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Pension Plan – Loss & Protection of Benefits

This section explains Breaks In Service and how you can be protected from a loss of Plan benefits.

One Year Break in Service

You incur a One-Year Break in Service on December 31 of any Plan Year (January 1 – December 31) in which you do not have either at least (1) five Months of Covered Service, or (2) 501 Hours of Service that may include both Covered Service and Related Non-Covered Service. If you are not Vested and have a number of consecutive One Year Breaks in Service, they may add up to a Permanent Break in Service causing you to lose all of your previously earned Years of Credited Service, years of participation and accrued benefits.

Grace Periods that Prevent a One Year Break in Service

There are five exceptions where your absence from Covered Service will not be counted when determining whether you have incurred a One-Year Break in Service.

  1. Absence Due to Parental Leave – If your absence from Covered Service is due to your pregnancy or the birth, adoption or care of your infant, the Plan will grant you up to 501 Hours of Service to prevent a One-Year Break(s) in Service from occurring.
  2. Absence Due to Disability – Your absence from Covered Service is due to a disability that incapacitates you from engaging in Covered Service.
  3. Absence Due To Performing Other Work in the Automotive Industry – You work for an Individual Employer that otherwise contributes to the Plan, but in a job that does not qualify for Employer Contributions to be made to the Plan.
  4. Absence Due to Work Under a Related Plan – Your absence from Covered Service in this Plan is due to work covered under a Related Plan. *
  5. Absence Due To Being In Uniformed Service – Periods of Qualified Military Service are not counted when determining if a One-Year Break(s) in Service occurs. You also receive Credited Service and benefit accruals during such period.

In order to receive a grace period, you must provide documentation to the Fund Office that your absence was due to one of the reasons described below. You should do this as early as possible because it often becomes difficult, if not impossible, as time goes on to find personal records or records from outside agencies to support your claim.

* The Fund Office is not automatically provided with information concerning your work under a Related Plan.  Therefore, you should keep records connected to your work under a Related Plan and should contact the Fund Office if you believe that you are eligible for Related Credited Service.

One Year Break in Service and Benefit Freeze

Benefits earned prior to a One-Year Break in Service are subject to the Plan rules in effect at the time of the One Year Break in Service. This means that if a Plan improvement is adopted after a One Year Break in Service, the improvement may not apply to benefits earned prior to the Break in Service. At the same time, this “freezing of benefit rules” does not prevent the Plan from applying changes – including the reduction or elimination of adjustable benefits – that may be required under the provisions of any adopted rehabilitation plan.

Permanent Breaks in Service

Once you attain Vested status, you have a non-forfeitable right to your accrued benefit at Normal Retirement Age. This means that you cannot incur a Permanent Break in Service and lose any previously earned Years of Credited Service, years of participation or accrued benefits – even if you cease working in Covered Service and do not return. However, if you are not Vested consecutive One Year Breaks in Service may lead to a Permanent Break in Service. Benefits and service lost due to a Permanent Break in Service cannot be restored. If you are partially vested and incur a Permanent Break in Service, then you lost the non-vested portion of your benefit at the time of the Permanent Break in Service.

One Year Breaks in Service only lead to a Permanent Break in Service if they are consecutive. One Year Breaks in Service stop being “consecutive” if you return to Covered Service before incurring a Permanent Break in Service and (1) again become a Plan Participant (see page 5) and (2) earn either five Months of Covered Service, or have at least 501 Hours of Service.  Different Permanent Break in Service rules apply to different time periods.

Permanent Break in Service Prior to January 1, 1986

You incur a Permanent Break in Service after prior to January 1, 1986 if before becoming Vested the number of consecutive One-Year Breaks in Service equals or exceeds the number of your previously earned Years of Credited Service (not counting any Credited Service earned prior to a previous Permanent Break in Service).

For examples, refer to Permanent Breaks in Service in the Pension Summary Plan Description.

Permanent Break in Service on or after January 1, 1986

You incur a Permanent Break in Service on or after January 1, 1986 if you have five consecutive One-Year Breaks in Service.

For examples, refer to Permanent Breaks in Service in the Pension Summary Plan Description.