Retirement Plan for CTA Employees
and
Retiree Health Care Trust

Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Association

Shall mean both Local 241 and Local 308 of the Amalgamated Transit Union.

Authority

Shall mean Chicago Transit Authority.

Average Annual Compensation

Shall be determined as follows:

  1. For those employees for whom the effective date of retirement is prior to 3-1-82 "Average Annual Compensation in the highest five (5) Completed Plan Years" shall mean that amount determined by dividing by five (5) the total Compensation as defined herein, of the employee in those five (5) Plan Years within the ten (10) Plan Years immediately prior to his normal retirement date (or, if earlier, the effective date of retirement) in which his Compensation was greatest.
  2. For those employees for whom the effective date of retirement is 3-1-82 or thereafter "Average Annual Compensation in the highest four (4) Completed Plan Years" shall mean that amount determined by dividing by four (4) the total Compensation, as defined herein, of the employee in those four (4) Plan Years within the ten (10) Plan Years immediately prior to his retirement date in which his Compensation was greatest.
  3. For those employees for whom the effective date of retirement is after September 26, 1990, the Committee, upon good cause shown to its satisfaction, may substitute those four (4) Plan Years during an employees employment in which his compensation was greatest, in lieu of the four (4) Plan Years within the ten (10) Plan Years immediately prior to the employees retirement date in which his compensation was greatest, for the determination of the employee's Average Annual Compensation.

Committee

Shall mean the Retirement Allowance Committee described hereafter.

Compensation

shall mean as to future service and as to the contributions to the Fund provided for hereinafter, the total earnings paid by the Authority or by the Committee to a participating employee based on the employees full-time permanent employment on or after the effective date of the Plan.

As to those individuals who on or after December 1, 1989 occupy full-time or part-time positions with the Association or its International Office, or with the Office or International Office of any other bargaining agent representing employees of the Authority, "compensation" shall mean:

  1. For such individuals in full-time positions, the total earnings paid to the individual for all service in such positions both before and after December 1, 1989, by the Association or its International Office, or by the Office or International Office of the bargaining agent representing employees of the Authority; provided that the Authority and the individual make contributions to the Plan based on such total earnings at the rates provided by Paragraph 7.1 for all service with the Association or its International Office, or with the Office or International Office of any other bargaining agent representing employees of the Authority.
  2. For such individuals in part-time positions, the total earnings paid to the individual by the Authority or by the Committee plus the total earnings paid to the individual for service in such part-time positions both before and after December 1, 1989, by the Association or its International Office, or by the Office or International Office of the bargaining agent representing employees of the Authority; provided that the Authority and the individual make contributions to the Plan based on all of the earnings from such part-time positions at the rates provided by Paragraph 7.1.
  3. Notwithstanding anything herein to the contrary, the compensation of any individual occupying a position with an International Office, determined and to be taken into account under this paragraph as attributable to such position, shall not exceed the compensation similarly attributable to the highest paid full-time position or comparable part-time position with the Local of the Association or other local bargaining agent with which the officer was associated.

Continuous Service

Means service with the Authority, or any of its predecessor public utilities from the date an individual first satisfied the description of an employee set forth under EMPLOYEE definition section 1, 2, 3, or 4 and thereafter maintained unbroken employment with the Authority, provided, however, that the following shall not be considered a break in continuous service:

  1. Authorized leaves of absence and authorized absence because of sickness or injury.
  2. Time spent in the service of the armed forces of the Merchant Marine of the United States or her allies during a period of emergency, or on account of compulsory military service provided the employee has returned or returns to the service of the Authority after his honorable discharge within the period described by law, if any.
  3. Termination of the employment of the employee by the Authority, if followed by reinstatement within three (3) years after the date of such termination (i) in the job classification occupied at the date of such termination, with seniority rights or (ii) in another job classification, with service from date of hire prior to such termination.
  4. Periods during which no services were rendered because of strikes or lockouts.
  5. Lay-off due to reduction in force if the lay-off occurred after 1930, and the employee was called back to work and pursuant to such recall returned to work prior to 1937. This subparagraph 5 applies only to employees who retire on or after January 1, 1956.
  6. Other lay-off or furlough not exceeding three (3) years, unless extended by agreement of the Authority and the Association.
  7. Authorized leave of absence to work in the office of the Secretary of the Retirement Allowance Committee. The employee on said leave of absence will retain and enjoy all rights, privileges, service, earning credits and benefits, including bidding rights on positions with the Authority, available to other employees of the Authority but shall be subject to the direction of the Secretary and the Committee.

Provided, however, that in calculating past service and in determining eligibility (whether based on past or future service) to a minimum retirement, disability, or deferred vested allowance under this Plan, except for purposes of clause 7 above, absence for one or more of the foregoing grounds exceeding three consecutive years shall, to the extent it exceeds such three years, be deducted in computing the length of said past service, or in determining eligibility to such minimum retirement, disability, or deferred vested allowance; further provided, however, that if the entire period of an absence shall be for military service as described in clause 2 above, then only that portion, if any, of such absence exceeding four consecutive years shall be deducted in computing the length of said past service, or in determining eligibility to such minimum retirement, disability, or deferred vested allowance.

Effective date of the Plan

Shall mean June 1, 1949.

Employee

For the purpose of the Plan shall consist of:

  1. An individual employed on June 1, 1948 or employed subsequent thereto but prior to May 16, 1980 by the Authority, receiving a regular and stated compensation from the Authority other than a retirement allowance or retainer; or
  2. An individual employed by the Authority who on June 1, 1948 was absent due to leave of absence, or authorized furlough (other than retirement or disability retirement) or sickness or accident, which started subsequent to September 30, 1947; or
  3. An individual employed by the Authority who on June 1, 1948 or thereafter, is on leave of absence because of holding office in the Association or its International Office or in the Office or International Office or any other bargaining agent representing employees of the Authority; provided, however, that if said individual is first employed by the Authority on May 16, 1980 or thereafter, said individual has completed twelve months of continuous service with the Authority prior to commencement of the leave of absence incidental to his aforesaid union activities; or
  4. An individual who on May 16, 1980 or thereafter is first employed by the Authority who has completed twelve months of continuous service with the Authority and who is classified by the Authority on its employment rolls as a full time permanent employee.

Any person (other than one described in the above subparagraph (3)) not at work on June 1, 1948 due to leave of absence or authorized furlough (other than retirement or disability retirement) or sickness, or accident, which absence began prior to October 1, 1947 and who was a participant under any of the former Retirement and Disability Plans in effect on October 1, 1947, shall have a retirement or disability allowance when eligible under the provisions set forth in such Plan equal to the benefits now being paid or that may in the future be paid to those retired under such Plan. However, any such person returning to regular employment with the Authority after June 1, 1948 for a period of not less than thirty (30) days will qualify as an employee under this Plan.

It is not intended to include temporary employees as defined by the Retirement Allowance Committee provided for hereinafter. Retired employees are not included, except as provided in Section 20. Any employee retired on disability previous to June 1, 1948, who returns to active duty for the Authority, after the effective date of this Plan, shall not be entitled to any of the benefits under this Plan (except those provided in Section 20) unless his period of active duty is more than three consecutive months, provided, that if he is disabled, as described in Section 12, by cause arising after his return to work, he shall be entitled to a disability allowance under this Plan, regardless of his period of service after his return to work.

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