SDC-LEAGUE PENSION PLAN
The SDC-League Pension Plan is also a multi-employer Plan that is maintained and operated according to collective bargaining agreements between contributing employers and SDC, subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). The Plan provides participants with five or more years of service (certain restrictions apply) an annual lifetime pension benefit beginning at normal retirement age (65). The amount of the pension depends primarily on the amount of employer contributions that were made on your behalf over the years, as well as when the work was done.
If you have worked under SDC covered contracts in each of five Plan years (a Plan year runs from September through August), you are vested in the Fund and guaranteed a pension at age 65. The five years do not have to be consecutive. However, if you have one or two credits followed by five years with no contracts, you will lose your prior credits. If you have three or four credits followed by ten years with no credits you will lose your prior credits. If all of your SDC employment occurred prior to September 1, 1999, seven-year vesting is required.
THE AMOUNT OF YOUR PENSION
The amount of your pension depends primarily on the amount of employer contributions that were made on your behalf over the years. To determine your annual pension, your contribution total is multiplied by the percentage in effect when you were employed. The current rate is 28%, for all participants for work performed on or after March 1, 2006, and 35% for work performed between September 1, 2001 and February 28, 2006.
In response to market conditions, the Trustees have put in place a Market Adjustment Reduction for work done on or after February 1, 2009. For work done between February 1, 2009 and February 28, 2010 you will accrue benefits under the Plan by applying the 28% accrual rate to 70% of the contributions made on your behalf. For work done on or after March 1, 2010, the 28% accrual rate will be applied to 35% of the contributions due on your behalf.
John Smith worked in a total of 10 plan years, and works his last year in 2010. Total contributions due on his behalf amounted to $60,000.
$30,000 was due prior to March 1, 2006
$15,000 was due between March 1, 2006 and January 31, 2009
$10,000 was due between February 1, 2009 and February 28, 2010
$5,000 was due after March 1, 2010
John’s pension is calculated as follows:
$30,000 x 35% = $10,500
$15,000 x 28% = $4,200
$10,000 x 28% x 70% = $1,960
$5,000 x 28% x 35% = $490
$17,150 / 12 months = $1,429.16/month (which gets rounded to $1,430)
Assuming no additional provisions were made for a beneficiary, John would receive a pension of $1,430/month beginning in the month following his 65th birthday and continuing for the rest of his life.
All employer contributions rates are determined through collective bargaining, for each of the SDC Minimum Basic Agreements. The specific dollar amount paid in for a given job may vary depending not only on the contribution rate, but also the amount of your compensation and the length of the run of the production. You may request a summary of your pension credits at any time by calling (212) 391-1070 ext. 242 or by emailing Pension@SDCweb.org.
These descriptions are SUMMARIES ONLY. For more complete information, please consult your Summary Plan Description, or contact the Contract Affairs Funds Liaison at (212) 391-1070 ext. 242 or (800) 317-9373. You may also contact the Fund’s Third Party Administrator, Benserco, Inc. at (201) 947-8000. Email us at Pension@SDCweb.org.
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