SUMMARY OF MATERIAL MODIFICATIONS November 2024
Thursday, October 31, 2024
SUMMARY OF MATERIAL MODIFICATIONS
PENSION IMPROVEMENTS EFFECTIVE JANUARY 1, 2025
November 2024
Dear Participant:
This notice, referred to as a Summary of Material Modifications (SMM), describes important changes to the benefits provided by the National Automatic Sprinkler Industry (NASI) Pension Fund. We encourage you to read this notice carefully and to keep it with your Summary Plan Description (SPD) and Plan Document (Plan).i If you have any questions, please contact the Fund Office.
Increase in the Value of Pension Credits from $140 to $145
The Trustees are pleased to announce –
- The benefit rate for Pension Credits earned during the 2024 Plan Year will increase from $140 to $145 for all Participants who establish a Pension Effective Date on or after January 1, 2025; and
- The benefit rate per Pension Credit earned for Plan Years commencing on and after January 1, 2025, will increase from $140 to $145.
This improvement does not apply to Pension Credits earned before January 1, 2024, under any circumstances.ii
2.5% Benefit Increase for Pensioners and Beneficiaries Receiving a Pension on December 31, 2024
The Trustees are also pleased to announce that all Pensioners and Beneficiaries receiving a monthly benefit from the NASI Pension Fund as of December 31, 2024, will receive a 2.5% increase to the gross amount of their monthly benefit effective January 1, 2025. For clarity, to be eligible for this improvement, you must establish a Pension Effective Date on or before December 1, 2024, meaning that your pension application must be postmarked (or received by the Fund Office) no later than November 30, 2024.
If you are eligible for this benefit improvement, you should expect to see the above-mentioned increase beginning with your January 2025 pension payment (scheduled for distribution on or around January 31, 2025). Additional details regarding eligibility for this improvement and the impact of this improvement may be found on the following page of this correspondence.
The Trustees believe that the NASI Pension Fund plays an important role in your retirement security and are proud to be involved in its continued operation. As always, if you have any questions about this correspondence, or the Fund in general, please feel free to contact the Fund Office.
ADDITIONAL INFORMATION REGARDING THE 2.5% INCREASE FOR PENSIONERS AND BENEFICIARIES
- In General. Pensioners and Beneficiaries receiving a monthly benefit from the Fund as of December 31, 2024, will receive a 2.5% increase to the gross amount of their monthly benefit effective January 1, 2025. This increase will apply to pension payments made for January 2025 and each month thereafter.
For example, let’s assume that retired sprinkler fitter, James Mason, commenced his pension with an Effective Date on or before December 1, 2024. Let’s further assume that his gross monthly benefit from the Fund – before taxes or deduction for retiree health coverage (if applicable), and with reduction (if any) based on Mr. Mason’s age at retirement and form of benefit chosen at retirement – is $3,000 per month. Consequently, Mr. Mason’s gross monthly benefit will increase from $3,000 to $3,075 (2.5% x $3,000 = $75) effective January 1, 2025. Accordingly, Mr. Mason’s gross monthly pension payment for January 2025 and for each month thereafter for Mr. Mason’s remaining lifetime will be increased to $3,075.
Separately, if Mr. Mason’s form of benefit provides for a monthly survivor benefit to his surviving Spouse or designated Beneficiary (if any), the monthly survivor benefit payments will be based on his updated monthly benefit amount of $3,075. For instance, let’s assume that Mr. Mason is married and chose the 50% Joint-and-Survivor Pension payment form at retirement. This payment form provides Mr. Mason’s surviving Spouse, assuming he predeceases his Spouse, a lifetime benefit equal to 50% of the amount he was receiving during retirement. Therefore, if Mr. Mason dies before his Spouse, his Spouse will receive $1,537.50 (50% x $3,075) per month for the Spouse’s remaining lifetime.
- Deceased Pensioners and Beneficiaries. In general, Pensioners and Beneficiaries eligible for the 2.5% increase to their gross monthly benefit must be living as of January 1, 2025, to be eligible for the 2.5% increase. However, if such a Pensioner or Beneficiary is not alive on January 1, 2025, the 2.5% increase shall apply to the monthly survivor benefit payable, if applicable, to the individual’s surviving Beneficiary, if any. (In no event will any payment be made to the estate of any Pensioner or Beneficiary.)
For example, let’s assume that retired sprinkler fitter, Michelle Melvin, commenced her pension with an Effective Date on or before December 1, 2024, and passed away before the end of 2024. Let’s further assume that Ms. Melvin was married and chose the 50% Joint-and-Survivor Pension payment form at retirement. Under these circumstances, Ms. Melvin’s surviving Spouse will receive a 2.5% increase to the gross amount of the monthly survivor benefit.
- Impact of Disqualifying Employment. Pensioners receiving a monthly benefit from the Fund as of December 31, 2024, whose benefit is presently suspended for working in Disqualifying Employment, will receive their 2.5% increase to their gross monthly benefit upon leaving such employment and recommencing their pension.
- Impact of Additional Pension Credits Accrued after Retirement and before December 31, 2024. Pensioners who commenced their monthly benefit with an Effective Date on or before December 1, 2024, returned to work in Covered Employment thereafter, and accrued additional Pension Credits through such employment, will have their 2.5% increase applied to the value of their monthly pension benefit calculated as of December 31, 2024.
i This SMM is intended as a non-technical summary of certain changes to the rules of the NASI Pension Fund, so it does not contain all the details. It modifies the information set forth in the Fund’s SPD that was previously provided to you. In the event of a discrepancy between this SMM and the Plan, the Plan, as interpreted and applied solely by the Trustees pursuant to their exclusive discretionary authority, will prevail. The Trustees reserve the right to modify the Plan and the benefits offered by the NASI Pension Fund at any time.
ii For clarity, the benefit rates per Pension Credit earned during prior Plan Years remain unchanged and are ineligible for upward adjustment to $145 through the improvement summarized in this SMM or any other Plan provision, including but not limited to the Plan’s Break-in-Continuity rules.