INTERNATIONAL ASSOCIATION OF HEAT & FROST INSULATORS AND ASBESTOS WORKERS LOCAL UNION NO. 96 PENSION PLAN

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2 INTERNATIONAL ASSOCIATION OF HEAT & FROST INSULATORS AND ASBESTOS WORKERS LOCAL UNION NO. 96 PENSION PLAN BE SURE TO NOTIFY THE FUND OFFICE OF YOUR CURRENT ADDRESS Most information about your plan and changes to it are sent to you by mail. To assure that you receive this information, the Fund office must have your correct address on file at all times. Included as an insert to this booklet is a card designed to give the Fund office your address and other information it needs about you. You should complete one and mail to the Fund office if you have not recently filed one. You should retain the second card for use when your address, marital status, beneficiary or other information changes. Additional cards will be furnished to you by the Fund office at your request. Failure to keep the Fund office advised of any changes in your address may jeopardize your eligibility for benefits because the Trustees will be unable to advise you of any changes in plan benefits. You may notify the Fund office of an address change or obtain a new enrollment card by writing to: Board of Trustees International Association of Heat & Frost Insulators and Asbestos Workers Local Union No. 96 Pension Plan P.O. Box 1449 Goodlettsville, Tennessee

3 INTERNATIONAL ASSOCIATION OF HEAT & FROST INSULATORS AND ASBESTOS WORKERS LOCAL UNION NO. 96 PENSION PLAN Dear Participant: We are pleased to furnish you at this time with an updated benefit booklet describing your current pension plan and the benefits to which you may be entitled at the time of your retirement. Also included are descriptions of the benefits for which you may be eligible should you become disabled prior to your retirement and the benefits which may be available to your spouse or other beneficiary in the event of your death. Benefit examples have been included as well. In addition to describing the types of benefits which may become available to you, this booklet also outlines the manner in which you become eligible for these benefits, procedures you must follow to apply for these benefits, and the steps you must take if your application for benefits is denied by the Fund office. Many changes have been made to the plan since the last booklet was printed and distributed to you. All of these changes are included in this booklet, and we would encourage you to review it in its entirety so that you can become familiar with the provisions of the plan. We will make every effort to continue to administer your plan in such a way that it can have the greatest benefit for you and your family in future years. After you have reviewed this booklet, please retain it for your future reference. Please do not hesitate to contact the Fund office with any questions you may have regarding this booklet or any other matters pertaining to your plan. Best regards, Your Board of Trustees

4 TABLE OF CONTENTS Board of Trustees Fund Administrator Statement of Coverage Pension Benefit Guaranty Corporation How to Apply for Benefits Claims Appeal Procedures Definitions: Accrued Benefit Covered Service Credited Service Employee Employer Hour Worked One-Year Break-in-Service Participant Pensioner Plan Year Retire or Retirement Union Vested Service Participation, Service Accrual and Vesting: Becoming a Participant Credited Service Accrual Vested Service Accrual Becoming Vested Forfeiture of Accrued Benefit and Accrued Service Types and Calculation of Benefits Normal Retirement Benefit Early Retirement Benefit

5 Late Retirement Benefit Disability Benefit Pre-Retirement Death Benefits Post-Retirement Death Benefits Forms of Benefit Payment How to Figure Your Pension Benefits Suspension of Benefits Mandatory Payment of Benefits on Retiring After Reaching Age 70 1 / Beneficiary Designation Miscellaneous Information Rights of Plan Participants Information of Interest as Required by the Employee Retirement Income Security Act

6 INTERNATIONAL ASSOCIATION OF HEAT & FROST INSULATORS AND ASBESTOS WORKERS LOCAL UNION NO. 96 PENSION PLAN The Fund is Administered by: THE BOARD OF TRUSTEES THE TRUSTEES ARE: UNION TRUSTEES: MR. VINCE P. DRESCHER, JR. Business Manager Asbestos Workers Local Union No. 96 P.O. Box 623 Pooler, Georgia MANAGEMENT TRUSTEE: MR. KERMIT PATRICK Pat s Insulation, Incorporated P.O. Box Garden City, Georgia MR. CALVIN T. HOWELL 981 Conway McDonald Road Tarrytown, Georgia The Fund Consultant and Administrator is: SOUTHERN BENEFIT ADMINISTRATORS, INCORPORATED P.O. Box 1449 Goodlettsville, Tennessee Phone: (615) Fax: (615) The Fund Attorney is: MR. NORMAN J. SLAWSKY Jacobs, Slawsky & Barnett Attorneys at Law Suite Peachtree Street Atlanta, Georgia Phone: (404) Fax: (404) (1)

7 STATEMENT OF COVERAGE BY THE PENSION BENEFIT GUARANTY CORPORATION 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: (1) normal and early retirement benefits; (2) disability benefits if you become disabled before the plan becomes insolvent; and (3) certain benefits for your survivors. The PBGC guarantee generally does not cover: (1) benefits greater than the maximum guaranteed amount set by law; (2) benefit increases and new benefits based on plan provisions that have been in place for fewer than 5 years at the earlier of: (i) the date the plan terminates or (ii) the time the plan becomes insolvent; (3) benefits that are not vested because you have not worked long enough; (4) benefits for which you have not met all of the requirements at the time the plan becomes insolvent; and (5) non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay, and severance pay. For more information about the PBGC and the benefits it guarantees, ask your plan administrator or contact the PBGC s Technical Assistance Division, 1200 K Street, N.W., Suite 930, Washington, D.C or call (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 (2)

8 HOW TO APPLY FOR BENEFITS You must make application in order to receive your benefits timely. No benefit will commence for any period prior to the filing of your application. We would therefore urge you to make application prior to the desired date of your benefits. When you make application for any benefits, please do the following: 1. You must complete an Application for Benefits form. This form must be completed regardless of the type of benefits you are requesting. 2. You must furnish with your application for benefits a proof of age document which can be any of the following: (a) Birth Certificate (b) Church Record of Baptism (c) Marriage Certificate (if age is shown) (d) Passport (e) Elementary School Record (f) Registration or Voting Record (if age is shown) (g) Armed Forces Discharge (h) Social Security Records (i) (j) Civil Service Records Driver s License 3. If you apply for a Disability Benefit you will need either a statement from the Social Security Administration verifying your disability or statements from two physicians, as explained further on page 28 of this booklet. 4. If applying for a death benefit, please submit a certified copy of the Participant s death certificate. (3)

9 5. Your application and accompanying documents should be submitted to the Fund office. Any information required from the Local Union will be requested by the Fund office. 6. You should submit your application at least three months in advance of your retirement. 7. All necessary forms may be obtained at the Fund office or the Local Union office. Once your eligibility for a benefit has been established by the Fund office, you will be furnished with certain information explaining the benefit options available under the Fund. You will then be requested to choose a benefit option, as outlined in this booklet, before payment of your benefits can commence. Please complete all forms fully and accurately. Please apply for your benefits promptly, and prior to your desired effective date, as failure to provide information or apply for benefits timely may adversely affect the commencement date of your benefits. Feel free to call the Fund office with absolutely any questions. (4)

10 CLAIMS APPEAL PROCEDURES The Trustees will make a determination as to the right of any person to a benefit. In the event an application for benefits is denied by the Trustees, the following procedures will apply. If claim is made for a disability benefit, and it is denied because you have failed to satisfactorily establish proof of your disability, it will be handled as outlined below. However, if it is denied for any other reason, the denial and any appeal rights will be the same as those established below for retirement benefits and death benefits. 1. Time Limits for Processing a Claim for Benefits (a) Claims for Retirement Benefits and Death Benefits. The Trustees will furnish to you a written notice of an adverse benefit determination within 90 days following receipt of the claim, or, if the Trustees determine that special circumstances delay processing the claim, within 90 additional days thereafter. If special circumstances do require an extension, the Trustees will give you written notice within 90 days of receipt of the claim advising you of the special circumstances which require an extension of time and the date by which the Plan expects to make a decision. (b) Claims for Disability Benefits (If Denied for Failure to Establish Proof of Disability). The Trustees will furnish to you a written notice of an adverse benefit determination within 45 days following receipt of the claim, or, if the Trustees determine that an extension is necessary due to matters beyond the control of the Plan, within 30 additional days thereafter. If the Trustees do determine that an extension is necessary, the Trustees will give you written notice within the first 45 days following receipt of the claim advising the special circumstances requiring the extension and the date by which the Plan expects to render a decision. If, prior to the end of the first 30 day extension period, the Trustees determine that due to matters beyond the control of the Plan a decision cannot be rendered within that extended time, the period for making the determination may be extended by an additional 30 days, provided the Trustees notify you in writing, prior to the expiration of the first 30 day extension period, of the circumstances requiring the extension and the date by which the Plan expects to render a decision. (5)

11 2. Notice of Denial If an application for benefits is denied or partly denied for any reason, you or your authorized representative will be notified in writing within the time frame set forth in 1. above regarding the denial. This notice will set forth, in a manner calculated to be understood by you, all of the following information: (a) The specific reason or reasons for the adverse determination; (b) Reference to specific Plan provisions on which the determination is based; (c) A description of any additional material or information necessary for you to perfect the claim and an explanation of why such material or information is necessary; (d) A description of the Plan s review procedures and the time limits applicable to such procedures, including a statement of your right to bring a civil action under section 502(a) of the Employee Retirement Income Security Act of 1974, as amended, following an adverse benefit determination on review; and (e) If the claim is for disability benefits, and you have failed to establish proof of your disability, a copy, free of charge, of any internal rule, guide, practice or procedure relied upon in making the adverse determination, or, if the applicable benefit determination is based on a medical judgement, an explanation of the scientific or clinical judgement applied to the terms of the Plan with respect to your medical circumstances used in making the determination. 3. Your Right to Appeal an Adverse Benefit Determination You will have the right to appeal any adverse benefit determination and will be entitled to a full and fair review of the decision by the Board of Trustees, or by a committee appointed by them, as outlined below: (a) Time Limit for Filing an Appeal: (1) Claims for Retirement Benefits and Death Benefits. You will be (6)

12 given 60 days following receipt of an adverse benefit determination within which to file an appeal with the Trustees. (2) Claims for Disability Benefits (If Denied Due to Failure to Establish Proof of Disability). You will be given 180 days following receipt of an adverse benefit determination within which to file an appeal with the Trustees. (b) You will have the right to submit written comments, documents, records and any other information relating to your claim. (c) Disclosure of Documents, Records and Information on Appeal. Upon your written request, the Trustees will provide to you free of charge reasonable access to, and copies of, any document, record or other information which was relied on in making the benefit determination, or which was submitted, considered or generated in the course of making the benefit determination, without regard to whether the information was relied on in making the benefit determination, or which demonstrates compliance with the administrative process and safeguards required under these procedures in making the benefit determination. In the event of failure to establish proof of disability if applying for Disability Benefits, the following additional information will be made available to you free of charge: any document, record or other information which constitutes a statement of policy or guidance with respect to the Plan concerning your diagnosis or establishment of disability or degree of disability, without regard to whether such advice or statement was relied on in making the benefit determination. (d) Additional Provisions Applicable to Claims for Disability Benefits. In the event a claim for disability benefits is denied due to your failure to establish proof of your disability, the Trustees, or a committee appointed by them, will: (1) Review the claim without giving deference to the initial adverse benefit determination (in the event the Trustees or their committee were involved in the initial adverse benefit determination, the review will be conducted by an appropriate named fiduciary of the Plan who is neither the individual who made the adverse benefit determination nor the subordinate of such individual); (7)

13 (2) In deciding an appeal of any adverse benefit determination that was based in whole or in part on a medical judgement, consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgement; (3) Identify to you any medical or vocational expert whose advice was obtained in behalf of the Plan in connection with the adverse benefit determination, without regard to whether the advice was relied on in making the benefit determination; and (4) In selecting a health care professional for purposes of consultation as provided in (2) above, consult with an individual who was neither consulted in connection with the adverse benefit determination that is the subject of the appeal, nor the subordinate of any such individual. 4. Notice of Decision (a) Timing of Hearing and Notice. A decision on an appeal will be made by the Trustees or their committee and communicated in writing to you within five days of the decision. The appeal will be reviewed at the meeting of the Trustees or their committee which immediately follows the Plan s receipt of a request for review, unless the request for review is filed within 30 days preceding the date of such meeting. In such case, a benefit determination will be made no later than the date of the second meeting following the Plan s receipt of the request for review, but in no instance more than 120 days following receipt of the appeal. (b) Content of Notice of Denial. The Trustees or their committee will provide you with written notification of the Plan s benefit determination on review. In the case of an adverse benefit determination, the notification will set forth, in a manner calculated to be understood by you: (1) The specific reason or reasons for the adverse determination; (2) Reference to the specific Plan provisions on which the benefit determination is based; (3) A statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records (8)

14 and other information relevant to the claim for benefits. A document, record or other information will be considered relevant to a claim if such instrument: i. Was relied on in making the benefit determination; ii. Was submitted, considered or generated in the course of making the benefit determination, without regard to whether the document, record or other information was relied on in making the benefit determination; iii. Demonstrates compliance with administrative processes and safeguards designed to ensure and to verify that claim determinations are made in accordance with governing Plan documents and that, where appropriate, Plan provisions has been applied consistently with respect to similarly situated claimants; or iv. In the case of a claim for a Disability Benefit, constitutes a statement of policy or guidance with respect to the Plan concerning the denied benefit, without regard to whether such advice or statement was relied on in making the benefit determination; and (4) If the claim was made for Disability Benefits and you failed to establish satisfactory proof of your disability, the notice will contain: i. If an internal rule, guideline, protocol or other similar criteria was relied on in making the adverse determination, the specific rule, guideline, protocol or other similar criteria; ii. An explanation of the scientific or clinical judgement for the determination, applying the terms of the Plan to your medical circumstances; and iii. The following statement: You and your Plan may have other voluntary alternative dispute resolution options, such as mediation. One way to find out what may be available is to contact your local U.S. Department of Labor office and your state insurance regulatory agency. (9)

15 5. Rights Granted Hereunder Are Limited to One Appeal. In appealing an adverse benefit determination under these procedures, you may choose to make a written appeal, in which event the Plan s administrative manager will present all documents in your behalf, or you may choose to personally appear before the Trustees for the purpose of presenting an appeal; or designate a representative to appear in your behalf. Your appeals rights are limited to one written or personal appeal per denied claim. 6. Compliance with Appeal Procedures. You may at your own expense have legal representation at any stage of these appeal procedures. The Trustees will interpret Plan provisions in a consistent and equitable manner. You will be required to exhaust these appeals procedures before proceeding to litigation, and any attempt to circumvent these proceedings in any manner will be resisted by the Trustees. (10)

16 DEFINITIONS This booklet has been prepared in such a way as to minimize the use of complex terms in an effort to assure that your pension benefits are explained so that you can fully understand them and make use of them at the proper time. However, because some of the explanations included in this booklet require the use of specific terms, the words and phrases listed below have been defined for you. ACCRUED BENEFIT See page 20 for an explanation of your Accrued Benefit. COVERED SERVICE The term Covered Service means any employment during which an Employee has been employed by an Employer who makes or is required to make contributions for that employment to the Fund under the terms of a collective bargaining agreement or other written agreement. To the extent contributions are paid or are required to be paid to the Fund for officers and employees of the Union, those officers and employees will be considered to be in Covered Service. CREDITED SERVICE The term Credited Service, including Past Credited Service and Future Credited Service, is explained on pages 16 and 17. EMPLOYEE The term Employee means: 1. Any employee working in Covered Service for a contributing Employer for whom the Employer is required to make contributions to the Fund; and 2. Any officer or employee of the Union who has been proposed for benefits under the Trust Fund by the Union and who has been accepted by the Trustees and for whom the Union agrees in writing to contribute to the Fund. EMPLOYER The term Employer means: (11)

17 1. Any employer which is bound, by a collective bargaining agreement or other written agreement, to make contributions to this Fund for hours of Covered Service; and 2. The Union, but only for purposes of making contributions to the Fund. HOUR WORKED The term Hour Worked means: 1. Each hour of Covered Service for which an Employee is paid, or is entitled to payment, by an Employer: (a) For the performance of duties; or (b) For reasons other than the performance of duties (irrespective of whether the employment relationship has terminated), including vacations, holidays, illness, incapacity (including disability), layoff, jury duty, military duty, or leave of absence, subject to a maximum of 501 hours per Plan Year on account of any single, continuous period during which no duties are performed; or (c) As the result of back pay being awarded, or agreed to, by an Employer (irrespective of mitigation of damages), subject to a maximum of 501 hours per Plan Year on account of any single back pay award or agreement. (d) Exclusions - The term Hour Worked does not include hours for which the person is paid, or entitled to payment, if no duties are performed and if such payment is made or due solely for the purpose of complying with workers compensation, unemployment compensation, or disability insurance laws, or if such payment solely reimburses the person for medical or medically related expenses incurred by the person. 2. Solely for purposes of determining whether an Employee has incurred a One- Year Break-in-Service, each hour of a parental leave of absence. This means an absence from work for any period by reason of the Employee s pregnancy, birth of the Employee s child, placement of a child with the Employee in connection with the adoption of that child, or any absence for the purpose (12)

18 of caring for a child for a period immediately following birth or placement. For this purpose, Hours Worked are credited for the Plan Year in which the absence from work begins only if the credit is necessary to prevent the Employee from incurring a One-Year Break-in-Service, or in any other case, in the immediately following Plan Year. The Hours Worked counted for a parental leave of absence will be those that would normally have been credited otherwise, or, in any case in which the Trustees are unable to determine the hours normally credited, eight Hours Worked per day. The total Hours Worked required to be counted for a parental leave of absence will not exceed five hundred and one (501). 3. For purposes of determining eligibility to participate under the Plan, determining entitlement to a Vested Retirement Benefit and avoiding a One-Year Break-in-Service, all hours for which an Employee actually works for an Employer in work not coming under the jurisdiction of the Union, provided such hours immediately precede or immediately follow hours worked within the jurisdiction of the Union with the same Employer and only if between such periods of employment the Employee suffers no form of termination of employment with the same Employer. 4. In addition to Hours Worked credited above, an Employee will be entitled to credit for Hours Worked during a period of service in the Armed Forces of the United States of America, provided, however, that if the Employee fails to return to active employment with an Employer on or before the last day on which the Employee s reemployment rights are guaranteed by law, he will, for all purposes of the Plan, be treated as if his employment was terminated on such last day. Hours Worked for an Employee s period of armed forces leave will be credited to the period during which he would have been regularly engaged in the performance of his duties had he not been on such leave. ONE-YEAR BREAK-IN-SERVICE The term One-Year Break-in-Service means a Plan Year in which an Employee fails to be credited with any Vested Service. A One-Year Break-in-Service will not be deemed to have occurred if an Employee was disabled so as to be unable to work in Covered Service for 90 consecutive days during a Plan Year. (13)

19 PARTICIPANT The term Participant means any Employee who participates in the Plan as provided in this booklet, any Pensioner, and any Employee who has terminated employment with rights to a Vested Retirement Benefit. PENSIONER The term Pensioner means a person who is receiving benefits under this Plan. PLAN YEAR The term Plan Year means the period from January 1 through December 31. RETIRE OR RETIREMENT The terms Retire and Retirement mean complete withdrawal from any further employment in the jurisdiction of the Plan. The jurisdiction of the Plan means employment in: 1. An industry in which Employees covered by this Plan were employed and accrued benefits under this Plan as a result of such employment at the time of withdrawal; and 2. A trade or craft in which the Employee was employed at any time under the Plan; 3. Provided such employment is within the geographical area covered by this Plan. Complete withdrawal means ceasing all work within the jurisdiction of the Plan for a period of not less than 60 days commencing with the effective date of any pension benefit paid as a result of any Retirement under the Plan. UNION The term Union means International Association of Heat and Frost Insulators and Asbestos Workers Local 96. (14)

20 VESTED SERVICE The term Vested Service, including Past Vested Service and Future Vested Service, is explained on pages 17 and 18. (15)

21 PARTICIPATION, SERVICE ACCRUAL AND VESTING BECOMING A PARTICIPANT An Employee will become a Participant on the first day of a Plan Year in which he is credited with a minimum of 400 Hours Worked in Future Vested Service. CREDITED SERVICE ACCRUAL Credited Service is used to calculate the benefits payable to you under the Plan. Page 20 explains that your Accrued Benefit is calculated by multiplying your years, or units, of Credited Service by the rates found on that page to figure your monthly retirement benefit. Credited Service should not be confused with Vested Service as explained on pages 17 and 18. Vested Service is used to figure your entitlement to a retirement benefit, and Credited Service is used to actually calculate the amount of your benefit. Credited Service is calculated as follows: Past Credited Service Past Credited Service is granted for service prior to January 1, An Employee who became a Participant under the Plan as of January 1, 1962 will receive Past Credited Service for each year, or fraction of a year based on full months of employment, for each year of continuous employment in jobs covered by a collective bargaining agreement in effect with the Union immediately prior to January 1, To receive Past Credited Service, the Employee must have: 1. Been employed by a signatory employer during the year ended December 31, 1961; or 2. Completed 3,200 Hours Worked during the period January 1, 1962 through December 31, Future Credited Service Future Credited Service is granted for Covered Service performed on and after January 1, Future Credited Service is based on the number of Hours Worked in each Plan Year as follows: 1. For Each Plan Year During the Period January 1, 1962 through December 31, (16)

22 Hours Worked During Future Credited Service Plan Year for Plan Year 1520 or more year 400 to A fraction of a year computed by dividing hours worked by 1,520 Less than No Service For any Plan Year during such period, the maximum credit is 1 year of Future Credited Service. 2. For Each Plan Year During the Period January 1, 1973 through December 31, Future Credited Service for all Plan Years from January 1, 1973 through December 31, 1994 will be determined for each Participant in terms of units by dividing the total Hours Worked from January 1, 1973 through December 31, 1994 by 400. Fractional units are calculated to two decimal places. 3. For Each Plan Year Beginning On or After January 1, Future Credited Service for all Plan Years from January 1, 1995 to the date Covered Service ceases will be determined for each Participant in terms of units by dividing the total hours worked by 400. Four units will be equal to one year of Future Credited Service. However, the maximum Future Credited Service that may be earned in any Plan Year is one. Fractional units will be calculated to two decimal places, and will be rounded up to the next highest tenth of a unit. VESTED SERVICE ACCRUAL On the previous page we explained how to earn Credited Service, which is used to calculate the amount of your benefits due from the Plan. Credited Service should not be confused with Vested Service, which is used to determine whether you are eligible for a benefit from the Plan. As explained in the section which follows this one, when you become vested, you have earned a non-forfeitable right to receive a benefit from the Plan upon attaining your Early or Normal Retirement age. (17)

23 A Participant will be granted one year of Vested Service for each of the years described below: Past Vested Service Past Vested Service is granted in the same manner as Past Credited Service, as explained in the previous section. Future Vested Service Future Vested Service will be granted for Plan Years beginning on or after January 1, 1962 as follows: 1. For Each Plan Year During the Period January 1, 1962 through December 31, Future Vested Service is granted in the same manner as Future Credited Service, as outlined in the previous section. The maximum Future Credited Service in any Plan Year is limited to one year. 2. For Each Plan Year Beginning On or After January 1, A year of Future Vested Service will be granted for each Plan Year in which a Participant has a minimum of 400 Hours Worked. No credit will be given for Plan Years in which the Participant has fewer than 400 Hours Worked, and the maximum credit for any Plan Year is limited to one year of Future Vested Service. BECOMING VESTED A Participant will earn a nonforfeitable right to his Accrued Benefit (will become vested ) on the earlier of: 1. The last day of the Plan Year in which he completes his fifth year of Vested Service; or 2. The date on which he reaches age 65. However, prior to becoming vested, a Participant may forfeit his Credited Service and Vested Service as well as his Accrued Benefit as explained below. (18)

24 FORFEITURE OF ACCRUED BENEFIT AND ACCRUED SERVICE A Participant who has not become vested, as explained above, will forfeit his accrued Credited Service and Vested Service, and his right to any Accrued Benefit, on the date that he accumulates five or more consecutive One-Year Breaks-in- Service. (19)

25 TYPES OF BENEFITS TYPES AND CALCULATION OF BENEFITS There are six types of benefits for which you, or your surviving spouse or beneficiary, may become eligible under the Plan. Each of them is described in more detail on the following pages. They are: 1. Normal Retirement Benefit 2. Early Retirement Benefit 3. Late Retirement Benefit 4. Disability Benefit 5. Pre-Retirement Benefit 6. Post Retirement Death Benefit CALCULATION OF ACCRUED BENEFIT The monthly amount of most of the benefits shown above is based on the total of your accrued Credited Service. Your monthly benefit will be calculated by multiplying the benefit rates listed below by the appropriate period of Credited Service earned by you under the Fund. The monthly benefit rates are as follows: 1. For each year of Credited Service earned prior to January 1, 1973 $ For each unit of Future Credited Service earned on or after January 1, 1973 $18.20 The amount of your Accrued Benefit calculated under this section will be adjusted to account for early retirement or late retirement, and the form of benefit payment selected, as explained on the following pages. (20)

26 NORMAL RETIREMENT BENEFIT ELIGIBILITY If you are a Participant under the Plan, you will be eligible to Retire and receive a Normal Retirement Benefit provided you meet the following requirements: 1. If you became a Participant prior to January 1, 1984: (a) You are at least age 65; and (b) You have reached the fifth anniversary of the date on which you became a Participant (the tenth anniversary if you failed to be credited with at least one Hour Worked after December 31, 1987) without incurring a forfeiture of Vested Service. 2. If you became a Participant during the period January 1, 1984 through December 31, 1994, you satisfy either (a) or (b) below: (a) You are at least age 65 and have reached the fifth anniversary of the date on which you became a Participant (the tenth anniversary if you failed to be credited with at least one Hour Worked after December 31, 1987) without incurring a forfeiture of Vested Service; or (b) You have earned a minimum of 30 years of Vested Service or Credited Service without incurring a forfeiture of Vested Service. 3. If you become a Participant on or after January 1, 1995: (a) You are at least age 65; and (b) You have reached the fifth anniversary of the date on which you became a Participant without incurring a forfeiture of Vested Service. AMOUNT OF BENEFIT Your monthly Normal Retirement Benefit will be equal to your Accrued Benefit, as explained in this booklet, adjusted to reflect your selection of the form of benefit payment you will receive, as explained further in the Forms of Benefit Payment section of this booklet. (21)

27 WHEN PAYMENTS BEGIN The effective date of your Normal Retirement Benefit will be the first day of the month following the date on which you have both completed the eligibility requirements for a Normal Retirement Benefit and submitted your application on forms furnished by the Fund office, along with any personal data required by the Trustees. (22)

28 EARLY RETIREMENT BENEFIT ELIGIBILITY If you are a Participant under the Plan, you will be eligible to Retire and receive an Early Retirement Benefit provided you have satisfied the following provisions: 1. You must have attained at least age 55, but have not yet reached age 65; and 2. You have been credited with a minimum of five years of Vested Service. DELAYED EARLY RETIREMENT Notwithstanding any other provisions of the Plan to the contrary, if a Participant or former Participant performs at least one hour of Non-Covered Employment (as defined below) at any time after contributions are remitted to the Fund on his behalf, then his Early Retirement Date solely with respect to benefits earned after January 1, 2005 will be deferred until his Delayed Early Retirement Date. The Delayed Early Retirement Date is determined as outlined above, but delayed by six months for each calendar quarter after January 1, 2005, during which the individual performs at least one hour of Non-Covered Employment. As used in this section, Non-Covered Employment means unauthorized employment in the construction or maintenance industries after January 1, 2005 as an insulator or asbestos worker for an employer who is not a party to a collective bargaining agreement with a union that represents employees in the insulation business or a related business or any other written agreement to contribute to this Plan including self-employment which is not covered by a collective bargaining agreement. AMOUNT OF BENEFIT Your monthly Early Retirement Benefit will be equal to your Accrued Benefit, as explained in this booklet, but reduced by a factor of for each month prior to attainment of age 65. The following table illustrates the percentage of the Accrued Benefit payable at the exact ages shown: (23)

29 Exact Attained Age Percentage of Accrued of Participant Benefit Payable 55 50% 56 55% 57 60% 58 65% 59 70% 60 75% 61 80% 62 85% 63 90% 64 95% However, the Accrued Benefit will not be reduced for any Participant who has been credited with 30 or more years of Vested Service or Credited Service. Your monthly benefit will be adjusted to reflect the form of benefit payment you will receive, as explained further in the Forms of Benefit Payment section of this booklet. WHEN PAYMENT BEGINS The effective date of your Early Retirement Benefit will be the first day of the month following the date on which you have both completed the eligibility requirements for an Early Retirement Benefit and submitted your application on forms furnished by the Fund office, along with any personal data required by the Trustees. (24)

30 LATE RETIREMENT BENEFIT ELIGIBILITY If you are a Participant who has satisfied the eligibility requirements for a Normal Retirement Benefit, you can elect to defer your Retirement and receive instead a Late Retirement Benefit. If you decide to take Late Retirement, your monthly benefit will be adjusted as explained below. AMOUNT OF BENEFIT Your monthly Late Retirement Benefit will be equal to the greater of: 1. Your Accrued Benefit, based on Credited Service earned as of your Late Retirement Date and calculated in accordance with Plan provisions in effect as of your Late Retirement Date; or 2. The benefit you would have received at Normal Retirement, but actuarially increased based on your age at Late Retirement as follows: Your Monthly Benefit For Each Month Between Will Be Increased the Following Ages By the Following Factor 65 to % 66 to % 67 to % 68 to % 69 to % 70 to % 71 to % 72 to % 73 to % 74 to % 75 to % 76 to % 77 to % 78 to % 79 to % (25)

31 WHEN PAYMENTS BEGIN The effective date of your Late Retirement Benefit will be the first day of the month following the date on which you have both completed the eligibility requirements for a Late Retirement Benefit and submitted your application on forms furnished by the Fund office, along with any personal data required by the Trustees. However, federal law requires that your benefits begin by April 1 of the calendar year following the later of (1) the calendar year in which you reach 70 1 /2, or (2) the calendar year in which you retire. You should therefore make plans to file a timely application for your benefits. (26)

32 DISABILITY BENEFIT ELIGIBILITY If you are a Participant under the Plan and you become Totally and Permanently Disabled, as that term is defined below, you will be eligible to receive a Disability Benefit provided you meet the following requirements: 1. You must have accrued a minimum of five years of Credited Service; and 2. You must satisfy one of the following: (a) Your disability either occurs within one year from the Plan Year in which you last earned one-quarter of a year of Credited Service; or (b) You became disabled as a result of an accident, injury or disease sustained while employed as an insulator or asbestos worker or otherwise within the trade jurisdiction of the Plan, but only if such employment was in a category of work covered by a collective bargaining agreement between a local affiliated with the International Association of Heat and Frost Insulators and Asbestos Workers and your employer and you become disabled within two calendar years from the date you last worked at least 400 hours in a category of work covered by a collective bargaining agreement between a local affiliated with the International Association of Heat and Frost Insulators and Asbestos Workers and your Employer; or (c) You were disabled so as to be prevented from performing the duties of an insulator or asbestos worker continuously from the day you last accrued Credited Service under the Plan until becoming Totally and Permanently Disabled. DEFINITION AND PROOF OF TOTAL AND PERMANENT DISABILITY You will be considered Totally and Permanently Disabled only if the Trustees, in their sole and absolute judgment, find, on the basis of medical evidence, that: (a) You have been totally disabled by a physical or mental condition so as to be prevented from engaging in any gainful activity for wage or profit; and (27)

33 (b) Your disability has existed for at least five months. Evidence of Total and Permanent Disability must consist of the following: (a) (b) Written verification that you have received a determination by the Social Security Administration that you are entitled to receive a Social Security disability insurance benefit; or Written certification on the basis of a medical examination conducted no earlier than 60 days subsequent to the date you first claimed to be prevented by such mental or physical condition from engaging in any gainful activity for wage or profit certifying that you have incurred a permanent and total disability that prevents you from engaging in any gainful activity for wage or profit and written certification that a medical examination conducted by a doctor approved by the Trustees certifying that you have a total and permanent disability that prevents you from engaging in any gainful activity for wage or profit. The expense of any medical examination by a physician or clinic selected by the Trustees will be paid by the Fund. The Trustees will, however, have the right to waive the requirement for medical examinations if they deem that such examinations are not necessary. AMOUNT OF BENEFIT Your monthly Disability Benefit will be equal to your Accrued Benefit, as explained in this booklet, adjusted to reflect your selection of the form of benefit payment you will receive, as explained further in the Forms of Benefit Payment section of this booklet. WHEN PAYMENTS BEGIN The effective date of your Disability Benefit will be the latest of the following: 1. The first day of the month following the date of disability established by the Federal Social Security Administration (if proof of disability is based on a Social Security award); 2. The first of the month following the date you became disabled (if proof of disability is based solely on the certification of a doctor); (28)

34 3. The first of the month following five months of Total and Permanent Disability; or 4. The first of the month following the receipt of a written application. TERMINATION OF DISABILITY BENEFIT If you recover from your disability before becoming eligible for a Normal Retirement Benefit, your last payment will be the payment due immediately preceding your loss of eligibility for Social Security disability payments. If you are not receiving Social Security benefits, your last disability payment will be the next payment due preceding the decision of a duly licensed physicians that you are no longer Totally and Permanently Disabled, or if you engage in any occupation for wage or profit. If you die while receiving disability benefits, payments may be continued to your spouse or other beneficiary, depending on the form of payment you have chosen as explained in the section of this booklet entitled Forms of Benefit Payment. (29)

35 PRE-RETIREMENT DEATH BENEFITS ELIGIBILITY If you are a Participant under the Plan and you die after becoming vested, as explained on page 18, and you have not received any Normal, Early or Late Retirement Benefits under the Plan, and are not receiving Disability Benefits on the date of your death, your surviving spouse will be entitled to receive a monthly benefit. If you have no surviving spouse but are survived by one or more dependent children, the legal guardian of your child(ren) will be entitled to receive a monthly benefit for support and maintenance of the child(ren). If you have no surviving spouse or dependent children and had accrued at least five years of Credited Service, a lump sum benefit will be paid to your beneficiary. As used in this section, the term dependent children means your children who are unmarried, unemployed and under the age of 19. AMOUNT OF BENEFIT The monthly benefit payable under this provision to your surviving spouse or the guardian of your dependent child(ren) will be equal to 50% of your Accrued Benefit. Otherwise, the amount of the lump sum benefit payable to your beneficiary will be $10,000. WHEN PAYMENTS BEGIN Monthly Pre-Retirement Death Benefits will begin on the first day of the month following the month, after your death, in which your surviving spouse or your children s guardian has submitted an application for the benefit along with proof of your death and any other information which may be required by the Trustees. The lump sum benefit will be paid as soon as possible following receipt of an application and required documentation. WHEN MONTHLY PAYMENTS CEASE Monthly payments to your spouse will cease with the payment due for the month in which he or she dies. Monthly payments made in behalf of your surviving child(ren) will cease with the payment due for the month in which there is no longer anyone who qualifies as a dependent child. (30)

36 POST-RETIREMENT DEATH BENEFITS In addition to any other benefit which may be payable under the form of benefit payment chosen by a Pensioner, a lump sum death benefit of $1,500 will be payable upon the death of any Pensioner who was receiving a monthly Normal, Early or Late Retirement Benefit at the time of his death. This benefit will be payable to the Pensioner s beneficiary. (31)

37 AUTOMATIC FORM FORMS OF BENEFIT PAYMENT 5 Year Certain and Life Benefit for Unmarried Participants If, at the time your Normal, Early, or Late Retirement Benefits or Disability Benefits commence, you are not married, and you have not elected an optional form of benefit payment, your benefits will automatically be paid in the 5 Year Certain and Life Benefit form. This form provides for a monthly benefit payable to you equal to your Accrued Benefit for the remainder of your lifetime (adjusted for Early or Late Retirement, if applicable.) If your death should occur before you have received sixty monthly payments, your benefit will be continued to your beneficiary until the total monthly payments made to you and your beneficiary combined equal sixty. Joint and 50 Percent Survivor Benefit If, at the time your Normal, Early or Late Retirement Benefits or Disability Benefits commence, you are legally married, and unless you elect in writing with the written consent of your spouse to receive your monthly benefits in an optional form, benefits will automatically be paid in the Joint and 50 Percent Survivor Benefit form. This form provides for the payment of a reduced monthly benefit to you for your remaining lifetime with 50% of such reduced benefit payable to your spouse upon your death, if she survives you, for the remainder of her lifetime. The amount payable will be the actuarial equivalent of the 5 Year Certain and Life Benefit, based on the respective ages of you and your spouse at the time benefit payments begin. If your spouse should predecease you after benefit payments have begun, your form of payment will automatically be changed to the 5 Year Certain and Life Benefit form. The Trustees will furnish to you at least 30 days prior to the date on which your retirement benefits as described above are scheduled to begin, but no more than 90 days prior to such date, a written explanation of this Joint and 50 Percent Survivor Benefit form of payment and the difference in the amount of retirement income payable under such form of payment as compared to the optional forms outlined on the following pages. During this election period, you may elect with the written consent of your spouse to waive the Joint and Survivor form in favor of an optional form, or to revoke such an election or to choose again to make such an (32)