Opinion ID: 437632
Heading Depth: 2
Heading Rank: 2

Heading: The Fund Pensions

Text: 5 In 1967, FINAST entered into an agreement with the Fund for the Fund to provide pension benefits for certain of its employees. FINAST thereby became a contributing employer, and a group of its employees, including Reilly, was allowed to elect to be covered by the Fund pension plan by waiving their rights under the FINAST pension plan. (Stipulation p 7.) Reilly executed such a waiver and elected pension coverage under the Fund. 6 The Fund provided several types of pensions with varying amounts of benefits for employees of contributing employers. The Normal Pension was available to an employee who, inter alia, had attained the age of 60 years and had at least 25 years of credited service. Credited service included past service, i.e., that rendered prior to the employer's joining the fund; a year of past service was defined as at least 135 days of work in a calendar year. 7 A Reduced Pension was available to an employee who, inter alia, had attained the age of 60 and had at least 15 years but less than 25 years of credited service. The Reduced Pension amount was that proportion of the Normal Pension amount that the number of years of credited service bore to 25. For example, if an employee had 17 years of credited service, his Reduced Pension would be 17/25 of the Normal Pension amount. 8 An Early Retirement Pension was available to an employee who, inter alia, had attained the age of 52 years but was under the age of 60, and who had at least 15 years of credited service. The Fund's plan showed specified percentage reductions from the Normal or Reduced Pension amounts tied to the age of early retirement. Early retirement at age 59, for example, meant a 6% reduction from the Normal or Reduced Pension amount; early retirement at age 52 meant a 40% reduction. 9 A Minimum Thirty Year Service Pension (hereinafter 30-Year Plan) was available to an employee who, inter alia, had at least 30 years of credited service and who did not qualify for any higher pension benefit from the Fund. The amount of the 30-Year Plan benefit was 75% of the Normal Pension benefit amount. 10 An employee's right to a Fund pension vested when he had attained 52 years of age and had 15 years of credited service with contributing employers. 11 In 1976, in anticipation of his 52nd birthday, Reilly applied for early retirement benefits under the 30-Year Plan, to be effective in 1977. The Fund denied his application on the ground that he was not entitled to credit for the years 1958 and 1959 and hence did not have the required 30 years of service. (Stipulation paragraphs 9-11.) Had Reilly received credit in the computation of his pension eligibility for the time he spent in military service in 1958 and 1959, he would have been eligible for full pension benefits under the Fund's 30-Year Plan. (Stipulation p 12.)