UFCW-NORTHERN CALIFORNIA EMPLOYERS JOINT PENSION PLAN

Transcription

1 SUMMARY PLAN DESCRIPTION UFCW-NORTHERN CALIFORNIA EMPLOYERS JOINT PENSION PLAN 2010

2

3 UFCW-NORTHERN CALIFORNIA EMPLOYERS JOINT PENSION PLAN Treat Towers 1277 Treat Boulevard, 10th Floor Walnut Creek, California Mailing address: P.O. Box 8085, Walnut Creek, CA Telephone: Facsimile: BOARD OF TRUSTEES Union Trustees Joseph Ambrosi David Blitzstein Michael A. Borstel Timothy S. Hamann Ronald Lind Patrick K. Loo Jacques S. Loveall Michael Sharpe Kirk L. Vogt Administrative Office UFCW-Employers Benefit Plans of Northern California Group Administration LLC Legal Counsel Davis, Cowell & Bowe, LLP Seyfarth Shaw LLP Employer Trustees Brent Bohn David Cuesta James V. Morgan Rick Silva W. Robert Vallon Auditor Hemming Morse, Inc. Consultants and Actuaries Crews MacQuarrie & Associates, Inc. The Segal Company This booklet only applies to members covered by a Collective Bargaining Agreement ratified in 2005 or later. I

4

5 TABLE OF CONTENTS INTRODUCTION Summary of Benefits 1 YOUR PENSION BASICS A BRIEF SUMMARY 2 BEGINNING WORK 4 Becoming a Participant 4 Working and Earning Plan Credit 4 LEAVING WORK 6 Breaks in Service 6 Exceptions to the Break in Service Rules 7 Separation in Service Benefit Freeze 9 IF YOU GET MARRIED OR DIVORCED 9 Marriage 9 Divorce 9 BECOMING DISABLED 10 Eligibility for Credited Service due to Disability 10 Eligibility for Disability Retirement Benefits 10 Calculating Your Disability Retirement Benefit 10 Payment of Your Disability Retirement Benefit 10 PREPARING FOR RETIREMENT 11 Your Pension Benefits 11 Applying For Your Pension Benefit 11 Claims and Appeals Procedures 12 Your Social Security Benefits 14 Your Personal Savings 14 TYPES OF PENSION BENEFITS 14 Normal Retirement Benefits 15 Early Retirement Benefits 26 Golden 85 Unreduced Early Retirement Benefits 27 Disability Retirement Benefits 27 YOUR PENSION PAYMENT OPTIONS 27 Regular Form of Benefit 27 75% Joint and Survivor Annuity Options 28 Income Adjustment Option 28 Pension Payment Verification 29 Tax Withholding 29 RETURNING TO WORK 29 Before Your Pension Payments Begin 29 Suspension of Benefits After Your Pension Payments Begin 30 Resuming Pension Payments 30 IN THE EVENT OF DEATH 30 If You Die 30 Social Security Death Benefits 31 If Your Spouse Dies 31 ADMINISTRATIVE INFORMATION 32 General Information About the Plan 32 If the Plan is Ended or Modified 34 Circumstances Which May Result in the Loss of Your Benefits 35 The PBGC Guarantees Pension Benefits 35 Your Rights Are Protected by ERISA 36 APPENDIX A 38 Participating UFCW Northern California Union Locals 38 APPENDIX B 39 Historical Benefit Formula Amounts 39 TOC

6 This booklet contains only highlights of certain features of the UFCW-Northern California Employers Joint Pension Plan. Full details are contained in the Plan Documents that establish the Plan provisions. If there is a discrepancy between the wording here and the documents that establish the Plan, the Plan Document will govern. The Trustees reserve the right to amend, modify or terminate the Plan at any time. Only the full Board of Trustees is authorized to interpret the Plan. The Trustees of the Pension Plan, representing the Unions and Employers with an equal number of votes, have the sole discretion to decide all questions about the Plan, including questions about your eligibility for benefits and the amount of any benefits payable to you. No individual Trustee, employer or union representative has the authority to interpret this Plan on behalf of the Board or to act as an agent of the Board. While Benefit Representatives in each of the Union Local offices can assist you in making inquiries about your benefits, they cannot answer questions on behalf of the Board about Plan provisions and regulations or benefits you earn under the Plan. The Board has authorized the Administrative Office to respond in writing to your written questions. If you have a question about your benefits, you should write the Administrative Office for a definitive answer. Responses to your questions will be in writing from the Administrative Office staff on behalf of the Trustees. As a courtesy to you, the Administrative Office also may respond informally to oral questions. However, oral information and answers are not binding upon the Board of Trustees and cannot be relied on in any dispute concerning your benefits. For information about your eligibility and your benefits, you should send or bring written information concerning your circumstances to the Administrative Office. Forms to inquire about your eligibility for benefits are available from the Administrative Office or the sub-administrative office at your Union Local. The information should be as complete and accurate as possible; otherwise you cannot rely on the answers to your inquiries. Both your Union and your Employer are very proud of their part in helping to establish this excellent benefit program for you. It is very important that you read and understand the rules by which you will become entitled to the valuable benefits provided through this program. If you have any questions that are not fully answered by this booklet, please feel free to contact the Administrative Office or the sub-administrative office at your Union Local. This booklet contains a summary in English of your Plan rights and benefits under the UFCW-Northern California Employers Joint Pension Plan. If you have difficulty understanding any part of this booklet, contact the Administrative Office at Treat Towers, 1277 Treat Boulevard, 10th Floor, Walnut Creek, California Office hours are from 8:30 a.m. to 4:30 p.m. Monday through Friday. You may also call the Administrative Office at for assistance.

7 INTRODUCTION The Board of Trustees of the UFCW-Northern California Employers Joint Pension Plan is pleased to offer you a retirement plan designed to reward your years of employment. This Summary Plan Description has been prepared to provide you with information about your Plan. The Plan was established April 1, 1957 as a result of Collective Bargaining Agreements between Retail Food Industry Employers and various Union Locals. (Participating UFCW Union Locals are listed in Appendix A.) Since that time, the Plan has been changed and improved several times. This booklet, called a Summary Plan Description, includes the latest Collective Bargaining changes adopted as of the date of this Summary Plan Description. The Plan may be amended in the future from time to time. A summary of any significant changes will be mailed to all Participants whenever such changes occur. You should report any change in your address to the Administrative Office to ensure that you receive notice of any change in the Plan. SUMMARY OF BENEFITS Your pension benefit can be a significant part of your retirement income. The amount of your pension benefit is based on the number of years you work for an Employer who makes contributions to the Plan on your behalf. Generally, the longer you work for a Contributing Employer, the greater your pension. The Plan offers you: Pensions at various retirement ages, Payment options, Disability benefits, and Survivor benefits for your spouse and/or eligible exspouse or dependent children. This booklet has been prepared to give you an overview of the Plan. It summarizes the important provisions of the Plan as accurately as possible. This Summary does not contain every detail addressed in the Plan. Please keep this booklet in a safe place. If you are married or have children, share this booklet with your family. Contact the Administrative Office at if you have any questions about your Plan. You pay nothing toward your pension benefit. Your Employer pays the full cost. Please note as you read through this book that the benefits described apply to Participants who are active under the Plan on or after the ratifications of the contract changes made in 2005 or later. If you left employment in the Retail Food Industry before the Collective Bargaining ratification of the contract changes made in 2005, or are under an older Collective Bargaining Agreement or your employment in the Retail Food Industry has been interrupted by periods of absence, your pension benefits may be different from those described in this booklet. 1

8 YOUR PENSION BASICS A BRIEF SUMMARY PAGE 1 Becoming a Participant If you were hired before the ratification of the contract changes made in 2005 (referred to as Group 1 Members ): You become a Participant as of the first day of the month after you earn 375 Hours of Service within any Plan Year or in the 12 consecutive months beginning on your date of hire. Your service must include at least one Hour of Covered Service. If you were hired on or after the ratification of the contract changes made in 2005 (referred to as Group 2 Members ): You become a Participant as of the first day of the month after you are age 21 and have earned 750 Hours of Service within any Plan Year or in the 12 consecutive months beginning on your date of hire. Your service must include at least one Hour of Covered Service. If you leave Covered Service and do not earn at least one Hour of Service in any six-month period, you will be a Group 2 member (regardless of your status before your absence or your original date of hire) unless such failure to earn at least one Hour of Service in such six-month period is due to your disability, military service or leave under the Family Medical Leave Act or California Family Rights Act. Earning Plan Credit Vesting Credit Determines your right to a pension benefit. When you earn five Vesting Credits, you have earned the right to a pension under the Plan (provided you have at least one Hour of Service on or after January 1, 1999). Generally, you earn one Vesting Credit for each Plan Year in which you complete at least 750 Hours of Service. You earn no Vesting Credit if you complete less than 150 Hours of Service in a Plan Year. However, you may earn partial Vesting Credit if you complete less than 750, but more than 150 Hours of Service (see page 4). Hours of Service Includes both Hours of Covered Service and Connecting Noncovered Service. Both are used to determine eligibility and vesting. Hours of Covered Service usually means work in the Northern California retail food, meat and liquor industry within the jurisdiction of the Union. It can also mean work for the Union or the Plan, hours for which you are paid for vacation, jury duty, holiday absences, funeral leave and certain absences for qualifying military service or disabilities. Your Hours of Service are used in the determination of your Credited Service. Connecting Noncovered Service means hours of work for a contributing Employer immediately before or following your Covered Service with that same Employer without an intervening quit, discharge or retirement. Credited Service (also referred to as Benefit Credit) Used in calculating the amount of your pension benefit. Your Credited Service is a combination of your Credited Future Service and Credited Past Service. You earn Credited Future Service based on the number of Hours of Covered Service you work in a Plan Year and Hours of Service earned during periods of military service and approved disability as provided under the Plan. Generally, you earn one year of Credited Future Service for each Plan Year in which you complete at least 1,800 Hours of Service. You earn partial years of Credited Future Service by dividing your Hours of Covered Service by 2,000, provided you earned at least 150 Hours of Covered Service in that Plan Year. You may also earn Credited Past Service for Covered Service earned prior to your Employer s entry into the Plan (in most cases April 1, 1957) or Special Credited Past Service if you meet certain requirements. 2

9 Types of Retirement Benefits Normal Retirement Benefits are available as early as age 60 for Group 1 Members and age 65 for Group 2 Members. Early Retirement Benefits are available as early as age 50 for Group 1 Members, provided: You are under age 60, and You have at least 10 Vesting Credits or 8,000 Hours of Service (limited to 2,000 Hours of Service in any Plan Year) during a continuous 10-year period with at least 150 Hours of Service in each of those 10 Plan Years. Generally, your pension benefit is reduced for early retirement. However, if you are a Group 1 Member there is no reduction in the case of: Golden 85 Unreduced Early Retirement Benefits (also referred to as Rule of 85): generally are available if you are a Group 1 Member under age 60 and your age and years of Credited Service equal 85 or more. This is not available for former Butcher Plan participants whose employer contribution rate is less than the highest Butcher or Meat Department contribution rate. Group 2 Members are not eligible for the Golden 85 Unreduced Early Retirement Benefits. Early Retirement Benefits are available as early as age 55 for Group 2 Members provided: You are under age 65, and You have at least 5 Vesting Credits. Generally, your pension benefit is reduced for early retirement. Disability Pensions are available if: You are eligible for Social Security Disability Benefits, You are under age 60 if you are a Group 1 Member or under age 65 if you are a Group 2 Member, Your disability began after you earned at least 10 Vesting Credits or at least 8,000 Hours of Service (limited to 2,000 Hours of Service in any Plan Year) during a continuous 10-year period with at least 150 Hours of Service in each of those 10 Plan Years, and You do not have a Separation in Service as of the end of the Plan Year before the year your disability begins unless you have earned some additional Credited Service since that date. The Income Adjustment Option, as described in the next section, is not an available option for Disability Pensions. If you elect an Income Adjustment Option, you will not be allowed to convert to a Disability Retirement Benefit. Reciprocal Retirement Benefits may be available if you earned Vesting Credit under another Plan that has a reciprocal agreement with this Plan. Payment of Retirement Benefits In the Event ofyour Death (see page 30) You will generally receive equal monthly retirement benefits for your lifetime. If you are eligible for and elect the Income Adjustment Option (sometimes referred to as the Social Security Adjustment Option) you will receive higher payments before age 62 and lower payments after age 62. Your combined pension and Social Security payments before and after you begin receiving your Social Security benefits will be roughly equal (see page 28). Your Surviving Spouse and/or eligible ex-spouse may receive the Surviving Spouse s Benefit. Your dependent children may receive the Non-Spouse Survivor Benefit if you do not have a Surviving Spouse and/or eligible ex-spouse or alternate payee at the time of your death. Retirement benefits will end if you have no spouse and/or eligible ex-spouse or dependent children. 3

10 BEGINNING WORK BECOMING A PARTICIPANT If you are a Group 1 Member You become a Participant in the Plan after you earn 375 Hours of Service (including at least one Hour of Covered Service) in any Plan Year or in the 12 consecutive months beginning on your date of hire. Your participation date is the first of the month after you meet the 375-hour requirement. Your Hours of Service include employment in Covered Service and Connecting Noncovered Service. Plan Year means the calendar year January 1 through December 31. If you are a Group 2 Member The earliest you become a Participant in the Plan is the first of the month after you are age 21 and have earned 750 Hours of Service (including at least one Hour of Covered Service) in any Plan Year or in the 12 consecutive months beginning on your date of hire. Your participation date is the first of the month after you meet the age 21 and the 750-hour requirements. Your Hours of Service include employment in Covered Service and Connecting Noncovered Service. Covered Service includes only hours in which you work: In the Northern California retail food, meat and liquor industry within the jurisdiction of the Union, For the Union, or For the UFCW-Northern California Employers Joint Pension Plan or UFCW-Employers Benefit Plans of Northern California Group Administration LLC, or any successor thereto, unless such employment is covered by a Collective Bargaining Agreement which does not provide for participation under the Plan. Hours for which you are paid for vacation, jury duty, holiday absences, and funeral leave are also considered Covered Service. Covered Service may also include periods of time during which you receive State Disability or Workers Compensation Benefits, provided that your disability started on or after March 1, You will be credited with six Hours of Covered Service for each day of disability up to a maximum of 1,800 Hours of Covered Service during your lifetime. Under certain circumstances, you may also receive credit for Hours of Covered Service for military duty. Connecting Noncovered Service includes hours of work for a contributing Employer which is immediately before or following your Covered Service with that same Employer without any intervening quit, discharge or retirement. Connecting Noncovered Service on or after January 1, 1976 is counted in determining: Your participation, and Vesting, if including it would result in your receiving one full Vesting Credit for that Plan Year. Connecting Noncovered Service is not counted in determining Credited Service. WORKING AND EARNING PLAN CREDIT The Plan has two basic types of credit. Vesting Credit is used to determine your right to receive benefits from the Plan. Credited Service is used to determine the amount of your benefit. Vesting Credit Once you are vested, you earn a right to a pension from the Plan and you will not lose that right, even if you stop working in the industry. Generally, you become vested once you have five Vesting Credits, as long as you have one Hour of Service on or after January 1, Check with the Administrative Office for the definition of vested if you did not work one Hour of Service on or after January 1, 1999 or if you are not covered by a Collective Bargaining Agreement. If you are a participant in the Plan when you reach Normal Retirement age you will be vested when you reach your 5th anniversary as a participant (see page 15). 4

11 Types of Plan Credit Vesting Credit is used to determine your right to receive benefits from the Plan. Credited Service is used to determine the amount of your benefit. You earn one full Vesting Credit for each Plan Year in which you have 750 or more Hours of Service, beginning with the year in which an Employer began to contribute to the Plan on your behalf. If you have less than 750 Hours of Service during a Plan Year, you earn partial Vesting Credit that is determined by dividing your Hours of Service by 2,000. You will receive no Vesting Credit for years in which you have less than 150 Hours of Service. For Example: Carlos works 750 Hours of Service in He earns one Vesting Credit. In 2007, Carlos works 500 Hours of Service. He earns ¼ (0.25) Vesting Credit, calculated by dividing his 500 Hours of Service by 2,000. Reciprocal Agreements The Plan has reciprocal agreements with other pension plans. If you work in the jurisdiction of a related plan, you may (subject to qualifying requirements) get credit towards eligibility for Vesting in the Plan based on Credit you earn in the related plan. Contact the Administrative Office to verify whether you are entitled to reciprocal credit and its effect on benefits from this Plan. Credited Service (Also Referred to as Benefit Credit) The amount of Credited Service you earn is used to calculate your Retirement Benefit. Credited Service is a combination of your Credited Future Service and Credited Past Service or Credited Special Past Service. You may earn no more than one year of Credited Service in any Plan Year. Credited Future Service Credited Future Service is based on your Covered Service for which your Employer is required to contribute to the Plan on your behalf and Covered Service earned during periods of military service and approved disability. You receive a year of Credited Future Service if you have 1,800 or more Hours of Covered Service during a Plan Year. You must earn at least 150 Hours of Covered Service to receive a partial year of Credited Future Service. Partial years of Credited Future Service are calculated by dividing your Hours of Service (of 150 or more hours) by 2,000. For Example: Irina works 1,800 Hours of Service in She earns one year of Credited Service. In 2007, Irina works 1,000 Hours of Service. She earns ½ (0.5) year of Credited Service, calculated by dividing her 1,000 Hours of Service by 2,000. Hours of Service Amount of Credited Worked in a PlanYear Future Service Earned , , , Credited Service for Past Service or Special Past Service Under certain circumstances, you may receive Credited Past Service for employment prior to the date your employer was first obligated to make contributions to the Plan or Special Credited Past Service. Contact the Administrative Office if you think this applies to you. 5

12 LEAVING WORK BREAKS IN SERVICE The purpose of the Plan is to provide retirement benefits to employees who have worked in Covered Service continuously over a period of time. However, the Plan recognizes that there may be times when your employment is interrupted. If you are vested and leave Covered Service, you are still considered a Participant in the Plan and eligible for a pension. If you are not vested and you leave Covered Service, you may incur a Break in Service. There are two kinds of Breaks in Service: One-Year Break in Service, and Permanent Break in Service. PERMANENT BREAK IN SERVICE Generally, when you incur five consecutive One-Year Breaks in Service before you are vested you have a Permanent Break in Service. If you incur a Permanent Break in Service you will no longer be a Participant in the Plan, and all of your prior Vesting Credit and Credited Service will be permanently lost. If you return to Covered Service after a Permanent Break in Service: You are treated as a new employee, and Any previous work in Covered Service cannot be included to determine your eligibility to participate in the Plan or receive a pension. Once you incur a Permanent Service Break, you may become a Participant again by meeting the Plan s participation requirements (see example on page 7). ONE-YEAR BREAK IN SERVICE If you are not vested and do not complete at least 150 Hours of Service during any Plan Year after 1975, you will have a One-Year Break in Service. It is not considered a One-Year Break in Service, however, if you earn hours in Connecting Noncovered Service. If you are not vested and incur a One-Year Break in Service, you will no longer be a Participant in the Plan and will lose your accumulated Credited Service and Vesting Credit. Your service may be reinstated should you reestablish Participation prior to a Permanent Break in Service. Permanent Break in Service generally means you have five years in a row away from Covered Service. After you have a Permanent Break in Service, you lose all of your Vesting Credit and Credited Service earned before the Permanent Break in Service. A One-Year Break in Service generally occurs when you complete fewer than 150 Hours of Service during any Plan Year. Exceptions to this rule are listed beginning on page 7. 6

13 For Example: Maria becomes a Plan Participant in January 1998 and she then has the following Hours of Covered Service: Plan Year Hours Earned Vesting Credit , , Lost Participant Status Permanent Break in Service , Maria incurred a Permanent Break in Service because she had five consecutive One-Year Breaks in Service from 2001 through She will start over as a new Participant in 2007, needing to meet the rules for a Group 2 Member in order to reestablish her participation. Suppose, however, that Maria had worked 150 or more Hours of Service in In that case, she would have reestablished participation and would not have incurred a Permanent Break in Service. All of the Vesting Credit and Credited Service she earned since she began working in 1998 would be counted in determining her eligibility and her pension amount. EXCEPTIONS TO THE BREAK IN SERVICE RULES Military Leave You may receive credit when you serve in any of the uniformed services of the United States and then return to work. Generally, if you are in the service for five years or less and return to work in the required time, you will: Not have a Break in Service, and Earn Vesting Credit and Credited Service for the time you were in the military. To be eligible to earn Vesting Credits and Credited Service for your military service you must: Notify your Employer that you are entering military service, Leave service under honorable conditions, and Report back to work or apply for reemployment within the time frame required by law after you complete your active duty as outlined in the following chart. Length of Military Service Less than 31 days Reemployment Deadline Within 1 day after discharge (allowing travel time plus eight hours) 31 through 180 days Within 14 days after discharge More than 180 days Within 90 days after discharge Upon your return to work from military service, you will generally be credited with the number of Vesting Credits (up to five) and Credited Service (up to five) you would have earned during your period of service if you had continued working rather than serving in the uniformed services of the United States. If you have any questions regarding military service or your return to work after military service, you should call the Administrative Office. 7

14 Maternity/Paternity Leave If you are absent from work for maternity/paternity leave during a Plan Year after January 1, 1987, you will be credited with up to 150 Hours of Service in that Plan Year or in the immediately following Plan Year to prevent a Break in Service. You will be credited with the number of Hours of Service you would normally have been credited, or if this cannot be determined, eight Hours of Service per day of absence up to 150 Hours. These hours are applied to prevent a Break in Service and do not count toward Vesting Credit or Credited Service. FMLA leave includes absences from work because of: Pregnancy, The birth, adoption, placement with you for foster care or adoption of a child, The care of a seriously ill spouse, parent or child, or Your own serious illness. Maternity/Paternity Leave is leave taken for: Pregnancy, Birth or adoption of a child, or Care of a child after birth, adoption or placement for adoption. Other Exceptions to the Break in Service Rules A One-Year Break in Service will not occur if the Break in Service resulted from any of the following: Temporary layoff, Approved leave of absence, You will not be credited with service under these exceptions to the Break in Service rules unless you furnish evidence to the Administrative Office of the cause of your absence within 24 months of the beginning of your absence from work. The evidence, such as medical or employment records, must establish to the Trustees that your absence is for one of the exceptions and the number of days of your absence. Although the 24-month notification requirement does not apply in the case of disability due to pregnancy, it is recommended that you notify the Administrative Office promptly. Family And Medical Leave Act During a leave of up to 12 weeks, your absence will not count toward a Break in Service, provided such leave was granted by your Employer in accordance with the Family and Medical Leave Act (FMLA). You must return to work in Covered Service on or before the expiration date of the FMLA leave of absence. Your unpaid FMLA leave will not be treated as Hours of Service for purposes of eligibility to participate in the Plan or earning Vesting Credit or Credited Service. Disability absence due to illness, injury or pregnancy, Wartime relocation law or regulations, Employment by an Employer in the Northern California food industry in a position not covered by a Collective Bargaining Agreement, Military Service, Employment under the former California Butchers Pension Plan if you did not incur a Separation in Service from that plan, Serving as an Employee or official of the Union, or of the United Food and Commercial Workers International Union in the area covered by the Plan, or Self-employment in the Retail Food Industry. For purposes of determining whether or not you have had a Break in Service, you will be credited with the Hours of Service you would normally have earned during the period of absence that falls within the exceptions to the Break in Service rules. If that cannot be easily determined, you will be credited with eight Hours of Service each day. No more than 150 Hours of Service will be credited per Plan Year. 8

15 SEPARATION IN SERVICE BENEFIT FREEZE If you have a Separation in Service, the benefits you have accrued up to that date will be based on the Plan formula in effect at the time your Separation in Service occurred. You will not be eligible for subsequent improvements in the benefit formula because your benefits will be frozen. If you return to work after a Separation in Service and earn additional Credited Service for that subsequent employment, that Credited Service is not subject to the freeze and will be determined based on the formula in effect when you return to work. Whether or not you are vested in your retirement benefits, a Separation in Service occurs at the end of any Plan Year in which you fail to earn at least 150 Hours of Covered Service, unless you meet one of the exceptions to the Break in Service rules. A Separation in Service also occurs when a participant commences receiving retirement benefits, except for mandatory distributions at age 70-1/2, under the Plan. The following work will be considered a Separation in Service unless you earn three years of Credited Service when you subsequently return to Covered Service: Employment by an Employer in the Northern California food industry in a position not covered by a Collective Bargaining Agreement, Serving as an Employee or official of the Union, or of the United Food and Commercial Workers International Union in the area covered by the Plan, or Self-employment in the Retail Food Industry. For Example: At age 37, Huynh left his employment after 14 years in the Retail Food Industry to become a teacher.when Huynh applies to the Administrative Office for his Normal Retirement Benefit at age 60, his monthly Normal Retirement Benefit will be calculated based on the formula in effect when he left the Retail Food Industry and the Separation in Service occurred. IF YOU GET MARRIED OR DIVORCED Your pension benefits may be affected when you marry or divorce. It is important to remember that either of these events may affect benefits other than your pension benefit. Therefore, you should contact the Administrative Office to update the Fund records regarding your marital status and any address change. For purposes of the Plan, marriage is defined as provided under federal law. The Surviving Spouse s Benefit may provide a monthly benefit to your spouse in the event of your death. MARRIAGE If you are vested and have been married throughout the twelve months immediately preceding your death, your Surviving Spouse is generally eligible for the Plan s Surviving Spouse s Benefit. This benefit provides your spouse with a monthly benefit for his or her lifetime. See page 27 for more information about this benefit. DIVORCE If you are divorced or separated, your former spouse, or child, or dependent (an Alternate Payee ) may require the Plan to pay a portion of the benefits you have earned under the Plan to them, but only if the Plan is ordered to do so by a Qualified Domestic Relations Order (a QDRO ). If the Administrative Office receives a domestic relations order for payment to be made to an Alternate Payee, the Administrative Office will notify you and the Alternate Payee and will then determine whether or not the order is a QDRO as defined by law. Once such a determination has been made, the Administrative Office will make payment of benefits in accordance with the QDRO and the law. If you have questions about QDROs or need a copy of the Plan s QDRO procedures, at no charge, please contact the Administrative Office. Qualified Domestic Relations Order (QDRO) A QDRO is a court order that requires the Plan to pay all or a portion of your pension benefits to your spouse, former spouse or dependent(s). 9

16 BECOMING DISABLED ELIGIBILITY FOR CREDITED SERVICE DUE TO DISABILITY Periods of Disability, which occur or begin on or after March 1, 1992, for which the Participant receives Workers Compensation or State Disability Insurance payments, shall be treated as Covered Service. Six Hours of Service shall be credited for each day of such disability. However, such Covered Service shall not exceed (a) the additional hours of Covered Service required for a Participant to attain 1,800 hours of Covered Service in a Plan Year or (b) 1,800 hours of Covered Service during the Participant s lifetime. ELIGIBILITY FOR DISABILITY RETIREMENT BENEFITS You are eligible for Disability Retirement Benefits if: You are eligible for Social Security Disability Benefits, You are under age 60 if you are a Group 1 Member or under age 65 if you are a Group 2 Member, You have at least: 10 Vesting Credits, or 8,000 Hours of Service over a continuous 10-year period (with a minimum of 150 in each of those 10 Plan Years and a maximum of 2,000 Hours of Service in any Plan Year), and You do not have a Separation in Service as of the end of the Plan Year before the year your disability begins, unless you have accrued some additional Credited Service after your Separation in Service and prior to the beginning of your disability. Until you reach age 60 if you are a Group 1 Member, or age 65 if you are a Group 2 Member, you must furnish evidence of your continued eligibility for Social Security Disability Benefits each year that you are receiving Disability Retirement Benefits. If your Social Security Disability Benefits stop, your Disability Retirement Benefits will stop and you may apply for Normal or Early Retirement Benefits when you are eligible. CALCULATING YOUR DISABILITY RETIREMENT BENEFIT Your monthly Disability Retirement Benefit is determined in the same way as your Normal Retirement Benefit, based on your total years of Credited Service earned before your disability. There is no reduction for age. PAYMENT OF YOUR DISABILITY RETIREMENT BENEFIT Your Disability Retirement Benefits will be retroactive to the date you are entitled to receive Social Security Disability Benefits provided that the Administrative Office receives your application for Disability Retirement Benefits within six months after the date of your Social Security Disability Award Letter. If the Administrative Office receives your application for Disability Retirement Benefits more than six months after the date of your Social Security Disability Award Letter, your Disability Retirement Benefits will not be retroactive and will instead be effective the first of the month following the month in which the Administrative Office receives your application. You will receive Disability Retirement Benefits only for months in which you receive Social Security Disability Benefits. Early Retirement Benefits Pending Social Security Disability Award If you have applied for and have not yet received your Social Security Disability Award, but you are eligible for Early Retirement Benefits, you may apply for Early Retirement Benefits to be paid while you are waiting for your Social Security Disability Award. Your Early Retirement Benefits (which are reduced for age) will be converted to Disability Retirement Benefits (which are not reduced for age), provided your entitlement to Social Security Disability is no more than six months after your Early Retirement date. If you are not entitled to receive a Social Security Disability Award with a date of entitlement within six months after your Early Retirement date, you will continue to receive your Early Retirement Benefit, and it will not be converted to a Disability Retirement Benefit at any time. The Income Adjustment Option is not available for those participants who are eligible for a Disability Retirement Benefit. Therefore, if you retire early and elect the Income Adjustment Option, you will not be permitted to convert your benefit to a Disability Retirement, even if it is determined that you were entitled to Social Security Disability within six months of your Early Retirement date. 10

17 PREPARING FOR RETIREMENT YOUR PENSION BENEFITS Preparing for retirement will take planning on your part. Regardless of how you decide to fill your days when you retire, you will want to be financially comfortable. This section is designed to give you an idea of how much money you may need during retirement and how to save for a comfortable retirement. Experts say most people will need between 75% and 85% of pre-retirement income annually during retirement to maintain their pre-retirement standard of living. This amount may vary depending on your financial obligations, so consult a financial advisor for advice. For Example: Galena is planning to retire soon and currently earns $40,000 a year. She will need about $30,000 a year (75% of $40,000) to maintain her current lifestyle after she retires. Three sources your pension benefits, your Social Security benefits and your personal savings should combine to meet your living expenses during your retirement. Understanding how these sources work can help you plan for a financially secure retirement and achieve a comfortable retirement lifestyle. Retirement Checklist The questions below have been prepared to help you think about some expenses you may incur during retirement. APPLYING FOR YOUR PENSION BENEFIT In order to begin collecting retirement benefits, you must file a Retirement Application with the Administrative Office, but not more than 180 days before your requested date of retirement. No benefits will be paid before your Required Beginning Date, unless and until a Retirement Application has been filed. You may request a Retirement Application from either the Administrative Office or your Union Local. You must supply proof of age, your marriage certificate and any other documentation necessary to complete your file and your Retirement Application. Although it is recommended that Retirement Applications be filed in advance of your anticipated retirement date, the Plan does permit payment of retroactive pension benefits prior to the date that an application is received in the Administrative Office for Normal Retirement Benefits, as long as you have not been engaged in suspendible employment during that retroactive period and are otherwise eligible to receive a benefit from this Plan. If you delay applying for your Normal Retirement Benefits until after your Normal Retirement Age and do not elect retroactive benefit payments, your Normal Retirement Benefit will be actuarially adjusted to reflect your late retirement. This increase accounts for the shorter period of time you are expected to receive payments. Your Normal Retirement Benefit will not be actuarially adjusted for any period of time your benefits were or could have been suspended. During your retirement years... Will you be responsible for paying for your child s education? Do you plan to travel? Will your home be paid for? Will your household expenses be lower (children living on their own, smaller home, etc.)? When do you plan to begin receiving your Social Security benefit? How much will it be? Will your hobbies require increased savings? Will you be responsible for your parents or spouse s parents? 11

18 If you are considering the Income Adjustment Option, you should request a benefit estimate from the Social Security Administration and provide that estimate to the Administrative Office with your Application. You may designate someone in writing as your authorized representative to be responsible for filing your application for retirement benefits. Your designation must be on a form provided by the Pension Plan that you can obtain from the Administrative Office or your Union Local office. The form can also be downloaded from When Your Benefits Begin Unless you elect a retroactive payment date (as explained below), your pension benefits will begin effective on the first of the month following the month in which your written Retirement Application is filed in the Administrative Office provided you have satisfied all eligibility requirements. In addition to the general eligibility rules, in order to retire before your Normal Retirement Age, you must terminate any and all employment with a contributing employer before the month in which your retirement benefits become effective. If you work any hours for a contributing employer in any capacity in the month in which your retirement benefits would otherwise become effective, you will not be considered to have retired under the Plan. You will not receive any benefit payments and you will be required to file a new application for retirement benefits (and actually cease working) before you will be eligible to receive your retirement benefits before your Normal Retirement Age. If you retire on or after your Normal Retirement Age, you are not required to terminate your employment with a contributing employer prior to retiring. However, please note that regardless of whether you retire before or after Normal Retirement Age, you still may not be eligible to receive your pension benefits in the month your benefits would otherwise be effective if you are working in suspendible service in that month. Please see page 30 for more information on suspendible service. Retroactive Payment Date After Normal Retirement Age The Plan allows you to request a retroactive payment date if you delay applying for your retirement benefit until after you have reached your Normal Retirement Age. Under this rule, you can request that your monthly payments begin on the date you were first eligible to receive your Normal Retirement Benefit as long as you have not been engaged in suspendible employment during that retroactive period and are otherwise eligible to receive a benefit from this Plan. If you are married, your spouse must also consent to your election of a retroactive payment date. If you elect a retroactive payment date and satisfy the conditions for receiving a retroactive payment date, your first benefit payment will include all monthly benefit payments due from your retroactive payment date up to the date of your first payment. The Plan also pays interest on those retroactive monthly benefit payments. Required Beginning Date You must begin receiving your retirement benefits no later than April 1 of the Plan Year after the year in which you reach age 70-½, whether or not you continue to work. CLAIMS AND APPEALS PROCEDURES Processing Claims Generally, the Administrative Office will acknowledge your application and follow up, if appropriate, with an explanation of the forms of payments and amount of those payments available to you within 30 to 90 days after you file your application. In some cases, additional time may be necessary to process your application. To protect your rights, you should contact the Administrative Office if you do not receive an acknowledgment of receipt within 10 days of mailing your Application. 12

19 If Your Claim Is Denied If your application is denied in whole or in part, you will receive a written notice of the denial within 90 days after you file your application with the Administrative Office. If necessary, this may be extended to 180 days due to matters beyond the control of the Administrative Office, or longer if you are asked to submit information necessary to process your application. The notice from the Administrative Office will include: The specific reason or reasons for the denial, Specific references to the Plan provisions on which the denial is based, A description of any additional material or information you need to submit to complete your claim and an explanation of why such material or information is necessary, A description of the Plan s appeals procedure and time limits, and A statement of the claimant s right to file a civil action. Exhaustion of Remedies. You must follow the Plan s review and appeal procedures before you bring any action in a court of law. Filing an Appeal of a Claim Determination If you are not satisfied with our determination of your claim, you have 60 days from the date you receive the notice of denial to file an appeal. Your appeal must be in writing and sent to the Administrative Office. You will be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim. You have the right to submit written comments, documents, records, and other information relating to the claim, which will be considered on appeal regardless of whether such information was submitted or considered in the initial claims review. Your appeal will receive full and fair review by the Appeals Committee, which is a committee of the Plan s Board of Trustees. You do not have the right to appear personally before the Board of Trustees unless they determine that your appearance would help them in the review of your appeal. Processing Your Appeal The Appeals Committee will make a decision no later than the date of its first meeting that is at least 30 days after the date it receives your appeal. If special circumstances require more time for the Board of Trustees to decide your appeal, a decision will be made no later than the third meeting following receipt of your appeal. If an extension is required, you will be notified in writing before the extension of the special circumstances requiring the extension of time and the date as of which the decision will be made. If the extension is due to your failure to submit the information necessary to decide the appeal, the decision on review will be made at the meeting that is at least 30 days after you respond. If you do not respond within 90 days, or longer in the discretion of the Administrative Office, you will be notified that you have an additional 60 days to respond, after which your appeal will be decided whether or not you respond. You will be notified by mail as soon as possible, but not more than 5 days, after the Appeals Committee makes its decision. If your appeal is denied, in whole or in part, you will be notified in writing of the following: The specific reason(s) for the denial of the claim on appeal. The specific Plan provision(s) on which the denial on appeal is based. A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim. A statement of your right to bring an action under ERISA Section 502(a). Failure To Follow Procedures If the Administrative Office fails to follow these claims and appeals procedures, and it does not correct the error without prejudice to you, you will be deemed to have exhausted the administrative remedies available under the Plan and will be entitled to pursue any available remedies under ERISA Section 502(a). 13

20 YOUR SOCIAL SECURITY BENEFITS You can request an estimate of your Social Security benefits by completing a Request for Earnings and Benefits Estimate Statement (Form SSA-7004). The form is available from the Social Security Administration by calling or (TTY ) or you may complete it on-line at There are a few facts about Social Security that are useful for you to know. As mentioned in the following paragraphs, Social Security benefits are one portion of your retirement income. The government has gradually increased the full retirement age for people born after Full retirement age is the age at which you can collect full retirement benefits from Social Security without any reduction for early retirement. For example, if you were born in 1960 or later, full Social Security benefits will be payable to you at age 67 not age 65. Social Security Full Retirement Age Year Of Birth Full Retirement Age 1937 Or Earlier months months months months months months months months months months Social Security pays a higher percentage of income for Participants retiring at lower pay levels. If you retire with annual earnings of $35,000, you can expect Social Security to pay approximately 33% of your pre-retirement income. To reach the 75% to 85% income replacement level, you will need help from your pension benefits and personal savings. Social Security benefits will not change your pension benefits. Your pension from this Plan is in addition to any benefits you or your spouse may receive from Social Security. For more information, contact the Social Security Administration at or on the Internet at YOUR PERSONAL SAVINGS Once you have estimated the amount of income that Social Security and your pension benefits will provide for you at retirement, you can begin planning how much personal savings you ll need in retirement. You may want to contact a financial advisor to help you create a financial plan. TYPES OF PENSION BENEFITS There are different types of retirement benefits available under the Plan: Normal Retirement Benefits, Early Retirement Benefits, Golden 85 Unreduced Early Retirement Benefits (available to Group 1 Members only), and Disability Retirement Benefits. This section summarizes the eligibility requirements and calculation of the various retirement benefits available under the Plan. For information about Disability Retirement Benefits, refer to the section Becoming Disabled on page 10. The other types of retirement benefits are described in this section. If you are eligible for more than one type of pension, you will receive the type that gives you the greatest benefit, but you will not receive both benefits Or Later 67 14

21 NORMAL RETIREMENT BENEFITS If you are a Group 1 Member, you are generally eligible for Normal Retirement Benefits when you reach age 60 (provided you have reached your fifth anniversary of participation in the Plan). If you are a Group 2 Member, you are generally eligible for Normal Retirement Benefits when you reach age 65 (provided you have five vesting credits or have reached your fifth anniversary of participation in the plan). If you delay applying for your Normal Retirement Benefits until after your Normal Retirement Age and do not elect retroactive benefit payments, your Normal Retirement Benefit will be actuarially adjusted to reflect your late retirement. This increase accounts for the shorter period of time you are expected to receive payments. Your Normal Retirement Benefit will not be actuarially adjusted for any period of time your benefits were suspended. There are two significant changes in the collective bargaining agreement signed in 2005 (or later)*: 1. The benefit levels were reduced by 35% after the 2005 agreement. The benefit levels before the 2005 agreement are not changed. 2. Employer contribution rates are increasing for three consecutive years to maintain the same benefit level after the 2005 agreement. * These rates apply to retirements on and after September 1, However, these rates do not apply to any Credited Service earned prior to a Separation in Service which occurred on or before December 31, For rates effective for retirements from September 2001 through August 2003, go to Appendix B. Amount The amount of your Normal Retirement Benefit is based on the Credited Service you have earned at the time of your retirement. A formula is applied to your Credited Service. The benefit level used in the formula is based on your Employer s Contribution Rate during your years of Credited Service. If you work beyond your Normal Retirement Age, there is no increase in your Normal Retirement Benefits, except the increase that results from the additional Credited Service that you earn. 15

22 Assuming the new agreement was effective March 1, 2005, the following charts provide the Normal Retirement Benefit for each Year of Credited Service for All Retail Clerks and Meat Department employees (where the Meat Department employee had Employer Contribution Rates of $1.55 per hour or more before March 1, 2005). Normal Retirement Benefit Formula for: All Retail Clerks; Meat Department Employees with Employer Contribution Rates of $1.55 per Hour or More FOR SERVICE PRIOR TO MARCH 1, 2005 Add these two amounts to determine your Monthly Normal Retirement Benefit Employer Hourly Contribution Rate This amount times each of your first 10 Years of Credited Service This amount times each of your Years of Credited Service over 10 Years 30-Year Monthly Benefit $0.18 $14.45 $19.20 $ , , , , , , , , , , , , , , & up ,

23 Normal Retirement Benefit Formula for: All Retail Clerks; Meat Department Employees with Employer Contribution Rates of $1.654 per Hour or More FOR SERVICE ON AND AFTER MARCH 1, 2005 AND BEFORE MARCH 1, 2006 Add these two amounts to determine your Monthly Normal Retirement Benefit Employer Hourly Contribution Rate This amount times each of your first 10 Years of Credited Service This amount times each of your Years of Credited Service over 10 Years 30-Year Monthly Benefit $0.198 $9.39 $12.48 $ , , , , , & up ,

24 Normal Retirement Benefit Formula for: All Retail Clerks; Meat Department Employees with Employer Contribution Rates of $1.768 per Hour or More FOR SERVICE ON AND AFTER MARCH 1, 2006 AND BEFORE MARCH 1, 2007 Add these two amounts to determine your Monthly Normal Retirement Benefit Employer Hourly Contribution Rate This amount times each of your first 10 Years of Credited Service This amount times each of your Years of Credited Service over 10 Years 30-Year Monthly Benefit $0.218 $9.39 $12.48 $ , , , , , & up ,

25 Normal Retirement Benefit Formula for: All Retail Clerks; Meat Department Employees with Employer Contribution Rates of $1.890 per Hour or More FOR SERVICE ON AND AFTER MARCH 1, 2007 AND BEFORE JANUARY 1, 2008 Add these two amounts to determine your Monthly Normal Retirement Benefit Employer Hourly Contribution Rate This amount times each of your first 10 Years of Credited Service This amount times each of your Years of Credited Service over 10 Years 30-Year Monthly Benefit $0.240 $9.39 $12.48 $ , , , , , & up ,

26 Normal Retirement Benefit Formula for: All Retail Clerks; Meat Department Employees with Employer Contribution Rates of $1.977 per Hour or More FOR SERVICE ON AND AFTER JANUARY 1, 2008 Add these two amounts to determine your Monthly Normal Retirement Benefit Employer Hourly Contribution Rate This amount times each of your first 10 Years of Credited Service This amount times each of your Years of Credited Service over 10 Years 30-Year Monthly Benefit $0.255 $9.39 $12.48 $ , , , , , , The table above does not apply to credited service earned under a contract that requires one contribution rate for both retail clerks and meat department employees (referred to as a blended rate contract). For a blended rate of $1.72 effective January 1, 2008 and later the benefit accruals are listed in the last row of the chart above at the rate of $1.66. For blended rate contracts of less than $1.72 please contact the Administrative Office for more information. For Example: Robert, a Retail Clerk, retires on March 1, 2006 at age 60 with 35 years of Credited Service. He accrued one year of Credited Service after March 1, 2005 and 34 years of Credited Service before March 1, The Hourly Contribution Rate paid by Robert s Employer was $1.17 prior to March 1, 2005 and $1.29 from March 1, 2005 through March 1, Robert s monthly benefit from the Plan is: $51.82 x 10 years of Credited Service $ Plus: $69.09 x 24 years of Credited Service 1, Plus: $44.90 x 1 year of Credited Service Equals: Total Monthly Normal Retirement Benefits Payable at Age 60 $2, Robert will receive $2, each month for the rest of his life. 20

27 Assuming the new agreement was effective March 1, 2005, the following charts provide the Normal Retirement Benefit for each Year of Credited Service based on various Employer Contribution Rates for Meat Department Employees whose Employer s Contribution Rate was below $1.55 per hour. This maximum $1.55 rate gradually increased to $1.89 through March 1, 2007, then potentially to $1.977 effective January 1, Normal Retirement Benefit Formula for Meat Department Employees with Employer Contribution Rates Below $1.55 Per Hour FOR SERVICE PRIOR TO MARCH 1, 2005 Add these two amounts to determine your Monthly Normal Retirement Benefit If Your Employer s Hourly Contribution Rate Was At Least Your Credited Future Service times this Amount Your Credited Past Service times by this Amount $0.26 $11.85 $

28 Normal Retirement Benefit Formula for Meat Department Employees with Employer Contribution Rates Below $1.654 Per Hour FOR SERVICE ON AND AFTER MARCH 1, 2005 AND BEFORE MARCH 1, 2006 Add these two amounts to determine your Monthly Normal Retirement Benefit If Your Employer s Hourly Contribution Rate Was At Least Your Credited Future Service times this Amount Your Credited Past Service times by this Amount $0.278 $7.70 $

29 Normal Retirement Benefit Formula for Meat Department Employees with Employer Contribution Rates Below $1.768 Per Hour FOR SERVICE ON AND AFTER MARCH 1, 2006 AND BEFORE MARCH 1, 2007 Add these two amounts to determine your Monthly Normal Retirement Benefit If Your Employer s Hourly Contribution Rate Was At Least Your Credited Future Service times this Amount Your Credited Past Service times by this Amount $0.297 $7.70 $

30 Normal Retirement Benefit Formula for Meat Department Employees with Employer Contribution Rates Below $1.890 Per Hour FOR SERVICE ON AND AFTER MARCH 1, 2007 AND BEFORE JANUARY 1, 2008 Add these two amounts to determine your Monthly Normal Retirement Benefit If Your Employer s Hourly Contribution Rate Was At Least Your Credited Future Service times this Amount Your Credited Past Service times by this Amount $0.317 $7.70 $

31 Normal Retirement Benefit Formula for Meat Department Employees with Employer Contribution Rates Below $1.977 Per Hour FOR SERVICE ON AND AFTER JANUARY 1, 2008* Add these two amounts to determine your Monthly Normal Retirement Benefit If Your Employer s Hourly Contribution Rate Was At Least Your Credited Future Service times this Amount Your Credited Past Service times by this Amount $0.332 $7.70 $ These rates apply to retirements on and after September 1, However, these rates do not apply to any Credited Service earned prior to a Separation in Service which occurred on or before December 31, For rates effective for retirements from September 2001 through August 2003, go to Appendix B. For Example: Jerry, a Meat Department employee, retires on March 1, 2006 at age 60 with 25 years of Credited Future Service and 5 years of Credited Past Service. His employer contributed $1.00 per hour prior to March 1, 2005 and $1.05 per hour after March 1, 2005 through March 1, 2006 for him. Jerry s monthly benefit from the Plan is: * The table above does not apply to credited service earned under a contract that requires one contribution rate for both retail clerks and meat department employees (referred to as a blended rate contract). Plus: Plus: $21.95 x 5 years of Credited Past Service $ $32.40 x 24 years of Credited Future Service $ $21.06 x 1 year of Credited Future Service $ Equals: Total Monthly Normal Retirement Benefits Payable at Age 60 $ Jerry will receive $ each month for the rest of his life. 25

32 Postponed Retirement You may continue to work under the Plan beyond your Normal Retirement Age. When you retire, your benefit will be calculated using the formula for Normal Retirement Benefits, counting all of your years of Credited Service up to your actual retirement date. The Plan requires that you begin receiving your retirement benefits no later than April 1 of the year following the year in which you reach age 70-½. If you continue working after April 1 of the year following the year in which you reach age 70-½, any subsequent improvements in the Normal Retirement Benefit formula or any other improvement will be applied to your benefit, effective as of the date of the improvement. EARLY RETIREMENT BENEFITS Group 1 Members and Group 2 Members have different Early Retirement Benefits. If you are a Group 1 Member and vested, you may retire and begin receiving Early Retirement Benefits if you: Are between ages 50 and 60, Have earned either: 10 Vesting Credits, or At least 8,000 Hours of Service (limited to 2,000 Hours of Service in any Plan Year) during a continuous 10-year period with at least 150 Hours of Service in each of those 10 Plan Years. If you are a Group 2 Member and vested, you may retire and begin receiving Early Retirement Benefits if you: Are between ages 55 and 65, Have earned 5 Vesting Credits. Amount Your Early Retirement Benefits are calculated using the formula for Normal Retirement Benefits, but your Normal Retirement Benefits are then reduced because you will likely be receiving your benefits for a longer period of time. If you are a Group 1 Member, your Normal Retirement Benefit will be reduced by 1/2% for each month between the ages of 55 and 60. The reduction for ages 50 to 55 is 1/3% per month. If you are a Group 2 Member, your Normal Retirement Benefit will be actuarially reduced as defined in the Plan. The applicable percentages used to calculate Early Retirement Benefits for whole ages are given in the following tables: IfYou Are a Group 1 Member Percentage of Normal Retirement Benefits at Early Retirement If your Age at Retirement is Your Normal Retirement Benefit will be multiplied by this Percentage 60 or above 100% 59 94% 58 88% 57 82% 56 76% 55 70% 54 66% 53 62% 52 58% 51 54% 50 50% IfYou Are a Group 2 Member Percentage of Normal Retirement Benefits at Early Retirement If your Age at Retirement is Your Normal Retirement Benefit will be multiplied by this Percentage 65 or above % % % % % % % % % % % 26

33 Example 1: Andrew, a Group 1 Member, retires at age 57 and six months. His monthly Normal Retirement Benefit is $1,100. Andrew is 30 months younger than age 60, so his benefit is reduced by 15% (30 months x.005).to calculate his monthly Early Retirement Benefit, Andrew multiplies his Normal Retirement Benefit by 85% (100% minus the 15% reduction for early retirement). Andrew s monthly Early Retirement Benefit is $935. Example 2: John, a Group 2 Member, retires at age 59. His monthly Normal Retirement Benefit is $900. To calculate his monthly Early Retirement Benefit, John multiplies his Normal Retirement Benefit by 53.80% (factor in the above Group 2 Member early retirement table). John s monthly Early Retirement Benefit is $ GOLDEN 85 UNREDUCED EARLY RETIREMENT BENEFITS If you are a Group 1 Member, you are eligible to receive Golden 85 Unreduced Early Retirement Benefits if: Your age plus your years of Credited Service (only 10 years of reciprocal plan credit can be used to qualify for this benefit) equal 85 or greater, You have not yet reached age 60, and You retire on or after October 1, You are not eligible for Golden 85 Unreduced Early Retirement Benefits if: You are a Meat Department employee and your Employer s Contribution Rate is less than $1.78 per hour before the 2005 (or later) agreement. After the 2005 (or later) agreement, this $1.78 gradually increases to $2.17 over three years, then to $2.27 effective January 1, 2008 (or potentially to a blended rate contract of $1.72) or You had a Separation in Service as of December 31, (If you were covered under the former California Butchers Pension Plan prior to January 1, 1998, whether or not you had a Separation in Service will be determined under the rules of the California Butchers Pension Plan then in effect.) Amount Your Golden 85 Unreduced Early Retirement Benefit is equal to your Normal Retirement Benefit. Your benefit is not reduced for early retirement. DISABILITY RETIREMENT BENEFITS See the section Becoming Disabled on page 10 for information about Disability Retirement Benefits. YOUR PENSION PAYMENT OPTIONS REGULAR FORM OF BENEFIT The Plan s regular form of benefit payment is a monthly benefit payable for the lifetime of the participant. Surviving Spouse Protection The Plan provides automatic survivor protection for your Surviving Spouse whether or not you have retired at the time of your death. When you die, payments equal to 50% of the Normal Retirement Benefit you earned will automatically continue to your Surviving Spouse (referred to as the 50% Surviving Spouse s Benefit ). If your spouse is more than five years younger than you, the 50% factor will be adjusted by ½% for each year or portion of a year that your spouse s age is more than five years younger than your age. Married. You are considered married if you have been married, as defined by federal law, throughout the twelve months immediately preceding your death. If you have not yet retired at the time of your death, your spouse must file an application for the Surviving Spouse s Benefit with the Administrative Office before payments may begin. (Refer to page 30 for more information about the Surviving Spouse s Benefit.) The Golden 85 Unreduced Early Retirement Benefit is not available to Group 2 Members. 27

34 For Example: Robert, from the prior example on page 20, is married to Nancy at retirement and had been married to her for 20 years. Nancy is three years younger than Robert. Robert s Normal Retirement Benefit amount is $2, At Robert s death, Nancy will receive $1, per month for the rest of her life. Nancy s benefit is calculated by multiplying Robert s monthly Normal Retirement Benefit ($2,221.26) by 50%. If Nancy was six years younger than Robert, her monthly benefit would be $1, ($2, x 49.50% (50% minus.5%)). If you are divorced, your former spouse may be treated as your Surviving Spouse under certain circumstances. If your former spouse receives the entire Surviving Spouse s Benefit, no benefit will be paid to any subsequent spouse, even if you are married at the time of your death. 75% JOINT AND SURVIVOR ANNUITY OPTION If you retire on or after January 1, 2009 and are married when you retire, you may elect the 75% Joint and Survivor Annuity Option provided that you and your spouse complete the Plan forms to reject the Normal Retirement Benefit. The 75% Joint and Survivor Annuity is an annuity that is payable for your life, with a survivor annuity for the life of your Surviving Spouse (if you predecease your spouse) which is equal to 75% of the annuity which was payable during your joint lives. The amount that is payable during your life is the amount of the Normal Form of Benefit actuarially reduced to take into account the Surviving Spouse s Benefit and the differences in ages between you and your spouse. You may contact the Administrative Office for more information regarding the actuarial assumptions and reduction factors used in calculating the 75% Joint and Survivor Annuity Benefit. INCOME ADJUSTMENT OPTION You may select the Income Adjustment Option if you: Retire after you reach age 55, but before age 62 (the earliest age you are eligible for Social Security Benefits), and are receiving Normal Retirement or Early Retirement benefits. Or You retire from active service before age 60 and are receiving a Golden 85 Unreduced Early Benefit. This option allows you to receive a level monthly income for your lifetime by providing a larger payment from the Plan before age 62 and a smaller payment after age 62. The smaller payment from the Plan after age 62 combined with your estimated age 62 Social Security benefit is designed to give you the same monthly income as your retirement benefit payment from the Plan before age 62. The adjustments that are made to the amount of your pension payments before and after age 62 are determined on the basis of your normal life expectancy. On average, the total value of the payments received will be the same, regardless of which option you elect. You do not have to make any decision regarding the election of the Income Adjustment Option until you are actually ready to retire. At that time, the Administrative Office will provide you with the exact amounts you would receive from the Plan both before and after age 62 if you elect this option. The Income Adjustment Option is not available for Disability Retirements. If you elect an Income Adjustment Option, you will not be allowed to convert to a Disability Retirement Benefit. If you elect this 75% Joint and Survivor Annuity Option, your spouse will not be eligible for the 50% Surviving Spouse s Benefit described above. In addition, should the spouse you are married to at the time of your retirement die before you, you will continue to receive the same amount you were receiving prior to your spouse s death for the remainder of your life, and any subsequent spouse will not be entitled to any survivor benefit from this Plan. 28

35 For Example: Toni (a Group 1 Member) retires at age 55 with 25.5 years of Credited Service at the time of her retirement. She elects the Income Adjustment Option.Toni s retirement benefit payments from the Plan are calculated as follows: Multiply by: Equals: Toni s Normal Retirement Benefit $1, Early Retirement Reduction Percentage x 70% Toni s Early Retirement Benefit at age 55 $1, Toni s estimated benefit from Social Security at age 62 is $600. Instead of receiving $1, per month for life, iftoni elects the Income Adjustment Option, she will receive $1, per month until she reaches age 62. At age 62,Toni s Early Retirement Benefit from the Plan will be reduced to $ per month, payable for the rest of her life.toni will also begin receiving her Social Security benefit of $600 per month, which, when added totoni s Early Retirement Benefit, providestoni with a combined monthly income of $1, Even iftoni s Social Security benefits are increased, she will continue to receive $ per month from the Plan. PENSION PAYMENT VERIFICATION After you retire, the Administrative Office requires that you complete a Pension Payment Verification form once a year. The Administrative Office will send you this form as a way of ensuring that you are receiving your pension and as a means of providing other information to the Trust Fund. You must sign your Pension Payment Verification form in front of a Notary, Union Official, plan representative, or have your signature guaranteed by your bank (under the Medallion Signature Guarantee Program) and return the form to the Administrative Office as soon as possible. Otherwise, your pension checks will be withheld until the form is returned. TAX WITHHOLDING In conformance with federal and state regulations, when you retire you will be asked to elect the amount of income taxes you wish to have withheld from your monthly pension payment. You may elect to have no taxes withheld. In making your decision about whether or not to have taxes withheld from your pension check, you should be aware that if your total income is high enough to require you to pay income taxes, and if sufficient taxes are not withheld from your pension payments, you may be responsible for payment of estimated tax and you could incur tax penalties. You may change your tax withholding election by notifying the Administrative Office in writing. Federal and state election forms are also available at the Administrative Office. To make a change, you should file your request at least one month in advance of when you want the change to be effective. Each year, you will receive Form 1099-R from the Administrative Office indicating the amount of pension income you received for the year and the amount of taxes withheld. RETURNING TO WORK BEFORE YOUR PENSION PAYMENTS BEGIN How your pension benefit is affected if you leave Covered Service and subsequently return depends on whether or not you are vested when you leave Covered Service and how long you are absent from Covered Service. If you are not vested before leaving Covered Service, refer to Leaving Work on page 6, which explains the Break in Service rules. The way your pension benefit is calculated may be different depending on when you incur a Break in Service and the Plan provisions in effect when you incur that Break in Service. 29

36 SUSPENSION OF BENEFITS AFTER YOUR PENSION PAYMENTS BEGIN Once you retire, the Pension Plan places restrictions on the number of hours you can work in the same industry and in the same trade or craft in the same geographic area covered by the Plan while continuing to collect retirement benefits. Such work is defined as Suspendible Service, if you work more than 63 hours per calendar month. You may work as vacation relief up to 756 hours in a calendar year, provided you notify the Administrative Office in writing in advance of the date you begin such employment. Once a year you will be required to disclose all postretirement employment. Your pension payments may cease until your response has been received by the Administrative Office. For additional information about restrictions on your employment after retirement, please contact the Administrative Office. If you work in Suspendible Service your pension payment will be suspended for each month you work in excess of 63 hours per month. Your benefit will resume when you are no longer employed more than 63 hours per month. Once you reach age 70, your retirement benefits will not be suspended, no matter how many hours you work. If your benefits are suspended before you reach age 70, they will no longer be suspended beginning the first day of the month after the month in which you reach age 70. Employment while Disabled If you are receiving Disability Retirement Benefits and you return to work, your Disability Retirement Benefit payments may end if you are no longer considered disabled by the Social Security Administration. IN THE EVENT OF DEATH IF YOU DIE Surviving Spouse s Benefit If you are a vested participant and are married when you die, your Surviving Spouse may be eligible to receive a Surviving Spouse s Benefit. To qualify for the Surviving Spouse s Benefit, you and your spouse must have been married, as defined by federal law, throughout the 12 months immediately preceding the date of your death. However, if you were previously married, your ex-spouse may be entitled to all or a portion of the Surviving Spouse s Benefit, if a QDRO on file with the Fund so provides. If your ex-spouse is receiving the entire Surviving Spouse s Benefit, no benefit payments will be made to any subsequent spouse. Contact the Administrative Office. In the event of your death, your spouse or dependent children should notify the Administrative Office as soon as possible. The Administrative Office staff will guide your spouse or dependent children through the application process. RESUMING PENSION PAYMENTS When your benefit resumes after a suspension of benefits, your original benefit may be increased to take into account any additional Credited Service you may have earned during the suspension of benefits. If your suspension of benefits was lifted because you reached age 70 and you earn additional credit after that, additional benefits may be added to any prior benefits you had already earned. Payments will start with the first monthly payment in the Plan Year after you accrue the benefits. You should contact the Administrative Office for information on how additional benefits are calculated. If you are married when you retire and later divorce, the spouse you were married to at retirement is entitled to the Surviving Spouse s Benefit (if you were married throughout the twelve months preceding your death), unless a prior QDRO awards all or a portion of the Surviving Spouse s Benefit to an ex-spouse. If you had separated from service and died before reaching age 50 for Group 1 Members, or age 55 for Group 2 Members, the Surviving Spouse s Benefit will not begin until you would have reached early retirement age. If you had reached your early retirement age, but had not retired at the time of your death, the eligible Surviving Spouse or ex-spouse s Benefit begins on the 30

37 first day of the month following your date of death, provided your eligible Surviving Spouse or ex-spouse applies for the benefit, and will continue for their lifetime. In either instance, if your Surviving Spouse does not apply for the Surviving Spouse s Benefit within 6 months after the date on which he or she was first eligible to receive the benefit, the benefit will begin on the first day of the month following the month in which the application for the benefit is received by the Administrative Office. If the commencement of the Surviving Spouse s Benefit is delayed past this 6-month window and it is past the date on which you would have reached Normal Retirement Age, the amount of the Surviving Spouse s Benefit will be actuarially adjusted to take into account the delay in payment. Amount of Surviving Spouse s Benefit If you have not yet retired at the time of your death, your spouse will receive a monthly benefit equal to 50% of the monthly Normal Retirement Benefit you had accrued as of the date of your death. If you have retired at the time of your death, and you are receiving: A Normal, Golden 85 or Disability Retirement Benefit, your spouse will receive a monthly benefit equal to 50% of the monthly benefit amount paid to you in the month preceding your death, An Early Retirement Benefit, your eligible Surviving Spouse or ex-spouse will receive a monthly benefit equal to 50% of the Normal Retirement Benefit you had accrued at the date of your death, or A 75% Joint and Survivor Annuity, your eligible Surviving Spouse or ex-spouse will receive a monthly benefit equal to 75% of the monthly benefit amount paid to you in the month preceding your death. In calculating the Surviving Spouse s Benefit, the 50% factor will be reduced by ½% for each year or portion of a year your spouse s age is greater than five years younger than your age. If you chose the Income Adjustment Option, the Surviving Spouse s Benefit will be determined on the basis of the Normal Retirement Benefit you had accrued at the date of your death. (See the example on page 28 for an illustration of the Surviving Spouse s Benefit.) Non-Spouse Survivor Benefit A monthly Non-Spouse Survivor Benefit will be paid to your surviving dependent children under the age of 18 if, at the time of your death: You were vested, You had not separated from service as of the end of the Plan Year before the year of your retirement or date of death, and No Surviving Spouse, eligible ex-spouse or alternate payee is eligible to receive the entire Surviving Spouse s Benefit. Benefits begin on the first day of the month following the date of your death. The benefit will be paid in equal shares to all eligible dependent children who are under age 18. Benefits will be adjusted if one eligible dependent child reaches age 18 and there are other eligible dependent children under age 18 so that the total benefits paid remain the same. Benefits end with the payment due for the month in which the youngest dependent child reaches age 18. Amount of Non-Spouse Survivor Benefit The Non-Spouse Survivor Benefit is equal to the amount of a Surviving Spouse s Benefit, without any reduction for the difference in age between you and your surviving dependent children, or any adjustment for age difference between you and your spouse. SOCIAL SECURITY DEATH BENEFITS Your family may also be entitled to Social Security benefits after your death. If you die leaving dependent children, family benefits may be payable until your children reach age 18. After your children reach age 18, your spouse may be entitled to start receiving Social Security benefits again when he or she reaches age 60. Contact the Social Security Administration for more information. IF YOUR SPOUSE DIES If your spouse dies you should contact the Administrative Office to update your records. 31

38 ADMINISTRATIVE INFORMATION GENERAL INFORMATION ABOUT THE PLAN Plan Name The name of the Plan is the UFCW-Northern California Employers Joint Pension Plan. Plan Administrator The Plan is administered by a Joint Board of Trustees (representing participating Employers and Union Locals) with the assistance of the UFCW-Employers Benefit Plans of Northern California Group Administration LLC which is responsible for the day-to-day operation of the Plan. The Board of Trustees also employs consultants, actuaries, attorneys, accountants and other necessary personnel for advice and assistance. Agent for Service of Legal Process The Plan Administrator is the agent for service for legal process. If legal disputes involving the Plan arise, any legal documents should be served upon the Chief Executive Officer or upon any individual Trustee at the address of the Administrative Office: UFCW-Employers Benefit Plans of Northern California Group Administration LLC Treat Towers 1277 Treat Boulevard, 10th Floor Walnut Creek, California The Board has broad discretion to determine eligibility for benefits and to interpret the language of the Plan. The Board s decisions should receive judicial deference to the extent that they do not constitute an abuse of discretion. If you wish to contact the Plan Administrator, use the address and phone number below: UFCW-Employers Benefit Plans of Northern California Group Administration LLC P.O. Box 8085 Walnut Creek, California Telephone:

39 PLAN TRUSTEES UNION TRUSTEES Joseph Ambrosi UFCW 8-Golden State 2200 Professional Drive Roseville, CA David Blitzstein UFCW International Union, CLC 1775 K Street, NW Washington, DC Michael A. Borstel UFCW Union Local 101 P. O. Box 747 San Francisco, CA Timothy S. Hamann UFCW Local Alhambra Avenue Martinez, CA Ronald Lind UFCW Union Local South Market Street San Jose, CA EMPLOYER TRUSTEES Brent Bohn Albertson s, Inc S. Manhattan Avenue Fullerton, CA David Cuesta Raley s Supermarkets P. O. Box Sacramento, CA James Morgan Safeway, Inc Stoneridge Mall Road Pleasanton, CA Rick Silva Save Mart Supermarkets 1800 Standiford Avenue Modesto, CA W. Robert Vallon Food Employers Council, Inc. 18 Crow Canyon Ct., Suite 240 San Ramon, CA Patrick K. Loo UFCW Union Local South Beretania Street Honolulu, Hawaii Jacques S. Loveall UFCW 8-Golden State 2200 Professional Drive Roseville, CA Michael Sharpe UFCW Union Local Mission Street South San Francisco, CA Kirk L. Vogt UFCW 8-Golden State 3485 W. Shaw Avenue, Suite 101 Fresno, CA

40 Plan Funding The benefits described in this booklet are provided through Employer contributions to the Fund. Contributions are determined under the provisions of the collective bargaining agreements negotiated by your Union with your Employer. You are not required or permitted to make contributions to the Fund. If you make a written request, the Administrative Office will provide you with information as to whether a particular Employer is contributing to the Fund on behalf of employees working under the Collective Bargaining Agreement and the address of any such Employer. Trust Fund All assets are held in trust by the Trustees for the purpose of providing benefits to eligible employees and their dependents and to defray the costs of administration. Plan Documents This booklet summarizes the official Plan Documents. This edition of your Summary Plan Description replaces any prior Summary Plan Description and other summaries of the provisions of the Plan, but does not replace the official Plan Documents. This summary is intended to be written in clear, understandable and informal language. However, you should refer to the official Plan Documents for more extensive information about your benefit plan. If there is a conflict between the information summarized in this booklet and the official Plan Documents, the Plan Documents will govern. Other important Plan Documents are the Agreement and Declaration of Trust and the Collective Bargaining Agreement. You may request copies of these documents from the Administrative Office. The Administrative Office may charge a reasonable fee for providing you a copy of these documents. Type of Plan and Benefits The Plan is a defined benefit pension plan that provides retirement benefits to eligible Participants. Your coverage by the Plan does not constitute a guarantee of your continued employment. Plan Year The records of the Plan are kept separately for each Plan Year. The Plan Year is the calendar year (January 1 through December 31). Identification Number and Plan Number The following identification numbers have been assigned to the Pension Plan and its fiduciaries: Employer Identification Number: Plan Number: 001 Assignment of Your Benefits is Not Allowed This Plan is intended to pay benefits only to you or your eligible survivors. Your benefits cannot be used as collateral for loans or assigned in any other way, except in connection with Qualified Domestic Relations Orders issued by a court of law (See Page 9). A Qualified Domestic Relations Order requires payment of alimony, child support or other marital assets, which could include all or a portion of your benefit from this Plan, to a spouse, former spouse, child or other dependent. You will be notified if such an order is received with respect to your benefits. IF THE PLAN IS ENDED OR MODIFIED The Board of Trustees reserves the right to terminate, modify, suspend or amend the Plan at any time, in whole or in part, under circumstances allowed by ERISA and the terms of the governing Trust Agreement. The Board will make such changes to the Plan by a Plan Amendment adopted by a majority vote at a meeting of the Board of Trustees. You will be notified in writing within the timeframe required by law of any changes that are made to the Plan. Benefits at Plan termination. The Trustees have the right to end this Plan. If there are not enough funds to pay benefits when the Plan ends, the PBGC provides insurance to help pay for most benefits. 34

41 If the Plan terminates or ends, the money in the Trust Fund, to the extent possible, will be used to provide the benefits that are due according to the priority required by law and stated in the Plan Document. Generally, the funds would first be used to provide the benefits of retired Participants and Participants with longer service, and then would be used to provide the benefits of Participants with shorter service. Benefits may be paid as soon as the Plan termination has been approved by government agencies, or payment may be deferred to a later time. The Board of Trustees will determine when benefits are to be paid and will obtain government approval, if necessary. CIRCUMSTANCES WHICH MAY RESULT IN THE LOSS OF YOUR BENEFITS Under certain conditions, you could lose benefits under the Plan. For example: If you leave employment covered by the Plan prior to becoming vested, you may lose the credits you have earned. Contact the Administrative Office to determine whether or not you are vested in your Retirement Benefits. Pension payments for Normal and Early Retirements will not begin until you file a Retirement Application. Therefore, you should file your application in advance of the date you wish to begin receiving pension payments. For rules on Disability Retirements, please refer to page 10, Disability Retirement Benefits, for details. Whenever you are informed of your accumulated credits, be sure to contact the Administrative Office if you think there is any error. Contact the Administrative Office whenever you have to make any decision that might affect your rights under the Plan, so that you will have all the information you need. THE PBGC GUARANTEES PENSION BENEFITS Your pension benefits under this multiemployer plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. A multiemployer plan is a collectively bargained pension arrangement involving two or more unrelated employers, usually in a common industry. Under the multiemployer plan program, the PBGC provides financial assistance through loans to plans that are insolvent. A multiemployer plan is considered insolvent if the plan is unable to pay benefits (at least equal to the PBGC s guaranteed benefit limit) when due. The maximum benefit that the PBGC guarantees is set by law. Under the multiemployer program, the PBGC guarantee equals a Participant s years of service multiplied by (1) 100% of the first $11 of the monthly benefit accrual rate and (2) 75% of the next $33. The PBGC s maximum guarantee limit is $35.75 per month times a Participant s years of service. For example, the maximum annual guarantee for a retiree with 30 years of service would be $12,870. The PBGC guarantee generally covers: Normal and early retirement benefits, Disability benefits if you become disabled before the Plan becomes insolvent, and Certain benefits for your survivors. The PBGC guarantee generally does not cover: Benefits greater than the maximum guaranteed amount set by law, Benefit increases and new benefits based on Plan provisions that have been in place for fewer than five years at the earlier of: The date the Plan terminates, or The time the Plan becomes insolvent, Benefits that are not vested because you have not worked long enough, Benefits for which you have not met all of the requirements at the time the Plan becomes insolvent, and Non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay and severance pay. 35

42 For more information about the PBGC and the benefits it guarantees, ask the Plan Administrator or contact: The PBGC s Technical Assistance Division 1200 K Street N.W., Suite 930 Washington, D.C You may also call the PBGC at (not a toll-free number). TTY/TDD users may call the federal relay service toll-free at and ask to be connected to Additional information about the PBGC s pension insurance program is available through the PBGC s website on the Internet at YOUR RIGHTS ARE PROTECTED BY ERISA As a Participant in the UFCW-Northern California Employers Joint Pension Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan Participants are entitled to the following rights. Receive Information about Your Plan and Benefits You have the right to: Examine, without charge, at the Plan Administrator s office and at other specified locations, such as worksites and union halls, all documents governing the Plan. These documents include insurance contracts, Collective Bargaining Agreements, the updated Summary Plan Description and copies of the latest Summary Annual Report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefit Security Administration. Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan. These documents include insurance contracts and Collective Bargaining Agreements and copies of the latest annual report (Form 5500 Series) and updated Summary Plan Description. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan s annual financial report. The Plan Administrator is required by law to furnish each Participant with a copy of this Summary Annual Report. Obtain a statement telling you whether you have a right to receive a pension at Normal Retirement Age (generally age 60) and if so, what your benefits would be at Normal Retirement Age if you stop working under the Plan now. If you do not have a right to a pension, the statement will tell you how many more years you have to work to acquire a right to a pension. This statement must be requested in writing and is not required to be given more than once every 12 months. The Plan must provide the statement free of charge. Prudent Actions by Plan Fiduciaries In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan. The people who operate your Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan Participants and beneficiaries. No one, including your Employer, your Union Local, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your rights under ERISA. Enforce Your Rights If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of the Plan Documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in federal court. If it should happen that Plan fiduciaries misuse the Plan s money, or if you are discriminated against for asserting your rights, you may seek 36

43 assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. Assistance With Your Questions If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefit Security Administration (EBSA), U.S. Department of Labor, listed in your telephone directory or: The Division of Technical Assistance and Inquiries Employee Benefit Security Administration U.S. Department of Labor 200 Constitution Avenue N.W. Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefit Security Administration. For single copies of publications, contact the Employee Benefit Security Administration Brochure Request Line at or contact the EBSA field office nearest you. You may also find answers to your Plan questions at the website of the EBSA at 37

44 APPENDIX A PARTICIPATING UFCW NORTHERN CALIFORNIA UNION LOCALS The following is a list of Union Locals that participate in this Plan. Name of Union Local Address Telephone UFCW Local South Market Street, San Jose, California UFCW 8 Golden State 2200 Professional Drive, Roseville, California UFCW Union Local Miller Avenue, South San Francisco, California UFCW Union Local South Beretania Street, #103, Honolulu, Hawaii UFCW Union Local Mission Street, San Francisco, California

45 APPENDIX B HISTORICAL BENEFIT FORMULA AMOUNTS If you retired on or after September 1, 2001 and prior to September 1, 2003, your monthly Normal Retirement (age 60) benefit formula amount was calculated as shown in the tables below: Retail Clerks (regardless of contribution rate) and Meat Department Employees with contribution rates of $1.55 or more Effective September 1, 2001 Employer Hourly 1st 10 Years Benefit After first 10 Years Contribution Rate Credit Benefit Credit 30 Year Benefit $0.18 $13.69 $18.19 $ , , , , , , , , , , , , , & up , NOTE: The improved pension benefit formula does not apply to any Benefit Credits earned prior to a Separation-in-Service which occurred on or before December 31, Effective September 1, 2003, your pension was increased in accordance with the Normal Retirement benefit formula shown in the chart on page

46 Meat Department Employees whose Employer Hourly Contribution Rate is less than $1.55 per hour Effective September 1, 2001 Hourly Contribution Rate of at Least Future Service Benefit Credits Past Service Benefit Credits $0.26 $11.23 $ NOTE: The improved pension benefit formula does not apply to any Benefit Credits earned prior to a Separation-in-Service which occurred on or before December 31, Effective September 1, 2003, your pension was increased in accordance with the Normal Retirement benefit formula shown in the chart on page

47 NOTES:

48 NOTES:

49 NOTES:

50 NOTES:

51

52 These are just some of the many contributing employers who participate in the UFCW - Northern California Employers Joint Pension Plan January 2010

53 1277 Treat Boulevard, 10th Floor Walnut Creek, CA Mail: P.O. Box 8085 Walnut Creek, CA Telephone: (800) Facsimile: (925) December 2011 Summary Plan Description Dear Participant, The Board of Trustees is pleased to provide you with this Summary Plan Description (SPD). As a Participant in the UFCW - Northern California Employers Joint Pension Trust Fund (the Trust Fund ), you may become eligible for pension benefits. The enclosed Summary Plan Description provides you with a description of the benefits provided to Participants and Beneficiaries. This SPD incorporates changes that have been made since the last SPD was printed. It replaces any other SPDs you may have previously received. As material changes are made to your benefits, a Summary of Material Modification will be sent to you. Keep these notices with your SPD so that you have the most current information available when you look up information or research a benefits issue. Please be sure to notify the Trust Fund office if your address changes so that you will receive all notices about your benefits. The nature and amount of benefits are always subject to the actual terms of the SPD (which shall include any Summary of Material Modification). Benefits are also subject to the terms and conditions of the Trust Agreement, and any rules and regulations which may be adopted by the Trustees from time to time. Please take time to review this book carefully, and keep it in a safe place. It includes what you need to know to access your pension benefits, including eligibility and types of benefits available. The Board of Trustees H:\SPDs\Joint Pension\SPD Enclosures\Jt. Pension SPD Cover letter Rev 12_11.doc

54 Mail: P.O. Box 8085 Walnut Creek, CA Telephone: (800) Facsimile: (925) ATTENTION JOINT (FOOD) PLAN AND FORMER BUTCHER PLAN APPLICANTS IMPORTANT INFORMATION REGARDING YOUR BENEFITS UPDATES TO THE SUMMARY PLAN DESCRIPTION DECEMBER 1, Effective May 1, 2010, the Social Security Adjustment Option (also known as the Income Adjustment Option) and the Butcher Plan Level Income Option are no longer available. As explained in our Notice of Critical Status document, which was mailed to you on April 30, 2010, these options can no longer be legally offered. The discontinuance of these options was required by law specifically the Pension Protection Act of Effective January 1, 2012, certain benefit changes (including the elimination of new Disability Pensions) were made to the Pension Plan as a result of the Fund s critical status and subsequent adoption, as required by law, of a Rehabilitation Plan. These benefit changes are explained in the enclosed document titled IMPORTANT NOTICE OF CHANGES IN YOUR BENEFITS, dated October 2011, that was previously sent to you by the Fund. If you are a former Participant of the California Butchers Pension Trust Fund (pre-merger Butcher Plan) who incurred a Separation from Covered Employment (3 consecutive Plan years with less than 560 hours of Covered Employment in each year) prior to that Fund s merger into the Joint Plan on January 1, 1998, your service prior to the date of your Separation is governed by the terms of the pre-merger Butcher Plan (subject to the October 2011 IMPORTANT NOTICE OF CHANGES IN YOUR BENEFITS document), and therefore your related benefits may be different than described in the Notice. Please refer to the enclosed document titled IMPORTANT INFORMATION FOR FORMER BUTCHER PLAN PARTICIPANTS for more information. If you are a former Participant of the Retail Clerks Unions Employers Benefit Plans of Northern California (pre-1976 Food Plan) who incurred a Separation in Service (2 consecutive Plan years with less than 300 total hours) prior to 1976, while covered by a Collective Bargaining Agreement providing for normal retirement at age 65, your service prior to the date of your Separation is governed by the terms of that Plan (subject to the October 2011 IMPORTANT NOTICE OF CHANGES IN YOUR BENEFITS document), and therefore your related benefits may be different than described in the Notice. Please refer to the enclosed document titled IMPORTANT INFORMATION FOR OLD FOOD PLAN (PRE-1976) PARTICIPANTS for more information. H:\SPDs\Joint Pension\SPD Enclosures\Updates to the Summary Plan Description.doc

55 1277 Treat Boulevard, 10 th Floor Walnut Creek, CA Mail: P.O. Box 8085 Walnut Creek, CA Telephone: (925) (800) Facsimile: (925) TO: FROM: Participants and Beneficiaries Board of Trustees As we have communicated in the past, the ongoing impact of the worldwide economic crisis has required virtually all defined benefit pension plans to take measures to improve their funding status. This is because a large part of the income used to pay pension benefits is the interest (or income) generated by investing Pension Fund assets. While the investment returns for our Plan have been better than anticipated over the last two years, we have not yet been able to overcome the effects of the significant losses in Enclosed with this letter you will find a Notice that outlines the benefit modifications under the Preferred Schedule adopted as part of the required rehabilitation plan that has been adopted to return the plan to an appropriate funding status. As you will see in the Notice, these modifications take effect January 1, In addition to these benefit modifications your employer has agreed to substantial increases in the current hourly contribution rate paid into the plan. We realize that this notice is lengthy but it contains very important information and we encourage you to read it thoroughly. However, we believe that it is important to highlight a number of important Pension Fund features that HAVE NOT changed under the Preferred Schedule of benefits. Generally, they are: For those who qualify, NO CHANGE to the Golden 85 Unreduced Early Retirement Benefit (except for participants who incur a Separation in Service prior to becoming eligible for Early or Normal Retirement Benefits) NO CHANGE in the ability to collect an UNREDUCED benefit payable for your lifetime at Normal Retirement Age NO CHANGE in the age at which you can begin collecting an Early Retirement Pension Benefit NO REDUCTION to the dollar amount of the pension benefit accruals that you have already earned. Again, please read the Notice for details regarding the specific benefit changes and rules that will apply to you. We understand that receiving a notice such as this can be alarming. However, rest assured that your Pension Plan has more than $3 billion in assets and continues to pay all its current pension benefits. These modest changes will assist in helping the Fund meet its obligations both now and in the future. If you have any questions please contact the Fund office at the phone number listed on the notice. H:\Notices to Participants\2011 Notices\PPA Cover Letter - Final 9_11.doc

56 October Treat Boulevard, 10 th Floor Walnut Creek, CA Mail: P.O. Box 8085 Walnut Creek, CA Telephone: (925) (800) Facsimile: (925) Important Notice of Changes in Your Benefits TO: Active Participants in the UFCW-Northern California Employers Joint Pension Plan (The Plan ) United Food and Commercial Workers Union Locals 5, 8, 480 and 648 Contributing Employers RE: Rehabilitation Plan Preferred Schedule Changes resulting from Pension Protection Act (PPA) Critical Status. You were previously notified that the Plan was certified as being in critical status beginning January 1, 2010 and that certain adjustable benefits could be reduced or eliminated as part of a Rehabilitation Plan required by law to be adopted by the Board of Trustees. This notice is being provided under ERISA Section 305(e)(8)(C) and Internal Revenue Code Section 432(e)(8)(C) to notify you of benefit changes made to the Pension Plan under the Rehabilitation Plan s Preferred Schedule. Except for the changes outlined in this notice (or in future notices) or otherwise referenced below, all other Plan provisions and rules remain the same. Please refer to your Summary Plan Description ( SPD ) and/or Plan Document for detailed information on the rules regarding eligibility, participation in the Plan and its claims and appeals procedures. This notice is intended for active Participants who retire on or after January 1, 2012, and provides information about benefit changes pursuant to the Preferred Schedule. Even if your Employer has not yet adopted the Preferred Schedule, the Preferred Schedule and the benefit changes described in this notice apply to you unless your Employer is subject to the Default Schedule as of January 1, If your employer becomes subject to the Default Schedule, we will send you additional information that will explain how your benefits could be impacted. If your Employer is first subject to the Default Schedule beginning on January 1, 2012 and later becomes subject to the Preferred Schedule before you retire, you will be covered by the Preferred Schedule and the benefit changes in this notice will apply to you. Also, if you become an Inactive Vested Participant (as defined in the Important Reminders section at the end of this notice) before you retire, you may be subject to additional benefit changes. If you are currently an Inactive Vested Participant, you will receive a separate notice. Finally, if you retire prior to January 1, 2012, you will generally not be subject to the benefit changes outlined in this notice, or any other benefit changes, except as referenced below and further explained in a separate notice that will be sent to all retirees who may be affected by these changes. Active Participants fall into one of two categories based on date of hire. The participation groups are as follows: Group 1 Members: If you were hired before ratification of the contract changes made in 2005 Group 2 Members: If you were hired on or after ratification of the contract changes made in 2005 H:\Notices to Participants\2011 Notices\Rehab Plan Notice 9_22_11.doc

57 Throughout this notice we reference the two participation Groups and indicate where differences, if any, apply. Please note that if you temporarily left Covered Service for a period of 6 consecutive months or more at any time after 2004, your benefits may be governed by a combination of the Group 1 and Group 2 rules explained in the SPD. Unless otherwise noted, these changes take effect January 1, Please note that in addition to the benefit changes described in this notice, the Employers are obligated to pay supplemental contributions on all hours worked on or after January 1, These supplemental contributions are in addition to any Employer surcharges imposed under the PPA. Please keep this notice with your SPD, which is the booklet that describes the rules of the Plan in summary form. WHAT KEY BENEFITS HAVE NOT CHANGED? Unreduced Benefits Payable as Normal Retirement Benefits Group 1 Members payable at age 60 with 5 years of service Group 2 Members payable at age 65 with 5 years of service Golden 85 Unreduced Early Retirement Benefits (also known as Rule of 85) Except as noted below, the Golden 85 Benefit is not changing for Participants who are eligible for it under the current Plan rules. Generally, if you are a Group 1 member and your age and years of credited service are equal to or greater than 85, you can retire at any age and receive a benefit on your qualifying accruals that are equal to your full Normal Retirement Benefit, subject to the current rules of the Plan. Please note that all of the rules of the Plan regarding eligibility for the Golden 85 remain in effect. Note: You will no longer be eligible for Golden 85 Benefits if you are an Inactive Vested Participant (i.e., you leave Covered Employment and incur a Separation in Service before you are eligible for immediate payment of either an Early or Normal benefit). A Separation in Service occurs at the end of a calendar year in which you fail to work 150 Hours in Covered Service. See the Important Reminders section at the end of this notice. Eligibility for Early Retirement Early retiree benefits continue to be available as early as age 50 for Group 1 members provided you have 10 years of Vesting Credit or at least 8,000 Hours of Service in 10 years of elapsed time. Early retiree benefits continue to be available as early as age 55 for Group 2 members provided you have 5 years of Vesting Credit. WHEN ARE THE BENEFIT CHANGES EFFECTIVE? The benefit changes become effective January 1, Please Note: If you have received a Pension Benefit Estimate from the Fund Office with an effective date of January 1, 2012 or later, the information in the Estimate may no longer be accurate. Please contact the Fund Office at (800)

58 WHO IS AFFECTED BY THE BENEFIT CHANGES? Except in limited circumstances, only Participants who retire on or after January 1, 2012 will be affected by the benefit changes outlined in this notice. If you retire prior to January 1, 2012, you will receive a separate notice explaining how your benefit may be impacted. This means that the changes described in this notice will apply to you unless: you submit your application for retirement benefits to the Fund on or before November 30, 2011 and retire no later than December 1, 2011 (subject to the provisions outlined in the Important Note for Recent Retirees paragraph below); you are subject to the Default Schedule when you retire; or you are an Inactive Vested Participant who ceased working in covered employment before your employer adopted any Schedule. You will receive a separate notice if you fall into any of these categories. PLEASE remember the current rules of the Pension Fund require that if you are retiring before Normal Retirement Age, you must terminate your Covered Employment before your retirement date and have NO contributory hours reported in the month of your first pension payment. In addition, you must refrain from any employment with any Contributing Employer during this initial month of retirement. This means that IF you are eligible for an Early or Golden 85 retirement and wish to retire with a December 1 st start date, you must terminate your employment prior to December 1, 2011, you can not have any contributory hours reported to the Fund for December 2011, and you must have submitted your pension application to the Fund Office by November 30, IMPORTANT NOTE FOR RECENT RETIREES: If you retired (or will retire) after April 30, 2010 but before January 1, 2012 and engage in Suspendible Service in excess of 63 hours per month after January 1, 2012 (either for a Contributing Employer or a non-contributing employer) before having received 36 monthly pension benefit payments, you will be covered by the Schedule that would have applied to you as if you had originally retired on or after January 1, 2012 (either the Preferred Schedule or the Default Schedule), and your benefit will be adjusted accordingly. Therefore, if you return to work for an Employer under the Preferred Schedule and meet the conditions of this paragraph, the changes in this notice will apply to you and your benefit will be recalculated accordingly once you cease working in Suspendible Service. There are special Rules for employees who work for multiple employers. Please see page 8 of this notice for more information. WHAT ARE THE BENEFIT CHANGES? A. CHANGES IN FUTURE BENEFIT ACCRUALS Please note that: The monthly pension benefit payable at Normal Retirement Age that you have earned prior to the effective date of this change is protected by law and cannot be reduced or eliminated

59 If you have incurred a Separation in Service, different rates may apply to service prior to and after the Separation according to the Plan s existing rules. A Separation in Service occurs if you fail to earn at least 150 Hours of Covered Service in a calendar year. There will be changes in future benefit accruals for hours worked on or after January 1, The new accrual amounts (effective for both Group 1 Members and Group 2 Members) are as follows: Rate of Accrual for Clerks and Meat Cutters if contributions are paid at highest rate* Old Accrual Rate (for hours worked prior to 1/1/12) $33.68 for first 10 years $44.90 thereafter New Accrual Rate (for hours worked on or after 1/1/12) $30.31 for first 10 years $40.41 thereafter * This benefit accrual rate will be adjusted downwards for lower contribution rates and for less than a full year of credited service in accordance with current Pension Plan provisions (see 2010 Pension SPD page 5). Example Benefit Accrued after 2011 Judy s benefit earned through 12/31/11 is $1,000.00/month. She works 1,800 hours in 2012 to add to her 20 years of service. As of 12/31/12, her accrued benefit is $1, $40.41 = $1, Before the change, her 12/31/12 accrued benefit would have been $1, ($1,000 + $44.90 = $1,044.90). B. EARLY RETIREMENT BENEFITS Group 1 Members Effective January 1, 2012, all of the Plan s Early Retirement Benefits, except the Golden 85 Benefit, will be reduced based on actuarial equivalencies set forth in the Plan. The change will cause a Participant s benefit to more closely reflect the true cost of providing benefits for a longer period of time than if you waited until Normal Retirement Age to start your benefits. The Participant s entire benefit, whether accrued before or after January 1, 2012, will be subject to the new Early Retirement Benefit reduction formula. Prior Early Retirement Reductions for Group 1 Members Prior to the Rehabilitation Plan changes, the Normal Retirement Benefit of a Group 1 Member was reduced by 1/2% for each month between the ages of 55 and 60 and 1/3% per month for ages 50 to 55. The applicable percentages used to calculate both the current and new Early Retirement Benefits for whole ages are given in the table below. Group 2 Members There is no change to Early Retirement Benefits of Group 2 Members. Effective January 1, 2012 both groups will use actuarial equivalencies from Normal Retirement Age to calculate Early Retirement Benefits

60 Special Unreduced Early Retirement Prior to the Rehabilitation Plan changes, certain Group 1 participants were eligible for the Special Unreduced Early Retirement benefit, which provided for an unreduced benefit as early as age 55 with 30 years of service. Effective January 1, 2012, this benefit is eliminated. Current and New Early Retirement Reduction Factors Group 1 Participants Group 1 Participants Group 2 Participants Early Retirement Benefit Factors in Effect Before Januar y 1, 2012 Early Retirement Benefit Factors in Effect on or after January 1, 2012 No changes Formula Age Actuarial equivalent reduction for ages below 60 Actuarial equivalent reduction for ages below % 40.80% N/A 55 70% 62.62% 37.14% % 100% 59.31% % 100% 100% Example Reduction for Group 1 Members after 2011 Jim s accrued benefit earned through December 31, 2012 is $1,000 per month payable at Normal Retirement Age. Jim, a Group 1 Member, retires at age 55 on January 1, He is not eligible for Golden 85. Jim s Early Retirement Benefit is $ ($1,000 x 62.62%) Before the change, his Early Retirement Benefit would have been $ ($1000 x 70%). C. JOINT AND SURVIVOR ANNUITY FORM OF BENEFIT Effective January 1, 2012, the 50% Joint and Survivor form of benefit will be changed so that it is actuarially equivalent in value to a straight life annuity similar to the approach the Fund currently uses when calculating the 75% Joint and Survivor form of benefit. A straight life annuity is paid to the retiree for as long as he lives, then it stops. Under the Joint and Survivor options, a portion of the retiree s benefit continues after his death to his Surviving Spouse. In order to make these benefits equal in value, the Joint and Survivor benefits are reduced to reflect the longer expected payout. Previously, there was no reduction if the ages of the Participant and Spouse were within 5 years of each other. If your Spouse was more than 5 years younger than you, the reduction was one half - 5 -

61 of a percent (0.5%) for each year or portion of a year that your Spouse s age was more than five years younger than your age. Sample Joint and Survivor Factors Factors used in actual calculations will be based on the ages of you and your Spouse. The following table illustrates these factors at a few select ages. Your Age Your Spouse s Age 50% J&S Factor 75% J&S Factor Example Adjustment for Payment in 50% Joint and Survivor Annuity Form: Kathy retires at age 65 on August 1, Her accrued pension is $1,000 per month. If Kathy elects the 50% Joint and Survivor benefit with her 65 year old spouse, she will receive $ for as long as she lives with 50% of that amount ($451.00) continuing to her Surviving Spouse for as long as he lives. Before the change, Kathy would have received $1,000 for as long as she lived with $500 continuing to her Surviving Spouse. D. DISABILITY BENEFIT Effective January 1, 2012, the Plan s Disability Retirement Benefit will no longer be available to Participants who are not already in pay status and receiving a Disability Retirement Benefit from the Fund as of December 1, Participants already receiving Disability Retirement Benefits will continue to do so, unless they recover from their disabling condition. If an eligible Participant has not yet provided the Fund with evidence of their disabled status (as determined by the Social Security Administration), even if they retired under an Early Retirement Benefit pending a disability determination, the Participant will only be eligible to receive a Disability Retirement Benefit from the Fund if (i) the Participant receives a favorable decision from the Social Security Administration on the Participant s claim by November 30, 2011, (ii) the Participant s date of entitlement to Social Security Disability benefits is no later than December 1, 2011, (iii) the Trust Fund Office receives a completed pension application (including the notification of award from the Social Security Administration) from the Participant no later than November 30, 2011 and (iv) the Participant otherwise meets the eligibility requirements for a Disability Pension under Plan rules. Prior to the Rehabilitation Plan changes, the Disability Retirement Benefit was payable to eligible, totally disabled Participants with 10 years of Vesting Credit or at least 8,000 Hours of Service in 10 years of elapsed time. Participants could qualify for a Disability Retirement Benefit even if they were not yet eligible to begin receiving one of the other benefits payable under the Plan

62 Example Disability Occurring after 2011 Randy, a Group 1 Member, is 48 with 12 years of service when he becomes disabled on July 1, His vested accrued benefit is $500/month. Randy s options are: Wait until he is 60 and start to draw the $500 monthly Normal Retirement Benefit Wait until an earlier age, but not before age 50 (the age at which he can begin collecting an Early Retirement Benefit), and draw a reduced pension as an early retiree (see early retirement reductions portion of this notice) E. DEATH BENEFITS Effective January 1, 2012, death benefits other than the qualified Joint and Survivor annuity and the qualified Pre-retirement Survivor annuity will be eliminated. Death benefits will only be payable to a Surviving Spouse. Generally, a Surviving Spouse is only the spouse to whom the Participant was married at the time of retirement and for at least the 12 months immediately preceding the Participant s death (but may include an eligible ex-spouse or an alternate payee). Death Before Retirement The pre-retirement death benefit will be calculated as if the Participant had terminated employment on the date of death and retired at the earliest possible retirement age under the 50% Joint and Survivor form of benefit. Under this form of benefit, the Surviving Spouse receives 50% of what the Participant would have received under the 50% Joint and Survivor form of payment (this is the Surviving Spouse s Benefit). This benefit will be payable to the Surviving Spouse no earlier than the earliest date that the Participant could have retired under the Plan, regardless of whether the Participant was still working in Covered Employment on his or her date of death. Previously, if the Participant died before retirement, the amount of the death benefit was 50% of what the Participant s Normal Retirement Benefit would have been (reduced by one half of one percent (0.5%) for each year or portion of a year that the Spouse s age was more than five years younger than the Participant s age). In addition, if the Participant had not experienced a Separation in Service before his or her death, the Surviving Spouse would have been eligible to begin receiving this pre-retirement Surviving Spouse Benefit immediately, instead of waiting until the Participant would have reached his or her earliest retirement age under the Plan. Death After Retirement If you elect a Joint and Survivor form of benefit and die before your spouse, (the spouse that you were married to on the date of your retirement and were married to for at least one full year immediately prior to your death), then your Surviving Spouse will receive for his or her lifetime, depending on the Joint & Survivor option you selected, either 50% or 75% of the benefit you were receiving when you retired (please refer to the Joint and Survivor Annuity Form of Benefit section above for more information). If you elect the straight life annuity, no death benefits are payable upon your death. Previously, survivor s benefits were payable to eligible spouses, regardless of the date of marriage, as long as the Participant and spouse had been married for at least the year immediately before the Participant s death. Surviving Spouse benefits will no longer be payable unless the Participant and spouse were married 1) on the date of the Participant s retirement, and 2) for at least one year immediately before the Participant s death (with exceptions made as required by law for eligible ex-spouses and alternate payees)

63 Elimination of Surviving Children s Benefit The Plan will no longer provide a survivor s benefit to minor children. Previously, a monthly benefit would have been paid to your surviving children under the age of 18 if, at the time of your death: You were vested, You did not have a Separation in Service as of the end of the Plan Year before the year of your retirement or date of death, and No surviving spouse, eligible ex-spouse or alternate payee was eligible to receive the entire Surviving Spouse Benefit. This benefit is now eliminated effective January 1, Special Rules for Employment With Multiple Employers If you move from an employer under the Preferred Schedule to an employer under the Default Schedule, you will not earn credit toward Golden 85 Benefits for benefits accrued on or after January 1, 2012 with the employer under the Default Schedule. If you move from employment with an employer under the Default Schedule to an employer under the Preferred Schedule, the benefit changes in this notice will apply to your service with the employer under the Preferred Schedule as of the date you changed employers. If you work simultaneously for more than one employer at the time that each employer initially adopts a Schedule, then the benefits earned under each employer, including adjustable benefits on accruals earned prior to the date the employer adopts the Schedule, will be determined in accordance with the Schedule adopted by that employer. Working simultaneously means working for multiple employers, without a termination of employment covered by the Pension Fund, within the same calendar year in which at least one of the employers adopts a Schedule. If you worked for other employers before one of your simultaneous employers adopt a Schedule, your adjustable benefits earned with those other employers prior to your simultaneous employer s adoption of the Schedule will be treated in accordance with the Schedules adopted by your simultaneous employers in proportion to your pre-adoption service with the simultaneous employers. Regardless of any changes made to the Plan, it is important to note that the amount of your normal pension benefit payable at Normal Retirement Age that accrued prior to the effective date of these changes is protected by law and cannot be decreased or eliminated. Important Reminders: Except as described above, your pension benefits will generally not be affected if you retire prior to January 1, If you retire between May 1, 2010 and December 1, 2011, you will receive a separate notice that explains certain rules that may apply to you. If you become an Inactive Vested Participant before you retire, the Golden 85 benefit will not be available to you. You become an Inactive Vested Participant if you are a Vested Participant who has incurred a Separation in Service and are not eligible for immediate payment of an Early or Normal Retirement Benefit at the time you incurred a Separation in Service. A Separation in Service occurs if you fail to earn at least 150 Hours of Covered Service in a calendar year. If your employer becomes subject to the Default Schedule before you retire, you may be subject to different rules. You will receive a separate notice from the Fund if this occurs. *** - 8 -

64 The Rehabilitation Plan is subject to annual review and revision by the Board of Trustees depending upon the Fund s financial condition and other factors. Assistance With Your Questions If you have any questions about the Plan or your benefits, you should contact the Administrative Office or your Local Union benefits department. If you have any questions about your rights under ERISA, you may contact the nearest office of the Employee Benefit Security Administration ( EBSA ), U.S. Department of Labor, listed in your telephone directory or: The Division of Technical Assistance and Inquiries Employee Benefit Security Administration U.S. Department of Labor 200 Constitution Avenue N.W. Washington, D.C Board of Trustees UFCW-Northern California Employers Joint Pension Plan This notice is being provided to you in accordance with section 204(h) of the Employee Retirement Income Security Act of 1974, as amended ( ERISA ) and section 4980F of the Internal Revenue Code of 1986, as amended, and is provided to all plan participants and alternate payees and employee organizations. This notice also constitutes your summary of material modifications as required by section 104(b) of ERISA and should be kept with your copy of the Plan s summary plan description and other important plan documents

65 Mail: P.O. Box 8085 Walnut Creek, CA Telephone: (800) Facsimile: (925) IMPORTANT INFORMATION FOR FORMER BUTCHER PLAN PARTICIPANTS Please note that if you are a former Participant of the California Butchers Pension Trust Fund (premerger Butcher Plan) who incurred a Separation from Covered Employment (3 consecutive Plan Years with less than 560 hours of Covered Employment in each year) prior to that Fund s merger into the Joint Plan on January 1, 1998, your service prior to the date of your Separation is governed by the terms of the pre-merger Butcher Plan (subject to the October 2011 Important Notice of Changes in your Benefits document), and therefore your related benefits may be different than described in the Notice. For that portion of your benefit that is governed by the pre-merger Butcher Plan, the following has NOT changed for retirements on or after January 1, 2012: - Your unreduced Normal Retirement Benefit is payable at age 65 - You become eligible for an Early Retirement Benefit at age 55 with 15 Vesting Credits - Your payment choices at retirement are a Straight Life Annuity, a 50% Joint and Survivor Annuity or a 75% Joint and Survivor Annuity - Pre-retirement survivor benefits (Death Benefits) are payable to an eligible surviving spouse only and are calculated as if the deceased participant had retired and elected the 50% Surviving Spouse benefit before death, and - Post-retirement survivor benefits (Death Benefits) are payable to an eligible surviving spouse only and are calculated in accordance with the payment choice elected at retirement. For that portion of your benefit that is governed by the pre-merger Butcher Plan, the following HAS CHANGED for retirements on or after January 1, 2012: - Your early retirement reduction factors have become actuarial equivalencies - Your Joint and Survivor reduction factors (50% or 75%) are calculated using the current Plan factors - The 36 month payment guarantee on the Straight Life Annuity retirement choice has been eliminated, as was the 50% Joint and Survivor pop-up feature on the 50% Joint and Survivor retirement choice (where a retiree s 50% Joint and Survivor benefit would be adjusted to a Straight Life Annuity in the event their spouse passes away first). Also eliminated were the Disability Retirement Benefit and the Special (unreduced) Early Retirement Pension. H:\SPDs\Joint Pension\SPD Enclosures\Former Butcher Plan Notice 2012.doc

66 Mail: P.O. Box 8085 Walnut Creek, CA Telephone: (800) Facsimile: (925) IMPORTANT INFORMATION FOR OLD FOOD PLAN (PRE-1976) PARTICIPANTS If you are a former Participant of the Retail Clerks Unions Employers Benefit Plans of Northern California (pre-1976 Food Plan) who incurred a Separation in Service (2 consecutive Plan Years with less than 300 total hours) prior to 1976, while covered by a Collective Bargaining Agreement providing for normal retirement at age 65, your service prior to the date of your Separation is governed by the terms of that Plan (subject to the October 2011 Important Notice of Changes in your Benefits document), and therefore, your related benefits may be different than described in the Notice. For that portion of your benefit that is governed by the pre-1976 Food Plan, the following has will NOT changed for retirements on or after January 1, 2012: - Your unreduced Normal Retirement Benefit is payable at age 65 - You become eligible for an Early Retirement Benefit at age 55 with 10 Benefit Credits - Your payment choices at retirement are a Straight Life Annuity, a 50% Joint and Survivor Annuity or a 75% Joint and Survivor Annuity - Pre-retirement survivor benefits (Death Benefits) are payable to an eligible surviving spouse only and are calculated as if the deceased participant had retired and elected the 50% Surviving Spouse benefit before death, and - Post-retirement survivor benefits (Death Benefits) are payable to an eligible surviving spouse only and are calculated in accordance with the payment choice elected at retirement. For that portion of your benefit that is governed by the pre-1976 Food Plan, the following HAS CHANGED for retirements on or after January 1, 2012: - Your early retirement reduction factors have become actuarial equivalencies - Your Joint and Survivor reduction factors (50% or 75%) are calculated using the current Plan factors - The Disability Retirement Benefit has been eliminated H:\SPDs\Joint Pension\SPD Enclosures\Pre 1976 Food Plan.doc