PENSION

The Teamsters Local 456 Pension Plan provides Plan members with a guaranteed income for their retirement years. The Pension Plan covers Local 456 members whose employers contribute to the Pension Fund on their behalf as agreed to through collective bargaining between the employer and Local 456. Local 456 members become eligible for Pension Plan participation on the January 1, or July 1 after completing 750 hours of work in covered employment within a 12 month period from the date they are hired. Work time is important because it counts towards getting into the Plan and determines eligibility for benefits and how much the benefits will be.

Pension Credits

Pension Credits are used to determine eligibility for a Regular, Service, Early or Disability Pension (the four types of benefits for which a Plan member may qualify under the Plan) Members receive one full Pension Credit when they work at least 1,280 hours each calendar Year (January 1 – December 31).

Pension Benefit Increase

Regular, Early and Service Pension benefits are determined by the benefit in effect upon retirement multiplied by the Pension Credits earned. The Trustees of the Teamsters Local 456 456 Pension Fund have approved a Pension benefit increase for Local 456 members who are participants in the Local 456 private sector Pension Plan. The increase provides for the following:

•  A $60 per month benefit for each Pension Credit for members who retire after January 2002  

•  A $65 per month benefit for each Pension Credit for members who retire after January 2003

The Pension benefit increase is subject to the continued financial stability of the Pension Fund. To be eligible for a Pension Credit, a participant must work or have worked over 1,280 hours for a contributing employer each calendar year. A participant that works or has worked less than 1,280 for a contributing employer in a calendar year will receive a partial Pension Credit for that year.

Benefit Types

Regular Pension – A Plan member becomes eligible for a Regular Pension on the first day of the month following his or her 65 th . Birthday after at least five Pension Credits have been earned.

Early Retirement Pension – A Plan member becomes eligible for an Early Retirement Pension on the first day of the month following his or her 62 nd . Birthday after at least 15 Pension Credits have been earned.

Service Pension – A Plan member becomes eligible for a Service Pension on the first day of month following his or 57 th . Birthday after at least 20 Pension Credits have been earned.

Disability Pension – A Plan member may be entitled to a Disability Pension if, after Social Security approval has been submitted to the board of Trustees, the member is found to be permanently and Totally disabled and the member is:

•  50 years old and has 15 Pension Credits, or

•  Has at least 25 Pension Credits, and has worked at least 160 hours in the 12-month period before becoming disabled.

Payment Options

Before a Plan member begins receiving a pension, he or she may choose from among several options or benefit payments . However, once an option is chosen and payment begins, no changes can be made.

•  Husband and Wife – This is the way pensions MUST be paid unless the Plan member and his or her spouse have rejected it in writing and have selected another option. It provides a reduced monthly benefit during the retiree's lifetime and then provides a lesser benefit to the surviving spouse for the remainder of his or her lifetime.

•  Single Life – This option produces the highest form of payment at retirement, but once The Plan member dies, all payments end.

•  Contingent Pensioner – This option works like a Husband and Wife option during the Plan member's lifetime, but when the member dies, a percentage of the benefit is paid to any individual the member has named.

•  Years Certain and Life – This option provides reduced monthly payments for a member's lifetime with the additional guarantee that if the member dies before the guarantee period ends (either 10, 15 or 20 years), payment will continue to the designated beneficiary for the remainder of the option period chosen.

•  Lump Sum and Installments – Plan members who have 25 or more Pension Credits upon retirement can choose to receive monthly benefits along with a lump sum. However, Monthly benefits are only paid during the lifetime of the member. This is only a brief summary of the benefits available to Local 456 private sector members under the Teamsters Local 456 Pension Plan. Public sector members receive Pension benefits upon retirement under the New York State Retirement Plan.