All Pension Fund Participants, Beneficiaries, Designated Representatives, Alternate Payees, Contributing Employers and Labor Organizations

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1 Michael G. Morash John T. Fultz Chairman Secretary Ronnie L. Traxler Vice Chairman Lawrence J. McManamon Assistant Secretary DATE: May 2017 TO: FROM: RE: All Pension Fund Participants, Beneficiaries, Designated Representatives, Alternate Payees, Contributing Employers and Labor Organizations Boilermaker-Blacksmith National Pension Trust Important Notice Regarding Amendment 4 to the 13 th Restatement of the Pension Plan Amendment 4 to the 13 th Restatement of the Pension Plan Recently, the Board of Trustees for the Boilermaker-Blacksmith National Pension Trust (the Fund or the Plan ) adopted Amendment 4 to the 13 th Restatement of the Pension Plan, referred to in this Notice as the Amendment. This Notice, which is required under Section 204(h) of the Employee Retirement Income Security Act of 1974 ( ERISA ) and Internal Revenue Code Section 432, explains how the Amendment will affect you. Why was the Pension Plan Amended? Since 2010, the Plan has been certified to be in the Yellow Zone for funding purposes because the ratio of the Fund s assets to its liabilities has been less than 80%. Yellow Zone status represents an early warning to focus on correcting problems before they lead to more serious trouble. As required by the Pension Protection Act, the Trustees adopted a Funding Improvement Plan in September 2010, designed to improve the Plan s funded position over a defined period of time. Subsequently, in June 2012, the Trustees adopted an updated Funding Improvement Plan, which made prospective changes to benefits accrued on or after October 1, While the Fund remains in the Yellow Zone in 2017, the Trustees have decided to take the proactive step of voluntarily electing to be treated as a Red Zone Plan in 2017 in order to adopt a Rehabilitation Plan. The Rehabilitation Plan makes comprehensive benefit changes aimed at returning the Plan to fully funded status. While the Plan changes available in the Yellow Zone are limited and prospective only, the Red Zone permits retroactive changes to certain adjustable benefits not yet in pay status. Based on actuarial projections that take into account the sweeping benefit changes included in the Rehabilitation Plan, the Trustees anticipate certifying the Plan to be in the Yellow Zone in Minnesota Avenue Kansas City, KS bnf-kc.com 1of 14

2 What Changes Apply to Current Retirees? The Amendment does not reduce, or affect in any way, monthly benefits already in pay status or death benefits already earned by currently retired Participants, Alternate Payees or Beneficiaries. Summary of Changes The changes listed here are found respectively throughout this notice associated by numbering and description of what the change will be. 1. Elimination of the Level Income Option 2. Definition of Grandfathered Active added to the Plan 3. Past Service Credit is no longer recognized to meet eligibility for an Early Retirement Pension 4. Eligibility for unreduced Early Retirement Pension changed 5. Eligibility for and amount of partially reduced Early Retirement Pension changed 6. Reduced Early Retirement Pension 7. Amount of Disability Pension 8. Elimination of the Auxiliary Disability Benefit 9. Elimination of Conditional Disability Pensions 10. Normal Form of Payment is the Single Life Annuity (SLA) 11. Optional Forms of Payment 12. Elimination of Alternative Vested Pension 13. Early Commencement of Alternative Vested Pension Eliminated 14. Alternative Vested Pension Return to Covered Employment calculation changed 15. Eligibility for a Basic Pension Changed 16. Elimination of Post-Retirement Lump Sum Death Benefit 17. Elimination of Pre-Retirement Lump Sum Death Benefit 18. Beneficiary Restrictions for the Pre-Retirement 60-Month Guarantee Death Benefit 2 of 14

3 When do the Changes go into Effect? As required by federal law, the Level Income Option is no longer an optional form of payment for Pensions effective on or after May 1, With the exception of the elimination of the Level Income Option, all benefit changes are effective October 1, Who is Affected by these Changes? Generally, any Participant or Alternate Payee with a pension effective date or date of death October 1, 2017 or later is affected by the changes addressed. If you are a Participant who meets the definition of Grandfathered Active, not all changes apply to you. Those changes are addressed separately. What is the Latest Date I Can Apply for a Pension with an Effective Date that is Prior to October 1, 2017? Pensions are only effective on the 1 st of each month. Therefore, you must have a Pension effective date on or before September 1, 2017 in order to retire prior to October 1, In order to be eligible for a September 1, 2017 Pension effective date, your properly completed Pension Application must be postmarked on or before August 14, Elimination of Level Income Option WHAT ARE THE CHANGES? The Level Income Option is not available to Red Zone plans and is eliminated from the Plan. If you retire with a Pension effective on or after May 1, 2017, you cannot elect the Level Income Option. This applies to all Participants regardless of status or credit. 2. Definition of Grandfathered Active A Grandfathered Active is a Participant who has: 1) worked at least 3,000 Hours of Work in Covered Employment during the 36-month period ending on September 30, 2017; AND 2) on or before September 30, 2017 has either: Attained age 55 and earned at least 35 Pension Credits, or Attained age 58 and earned at least 30 Pension Credits 3 of 14

4 GRANDFATHERED ACTIVE What Changes Apply to Grandfathered Actives? There are 4 changes applicable to the Grandfathered Actives: Elimination of the Level Income Option see item #1 on page 3 Elimination of Post Retirement Lump Sum Death Benefit see item #16 on page 13 Elimination of the Pre-Retirement Lump Sum Death Benefit see item #17 on page 13 Beneficiary Restrictions for the Pre-Retirement 60-Month Guarantee Death Benefit - see item #18 on page 13 NOT GRANDFATHERED ACTIVE What Changes Apply if I am Not a Grandfathered Active and I Retire on or after October 1, 2017? If you are not a Grandfathered Active, and you retire with a Pension effective date on or after October 1, 2017, then all the changes apply to you. Therefore, it is important you read the notice in its entirety. Elimination of the Level Income Option see item #1 on page 3 3. Past Service Credit no longer recognized to meet eligibility for an Early Retirement Pension Old Rule: For Pensions effective prior to October 1, 2017, all Pension Credit (Past Service Credit + Future Service Credit) is taken into account for purposes of determining a Participant s eligibility for an Early Retirement Pension (including eligibility for an unreduced or partially reduced Early Retirement Pension). 4 of 14

5 New Rule: For Pensions effective on or after October 1, 2017, only Future Service Credit is taken into account for purposes of determining a Participant s eligibility for an Early Retirement Pension (including eligibility for an unreduced or partially reduced Early Retirement Pension). Bob Boilermaker is age 55 and has a total of 15 years of Pension Credit (10 years of Past Service Credit and 5 years of Future Service Credit). Bob satisfies the other eligibility requirements for an Early Retirement Pension. If Bob elects to retire and begin his Pension prior to October 1, 2017, he is eligible for an Early Retirement Pension based on his 15 years of total Pension Credit. However, if Bob does not begin his Pension prior to October 1, 2017, he is no longer eligible for an Early Retirement Pension at age 55 because he only has 5 years of Future Service Credit, rather than the 15 years of Future Service Credit that are required for Pensions that begin on or after October 1, Eligibility for Unreduced Early Retirement Pension Old Rule: For Pensions effective prior to October 1, 2017, the eligibility requirements for an unreduced Early Retirement Pension are: 1) for benefits accrued prior to October 1, 2012, attainment of age 58 with at least 30 Pension Credits OR attainment of age 62 with at least 25 Pension Credits; and 2) for benefits accrued on and after October 1, 2012, attainment of age 58 with at least 35 Pension Credits OR attainment of age 62 with at least 25 Pension Credits. Prior to October October 1, 2012 and after Age 58+ Age 62+ Age 58+ Age or more Pension Credits or: 25 or more Pension Credits 35 or more Pension Credits or: 25 or more Pension Credits New Rule: For Pensions effective on or after October 1, 2017, the eligibility requirement for an unreduced Early Retirement Pension is retirement from active status after attainment of age 62 with at least 35 Future Service Credits (42,000 Hours of Work in Covered Employment). For purposes of this unreduced Early Retirement Pension, active 5 of 14

6 status means having at least 1,500 Hours of Work in Covered Employment during the 36- month period ending on the effective date of the pension. (Past Service Credit is no longer taken into account for the purposes of eligibility for an unreduced Early Retirement Pension as explained on page 4) October 1, 2017 Age or more Future Service Credits AND retirement from active status 5. Eligibility for a Partially Reduced Early Retirement Pension Old Rule: For Pensions effective prior to October 1, 2017, a partially reduced Early Retirement Pension is available with respect to benefits accrued prior to October 1, The amount of such partially reduced Early Retirement Pension varies depending on retirement age, Pension Credit and whether your first Hour of Work in Covered Employment was prior to or on or after October 1, For Pensions effective prior to October 1, 2017, no partially reduced Early Retirement Pension is available with respect to benefits accrued on or after October 1, Please refer to the Early Retirement Reduction Factor Charts on pages of the Summary Plan Description for the applicable reduction factors. New Rule: For Pensions effective on or after October 1, 2017, the eligibility requirement for a partially reduced Early Retirement Pension is retirement from active status after attainment of age 60 with at least 50 Future Service Credits (60,000 Hours of Work in Covered Employment). For purposes of this partially reduced Early Retirement Pension, active status means having at least 1,500 Hours of Work in Covered Employment during the 36-month period ending on the effective date of the pension. (Past Service Credit is no longer taken into account for the purposes of eligibility for a partially reduced Early Retirement Pension as explained on page 4.) 6. Reduced Early Retirement Pension For Pensions effective on or after October 1, 2017, if a Participant does not meet the eligibility requirements for an unreduced Early Retirement Pension (#4 above) or partially reduced Early 6 of 14

7 Retirement Pension (#5 above), the amount of the Participant s Early Retirement Pension will be equal to the Participant s Age Pension, reduced by.5% for each month (6% per year) by which the Participant is younger than age 65. Pension Benefit Factor Chart Effective other than Grandfathered Actives Age % Amount: See Note 40% 46% 52% 58% 64% 70% 76% 82% 88% 94% 100% Note: Future Service Credit: If you are between age 55 and age 65 on your retirement date, your Monthly Amount is reduced by 0.5% for each month (6% per year) you are younger than age 65. Age % Amount: See Note 40% 46% 52% 58% 64% 70% 76% 82% 88% 94% 100% Future Service Credit: 35+ & Retirement NOT from active status Note: If you are between age 55 and age 65 and you do NOT retire from active status (at least 1,500 Hours of Work in Covered Employment during the 36-month period ending on your retirement date), your Monthly Amount is reduced by.5% for each month (6% per year) you are younger than age 65. Age % Amount: See Note 40% 46% 52% 58% 64% 70% 76% 100% 100% 100% 100% Note: If you are between age 55 and age 62 on your retirement date, your Monthly Amount is Future Service Credit: reduced by 0.5% for each month (6% per year) you are younger than age 65. & If you are between age 62 and age 65 and retire from active status (at least 1,500 Retirement from Active Hours of Work in Covered Employment during the 36-month period ending on your Status retirement Date), your Monthly Amount is equal to amount of the Basic Pension plus Past Service Pension you would be entitled to at age 65. Age % Amount: See Note Future Service Credit: 50+ & Retirement from Active Status 40% 46% 52% 58% 64% 88% 94% 100% 100% 100% 100% Note: If you are between age 55 and age 60 on your retirement date, your Monthly Amount is reduced by 0.5% for each month (6% per year) you are younger than age 65. If you are between age 60 and age 62 and retire from active status (at least 1,500 Hours of Work in Covered Employment during the 36-month period ending on your retirement date), your Monthly Amount is equal to the amount of the Basic Pension plus Past Service Pension you would be entitled to at age 65, reduced by 0.5% for each month (6% per year) you are younger than age 62. Note: Percentages in the table represent the portion of the Pension you will receive, not the reduction amount 7 of 14

8 7. Amount of Disability Pension Old Rule: For a Disability Pension with an Annuity Starting Date prior to October 1, 2017, the monthly amount is equal to the Basic Pension and Regular or Special Past Service Pension amount, if any, you would receive if you were age 65 at the time you became totally and permanently disabled. Bob (age 45) establishes an Annuity Starting Date of September 1, 2017 for a Disability Pension. $55, (contributions) x 12% (multiplier) / 12(months) = $ per month as Basic Pension Amount as if age 65. New Rule: For a Disability Pension with an Annuity Starting Date on or after October 1, 2017, the monthly benefit will be calculated in the same manner as the Unreduced/Partially Reduced/Reduced Early Retirement Pension, except that a Participant younger than age 55 will be treated as if he were age 55 at commencement. Bob (age 45) establishes an Annuity Starting Date of December 1, 2017 for a Disability Pension. $55, (contributions) x 12% (multiplier) / 12(months) = $ per month as Basic Pension Amount at age 65. However, because of the New Rule the Basic Amount is to be reduced as if age 55. The $ is now multiplied x 40% (Early Retirement Reduction) = $ per month. 8. Elimination of the Auxiliary Disability Benefit Old Rule: For a Disability Pension with an Annuity Starting Date prior to October 1, 2017, you will be entitled to an Auxiliary Disability Benefit if the Annuity Starting Date for your Disability Pension is later than the Entitlement Date specified in your disability award from the applicable governmental agency. The Auxiliary Disability Benefit is an amount payable in a lump sum, equal to the monthly benefit which would have been payable under your Disability Pension between your Entitlement Date and the Annuity Starting Date of your Disability Pension. 8 of 14

9 Bob establishes an Annuity Starting Date of September 1, 2017 for a Disability Pension. Social Security Administration Notice of Award entitles Bob to monthly disability benefits beginning January 1, Bob will receive benefits from retroactive to January 1, 2017 which is reflective of his Entitlement Date with the Social Security Administration. New Rule: For a Disability Pension with an Annuity Starting Date on or after October 1, 2017, no Auxiliary Disability Benefit will be payable. Therefore, Disability Pension benefits will be paid beginning on the Annuity Starting Date only. Bob establishes an Annuity Starting Date of December 1, 2017 for a Disability Pension. Social Security Administration Notice of Award entitles Bob to monthly disability benefits beginning January 1, However, Bob will receive his Pension Disability benefits beginning with his December 1, 2017 Annuity Starting Date only. 9. Elimination of the Conditional Disability Pension Old Rule: For Pensions effective prior to October 1, 2017, if you satisfy the eligibility requirements for an Early Retirement Pension and believe you are permanently and totally disabled, but have not yet received a Social Security disability award, you may elect a Conditional Disability Pension. Your Conditional Disability Pension amount is initially calculated as an Early Retirement Pension, but can be adjusted to the Disability Pension amount if you receive a Social Security disability award within the timeframe specified under the Plan. New Rule: For Pensions effective on or after October 1, 2017, the Conditional Disability Pension is no longer available, as the Disability Pension will be calculated in the same manner as an Early Retirement Pension. 10. Normal Form of Benefit is the Single Life Annuity (SLA) Old Rule: For Pensions that become effective prior to October 1, 2017, the Normal Form of payment is: 1) the Single Life Annuity with 60-Months Certain for benefits accrued prior to October 1, 2012; and 2) the Single Life Annuity for benefits accrued on or after October 1, of 14

10 Therefore, if the Single Life Annuity with 60-Months Certain is elected at retirement: The benefits accrued prior to October 1, 2012 are not actuarially adjusted for form of payment, because the elected form is also the Normal Form. The benefits accrued on and after October 1, 2012 are actuarially decreased for form of payment, because the elected form (Single Life Annuity with 60-Months Certain) is more valuable than the Normal Form (Single Life Annuity). New Rule: For Pensions that become effective on or after October 1, 2017, the Normal Form of payment is the Single Life Annuity for the entire accrued benefit. Therefore, if the Single Life Annuity with 60-Months Certain is elected at retirement, the entire accrued benefit is actuarially decreased for form of payment, because the elected form (Single Life Annuity with 60-Months Certain) is more valuable than the Normal Form (Single Life Annuity). 11. Optional Forms of Payment Old Rule: For benefits accrued prior to October 1, 2012, all forms of benefit payment options are reduced according to formulas described in the Pension Plan with the exception of Participants retiring at age 58 or later with 30 Pension Credits who elect the 50% Husband and Wife Option. For benefits accrued on or after October 1, 2012, all forms of benefit payment options are the Actuarial Equivalent of the Normal Form (the Single Life Annuity). New Rule: For Pensions that become effective on or after October 1, 2017, all forms of benefit payment options will be the Actuarial Equivalent of the Normal Form (the Single Life Annuity) for the entire accrued benefit based on the Participant s age on his retirement date and spouse s age, if applicable. (The 50% Husband and Wife exception for Participants retiring at age 58 or later with 30 Pension Credits has been eliminated) 10 of 14

11 Benefit Options Non Disability Or Disability Pensions Effective on or after For All Benefit Accruals (contributions) Single Life Annuity (no guarantee) 100% Single Life Annuity (with 60 month Certain) Single Life Annuity (with 120 month Certain) Actuarial Equivalent of Single Life Annuity Actuarial Equivalent of Single Life Annuity 50% Husband and Wife Actuarial Equivalent of Single Life Annuity 75% Husband and Wife Actuarial Equivalent of Single Life Annuity 100% Husband and Wife Actuarial Equivalent of Single Life Annuity 12. Elimination of Alternative Vested Pension Old Rule: For pensions effective prior to October 1, 2017, a Participant who has incurred a Break in Covered Employment at a time when he has at least 10 years of Future Service Credit before becoming 100% Vested shall be entitled to an Alternative Vested Pension beginning on the first day of the month following his 65 th birthday upon submission of a properly completed Pension application. New Rule: A Participant who has incurred a Break in Covered Employment on or after October 1, 2017 and at a time when he has at least 10 years of Future Service Credit before becoming 100% Vested shall not be entitled to an Alternative Vested Pension. 13. Early Commencement of Alternative Vested Pension Old Rule: For pensions effective prior to October 1, 2017, a Participant who has incurred a Break in Covered Employment at a time when he has at least 15 years of Pension Credit, including at least 10 years of Future Service Credit, shall, upon application, be entitled to an 11 of 14

12 Alternative Vested Pension following his attainment of age 55. Regardless of age, if such Participant is permanently and totally disabled and has been awarded disability from Social Security, his Alternative Vested Pension may become payable. New Rule: An Alternative Vested Pension earned prior to October 1, 2017 will not be payable prior to age 65 if the Participant retires on or after October 1, Alternative Vested Pension Return to Covered Employment Calculation Old Rule: Where a Participant returns to Covered Employment after becoming eligible for an Alternative Vested Pension, the Pension Credit earned prior to the Break in Covered Employment is combined with Pension Credit earned after the return to Covered Employment for purposes of meeting the eligibility requirements for any pension payable prior to age 65 if the Participant retires prior to October 1, New Rule: Where a Participant returns to Covered Employment after becoming eligible for an Alternative Vested Pension, the Pension Credit earned prior to the Break in Covered Employment will NOT be combined with Pension Credit earned after the return to Covered Employment for purposes of meeting the eligibility requirements for any pension payable prior to age 65 if the Participant retires on or after October 1, Eligibility for a Basic Pension Old Rule: For Pensions that become effective prior to October 1, 2017, a Participant who is retired is entitled to a Basic Pension if he has attained age 65, filed a written application for benefits, and either: 1) has credited to his account at least 1,000 Hours of Work in Covered Employment, or 2) has attained vested status. New Rule: For pensions that become effective on or after October 1, 2017, a Participant who is retired shall be entitled to a Basic Pension if he has attained Normal Retirement Age (the later of age 65 or 5 th anniversary of Participation) and has filed a written application for benefits. 12 of 14

13 Pension Plan Credit Year (10/1 9/30) Hours Total Hours Contributions Total Contributions 2014 age $1, $1, age $1, $3, age $0.00 $3, age $0.00 $3, Bob Boilermaker commenced participation in the Plan at age 64 in October Bob has over 1,000 Hours of Work in Covered Employment credited to his account as of June Prior to October 1, 2017, Bob could apply for his benefit to be effective July 1, 2015 as he acquired both age 65 and 1,000 Hours of Work in Covered Employment. However, if Bob does not apply for this benefit before October 1, 2017 he is not eligible for this benefit until he reaches Normal Retirement Age (the 5 th anniversary of participation in the Plan October 1, 2018). 16. Elimination of the Post Retirement Lump Sum Death Benefit If you retire with a Pension effective date on or after October 1, 2017, the $6,000 Post-Retirement Lump Sum Death Benefit will not be payable upon your death. 17. Elimination of the Pre-Retirement Lump Sum Death Benefit If you are an unvested Participant and you die on or after October 1, 2017 and prior to retiring, the Pre-Retirement Lump Sum Death Benefit (maximum of $15,000) will not be payable. 18. Beneficiary Restrictions for the Pre-Retirement 60-Month Guarantee Death Benefit If you die after vesting but before you begin receiving a Pension under the Plan, and you are either unmarried or married for less than one year on your date of death, the Pre-Retirement 60-Month Guarantee Death Benefit will be payable to your beneficiary. Pursuant to the Amendment, the Pre- 13 of 14

14 Retirement 60-Month Guarantee Death Benefit will only be payable to your surviving spouse or children if you die on or after October 1, Enclosed are Pension Benefit Factor charts for both Grandfathered Active and non-grandfathered Active Participants providing a summary of Pension benefit factors based on Participant s age on retirement date and Future Service Credit. All previous Pension estimates provided to Participants (except Grandfathered Actives) with Pension start dates on or after October 1, 2017, are no longer valid and should not be used in preparing for retirement on or after October 1, If you have any questions concerning this Notice, please contact the Fund Office at or , 8:00 a.m. to 5:00 p.m. CST, Monday thru Friday, and a Fund Office Representative will be happy to assist you. You may also visit our website at bnf-kc.com, or us at bnfpension@wilsonmcshane.com. Sincerely, BOARD OF TRUSTEES 14 of 14