Spoiler alert: The application of earned excess hours work the same way as they always have!

Summary: As you are aware, the Pension Plan benefit was enhanced in 2023 to provide additional Pension Accrual Credits whenever a participant works 1,800 or 2,000 hours of work in 2023 and beyond. This is a significant and exciting enhancement as it allows participants to earn greater than one (1) accrual benefit and hence, a greater Pension credit for work performed in 2023 and in future years. This is a very good thing.

However, there seems to be some misinformation floating around about how this enrichment to the Pension Plan accrual provision will affect how excess hours earned prior to January 1, 2023, will be applied. Let me dispel any misconception about this matter.

Simply put, if a participant had excess hours prior to 2023, then they will continue to be utilized to generate additional Pension Credits to help that participant obtain one-Full Pension Credit in any Calendar Year that they have fallen short of doing so.

Further, the rules, provisions, and criteria as it relates to excess hours earned prior to January 1, 2023, and how they are to be applied remain in effect. Meaning; they have not changed. This would include, but is not limited to, the (20) Pension Credits rule, the Rollover provision, and of course, the chronological application of excess hours. The latter of which begins with the participants oldest year of work and goes through the year in which that participant retires.