News & Changes

RE:  PENSION PLAN CHANGES

Dear Participant,

Please be advised that the following changes have been approved by the Board of Trustees at their June 10, 2009 meeting for the Pension Plan of the Iron Workers District Council of Northern New Jersey and are effective January 1, 2010:

1. The early retirement reduction factor is changed from 3% to 6% per year (.25% per month to .50% per month) from the date you retire with an early retirement pension to age 62 for pension credits earned on or after January 1, 2010.

2  For members who become participants in the Pension Plan on or after January 1, 2010, the early retirement pension requirements will be a minimum age of 55 and 20 pension credits.

Example: Reduction Factor
John is age 50 as of 2009 and has accumulated 25 pension credits and continues to work until the age of 60 in 2019 and has accumulated an additional 10 pension credits and retires under the early retirement provision; the accrual rate is $110.

Step 1. Calculate regular pension amount
25 Pension Credits x $110 benefit level = $2,750.00
10 Pension Credits x $110 benefit level = $1,100.00

Step 2. Calculate early retirement reduction
(Credits earn before 1/1/2010) 0.25% reduction x 24 months early = 6% reduction
6% of $2,750.00 = $165
(Credits earned after 1/1/2010) 0.50% reduction x 24 months early = 12% reduction
12% of $1,100.00 = $132

Step 3. Calculate early retirement pension amount
25 pension credits x $110 benefit – $165 (6%) = $2,585
10 pension credits x $110 benefit – $132 (12%) = $ 968
$2,585 + $ 968 = $3,553

John’s early retirement pension benefit is $3,553 a month.