ATLANTA PLUMBERS AND STEAMFITTERS PENSION PLAN

Transcription

1 ATLANTA PLUMBERS AND STEAMFITTERS PENSION PLAN Summary Plan Description Revised Effective January 1, 2016 A Defined Benefit Pension Plan for Participants of the December 9, 2016

2 TABLE OF CONTENTS Part I: Part II: Introduction... 1 Administrative Items Address Notification... 2 Plan Administration... 2 How to Apply for Benefits... 4 Claims Review and Appeal Procedure... 5 Part III: Definitions... 7 Part IV: Participation, Service Accrual and Vesting Commencement of Participation Termination of Participation Credited Service Accrual Service Credit For Non-covered Employment Vesting Service Vesting Loss of Credited Service and Vesting Service Restoration of Credited Service and Vesting Service Part V: Part VI: Part VII: Types of Benefits and Calculation of Accrued Benefit Types of Benefits Calculation of Accrued Benefit How Your Retirement Benefits are Paid Automatic Forms of Benefit Payment Optional Forms of Benefit Payment Notification Regarding Forms of Benefit Payment and Effect on Timing and Amount of Benefits Calculation of Retirement Benefits Normal Retirement Benefit Early Retirement Benefit Late Retirement Benefit Disability Retirement Benefit Deferred Vested Retirement Benefit (continued) (Summary Plan Description) Page i

3 TABLE OF CONTENTS Part VIII: Pre-Retirement Death Benefit Pre-Retirement Death Benefit Part IX: Part X: Part XI: Part XII: Post-Retirement Death Benefit Post-Retirement Death Benefit Suspension of Benefits Suspension of Benefits Other Questions Is it Possible I Might Lose my Service For Benefit Purposes? Can I Lose Any of my Benefits From This Plan? What Happens if I Return to Work After I Retire and After my Benefit Payments Have Started? What Happens if I do not Name a Beneficiary? Can my Benefits be Affected by a Divorce or Family Dispute? What Happens if I Enter Military Service? Can I Expect to Receive Anything From Social Security? Miscellaneous Information This Booklet is Only a Summary The Trustees Interpret the Plan The Plan May Be Changed Tax Exempt Status of Plan Non-Alienation of Benefits Offset of Benefits Responsibility for Administration Right of Trustees to Data Right to Terminate the Plan Retroactive Payment of Benefits Mandated Payment of Benefits After Age 70½ Beneficiary Designation (continued) (Summary Plan Description) Page ii

4 TABLE OF CONTENTS Part XIII: Other Important Information Your Rights Under the Employee Retirement Income Security Act Of Pension Benefit Guaranty Corporation Additional Plan Information Annual Funding Notice Part XIV: Appendices Appendix A (Variable Benefit Example) (Summary Plan Description) Page iii

5 ATLANTA PLUMBERS AND STEAMFITTERS PENSION PLAN PART I Introduction We are pleased to provide you with this updated booklet describing your current pension plan and the benefits to which you may be entitled at the time of your retirement. Also included are descriptions of the benefits for which you may be eligible should you become disabled before your retirement and the benefits which may be available to your Spouse or other beneficiary in the event of your death. In addition to describing the types of benefits which may become available to you, this booklet also outlines the manner in which you become eligible for these benefits, the procedures you must follow to apply for these benefits, and the steps you must take if your application for benefits is denied. Changes have been made to the Plan since the last booklet was printed and distributed to you. All of these changes are included in this booklet, and we would encourage you to review it in its entirety so that you can become familiar with the provisions of the Plan. We will make every effort to continue to administer your Plan in such a way that it can have the greatest benefit for you and your family in future years. After you have reviewed this booklet, please retain it for your future reference. Please do not hesitate to contact the Fund office with any questions you may have regarding this booklet or any other matters pertaining to your Plan. This booklet is intended to be a summary of the Plan s provisions. The Plan is governed by the official Plan document. In the event of any conflict between this booklet and the official Plan document, the terms of the official Plan document will control. Best regards, Board of Trustees ATLANTA PLUMBERS AND STEAMFITTERS PENSION PLAN (Summary Plan Description) Page 1

6 ADMINISTRATIVE ITEMS PART II Address Notification BE SURE TO NOTIFY THE FUND OFFICE OF YOUR CURRENT ADDRESS Most information about your Plan and changes to it are sent to you by mail. To ensure that you receive this information, the Fund office must have your current address on file at all times. Included as an insert to this booklet are cards designed to give the Fund office your address and other information it needs about you. A card should be completed by you and mailed to the Fund office if you have not already filed one with the Fund office. Also, you should mail a card if your address, marital status or other information changes in the future. Additional cards will be furnished to you by the Fund office at your request so that you may notify the Fund office of any changes. Failure to keep the Fund office advised of any change in your address may jeopardize your eligibility for benefits because the Trustees will be unable to advise you of any changes in the Plan s benefits. You may notify the Fund office of an address change or obtain a new enrollment card by writing to: Plan Administration Board of Trustees c/o NEBA, Inc N.W. 150th Avenue, Suite 100 Pembroke Pines, FL The Plan is administered by the Board of Trustees, and contract administration services are provided by: NEBA, Inc N.W. 150th Avenue, Suite 100 Pembroke Pines, FL Phone: (954) Toll-Free: (800) Fax: (954) (Summary Plan Description) Page 2

7 ADMINISTRATIVE ITEMS PART II The Trustees of the Plan are: Union Trustees Mr. Jeffery K. Housworth Atlanta Plumbers & Steamfitters Local No. 72 P.O. Box Atlanta, Georgia (UPS: 374 Maynard Terrace, SE, 30316) Mr. Terry Newsome, Jr. Atlanta Plumbers & Steamfitters Local No. 72 P.O. Box Atlanta, Georgia (UPS: 374 Maynard Terrace, SE, 30316) Mr. Terry Sinyard 3208 Paddock Road Covington, Georgia Mr. Steve Newsome Atlanta Plumbers & Steamfitters Local No. 72 P.O. Box Atlanta, Georgia (UPS: 374 Maynard Terrace, SE, 30316) Mr. Greg Stephens Atlanta Plumbers & Steamfitters Local No. 72 P.O. Box Atlanta, Georgia (UPS: 374 Maynard Terrace, SE, 30316) Employer Trustees Mr. Jon Sterling Maxair, Incorporated 814 Livingston Ct Marietta, Georgia Mr. Gary P. Fowler Mechanical Contractors Association of Georgia 4500 Hugh Howell Road, Suite 250 Tucker, Georgia Mr. John Helms W.B. Wallis & Company P.O. Box 847 (540 Kentucky Street) Scottdale, Georgia Mr. Grant Willis Willis Mechanical Incorporated 1850 Beaver Ridge Circle, Suite E Norcross, Georgia Mr. John McKenney McKenney s, Inc Moreland Industrial Blvd., SE Atlanta, Georgia (Summary Plan Description) Page 3

8 ADMINISTRATIVE ITEMS PART II How to Apply for Benefits When you make application for a benefit, please do the following: 1. You must complete an Application for Benefits form. This form must be completed regardless of the type of benefit you are requesting. You can obtain an Application for Benefits form by contacting the Fund office. 2. You must furnish with your application for benefits a proof of age document which can consist of any of the following: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Birth Certificate Church Record of Baptism Marriage Certificate (if age is shown) Passport Elementary School Record Registration or Voting Record (if age is shown) Armed Forces Discharge Social Security Records Civil Service Records Photo Driver s License 3. If you apply for a disability benefit you will also need a statement from the Social Security Administration verifying your disability. 4. If applying for a death benefit, please submit a certified copy of the death certificate. 5. Your application and accompanying documents should be submitted to the Fund office. Any information required from the Local Union will be requested by the Fund office. 6. You should submit your application at least three months in advance of your retirement. 7. All necessary forms may be obtained in the Fund office or the Local Union office. Once your eligibility for a benefit has been established by the Fund office, you will be furnished with certain information explaining the benefit options available under the Fund. You will then be required to choose a benefit option, as outlined in Part VI of this booklet, before payment of your benefits can commence. Please complete all forms fully and accurately and call the Fund office if you have any questions. (Summary Plan Description) Page 4

9 ADMINISTRATIVE ITEMS PART II Claims Review and Appeal Procedure Rights of Review and Appeal * You must exhaust these claims and appeal procedures before filing a suit in federal court * If an application for benefits is denied or partly denied for any reason, you will be notified in writing and given an opportunity for a review of your claim by the Board of Trustees. The written denial will give (a) specific reason(s) for the denial, (b) a reference to the specific Plan provision(s) on which the denial is based, (c) a description of any additional material or information necessary to perfect the claim and the reason such material or information is needed, and (d) an explanation of the Plan s Claims Review Procedure. The Fund office will notify you of a claim denial within 90 days after the date that the claim is received. If special circumstances require an extension of time for deciding a claim, the Fund office will notify you in writing within the 90 day period and will specify the date a decision on the claim will be made. Then, the Fund office will furnish any denial notice on the claim within 180 days after the date the claim was received. If your application is not processed within the time period outlined above, you may proceed to the review procedure stage, described below, as if the claim had been denied. Review Procedure 1. Within 60 days after you have been notified by the Fund office that an application submitted by you has been denied, you or your personal representative may make a written request for review of the application to the Fund office. 2. You may request all pertinent documents relating to your application denial and you may submit issues and comments in writing for review by the Trustees. 3. You should include in your written request all of the facts regarding the matter as well as the reason(s) you feel the original decision was incorrect. The Fund office will assist you in gathering any pertinent information needed from Fund records to perfect the application. 4. You may elect to have the issue decided on the basis of a written appeal or you may appear before the Trustees personally (or have a personal representative appear on your behalf). 5. If you elect a written appeal, all written statements, materials and other pertinent information will be presented on your behalf. Scheduling of Hearing and Decision of Trustees 1. If you do not request a personal hearing, the Trustees will make a final decision on your appeal and will notify you of the decision in writing. The notice will specify the reasons for any denial (Summary Plan Description) Page 5

10 ADMINISTRATIVE ITEMS PART II of your appeal, including references to specific Plan provisions. The Trustees will make their decision on the appeal no later than the date of the first meeting of the Trustees following the date your request for review is received. However, if your request for review is not received more than 30 days before that meeting, the Trustees will make a decision no later than the date of the second meeting of the Trustees following the date your request for review is received. 2. If you request a personal hearing of your appeal, the Trustees will schedule that hearing, and will review any facts and information submitted by you. The Trustees will make a final decision, and will notify you in writing, specifying the reasons for any denial of your appeal, including references to specific Plan provisions. The Trustees will generally make a decision by the date of the first meeting of the Trustees following the date your request is received. If your request is received not more than 30 days before that meeting, the decision may be issued as of the date of the second meeting of the Board of Trustees following the date of your request. However, a decision on your request must be made by the Trustees no later than the third meeting of the Trustees following the date of receipt of your request for a personal appeal. 3. You may, at your own expense, have representation at any stage of these review procedures. 4. Every effort will be made by the Trustees to interpret Plan provisions in a consistent and equitable manner, and you will be given maximum opportunity to present your viewpoints regarding any application for benefits. 5. If your appeal is denied, you may file suit in federal court. Every Participant and Beneficiary will be required to exhaust each and every step of these Claims Review and Appeals Procedures before he proceeds to litigation, and any attempt to circumvent these Claims Review and Appeals Procedures in any manner will be resisted by the Trustees. (Summary Plan Description) Page 6

11 DEFINITIONS PART III Throughout this booklet, certain words and phrases are used to describe the benefits available under the Fund as well as the manner in which you may become eligible for benefits. These special words and phrases are capitalized. Whenever used in this booklet, these terms have the meaning indicated in this section. 1. Accrued Benefit - Your Accrued Benefit is the monthly amount, payable as an Annuity With Three Years Certain commencing at your Normal Retirement Age (or later retirement age), determined as described in Part V. 2. Beneficiary - The individual(s) designated in accordance with the terms of the Plan by a Participant at the time of his retirement to receive any post-retirement death benefits which may become payable. See also Beneficiary Designation in Part XII. 3. Break in Service - A Break in Service will occur at the end of any Plan Year during which a Participant completes fewer than 501 Vesting Hours. However, if the Participant is absent on account of parental leave, as outlined below, or if he suffers a Disability, as that term is defined in this booklet, he will be granted Vesting Hours for the sole purpose of determining whether he has incurred a Break in Service, as follows: Parental Leave: As used in this section, parental leave means a period of absence from employment with an Employer because of a Participant s pregnancy, the birth of the Participant s child, the placement of a child with the Participant for adoption, or the Participant s caring for a child for a period immediately following the child s birth or placement for adoption. Proof of the above may be required by the Plan administrator. The number of Vesting Hours granted for parental leave will be the number which would normally have been calculated for such periods except for parental leave, or, if the Plan administrator is unable to determine the number of hours, eight Vesting Hours for each day of parental leave will be granted. No more than 501 Vesting Hours will be granted for any one period of parental leave. Such hours will be credited to the Plan Year in which the absence from employment began if credit is needed to prevent the Participant from incurring a Break in Service for that Plan Year. Otherwise, the hours will be credited to the next succeeding Plan Year. Disability: If a Participant is not completing Hours of Service because he has a Disability, and he is not eligible for a disability retirement benefit from this Plan, for the sole purpose of determining whether the Participant has incurred one or more Breaks in Service, he will be credited with 501 Vesting Hours for each Plan Year or portion of a Plan Year in the period beginning on the date that he began receiving disability benefits under the federal Social Security Act and ending on the earlier of the date (if any) that such payments cease or the date (if any) that the Participant becomes eligible for a pension benefit from this Plan. (Summary Plan Description) Page 7

12 DEFINITIONS PART III 4. Contribution 1. For an Employee, a payment made or required to be made to the Fund in accordance with a collective bargaining agreement or other written agreement with an Employer, except any payment that is required to be transferred to another pension fund under the terms of a written reciprocal agreement; or 2. For a Reciprocal Employee, a payment transmitted to the Fund by another pension fund in accordance with a written reciprocal agreement. 5. Credited Service See Credited Service Accrual in Part IV. 6. Dependent Child - A child of a deceased Participant who: 1. Is unmarried, 2. Was dependent on the Participant for support before the Participant s death, and 3. Is either (a) (b) (c) Under age 19, or Under age 25 and a full time student in an institution of higher learning, or Incapable of self-sustaining employment because of mental retardation or physical handicap, at the time of the Participant s death. 7. Disability - A physical or mental condition of a Participant that entitles him to disability benefits under the federal Social Security Act, or results in a determination by the Veterans Administration that the Participant is 100 percent unemployable except a condition that: 1. Arose while the Participant was committing a felony or resulted from the Participant s having committed a felony; 2. Resulted from an intentionally self-inflicted injury; or 3. Resulted from service in the armed forces on or after January 1, 1974, if the Participant is thereby prevented from becoming an Employee again and the Participant is entitled to a military pension therefore. (Summary Plan Description) Page 8

13 DEFINITIONS PART III 8. Employee - An individual on whose behalf an Employer makes or is required to make Contributions to the Fund, except (a) an individual who is the owner of a sole proprietorship or a partner in a partnership if such sole proprietorship or partnership is the Employer that would otherwise have the obligation to make contributions to the Fund on the individual s behalf, or (b) an individual on whose behalf contributions received by the Fund are required to be transmitted to another pension fund in accordance with an applicable reciprocity agreement. 9. Employer - Any of the following that agrees to make Contributions to the Fund and that is bound by the Trust Agreement establishing the Fund: 1. An employer that is bound to make contributions to the Fund under the terms of a collective bargaining agreement; 2. The Union (with respect to its full-time salaried employees); and 3. The Joint Apprenticeship and Training Trust with respect only to its full-time salaried employees hired before January 1, Employment in the Trade - Performance of work by a Participant within the Union s jurisdiction for compensation or profit in the plumbing and pipefitting trade, as defined in the collective bargaining agreement by which he is covered or was covered when Contributions were received by the Fund on his behalf, to the extent that such employment by the Participant is (a) in an industry in which Employees are employed and accrue benefits under this Plan, and (b) in a trade or craft in which the Participant was employed at any time while accruing benefits under this Plan. 11. Fund - The Atlanta Plumbers and Steamfitters Pension Fund, which is held and administered by the Trustees under the Trust Agreement and is the trust fund in which Contributions are held and from which Plan benefits and expenses are paid. 12. Future Credited Service - See Credited Service Accrual in Part IV. 13. Hour of Service - 1. Each hour for which a Participant is paid, or entitled to payment, for the performance of duties for an Employer. 2. Each hour, up to 501 hours during a single, continuous period, for which the Participant is paid, or entitled to payment, by an Employer for a period of time during which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty, or leave of absence, but excluding any hour for which payment is made or due under a plan maintained solely for the purpose of complying with workers compensation, unemployment compensation, or disability insurance laws or for which payment is made or due solely as reimbursement for medical or medically- related expenses incurred by the Participant. (Summary Plan Description) Page 9

14 DEFINITIONS PART III 3. Each hour for which back pay, regardless of mitigation of damages, has been awarded or agreed to by an Employer to the extent that the award or agreement is intended to compensate the Participant for a period of time during which he would have been performing duties for the Employer; provided that the same Hours of Service will not be counted under paragraph 1. above and under this paragraph. 4. Each hour for which back pay, regardless of mitigation of damages, has been awarded or agreed to by an Employer to the extent that the award or agreement is intended to compensate the Participant for a period of time during which he would have performed no duties as described in paragraph 2. above; provided that no more than 501 hours will be credited for any such single, continuous period, and the same Hours of Service will not be counted under paragraph 2. above and under this paragraph. 14. Hour Worked - Each hour during which an Employee performs services for an Employer for which the Employer makes or is required to make a Contribution to the Fund on the Employee s behalf, or each hour for which a Contribution is received by the Fund on a Reciprocal Employee s behalf in accordance with an applicable reciprocity agreement. 15. Military Hour - With respect to a Participant who becomes an Employee again on or after December 12, 1994, hours granted for service in the armed forces of the United States if the Participant was an Employee when he entered such service and if the Participant becomes an Employee again within the period of time required by the Uniformed Services Employment and Reemployment Rights Act of The number of hours credited will be calculated in accordance with applicable federal guidelines. 16. Normal Retirement Age - The Participant s age on his sixty-fifth birthday. 17. Normal Retirement Date - The first day of the month coinciding with or immediately following the Participant s sixty-fifth birthday. 18. Participant - The rules for becoming and remaining a Participant are explained in Part IV. 19. Past Credited Service - See Credited Service Accrual in Part IV. 20. Plan The. 21. Plan Year - A Plan Year is the same as a calendar year. 22. Post-Retirement Employment - 1. With respect to a Participant who has attained his Normal Retirement Age, employment of the Participant by an Employer for no more than 600 Hours Worked in a Plan Year, and 2. With respect to a Participant who: (Summary Plan Description) Page 10

15 DEFINITIONS PART III (a) Is receiving an early retirement benefit which began on or after the later of January 1, 1999 or his 58th birthday, (b) (c) Has completed at least 35 years of Credited Service before his benefit commencement date, and Has not been engaged in Employment in the Trade for a period of at least 30 days from the date he last ceased Employment in the Trade, any employment of the Participant by an Employer. 23. Reciprocal Employee - An individual on whose behalf contributions are made to another fund that has a reciprocity agreement with this Fund under which those contributions are transferred to this Fund. 24. Spouse - The Participant s legal spouse as determined under the laws of the state in which the Participant and his spouse are married. 25. Trust Agreement - Agreement and Declaration of Trust of the Atlanta Plumbers and Steamfitters Pension Fund, as amended from time to time. 26. Trustees - The persons designated to act as Trustees under the Trust Agreement and any successor Trustees designated in the manner provided therein. 27. Union - United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, AFL-CIO, Local Union No. 72 of Atlanta, Georgia. 28. Vesting Hour - Any of the following hours completed by a Participant: 1. An Hour of Service completed while the Participant was an Employee; 2. A Military Hour; 3. An Hour of Service for an Employer completed while the Participant was not an Employee if: (a) (b) Immediately preceding such employment, the Participant was an Employee of such Employer; or Immediately following such employment, the Participant became an Employee of such Employer; or 4. An Hour Worked completed while the Participant was a Reciprocal Employee. 29. Vesting Service See Vesting Service in Part IV. (Summary Plan Description) Page 11

16 PARTICIPATION, SERVICE ACCRUAL AND VESTING PART IV Commencement of Participation 1. New Employee. An individual will become a Participant as of the date he becomes an Employee. 2. New Reciprocal Employee. An individual who becomes a Reciprocal Employee and who is not a Participant as of the date the individual becomes a Reciprocal Employee will become a Participant as of the date he becomes a Reciprocal Employee. 3. Former Participant. A former Participant will again become a Participant as of the earlier of (i) the date he again becomes an Employee or Reciprocal Employee or (ii) the date as of which his Vesting Service and Credited Service are restored as explained further in this Part IV. Termination of Participation A Participant will cease being a Participant as follows: 1. Vested Participant. In the case of a Participant who has a nonforfeitable right to his Accrued Benefit, as explained under Vesting in Part IV, the earlier of the Participant s date of death or the date as of which the Participant s entire Accrued Benefit has been distributed. 2. Non-Vested Participant. In the case of a Participant who does not have at least a partial nonforfeitable right to his Accrued Benefit, the date the Participant incurs a Break in Service or, if later in the case of a Participant who has completed at least five years of Credited Service, including at least one-half year of Future Credited Service, the date the Participant ceases being an Employee. However, a Participant who becomes eligible for a disability retirement benefit will be a Participant until his date of death. Credited Service Accrual Years of Credited Service are used in calculating the benefits payable to you under the Plan (See Calculation of Accrued Benefit in Part V). Years of Credited Service should not be confused with years of Vesting Service (see Vesting Service later in this Part IV). Vesting Service is used to figure your entitlement to a retirement benefit, and Credited Service is used to calculate the amount of your benefit. Your years of Credited Service are calculated as follows: Past Credited Service A Participant who completes at least one-half year of Future Credited Service before January 1, 1979 will be granted Past Credited Service as follows: 1. Service Before The Participant will be granted one year of Past Credited Service for each calendar year, or fraction of a year, before January 1, 1973, in which: (a) He was a member of the Union during a continuous period beginning on the latest day on which he became a member of the Union; or (Summary Plan Description) Page 12

17 PARTICIPATION, SERVICE ACCRUAL AND VESTING PART IV (b) He was engaged in employment covered by the terms of a collective bargaining agreement with the Union. 2. Reduction for Governmental Service. Any Past Credited Service granted above will be reduced by one-half year for each calendar year, or fraction of a year, before January 1, 1973, in which the Participant was employed full- time by any governmental agency. Future Credited Service A Participant will be granted Future Credited Service based on his Hours Worked and Military Hours during any Plan Year beginning on and after January 1, 1973, as provided in the following table: Hours Worked and Military Hours During Plan Year 1,200 or more 900 or more but less than 1, or more but less than or more but less than 600 Less than 300 Years of Future Credited Service for Plan Year Limits on Credited Service 1. Maximum Credited Service. In the case of a Participant who does not complete at least one-half year of Credited Service on or after January 1, 1992, or whose benefit commencement date precedes January 1, 1993, the Participant will not be granted more than 25 years of Credited Service before January 1, No Duplication. In no circumstance will a Participant be granted more than one year of Past Credited Service during any calendar year or more than one year of Future Credited Service during any Plan Year. Service Credit For Non-covered Employment Normally, in order to be credited with service under the Plan, it is necessary that you work in accordance with the collective bargaining agreement establishing the Plan and have contributions made to the Fund by your Employer. However, the Plan provides for crediting of service for certain other classifications of employment, but only for purposes of determining your eligibility to participate under the Plan and whether you are vested for a particular benefit. This employment is called Non-covered Employment. Basically, Noncovered Employment must be performed immediately preceding or immediately following employment for which the same Employer made contributions to the Fund on your behalf. (Summary Plan Description) Page 13

18 PARTICIPATION, SERVICE ACCRUAL AND VESTING PART IV Should you change job classifications with the same Employer, you should immediately notify the Fund office to determine if you may be working in Non-covered Employment. Vesting Service On the previous pages we explained how to earn Credited Service, which is used to calculate the amount of your benefit due from the Plan. Credited Service should not be confused with Vesting Service, which is used to determine whether you are eligible for a benefit from the Plan. When you become vested, you have earned a nonforfeitable right to receive a benefit from the Plan upon attaining your Early or Normal Retirement Age. A Participant will be granted one year of Vesting Service for each of the years described below: 1. Before Each year (or fraction of a year) of Credited Service that the Participant completed before January 1, and Later. Each Plan Year beginning on or after January 1, 1976 during which the Participant completes at least 1,000 Vesting Hours. Vesting 1. Prior Plan. In the event a Participant had a partial or complete nonforfeitable right to his Accrued Benefit on January 1, 1976, under the Plan as in effect on December 31, 1975, (that is, if he was fully or partially vested ), the Participant will continue to have the nonforfeitable right to his Accrued Benefit. 2. Vesting Schedule. A Participant will become 100% vested with a nonforfeitable right to his Accrued Benefit (will become vested ) as provided below: (a) (b) A Participant will become 100% vested as of the last day of the Plan Year during which he completes five years of Vesting Service. (For those Participants on whose behalf contributions are made to the Fund under the terms of a collective bargaining agreement, if the Participant does not accrue at least one Hour of Service on or after January 1, 1999, 10 years of Vesting Service are required in order to become vested.) Each Participant will become 100% vested upon attaining his sixty-fifth birthday. Loss of Credited Service and Vesting Service A Participant who does not have a nonforfeitable right to his Accrued Benefit, as outlined under Vesting above, will forfeit his accrued Credited Service and Vesting Service on the date he incurs a Break in Service. (Summary Plan Description) Page 14

19 PARTICIPATION, SERVICE ACCRUAL AND VESTING PART IV Restoration of Credited Service and Vesting Service If a Participant completes one year of Vesting Service after forfeiting his Credited Service and Vesting Service as explained above, his Credited Service and Vesting Service will be restored as of the date he completes the year of Vesting Service, but only in the event he incurred a number of consecutive Breaks in Service less than the greater of (i) five or (ii) the number of years of Vesting Service that he forfeited.. (Summary Plan Description) Page 15

20 TYPES OF BENEFITS AND CALCULATION OF ACCRUED BENEFIT PART V Types of Benefits There are eight types of benefits for which you, or your surviving Spouse or Beneficiary, may become eligible under the Plan. Each of them is described in more detail on the following pages. They are: 1. Normal Retirement Benefit 2. Early Retirement Benefit 3. Late Retirement Benefit 4. Disability Retirement Benefit 5. Deferred Vested Retirement Benefit 6. Pro Rata/Partial Pension 7. Pre-Retirement Death Benefit 8. Post-Retirement Death Benefit The amount of each of the above benefits is dependent upon the amount of your Accrued Benefit, which is detailed in the following section. Calculation of Accrued Benefit For all Participants who complete at least one-half of a year of Future Credited Service after January 31, 1979, your Accrued Benefit as of any date of determination (before adjustment for time of payment commencement or form of payment selected) will be calculated based on your Credited Service earned through December 31, 2005 and the Employer Contributions required on your behalf after December 31, 2005 and through the date of determination. Your total Accrued Benefit will be equal to the sum of (1) through (5), as follows: (1) For Service Through December 31, 2005 Your monthly Accrued Benefit for Credited Service earned through December 31, 2005 is calculated by multiplying the benefit rate indicated below by the number of years of Credited Service applicable to that rate. For the Plan Year beginning January 1, 2005, the benefit rate for a Participant who was employed as an apprentice or a tradesman is different from the benefit rate for a Participant who was not employed as an apprentice or a tradesman. The applicable benefit rates are as follows: (Summary Plan Description) Page 16

21 TYPES OF BENEFITS AND CALCULATION OF ACCRUED BENEFIT PART V Plan Year of Credited Service Journeyman Benefit Rate Apprentice and Tradesman Benefit Rate Before 1980 $17.00 $ $24.50 $ $29.00 $ $35.00 $ through 1984 $40.00 $ through 1986 $55.00 $ $60.00 $ through 1989 $75.00 $ through 1992 $90.00 $ $ $ through 1996 $ $ through 1998 $ $ through 2004 $ $ $ $75.40 (2) For Service During the Period From January 1, 2006 Through March 31, 2010 Your Accrued Benefit for Credited Service earned during the period January 1, 2006 through March 31, 2010 will be equal to 2.56% of the Contributions due on your behalf (including credit for Military Hours) for that period, but not to exceed a total Accrued Benefit of $ for any Plan Year. However, you must complete at least 300 Hours Worked or Military Hours in a Plan Year in order to accrue a benefit for that year. (3) For Service Earned as a Journeyman During the Period From April 1, 2010 Through December 31, 2013 Your Accrued Benefit for Credited Service earned during the period from April 1, 2010 through December 31, 2013 while you are classified as a journeyman pursuant to the terms of a Collective Bargaining Agreement will be equal to 2.56% of the Contributions due on your behalf (including credit for Military Hours) for that period, subject to a maximum Contribution rate of $2.65 per hour worked, and not to exceed a total Accrued Benefit of $ for any Plan Year. However, you must complete at least 300 Hours Worked or Military Hours in a Plan Year in order to accrue a benefit for that year. (4) For Service Earned as an Apprentice or Tradesman During the Period From April 1, 2010 Through December 31, 2013 Your Accrued Benefit for Credited Service earned during the period from April 1, 2010 through December 31, 2013 while you are classified as an apprentice or tradesman pursuant to the terms of a Collective Bargaining Agreement will be equal to 2.56% of the Contributions due on your (Summary Plan Description) Page 17

22 TYPES OF BENEFITS AND CALCULATION OF ACCRUED BENEFIT PART V behalf (including credit for Military Hours) for that period, subject to a maximum Contribution rate of $1.85 per hour worked, and not to exceed a total Accrued Benefit of $ for any Plan Year. However, you must complete at least 300 Hours Worked or Military Hours in a Plan Year in order to accrue a benefit for that year. (5) For Service Earned on or After January 1, 2014 The portion of your Accrued Benefit for Credited Service earned on or after January 1, 2014 is called your Variable Benefit and is calculated by (a) determining an Earned Variable Amount for each Plan Year in which you have 300 or more Hours Worked or Military Hours, (b) converting that Earned Variable Amount into Variable Benefit Units for such Plan Year, and then (c) multiplying your Variable Benefit Units for all Plan Years accumulated at the time of your retirement by a Unit Value in effect at the time of determination. Your Variable Benefit will also include any Earned Variable Amount which has not yet been converted into Variable Benefit Units. Your Earned Variable Amount for a Plan Year (before conversion into Variable Benefit Units for that Plan Year) will be a monthly benefit (limited to $90.00) for that Plan Year equal to 2.00% of the Employer Contributions required to be made on your behalf during that Plan Year, provided that: If Contributions are made on your behalf as a journeyman, only Contributions up to $2.65 per hour are included for benefit purposes. If Contributions are made on your behalf as an apprentice or tradesman, only Contributions up to $1.85 per hour are included for benefit purposes. Below is a summary of the calculation of your total Accrued Benefit. A detailed explanation of how your Variable Benefit portion is determined is included in Appendix A at the end of this booklet, along with an example illustrating calculation of a Variable Benefit and Accrued Benefit for a Participant retiring in Summary of Calculation of Accrued Benefit Your Accrued Benefit is the sum of items (1) through (5), summarized briefly below. (1) Accruals through 12/31/2005 = benefit rate for each Plan Year (see preceding table of benefit rates) Credited Service earned in the Plan Year + (2) Accruals 1/1/2006 through 3/31/2010 = 2.56% Contributions for the Plan Year to a maximum of $112 each year + (3) Accruals 4/1/2010 through 12/31/2013 for Journeymen = 2.56% Contributions up to a maximum of $2.65 / hour for the Plan Year to a maximum of $112 each year + (4) Accruals 4/1/2010 through 12/31/2013 for Apprentices = 2.56% Contributions up to a maximum of $1.85 / hour for the Plan Year to a maximum of $112 each year + (5) Accruals on and after 1/1/2014 = your Variable Benefit (Summary Plan Description) Page 18

23 TYPES OF BENEFITS AND CALCULATION OF ACCRUED BENEFIT PART V Adjustments to Accrued Benefit The amount of your total Accrued Benefit will be adjusted to account for any early retirement or retirement after your Normal Retirement Date, and for the form of benefit payment selected, as explained on the following pages. (Summary Plan Description) Page 19

24 HOW YOUR RETIREMENT BENEFITS ARE PAID PART VI Automatic Forms of Benefit Payment Annuity with Three Years Certain For Unmarried Participants If you are not married when you retire and you have not elected an optional form of benefit payment, your benefit will automatically be paid in the Annuity with Three Years Certain form. This form provides for a monthly benefit payable to you for the remainder of your lifetime. If your death should occur before you have received 36 monthly payments, your benefit will be continued to your Beneficiary or Beneficiaries until the total monthly payments made to you and your Beneficiaries combined equal 36. Joint and 50% Survivor Annuity For Married Participants If you are married when you retire and you have not elected, with the written consent of your Spouse, to receive your monthly benefit in an optional form, benefits will automatically be paid in the Joint and 50% Survivor Annuity form. This form provides for the payment of a reduced monthly benefit to you for your remaining lifetime with 50% of such reduced benefit payable to your Spouse upon your death, if your Spouse survives you, for the remainder of your Spouse s lifetime. The amount payable will be the actuarial equivalent of the Annuity with Three Years Certain form, based on the respective ages of you and your Spouse at the time benefit payments begin. The Trustees will furnish to you at least 30 days before the date on which your retirement benefits as described above are scheduled to begin, but no more than 90 days before such date, a written explanation of this Joint and 50% Survivor Annuity form of payment and the difference in the amount of retirement income payable under such form of payment as compared to the optional forms outlined on the following pages. Generally, following receipt of this notice, you will have until the date upon which your retirement benefits are scheduled to begin to elect, with the written consent of your Spouse, to waive the Joint and 50% Survivor Annuity in favor of an optional form, or to revoke such an election. You may make and revoke your election any number of times within the election period provided that your spouse must provide written consent to any subsequent election. Any such election must be witnessed by a Plan representative or a notary public and must acknowledge the specific form of benefit and/or alternate Beneficiary. The election period may be reduced, with your consent, provided you are given a minimum election period of at least seven days. Optional Forms of Benefit Payment If you become eligible to receive a normal, early, late, disability or deferred vested retirement benefit, you may elect certain optional forms of benefit in place of the automatic form described above. However, if you are married at the time your benefits commence, the written consent of your Spouse will be required in order to elect certain optional forms of payment. All of the optional forms of benefit payment will be explained to you more fully at the time of your retirement, as will the amount of monthly benefit payable under each of these forms. The optional forms are as follows: (Summary Plan Description) Page 20

25 HOW YOUR RETIREMENT BENEFITS ARE PAID PART VI Annuity with Three Years Certain Under this option, a married Participant may elect to receive an unreduced monthly benefit for his lifetime, with the provision that if his death should occur before 36 monthly benefit payments have been paid, the same unreduced monthly benefit will be continued to his Beneficiary until a total of 36 payments have been made to the Participant and Beneficiary combined. Annuity with Ten Years Certain Under this option, a Participant may elect to receive a reduced monthly benefit for his lifetime, with the provision that if his death should occur before 120 monthly benefit payments have been paid, the same reduced monthly benefit will be continued to his Beneficiary until a total of 120 monthly payments have been paid to the Participant and Beneficiary combined. The monthly benefit will be reduced from the benefit otherwise payable, based on the age of the Participant at the time benefits commence, and will be the actuarial equivalent of the Annuity with Three Years Certain form. Under this option, the Participant may also choose at the time benefits commence that, should a benefit become due to his Beneficiary under this form of payment, such benefits will be paid in a lump sum to the Beneficiary. In such case, the lump sum will be the actuarial equivalent of the total monthly benefits otherwise payable to the Beneficiary. Social Security Certain Option Under this option, a Participant who retires before age 62 and begins receiving an early retirement benefit may elect to receive his benefit in the Annuity with Three Years Certain form as follows: (a) with regard to the portion of his Accrued Benefit attributable to the period before January 1, 2014, payments to the Participant will be paid in a greater monthly amount until he attains age 62, after which a reduced monthly amount will be payable. The monthly amounts will be determined so that the combined monthly amount of the Participant s early retirement benefit and his Social Security retirement benefits will remain as level as possible throughout his lifetime. Upon the Participant s death, the amount payable to the Participant s Beneficiary, if any, under the Three Years Certain guarantee for any particular month will be equal to the amount the deceased Participant would have received for that month if he had survived, and (b) with regard to the portion of his Accrued Benefit attributable to the period after December 31, 2013, payments to the Participant will be paid solely in the Annuity with Three Years Certain form of benefit payment. (Summary Plan Description) Page 21

26 HOW YOUR RETIREMENT BENEFITS ARE PAID PART VI Social Security Survivor Option Under this option, a married Participant who retires before age 62 and begins receiving an early retirement benefit may elect to receive his benefit in the Joint and Survivor Annuity form as follows: (a) with regard to the portion of his Accrued Benefit attributable to the period before January 1, 2014, payments to the Participant will be paid in greater monthly amount until he attains age 62, at which time a reduced monthly amount will be payable. The monthly amounts will be determined so that the total monthly amount of the Participant s early retirement benefit and his Social Security retirement benefits will remain as level as possible throughout his lifetime. Upon the Participant s death, the amount payable to the surviving Spouse, will equal 50%, 75% or 100% (as elected by the Participant and Spouse) of the monthly amount that the Participant would have received for any particular month if he had survived. This survivor benefit will be paid to the Participant s Spouse for the remainder of the Spouse s lifetime, and (b) with regard to the portion of his Accrued Benefit attributable to the period after December 31, 2013, payments to the Participant will be paid solely in the Joint and Survivor form of benefit payment, with the percentage continuation to the surviving Spouse the same as the percentage elected for the portion of his Accrued Benefit attributable to the period before January 1, Joint and 75% Survivor Annuity Under this option, a married Participant may elect to receive a reduced monthly benefit for his lifetime, with 75% of such reduced benefit payable to his surviving Spouse upon his death, for the remainder of the Spouse s lifetime. The amount payable will be the actuarial equivalent of the Annuity with Three Years Certain form, based on the respective ages of the Participant and his Spouse at the time benefit payments begin. Joint and 100% Survivor Annuity Under this option, a married Participant may elect to receive a reduced monthly benefit for his lifetime, with the same monthly benefit payable to his surviving Spouse upon his death, for the remainder of the Spouse s lifetime. The amount payable will be the actuarial equivalent of the Annuity with Three Years Certain form, based on the respective ages of the Participant and his Spouse at the time benefit payments begin. Joint and Survivor Annuity with Pop-Up Feature Under this option, a married Participant may elect to receive a reduced monthly benefit for his lifetime, with one-half of such reduced benefit payable to his surviving Spouse upon his death, for the remainder of the Spouse s lifetime. The amount payable will be the actuarial equivalent of the Annuity with Three Years Certain form based on the respective ages of the Participant and Spouse at the time benefit payments begin. However, if the Spouse pre-deceases the Participant, the continuing amount payable to (Summary Plan Description) Page 22

27 HOW YOUR RETIREMENT BENEFITS ARE PAID PART VI the Participant will be increased to the amount which would have been payable had the Participant elected an Annuity with Three Years Certain form of benefit payment. This Pop-Up Feature may also be selected in connection with a Joint and 75% Survivor Annuity or a Joint and 100% Survivor Annuity. Notification Regarding Forms of Benefit Payment and Effect on Timing and Amount of Benefits When you are ready to retire, whether you are single or married, a written notice will be provided to you explaining: (a) the terms and conditions of the Joint and 50% Survivor Annuity (if you are married) or the Annuity with Three Years Certain (if you are single), (b) your right to make, and the effect of, an election to waive the Joint and 50% Survivor Annuity or Annuity with Three Years Certain, if applicable, (c) the rights of your Spouse to consent to elections made by you, (d) the right to make, and the effect of, a revocation of an election to waive the Joint and 50% Survivor Annuity or Annuity with Three Years Certain, if applicable, (e) the relative values of the various optional forms of benefits under the Plan, including the difference in the amount of benefit payable under the Joint and 50% Survivor Annuity form of payment as compared to the amount otherwise payable, and (f) the effect of the election of a retroactive annuity starting date, if applicable, and (g) your right, if any, to defer receipt of a distribution, including a description of the consequences of failing to defer such receipt. Generally, this notice will be provided during the period beginning no more than 90 days before, and ending no less than 30 days before, the date determined under the Plan provisions that your benefits are to commence (referred to as your annuity starting date ). If such notice is provided before, but less than 30 days before, your annuity starting date (for instance, in the case of short notice by you that you wish to retire), you (and your Spouse, if married) may make an affirmative election to waive the 30 day requirement, although actual distribution cannot begin earlier than the eighth day after you have received such notice. If for any reason this notice is not provided to you before your annuity starting date, then an additional annuity starting date will be established for you which is after (but not more than 90 days after) the date that the notice is provided. You may then elect, with spousal consent (if applicable), either to have benefits commence on this later annuity starting date, or to have benefits commence on the earlier annuity starting date (which, if elected, will then be referred to as a retroactive annuity starting date ). If a retroactive annuity starting date is applicable, then you may elect to have your benefits either: (1) determined as of the later annuity starting date with benefits commencing as of the later annuity starting date, or (2) determined as of the earlier retroactive annuity starting date with benefits commencing as of this earlier date. If you elect a retroactive annuity starting date, then you will be entitled to retroactive payments, with interest. (Summary Plan Description) Page 23