PORTLAND CEMENT ASSOCIATION RETIREMENT PLAN SUMMARY PLAN DESCRIPTION

Transcription

1 PORTLAND CEMENT ASSOCIATION RETIREMENT PLAN SUMMARY PLAN DESCRIPTION January 2003

2 SUMMARY DESCRIPTION PORTLAND CEMENT ASSOCIATION RETIREMENT PLAN TABLE OF CONTENTS Page SECTION 1 IDENTIFICATIONS...1 SECTION 2 DEFINITIONS...2 Hours of Employment...2 Service...2 Credited Service...3 Break in Service...3 SECTION 3 EMPLOYEES ELIGIBLE TO PARTICIPATE...4 SECTION 4 PARTICIPATION...4 SECTION 5 CONTRIBUTIONS...5 Employer Contributions...5 Employee Contributions...5 SECTION 6 PENSION BENEFITS...5 Normal Retirement...5 Termination of Employment Prior to Normal Retirement...6 Retirement or Termination of Employment Prior To January 1, Retirement Pension for Disabled Former Employee...7 Benefit Accrued As of July 10, No Other Pensions Under Plan...7 SECTION 7 FORM OF PENSION BENEFITS...7 Single Life Annuity Form...8 Qualified Joint and Survivor Annuity Form...8 Optional Pension Forms...8 Actuarial Adjustments for Pensions Commencing Before Age i-

3 Election of Optional Pension Forms...9 Small Benefits Paid in a Lump Sum...9 SECTION 8 SURVIVOR PENSIONS...9 Survivor Pension If You Die While Employed After Your Normal Retirement Date...9 Statutory Survivor Pension...10 Small Survivor Pensions Paid in a Lump Sum...10 SECTION 9 REEMPLOYMENT OF TERMINATED OR RETIRED EMPLOYEES...10 SECTION 10 EVENTS WHICH MAY RESULT IN INELIGIBILITY TO PARTICIPATE OR DENIAL, LOSS, FORFEITURE OR SUSPENSION OF BENEFITS...11 SECTION 11 CLAIMS PROCEDURE...11 SECTION 12 MISCELLANEOUS...12 Assignability...12 Limitation on Right to Trust Assets...12 Amendment and Termination of the Plan...12 Plan Insured by the Pension Benefit Guaranty Corporation...12 Top-Heavy Requirements...13 SECTION 13 STATEMENT OF ERISA RIGHTS ii-

4 SECTION 1 IDENTIFICATIONS Name of Plan (the Plan )... Portland Cement Association Retirement Plan Plan Sponsor... Portland Cement Association 5420 Old Orchard Road Skokie, Illinois (847) Employer Identification Number of the Association Plan Administrator... Portland Cement Association 5420 Old Orchard Road Skokie, Illinois (847) Trustees... Jeffrey L. Garrett Brian A. McCarthy James F. Rappel 5420 Old Orchard Road Skokie, Illinois (847) Agent for Service of Legal Process... Plan Number Plan Administrator Portland Cement Association 5420 Old Orchard Road Skokie, Illinois (Service of legal process may also be made upon any plan trustee.) Type of Plan... Defined Benefit Pension Plan Plan Year-End... December 31 Type of Administration... The Plan is administered by a Plan Administrator appointed by the board of directors of the Association. Funding Arrangement... The Plan is funded by contributions made by the Association, Construction Technology Laboratories, Inc., Cement and Concrete Promotion Council of Texas, Rocky Mountain

5 Cement Promotional Council, Inc., Southeast Cement Shippers Association, California Cement Promotion Council, North Central Cement Promotion Association, Northwest Cement Producers Group, Northeast Cement Shippers Association, South Central Cement Promotion Association and any other entity which shall, with the consent of the Association, elect to participate in the Plan (the Employers ). The Employers make contributions to a trust established pursuant to an agreement between the Association and the Trustees and are held and invested under the terms of the trust until used to pay benefits under the terms of the Plan. This summary description of the Plan merely summarizes the Plan s principal provisions. It is not the Plan document. If there is any conflict between the provisions of the Plan document and the trust and this summary description, the provisions of the Plan document and the trust will be controlling. A copy of the Plan document and trust, as well as all documents filed by the Plan Administrator with the U.S. Department of Labor, are available as described in Section 13. SECTION 2 DEFINITIONS The following terms are used throughout this summary plan description. It is very important that you understand these terms because they pertain directly to the calculation of your pension under the Plan and your entitlement to a pension. Hours of Employment You will be credited with one Hour of Employment for each hour for which you are paid by an Employer for the reasons set below: (i) the performance of services; or (ii) reasons other than the performance of services (such as paid holidays, vacations, sick leave, disability leave, layoff, jury duty, military duty or maternity/paternity leave). However, you will not receive credit for more than 501 Hours of Employment for any continuous period during which you are paid for reasons other than the performance of services. Service 2

6 For purposes of determining when your benefits under the Plan become vested, your Service will include all periods during which you are employed by an Employer other than periods of employment prior to April 1, 1947 or your 18th birthday. In addition to periods of your actual employment, you will be treated as employed by an Employer during (i) duration, any period of absence from employment which is of less than 12 months, (ii) any period of disability, which is defined as a period of absence during which you are unable to engage in any substantial, gainful activity by reason of any physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for 12 or more continuous months, and (iii) the first 12 months of any period of absence for any reason other than your quitting, retiring, or being discharged. Your Service will be measured in whole years and fractions of a year computed to the nearest 1/12 of a year by dividing the number of days in excess of whole years by 30. Any days remaining after such division will be treated as an additional 1/12 of a year of Service. Credited Service will include: For purposes of determining the amount of your pension, your Credited Service (i) all of your periods of Service rendered in the United States (including any period of disability as described in paragraph (ii) of the section entitled Service above, but excluding any period described in paragraphs (i) and (iii) in such section) and (ii) all of your periods of Service rendered outside the United States prior to January 1, 1973 if during those periods you were covered under United States social security laws. Your Credited Service will exclude, however, any periods of employment prior to your 18th birthday. Your Credited Service will be measured in whole years and fractions of a year computed to the nearest 1/12 of a year by dividing the number of days in excess of whole years by 30. Any days remaining after such division will be treated as an additional 1/12 of a year of Credited Service. Break in Service You have a Break in Service for any period during which you are not credited with Service (as defined above). For purposes only of determining whether you have a Break in Service, you are treated as employed by an Employer for certain periods during which you are (i) on an uncompensated leave of absence, duly granted by your Employer; 3

7 (ii) in military service, provided you return to employment with an Employer within the period prescribed by laws relating to the reemployment rights of persons in military service (military service includes only service in the armed forces of the United States or any State thereof (a) on active duty in time of national or local emergency, (b) under any compulsory service law, or (c) in time of war); or (iii) absent from work for a period not exceeding 24 months due to your pregnancy, the birth of your child, adoption of a child, or the care of a child immediately following the child s birth or placement with you for adoption. You must request credit for periods of service completed under (iii) above in order to be deemed to be employed during such a period of absence. Military Service Effective December 12, 1994, service credit with respect to qualified military service will be provided as required by law. Please contact your Plan Administrator for more information. SECTION 3 EMPLOYEES ELIGIBLE TO PARTICIPATE If you are an employee of one of the Employers, you become eligible to participate in the Plan once you have completed the age and service requirements described in Section 4 below. SECTION 4 PARTICIPATION You are eligible to participate in the Plan as of the first day of the month coincident with or following the later of (a) your 21st birthday and (b) satisfaction of the eligibility service requirement. The eligibility service requirement is satisfied when you complete at least 1,000 Hours of Employment in the 12-consecutive month period which begins on your date of hire or in any plan year. If, prior to January 1, 1989, you were a participant in the Portland Cement Association Retirement Plan (1985), you are automatically a participant in this Plan as of January 1, Similarly, if, as of January 1, 1989, you have completed the age and service requirements, you are automatically a participant as of January 1, Once you become a participant, you will continue to participate until your employment is terminated. If you are a participant, your employment is terminated and you are later reemployed, you will become a participant on your date of reemployment. 4

8 SECTION 5 CONTRIBUTIONS Employer Contributions Your Employer intends to make contributions which over a period of time are intended to be sufficient to provide the benefits under the Plan. However, your Employer is not obligated to make any particular amount of contributions at any time. Employee Contributions Normal Retirement Participants are neither required nor permitted to make contributions to the Plan. SECTION 6 PENSION BENEFITS You become fully vested in your accrued pension benefit upon attaining your normal retirement date while employed by an Employer. Generally, your normal retirement date will be your 65th birthday. However, if you commenced employment with an Employer after you attained age 60, your normal-retirement date is the date you complete 5 years of Service with an Employer. If your employment is terminated on or after your normal retirement date, you will be entitled to receive a monthly pension for as long as you live. Your pension will start on the first day of the month after your termination of employment. For plan years after 1996, if you remain employed by an Employer beyond April 1 of the year following the year in which you attain age 70½, the law requires that your pension begin not later than the April 1 following your termination of employment. Assuming you terminate employment on or after your normal retirement date, your monthly pension commencing on the first day of the month following your retirement and payable for the remainder of your life only (this is called a single life annuity ) will be equal to the sum of: (1) 1% of your Final Monthly Earnings (up to Covered Compensation) multiplied by the number of your years of Credited Service (up to 35 years); plus (2) 1.5% of your Final Monthly Earnings in excess of Covered Compensation multiplied by the number of your years of Credited Service (up to 35 years). Final Monthly Earnings means 1/60 th of the aggregate of your monthly compensation for the 5 consecutive 12-month periods during which your aggregated monthly earnings were the highest during the 10 years ending at the end of the calendar month immediately preceding the calendar month in which you terminate employment with an 5

9 Employer. If you have been a participant for less than 5 years, your Final Monthly Earnings will be the average of your monthly earnings during the period you have been employed. Covered Compensation for an individual is a dollar amount determined pursuant to the federal social security laws and which is redetermined each Plan year. If you would like to know your Covered Compensation, please contact your Plan Administrator. Compensation taken into account for purposes of the Plan is your base pay, including overtime and any amounts paid to you under incentive or bonus plans, but excluding automobile allowances. Under the law, there is a dollar limit on the amount of compensation which may be taken into account under the Plan. This limit will be adjusted periodically for inflation. Please contact the Plan Administrator for more information regarding this limit. Example Assume that you were hired by your Employer on January 1, 1990 and you retired on January 1, 2010 at age 65 with 20 years of Credited Service. Also assume your Final Monthly Earnings equal $2,000 and your Covered Compensation determined on a monthly basis equals $3,750. Your monthly pension would be calculated as follows: (1) 1% multiplied by Final Monthly Earnings (up to Covered Compensation) multiplied by years of Credited Service 1% x $2,000 x 20 = $400 PLUS (2) 1.5% multiplied by Final Monthly Earnings in excess of Covered Compensation multiplied by years of Credited Service 1.5% x $0 x 20 = $0 $400 + $0 = $400 Your monthly pension in the form of a single life annuity would equal $400. See Section 7 for a description of payment forms other than the single life annuity described above that are available. If you are married, other payment forms may be required. Termination of Employment Prior to Normal Retirement If your employment terminates prior to your 65th birthday but after you have completed at least 5 years of Service, you have a vested pension. You will be entitled to receive such vested pension beginning on the first day of any month which follows the later of your termination of employment and your 55th birthday by giving written notice to the Plan Administrator prior to the date you wish to have your pension begin. If you do not elect to begin your pension before your 65th birthday, your pension will automatically begin on the first day of 6

10 the month following your 65th birthday, and the amount of the pension will be determined as described above under Normal Retirement as of your termination of employment. If you elect to have your pension begin earlier than your 65th birthday, the amount of your pension will be determined as described above under Normal Retirement as of your termination of employment but will then be reduced actuarially to reflect the early start of your pension. For information on the amount of such a reduction in specific cases, please contact the Plan Administrator. Retirement or Termination of Employment Prior To January 1, 1992 If you are a participant who retired or terminated employment prior to January 1, 1992, you are entitled to a pension determined pursuant to a benefit formula which is slightly different than the formula described above. If you are such a participant, or if you are the beneficiary of such a participant, please contact the Plan Administrator for information concerning your pension. Retirement Pension for Disabled Former Employee If you are a disabled former employee who has attained age 55 but not age 65 and you cease receiving disability benefits from your Employer even though you are still disabled, you will generally be considered to have retired on the first day of the month following the later of the date your disability benefits cease and the date you complete 5 years of Service (including the period during which you are disabled) with an Employer. On such date, you will be entitled to receive a pension beginning on the first day of any month following your 55th birthday but before your 65th birthday (i.e., your normal retirement date) in an amount equal to your accrued pension, reduced by 11/24ths of 1% for each month by which your pension starting date precedes your normal retirement date. If on your 65th birthday you are a disabled former employee and you have not elected to receive a pension starting prior to your normal retirement date, you will be considered to have retired as of your normal retirement date and will be entitled to receive a monthly pension determined by the formula under Normal Retirement above. Benefit Accrued As of July 18, 1991 With respect to that portion of your benefit accrued as of July 18, 1991, you are vested in such benefit, even if you do not have 5 years of Service, on the date you attain age 55 or, if you are disabled, the date you are no longer eligible to receive disability benefits from your Employer. No Other Pensions Under Plan Except as described above, if you have not completed at least 5 years of Service when you terminate your employment, you will not receive any pension from the Plan. SECTION 7 FORM OF PENSION BENEFITS 7

11 Single Life Annuity Form If you are not married on your pension starting date, you will receive your monthly pension as a single life annuity in the amount calculated according to the formula set forth in Normal Retirement above unless you make an election to receive an optional pension form, as described below. Qualified Joint and Survivor Annuity Form If you are married on your pension starting date, the law requires that unless you elect otherwise with your spouse s written consent (as described below), you will receive your pension as a qualified joint and survivor annuity instead of the single life annuity described in Section 6 that you would have received if you were single. Under a qualified joint and survivor annuity, you will receive a monthly pension for your life and, if your spouse survives you, your spouse will receive a monthly pension for the remainder of his or her life starting on the first day of the month after your death. The amount of your monthly pension is determined according to the formula set forth in Section 6, but is then actuarially reduced to reflect the cost the Plan expects to incur in order to continue a pension to your spouse after your death. The amount of the monthly pension to be paid to your spouse will be one-half of the reduced monthly pension which you were receiving prior to your death (a 50% qualified joint and survivor annuity ). You can make an election to receive an optional pension form, as described below, rather than the 50% qualified joint and survivor annuity, if your spouse consents in the required manner. Optional Pension Forms Upon written request to the Plan Administrator you may elect in the manner described below to receive your pension in one of the following optional forms: Option 1. Life Annuity. A single life annuity, payable for your lifetime. The amount of the pension would be the amount described in Section 6 under Normal Retirement. Option 2. Joint and Survivor Annuity. A reduced pension payable to you during your lifetime. After your death, your spouse or a designated beneficiary will receive 100%, 75%, 66-2/3%, 50% or 25% (such percentage specified by you) of the reduced pension you were receiving prior to your death. Option Year Certain Benefit. A reduced pension payable to you for your lifetime, with payments guaranteed for 10 years. All of the optional pension forms are actuarially equivalent to the qualified joint and survivor and single life annuities. Actuarial Adjustments for Pensions Commencing Before Age 65 Please remember that under any of the pension forms described above in this Section 7, the actuarial reduction described under Section 6 - Termination of Employment Prior 8

12 to Normal Retirement will also apply if you elect to begin to receive before age 65 a pension in any one of those pension forms. Election of Optional Pension Forms You may elect an optional pension form, or change or revoke a prior election of an optional pension form, at any time during the 90-day period before your pension starting date (or such shorter period as allowed by law) by completing a form provided by the Plan Administrator and filing it with the Plan Administrator. To remind you that you may elect an optional pension form, the Plan Administrator will send you a notice describing the optional forms and giving general information on how much your pension will be if paid in the form of a single life annuity or a qualified joint and survivor annuity. You will receive the notice within a reasonable time prior to your pension starting date. If you are married on your pension starting date, you cannot elect to receive your pension in the form of a Life Annuity, a 25% Joint and Survivor Annuity or a 10-Year Certain Benefit, unless your spouse consents on a form provided by the Plan Administrator for this purpose. This consent must be witnessed by a Plan representative or a notary public. The purpose of the consent is to evidence your spouse s acknowledgement of your election to reduce or eliminate the survivor benefit your spouse would have received after your death if your pension were paid in the form of a 50% qualified joint and survivor annuity. Small Benefits Paid in a Lump Sum If the lump sum actuarial value of the pension payable to you on your pension starting date is $5,000 or less, the Plan Administrator will direct that payment of your pension be made in a lump sum as soon as practicable after your termination of employment. The lump sum payment will be made to you in lieu of any other pension form. You may elect to make a direct rollover of this lump sum payment to an individual retirement account, another qualified plan, an eligible annuity or governmental plan. SECTION 8 SURVIVOR PENSIONS Survivor Pension If You Die While Employed After Your Normal Retirement Date If you (i) continue your employment with an Employer after your normal retirement date and die while you are employed, and (ii) were married on the date of your death, your surviving spouse will be entitled to receive a monthly pension starting on the first day of the month after your death. The amount of your spouse s monthly survivor pension will be equal to the amount your spouse would have received under the 50% qualified joint and survivor annuity form if you had retired and had begun receiving a pension immediately before your death. 9

13 Statutory Survivor Pension If (i) you die prior to your pension starting date, (ii) you were married on the date of your death and (iii) your spouse is not entitled to the survivor pension described above under Survivor Pension If You Die While Employed After Your Normal Retirement Date, then your surviving spouse will be entitled to receive a monthly pension starting on the first day of the month following the later of (i) the date of your death and (ii) the date you would have attained age 55 had you survived. The amount of your spouse s monthly survivor pension will be equal to the pension your spouse would have received under the 50% qualified joint and survivor annuity form if you had terminated employment immediately before your death and elected to have your pension commence on such date. Small Survivor Pensions Paid in a Lump Sum If the lump sum actuarial value of the pension payable to your surviving spouse is $5,000 or less, the Plan Administrator will direct that payment of the pension be made in a lump sum as soon as practicable after your death. This lump sum payment may be rolled over to an individual retirement account, another qualified plan, an eligible annuity or governmental plan. SECTION 9 REEMPLOYMENT OF TERMINATED OR RETIRED EMPLOYEES If you terminate employment, are eligible to receive a pension, and are later reemployed by an Employer, pension payments will be suspended and you will become a participant as of the date you are reemployed. When you again terminate your employment, the pension you will be eligible to receive will be the greater of: (i) (ii) a pension determined as if this were the first time you terminated your employment, reduced actuarially by any amounts previously distributed to you, or the pension you were receiving or were eligible to receive prior to your reemployment. If you terminate employment prior to becoming entitled to receive a benefit and are later reemployed, you will become a participant as of the date you are reemployed. If you remain employed by an Employer after your normal retirement date, or if you are reemployed by an Employer after your normal retirement date, the Plan Administrator will notify you in writing during the calendar month in which your normal retirement date or reemployment (as the case may be) occurs that you will not be entitled to receive any pension for any calendar months of such employment. Your pension will be actuarially increased to reflect any pension payable to you for any calendar month during which you do not complete at least 40 Hours of Employment. If you die before such increased pension begins, and if no survivor s pension is payable, a lump sum payment will be made to your spouse (and if none, to your 10

14 estate) in an amount equal to your pension for each month after your normal retirement date or reemployment (as the case may be) in which you did not complete at least 40 Hours of Employment. SECTION 10 EVENTS WHICH MAY RESULT IN INELIGIBILITY TO PARTICIPATE OR DENIAL, LOSS, FORFEITURE OR SUSPENSION OF BENEFITS 1. With respect to your benefit accrued after July 18, 1991, if your employment terminates before you have completed 5 years of Service, neither you nor your spouse nor any other beneficiary will receive a pension from the Plan (see Section 6). 2. If you were formerly a participant in the Plan, are receiving a pension from the Plan, and are reemployed by an Employer, no future pension payments will be made to you until your employment is again terminated. 3. If your employment is terminated before your benefit under the Plan is vested as described in item (1) above, you are later reemployed, and if the number of your consecutive Break in Service years (as defined in section 2) equals or exceeds the greater of 5 or your number of years of Service completed prior to your termination of employment, your earlier period of employment and participation in the Plan will not be counted in determining when your benefit under the Plan will become vested and in determining the amount of your benefit. For example, if your employment is terminated when you have only 3 years of Service and 5 complete calendar years pass before you are reemployed, upon your reemployment prior Service will be disregarded for all purposes under the Plan. SECTION 11 CLAIMS PROCEDURE If you feel that you are entitled to more benefits than you are receiving under the Plan, you may file a claim, on a form furnished by the Plan Administrator, stating the benefits which you contend you should be receiving. The claim must be filed with the Plan Administrator, who will review it and advise you of his decision within 90 days after receipt of the claim. If the claim is denied in whole or in part, the denial will be in writing and will explain the reasons for the denial, will refer to the provisions of the Plan on which the denial is based, will describe any additional information or material necessary for the claim to be allowed, will explain why such information or material is necessary, and will explain the procedure under which you may request that the denial be reviewed. If your claim is denied in whole or in part and you request or your personal representative requests a review of the denial, the claim will be reviewed by the Plan Administrator. A request for review of a denied claim must be made within 65 days after you receive notice of the denial. For purposes of the review, you will have access to any documents that are related to your claim and you may submit any comments which you wish to make in writing. Within 60 days after receipt of the request, the Plan Administrator will notify you by letter of its final decision and the specific reasons for such decision. 11

15 If any of your beneficiaries feel they are entitled to a greater benefit than they are receiving under the Plan, such beneficiary may file a claim in the manner set forth above. Assignability SECTION 12 MISCELLANEOUS The Plan is maintained for the benefit and protection of you, your spouse and any other contingent pensioner you may designate. Your interest in the Plan, and your spouse s or contingent pensioner s interest, may not be pledged, sold, assigned, or transferred. There is an exception, however, for certain court orders relating to the provision of child support, alimony or marital property rights which could require the Association to pay all or part of your pension under the Plan to other parties. An order of this type is called a qualified domestic relations order. If you have any questions concerning a qualified domestic relations order or if you would like a copy of the Plan s model domestic relations order and QDRO procedures, please contact the Plan Administrator. Limitation on Right to Trust Assets You, your spouse and your contingent pensioner have no right, title or claim in or to any specific asset of the trust. You, your spouse and your contingent pensioner have the right only to distributions from the trust on the terms and conditions provided in the Plan. Amendment and Termination of the Plan The Plan may be amended or discontinued by the Association at any time. In addition, an Employer may discontinue its participation in the Plan at any time. However, no amendment or discontinuation may deprive you of your vested benefit under the Plan. Upon the termination of the Plan, upon the complete discontinuance of contributions to the Plan, or upon a partial termination of the Plan which affects you, your benefit under the Plan will become fully vested. Plan Insured by the Pension Benefit Guaranty Corporation Benefits under the Plan are insured by the Pension Benefit Guaranty Corporation ( PBGC ) if the Plan terminates. Generally, the PBGC guarantees most vested normal retirement age benefits, early retirement benefits, and certain disability and survivor s pensions. However, the PBGC does not guarantee all types of benefits under covered plans, and the amount of benefit protection is subject to certain limitations. The PBGC guarantees vested benefits at the level in effect on the date of plan termination. However, if a plan has been in effect less than 5 years before it terminates, or if benefits have been increased within the 5 years before plan termination, the whole amount of the plan s vested benefits or the benefit increase may not be guaranteed. In addition, there is a ceiling on the amount of monthly benefit that the PBGC guarantees, which is adjusted periodically. 12

16 For more information on the PBGC insurance protection and its limitations, ask the Plan Administrator or the PBGC. Inquiries to the PBGC should be addressed to the Office of Communications, PBGC, 1200 K Street, N.W., Washington, D.C The PBGC Office of Communications may also be reached by calling (202) Top-Heavy Requirements In the event the Plan becomes a top-heavy plan (as defined in Section 416 of the Internal Revenue Code) in any plan year, your Employer must provide certain minimum benefits to participants who are not key employees (as defined in section 416 of the Internal Revenue Code). In particular, the Plan must provide you with a benefit in no event less than 2% of your highest average compensation (as defined below) multiplied by your years of Service, as determined below, not in excess of 10. Years of Service for purposes of this paragraph only shall exclude any year of Service completed in any Plan year in which the Plan was not a topheavy plan and any year of Service completed in a Plan year beginning before Generally, a plan is a top-heavy plan if the accrued benefits of highly paid employees, officers and 5% shareholders exceed 60% of the accrued benefits of all employees. The Plan is not now, has never been and is not expected to become a top-heavy plan. For purposes of this subsection, highest average compensation means the annual average of your compensation for the period of consecutive calendar years after 1983 (not to exceed 5) during which your compensation was the highest except that calendar years after the last plan year for which the plan was a top-heavy plan will be disregarded. Additionally, if you terminate employment during a Plan year in which the Plan is top-heavy, the following rapid vesting schedule must be used to determine your vested percentage in your benefits: Years of Service less than 2 at least 2 but less than 3 at least 3 but less than 4 at least 4 but less than 5 5 or more Percentage 0% 20% 40% 60% 100% SECTION 13 STATEMENT OF ERISA RIGHTS As a participant in the Portland Cement Association Retirement Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 ( ERISA ). ERISA provides that all Plan participants shall be entitled to: Examine, without charge, at the Plan Administrator s office at 5420 Old Orchard Road, Skokie, Illinois all Plan documents, including any collective bargaining agreements and a copy of the latest annual report (Form 5500 Series) filed by the Plan 13

17 with the U.S. Department of Labor, and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration. Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including copies of the latest annual report (Form 5500 Series) and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies. Receive a summary each year of the Plan s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report. Obtain a complete list of the employers sponsoring the Plan by making a written request to the Plan Administrator. You may also receive from the Plan Administrator, upon written request, information as to whether a particular employer is a sponsor of the Plan and, if the employer is a Plan sponsor, the sponsor s address. Obtain a statement telling you whether you have a right to receive a pension at your normal retirement date and, if so, what your pension would be at your normal retirement date if you stopped working now. If you do not have a right to a pension, the statement will tell you how many more years you have to work to have a right to a pension. This statement must be requested in writing and is not required to be given more than once every twelve months. The Plan Administrator must provide the statement free of charge. In addition to creating rights for participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate the Plan, called fiduciaries of the Plan, have a duty to act prudently and in the interest of you and other participants and beneficiaries. No one, including your employer, your union, or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining your interest in the Plan which is vested or from exercising your rights under ERISA. If your request for a pension benefit from the Plan is denied or ignored in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day (or such other amount in effect from time to time) until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If your request for benefits is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan Administrator s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in federal court. If it should happen that Plan fiduciaries misuse the Plan s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have 14

18 sued to pay these costs and fees. If you lose and the court finds your claim to be frivolous, the court may order you to pay these costs and fees. If you have any questions about the Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator you should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitutional Avenue, N.W., Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Pension and Welfare Benefits Administration. CH v3 15