entitled, as soon as possible and typically within 30 days of the date your application is received. If, however, special circumstances require an extension of time for processing your application, you will be notified in writing within 90 days of the Fund receiving your application as to the nature of the special circumstances and the date the Fund Office expects to render its decision. (See the “Claims and Appeals” section of this SPD for more information.)
If you are married and want to elect an optional form of payment described in the Forms of Payment section of this SPD, you must return the appropriate waiver and election forms, along with the notarized spousal consent form (if applicable) 90 days prior to your benefits starting date.
Married Participants
If you are married when you apply for your Pension Plan benefit, you and your spouse have a 90-day period to reject the Joint & Survivor Pension and elect the Lifetime Pension with 60 Months Guaranteed or Qualified Optional Alternative Pension (QOSA) form of payment as described in the Forms of Payment section of this SPD. In order to reject the Joint & Survivor Pension form, you must return the waiver and election forms, along with the notarized spousal consent form (if applicable) prior to your benefits starting date. During this period, you may also revoke a rejection of the Joint & Survivor Pension Form at any time up to the date your benefits are scheduled to commence. Note that once a Joint & Survivor Pension becomes payable, it cannot be revoked, even if you later get divorced.
When Your Payments Begin
Generally, your pension payment will begin on the first day of the first month after you have met all the requirements of the Plan for being entitled to and receiving benefits. These requirements include filing a pension application in advance of the date you want your pension payments to begin. Except in certain very limited circumstances (see “Required Minimum Distribution” section below), your pension payments cannot begin before you stop working. Also, except for the Disability Pension and the Plan’s death benefits, no benefits will be payable for any period before the first day of the month after you file your application with the Fund Office, unless you have attained your required minimum distribution date.
If you retire and do not file your application for benefits within 60 days after the later
of your normal retirement age or the date on which you stop working, your benefits
will be actuarially increased for each month from the date which is 60 days after the later of:
- your normal retirement age, or
- the date on which you stop working.
Required Minimum Distribution
Effective January 1, 2021, your benefits must begin no later than April 1 of the calendar year following the calendar year that you attain age 72, or, if later, the year in which you retire.
Effective January 1, 2024, your benefits must begin no later than April 1 of the calendar year following the calendar that you attain age 73, or, if later, the year in which you retire.
However, if you have not yet retired when you reach age 70 1/2 and you would like to commence your pension benefit while you are still working, you may make an Age
70 1/2 Election, on a form provided by the Fund office. If you make this Election, your pension will begin April 1 of the calendar year following the year in which you attained 70 ½, even though you have not yet retired.
Preparing for Retirement
If retirement is in your near future, it is important to allow enough time to make informed decisions about your benefits. The basic checklist below will assist you in making a smooth transition to retirement. Remember, it is your responsibility to apply for Plan benefits.
| Twelve Months or More Prior to Retirement | Six Months Prior to Retirement | 90 days Prior to Retirement |
|---|---|---|
| ■ Contact the Social Security Administration to determine what your options are for benefits. Ask them what documents you will need when applying for Social Security benefits. ■ Contact the Fund office for an estimate of your retirement benefit. ■ Prepare a preliminary retirement budget, comparing your expenses against the total of your Local No. 26 Pension Fund retirement benefit, monthly Social Security benefit, and any other retirement income that may be available to you.* | ■ Discuss your estimated benefit and payment options with your family and financial advisor. ■ Re-evaluate the preliminary budget you created six months earlier. | ■ Complete the appropriate pension application and supporting documentation in the Fund office. ■ Turn in your application. Your pension application must be dated and received by the Fund office no more than 90 days but at least 30 days prior to your pension start date, otherwise, payments will be delayed. ■ Plan your retirement party! |
* this may include additional IBEW funds.
Overpayments
If the Fund pays benefits to which you, your Spouse, alternate payee, Beneficiary or other recipient are not entitled or pays benefits in an amount greater than the benefits to which you, your Spouse, alternate payee, Beneficiary or other recipient are entitled, the Fund has the right to recover such benefit payments by offsetting future benefits otherwise payable by the Fund, to the extent permitted under law. If the Fund made the overpayment to your former Spouse as required by a qualified domestic relations order, the Fund may recover the overpayment from you and/or your former Spouse.
The Fund shall have a constructive trust, lien and/or an equitable lien by agreement in favor of the Fund on any overpayment, including amounts held by a third party, such as an attorney. Any such amount will be deemed to be held in trust by you, your Spouse, alternate payee, Beneficiary, or third party for the benefit of the Fund until paid to the Fund. By accepting benefits from the Fund, you, your Spouse, alternate payee and Beneficiary agree that a constructive trust, lien, and/or equitable lien by agreement in favor of the Fund exists with regard to any overpayment received. You, your Spouse, alternate payee, and Beneficiary agree to cooperate with the Fund by reimbursing all amounts due.
In the event the overpayment is the result of a misrepresentation or omission by you, your Spouse, alternate payee or Beneficiary, or you, your Spouse, alternate payee or Beneficiary knew the overpayment was materially more than the correct amount, you, your Spouse, alternate payee, or Beneficiary will be liable to the Fund for all of its costs and expenses, including attorneys’ fees and costs, related to the collection of any overpayment and will be obligated to pay interest at the rate as determined by the Trustees through the date that the Fund is paid the full amount owed, to the extent permissible under applicable law.
Any refusal by you, your Spouse, Beneficiary or alternate payee to reimburse the Fund for an overpayment will be considered a breach of the benefit recipient’s agreement with the Fund that the Fund will provide the benefits available under the Plan in exchange for the recipient complying with the rules of the Fund. Further, by accepting benefits from the Fund, you and your Spouse, Beneficiary and alternate payee affirmatively waive any defenses you may have in any action by the Fund to recover overpayments or amounts due under any other rule of the Plan, including but not limited to a statute of limitations defense or a preemption defense, to the extent permissible under applicable law.
To the extent permissible under applicable law, the Fund has the right to recover overpayments by pursuing legal action against the party to whom the benefits were paid. In that event, the party to whom benefits were paid may be obligated to pay all costs and expenses, including attorneys’ fees and costs, incurred by the Fund in connection with the collection of any overpayment or the enforcement of any of the Fund’s rights to repayment.