Section 4 - Vesting and Termination of Employement

4.01 - A Participant's Vested Percentage shall be "none" until the Participant has completed two years of Vesting Service, excluding any service properly excludable under the Break in Service rules and other provisions of Section 4.02. However, for the purpose of determining a Participant's Vested Percentage, Vesting Service will include any period of participation in the Plan during which the Participant is an Employee whether or not the Participant makes contributions to the Plan for such period. When a Participant has completed at least two years of Vesting Service as described above, the Participant's Vested Percentage shall be 100% and the Participant thereafter shall have a non-forfeitable right to his or her Accrued Benefit. As specified in Section 4.06, a Participant's Vested Percentage also shall be 100% upon attainment of age 65 provided such Participant is still participating in the Plan at that time or participates in the Plan until the month immediately preceding the month in which the Participant attains age 65. The terms "vested" and "non-forfeitable" shall have the meaning stated in Section 4.06.

4.02 - Vesting Service is the total number of years (and fractions to the next highest 1/12th) of employment with one or more Participating Employers subject to the following conditions and limitations:

  • The amount of a Participant's Vesting Service as of September 1, 1986, shall be the Participant's total number of years of employment during which the Participant was an active contributor to the Plan.
  • Subject to the other conditions and limitations herein, after August 31, 1986, Vesting Service shall be earned for each period of employment with a Participating Employer. For this purpose, employment with a Participating Employer shall be deemed to terminate pursuant to the provisions of Section 4.03.
  • Except as otherwise provided herein, after August 31, 1986, notwithstanding any other provisions herein, an Employee shall not earn Vesting Service for any period during which such Employee fails or declines to make the required Employee contributions under this Plan.
  • Notwithstanding (b) and (c) above, a Participant shall continue to earn Vesting Service, effective September 1, 1986, even though absent from work as a result of being Disabled, as defined in Section 1.20 if the Participant is receiving (or is eligible to receive after a waiting period) disability benefits under Section 6.06, under an Employer-sponsored long-term disability income plan (including disability benefits under Workers' Compensation) and/or under the Canada Pension Plan.
  • After August 31, 1986, if a former Employee resumes employment with a Participating Employer before incurring a Break in Service, for the purpose of determining such Employee's Vested Percentage and not for the purpose of determining the Accrued Benefit in Section 1.01, the Employee's Vesting Service shall be computed as if the interruption of employment with Participating Employers had not occurred.

4.03 - An Employee's employment with a Participating Employer shall be considered terminated as of the date the Employee ceases to render active service to the Participating Employer, subject to the following:

  • Except as otherwise provided herein, employment shall terminate on the date a Participant ceases to be employed by a Participating Employer (and does not continue employment without a break in continuity with any other Participating Employer) because the Participant resigns (or retires), is discharged or dies.
  • During the normal summer vacation period, and any other regular vacation period, when regular work is not expected of an Employee by a Participating Employer, the Employee shall retain his or her status as an active Employee of a Participating Employer, regardless of other temporary employment during such period, provided such Employee has been engaged by a Participating Employer for and actually begins active service as an Employee at the end of such vacation period. If, at the end of the vacation period, the Employee fails, for any reason, other than those enumerated in (a) above, to resume the active service for which such Employee had been engaged, the Employee's employment with a Participating Employer shall be considered to have terminated as of the beginning of such vacation period.
  • If an Employee renders to a Participating Employer the services expected during the regular school year but has not been engaged by any Participating Employer for work during the following school year, such Employee's employment with a Participating Employer shall be considered terminated as of the date no further active services are expected of the Employee by any Participating Employer. If the circumstance described in the preceding sentence occurs during the Participant's second year of Vesting Service, the Participant's Vested Percentage shall be 100% notwithstanding (b) above.

4.04 - If, for any reason other than death, the employment of a Participant with any and all Participating Employers is terminated before Retirement and while such Participant has a Vested Percentage of "none", the following rules shall apply in the determination of the Participant's rights under the Plan:

  • If the Participant subsequently becomes an Employee of a Participating Employer, the Participant shall resume participation in the Plan immediately. The Participant's Vesting Service shall be determined under Section 4.02 and the Participant's Credited Participating Service shall be determined under Section 3.
  • The Participant's options with respect to the Contribution Account shall be governed by Section 5.06.

4.05 - If for any reason other than death, the employment of a Participant terminates after accruing a Vested Percentage of 100%, the Participant's rights shall be governed by Section 5.07 and Sections 6 and 7.

4.06 - A Participant's right to an Accrued Benefit shall be non-forfeitable upon the earlier of the Participant's Normal Retirement Date and the date the Participant attains age 65.

For purposes of this Plan, the terms "vested" and "non-forfeitable" mean the right of a Participant or Beneficiary to receive a pension commencing at a date permitted hereunder, payable for life only or in some other applicable or elected form. A Participant who does not live to the date benefit payments commence shall not be eligible for a benefit hereunder, except to the extent specified herein with respect to the Surviving Spouse Annuity, the Minimum Benefit, and the Preretirement Surviving Spouse Benefit or as provided in an optional form of payment.

4.07 - Notwithstanding the foregoing provisions of this Section 4, the Employer's share of the cost of pension benefits provided to a vested Participant on death, Termination of Employment or Retirement shall not be less than 50% of the total cost of such benefits. To the extent that the Employer's share is less than 50%, the Participant shall be entitled to an Additional Benefit which may be payable in various forms pursuant to Section 5.07. The present value of the Participant's Additional Benefit shall be equal to the Contribution Account at such Participant's Termination Date less 50% of the Commuted Value of the Accrued Benefit to which the Participant is entitled under the Plan.