Pension Plan Summary Plan Description

12.3 Types of Reciprocity

Standard Reciprocity. Standard reciprocity occurs when a Participant is dispatched by a local IBEW union other than Local 6 to a job in that local union's geographic area, and the Participant authorizes transfer of contributions in accordance with the Reciprocal Agreement or pursuant to an individual reciprocal agreement with that local union's pension plan. Reciprocal contributions are first allocated to the same type of Plan (defined benefit to this Plan and defined contribution to the SFEW Retirement Savings Plan) up to the hourly contribution limit set forth in the applicable IBEW Local 6 Collective Bargaining Agreement. Any excess amounts are then allocated to the dissimilar plan. If the reciprocal contribution exceeds the amount required to satisfy the contribution requirements of both Plans, the excess will be allocated to your Retirement Savings Plan account.

Exception to Standard Reciprocity. An exception to this allocation rule applies to Participants who are sent by their contributing Employer to another area under a portability agreement for whom a differential contribution is to be paid directly to the IBEW Local 6 retirement plans. A "differential contribution" represents the difference between the contribution required under the collective bargaining agreement covering the jurisdiction where the Employee is working and the rates established under the IBEW Local 6 Collective Bargaining Agreement. For these Participants, reciprocal contributions will be credited on a pro rata basis based on the relationship that this Plan's and the Retirement Savings Plan's contribution rates bear to the total IBEW Local 6 pension contribution (e.g., if 48% of the total IBEW Local 6 pension contribution rate is paid to the Plan, then 48% of the contributions transferred will be allocated to this Plan). However, reciprocal (including the differential) contributions to be paid to this Plan are capped at the pension contribution rate provided under the Local 6 bargaining agreement, with any excess contributed to the Retirement Savings Plan.

Pro Rata Reciprocity. Under pro-rata reciprocity, no money is transferred between the two participating plans. Instead, Credited Service in each jurisdiction is aggregated by each plan to determine vesting and whether a Break-in-Service has occurred under each plan. If you vest under these rules, each plan will pay a pension based on Pension Credit earned in that plan's jurisdiction only. The Board has entered into a pro- rata Reciprocity Agreement with the IBEW Pacific Coast Pension Plan.