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Calculating Benefits
About the PlanBenefit Calculations
Benefit Calculations are a Function of:
  • Pension Credit
    • Past Service Credit
    • Future Service Credit
  • Benefit Schedule
  • Contribution Rate
  • Age at Retirement
  • Benefit Type and Option Chosen
Pension Credit
Past Service Credit:
  • Is generally pension credit for which contributions were not paid to the Fund; however, this work must have been for an employer in this local union jurisdiction that is now covered by the National Pension Fund.
  • Employment work history forms or local pension fund records generally are the best source of Past Service Credit information.
Future Service Credit: See Schedule
  • Employer Contributions
  • Credit based on Hours of Work
    • Calendar Years prior to 1999 provide a maximum of 1.0 year of Future Service Credit.
    • Calendar Year 1999 provides a maximum of 1.1 years of Future Service Credit.
    • Calendar Years beginning in 2000 provide a maximum of 1.2 years of Future Service Credit.
Benefit Schedules
  • See Addendum for Plan Schedules of Benefits (Form #25) for the schedules of benefits in effect for all periods of coverage by the Plan.


  • Separation: A vested participant who incurs 5 or more consecutive years without any Future Service Credit incurs a Separation. Accrued benefit for credit earned prior to the Separation is at the highest contribution rate negotiated by his home local union for this work (for which he has at least 1500 hours in contributions) at the time of his Separation. The benefit schedule used is the schedule in effect at the time of the Separation. Separations can also occur for non-vested participants in certain cases and are different than permanent breaks-in-service.


  • Permanent Break in Service: If, before a participant becomes vested, he does not work in covered employment for certain periods of time, he will suffer a Permanent Break in Service. Unlike a Separation described above, which results in the service earned prior to the Separation being valued at a lower contribution rate and schedule of benefits, a Permanent Break in Service results in the loss of all years of Pension Credit and Vesting Service earned prior to the Permanent Break in Service. However, once you are Vested, although you can still be subject to the effect of a Separation as described above, you cannot thereafter lose your entitlement to a benefit based on the service earned prior to your absence from covered employment. Participants who, prior to incurring a Permanent Break in Service, have at least 1 Hour of Work on or after July 1, 1998, become Vested when they earn at least 5 years of Vesting Service, none of which has been cancelled by a Permanent Break in Service.


  • Please refer to the Summary Plan Description for a more complete explanation of Breaks In Service and Separations From Covered Employment.
Age at Retirement
  • Ages 62 to 65: Full benefit unreduced by age.
  • Early Retirement Reduction Factors:
    • 60 to 62: 1½% per year or 1/8 of 1% reduction per month.
    • 55 to 60: 6% per year or ½ of 1% reduction per month.
Benefit Types and Options
  • Normal for single participants: 5 year certain benefit
  • Normal for Married Participants: 50% husband and wife benefit.
  • Many other benefit types and options: see Plan Booklet for more details.
Benefit Calculation Example (View Plan Changes Beginning January 2005)
  • Joe is 60 years old on January 1, 2005. His local union started participating in the National Pension Fund in 1984. In 2004 his local union had a contribution rate of $3.15 per hour and Joe had at least 1500 hours at this rate in December 2004. Joe had 10 Past Service Credits and 20 Future Service Credits. He always worked in his home local union jurisdiction. Joe is married and he and his wife are the same age. If Joe had retired effective January 1, 2005, his benefit would have been calculated as follows.

    Since all of Joe's 30 years of Pension Credit was earned prior to 2005, his benefit is calculated using Schedule A. The contribution rate of $3.15 per hour provides a monthly Normal Pension at age 65 of $89.71 per year of Pension Credit.

  • Let's assume that rather than retire, Joe continued to work during 2005 earning an additional year of Future Service Credit at the $3.15 contribution rate. If Joe had retired effective January 1, 2006 at age 61, his benefit would have been calculated as follows.

    With Joe's one year of Pension Credit earned during 2005 his benefit for 2005 is calculated using Schedule B. The contribution rate of $3.15 per hour provides a monthly Normal Pension at age 65 of $22.43 for this year of Pension Credit, which is added to his previously earned benefit.
  • Let's assume that rather than retire, Joe continues to work during 2006 earning an additional year of Future Service Credit. Let's also assume that his local union increased their contribution rate by at least 25% effective January 1, 2006 to a contribution rate of $3.95. If Joe retires effective January 1, 2007 at age 62, his benefit will be calculated as follows.

    With Joe's one year of Pension Credit earned during 2006 his benefit for 2006 is calculated using Schedule C. The contribution rate of $3.95 per hour provides a monthly Normal Pension at age 65 of $44.97 for this year of Pension Credit, which is added to his previously earned benefit.
  • Having learned about the 75% restoration for 2007, Joe continues to work during 2007 earning an additional year of Future Service Credit at the $3.95 contribution rate. If Joe retires effective January 1, 2008 at age 63, his benefit will be calculated as follows.

    With Joe's one year of Pension Credit earned during 2007 his benefit for 2007 is calculated using Schedule D. The contribution rate of $3.95 per hour provides a monthly Normal Pension at age 65 of $67.46 for this year of Pension Credit, which is added to his previously earned benefit.
Other Benefit Calculation Matters
  • Weighted Average contribution rates, non-standard benefit levels, rate reductions, and separations will all effect the benefit calculations. Please refer to the Summary Plan Description for a more complete explanation of the effects of these matters.