Edison Pension Plan

Not all members are eligible for the Edison Pension Plan.  Refer to the CBA you are working under or ask your Business representative if you are uncertain. 

The Edison Plan is a defined benefit pension plan.  In brief, a defined benefit plan has a specified monthly pay out based on a formula of earnings history (amount contributed), years of service, and age rather than investment returns.  (Pension plans based on investment amounts and returns are defined contribution plans such as the 9th District Pension Plan.)

The Plan Administrator is The William C. Earhart Company, Inc., PO Box 4148, Portland, OR., 97208, 503-282-5581. 

NOTE (from the Plan booklet): "All questions should be directed to the Administrative Office. No employer, employer association, union or employee of any such entity has authority to interpret the Plan Document or make statements or commitments that are binding on the Plan and Trust. Actions of the Board of Trustees are binding, but individual Trustees are not authorized to bind the Plan or Trust by statements or actions that are inconsistent with Board of Trustees’ approved documents, decisions, policies and procedures".  The Plan is administered and maintained by a joint labor-management Board of Trustees which is comprised of an equal number of representatives of employers and employees. 

Edison Pension Plan 1970 Structure - Summary Plan Description 

Edison Pension Plan 2011 Structure - Summary Plan Description

HIGHLIGHTS AND BRIEF EXAMPLE

The Plan is funded in whole by your employer. Current rates are in your CBA.

The Plan vesting period is five years.  The Plan defines service years (less than full time employment) in the Summary Plan Description (SPD).

Allowances for certain leaves of absence not causing a permanent break or break year.

The Plan allows for early retirement.

The Plan includes an Alumni Agreement which may provide benefits if you leave the bargaining unit (hourly) and go to work in management (salary).

Reciprocal with numerous similar plans. 

The Plan includes death benefit provisions.

Below is actual text from the Summary Plan Description, as you can see, it is written in understandable terms.  Please read through the entire SPD before asking questions as your questions may be answered in the SPD.

C. CALCULATION OF YOUR ACCRUED BENEFIT

12. How Do I Figure My Normal Retirement Benefit?

Your monthly Normal Retirement benefit, which is calculated as if you retire at age 65, is your Future Service Benefit plus your Past Service Benefit (when applicable). For most retirements starting since January 1, 1987, you determine your monthly benefit as follows: 

(A) Assuming you work continually without a Break Year, your Future Service Benefit is determined by multiplying the total of all employer contributions received or required to be made to the Trust on your behalf, prior to retirement, times the benefit percentage factor opposite your last 400 Hour Active Year. Your last active year is either (1) the last year in which you had 400 Covered Hours of Employment, approved reciprocity hours, non-bargaining unit hours, or are still regarded as being active due to an excused absence; or (2) the year your pension payments start if, the immediately preceding year is a 400 Hour Active Year.

(B) If you have CREDITED PAST SERVICE (service prior to January 1, 1970), multiply the number of credited past service years times $6.00. No service before January 1, 1958 may be recognized as Credited Past Service.

(C) If you have a Break Year, your benefit earned before the Break Year will be based on the Benefit Percentage Factors before the Break Year. If you return to Covered Employment after December 31, 2003 and accrue benefits at a higher Benefit Percentage Factor than before the Break Year, the Benefit Percentage Factor for your most recent pre-break Year will be upgraded if you have a Plan Year after reemployment in which you earn at least 1,000 covered hours of employment (“1,000 Hour Active Year”). If you have a second consecutive 1,000 Hour Active Year, your second most recent prebreak Year will be upgraded to the higher Benefit Percentage Factor. If you have a third consecutive 1,000 Hour Active Year, your third most recent prebreak Year will be upgraded to the higher Benefit Percentage Factor. If you have a fourth consecutive 1,000 Hour Active Year, your fourth most recent pre-break Year will be upgraded to the higher Benefit Percentage Factor. If you have five consecutive 1,000 Hour Active Years, all remaining pre-break Years with lower pre-break Benefit Percentage Factors will be upgraded.

EXAMPLE 1

NORMAL RETIREMENT WITH PAST AND FUTURE SERVICE CREDIT

Assume that you have worked without incurring a break in service in the Local 48 jurisdiction, including reciprocity service, since 1958, you had an active year of employment in 2005, and you start your pension payments January 2006. 

Total Contributions 1970 through 2000:  $87,500
Monthly Future Service Benefit earned from 1970 through 2000:  $87,500 x 4.5% = $3,937.50

Total Contributions 2001 through April 2003:  $9,000

Monthly Future Service Benefit earned 2001 through April 2003:  $ 9,000 x 4.1% = 369.00

Total Contributions May 2003 through December 2005:  $10,000

Monthly Future Service Benefit earned May 2003 through December 2005:  $10,000 x 2.0% = 200.00

Total Monthly Future Service Benefit:  $4,506.50

Past Service 12 years

Monthly Past Service Benefit:  12 x $6.00 = 72.00

Total Monthly Normal Retirement Benefit               $4,578.50

SUMMARY 

The Plan was established January 1, 1970.  It is insured by the Pension Benefit Guaranty Corporation.  As with all pensions of this type, you have all of the rights and protections under ERISA (Employee Retirement and Security Act of 1974).  

The Trustees of the Plan are very cognizant of their responsibilities of fiduciaries as required by ERISA.  Furthermore, many of the Trustees (both employer and employee) are covered and have benefits under the Plan.

The Trustees regularly attend classes, seminars and conventions specifically aimed at the fiduciary and legal responsibilities to ensure that all actions and decisions regarding your pensions are prudent and in the best interest of the Trust.