WESTERN PENNSYLVANIA ELECTRICAL EMPLOYEES DEFERRED COMPENSATION PLAN SUMMARY PLAN DESCRIPTION. January, 2004

Transcription

1 WESTERN PENNSYLVANIA ELECTRICAL EMPLOYEES DEFERRED COMPENSATION PLAN SUMMARY PLAN DESCRIPTION January, 2004 LIT:

2 Section 1 ABOUT THIS SUMMARY PLAN DESCRIPTION The Board of Trustees is pleased to provide you with this booklet describing your benefits under the Western Pennsylvania Electrical Employees Deferred Compensation Plan. This booklet is called a Summary Plan Description. It introduces the Plan to you and answers the most frequently asked questions about it. Keep the booklet in a safe place and refer to it whenever you have questions about the Plan. If you still have questions after reading the booklet, contact the Plan Office. You may also contact the Plan Office to find out whether the Plan has been amended to change any feature described in this Summary Plan Description. The booklet is only a summary of the Plan. It does not give full details, nor does it cover all technical aspects of the Plan that may affect your right to participate in or to receive benefits under the Plan. The complete terms of the Plan are contained in the governing legal documents which establish the Plan and the related trust fund. You, your beneficiaries and your personal representatives may examine the legal plan documents during regular business hours or by appointment in the Plan Office. You can receive copies of the legal plan documents for a reasonable charge, upon written request made to the Plan Office

3 Section 2 GENERAL ADMINISTRATIVE INFORMATION 2-1 Plan Name The Western Pennsylvania Electrical Employees Deferred Compensation Plan 2-2 Type of Plan The Plan is a multiemployer profit sharing plan providing retirement, disability and death benefits. 2-3 Plan Identification Numbers The employer identification number assigned to the Plan by the Internal Revenue Service is The plan number assigned to the Plan by the Board of Trustees is Operation and Administration of the Plan The operation and administration of the Plan is the responsibility of the Board of Trustees of the Western Pennsylvania Electrical Employees Deferred Compensation Plan, with offices at 5 Hot Metal Street, Suite 301, Pittsburgh, Pennsylvania The members of Board of Trustees are as follows: Union Trustees: John Chalovich Michael P. Dunleavy Business Manager President IBEW Local Union No. 5 IBEW Local Union No. 5 5 Hot Metal Street 5 Hot Metal Street Suite 400 Suite 400 Pittsburgh, PA Pittsburgh, PA Dennis E. Eicker Vice President IBEW Local Union No. 5 5 Hot Metal Street Suite 400 Pittsburgh, PA

4 Employer Trustees: James R. Ferry James Gloekler President President Ferry Electric Company Star Electric Corporation 250 Curry Hollow Road rd Street Pittsburgh, PA Pittsburgh, PA Roger Quigley President Rome Electric P.O. Box Fifth Avenue E. McKeesport, PA The Plan is administered through the Plan Office located at Central Data Services, Inc. The address of the Plan Office is: 5 Hot Metal Street, Suite 200, Pittsburgh, Pennsylvania The office telephone number is: (412) Name and Address of Union and Employer Associations Local Union No. 5, International Brotherhood of Electrical Workers located at 5 Hot Metal Street, Suite 400, Pittsburgh, Pennsylvania , representing the employees. The Western Pennsylvania Chapter, Incorporated, National Electrical Contractors Association located at 5 Hot Metal Street, Suite 301, Pittsburgh, Pennsylvania , representing the most significant group of employers. Upon written request, participants and beneficiaries may receive information from the Plan Office as to whether a particular employer or employee organization is a sponsor of the Plan and, if the employer or employee organization is a plan sponsor, the sponsor's address. 2-6 Collective Bargaining Agreements and Contributions Parties to the Collective Bargaining Agreement relating to the Plan are Local No. 5, International Brotherhood of Electrical Workers and the contributing employers who are either parties represented by the Western Pennsylvania Chapter, Incorporated, National Electrical Contractors Association or parties by direct representation. The Collective Bargaining Agreement contains provisions providing for the rate of employer contributions to the Deferred Compensation Trust Fund. A copy of the Collective Bargaining Agreement is available from the Plan Office. A copy is also available for examination by participants and beneficiaries at the offices of Local Union No. 5, International Brotherhood of Electrical Employees

5 2-7 Funding Medium The Western Pennsylvania Electrical Employees Deferred Compensation Fund is the funding medium used to accumulate assets and through which benefits are provided. 2-8 Plan's Fiscal Year January 1 - December Legal Counsel Jeffrey J. Leech, Esquire Tucker Arensberg, P.C One PPG Place Pittsburgh, Pennsylvania Agent for Service of Legal Process The Plan's legal counsel is designated as agent for service of legal process upon the Plan. Legal process may also be served upon any Plan Trustee

6 Section 3 BECOMING A PARTICIPANT IN THE PLAN 3-1 Eligibility Requirements You are eligible to participate in the Plan if you work within the territorial jurisdiction of Local Union No. 5 and your work is covered by a collective bargaining agreement which requires contributions to be made by your employer to the Deferred Compensation Fund. You may also be eligible to participate in the Plan if your work is not covered by a collective bargaining agreement but your employer signs a participation agreement with the Trustees which requires your employer to make contributions to the Deferred Compensation Fund on your behalf. This category includes persons employed by the Union. 3-2 When You Become A Participant You will enter the Plan as a participant as of the first date upon which you perform service with an employer in Covered Employment. "Covered Employment" means work for which you are paid or entitled to be paid by your employer and for which your employer is obligated to make contributions to the Deferred Compensation Fund on your behalf. You are not required to receive credit for any minimum period of service in Covered Employment in order to enter the Plan. There is no minimum age requirement to enter the Plan. 3-3 Restrictions On Participation You will not be eligible to participate in the Plan if you were at any time covered by a terminated retirement plan (other than a multiemployer plan) funded by your employer if the contributions or benefits which may be provided to you under the terminated plan and under this Plan exceed certain maximum limits imposed by federal law. If your work for the employer is not covered by a collective bargaining agreement, you may be ineligible to participate in the Plan unless your employer can meet certain coverage requirements imposed by the Internal Revenue Code. If you think that either or both of these special situations may apply to you, contact the Plan Office for more information

7 Section 4 FUND CONTRIBUTIONS/ PARTICIPANT ACCOUNTS 4-1 Employer Contributions Each contributing employer is obligated to contribute to the Deferred Compensation Fund the amounts specified in the Collective Bargaining Agreement(s) between the employer and the Union, or specified in other written agreements with the Union or the Trustees, as they may be negotiated from time to time. 4-2 Participant Contributions No contributions are allowed to be made by or accepted from Participants. You can participate in the Plan without any out-of-pocket expense on your part. 4-3 Rollover Contributions If you receive, or are eligible to receive, a distribution from a tax-qualified pension or profit sharing plan that is eligible for tax-fee rollover to a tax-qualified plan, you may contribute that distribution to the Deferred Compensation Fund as a rollover contribution. However, you may not rollover any property you may be eligible to receive in that distribution. To make a rollover contribution, you must satisfactorily demonstrate that the distribution you receive, or are eligible to receive, satisfies the requirements of the Internal Revenue Code for tax-free rollover. Any rollover contribution you make will be credited to your (applicable) Individual Account and will be available for distribution in accordance with the regular provisions of the Plan for the distribution of Plan benefits. 4-4 Participant Accounts Employer contributions made to the Deferred Compensation Fund on your behalf will be credited to Individual Accounts maintained on your behalf under the Deferred Compensation Fund. You may have two Individual Accounts: Employer Contribution - Money Purchase Account; and Employer Contribution - Profit Sharing Account

8 The Money Purchase Account is credited with Employer Contributions for your Covered Employment completed before January 1, The Profit Sharing Contribution Account is credited with Employer Contributions for Covered Employment completed on and after January 1, Even though two Accounts are maintained for the Employer Contributions, there are no differences between the Accounts, except for your right to receive a Supplemental Unemployment Benefit Withdrawal (Section 5-7 below) and an In-Service Withdrawal (Section 5-8 below) from the Profit Sharing Account. If you have a Money Purchase Account and a Profit Sharing Account, and if you are entitled to receive a distribution from both Accounts that is less than the total value of the Accounts, distributions will be made first from your Money Purchase Account and then from your Profit Sharing Account. 4-5 Investment of Participant Accounts Individual Investment Funds managed by PNC Bank have been established under the Deferred Compensation Fund for the investment of your Individual Accounts. You are provided with a list and description of the Investment Funds when you become a Participant in the Plan. The decision on how to invest your Individual Accounts is solely your own. You may elect to invest in any one Investment Fund, or in any combination of Investment Funds. You should carefully review the prospectus or investment fund description for each Investment Fund to determine the investment alternative that best meets your objectives. If you wish, you may consult a professional investment advisor. 4-6 Investment Elections When you first participate in the Plan, you are provided with instructions on how to make your initial investment election for the employer contributions to be made to the Plan on your behalf. Until you make your initial investment election, you are deemed to have elected to have all of your contributions invested in the default investment fund. Your initial investment election will remain in effect until changed by you. You may at any time: change your investment election for the future employer contributions to be made on your behalf; and/or transfer (or reallocate) the money already invested in one of the Investment Funds. All investment elections, changes and transfers are made by calling the PNC Bank Vested Interest Response Line at , or by logging onto the PNC Advisors WEB site at

9 You will need your Personal Identification Number (PIN) to make any transactions through the PNC Bank Vested Interest Response Line or the PNC Advisors WEB site. If you do not have or remember your PIN, please call the PNC Bank Vested Interest Response Line. In the event of your death, your beneficiary may elect to transfer (or reallocate) the money already invested in the Investment Funds

10 Section 5 PLAN BENEFITS 5-1 Distributions of Plan Benefits if: You will be entitled to a distribution(s) of plan benefits from your Individual Accounts You retire and leave Covered Employment at or after age 60; or You leave Covered Employment before reaching age 60 because of a Total Disability. (A "Total Disability" is a medically determinable physical or mental impairment for which you receive a Social Security disability award.); or After a period of 6 consecutive full calendar months (12 consecutive full calendar months before February 1, 2004), no Employer Contributions have been or should have been made to the Deferred Compensation Fund on your behalf. Your benefits will begin after the Trustees approve your application for benefits submitted on an application form available from the Plan Office. The plan benefits will be based upon the value of your Individual Accounts on the processing date for the distribution. The Internal Revenue Code requires that information regarding your application and distribution elections be provided to you no less than 30 days before the date of distribution and that you be given a 30-day period to consider this information. You may waive your right to a 30-day period by applying for benefits within this 30-day period. However, distribution cannot be made during the seven-day period following the date you are provided with this information. The Internal Revenue Code also requires that this information be provided to you no more than 90 days before the date of distribution. Thus, if after you are provided with the information, you do not then file your application for benefits early enough to permit the distribution of benefits within 90 days of the date you are provided with the application, you will have to be provided with the information again and reapply for the distribution. Under the Internal Revenue Code, the distribution of your benefits must begin by April 1 of the year after the year in which you reach age 70 ½ (or if later, April 1 of the year after the year in which you retire), whether or not you apply for your benefits

11 5-2 Forms of Benefit - Unmarried Participants If you are not married when your benefits are scheduled to begin, you may elect to have the balance of your Individual Accounts distributed in the following forms of benefit: a total lump sum payment of your entire balance; a partial lump sum payment of at least $1,000, but only before the calendar year in which you attain age 70½ and not more frequently than every three months; payment in monthly installments over a period of five years; or the purchase of an immediate Single Life Annuity, under which an insurance company will pay you equal monthly payments for your life, with the last payment made in the month in which your death occurs. [NOTE: If the balance of your Individual Accounts does not exceed $5,000, your benefits will be distributed to you only in a total lump sum payment.] 5-3 Forms of Benefit - Married Participants If you are married when your benefits are scheduled to begin, you may elect to have the balance of your Individual Accounts distributed in the following forms of benefit: a total lump sum payment of your entire balance; a partial lump sum payment of at least $1,000, but only before the calendar year in which you attain age 70½ and not more frequently than every three months; payment in monthly installments over a period of five years; the purchase of an immediate Single Life Annuity, under which an insurance company will pay you equal monthly payments for your life, with the last payment made in the month in which your death occurs; or the purchase of an immediate Qualified Joint and Survivor Annuity, under which an insurance company will pay you equal monthly payments for your life, and upon your death, will pay your spouse (to whom you were married when benefits began) monthly payments for life equal to 50% of the monthly amount paid to you during your lifetime. [NOTE: If the balance of your Individual Accounts does not exceed $5,000, your benefits will be distributed to you only in a total lump sum payment.]

12 5-4 Electing Your Form of Benefit Payment You elect a form of benefit on the benefit application form filed with the Plan Office. Your election of a form of benefit is irrevocable after payment begins or has been made. However, if you elect the partial lump sum payment, you may thereafter elect any available form of benefit for the remaining balance of your Individual Accounts, including another partial lump sum payment. If you are married and elect a form of benefits other than a Qualified Joint and Survivor Annuity, your spouse's notarized written consent is required for the election. 5-5 Distribution in Monthly Installments If you elect the monthly installment form of benefit, the balance of your Individual Accounts will be paid in monthly installments over a five-year period. Your Individual Accounts will continue to be adjusted for earnings, gains, losses and expenses during the five-year period. As a result, payments could stop before the end of the five-year period if the entire balance of your Individual Accounts is distributed before then. The amount of each monthly installment paid during a year will be determined by (1) dividing the balance of your Individual Accounts at the beginning of the year by the number of years left for the payment of the installments to determine the total amount payable for that year, and (2) dividing the annual amount payable for the year by twelve to determine the amount of each monthly installment payable for the year. This is done at the beginning of each year of payment. (Note that the final installment in the final year of payment can be higher or lower depending upon the adjustments made to your Individual Accounts.) For example, the balance of your Individual Accounts is $75,000 at the beginning of the five-year period. For the first year, the total amount payable for the year is $15,000 ($75,000 5), and the amount of each monthly installment paid for that year is $1,250 ($15,000 12). If your Individual Accounts earn $6,000 during the first year of installments, the balance of your Individual Accounts at the beginning of the second year would be $66,000 ($75,000 + $6,000 - $15,000). Thus, for the second year, the total amount payable for the year is $16,500 ($66,000 4), and the amount of each monthly installment paid that year is $1,375 ($16,500 12). This would continue for the next three years (or if earlier, until the entire balance of your Individual Accounts is distributed). When you elect the monthly installment form of benefit, you must separately designate a beneficiary to receive any remaining balance in your Individual Accounts in the event you die before all of the installments have been made. If you are married, your spouse's written notarized consent is required for this beneficiary designation. Your spouse's written notarized consent is also required for any future changes you may make to this beneficiary designation

13 5-6 Direct Rollover/Payment Election for Lump Sum Payment and Monthly Installments If the balance of your Individual Accounts is distributed in the form of a total lump sum payment or a partial lump sum payment, on the benefit application form, you also elect to have the distribution made by direct payment to you and/or by direct rollover to an individual retirement account or an eligible employer plan. If made by direct payment to you, the distribution will be subject to 20% mandatory federal income tax withholding. If the balance of your Individual Accounts is distributed in the form of monthly installments, on the benefit application form, you also elect to have the distribution of each installment made by direct payment to you and/or by direct rollover to an individual retirement account or an eligible employer plan. You may change this election at any time for future monthly installments. Any monthly installments distributed by direct payment to you will be subject to 20% mandatory federal income tax withholding. 5-7 Supplemental Unemployment Benefit Withdrawals Beginning with the date your Profit Sharing Account is first credited with $5,000 of employer contributions (for Covered Employment you work on and after January 1, 2000), a Supplemental Unemployment Benefit (SUB) Withdrawal will be available under the Plan. You are eligible to receive a SUB Withdrawal from your Profit Sharing Account for a work week in which you are not actively at work in Covered Employment if: you have satisfied the registration and reporting requirements of the state employment office; and you are available for work in Covered Employment as shown on the Union work list; and you present evidence of your receipt of state unemployment benefits for that work week and the prior work week (or alternatively, you present evidence that you have exhausted state unemployment benefits or have not yet completed sufficient employment in order to be eligible for state unemployment benefits). However, you will not be eligible for a SUB Withdrawal if: you are eligible for a distribution of benefits from your Individual Accounts because of your retirement, disability or termination of Covered Employment; or you have failed to report for work in Covered Employment since your last period of Covered Employment; or

14 you have declined a job referral for work in Covered Employment since your last period of Covered Employment. If you meet the above eligibility requirements, you may apply for and receive a weekly $250 SUB Withdrawal from your Profit Sharing Account. All distributions will be made in a lump sum payment and will be subject to the direct rollover/payment election rules discussed in Section 5-6 above. Thus, when paid directly to you, $200 will be paid to you, and $50 will be withheld and sent to the IRS as federal income tax withholding. A maximum of 26 weekly SUB Withdrawals may be paid in any 52 rolling week period. Also, a weekly SUB Withdrawal will be paid only from your Profit Sharing Account (maintained for the employer contributions made for Covered Employment you work on and after January 1, 2000). You must apply for the SUB Withdrawal on an application form available from the Plan Office. Payment will be made as soon as your application is approved. Once payment is made for a work week, payments for subsequent work weeks will continue to be made without application so long as you continue to satisfy the above eligibility requirements, except that you do not need to re-present evidence of your receipt of your state unemployment benefits (or your exhaustion or ineligibility for the benefits). However, the Plan Office can ask you to verify your eligibility for continuing SUB Withdrawals at any time. If you refuse to verify your eligibility, your right to receive a SUB Withdrawal can be suspended or forfeited. 5-8 In-Service Withdrawals Beginning February 1, 2004, you are eligible to receive an In-Service Withdrawal from your Profit Sharing Account (maintained for the Employer Contributions made for Covered Employment you work on and after January 1, 2000) if: you are not eligible for a distribution of benefits from your Individual Accounts because of your retirement, disability or termination of Covered Employment; and Employer Contributions have been or should have been made (before or after February 1, 2004) to the Deferred Compensation Fund on your behalf for a total of at least 60 (consecutive or nonconsecutive) calendar months. You may make one In-Service Withdrawal each calendar year quarter, and each In-Service Withdrawal must be at least $1,000. Currently, there is no specific administrative fee for an In-Service Withdrawal. If a fee is imposed in the future, the fee will be charged against your Individual Account as a condition for the payment of the In-Service Withdrawal. You must apply for the In-Service Withdrawal. Application forms are available from the Plan Office. The In-Service Withdrawal will be paid after the Trustees approve your

15 application. However, payment cannot be made during the seven-day period following the date you are provided with information regarding your application and elections. If single, you may elect to have the In-Service Withdrawal paid in a lump sum payment or by the purchase of an immediate Single Life Annuity from an insurance company. If married, you may elect to have the In-Service Withdrawal paid in a lump sum payment or by the purchase of an immediate Qualified Joint and Survivor Annuity from an insurance company. Your election is made on the application form filed with the Plan Office. If you are married and elect a lump sum payment, your spouse's notarized written consent is required for the election. However, whether you are single or married, if the balance of your Individual Accounts does not exceed $5,000, your In-Service Withdrawal will be paid only in a lump sum payment. A lump sum payment of the In-Service Withdrawal is subject to the direct rollover/payment rules discussed in Section 5-6 above. Thus, you may elect to have the In-Service Withdrawal made by direct payment to you and/or by direct rollover to an individual retirement account or an eligible employer plan. If made by direct payment to you, the lump sum payment will be subject to 20% mandatory federal income tax withholding. If you are under age 59½, the direct payment will be subject to an additional 10% income tax, unless one of the limited exceptions of the Internal Revenue Code applies. 5-9 Distribution of Small Accounts Your Individual Accounts will be distributed to you in a total lump sum payment without your application following the first day of any calendar month if: your Individual Accounts are otherwise distributable to you under the terms of the Plan; the balance of your Individual Accounts does not exceed $5,000; and no Employer Contributions have been or should have been made to the Deferred Compensation Fund on your behalf for the preceding 12 consecutive calendar months. A determination of whether a distribution is due under this provision will be made at the beginning of each calendar month, beginning with February 1, If a distribution is due, the distribution will be made as soon as practicable after the first day of the calendar month. For the February 1, 2004 distribution, the 12-month period used to determine the receipt of no Employer Contributions will be Each later distribution will use the 12 consecutive calendar month period ending on the day before the first day of the calendar month used for the distribution

16 For example, the March 1, 2004 distribution will use March 1, 2003 to February 29, 2004 as the 12-month period. Therefore, if the balance of your Individual Accounts is not more than $5,000 and otherwise distributable under the terms of the Plan, the balance would be distributed to you as soon as practicable after March 1, 2004 if no Employer Contributions have been or should have been made to the Deferred Compensation Fund on your behalf for March 1, 2003 to February 29, If you are to receive a distribution under this provision, except for amounts that are less than the minimum amount specified by the IRS for the election (currently $200), you will be provided with an opportunity to elect a direct rollover for this distribution as described in Section 5-6 above. If you do not make a direct rollover election by the date specified for the election, the distribution will be made by direct payment to you, and 20% mandatory federal income tax withholding will apply Participant Loans The Plan does not permit participant loans

17 Section 6 DEATH BENEFITS 6-1 Death Benefit If you die before your benefit payments from the Plan begin, your beneficiary will be eligible to receive a distribution of the balance of your Individual Accounts. If you have received only a partial lump sum payment, your beneficiary will be eligible to receive a distribution of the remaining balance of your Individual Accounts. The distribution to your beneficiary will be made after the Trustees approve your beneficiary's application for benefits submitted on an application form available from the Plan Office. However, under the Internal Revenue Code, regardless of whether application is made: if your spouse is the beneficiary to receive the death benefit, the distribution must begin or be made by the end of the calendar year in which you would have attained age 70½ (or if you die in that calendar year, by the end of the following calendar year); and if a beneficiary other than your spouse is to receive the death benefit, the distribution must be made in a lump sum payment by the end of the calendar year in which falls the fifth anniversary of your death, unless your spouse applies to have distribution in monthly installments begin by the end of the calendar year following the calendar year of your death. 6-2 Forms of Benefit - Spouse Beneficiary If your surviving spouse is the beneficiary to receive the death benefit, your spouse may elect to have the balance of your Individual Accounts distributed in one of the following forms of benefit: a lump sum payment of the balance; payment in monthly installments over a period of five years; or the purchase of a Single Life Annuity (under which an insurance company will pay your spouse equal monthly payments for your life, with the last payment made in the month in which your spouse's death occurs). [NOTE: If the balance of your Individual Accounts does not exceed $5,000, the benefits payable to your surviving spouse because of your death will be distributed only in a lump sum payment.]

18 6-3 Forms of Benefit - Non-spouse Beneficiary If a beneficiary other than your spouse is to receive the death benefit, the beneficiary may elect to have the balance of your Individual Accounts distributed in one of the following forms of payment: a lump sum payment of the balance; or payment in monthly installments over a period of five years. A beneficiary who is not your spouse must elect the monthly installment form of benefit no later than the end of the calendar year following the calendar year of your death. [NOTE: If the balance of your Individual Accounts does not exceed $5,000, the benefits payable to your beneficiary because of your death will be distributed only in a lump sum payment.] 6-4 Distribution in Monthly Installments If your beneficiary elects the monthly installment form of benefit, the balance of your Individual Accounts will be paid to the beneficiary in monthly installments over a five-year period. Your Individual Accounts will continue to be adjusted for earnings, gains, losses and expenses during the five-year period. As a result, payments could stop before the end of the five-year period if the entire balance of your Individual Accounts is distributed before then. The amount of each monthly installment paid during a year will be determined by (1) dividing the balance of your Individual Accounts at the beginning of the year by the number of years left for the payment of the installments to determine the total amount payable for that year, and (2) dividing the annual amount payable for the year by twelve to determine the amount of each monthly installment payable for the year. This is done at the beginning of each year of payment. (Note that the final installment in the final year of payment can be higher or lower depending upon the adjustments made to your Individual Accounts.) For example, the balance of your Individual Accounts is $75,000 at the beginning of the five-year period. For the first year, the total amount payable for the year is $15,000 ($75,000 5), and the amount of each monthly installment paid for that year is $1,250 ($15,000 12). If your Individual Accounts earn $6,000 during the first year of installments, the balance of your Individual Accounts at the beginning of the second year would be $66,000 ($75,000 + $6,000 - $15,000). Thus, for the second year, the total amount payable for the year is $16,500 ($66,000 4), and the amount of each monthly installment paid that year is $1,375 ($16,500 12). This would continue for the next three years (or if earlier, until the entire balance of your Individual Accounts is distributed)

19 6-5 Direct Rollover/Payment Election for Spouse Beneficiary If your spouse is to receive the death benefit in a lump sum payment, when your spouse applies for distribution of the death benefit, your spouse elects to have the distribution made by direct payment to your spouse and/or by direct rollover to your spouse's individual retirement account or an eligible employer plan. If made by direct payment to your spouse, the distribution will be subject to 20% mandatory federal income tax withholding. If your spouse is to receive the death benefit in monthly installments, when your spouse applies for distribution of the death benefit, your spouse elects to have the distribution of each installment made by direct payment to your spouse and/or by direct rollover to your spouse's individual retirement account or an eligible employer plan. Your spouse may change this election at any time for future monthly installments. Any monthly installments distributed by direct payment to your spouse will be subject to 20% mandatory federal income tax withholding. 6-6 Distribution of Small Accounts Following your death, the balance of your Individual Accounts will be distributed to your beneficiary in a total lump sum payment without your beneficiary's application following the first day of any calendar month if: the Individual Accounts are otherwise distributable to beneficiary under the terms of the Plan; and the balance of your Individual Accounts does not exceed $5,000. A determination of whether a distribution is due will be made at the beginning of each calendar month, beginning with February 1, If a distribution is due, the distribution will be made as soon as practicable after the first day of the calendar month. In such case, except for amounts that are less than the minimum amount specified by the IRS for the election (currently $200), if your beneficiary is your spouse, your spouse will be provided with an opportunity to elect a direct rollover for this distribution as described in Section 6-5 above. If your spouse does not make a direct rollover election by the date specified for the election, the distribution will be made by direct payment to your spouse, and 20% mandatory federal income tax withholding will apply. If your beneficiary is not your spouse, your beneficiary will not be eligible to make a direct rollover, and the distribution will be paid directly to your beneficiary. The 20% mandatory federal income tax withholding does not apply to this distribution

20 6-7 Your Beneficiary Selecting a death benefit beneficiary or beneficiaries (and keeping that beneficiary designation up to date) is one of the most important duties that you have as a Participant. You should designate a primary beneficiary (or beneficiaries) to receive the death benefit. You may also designate a contingent beneficiary (or beneficiaries) to receive the death benefit in the event your primary beneficiary (or beneficiaries) dies prior to you. When you join the Plan, the Plan Office will provide you with the beneficiary designation form required to designate a beneficiary or beneficiaries. Before any payment(s) of your benefits begin, you may change your beneficiary designation at any time and as many times as you wish by filing another beneficiary designation form. If you are married, your spouse is automatically your sole primary beneficiary under the terms of the Plan. By filing the beneficiary designation form, you may designate a different or another primary beneficiary at any time. If you designate a non-spouse primary beneficiary before January 1 of the year in which you reach age 35, your designation will expire on January 1 of the year in which you reach age 35. At that time, your spouse will automatically be reinstated as your sole primary beneficiary to receive the death benefit. If, at that time, you still want someone other than, or in addition to, your spouse to receive the death benefit, you must file another beneficiary designation form designating a different or another primary beneficiary. If you wish to designate someone other than, or in addition to, your spouse as your primary beneficiary, your spouse must consent in writing to your beneficiary designation. Your spouse's written consent is also required for any future changes you make to this designation. Your spouse's consent must be notarized. If your spouse consents to your designation of a non-spouse primary beneficiary, and you later remarry, the consent by your prior spouse is not binding on your current spouse, and a new spousal consent must be obtained for your designation of a non-spouse primary beneficiary. If you are not married when designate a beneficiary, and you later marry, your designation of a primary beneficiary other than your spouse will not be effective unless your spouse consents to the designation. If you are married and have designated your spouse as your beneficiary, your later divorce will not revoke or change your beneficiary designation. In such case, your former spouse will continue to be your beneficiary until you change your beneficiary designation by filing another beneficiary designation form. The consent of your former spouse will not be required in such case, except to the extent required by a qualified domestic relations order. If there is no primary or contingent beneficiary at your death, a beneficiary will be designated for you under the terms of the Plan in the following order: (1) spouse; (2) children; (3) parents; or (4) your estate or any testamentary or other trust you created. You may obtain the forms required to designate your beneficiary or beneficiaries and to secure spousal consent from the Plan Office upon request and without charge

21 6-8 Death of Your Beneficiary Before Distribution After your death, your designated beneficiary entitled to receive the death benefit under the Plan may designate his or her own beneficiary to receive distribution of the death benefit in the event he or she dies before distribution of the death benefit is made. If your designated beneficiary does not do so, the death benefit would be paid to your designated beneficiary's estate at his or her death. Your designated beneficiary may obtain the required form from the Plan Office

22 Section 7 MANAGEMENT OF PLAN ASSETS 7-1 The Trustees All assets of the Plan are received and held in trust in the Deferred Compensation Fund by the Board of Trustees. The current Board of Trustees is composed of six members. Three members are appointed by the Chapter and three members are appointed by the Union. The Trustees have overall responsibility for the management of the Deferred Compensation Fund. 7-2 Investment Risk The Plan is a "defined contribution plan." Individual Accounts are maintained under the Plan on your behalf to which is allocated the contributions received on your behalf, along with the investment gains and losses resulting from your investment of your Individual Accounts. As noted in "Investment of Participant Accounts," the decision on how to invest your Individual Accounts is solely your own. The Plan is intended to be a "section 404(c) plan" under the Employee Retirement Income Security Act of 1974, which means that the fiduciaries of the Plan may not have liability for any losses that are the direct and necessary result of your investment decisions. Benefits under the Plan are paid only from the value of your Individual Accounts. The value of your Individual Accounts reflects investment gains and losses, and there is no guarantee for the value of your Individual Accounts. 7-3 Account Values The value of your Individual Accounts is adjusted by: adding the contributions made on your behalf; adding and subtracting (realized and unrealized) investment earnings and losses; and subtracting distributions and any chargeable administration or investment fees. You will receive personal statements of the value of your Accounts. These statements will show the amount of the contributions received on your behalf under the Plan and the investment performance of your Accounts

23 Section 8 CLAIMS 8-1 Filing for Benefits If you wish to claim benefits under the Plan, you must complete and return an application which will be provided to you by the Plan Office. In most cases, written notice of the disposition of your claim will be furnished to you within 90 days after receipt of the claim. If special circumstances require an extension of time for processing your claim, written notice of an extension of up to an additional 90 days will be sent to you before the initial 90-day period expires. The notice of extension will refer to the special circumstances which make an extension necessary and will contain the date by which the Plan expects to render the final decision on your claim. 8-2 Disputed Claims If you apply for a benefit under the Plan, and are denied a benefit in whole or in part, you have the right to have that benefit denial reviewed by the Board of Trustees. You must, however, follow the procedure described below. If you have any questions about the claims procedure, please contact the Plan Office immediately. 8-3 Disputed Claims Procedure Claimants will be notified in writing by the Plan Office of any full or partial denial of a benefit. The notification will include (1) a statement of why the claim has been denied, (2) information as to the documentation or evidence that the claimant may provide to permit the Trustees to reevaluate the claim (such as evidence of disability or death), and (3) reference to the Plan provisions upon which the denial was based. In addition, the notification will contain such other information as is required by regulations issued by the U.S. Secretary of Labor, and such additional information as is deemed appropriate by Plan Office. If you wish to appeal the decision to deny your claim for benefits, you begin your appeal by sending a letter to the Plan Office requesting a review and stating why you think your claim should not have been denied. Your appeal letter must include any additional information, documents, data or comments you think have a bearing on your claim. Your letter may also include a request to make an oral presentation to the Board of Trustees in support of your appeal. IMPORTANT: YOUR APPEAL MUST BE FILED WITH THE PLAN OFFICE WITHIN 90 DAYS AFTER YOU RECEIVE NOTICE FROM THE PLAN OFFICE OF THE DENIAL OF YOUR CLAIM. OTHERWISE, YOU WILL GENERALLY FORFEIT YOUR

24 RIGHT TO HAVE YOUR CLAIM FOR BENEFITS REVIEWED BY THE BOARD OF TRUSTEES OR TO FILE A LAWSUIT IN COURT FOR THE BENEFITS. In preparing your appeal, you or your authorized representative will have the right to examine documents that relate to your claim and to receive copies free of charge. To examine or receive copies of documents related to your claim, contact the Plan Office. The Board of Trustees will review all of the facts and evidence on which the original decision to deny benefits was based. The Trustees will also review any additional information or evidence you have provided with your appeal. The Trustees may, but are not required to, honor your request to make an oral presentation to the Board of Trustees in support of your appeal. If the Trustees grant your request for an opportunity to make an oral presentation, an authorized representative may make the oral presentation on your behalf. The Board of Trustees will make a decision on your appeal by the date of the first meeting of the Board of Trustees which follows the receipt by the Plan Office of your appeal letter, provided that your appeal letter is received by the Plan Office at least 30 days before the Trustees' meeting. For appeals filed within 30 days of a Trustees' meeting, the Trustees will make a decision on appeal by the date of the second Trustees' meeting which follows the receipt of the appeal letter by the Plan Office. If special circumstances (such as the need to hold a hearing) require further extension of time for processing your appeal, the Trustees' decision will be made not later than the third meeting of the Board of Trustees following the receipt of your appeal letter. If the Trustees need an extension of time to process your appeal, you will be sent a written notice of extension prior to the commencement of the extension. The Trustees will issue a written decision on your appeal. If adverse, the written decision will include specific reasons for the decision and specific references to the Plan provisions on which the decision is based. You will be sent a copy of the Trustees' written decision within 5 days after the date of the Trustees' meeting at which the decision is made. 8-4 Court Appeals The Board of Trustees have full authority and discretion to interpret and apply all the terms and conditions of the Plan and the Deferred Compensation Fund, to determine eligibility for benefits, and to resolve all factual and legal issues concerning the Plan, the Deferred Compensation Fund and benefits. The Board of Trustees' good faith decisions are final and binding on all persons. Federal law generally requires that you follow the Plan's administrative claims procedures and claims review procedures as outlined above before you can sue the Plan in court for benefits. In reviewing the decision of the Board of Trustees on your claim, a court may decide to overturn the Board of Trustees' decision only if it is found to be an abuse of discretion

25 8-5 Representatives You may designate a duly authorized representative to file an application for benefits on your behalf and/or to appeal a benefit denial to the Board of Trustees on your behalf. You will generally be required to provide a written statement of the designation, along with an authorization to release information to your representative. 8-6 Spouses and Beneficiaries The above claims and appeals procedures apply to your surviving spouse or other surviving designated beneficiary(ies) who wish to file a claim for benefits under the Plan upon your death

26 Section 9 QUALIFIED DOMESTIC RELATIONS ORDERS 9-1 Definition A "Qualified Domestic Relations Order" is a judgment, decree or order (including approval of a property settlement agreement) which relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child or other dependent of a Participant, which is made pursuant to a state domestic relations law (including community property laws), and which meets a series of specific criteria set forth in both the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. 9-2 Procedure If the Plan receives an instrument that purports to be a Qualified Domestic Relations Order affecting your interest in the Plan, you will be notified, and you will be provided with a copy of the Plan's established procedures for determining whether or not the instrument constitutes a "Qualified Domestic Relations Order". You (or your spouse or former spouse) may obtain a copy of these procedures from the Plan Office without charge, upon written request made to the Plan Office. 9-3 Effect of a Qualified Domestic Relations Order A Qualified Domestic Relations Order creates rights in a person known as an "Alternate Payee". The Alternate Payee may become entitled to any part of, or all of, your Individual Accounts under the Plan. In addition, the order may grant to a former spouse the rights normally provided to a surviving spouse under the Plan, preventing a later spouse from having full spousal rights. Under procedures adopted for Qualified Domestic Relations Orders, your eligibility to receive a distribution or withdrawal from your Individual Accounts may be suspended while a Qualified Domestic Relations Order received with respect to your Individual Accounts is being reviewed and for a reasonable period after notice has been provided that a Qualified Domestic Relations Order is being sought with respect to your Individual Accounts. Your Individual Accounts will be reduced by any segregation and/or distribution made pursuant to a Qualified Domestic Relations Order

27 Section 10 MISCELLANEOUS INFORMATION 10-1 Federal Pension Benefit Insurance The Pension Benefit Guaranty Corporation is a federal insurance agency that insures certain benefits provided by covered defined benefit pension plans. Because this Plan is a defined contribution plan with benefits provided by individual participant accounts, the benefits under the Plan are not insured by Pension Benefit Guaranty Corporation Assignment of Benefits In general, your benefits are not assignable by you or your spouse or other designated beneficiary and may not be encumbered prior to receipt. However, there are certain exceptions to this rule. For example, the honoring of a Qualified Domestic Relations Order or certain tax liens does not constitute a violation of this rule Loss of Benefits The most common ways to lose benefits under the Plan include loss due to adverse investment experience, the operation of current or future limitations of the Internal Revenue Code, and the application of a qualified domestic relations order or of a tax lien Plan Amendment, Modification or Discontinuance The Board of Trustees has the right to amend, suspend, and terminate the Plan and its corresponding Deferred Compensation Fund at any time and generally for any reason. Upon plan termination, no further contributions will be made. Plan assets will remain invested until distributed, and the investment gains and losses will continue to be allocated to the Individual Accounts. Plan benefits to be paid by reason of plan termination will be distributed as soon as practicable after winding up and liquidation of the Deferred Compensation Fund. Distribution generally will be made by the purchase of an annuity contract from an insurance company or by distribution of Individual Accounts. The Deferred Compensation Fund will be the sole source of benefits Provision of Information to Trustees It is the responsibility of every Participant, Spouse and Beneficiary to furnish, at the request of the Trustees, any evidence reasonably required for the administration of the Plan. Some examples include furnishing proof of death of a Participant by a person claiming rights to survivor or death benefits, or supplying proof of marriage or divorce. Failure to