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OPERATING ENGINEERS
TRUST FUNDS

Permanent Break in Employment

Incurring a Permanent Break in Employment if you are not yet vested

You will have a Permanent Break in Employment as follows:

  • Between June 1, 1960 and July 1, 1976: You will have a Permanent Break if you fail to receive credit for 500 hours in each of three consecutive Plan Years. The Permanent Break takes effect on the last day of the third Plan Year.
  • Between July 1, 1976 and July 1, 1979: You will have a Permanent Break if you fail to receive credit for 500 hours in each of three consecutive Plan Years and you fail to receive credit for 500 hours in each of a series of consecutive Plan Years equal to the number of Pension Credits (or multiples of 1,000 hours) previously accumulated. The Permanent Break takes effect on the last day of the last Plan Year in the series of Plan Years used to determine the Permanent Break.
  • Between July 1, 1979 and July 1, 1985: You will have a Permanent Break if you fail to receive credit for 500 hours in each of a series of consecutive Plan Years equal to the number of Pension Credits (or multiples of 1,000 hours) previously accumulated. The Permanent Break occurs on the last day of the last Plan Year in the series of Plan Years used to determine the Break.
  • On and After July 1, 1985: You will have a Permanent Break if you fail to receive credit for 500 hours in each of a series of consecutive Plan Years (not less than five) equal in number to the Years of Service previously accumulated. A Plan Year in which you are credited with at least 1,000 Hours of Service. The Permanent Break occurs on the last day of the last Plan Year in the series of Plan Years used to determine the Break.For Example: Let’s say you have 1,000 Hours of Service in each of the four Plan Years from 2002 through 2005; you will have a Permanent Break if you then have fewer than 500 hours in each of the five Plan Years from 2006 through 2010.

Effects of a Permanent Break in Employment

If you incur a Permanent Break in Employment, all of the Pension Credits and Year of Service earned prior to the Permanent Break will be permanently forfeited and cannot be used to apply for a pension or for any other purpose under the Plan.

Waiving a Permanent Break in Employment

The Trustees may waive a Permanent Break in Employment for the following reasons:

  1. Temporary or Total Disability for more than six months of a Plan Year.
  2. Service in the Armed Forces of the United States or in the Public Health Service of the United States. Contact the Fund Office for detailed rules.
  3. Absence from Covered Service on or after July 1, 1985 due to maternity or paternity leave. This includes your pregnancy, birth of your child, the placement of an adopted child with you or the care of your child after birth or adoption.
  4. Unavailability of work in Covered Service on and after July 1, 1990, provided you have been on Local 12’s out-of-work list, continuously available for work in Covered Service while not working, and have not worked for a Non-Contributing Employer during the Plan Year.

If you believe you qualify for a waiver of a Permanent Break in Employment, contact the Fund Office.

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