Glossary of Terms
Accrued Benefit/Accrued Pension
The amount of your pension, based on your accumulated years of service and the contribution rates paid by your contributing employer(s).
Employers who have agreed to and contribute to the National Pension Plan to fund participants' pension benefits.
The amount your employer contributes to the plan—typically an amount for each hour you work or are paid—to fund your pension benefit.
Certain Expiration Date/Payments—Years/Months
A pension paid for your lifetime with a guaranteed minimum number of payments. In general, payments are made to your beneficiary if you should die before the minimum number of payments are made.
Covered employment is generally work in a job classification in an IAM collective bargaining agreement for which contributions are required to be made to the National Pension Plan on your behalf. Covered employment can also include work in some other job classifications if contributions by the employer to the National Pension Plan are required by a written agreement accepted by the Trustees.
Credited service helps to determine the amount of your pension and eligibility for some types of pensions. It is based on your years of employment recognized under the plan. In some cases, this includes years before your employer was required to make plan contributions on your behalf. There are two types of credited service: future service credit and past service credit.
Defined Benefit Pension Plan
A benefit plan which provides you a known monthly lifetime benefit at retirement based on a formula which typically includes a set dollar amount for each year of service.
Defined Contribution, Savings, or 401(k) Plan
A benefit plan which provides you a benefit that cannot be pre-determined. The amount you receive depends on the amount you contribute, the investment earnings on your contributions, how long you keep your money in the Plan, and when it is withdrawn.
Employment in any industry or geographic area covered by the National Pension Plan at the time of a pensioner’s retirement, if the employment is in any trade or craft in which the pensioner worked at any time after his contribution date.
Early Retirement Age
The age at which you can retire before normal retirement and collect a pension benefit that is reduced to reflect the longer time you will receive benefit payments.
A section of the tax code which allows employees to contribute a portion of their pay into a qualified savings plan before taxes are deducted.
Future Service Credit
Time you work while employer contributions are made to the plan on your behalf.
Joint and Survivor Benefit
A reduced benefit paid to you for your lifetime and a continuing benefit, usually 50% of your benefit, paid to your spouse for his or her lifetime when you die.
Normal Retirement Age
The age at which you can retire and collect an unreduced pension benefit.
Past Service Credit
Time you work before employer contributions are made to the plan on your behalf which count toward the amount of your pension benefit, if granted. Note: Past service credit is no longer granted for groups joining the plan on April 1, 2003 and after.
The ability to continue your credited service, vesting service, and accrued benefit under the Plan when moving from one contributing employer to another.
Predecessor Plan Vesting Service
Years of vesting service under a qualified prior plan that count toward eligibility for National Pension Plan benefits, including the plan's earlier unreduced benefit.
Projected Monthly Pension
The estimated amount of your pension benefit that you will have earned on a specified date assuming you meet all age and service requirements.
Rate of Return
Rate, usually stated in an annual or monthly percent, of interest, dividends or other earnings received on investments.
Pension benefit which you have an irrevocable right to receive.
A measure of service, typically based upon earning a certain number of hours per year, which counts toward vesting or eligibility for a benefit.