6 RECAPTURED VESTING AND BENEFIT SERVICE
Participants (including retirees) who worked at least 500 Contributory Hours in one of the Plan Years beginning July 1, 2001 or later will be eligible to begin recapturing any previously forfeited Contributory Vesting and Benefit Service on a “dollar for dollar” and an “hour for hour” basis. Recaptured service is credited in the Plan Year that the recapture occurs, not the Plan Year of the earlier forfeiture.
During Plan Years 1988 to 1991, Roger earned 5,800 Contributory Hours and his employer made $17,400 in Contributions on his behalf. Roger then left Covered Employment. Because Roger had not vested as of June 30, 1992, and did not return to work within the five year period permitted for him to reinstate his service, the 5,800 Contributory Hours Roger worked and his benefit derived from $17,400 in employer Contributions were permanently forfeited as of June 30, 1997.
Roger returned to Covered Employment in Plan Year 2012, and during Plan Years 2012 to 2014 earns 5,000 Contributory Hours and has $20,000 in employer Contributions made on his behalf. With this return to Covered Employment, Roger recaptures his forfeited Contributory Hours and Contributions on an “hour for hour” and “dollar for dollar” basis. In this example, Roger recaptures 5,000 of the 5,800 Contributory Hours he had forfeited and all of his $17,400 in forfeited Contributions.
If Roger continues to work in Covered Employment after Plan Year 2014, he may continue to recapture forfeited Contributory Hours, up to his remaining 800. He will have already recaptured all of his $17,400 in forfeited Contributions.
See the tables below for a review of Roger’s forfeited and recaptured Contributory Hours and Contributions:
Roger’s Forfeited Service, Plan Years 1988 to 1991 Plan Year Contributory Hours Contributions 1988 2,500 $7,500 1989 500 $1,500 1990 1,800 $5,400 1991 1,000 $3,000 1992 0 $ 0.00 Total 5,800 $17,400
Roger’s Service and Recaptured Service, Plan Years 2014 to 2016 Plan Year Contributory Hours Recaptured Contributory Hours Total Contributory Hours Contributions Recaptured Contributions Total Contributions Total Years of Vesting Service Total Contributory Years of Vesting Service 2014 1,800 1,800 3,600 $7,200 $7,200 $14,400 1.80 1.00 2015 400 400 800 $1,600 $1,600 $3,200 1.00 .80 2016 2,800 2,800 5,600 $11,200 $8,600 $19,800 2.80 1.00 Total 5,000 5,000 10,000 $20,000 $17,400 $37,400 5.60 2.80
In addition to his benefits earned based on current Contributions, Roger will earn a benefit at Normal Retirement Age equal to 1.00% of his recaptured Contributions during Plan Years 2014, 2015 and 2016. The Contributory hours worked are combined with the Recaptured Contributory Hours for purposes of applying the vesting credit schedule.
Roger’s Monthly Benefit Earned Including Recaptured Contributions, Plan Years 2014 to 2016
Plan Year 2014 (1.00% accrual rate) $14,400 x 1.00% = $144.00 (current & recaptured)
Plan Year 2015 (1.00% accrual rate) $ 3,200 x 1.00% = $32.00 (current & recaptured)
Plan Year 2016 (1.00% accrual rate) $19,800 x 1.00% = $198.00 (current & recaptured)
Total Monthly Benefit Earned $374.00
Forfeited Past Benefit and Past Vesting Service are not eligible for recapture. Service before you established Participation is eligible for recapture, if there is no intervening Break-in-Service.
Recaptured Benefit Service is payable at the times explained in Section 4, When You May Retire, without regard to the Appendices.
Recaptured Vesting and Benefit Service does not count toward:
- The Contributory Years of Service and the Contributory Hours that are required to qualify for an Early or Rule of 85 Retirement benefit;
- The Contributory Years of Service and Contributory Hours required to qualify for retirement forms and/or benefit accruals under Appendix C or Appendix H;
- The initial 500 Contributory Hours required in a Plan Year beginning July 1, 2001 or later to trigger recapture;
In addition, the recaptured amount will be reduced by the value of any amounts you received or may receive pursuant to a court-approved settlement, judgment or order.