Edison Pension Trust - IBEW Local 48 · Edison Pension Trust Ryan Stephens, Senior Vice President The William C. Earhart Company Inc. Your contact Donna or David @ (503)460-5223 EDISON

Edison Pension Trust

Ryan Stephens, Senior Vice President

The William C. Earhart Company Inc.

Your contact

Donna or David @ (503)460-5223

EDISON PENSION TRUSTA Family Pension Plan

• Board Of Trustees

Plan Sponsor/ Governing Body

Union Representatives and Employer

Representatives are the Trustees

Plan Professionals

Actuary, Attorney, Administrator, Auditor,

Investment Manager, Investment Consultant, etc…

Who makes the Rules?

Board of Trustees with guidance from Plan

Professionals


•Defined Benefit Plan

Employer Contribution per

Hour- as part of wage package in CBA

Requires Vesting for benefit Eligibility based

on Hours

Pays a Monthly Lifetime Benefit once vested

Benefit amount based on contributions to the

Plan X Accrual Rate/Factor

Plan Year is Calendar Year – January -

December


•Vested Benefits (1970 & 2011 Plan)

5 Years Credited Service= 100%Vested

Under 5 = 0% Vested

100% Vested = Benefit Eligibility

10 years Credited Service for Early Retirement(w/reductions)

Forfeiture of Benefit w/ Permanent Break in Service

(5 year break prior to Vesting)


•Vested Benefits (Cont.)

Yearly Credit-1000hrs or more = 1 year(s) Credited

Service

Reciprocal Credit

Partial credit-Under 300 = 0 year(s)

300-999hours = partial credit.

Example 300 hrs = 30% 400hrs = 40% 500hrs = 50% 600hrs = 60% etc…..


•Types of Retirement Early Retirement

Normal Retirement

Disability Retirement

Death Benefits- pre & post retirement


•Benefit Accrual (1970)

Contributions through 12/2000 at 4.5% Example- $5000contribs = $225 Accrual

Contributions from 1/2001 through 4/2003 at 4.1%Example- $5000contribs = $205 Accrual

Accrual Factor of 2.5% for Contributions 5/2003 and through 12/31/2006

Example- $5000contribs = $125 Accrual

Accrual Factor of 2.0% for Contributions 1/2007 through 12/08Example- $5000contribs = $100 Accrual

Accrual Factor of 1.0% for Contributions 1/2009 forwardExample- $5000contribs = $50 Accrual


•Benefit Accrual- example (1970)

2006 - 2000 Hours $10,000 Contributions = $ 250










Normal Monthly Benefit =$1,382 at age 65

*It takes around 6.25 years in retirement benefits to be paid the amount of principle contribution to the Plan.


•Benefit Accrual (2011 Plan)

Accrual Factor of 1.0% for Contributions 1/2011 forwardExample- $5000contribs = $50 Accrual

Accrual Factor increase with Years of Service - Years 5 thru 10 at 1.066%

Years of Continuous Credited Service at End of Year Benefit Percentage Factor Applied for the

Year Up to 5.00 1.000%

5.001 - 10.00 1.066%

10.001 - 15.00 1.132%

15.001 - 20.00 1.198%

20.001 - 25.00 1.264%

More than 25.000 1.330%


•Benefit Accrual- example (2011)

2014 - 2000 Hours $10,800 Contributions = $108





2019 - 2000 Hours $13,000 Contributions = $138.58





Normal Monthly Benefit =$1,296.90 at age 65* Takes approximately 8 years in retirement to be paid all principle contributions made to the Plan. Average payout to Edison Retirees is just over 17.5 years for age 65 Retiree and 25.5 years at 55.


•Benefit Reductionfor Early Retirement (Active) (1970)

From age 62 back to 55 at .25% per month or

3.0% per year

Example- 79% of full benefit at age 55, 82% at age 56, with 100% of benefits at age 62.

No Reduction at age 60 with over 25 years of combined credited and supportive service

Example- 79% of full benefit at age 55, 91% at age 59, with 100% of benefits at age 60 or older.


•Benefit Reductionfor Early Retirement (Inactive)(1970)

From age 65 back to 55 at .25% per month or

3.0% per year

Example- 70% of full benefit at age 55, 73% at age 56, with 100% of benefits at age 65.

New Reduction Factor for Inactive participants-for benefits accrued after 12/03

Example- 42.48% of full benefit at age 55, 75.9% at age 62, with 100% of benefits at age 65.


•Benefit Reduction (2011 Plan)

for Early Retirement

Reduction Factor for Inactive participants-

for benefits accrued after 7/2011

42.48% of full benefit at age 55, 75.9% at age 62,

with 100% of benefits at age 65.

Example - $1,000 benefits at age 65 would be

reduced to $424.80 per month if retired at age 55

If retired at age 62, that benefit would be

$759.00 per month.


•Benefit Optionsat Retirement (1970 &2011)

50% or 75% or 100% Joint and Surviving Spousal benefit or other non-spouse beneficiary

J&S option (50%, 75% or 100% J&S)

J&S option w/ pop-up provision (50%, 75% or 100% J&S)

Life Annuity benefit options 60 Month Certain and Life Annuity (normal form)

120 Month Certain and Life Annuity

Straight Life Annuity


•Working After Retirement

Normal Suspension of Benefits- 55 thru 64

Limited Provision for Retirees from Aug. 2011 – Dec 2013 (must meet rule of 80 or age 62 w/ >25,000 hours)

Electrical Instructor

Electrical Inspector

After Age 65


•Pension Funding

Zone Status- Green, Yellow ( Endangered) Red (Critical)

Limited Pension Relief Election

Contributions and Investment Income

How to stay in the “Green” Zone?


•ANNUAL STATEMENTS

Review each year

Confirm Hours

Confirm Contributions


•Work Up and Approval*Recommended to Start process 90 days prior to retirement date by requesting

application packet and return 60 days prior to retirement date.

Get Application Approved By Review Committee

Final Hours Confirmed

All Benefit Forms Complete

Adjust for Final Contributions

Work up and Pay Benefits


•Miscellaneous Taxable income

Estimates can be done

Written notification Address

Beneficiary Designation

Name Changes

Misc….

QUESTIONS???


Documents

Edison Pension Trust - IBEW Local 48 · Edison Pension Trust Ryan Stephens, Senior Vice President The William C. Earhart Company Inc. Your contact Donna or David @ (503)460-5223 EDISON