IUE-CWA Pension Plan Highlights
  The following are some highlights and frequently asked questions about the IUE-CWA Pension Plan.  For more details, please contact the plan office.

For information about including the Pension Plan in your collective bargaining agreement, contact Director Mike Lostutter at mike@iuepension.org or 973.893.0333.

 
 

Overview

  • What is it?

The Plan is a qualified defined benefit multi-employer pension plan approved by the Internal Revenue Service.

  • What is a multi-employer plan?

A multi-employer plan is a plan to which more than one employer contributes and which is maintained based on one or more collective bargaining agreements.  The plan provides a standardized benefit arrangement and pooling of assets for investment purposes.

  • What is the advantage?

The IUE-CWA multi-employer plan approach offers economies in administrative and investment operations while providing participating employers the flexibility of separate contribution and benefit levels.

  • How does it work?

The employer and union negotiate an hourly contribution which provides a specific benefit in terms of dollars per month per year of service.

The benefit amount is based upon the level of contribution and the age and service characteristics of the employer group.

As contributions change in the future, benefits are adjusted.

 

Plan Features

Service Credits

  • Future Service (after employer participation in the Plan)

1/10 year for each 170 hours up to one year for 1,700 hours. 
Additional 1/10 year for each 170 hours in excess of 2,080 hours.

  • Past Service (before employer participation in the Plan)

Period from date of seniority to date of participation, nearest 1/10.

  • Credited Service

Past service plus future service.

  • Vesting Service

Past service plus future service - where 1,000 hours equals one year of future vesting service.

 

Benefit Eligibility

  • Normal Retirement

Age 65 and 5 years vesting service.

  • Early Retirement

Age 55 and 5 years vesting service.

  • Disability Retirement

10 years vesting service and Social Security Disability award.

  • Deferred Retirement

5 years vesting service.

  • Pre-Retirement Death Benefit

5 years vesting service; one year marriage.

  • Severance Benefit

3 years Credited Service of which at least 1 year is Future Service.

 

Benefit Amounts

  • Normal Retirement

Total Service basis: Benefit rate  X  Credited Service

Future Service basis: Benefit rate  X  Future Service

  • Early Retirement

Normal Retirement formula reduced for early retirement by 1/4% for each of first 24 months that Early Retirement precedes age 62; and 1/2% for each month over 24 months that your benefits start before age 62.

No reduction if benefits start on or after age 62.

  • Disability Retirement

Normal Retirement formula - unreduced.

  • Deferred Vested

Normal Retirement formula - payable at age 65.

  • Spouse Pre-Retirement Death Benefit

Automatic 75% of your accrued benefit, reduced for early commencement of benefits.

  • Single Participant Pre-Retirement Death Benefit

Same as above, but payable to a designated beneficiary(ies) for 120 months.

  • Severance Benefit

Lump sum benefit of:

2.5  X  Contribution Rate  X  Future Service.

 

Forms of Payment

  • Normal Form

5 year Certain and Life

  • Optional Forms

Life Only
Joint & Survivor at 50%, 75%, or 100%
10 year Certain and Life
Lump Sum

 

Provisions

  • Pop-up

If a pensioner chose a Joint & Survivor Option at retirement and the spouse dies, the regular monthly benefit will "Pop-up" to what it would have been had the Joint & Survivor Option not been elected.

  • Lump Sum limits

If the assumed net value of the benefit is below $5,000, the benefit will automatically  be paid in a lump sum.

If the assumed net value of the benefit is below $10,000 but above $5,000, the participant will have the option of receiving a lump-sum payment or monthly benefit payments.
 
 

What are the Employer's Responsibilities?

  • Contributions

Contributions are paid for each hour an employee is compensated.  This means contributions are made on all hours worked and any other compensated hour, including but not limited to:  Vacation, Holiday, Jury Duty, Overtime, Bereavement, Lay-off.

Compensated hours are based on the terms of the bargaining agreement.

  • Timing of Contributions

Contributions are made by the 10th of the month for the preceding payroll period.

  • Filings

The Pension Plan administrator prepares and submits all filings required by various government agencies regulating pension plans.

The employer is expected to cooperate with the Fund in supplying participant and related information in order for the Fund office to maintain complete and accurate records.

  • Variables

The hourly contribution amount, and

The service basis, including Total Service or Future Service.

 		  

What are the Administrator's Responsibilities?

  • The IUE-CWA Fund office will:

Prepare and maintain all documents and agreements.

Maintain the Plan in a qualified status.

Furnish employers with remittance reports for contributions.

Maintain all participant records.

Rule on appeals.

Pay monthly benefits.

Prepare initial and annual filings (5500, PBGC).

Prepare participant tax forms and notices.

Prepare legal and actuarial services.

Respond to participant inquiries.

  • Who administers the Plan?

The Trustees of the IUE-CWA Pension Plan are the Administrators.  There are equal numbers of Union and Employer Trustees.

  • What does it cost?

Administrative and investment costs are incorporated in the development of the benefit level.
 

 

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IUE-CWA Pension Fund
1460 Broad Street
Bloomfield, NJ 07003
973.893.0333 / 973.893.8225 fax

Copyright 1997-2008 IUE-CWA Pension Fund

This page was last modified: 02/04/2008