The Western Conference of Teamsters Pension Trust

This section explains the process of retiring from work and applying for benefits. It tells you what you need to know when choosing a pension effective date and deciding how your retirement benefits are paid.

Topics below:

Receiving Plan Benefits
Early Retirement Benefits—Before Age 65
Disability Retirement Benefits—Before Age 65
Normal Retirement Benefits—Ages 65 to 70
How to Apply for Benefits
Appeal Procedures
Choosing a Pension Effective Date
How Retirement Benefits are Paid
Choosing Your Benefit Payment Options
Employee and Spouse Pop-Up
Divorce or Marriage After Retirement
Optional Lump Sum Death Benefit
Making Your Pension Choices

Receiving Plan Benefits

Before you can start receiving benefits:

You must retire from employment (unless age 65 or older or totally and permanently disabled).
You must apply for benefits with your Area Administrative Office.
You must qualify for benefits.
The Trustees must approve your application.

Early Retirement Benefits—Before Age 65
To begin receiving early retirement benefits, you must be considered “retired from employment”. Early retirement means you are retiring before age 65. Other eligibility requirements are explained in the Early Retirement section.

Disability Retirement Benefits—Before Age 65
To begin receiving disability retirement benefits, you do not need to be “retired from employment.” But you must be totally and permanently disabled and entitled to receive disability benefits under the federal Social Security Act.

There are other eligibility requirements for disability retirement explained in the Disability Retirement section. For information about your Social Security disability benefits, contact your local Social Security Administration office.

Normal Retirement Benefits—Ages 65 to 70
To begin receiving normal retirement benefits, you do not need to be “retired from employment.” You just need to be age 65 or older.

You can start your pension benefits no matter how many hours you are working. You still must complete and file an application for benefits. See below on How to Apply for Benefits.

Important Note: Your collective bargaining agreement may control whether you can still continue your covered work after you start receiving your pension benefits. Many contracts have rules that concern loss of seniority or other rights at retirement.

Be sure to find out about these rules beforehand from your local union or employer if you are age 65 or older and intend to keep working for the same employer after your pension starts.

How to Apply for Benefits

When you are ready to retire, you need to file an application for benefits with your Area Administrative Office. You can request an application packet from your Area Administrative Office or local union.

Your application packet contains two forms. The first is called the Age/Disability Application. All participants must complete this form. On this form, you select the pension you are applying for (age retirement, disability retirement or both) and the pension effective date you want. You must also provide personal data on this form (such as your mailing address and information about your employment history).
Your application cannot be processed until your Area Administrative Office receives your signed and dated Age/Disability Application.

The second form is the Certification of Complete Severance and Termination of Employment. If you are under age 65 and applying for early retirement benefits, this form must also be completed. It has two sections—one that you complete and another that your last covered employer must complete. Your early retirement application cannot be processed until your Area Administrative Office receives both signed and dated forms.

It normally takes about three months to process your application. Benefit payments cannot start until your application is processed and approved. If your application is approved after your pension effective date, you receive benefit payments retroactive to your pension effective date.

If you file your retirement application after you retire from employment or after you reach age 65, you can request that your benefit payments go back to the beginning of the month following the date you retired from employment (or became age 65 if earlier) or you can choose a later pension effective date.

However, under the Plan’s retro payment rule, your benefit payments cannot go back more than two calendar months from the date your Area Administrative Office receives your application (three calendar months if your application is received on the first day of the month). Click here for a chart showing how the retro payment rule works.

For example, if you retire from employment on June 30, you can choose to have your pension begin July 1 (your pension effective date) as long as your application is received by the following October 1.

If your application is received later in October, your pension payments can only go back to August 1. Of course, you can always choose a later pension effective date (up to your 70th birthday).

If you are age 70 or older when you file your retirement application, your pension payments go back to the beginning of the month following your 70th birthday.

Applying for Disability Retirement Benefits
The best time to apply for Plan disability retirement benefits is when you apply for disability insurance benefits from Social Security. You do not need to wait for your entitlement letter from Social Security before applying for Plan benefits.

Also, if you are age 55 or older, or eligible for early retirement under PEER, you should check both the “Age” and “Disability” boxes on the Age/Disability Application you send to your Area Administrative Office. That way, your application for age retirement benefits can be processed while you wait for your Disability Award Certificate from Social Security.

If you meet all Plan eligibility requirements for early retirement, you can begin receiving age retirement benefits to cover Social Security’s five-month disability waiting period and any period of delay in Social Security’s processing of your application for disability benefits.

Once Social Security approves your application and you provide your Area Administrative Office with a copy of your Disability Award Certificate, your application for a disability retirement benefit can be approved (assuming all Plan eligibility requirements are met).

If the amount of your disability retirement benefit is greater than your early retirement benefit, your monthly benefit payments are adjusted to the higher amount retroactive to the effective date of your disability retirement benefit.

Important Documents
Before benefit payments can begin, you must provide your Area Administrative Office with satisfactory proof of your birth date, and if married, your marriage certificate and proof of your spouse’s birth date.

The best proof of a birth date is a birth or baptismal certificate. If neither is available, see the list for other acceptable documents or contact your Area Administrative Office about what other proof is acceptable.

Your Plan may also require more information such as proof of employment. You can file an application before you have all the proof needed for payment of benefits.

Don’t delay applying for benefits just because you do not have all the documents you need.

Appeal Procedures

If your application for benefits is denied, your Area Administrative Office notifies you in writing of the reasons for the denial. The notice also explains how you can appeal this decision.

Click here for details about your Plan’s appeal procedures.

Choosing a Pension Effective Date

Your pension effective date is the date when your Plan benefits are first payable. It must be the first of the month. Other rules affecting your choice of pension effective date are explained below.

Early Retirement (Before Age 65)
You can choose to start your retirement benefit on the first of any month after you are eligible for early retirement and are considered retired from employment.

Usually, you become eligible for early retirement on your 55th birthday (sometimes called your earliest retirement date). However, if you are not vested when you reach age 55, your earliest retirement date is postponed until the first of the month after you vest. You may be able to retire before age 55 if you qualify for the Rule of 84 or a PEER program. Click here for more information.

Disability Retirement (Before Age 65)
You can choose to start your disability retirement benefit on the first of any month after you meet all the qualifications for Plan disability benefits. The date cannot be before your disability entitlement date as determined by Social Security assuming you meet all other eligibility requirements. The entitlement date is printed on your Social Security Disability Award Certificate. In some instances it takes Social Security several months to determine your eligibility for benefits.

Your Plan’s disability retirement benefits are not subject to the retro payment rule and can be paid retroactive to the effective date of your Social Security disability benefit.

Normally, you would choose the earliest possible effective date for your Plan’s disability retirement benefit. But if you are within a few months of meeting the age requirements for unreduced early retirement benefits under a PEER program, you may want to postpone your pension effective date until you qualify for PEER retirement (so that your disability retirement benefit will be paid at 100%). Contact your Area Administrative Office for more information.

Note: Special procedures may apply to handling your application for a disability retirement benefit. Click here for more information.

Normal Retirement (From Ages 65 to 70)
Once you reach your normal retirement date, you can choose to start your retirement benefit on the first day of any later month up to your 70th birthday. Click here for more information.

Usually, you become eligible for normal retirement on your 65th birthday. However, if you are not vested when you reach age 65, your normal retirement date is postponed until you become vested. Click here for special vesting rules for participants age 65 and older.

Automatic Retirement (Age 70 and Older)
Once you reach age 70, you must start drawing your retirement benefits even if you are still working. Your pension effective date cannot be later than the first of the month following your 70th birthday.

If your 70th birthday falls on the first of a month, your pension effective date cannot be later than the first of that month.

Note: If you are not vested when you reach age 70, your pension effective date is postponed until you become vested. Click here for details on special vesting rules for participants who enter the Plan after age 65.

To avoid substantial tax penalties, you should file your application no later than your 70th birthday. This allows enough time for your Area Administrative Office to process your application so your actual pension payments can start well before April 1 following the year when you turn age 70 1/2.

If you miss this deadline and are no longer working, the Internal Revenue Service can impose substantial tax penalties on you. Click here for more information.

If you are near age 70 (or older) and not yet receiving your pension, contact your Area Administrative Office immediately.

How Retirement Benefits are Paid

Your Plan offers several choices on how your retirement benefits are paid.

Benefits for Your Lifetime Only

Life Only Pension
Life Only Pension with Benefit Adjustment Option

Benefits for Your Lifetime and Your Spouse’s after Your Death

Employee and Spouse Pension
Employee and Spouse Pension with Benefit Adjustment Option

Choosing Your Benefit Payment Option

After you apply for retirement benefits, your Area Administrative Office sends you a Benefit Election Form. You use this form to choose how you want your benefit paid and to confirm your pension effective date.

The form explains the benefit payment options available to you and the procedures you must follow to choose the benefit payment option you want. If you are married, your spouse’s written consent to your choice of payment option may be required.

You must complete and return this form (and the Spousal Consent Form if required) to your Area Administrative Office before benefits can begin.

Remember, it usually takes about three months to process your application before you receive your first benefit payment.

Life Only Pension
The life only pension pays a set monthly benefit for your lifetime only. The monthly benefit amount stops at your death. No lifetime benefits continue to your spouse or beneficiary after your death.

If you have recent coverage when you retire, your Plan beneficiary may qualify for a four-year certain death benefit. Also, if you choose the optional lump sum death benefit at retirement, your beneficiary receives that benefit after your death.

Single—If you are single on your pension effective date, your benefit is automatically paid this way (unless you choose another form of payment listed on your Benefit Election Form).

Married—If you are married, you can choose the life only pension instead of the employee and spouse pension as long as your spouse provides written consent.

Example: Choices of Life Only Pension

Assume you retire at age 55 and qualify for an early retirement benefit of $1,500 per month. You can choose to have a life only pension paid in any one of three ways.

LIFE ONLY PENSION
$1,500 for the rest of your life

BENEFIT ADJUSTMENT OPTION TO AGE 62
$1,633 to age 62 and
from age 62, $1,393 for the rest of your life

BENEFIT ADJUSTMENT OPTION TO AGE 65
$1,624 to age 65 and
from age 65, $1,324 for the rest of your life

Lump Sum Pension Payment
Most participants receive retirement benefits as monthly pension amounts. If the total value of your expected lifetime benefits is $5,000 or less, you receive the value of your benefits in a single payment rather than as a monthly amount.

If the total value of your expected lifetime benefits is between $5,000 and $10,000, you can choose (with your spouse’s consent, if married) to receive the value of your benefits in a single payment rather than as a monthly amount. In either case, if you receive this lump sum payment, no further payments are made to you or your survivors.

Life Only Pension With Benefit Adjustment Option
The life only pension with benefit adjustment option is available if you are eligible for early retirement. This benefit payment option is not available if you are taking disability retirement before your earliest retirement date (usually age 55).

With the benefit adjustment option, you receive an increased life only pension until age 62 or age 65, whichever age you choose. The actual increase depends on your age on your pension effective date and whether you want the increase to stay in effect until age 62 or age 65.

Click here to see how your monthly benefit is reduced if you want the increase to stay in effect until age 62.

Click here to see how your monthly benefit is reduced if you want the increase to stay in effect until age 65.

If you choose this option, the monthly benefit you receive after age 62 or age 65 is reduced. If you choose age 62, your monthly benefit is reduced by $240 at that age. If you choose age 65, your monthly benefit is reduced by $300 at that age.

If you choose the life only pension with benefit adjustment option, you receive a monthly benefit for your lifetime only. The monthly benefit amount stops at your death. No lifetime benefits continue to your spouse or beneficiary after your death.

If you have recent coverage when you retire, your Plan beneficiary may qualify for a four-year certain death benefit. Also, if you choose the optional lump sum death benefit at retirement, your beneficiary receives that benefit after your death.

Single—If you are single on your pension effective date, you can choose the life only pension with benefit adjustment option, if available, instead of the life only pension.

Married—If you are married, you can choose the life only pension with benefit adjustment option, if available, instead of the employee and spouse pension (explained next) as long as your spouse provides written consent.

Employee and Spouse Pension
If you are married on your pension effective date and do not choose a different benefit payment option, your retirement benefit is paid as an employee and spouse pension. With the employee and spouse pension, you receive a monthly benefit for your life that is less than you would receive under the life only pension.

If you die before your spouse, a portion of your reduced monthly benefit is paid for the rest of your spouse’s life. The benefit your spouse receives is called the spouse lifetime pension.

The reduction in your lifetime benefit depends on your age and your spouse’s age on your pension effective date. Also, the benefit payable to your spouse depends on whether you have recent coverage when you retire.

Click here for a chart showing employee and spouse pension factors.

If you have recent coverage at retirement, your spouse receives 66 2/3% of your monthly employee and spouse pension. Otherwise, your spouse receives 50% of that amount. Remember, while you are alive your spouse does not receive any benefit payments.

If you choose the employee and spouse pension, you can also choose the optional lump sum death benefit so your Plan beneficiary receives a death benefit after your death.

Employee and Spouse Pension With Benefit Adjustment Option
The employee and spouse pension with benefit adjustment option is available if you are married and eligible for early retirement. This benefit payment option combines features of both the life only pension with benefit adjustment option and the employee and spouse pension. This option is not available if you are taking disability retirement before your earliest retirement date (usually age 55).

With the benefit adjustment option, you receive an increased employee and spouse pension until age 62 or age 65, whichever age you choose.

As a first step, your Plan representatives calculate what your monthly benefit would be if you chose the employee and spouse pension without the benefit adjustment option. Then they calculate the increase in your monthly benefit under the benefit adjustment option. The actual increase depends on your age on your pension effective date and whether you want the increase to stay in effect until age 62 or age 65.

Click here to see how your monthly benefit is reduced if you want the increase to stay in effect until age 62.

Click here to see how your monthly benefit is reduced if you want the increase to stay in effect until age 65.

If you choose the benefit adjustment option, the monthly benefit you receive after age 62 or age 65 is reduced. If you choose age 62, your monthly benefit is reduced by $240 at that age. If you choose age 65, your monthly benefit is reduced by $300 at that age.

You can provide a lifetime benefit for your spouse after your death by choosing either the employee and spouse pension or the employee and spouse pension with benefit adjustment option.

If you have recent coverage at retirement, your spouse’s lifetime benefit is higher.

The employee and spouse pension with benefit adjustment option provides your spouse with a lifetime benefit should you die first. The amount of your spouse’s benefit is determined as if you chose the employee and spouse pension without the benefit adjustment option and depends on whether you have recent coverage at retirement.

If you have recent coverage at retirement, your spouse receives 66 2/3% of your monthly employee and spouse pension without the benefit adjustment option. Otherwise, your spouse receives 50% of that amount. Remember, while you are alive your spouse does not receive any benefit payments.

If you choose the employee and spouse pension with benefit adjustment option, you can also choose the optional lump sum death benefit so your Plan beneficiary receives a death benefit after your death.

Employee and Spouse Pop-Up

If you choose an employee and spouse pension (with or without benefit adjustment option) and your spouse dies before you, your monthly benefit is increased for the rest of your life. This feature is called a “Pop-Up.” Your monthly benefit increases or pops up on the first of the month following your spouse’s death.

When this Pop-Up occurs, your monthly benefit increases to the amount you would have received under the life only pension. If you choose the employee and spouse pension with benefit adjustment option, your benefit increases to the amount you would have received under the life only pension with benefit adjustment option.

Since Plan representatives won’t necessarily know about your spouse’s death, notify your Area Administrative Office as soon as possible. You will need to provide a copy of your spouse’s death certificate.

If you die first, your spouse receives a portion of your employee and spouse pension. Click here for more information.

Divorce or Marriage After Retirement

If you marry or remarry after your pension effective date, your new spouse does not qualify for a spouse lifetime pension.

If you choose an employee and spouse pension and later divorce, your employee and spouse pension stays in effect. Your former spouse remains the person who receives the spouse lifetime pension after your death.

This rule may not apply if a court enters a Qualified Domestic Relations Order (QDRO) that provides for conversion of your employee and spouse pension to a life only pension and certain other requirements are met. Contact your Area Administrative Office for details. Click here for more information about QDROs.

Optional Lump Sum Death Benefit

You can choose this benefit payment option when you retire so that your Plan beneficiary is assured of receiving a lump sum benefit payment when you die. This death benefit is equal to 12 times the monthly benefit you would receive if you chose the life only pension without benefit adjustment option.

Your monthly benefit (and any benefits based on it) is reduced by a small percentage to provide for this death benefit. The actual reduction depends on your age on your pension effective date. Click here for a chart showing optional lump sum death benefit factors.

If you are married on your pension effective date, you can choose this optional lump sum death benefit as long as your spouse provides written consent.

You can choose the optional lump sum death benefit along with any other available benefit payment option. You do not have to choose the life only pension to provide this death benefit.

If you do not choose this death benefit, no optional lump sum death benefit is paid to your Plan beneficiary after your death.

Example: Sample Death Benefit Calculation
Assume you are age 62 when you retire and your life only pension is $1,500 per month. You choose the optional lump sum death benefit and want to know how this affects your monthly benefit. Your death benefit factor from the chart above is 95.8%. Your life only pension with the death benefit option is $1,437 (95.8% times $1,500).

At your death, your Plan beneficiary receives an optional lump sum death benefit of $17,244 (12 times $1,437).

Making Your Pension Choices

Your pension effective date is the date when your Plan benefits are first payable. It must be the first of the month. Other rules affecting your choice of pension effective date are explained in the previous section.

Filing your retirement application with your Area Administrative Office is just the first step in the retirement process. Once Plan representatives verify your retirement eligibility, you are sent an Option Election Packet containing your personalized Benefit Election Form.

Your Benefit Election Form shows the actual benefit amounts payable under each available payment option based on your age and marital status on your pension effective date. Your Option Election Packet also contains other forms you and your spouse (if married) need to complete and explains how to complete each form.

All of these forms help you make your retirement choices:

Benefit Election Form
Spouse Consent Form
Beneficiary Designation Form
Federal and State Income Tax Withholding Election Forms

Here are a few decisions you’ll make when filling out these forms:

How you would like your lifetime monthly retirement benefit paid.
If you would like to provide a death benefit to your beneficiary.
The name of your beneficiary.
Whether or not you wish federal or state income tax withheld from your benefit.

Documents Acceptable for Establishing Birth Date

Here is a list of documents that your Plan will accept to verify your date of birth:

Option 1. Provide one of the following documents:

Birth Certificate
Baptismal Certificate (child must be under age 7)
Naturalization Record
Copy of record taken from family Bible or other family register of births

Option 2. If none of the above are available, two of the following documents are required. One of the two documents must state the date of birth.

Life Insurance Policy at least five years old (must state birth date or age at time policy issued)
School Age Record (must state birth date or age at time of event)
Confirmation Record (must state birth date or age at time of event)
Certification of Military Service Record (DD-214 only)
Marriage Record (must state birth date or age at time of event)
Original Notarized Affidavit of older relative (must state birth date)
Bureau of Census Report
Child’s Birth Certificate (must state birth date or age at time of event)
U.S. Passport
Baptismal Certificate (if adult)

Option 3. If none of the above are available, provide a letter from the Social Security Administration showing the date of birth accepted for Social Security benefits.

Optional Lump Sum Death Benefit
You can choose this benefit so your Plan beneficiary receives a lump sum payment after your death. If you choose this benefit, your monthly benefit is reduced by a small amount. Click here for more information.

EMPLOYEE AND SPOUSE PENSION
With this option, you receive a reduced monthly pension for your life. If you die first, your spouse receives a portion of your benefit for life. Click here for more information.

EMPLOYEE & SPOUSE PENSION WITH BENEFIT ADJUSTMENT OPTION
This benefit is similar to the one above except your benefit amount is increased until age 62 or age 65. You receive a reduced amount after that. The benefit your spouse receives after your death is calculated as if you chose the employee and spouse pension without the benefit adjustment option. Click here for more information.

LIFE ONLY PENSION
With the life only pension, you receive a set monthly benefit for your lifetime. Click here for more information.

LIFE ONLY PENSION WITH Benefit ADJUSTMENT OPTION
This benefit is available if you are eligible to choose early retirement. Under the benefit adjustment option, you receive an increased benefit until age 62 or age 65 and a reduced amount after that. Click here for more information.

Click here for questions and answers about receiving Plan benefits.