D. Allocation of Transferred Contributions

If you work under a collective bargaining agreement in the jurisdiction of another IBEW Local Union, your Employer's contributions under that agreement will be made on your behalf to that Local Union's pension fund. A reciprocal agreement permits contributions that are reported to the other pension fund to be transferred to this Pension Fund, and vice versa, if applicable. This is known as Money Follows the Person Reciprocity. The following summarizes how those funds are allocated.

1. Allocation Under Standard Reciprocity
   Standard reciprocity occurs when a Participant of this Plan is dispatched by a different IBEW Local Union to a job in that Local Union's geographic area and the individual authorizes transfer of contributions in accordance with the Electrical Industry Pension Reciprocal Agreement or pursuant to an individual reciprocal agreement with that Local Union's pension plan.
   
   Reciprocal contributions are first allocated to the "like" Plan (defined benefit to this Plan and defined contribution to the NCEW Money Purchase Pension Plan), up to the hourly contribution limit set forth in the IBEW Local 6 - SFECA Collective Bargaining Agreement (or other IBEW Local 6 Collective Bargaining Agreement, if any. Any excess amounts are then allocated to the "non-like" Plan. If the reciprocal contribution is in excess of the amount required to satisfy the contribution requirements of both Plans, the excess will be allocated to your NCEW Money Purchase Pension Plan Individual Account.


2. Allocation Under Portability Agreement – Differential Contributions
   An exception to these allocation rules applies to Participants who are sent by their contributing Employer to another area under a portability agreement for whom a differential contribution (representing the difference between the contribution required under the collective bargaining agreement covering the jurisdiction where the Employee is working and the rates established in the IBEW Local 6 Collective Bargaining Agreement) is to be paid directly to IBEW Local 6's Funds.
   
   For these Participants, reciprocal contributions will be credited on a pro rata basis, based on the relationship the defined benefit and defined contribution plan rates bear to the total IBEW Local 6 pension contribution. For example, the current Inside Wireman pension contribution of $6.85 consists of a $3.04 money purchase rate, representing approximately 44% of the total contribution, and a $3.81 defined benefit rate, representing approximately 56% of the total contribution. For each $1.00 transferred to the Fund, $0.44 will be allocated to the Defined Contribution Plan and $0.56 will be allocated to this Plan.
   
   As a result of this procedure, the combination of the differential contribution paid directly to Local 6's Funds and the contributions transferred under the Electrical Industry Pension Reciprocal Agreement will be equal to the total hours the Participant worked times the pension rate established in the IBEW Local 6 Collective Bargaining Agreement.