LEAGUE-ATPAM PENSION PLAN

Transcription

1 LEAGUE-ATPAM PENSION PLAN Summary Plan Description October Sylvan Avenue, Suite 303 Englewood Cliffs, NJ (800)

2 BOARD OF TRUSTEES Union Trustees Nick Kaledin Jonathan Shulman Veronica Claypool Adrian Bryan-Brown Gerry Parnell Deborah Hulbert Employer Trustees Christopher Brockmeyer Herschel Waxman George Forbes Anthony LaMattina Jason Laks Micah Hollingworth Co-Counsel Pryor Cashman LLP Proskauer Rose LLP Auditor Fitzsimmons, Krantz and Abrams, LLP Consultant The Segal Company Investment Consultant Segal Rogerscasey, Inc. Third Party Administrator Benefit Services, Inc. ( Benserco ) ii

3 October 2015 Dear Participant: We are pleased to provide you with this Summary Plan Description ( SPD ) for the League-ATPAM Pension Plan (the Plan ). This booklet provides valuable information about your pension benefits, such as: When you become a Participant in the Plan. The eligibility requirements for a pension. The types of pensions offered by the Plan. How pension benefits are calculated. When you can lose credit towards a pension benefit. How to apply for a pension. Please keep this SPD in a safe place and share it with your family. It includes important information you will need as you consider your retirement, as well as information your spouse or beneficiary may need in the event of your death. If you have any questions regarding your pension benefits, please contact the Fund Administrator at ( ). Thank you. Sincerely, BOARD OF TRUSTEES OF THE LEAGUE-ATPAM PENSION FUND iii

4 Introduction The League-ATPAM Pension Plan (the Plan ) was established as the result of Collective Bargaining Agreements ( CBAs ) between Contributing Employers and the Association of Theatrical Press Agents and Managers, Union No , AFL-CIO ( ATPAM or the Union ). Copies of these CBAs are on file at the Fund Office for your review, and a copy of an agreement may be obtained by Participants and beneficiaries upon written request to the Plan s Fund Office (reasonable copying charges may apply). The Plan is completely financed by Employer contributions made pursuant to the terms of the existing CBAs or other agreements requiring contributions to the Plan. The Pension Fund is a separate trust fund under the Agreement and Declaration of Trust Establishing the League-ATPAM Pension Plan (the Trust Agreement ) effective as of October 1, 1963, and as thereafter amended. The trust fund was established for the purpose of paying benefits provided under the Plan. The Internal Revenue Service ( IRS ) has determined that the Plan is tax-qualified, and that the separate trust is tax-exempt. The Plan is administered by a Board of Trustees consisting of an equal number of representatives of the Union and Contributing Employers. The Trustees, or any of their duly authorized designee(s), reserve the exclusive right, power and authority, in their sole and absolute discretionary authority to Take all actions and make all decisions with respect to eligibility for, and the amount of, benefits payable under the Plan. Formulate, interpret and apply rules, regulations and policies necessary to administer the Plan in accordance with its terms. Decide questions, including legal or factual questions, relating to the calculation and payment of benefits under the Plan. Resolve and/or clarify any ambiguities, inconsistencies and omissions arising under the Plan, Trust Agreement or other Plan documents; and Process, and approve or deny, benefit claims and rule on any benefit exclusions. All determinations made by the Trustees, or any of their duly authorized designee(s), with respect to any matter arising under the Trust Agreement and any other Plan documents shall be final and binding on all affected Plan Participants and their beneficiaries. Please note that no individuals, other than the Trustees, or their duly authorized designee(s) have any authority to interpret the Plan or to make any promises to you about the Plan or your benefits under the Plan. This booklet is provided to you to help you understand the Plan. Please remember that the rules of the Plan are stated in the formal document entitled League-ATPAM Pension Plan and the documents that relate to it. Your actual rights to benefits are governed solely by the terms of the official Plan document and Trust Agreement, as interpreted by the Trustees or their designee, in their sole and absolute discretion. The pension benefit which you may be entitled to is determined by the terms of the Plan which are in effect at the time you separate from service. Please note that if there is any conflict between this SPD and the official Plan documents, the official Plan documents take precedence in all cases. iv

5 Please be aware that neither this booklet nor the Plan is a contract of employment; they neither guarantee employment with an Employer nor diminish in any way the right of an Employer to terminate the employment of any Employee. Furthermore, the Trustees reserve the right, in their sole and absolute discretion, to amend or modify the Plan from time to time and to terminate the Plan and the Fund, in whole or in part, at any time and for any reason, in accordance with the procedures set forth in the formal Plan document and the Trust Agreement. You are covered by the Plan if you are an Employee working under a CBA between your Employer and the Union, or if you are an Employee working under a Participation Agreement with the Plan, either of which provides for contributions to the Plan on your behalf. When this booklet refers to you, it assumes that you are an Employee covered by the Plan. The Plan document is intended to comply with the Employee Retirement Income Security Act of 1974, as amended ( ERISA ) and the Internal Revenue Code of 1986, as amended (the Code ). v

6 Table of Contents DEFINITIONS...1 PARTICIPATION...3 Participation... 3 Termination of Participation... 3 Reinstatement of Participation... 3 YOUR PENSION BENEFITS...4 General Limitation... 4 Normal Pension... 4 Deferred Pension... 6 Disability Pension... 7 Terminal Illness Benefit... 8 PENSION CREDITS AND VESTING SERVICE...10 Pension Credit Vesting Service BREAKS IN SERVICE...12 Can You Lose Pension Credit and Vesting Service? One-Year Break in Service Grace Periods Permanent Break in Service Military Service FORMS OF PAYMENT...14 How Is Your Pension Benefit Paid? Surviving Spouse Pension at Retirement Month Certain Pension at Retirement Pre-Retirement Death Benefits Beneficiary Designation Domestic Partners Direct Rollovers ABOUT RETIREMENT AND SUSPENSION OF BENEFITS...20 What is Retirement? What is Totally Disqualifying Employment? What if You Received Pension While Working in Totally Disqualifying Employment? To Whom Should You Provide Notification if You Work in Totally Disqualifying Employment? What Notices Will You Receive Regarding a Suspension of Benefits? Resumption of Benefits After a Suspension May You Return to Work in a Job Which is Not Totally Disqualifying Employment? Review of a Suspension Waiver APPLYING FOR BENEFITS...22 Filing an Application Review of Your Claim for Pension Benefits Pension Benefit Guaranty Corporation Receiving Your Pension Benefit Non-Assignment of Benefits Recovery of Benefit Overpayment Plan Interpretation ERISA INFORMATION...27 Your Rights Under the Employee Retirement Income Security Act of 1974, as Amended vi

7 ADMINISTRATIVE INFORMATION...29 Official Name of Plan Plan Number Type of Plan Plan Funding Name of Sponsoring Employee Organization Participating Entities Employer Identification Number (EIN) Plan Year/Fiscal Year Effective Date Plan Administrator and Board of Trustees Agent for Legal Process Service vii

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9 Definitions Collective Bargaining Agreement Contributing Employer or Employer Contribution Period Covered Employment Employee Normal Retirement Age Participant Participation Agreement A Collective Bargaining Agreement is the contract between ATPAM and Contributing Employers which requires Contributing Employers to pay contributions to the Plan on behalf of its employees. If you work for an employer who is required to contribute to the Plan, in accordance with an agreement with the Union, or an employer who is required to contribute to the Plan by virtue of a Participation Agreement, then your employer is a Contributing Employer. The Contribution Period is the period of time during which your Employer made contributions to the Plan, on or after September 1, If you work for an Employer who contributes to the Plan, and if your job is covered by a Collective Bargaining Agreement, you work in Covered Employment. Covered Employment also includes employment by the Fund Office or Union which makes contributions to the Plan on behalf of its Employees as called for by a Participation Agreement. Covered Employment may include time while employed by a Contributing Employer prior to the Contribution Period. If you work for an Employer who is required to contribute to the Plan on your behalf, you are an Employee under the Plan. Normal Retirement Age is the later of age 62 or your age on the fifth (5 th ) anniversary of your participation in the Plan. You become a Participant in the Plan immediately upon commencement of work in Covered Employment. You are also a Participant if you are receiving a pension or if you are a former Employee who has acquired a right to a pension under the Plan. A Participation Agreement is a contract between an Employer and the Board of Trustees of the Plan which requires the Employer to pay contributions to the Plan on behalf of its Employees that are not collectively bargained Employees. 1

10 Pension Start Date or Annuity Starting Date Pension Credits Plan Credit Year Salary Vesting Service Your Pension Start Date (defined in the Plan document as the Annuity Starting Date) is the first day of the first calendar month after you have fulfilled all of the conditions entitling you to benefits and have filed a signed application with the Fund Office, but in no case later than the April 1 following the year in which you reach age 70 ½. Pension Credits are the units of credit, based on your periods of Covered Employment, which determine the amount of any pension you may become eligible to receive from the Plan. In general, you will receive one year of Pension Credit for each Plan Credit Year in which you work at least 12 weeks in Covered Employment. To determine the number of Pension Credits earned for periods before the Contribution Period, please contact the Plan Administrator. Plan Credit Year is the twelve-month period beginning on September 1 and ending August 31 of each calendar year. Salary is the annual salary earned by a Participant in Covered Employment during a Plan Credit Year. You will be credited with one year of Vesting Service for each Plan Credit Year in which you work at least 12 weeks in Covered Employment. The amount of your Vesting Service determines your eligibility for a pension from the Plan. 2

11 Participation Participation You will become a Participant in the Plan immediately upon performing any work in Covered Employment. Termination of Participation If you incur a One-Year Break in Service (see the section of this booklet entitled Breaks in Service ) you will cease to be a Participant as of the last day of the Plan Credit Year which constituted the One-Year Break in Service, unless you are currently receiving a pension or you have acquired a non-forfeitable or vested right to a pension, whether immediate or deferred. Reinstatement of Participation If you lose your status as a Participant as described above in Termination of Participation, you will again become a Participant as of the date of your re-employment in Covered Employment. 3

12 Your Pension Benefits General Limitation Regardless of the type of benefit you are entitled to under this Plan, your annual benefit may not exceed the limit set by the Internal Revenue Service ( IRS ). Normal Pension Eligibility As a Participant, you are eligible for a Normal Pension if you retire from Covered Employment and meet the following requirements: You have attained age 62, and You have at least 5 years of Vesting Service, 1 OR You have attained Normal Retirement Age, i.e., age 62 or, if later, your age on the fifth anniversary of participation in the Plan. Amount of the Normal Pension The amount of your Normal Pension is based on the accrual rates in effect when you last worked in Covered Employment, and is determined in two parts: The first part is based on Pension Credits earned in years in which you earned less than $8,000, and Pension Credits you earned prior to The second part is based on years in which you earned $8,000 or more and earned a Pension Credit. If your total number of Pension Credits exceeds 25, only the 25 years which produce the highest benefit will be used to calculate your Normal Pension. The accrual rate for the first part is listed in Column I of the table below entitled Benefit Multipliers. The accrual rate for the second part is listed in Column II of the table below on the same line. Both parts are based on your age on the effective date of your pension (your Annuity Starting Date ). If the last time you worked in Covered Employment was prior to September 1, 2007 please refer to the Benefit Multiplier Tables for earlier years, listed at the end of this section. 1 If you are a collectively bargained participant, and you did not work in Covered Employment on or after September 1, 1997, you must have 7 years of Vesting Service. 4

13 How to Calculate a Normal Pension BENEFIT MULTIPLIERS If you last worked in Covered Employment during period 9/1/07 and thereafter Age Column I Column II 65 & over Example: John began work in Covered Employment in October His last day of work in Covered Employment was December 15, He is now age 62 and wants to calculate his retirement benefit. There was only one year during the Contribution Period when John earned a Pension Credit and had a salary of less than $8,000, i.e., Determine the number of Pension Credits John earned prior to the Contribution Period, if any. Then determine the number of years in which he earned a Pension Credit during the Contribution Period and had a salary of less than $8,000. (You must work at least 12 weeks in a year to earn a Pension Credit.) Add those two numbers together. John s Years of Covered Employment prior to 1961: 0 Years of Covered Employment after 1961 when total salary was less than $8,000: 1 Grand Total: 1 2. Multiply the total in Step 1 by the Benefit Multiplier in Column I on the line with John s current age. John is 62 years old, so he will use the Column I Benefit Multiplier on that line. $28.51 x 1 year = $ List the Plan Credit Years (September 1 August 31) in which John earned more than $8,000 and earned a Pension Credit. (You must work at least 12 weeks in a year to earn a Pension Credit.) John s salary history in dollars 1991: $7, : 31, : 41, : 41, : 44, : 28, : 35, : 39, : 42, : 33, : 32, : 35, : 39, : 38, : 34, : 35, : 40, : 41, : 35, : 40, : 38, : 42,000 5

14 4. Next to each year, or group of years, list John s total salary. You may only count salary up to the maximums listed below: Years Maximum Salary In a Year Prior to 8/31/80 $25,000 9/1/80 through 8/31/97 $30,000 9/1/97 through present $32,500 For the year 1992, John earned a total salary of $28,000 = $28,000 For the 4 years ( ), John may count $30,000/year = 120,000 For the 16 years ( ), John may count $32,500/year = 520,000 GRAND TOTAL: $668, Multiply the NUMBER OF THOUSANDS in the grand total from Step 3 by the Benefit Multiplier in Column II on the line with John s current age. John will use the Benefit Multiplier in Column II (on the line for age 62): 3.56 x 668 = $2, Add the results from Steps 2 and 5. This will be the amount of John s monthly Normal Pension. Step 2 total: $ Step 5 total: $ 2, Total Monthly Pension: $ 2, Note: If John s total number of Pension Credits exceeds 25, only the 25 years which produce the highest benefit will be used to calculate his Normal Pension. The tables for Benefit Multipliers for the years prior to September 1, 2007 are on page 9 at the end of this section. If you need a Benefit Multiplier for a year that is not listed, please contact the Fund Office. Note: Calculating your pension is a complicated process. You are entitled to ask the Fund Office once a year to give you estimates of your pension based on your work history to date. When you apply for your pension, the Fund Office will give you estimates of your pension paid in all the forms that are available to you. Your final pension amount is subject to confirmation of all the information in your application, your work history, and the documentation you provide. Deferred Pension Eligibility A Deferred Pension provides pension benefits to Participants who stop working in Covered Employment before attaining Normal Retirement Age, i.e., before they reach age 62. If you have at least 5 years of Vesting Service, you are eligible for a Deferred Pension when you reach Normal Retirement Age. However, if you did not work in Covered Employment on or after September 1, 1997, you must have 7 years of Vesting Service to be eligible for a Deferred Pension. 6

15 Amount of Pension The Deferred Pension is calculated in exactly the same way as the Normal Pension. In calculating your Deferred Pension, however, the Column I and Column II factors and the maximum salaries listed on page 6 used in determining your benefit will be the factors that were in effect at the time you separated from Covered Employment. However, if you separate from Covered Employment on or after age 59, you will be entitled to any benefit increases effective within 3 years after you separate from Covered Employment. Example: Jane worked in Covered Employment for more than 12 weeks and earned a Pension Credit in each of 7 years, and stopped working in Covered Employment at age 55 in In 2017, when Jane turns 62 (her Normal Retirement Age) she will be entitled to a Deferred Pension. The amount of Jane s monthly benefit payment will be calculated using the Benefit Multipliers in effect in Disability Pension Eligibility If you become totally disabled (as defined below) and meet the eligibility requirements for a Disability Pension as described below, you may begin receiving a Disability Pension beginning the seventh month after your disability began, provided you have filed a completed application with the Fund for benefits by that date. If you have not filed such application by such date, your Disability Pension will begin on the first day of the first month following the date the Fund receives such completed application for benefits. To be eligible for a Disability Pension, you must: Be totally disabled as defined below; Be at least age 55; Have earned at least 15 Pension Credits; and Have worked in Covered Employment for at least 12 weeks in the 24-month period before your disability began. A disability is considered to be a total disability only if the Trustees determine, in their sole and absolute discretion, that based on the medical evidence submitted, you cannot work or seek employment of any kind. The Trustees may accept or require the award of a Social Security Disability benefit as the sole proof of total disability, and may from time to time require evidence of continuous entitlement to Social Security Disability benefits. If you became disabled in a Plan Credit Year in which you did not earn a Pension Credit or a year of Vesting Service because you did not work at least 12 weeks in Covered Employment, you may be awarded one Pension Credit and one year of Vesting Service for that year if, and only if, this would make you eligible for a Disability Pension. 7

16 Amount of Pension The amount of your monthly Disability Pension is equal to the amount of the Normal Pension that you would receive if you were age 62, but taking into account only your years of Pension Credit earned up to the date your Disability first commenced. The Trustees will make a determination, in their sole and absolute discretion, as to whether you are entitled to a Disability Pension, in accordance with the provisions of the Plan document. If the Trustees determine that you are not disabled, you may appeal this decision as set forth in the Section entitled APPLYING FOR BENEFITS below. Terminal Illness Benefit Eligibility You are eligible for a Terminal Illness Benefit if you are terminally ill and have a life expectancy of less than one year, as determined by a physician, and you meet the following criteria: You have earned at least 5 years of Vesting Service, including at least one year after the Contribution Period began. You have filed an application for a Terminal Illness Benefit which includes: (1) certification from a physician stating that you are terminally ill and have a life expectancy of less than one year, and (2) evidence satisfactory to the Trustees that you have not been employed by a Contributing Employer for the thirty-day consecutive period preceding the date of application. The Trustees may, in their sole discretion, require you to submit to a physical examination by a physician chosen by the Trustees. You and your spouse (if applicable) have waived the Surviving Spouse Pension (described below) and You have not yet started to receive any benefits under the Plan. Amount of Pension Your Terminal Illness Benefit will be paid as a lump sum and will be equal to the present value of the 36 guaranteed monthly payments which otherwise would have been payable to your surviving spouse or beneficiary, calculated as if you had died on the date the Trustees determined that you were entitled to a Terminal Illness Benefit. The Terminal Illness Benefit is in lieu of any other benefit that you would be eligible to receive under the Plan. If you live beyond the expected date of your death and you subsequently become entitled to any other Pension under the Plan, your Pension will be computed in accordance with the Plan on the date you stopped working in Covered Employment. Your benefit will be calculated based on all work in Covered Employment. However, the amount of your benefit will be reduced to reflect the value of the Terminal Illness Benefit which was previously paid to you, i.e., your pension benefit will be actuarially reduced by the value of the Terminal Illness benefit you received. Non-Duplication of Benefits You are entitled to one pension under the Plan, except that if you receive a Disability Pension and recover, you may be entitled to a Normal Pension. You may also receive a pension as the spouse of a deceased Participant, even if you are already receiving a pension that you have earned on your own account. 8

17 As explained on page 4, you will use the tables below in calculating the amount of your pension if your last day of work was on or before August 31, 2007: BENEFIT MULTIPLIERS If you last worked in Covered Employment during period 9/1/95 through 8/31/97 BENEFIT MULTIPLIERS If you last worked in Covered Employment during period 9/1/97 through 8/31/98 Age Column I Column II Age Column I Column II 65 & over & over BENEFIT MULTIPLIERS If you last worked in Covered Employment during period 9/1/98 through 8/31/01 BENEFIT MULTIPLIERS If you last worked in Covered Employment during period 9/1/01 through 8/31/07 Age Column I Column II Age Column I Column II 65 & over & over Delayed Payments You may decide to delay your application for your pension benefit, but you must begin to receive your benefits no later than the April 1 st following the year in which you reach age 70½, whether or not you are still working in Covered Employment. If you begin receiving your benefit by age 65, it will be calculated based on the Normal Pension formula, including any increases for pensions that went into effect between age 62 and the date your pension benefits begin. However, if you are not working in Covered Employment after age 65, but decide to delay applying for a benefit, the Normal Pension amount you would have received will be actuarially increased for each month that you delay payment and were not working in Covered Employment. The actuarial increase will be 1% per month for the first 60 months after age 62, and 1.5% for each month thereafter until the required beginning date of your pension. 9

18 Pension Credits and Vesting Service One of the eligibility requirements for each of the pensions provided by the Plan is that you earn a certain number of Pension Credits and Vesting Service. Your Pension Credits determine the amount of your monthly benefit. This Section explains how you accumulate Pension Credits and years of Vesting Service, and also how you can lose the Pension Credits and the Vesting Service you have already accumulated. Pension Credit You may earn units of Pension Credit for periods of work in Covered Employment both before and during the Contribution Period. The Contribution Period is the period of time during which your Employer makes contributions to the Plan, for periods commencing on or after September 1, 1961 Employment Prior to the Contribution Period For each Plan Credit Year between September 1, 1937 and August 31, 1961, you will receive one Pension Credit for each Plan Credit Year in which you were employed in the legitimate theater for at least 12 weeks, or a member of ATPAM. Your employment must have been under the jurisdiction of ATPAM, or of the type that would now be under the jurisdiction of ATPAM. In addition, if between September 1, 1937 and August 31, 1961 you were in active military service of the United States in time of war or national emergency or pursuant to a national conscription law, then for each such Plan Credit Year you will receive one Pension Credit for each year in which you were in such active military service for at least 12 weeks provided that in the Plan Credit Year preceding and following such period of active military service you were otherwise entitled to a year of Pension Credit in each of those years. Employment During the Contribution Period You will earn one Pension Credit for each Plan Credit Year during the Contribution Period in which you work in Covered Employment for 12 weeks or more. Vesting Service Vesting Service determines when you have a vested or non-forfeitable right to receive a pension benefit from the Plan. You earn Vesting Service at the same time you earn a Pension Credit. You will be credited with one year of Vesting Service for each Plan Credit Year in which you work in Covered Employment for 12 weeks or more. In addition to earning Vesting Service for each Plan Credit Year, you will also be credited with a year of Vesting Service if you worked for a Contributing Employer in a job not covered by this Plan and such employment is contiguous with Covered Employment with the same Contributing Employer, so long as your total of Covered Employment and non-covered Employment equals more than 12 weeks in a Plan Credit Year. Years of Vesting Service for non-covered Employment, however, will not be used to increase the amount of your Pension benefit under the Plan, i.e., you will not earn any Pension Credit for non-covered Employment. 10

19 Vested Status Vested status means you are vested in your rights to benefits under the Plan. Once your benefits become vested, you cannot lose your right to a pension from the Plan if you stop working in the industry, even if you later have a Break in Service. You become vested when you have met the eligibility requirements for a Deferred Pension as indicated below: You have at least 5 years of Vesting Service when you reach Normal Retirement Age (age 62), or if you did not work in Covered Employment on or after September 1, 1997, at least 7 years of Vesting Service. Accrued Vested Status No amendment to the Plan may take away your Vested Status if you have already earned it at the time of the amendment. In the event an amendment changes the schedule on the basis of which you acquire Vested Status, then if you have credit for at least 3 years of Vesting Service at the time the amendment is adopted or effective (whichever is later), you have the option of achieving Vested Status on the basis of the pre-amendment schedule. 11

20 Breaks in Service Can You Lose Pension Credit and Vesting Service? Generally, if you are age 62, or at any age have attained Vested Status, you have a non-forfeitable right to a pension benefit. However, if you do not meet these requirements and have too many consecutive One-Year Breaks in Service, it is possible that you may lose your Pension Credits and Vesting Service. One-Year Break in Service A One-Year Break in Service occurs when you do not complete at least 9 weeks of work in Covered Employment, or contiguous non-covered Employment with a Contributing Employer after August 31, 1976, during any Plan Credit Year. The effects of a One-Year Break in Service can be repaired by earning one year of Vesting Service before incurring a Permanent Break in Service (as described below). In other words, if you have a One-Year Break in Service, and you earn one year of Vesting Service, the previously earned years of Vesting Service will be restored. Example. During his first 4 years in Covered Employment, Ted earned 4 Pension Credits and 4 years of Vesting Service. During Ted s fifth year, he only worked 8 weeks, therefore incurring a One-Year Break in Service. During his sixth year, Ted worked 15 weeks. Because Ted earned a Pension Credit and a year of Vesting Service after he incurred a One-Year Break in Service, the 4 Pension Credits and the 4 years of Vesting Service he earned prior to his Break in service will be restored. Under the rules of the Plan, you cannot incur a One-Year Break in Service if you have attained Vested Status. Therefore, if you have attained Vested Status, your Pension Credits and your years of Vesting Service can never be forfeited. Grace Periods You may be allowed a grace period in order to prevent you from incurring a Break in Service if your One-Year Break in Service is due to one of the following reasons: A proven disability which lasts for at least 12 weeks in each Plan Credit Year. (The grace period shall not exceed 3 consecutive Plan Credit Years in the case of disability.) Military service as required by USERRA and other applicable law, provided you apply for reemployment within the time required by law, and follow any Plan procedures established by law and by the Board of Trustees. Absence due to: (1) your pregnancy, (2) the birth of your child, (3) placement of a child with you in connection with the adoption of the child, (4) to care for your child immediately following birth or placement, and (5) absence due to a leave under the Family and Medical Leave Act ( FMLA ). The maximum grace period for these reasons is 9 weeks. 12

21 Permanent Break in Service When you have a Permanent Break in Service, you lose, or forfeit, all previously earned Pension Credits and Vesting Service, and your Participation in the Plan is cancelled. Subject to one exception discussed below, this lost Pension Credit and Vesting Service cannot be restored. If you have not attained Vested Status, you will incur a Permanent Break in Service if the number of consecutive One-Year Breaks in Service equals or exceeds the greater of 5 or your total number of years of accumulated Vesting Service before such Break in Service. However, a Non-Collectively Bargained Employee who is credited with five (5) or more years of Vesting Service, or a Collectively Bargained Participant who is credited with five (5) or more years of Vesting Service and who has worked in Covered Employment on or after September 1, 1997, shall not incur a Permanent Break in Service. Example: Jane earned 4 Pension Credits and 4 years of Vesting Service during the Plan Credit Years between September 1997 and August Jane did not work for the next 5 years and returned to Covered Employment in September Since the number of consecutive one-year breaks in service equals 5, Jane incurred a Permanent Break in Service. Because Jane incurred a Permanent Break in Service, she forfeited her 4 Pension Credits and the 4 years of Vesting Service. Effective March 24, 1998, if you had 10 or more Pension Credits cancelled due to a Permanent Break in Service, those Pension Credits will be restored if you subsequently attain Vested Status and you worked at least one hour in Covered Employment on or after January 1, The reinstated Pension Credits will be valued at the accrual rate in effect at the time the Pension Credits were cancelled due to a Permanent Break in Service. Military Service If you serve in qualified military service and return to Covered Employment within the time required by law, you will be credited with Vesting Service and benefit accruals for your time in military service. In addition, if you should die while in qualified military service, you will be credited with Vesting Service as though you had returned to Covered Employment. 13

22 Forms of Payment How Is Your Pension Benefit Paid? If you are married, your benefit will be paid in the form of a 50% Surviving Spouse Pension, unless you and your spouse reject this form of payment as described below. If, on or after September 1, 2001, you registered your Domestic Partner (see definition of this term on page 19) for a Surviving Spouse Pension with the Fund Office, you may elect to have your benefits paid in the form of a Surviving Spouse Pension, as if your Registered Domestic Partner ( RDP ) was your Spouse. If you are not married, your benefit will be paid in the form of a 36 Month Certain Pension. Surviving Spouse Pension at Retirement If you are married when you retire, the automatic form of payment is the 50% Surviving Spouse Pension. All benefits for Participants who are married at the time of retirement will be paid in this form unless the form is properly rejected by you and your spouse. Under the 50% Surviving Spouse Pension, you will receive a reduced monthly benefit payable during your life. Upon your death, your spouse or RDP will receive 50% of the reduced monthly benefit that you had been receiving, through his or her lifetime. You also have the option of receiving a 75% or 100% Surviving Spouse Pension and, upon your death, your spouse or RDP will receive for life 75% or 100% of the reduced monthly benefit that you had been receiving, depending upon the percentage you chose at the time of application. The amount of the reduction depends on the percentage of coverage. The reduction increases as the percentage of coverage for your spouse or RDP increases. Reduction for Surviving Spouse Pension In order to provide this lifetime coverage for your spouse or RDP, the amount of your pension benefit will be reduced. The amount of the reduction depends on the difference between your age and your spouse s or RDP s age. Your monthly benefit will be a percentage of the full monthly benefit that would have been payable to you as a single life annuity. The amount of the reduction is as follows: Normal, Deferred, Pension Payable at age 70 Pensions: 50% Surviving Spouse Pension: 89% of the full single life annuity, minus 0.4% for each full year that your spouse s or RDP s age is less than yours, or plus 0.4% for each full year that your spouse s or RDP s age is more than your age. 75% Surviving Spouse Pension: 84% of the full single life annuity, minus 0.5% for each full year that your spouse s or RDP s age is less than yours, or plus 0.5% for each full year that your spouse s or RDP s age is more than your age. 100% Surviving Spouse Pension: 80% of the full single life annuity, minus 0.6% for each full year that your spouse s or RDP s age is less than yours, or plus 0.6% for each full year that your spouse s or RDP s age is more than your age. 14

23 Disability Pension 50% Surviving Spouse Pension: 79% of the full single life annuity, minus 0.4% for each full year that your spouse s or RDP s age is less than yours, or plus 0.4% for each full year that your spouse s age is more than your age. 75% Surviving Spouse Pension: 71% of the full single life annuity, minus 0.5% for each full year that your spouse s or RDP s age is less than yours, or plus 0.5% for each full year that your spouse s or RDP s age is more than your age. 100% Surviving Spouse Pension: 65% of the full single life annuity, minus 0.6% for each full year that your spouse s or RDP s age is less than yours, or plus 0.6% for each full year that your spouse s RDP s age is more than your age. In no case, however, shall the resulting monthly benefit be greater than 100% of the monthly benefit payment that you would receive if you were receiving a single life annuity. Example: John retires at age 62 with a Normal Pension in the form of a 50% Surviving Spouse benefit. His benefit amount before any reduction for the Surviving Spouse Option is $1, per month. If at the time John retires his spouse is age 60, his benefit would be reduced as follows: 1. Spouse is two full years younger than Participant: Age difference multiplied by 0.4% (0.004): 2 x.004 = Using the rule above for a 50% Surviving Spouse Pension, John s pension will be reduced as follows: 89%, less an additional because his spouse is two years younger than he is: = $1,000 x.882 = a pension benefit of $882.00/month to John in the form of a 50% surviving spouse pension. Upon John s death, his surviving spouse will receive a pension benefit of $441.00/month for life. You should be aware that if you are married when your benefits commence, they will automatically be paid in the form of a 50% Surviving Spouse Pension unless you and your spouse reject this type of benefit. Your spouse must consent to the rejection of the 50% Surviving Spouse Pension in writing and to any beneficiary or contingent annuitant you designate. Your rejection and your spouse s consent must be witnessed by a notary public between 30 and 180 days of the commencement of your pension. Therefore, you have at least a 30-day election period after being given a written explanation of the Surviving Spouse Pension to waive this benefit with your spouse s consent. However, effective for the Plan Year beginning September 1, 1997 you may elect to waive, with your spouse s consent, the requirement that this explanation be provided to you within 30 days of your Pension Start Date, as long as you receive the explanation more than 7 days before your Pension Start Date. The Surviving Spouse Pension may be also waived if you cannot locate your spouse after diligent efforts or your spouse s consent cannot be obtained due to extenuating circumstances (such as if you have been abandoned as confirmed by a court order). In such a situation you must submit appropriate proof of the extenuating circumstances as requested by the Trustees. The Fund Office will provide you with a written explanation of the Surviving Spouse Pension and the consequences of rejecting it. 15

24 If you are married, in order to properly reject a Surviving Spouse Pension you must meet all the following requirements: You must specify in writing the alternate form of pension that you wish to receive and identify a specific beneficiary(ies) (if any). Your spouse must consent in writing on the form(s) provided by the Fund Office to your receiving an alternate form of payment and to the specific beneficiary(ies) you have chosen (if the beneficiary(ies) is/are not your spouse). Your spouse s consent must state that he or she understands the meaning and financial effect of the decision, and must be witnessed by a notary public or a Plan representative. You cannot change a beneficiary or payment method without additional spousal consent (unless the change is back to a Surviving Spouse pension or to name your spouse as beneficiary). You and your spouse must sign the form no earlier than 180 days before the Pension Start Date of your pension. Once your spouse has waived the Surviving Spouse Pension, your spouse may not revoke that waiver. However, you, as a Participant, may revoke your spouse s waiver at any time before the Pension Start Date. Once your pension benefits begin, you cannot change your decision about the Surviving Spouse Pension. If your spouse dies or if you are divorced after your pension benefits begin, your reduced pension amount cannot be increased or changed. To be entitled to a Surviving Spouse Pension, you and your spouse must be married to each other throughout the twelve-month period ending on the earlier of the date you begin receiving your pension benefits or your death. If you marry within twelve months prior to retirement, you can receive the Surviving Spouse Pension. However, if you die before you were married for a full year, your surviving spouse will not receive the Surviving Spouse Pension. No former spouse will be entitled to the Surviving Spouse Pension unless required by a domestic relations order that is a Qualified Domestic Relations Order ( QDRO ). (See Non-Assignment of Benefits below). 36 Month Certain Pension at Retirement If you are single, or if you are married and your spouse has signed a spousal consent form before a notary agreeing to your rejection of a Surviving Spouse Pension, you may elect the 36 Month Certain Pension. Under this form of payment, upon retirement you will receive an unreduced monthly single annuity for life. If you die before you have received 36 monthly payments, your spouse or other designated beneficiary will continue to receive your unreduced monthly benefit payment until a total of 36 monthly payments are made. The total of 36 payments includes all payments made to you and your beneficiary. Example: John and his spouse reject the 50% Surviving Spouse Pension, and John designates his spouse as the beneficiary of his pension. If John dies after receiving 20 months of his unreduced benefit payment, then John s spouse, as his designated beneficiary, is entitled to receive the remaining 16 unreduced monthly payments. There are no further payments beyond the 36 monthly payments. 16

25 In the event that your spouse or other designated beneficiary dies before all 36 unreduced monthly payments have been paid, the remaining payments will be made to a contingent beneficiary previously designated by you or your spouse. If no contingent beneficiary is named, or the contingent beneficiary dies before all 36 monthly payments have been paid, the remaining payments will be paid to your estate in an actuarially equivalent lump sum. Pre-Retirement Death Benefits If You Are Married and Eligible for a Normal Pension When You Die If at the time of your death you are at least age 62 and have earned Vested Status, your spouse will receive a survivor s annuity for the remainder of his or her lifetime, calculated as if you had retired on a 50% Surviving Spouse Pension on the day before your death. Your surviving spouse can choose to receive 36 monthly benefit payments equal to your Normal Pension Benefit in lieu of the Surviving Spouse Pension. If You Are Married and Eligible for a Deferred Pension When You Die If at the time of your death you have earned Vested Status but have not yet attained age 62, your spouse will be paid a survivor s annuity payable as of the first of the month following the month in which you would have become age 62. The amount of the survivor s annuity shall be calculated as if you had left Covered Employment on the date of your death, survived to age 62, retired on a 50% Surviving Spouse Pension, and died on the last day of the month in which you reached age 62. Your surviving spouse can choose to receive 36 monthly benefit payments that are the actuarial equivalent of the monthly pension payments that you would have received if you left Covered Employment on the date of your death, survived to the earliest retirement age under the Plan, and retired on a Normal Pension in lieu of the 50% Surviving Spouse Pension. These payments will be the actuarial equivalent of 36 payments of your Normal Pension Benefit, which would have been payable to you upon your attainment of age 62. If You Are Married and Age 55 or Older and Have at Least 15 Pension Credits When You Die or You Have 25 Pension Credits but Not age 55 If at the time of your death you are actively working in Covered Employment and are at least age 55 and have 15 or more Pension Credits, your spouse will receive a survivor s annuity for the remainder of his or her lifetime, calculated as if you had attained age 62 and had retired on a 50% Surviving Spouse Pension. You are considered to be actively engaged in Covered Employment if you had not incurred a one-year break in service at the time of your death. Your surviving spouse can choose to receive 36 monthly benefit payments equal to your Normal Pension Benefit in lieu of the Surviving Spouse Pension. If You Are Not Eligible for a Surviving Spouse Pension If at the time of your death you are single, married but not eligible for a Surviving Spouse Pension, or you and your spouse have rejected the Surviving Spouse Pension, your named beneficiary may be eligible to receive a benefit. This benefit is available to your beneficiary if: You have satisfied the requirements for a Normal Pension, or You are working in Covered Employment and you have attained age 55 and have 15 or more Pension Credits, or You are working in Covered Employment and you have not attained age 55, but you have earned at least 25 Pension Credits. 17

26 The benefit received by your beneficiary will be the actuarial equivalent of 36 payments of the pension calculated as if you were age 62 and had retired on a Normal Pension on the day before your death. If, at the time of your death, you have satisfied the requirement for a Deferred Pension, your named beneficiary will receive 36 monthly benefit payments that are the actuarial equivalent of the monthly pension payments that you would have received if you left Covered Employment on the date of your death, survived to the earliest retirement age under the Plan, and retired on a Normal Pension. If you do not designate a beneficiary or your surviving spouse or beneficiary dies before receiving 36 monthly payments, all remaining payments will be paid to your estate in an actuarially adjusted lump sum. Beneficiary Designation The Fund Office must be notified, on forms provided by the Fund Office, of the person(s) you would like to designate as your beneficiary(ies). You may change or revoke any of your beneficiary designations at any time before you retire and each new received designation will automatically supersede and cancel any previous designations. However, no designation or change of beneficiary shall be effective unless and until a properly completed form is actually received by the Fund Office prior to your death. Please be certain to check periodically with the Fund Office regarding your beneficiary designation to ensure the information on file conforms to your present intentions. If you are married, your spouse s consent witnessed by a notary public or Plan representative (as described in connection with the rejection of a 50% Surviving Spouse Pension) must be provided if you designate a beneficiary(ies) other than your spouse. Domestic Partners A Domestic Partner is one of two unmarried adults of the same or opposite sex, neither of whom is married or legally separated and who meet all the following conditions: They have resided with each other for 6 months prior to filing an application for benefits and they intend to live continuously with each other indefinitely, They are not related by blood or closer, that the law would not permit marriage, They are financially dependent on each other, They have an exclusive close and committed relationship with each other, and They have not terminated the domestic partnership. You must register your Domestic Partner with the Fund Office to receive the Surviving Spouse Pension by submitting an affidavit of Domestic Partnership and a declaration of financial interdependence, including two items of documentary proof. If you live in a municipality that acknowledges a Domestic Partner, you must also submit proof that you have registered as Domestic Partners with the appropriate authorities. 18

27 Direct Rollovers You should be aware that if you or your surviving spouse or beneficiary receive your pension benefit in a lump sum or in periodic payments of less than 10 years duration, under current laws the benefit will be subject to an automatic 20% federal tax withholding. The remaining 80% will be distributed to you or your spouse or beneficiary in accordance with your benefit election. The Plan will not be required to withhold the 20% if you elect to have your benefit directly rolled over into an Individual Retirement Account ( IRA ) or other qualified retirement plan or, on your death, your spouse or beneficiary elects to have your benefit directly rolled over. You will receive additional information from the Fund Office on such eligible rollover distributions when you apply for a benefit. However, please contact a qualified tax advisor for more information regarding the tax treatment of your benefits. 19