› If you came into the Fund as an employee of a new contributing employer, there may have been a limit on the ANOTHER EXAMPLE amount of past service credit that was granted. Howard had four years of vesting service when he left covered › If you do not have 600 hours of service in 1995 or later, or employment in 1991. He then had five consecutive one-year at least 60 months of future service credit, and you do not breaks in service (1992 through 1996). Howard has a perma- meet the three-year test rule requirements (as summa- nent break in service and loses all of his vesting service and rized under If Past Service Credit Was Granted, When Do credited service and his participation in the Fund is terminated. You Qualify for It? on page 9). If he returns to covered employment in 1997 or later, he will When You Can Lose Vesting Service or Credited Service have to start over as a new Fund participant. You can lose your vesting service and credited service if you have a permanent break in service. However, once you are vested, you Once you have met all the requirements for a normal, early, or cannot lose your vesting service, future service credit, credit- vested deferred pension, you cannot have a permanent break ed service, or your right to a pension from the National Pen- in service. sion Fund. See page 8 to determine when you are vested. What Is a Permanent Break in Service? YOU’RE THINKING ABOUT You can lose your service and your participation in the Fund if you RETIRING — HOW MUCH WILL have a permanent break in service. This occurs when you have five consecutive one-year breaks in service before you are vested. YOUR PENSION BENEFIT BE? A one-year break in service occurs in any year in which you do not The amount of your monthly pension benefit depends on these complete at least 375 hours of service. For this purpose, hours of factors: service are determined in the same way as described on page 7. › How old you are when you retire. Authorized periods of family and medical leave will not count as a › How many years of credited service you have. one-year break in service, to the extent required by the Family and › The last date you worked in Covered Employment. Medical Leave Act (FMLA). › The contribution rates paid on your behalf while If you do not have a permanent break in service before January 1, you are a Fund participant. 1991 under your prior plan but you were not vested under your › The schedule of benefits that apply to your prior plan, you have a permanent break in service under the Na- contribution rates. tional Pension Fund and your prior plan if you have five consecu- › What form of payment you choose. tive one-year breaks in service, including breaks in service under › Whether you are covered by the Preferred Schedule or the your prior plan. Default Schedule. For years before 1991, you have a permanent break in service if In this section, we’ll describe the various types of pensions avail- you had a permanent break under your prior plan. See your prior able, and the benefit amounts payable to you if you have an hour plan SPD. of service on or after January 1, 1991. See page 7 for the definition of an hour of service. ACTUARIAL PRESENT VALUE FOR EXAMPLE The term actuarial present value is used occasionally in this Summary Paul had three years of vesting service when he left covered em- Plan Description. It refers to a single dollar value placed on benefits ployment in 1992. He had three consecutive one-year breaks in expected to be payable, based on projections of life expectancy and service in 1993, 1994 and 1995. He returns to work in covered future investment earnings, and the terms of the Plan Document. employment in 1996. Since Paul did not have five consecutive NORMAL PENSION one-year breaks in service, he does not have a permanent break in service. He can add his three years of vesting service before the You are eligible to receive a normal pension if: one-year breaks to any additional vesting service he then earns. › You are at least 65, and \\ How Much Will Your Pension Benefit Be? 10