Health and Welfare Summary Plan Description
4.3 Early Retiree Eligibility
- General Rule. You may maintain coverage in the Plan as an Early Retiree if you have attained age 55, have commenced your pension under the Pension Plan, complied with the application deadline, and have satisfied the Regular Retiree requirements of Section 4.1(a) as of the date you became a Retiree (except that you have not yet attained age 62).
- Timing of Early Retiree Application. Your application for Early Retiree coverage must be received by the Plan Office no later than the 60th day following the later of your retirement or the last day of the month for which coverage has been provided from your Hour Bank. If you do not submit a timely application for Early Retiree coverage, your Early Retiree coverage will be permanently forfeited.
- Early Retiree Participation Required if Regular Retiree Service Insufficient. With one exception, you must participate in the Plan as an Early Retiree if you have not earned sufficient service to qualify for future participation under Section 4.1(a)(1) as a Regular Retiree (assuming a retirement date of age 62). If you do not continue participation, then your coverage under the Plan will end permanently (unless you re-enter Covered Employment).
Example: After 25 years of service, you retire on your 58th birthday and, because of your Hour Bank, you maintain Active Coverage through the month that is one month before your 59th birthday, at which time your Hour Bank balance runs out. Because your Hour Bank balance runs out one month before your 59th birthday, you will be unable to satisfy the requirement in Section 4.1(a)(1) that you be covered as an Active Employee for at least two non-overlapping 12-consecutive month periods as of your 62nd birthday. Therefore, you must continue coverage as an Early Retiree, and pay the required monthly premium, or you will permanently forfeit coverage under the Plan.
- Early Retiree Participation Not Required if Regular Retiree Sufficient. If you have earned sufficient service to qualify for future participation under Section 4.1(a)(1) as a Regular Retiree (assuming a retirement date of age 62), you are not required to participate as an Early Retiree in order to participate as a Regular Retiree when you attain age 62. However, if you do not participate in the Plan as of the earliest date you may participate as an Early Retiree (generally, immediately after your Hour Bank is exhausted), you may not participate as an Early Retiree, and you must wait to participate as a Regular Retiree at age 62. If you do not submit an application for Early Retiree benefits by the deadline described in subsection (b), you will be deemed to have waived participation as an Early Retiree, though you may later apply for coverage as a Regular Retiree.
Example: Assume the same facts in the example in subsection (c), except that you maintain coverage as an Active Employee through the month that includes your 59th birthday, at which time your Hour Bank balance runs out. Because your Hour Bank balance runs out after you attained age 59, you will be able to satisfy the requirements in Section 4.1(a)(1) that you be covered as an Active Employee for at least two non-overlapping 12-consecutive month periods as of your 62nd birthday. Assuming you satisfy the other requirements of that section, you may continue coverage as an Early Retiree and pay the required monthly Early Retiree premium, or you may decline coverage as an Early Retiree and re-commence coverage as a Regular Retiree beginning at age 62.
- Pension Plan Rule of 85. The sole exception to the Early Retiree Participation rule is for Early Retirees who have satisfied the Pension Plan's Rule of 85 at the time the Early Retiree initially commences his or her Early Pension. These Early Retirees may delay Early Retiree participation until age 62 and may pay the lower premium before age 65 that is available to an Early Retiree who has met the Section 4.1(a)(1) service requirements at or after age 59. Under the Pension Plan, you will satisfy the Rule of 85 when your combined age and Pension Credit totals at least 85.
- Special Rule for Non-Inside Wire Electrical Workers. A Participant who works under a Contribution Agreement that does not require contributions to the Pension Plan (for example, Material Handlers, IBEW Pacific Coast, and Residential Wire agreements) need not satisfy the condition in subsection (a) that benefits under the Pension Plan commence in order to qualify for Early Retiree coverage under this section, provided that the Participant's service would have supported a pension under the rules of the Pension Plan if the service were recognized by the Pension Plan.
- Effective Date of Coverage. An Early Retiree must commence coverage on the later of (i) the first day of the month following the last month that coverage is available either from the Retiree's Hour Bank or on the basis of the Retiree's No-Cost Disability or Reduced Cost COBRA coverage or (ii) the first day of the month following the month in which the Retiree commences his benefit under the Pension Plan.