UNITED SCENIC ARTISTS Local 829 Pension Fund. Summary Plan Description October 2016

Transcription

1 UNITED SCENIC ARTISTS Local 829 Pension Fund Summary Plan Description October 2016

2 United Scenic Artists Local 829 Pension Fund SUMMARY PLAN DESCRIPTION October 2016

3 BOARD OF TRUSTEES Union Trustees F. Mitchell Dana United Scenic Artists Local West 38 th Street, 15 th Floor New York, NY Ms. Nancy M. Orr United Scenic Artists Local West 38 th Street, 15 th Floor New York, NY Ms. Cecilia Friederichs United Scenic Artists, Local West 38 th Street, 15 th Floor New York, NY Mr. Edward Pierce United Scenic Artists, Local West 38 th Street, 15 th Floor New York, NY Management Trustees Mr. Alfred Califano AICP 907 Old Farm Road Point Pleasant, NJ Ms. Mary Mooney ABC, Inc. 77 West 66 th Street New York, NY Mr. Christopher Brockmeyer The Broadway League, Inc th Avenue, 5 th Floor New York, NY Ms. Ann Marie Hackett The Metropolitan Opera Lincoln Center New York, NY Administrator Benserco, Inc. Fund Auditor Gould Kobrick & Schlapp, PC Fund Co-Counsel Kane Kessler, PC Spivak Lipton LLP Consultant and Actuary The Segal Company

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5 Table of Contents INTRODUCTION...1 PARTICIPATION IN THE PLAN...2 YOUR PENSION BENEFITS...3 Regular Pension...3 Early Retirement Pension...4 Vested Pension...5 Disability Pension...6 PENSION CREDITS AND VESTING SERVICE...7 Pension Credits...7 Military Service...8 Vesting Service...8 BREAKS IN SERVICE...9 Can You Lose Pension Credits and Vesting Service?...9 One-Year Break in Service...9 Permanent Break in Service...10 Grace Periods...10 FORMS OF PAYMENT...11 How is Your Pension Benefit Paid?...11 Spousal Pension at Retirement...11 Spousal Pension Reductions Month Guaranteed Pension Benefit...13 Pre-Retirement Surviving Spouse Pension...13 Beneficiary Designation...13 Pensioner Death Benefit...14 ABOUT RETIREMENT AND SUSPENSION OF BENEFITS...15 What is Retirement?...15 What is Disqualifying Employment?...15 What Happens if You Were Paid Pension Benefits While You Were Working in Disqualifying Employment?...15 Who Should You Notify if You Work in Disqualifying Employment?...16 Can You Return to Work in a Job That is Not Considered Disqualifying Employment?...16

6 APPLYING FOR BENEFITS...17 Filing an Application...17 Receiving Your Pension Benefit...17 Non-Assignment of Benefits...17 Benefit Limitations...17 Right to Obtain Records...18 CLAIMS AND APPEALS PROCEDURES...19 Denial of Claims...19 Right to an Authorized Representative...20 Review of Documents...20 Right to Appeal...20 Review of Appeal...20 WHAT HAPPENS IF THE PLAN TERMINATES?...22 Pension Benefit Guaranty Corporation...22 Other Information...23 YOUR RIGHTS UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT...24 Prudent Actions by Plan Fiduciaries...24 Enforce Your Rights...24 Assistance with Your Questions...25 ADMINISTRATIVE INFORMATION...26

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8 INTRODUCTION The United Scenic Artists Local 829 Pension Fund, (the Plan ) is maintained under collective bargaining agreements between certain employers and the United Scenic Artists Local 829 (the Union ). These agreements require the employers to contribute to the Plan on behalf of their employees. Each such employer is referred to in this SPD as a Contributing Employer. The Union is also a Contributing Employer. The Plan is completely financed by contributions from Contributing Employers. You pay nothing. You may participate in the Plan if you work for a Contributing Employer who is making contributions on your behalf. Such employment is referred to as Covered Employment. Upon written request, the Administrator will provide you with information as to whether an employer is a Contributing Employer under the Plan. When this booklet refers to you, it assumes that you are an employee covered by the Plan. The Plan is administered exclusively by a Board of Trustees (the Trustees ) consisting of an equal number of representatives of the Union and of the Contributing Employers. The Trustees have equal voting rights and serve without compensation. The Trustees have the sole power and discretionary authority to construe and interpret the terms of the Plan, and no individuals have any authority to interpret the Plan (or other applicable documents) or to make any promises to you about it, including any claim for benefits. The Plan has been determined to be tax-qualified by the Internal Revenue Service. The contributions made by Contributing Employers are held in a separate trust fund (the Pension Fund ) established for the purpose of paying benefits provided under the Plan. 1

9 PARTICIPATION IN THE PLAN You become a Participant in the Plan on the first January 1 or July 1 after you have earned $20,800 in Covered Employment, or $1,450 in contributions are made on your behalf to the Pension Fund, or after completion of at least 1,000 hours of service, during any period of 12 consecutive months. For Example: Ted began working in Covered Employment in May 2015 and earned more than $21,000 by May Ted becomes a Participant in the Plan on July 1, You will remain a Participant unless you have a one-year Break in Service. The Break in Service rules are more completely discussed later in this SPD. However, if you are fully vested in your benefit, your participation in the Plan will not be interrupted. If you do have a Break in Service, but later return to Covered Employment, you will resume participation after you have earned $20,800 in Covered Employment, or $1,450 in contributions are made on your behalf, or after completion of at least 1,000 hours of service during any period of 12 consecutive months which begins after the calendar year in which your participation terminated. 2

10 YOUR PENSION BENEFITS The Plan provides four types of pensions: 1. Regular Pension 2. Early Retirement Pension 3. Vested Pension 4. Disability Pension Regular Pension You may retire on a Regular Pension if you are age 65 or older and have earned at least 15 Pension Credits. If you earned any Pension Credit on or after January 1, 2013, the amount of the Regular Pension is calculated as follows: Participants Who Earned Any Pension Credit(s) on or After January 1, 2013 and Retire on or after January 1, 2014 The sum of: $14 for each Pension Credit earned Plus 3.25% of contributions for years in which Pension Credit was earned prior to January 1, 2013 Plus 2.67% of contributions for years in which Pension Credit was earned on or after January 1, 2013 For Example: Tom s birthday is December 10, He wants to retire effective January 1, On January 1, 2016 Tom will be 65 years of age. He earned 15 Pension credits between 2001 and 2015 (i.e., 1 Pension Credit in each calendar year). His benefit will be computed as follows: 2001 Monthly Benefit Accrual: (3.25% x $1,600.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $1,800.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $1,500.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $1,000.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $1,200.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $1,600.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $2,000.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $2,400.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $2,500.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $2,000.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $3,000.00) + ($14 x 1) = $ Monthly Benefit Accrual: (3.25% x $2,600.00) + ($14 x 1) = $ Monthly Benefit Accrual: (2.67% x $1,400.00) + ($14 x 1) = $ Monthly Benefit Accrual: (2.67% x $3,200.00) + ($14 x 1) = $ Monthly Benefit Accrual: (2.67% x $4,000.00) + ($14 x 1) = $ SUM of ALL Monthly Benefit Accruals = $1, Tom s monthly pension effective January 1, 2015 at age 65 = $1,

11 In no event shall the amount of a Regular Pension for any Participant be less than $250 per month before any adjustment for delayed retirement, as explained on page 6, and before any reductions applicable for a Spousal Pension, as explained starting on page 11. If you did not earn any Pension Credit on or after January 1, 2013, or retired before January 1, 2014, the amount of your benefit will be determined under the terms of the Plan in effect at the time you separated from Covered Employment, except that if you retired between October 1, 2013 and December 31, 2013, your benefit increased effective January 1, 2014 to reflect 3.25% of contributions for 2011 and You are considered to have separated from Covered Employment if you incur a one-year Break in Service. If you later return to Covered Employment and earn one Pension Credit in each of five consecutive calendar years, the amount of your benefit will be determined under the terms of the Plan in effect when you again separate from Covered Employment. However, if you return to Covered Employment and do not earn one Pension Credit in five consecutive calendar years, your benefit amount will be calculated in two parts. The benefit you earned prior to a Break in Service will be based on the accrual rates in effect when you first separated from Covered Employment. Any benefit you earned after a Break in Service will be based on the accrual rates in effect when you again leave Covered Employment. Early Retirement Pension You are eligible to retire on an Early Retirement Pension if you are age 55 or older, and have earned at least 15 Pension Credits. The Early Retirement Pension is adjusted downward from the Regular Pension amount, depending on your age. The reductions are as follows: 1/6 th of 1% (.00167) for each month between ages 64 and 65 by which you are younger than age 65. 1/4 th of 1% (.0025) for each month between ages 63 and 64 by which you are younger than age 65. 1/3 rd of 1% (.00333) for each month between ages 62 and 63 by which you are younger than age 65. 1/2 of 1% (.005) for each month between ages 55 and 62 by which you are younger than age 65. These reductions determine the percentage of the Regular Pension amount that can be paid to you as an Early Retirement Pension based on your age at retirement. 4

12 The chart below illustrates the percentages at various retirement ages. Months Years % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % For Example: Tom s birthday is December 10, He wants to retire effective March 1, On March 1, 2015, Tom will be 64 years and 2 months of age. His benefit will be computed as follows: Vested Pension Regular Pension at age 65 = $1, Percentage of Regular Pension amount at age 64 years and 2 months based on above chart = % $1, x % = $1, Tom s monthly pension effective January 1, 2015 at age 64 years and 2 months = $1, You become entitled to a Vested Pension when you have earned at least five years of Vesting Service. A Participant also can become vested if the Participant reaches Normal Retirement Age. Normal Retirement Age is the later of age 65, or the fifth anniversary of your participation in the Plan before you incur a Permanent Break in Service. A Vested Pension may be called a Deferred Pension because the actual payments will not begin before you reach age 65. If the Vested Pension begins after you have attained age 65, the monthly amount of the Vested Pension will be calculated in the same manner as the Regular Pension, but at the level of benefits rate in effect at the time you last worked in Covered Employment. However, regardless of the level of benefits in effect, your Vested Pension amount will never be lower than $250 per month, before adjustment for delayed retirement, as explained on page 6, and before adjustment for the Spousal Pension as explained starting on page 11. 5

13 Delayed Retirement If you delay applying for benefits after you reach age 65 and you are not working in Disqualifying Employment, your benefit will be actuarially increased for each month after age 65 that your benefits were not suspended. The actuarial increase is 1% per month for the first 60 months after age 65, and 1.5% for each month thereafter, until the April 1 following the year in which you attain age 70½. Disability Pension You may retire on a Disability Pension if you become totally disabled before age 65, after having earned at least 15 Pension Credits and you also earned a Pension Credit during the calendar year in which you became disabled or in one of the immediately two preceding calendar years. For Disability Pensions effective January 1, 2015 or later, the 15 Pension Credit requirement may be satisfied if you earned at least 14 Pension Credits, worked in Covered Employment for part of the calendar year in which you became totally disabled, and failed to earn a Pension Credit for that year as a result of your disability. The monthly amount of the Disability Pension is the same as the Regular Pension. However, a Disability Pension will be paid no sooner than the sixth month after the disability began. The Disability Pension will continue for life, provided you remain permanently and totally disabled to age 65. If you cease to be permanently and totally disabled before age 65, your Disability Pension shall terminate immediately. You will be deemed totally and permanently disabled only if you submit proof, satisfactory to the Trustees, that you are totally and permanently unable as a result of bodily injury or disease to engage in Covered Employment. You will be required to submit to an examination by a physician or physicians selected by the Trustees and may be required to submit to reexamination periodically as the Trustees may direct. The Trustees may, however, accept proof that you have been approved for a Disability Pension under the Social Security law in lieu of requiring a physical examination. Proof of continued disability will not be required after attainment of age 65. The Trustees shall solely and finally determine total and permanent disability and entitlement to a Disability Pension. 6

14 PENSION CREDITS AND VESTING SERVICE The length of your Covered Employment affects the amount of your pension under this Plan in two important ways. Your Pension Credits determine your eligibility for a Regular, Early or Disability Pension and the amount of your monthly benefit. Your Vesting Service determines when your right to receive a pension becomes non-forfeitable, and your eligibility for a Vested Pension. This section explains how you accumulate years of Pension Credits and Vesting Service, and also how you can lose the Pension Credits and the Vesting Service you have already accumulated. Pension Credits You are credited with Pension Credits on the basis of earnings from work you performed for an employer required under contract to make contributions on your behalf to the Pension Fund. The rules for determining Pension Credits have changed from time to time. Depending on your period of employment, your Pension Credits may be determined using more than one rule. You shall be entitled to Pension Credits in accordance with the following schedule: Period of Work Criteria for Earning Pension Credit Amount of Pension Credit Before 1/1/1985: $1,500 of earnings in Covered Employment = 1 Pension Credit Between 1/1/1985 and 12/31/1988: Between 1/1/1989 and 12/31/1996: Between 1/1/1997 and 12/31/2009: After 12/31/2009: $4,000 of earnings in Covered Employment = 1 Pension Credit $12,000 of earnings in Covered Employment OR $528 in employer contributions $12,000 of earnings in Covered Employment OR $528 in employer contributions $14,000 of earnings in Covered Employment OR $616 in employer contributions $16,000 of earnings in Covered Employment OR $704 in employer contributions $18,000 of earnings in Covered Employment OR $792 in employer contributions $20,000 of earnings in Covered Employment OR $880 in employer contributions $22,000 of earnings in Covered Employment OR $968 in employer contributions $20,800 of earnings in Covered Employment OR $1,450 in employer contributions $35,000 of earnings in Covered Employment OR $2,500 in employer contributions = 1 Pension Credit = 1/2 Pension Credit = 6/10 Pension Credit = 7/10 Pension Credit = 8/10 Pension Credit = 9/10 Pension Credit = 1 Pension Credit = 1/2 Pension Credit = 1 Pension Credit 7

15 Military Service You can also earn Pension Credits and Years of Vesting Service if your absence from Covered Employment is due to military service. You will be credited with an amount as required by law under the Uniformed Services Employment and Reemployment Rights Act if you apply for reemployment within the time limits of that law. If you plan to enter military service, check with the Administrator. Vesting Service Beginning January 1, 2015, you will be credited with one year of Vesting Service for each Calendar Year in which you have earned at least $20,800 in Covered Employment, or for which at least $1,450 has been contributed to the Fund on your behalf, or in which you have completed at least 1,000 hours of service. Prior to January 1, 2015 (and after January 1, 1997), you will be credited with one year of Vesting Service for each Calendar Year in which you have earned at least $12,000 in Covered Employment, or for which at least $528 has been contributed to the Fund on your behalf, or in which you have completed at least 1,000 hours of service. Prior to January 1, 1997, Vesting Service is credited on the same basis as Pension Credit. In addition, if you work for a Contributing Employer in a job not covered by this Plan and that non-covered Employment is continuous with (immediately before or after) employment with the same employer in Covered Employment, your hours of work in that non-covered job during the Contribution Period, after December 31, 1975, will also be counted toward a Year of Vesting Service. If you should die while in qualified military service, you will be credited with Vesting Service for your period of qualified military service as though you had returned to Covered Employment. 8

16 BREAKS IN SERVICE Can You Lose Pension Credits and Vesting Service? Once you have attained Vested Status, you have a non-forfeitable right to a pension benefit. You attain Vested Status when you meet the eligibility requirements for a Vested Pension. However, if you have too many consecutive One-Year Breaks in Service before you attain Vested Status, it is possible that you may lose your Pension Credits and Vesting Service. One-Year Break in Service A One-Year Break in Service occurs when you fail to meet certain work criteria related to earnings in Covered Employment, contributions made to the Pension Fund on your behalf, or hours worked in Covered Employment. The rules for determining a One-Year Break in Service, which have changed from time to time, are outlined in the following chart: For calendar years: Between 1/1/1976 and 12/31/1984: Between 1/1/1985 and 12/31/1988: Between 1/1/1989 and 12/31/2014: After 12/31/2014: You incur a One-Year Break in Service in any calendar year in which you: fail to earn at least $1,500 of earnings in Covered Employment fail to earn at least $4,000 of earnings in Covered Employment fail to earn at least $12,000 of earnings in Covered Employment OR have less than $528 in contributions made to the Pension Fund on your behalf, OR work less than 500 hours in Covered Employment fail to earn at least $20,800 of earnings in Covered Employment OR have less than $1,450 in contributions made to the Pension Fund on your behalf, OR work less than 500 hours in Covered Employment If you incur a One-Year Break in Service before you have attained Vested Status, the Pension Credits and Years of Vesting Service you earned are cancelled. However, the effects of a One-Year Break in Service can be repaired by earning one year of Vesting Service immediately following the One-Year Break in Service. For Example: During his first four years in Covered Employment, Mike earned four years of Pension Credits and four years of Vesting Service. During Mike s fifth year, he earned less than $20,000 and did not have at least $1,450 in contributions made on his behalf, so he incurred a One-Year Break in Service. During his sixth year, Mike earned $27,000. Because Mike earned a year of Vesting Service after he incurred a One-Year Break in Service, the four years of Pension Credits and four years of Vesting Service he earned prior to his Break in Service will be restored. 9

17 Permanent Break in Service When you have a Permanent Break in Service before you attain Vested Status, you lose, or forfeit, all previously earned Pension Credits and Vesting Service. This lost Pension Credit and Vesting Service cannot be restored. The rules regarding a Permanent Break in Service depend upon when your Break in Service occurred: After December 31, 1996 (after December 31, 1988 for Non-Bargained Employees), you incurred a Permanent Break in Service when the number of consecutive One-Year Breaks in Service equals or exceeds five years. After December 31, 1984, but before January 1, 1997, you incurred a Permanent Break in Service when your Consecutive One-Year Breaks in Service equal or exceed the greater of five or the number of years of Vesting Service you had earned. After December 31, 1975, but before January 1, 1985, you incurred a Permanent Break in Service when the number of your consecutive One-Year Breaks in Service equals or exceeds the number of years of Vesting Service you had earned. Prior to January 1, 1976, you incurred a Permanent Break in Service if during the Contribution period you failed to earn at least $1,500 in Covered Employment in each of five consecutive years. For Example: Tom earned four years of Pension Credits and four years of Vesting Service during the Plan Years between 2005 and Tom did not work for the next five years and returned to Covered Employment in January, Since the number of consecutive One-Year Breaks in Service equals five, Tom incurred a Permanent Break in Service. Grace Periods Because Tom incurred a Permanent Break in Service, he forfeited the four years of Pension Credits and the four years of Vesting Service that he previously earned. You may be allowed a grace period in order to prevent you from incurring a Break in Service if your absence is due to pregnancy, the birth of your child, placement of a child with you in connection with the adoption of a child, or care for your child immediately following his or her birth or placement. The grace period will be applied to the Plan Year in which the absence begins if it will prevent you from incurring a One-Year Break in Service. Otherwise, it will be applied to the Calendar Year immediately following the Calendar Year in which the absence occurred. The Fund may require, as a condition of granting such grace periods, that you establish to the satisfaction of the Trustees that the absence is for one of the above reasons. You will also be allowed a grace period for periods of qualified military service or absence under the Family and Medical Leave Act. 10

18 FORMS OF PAYMENT How is Your Pension Benefit Paid? If you are married, your benefit will be paid in the form of a 50% Spousal Pension, unless you and your spouse reject this form of payment as described below. If you are not married, or if you and your spouse reject a Spousal Pension, your benefit will be paid as a 60-Month Guaranteed Pension Benefit. In addition, when you die, a death benefit of $1,500 will be payable to your designated beneficiary. Spousal Pension at Retirement If you are married when you retire, the automatic form of payment is the 50% Spousal Pension. Under the 50% Spousal Pension, you will receive a reduced monthly benefit payable during your life. Upon your death, your spouse will receive a lifetime benefit of 50% of the monthly benefit amount you were receiving. You also have the option of receiving a 75% Spousal Pension which will provide your spouse with 75% of the monthly benefit amount you were receiving. In order to provide this greater benefit to your spouse, a greater reduction is made in your monthly benefit. All benefits will be paid in the 50% Spousal form unless this form of benefit is properly rejected by you and your spouse or you establish to the satisfaction of the Trustees that: You are not married; You and your spouse are legally separated; Your spouse cannot be located; or You have been abandoned by your spouse as confirmed by a court order. Spousal Pension Reductions The reduction in your pension to provide a lifetime benefit to your spouse depends on the difference between your age and your spouse s age at the time you begin receiving your pension benefits, the percentage of the Spousal Pension you elect, as well as the type of pension for which you qualify (e.g., Regular, Early, Vested, or Disability). Your monthly benefit will be a percentage of your full monthly lifetime benefit as illustrated by the following charts: 11

19 If your spouse is YOUNGER than you: Spousal Pension Percentage Adjustment for Regular Pension and Early Pension Adjustment for Vested Pension Adjustment for Disability Pension 50% 90% minus 0.4% for each full year that the spouse s age is less than the Participant s age 88% minus 0.4% for each full year that the spouse s age is less than the Participant s age 77.5% minus 0.4% for each full year that the spouse s age is less than the Participant s age 75% 84% minus 0.6% for each full year that the spouse s age is less than the Participant s age 83% minus 0.5% for each full year that the spouse s age is less than the Participant s age 74% minus 0.5% for each full year that the spouse s age is less than the Participant s age The resulting percentage shall not be greater than 99%. If your spouse is OLDER than you: Spousal Pension Percentage Adjustment for Regular Pension and Early Pension Adjustment for Vested Pension Adjustment for Disability Pension 50% 90% plus 0.4% for each full year that the spouse s age is greater than the Participant s age 88% plus 0.4% for each full year that the spouse s age is greater than the Participant s age 77.5% plus 0.4% for each full year that the spouse s age is greater than the Participant s age 75% 84% plus 0.6% for each full year that the spouse s age is greater than the Participant s age 83% plus 0.5% for each full year that the spouse s age is greater than the Participant s age 74% plus 0.5% for each full year that the spouse s age is greater than the Participant s age The resulting percentage shall not be greater than 99%. You should be aware that your benefits will automatically be paid in the form of a 50% Spousal Pension unless you and your spouse reject this type of benefit. Your spouse must consent to the rejection of the 50% Spousal Pension in writing and to any beneficiary or contingent annuitant you designate. The rejection and your spouse s consent must be witnessed by a notary public within 180 days prior to the commencement of your pension. The 50% Spousal Pension may be waived if you cannot locate your spouse or your spouse s consent cannot be obtained due to extenuating circumstances. In these situations, you must submit appropriate proof as requested by the Trustees. To be entitled to a Spousal Pension, you and your spouse must be married to each other throughout the year ending with the date of your death. If you marry within 12 months prior to retirement, you can receive a Spousal Pension. However, if you die before you were married for a full year, your surviving spouse will not receive the survivor s pension. Once your pension benefits begin, you cannot change your decision about a Spousal Pension. The amount cannot be changed because of the divorce or death of a spouse or annulment of marriage. If you are divorced, a court may order the Fund to pay part of your benefit to your divorced spouse. 12

20 You should be aware that before the effective date of your pension, you must file, in writing, a statement concerning your marital status. If it is later determined that you were not legally married, the Trustees have the right to adjust the dollar amount of the pension payments made to your alleged surviving spouse so as to recoup any excess benefits that may have been mistakenly paid. 60-Month Guaranteed Pension Benefit If you are single, you will receive your benefit in the form of a 60-Month Guaranteed Pension Benefit. If you are married, you may elect the 60-Month Guaranteed Pension Benefit only if you reject a Spousal Pension and your spouse consents in writing, witnessed by a notary public. These rules pertain to the Regular, Early Retirement and Disability Pensions. If you are only eligible for a Vested Pension, the 60-Month Guarantee does not apply. Under this form of payment, you will receive an unreduced monthly benefit for life. If you die before you have received 60 monthly payments, your spouse or other designated beneficiary will continue to receive monthly benefit payments until a total of 60 monthly payments is made. The total of 60 payments includes all payments made to you and your beneficiary. Pre-Retirement Surviving Spouse Pension If you die after attaining Vested Status, but before you are old enough to begin collecting your benefit, your spouse will receive a survivor s benefit for the remainder of his or her lifetime. Payments will begin to be made to your spouse on the date you would have first been eligible to begin receiving a benefit. This benefit will be calculated as if you had retired on a 50% Spousal Pension on the first day you were eligible and died the next day. If you die after attaining Vested Status and while you are old enough to begin receiving a benefit, your spouse will receive a survivor s benefit for the remainder of his or her lifetime. This benefit will be calculated as if you had retired on a 50% Spousal Pension on the day before you died. Payments to your spouse will begin as soon as administratively possible. Your spouse may elect in writing to postpone the start of the Pre-retirement surviving spouse benefit until a specified date that is no later than the December 1 st of the calendar year in which you would have turned age 70½. Beneficiary Designation The Administrator must be notified, in writing on an approved form received from the Fund Office, of the person you would like to designate as your beneficiary. You may change your beneficiary designation at any time before you retire. If you are married, your spouse s notarized consent must be provided if you designate a beneficiary other than your spouse. If your beneficiary is your spouse, then upon your spouse s death any remaining payments will be made to your surviving child or children if no other beneficiary has been designated. 13

21 Pensioner Death Benefit A death benefit in the amount of $1,500 is payable to the designated beneficiary of a deceased pensioner. If the beneficiary you designated for the $1,500 Pensioner Death Benefit predeceases you, or if there is no designated beneficiary, the Pensioner Death Benefit will be paid to the first of the following: your spouse, your children, the person who paid your funeral or last medical expenses, your estate. 14

22 ABOUT RETIREMENT AND SUSPENSION OF BENEFITS What is Retirement? When you stop working in Covered Employment and begin receiving a pension benefit from the Plan, you are considered to be in retirement. While you are retired, you will receive monthly pension checks unless you resume work in Disqualifying Employment. What is Disqualifying Employment? Disqualifying employment is work (either as an employee or in self-employment) in any trade or craft in which you worked while covered by the Plan, in an industry and a geographic area covered by the Plan. Your pension will be suspended for each month you work (or were paid for non-work time such as vacation, holiday, illness or other incapacity, layoff, jury duty, or other leave of absence) in Disqualifying Employment (either as an employee or in self-employment) for 11 days or more. Suspension begins the month after the month in which you worked 11 days. However, your pension must begin to be paid and continue to be paid, even if you work in Disqualifying Employment, on and after the April 1 following the year in which you reach age 70½. If contributions are made on your behalf on a lump sum basis, or for any other reason it is unclear how many days you worked in Disqualifying Employment, it is the Plan policy to use the Art Director s daily rate for feature films set in the USA Local 829 Major Motion Picture Agreement with Major Producers ($ as of August 2016) to determine the number of days of Disqualifying Employment. Your benefit will be suspended for one month, beginning the month after the month in which your contributions were reported, for each 11 days you are determined to have worked in Disqualifying Employment. For example, if a lump sum contribution on earnings of $17,600 is made on your behalf and that is determined to represent 22.1 days of Disqualifying Employment based on the applicable Art Director rate, your benefit will be suspended for two months. If you present evidence showing that you did not in fact work or be paid for 11 or more days in a month or months, then the period of suspension, if any, will be adjusted based upon the evidence you provide. What Happens if You Were Paid Pension Benefits While You Were Working in Disqualifying Employment? If you were paid a pension during any month in which your benefits should have been suspended under the above rules, the Plan will deduct that amount from your future benefit payments once your payments from the Plan resume. If you die before the Plan can recoup the entire amount of payments made while you worked in Disqualifying Employment, the benefit payments to your surviving spouse or beneficiary, if any, are subject to deduction until recoupment for the overpayment is completed. 15

23 Who Should You Notify if You Work in Disqualifying Employment? It is your responsibility to inform the Administrator, in writing, within 21 days after you begin working in Disqualifying Employment. You must also inform the Administrator when your Disqualifying Employment has ended, so that your pension payments may resume. Can You Return to Work in a Job That is Not Considered Disqualifying Employment? Yes, you may work in any other profession which is not considered Disqualifying Employment without suspension of benefits. 16

24 APPLYING FOR BENEFITS Filing an Application To make sure your benefit payments are not delayed, you must file a written application with the Board of Trustees on a form you must request from the Administrator. The rules of the Plan require that your application be filed in advance of the month you wish your benefit to begin. You are urged to file as soon as you decide on your intended retirement date. Early filing will avoid delay in the processing of your application and payment of benefits. The Trustees have the right to request any information or proof they reasonably require to determine your right to a benefit. Receiving Your Pension Benefit Your pension will begin on the first day of the month following entitlement to benefits provided you have filed an application. You may, however, choose to delay the start date of your benefit payments, but your benefit cannot be delayed beyond the April 1st following the calendar year in which you turn age 70½. Your benefit must begin by that April 1, even though you may still be working in Covered Employment. Non-Assignment of Benefits Benefits cannot be assigned, sold, transferred or pledged as a security for a loan. Furthermore, they are not subject to attachment or execution under any decree of a court or action with the exception of a Qualified Domestic Relations Order (QDRO). A Qualified Domestic Relations Order is a court order under domestic relations law assigning all or part of your pension benefits to your former spouse, your child, or other dependent, to provide child support, alimony payments and/or property rights to your former spouse. Benefit Limitations Your pension benefit may be limited to certain maximum benefit provisions prescribed by IRS regulations. Few Plan members may be affected by these limitations. If you are affected, you will be notified by the Trustees in writing. 17

25 Right to Obtain Records You have the right to inquire into your credited service at any time. If you believe that you worked in Covered Employment that was not properly credited under the Plan or not reported at all, you have the right to submit a claim in accordance with the claims procedure that begins on page 19. Please be reminded that in the event of a discrepancy between the information received by the Plan from Contributing Employers (or obtained during payroll reviews) and the credit to which you believe you are entitled, it will be your responsibility to prove that the work in question was both actually performed by you for a Contributing Employer and was Covered Employment for which contributions were required to be made to the Plan. Accordingly, it is important that you retain adequate records of your Covered Employment (i.e., pay stubs and other documentary evidence) that would assist you in demonstrating both the amount of work you performed for each Contributing Employer and that the work constituted Covered Employment. Please also remember that the longer you wait to file a claim to correct any issue, the more difficult it may be for you to provide, and for the Plan to verify, the necessary documentation. Failure to provide such documentation could result in loss of credit. All determinations and interpretations made by the Board of Trustees and/or its duly authorized designee(s) will be final and binding upon all Participants, beneficiaries and any other individuals claiming benefits under the Plan. 18

26 CLAIMS AND APPEALS PROCEDURES A Participant, a surviving spouse or a beneficiary of a deceased Participant or pensioner, must file an application for benefits with the Fund Manager. The submission to the Fund Manager of an application for benefits constitutes a benefit claim. An individual who submits a claim is referred to as a Claimant. Denial of Claims Within 90 days of receipt of a written claim for benefits, the Fund Manager must provide a written notice if your claim has been wholly or partially denied. Under special circumstances, an extension of time for up to 90 days may be required. If the extension is needed, written notification will be provided prior to the end of the initial 90-day period of the special circumstances requiring the extension of time and the date when a decision will be made. If your claim for benefits is for a Disability Pension, the Fund Manager will make a decision about your application within 45 days of receiving it. This 45-day time period may be extended twice for up to 30 days under special circumstances. If an extension is needed, written notification will be provided of the special circumstances requiring an extension and the date by which a final decision is expected to be rendered, before the first 30-day extension ends and before the second 30-day extension ends. If an extension is required because of a Claimant s failure to provide necessary information, the period for making the benefit determination will be tolled from the date on which the notification of the extension is sent to the Claimant until the date on which the Claimant responds to the additional information. The notice of denial will provide: The specific reason or reasons for the denial; Specific references to the Plan provisions upon which the denial is based; A description of any additional material and information that would be needed in order for the claim to be granted, and an explanation of why the material or information is needed; A description of the Fund s review procedures and the applicable time limits; and A statement of the Claimant s right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review. If an internal rule, guideline, protocol or other similar criterion was relied upon in making the adverse determination on a claim for disability benefits, the notice will include either the specific rule, guideline, protocol, or other similar criterion, or a statement that such a rule, guideline, protocol or other similar criterion was relied upon in making the adverse determination, and that a copy of such rule, guideline, protocol or other criterion will be provided free of charge to the Claimant upon request. 19

27 Right to an Authorized Representative You can appoint an authorized representative to act on your behalf in filing a claim and seeking a review of a denied claim. You must, however, notify the Fund Manager in advance in writing of the name, address, and phone number of the authorized representative. Review of Documents Upon request and free of charge, you or your duly authorized representative will be allowed to review relevant documents and submit issues and comments to the Fund Manager in writing. A document, record or other information is relevant and is required to be made available to you only if it: Was relied upon by the Fund Manager in making the benefit determination; Was submitted, considered, or generated in the course of making the benefit determination; Demonstrates compliance with the Plan s administrative processes and safeguards required under federal law. Right to Appeal Within 60 days after receiving a notice of denial of a claim, or 180 days after receiving a notice of denial of a disability claim, you or your authorized representative may petition the Board of Trustees for review of the denial. A petition for review must be in writing and must state, in clear and concise terms, the reason or reasons for disputing the denial, and be accompanied by any pertinent or relevant document or material not already furnished to the Fund and shall be filed by you or your duly authorized representative with the Fund Manager within the required time period after you receive notice of the initial denial. The Fund Manager will present all petitions for review to the Board of Trustees or the subcommittee appointed by the Board of Trustees. Failure to file a petition for review of the denial within the required time period will constitute a waiver of your right to a review of the denial. However, the Board of Trustees may relieve a Claimant of any such waiver for good cause shown, provided application for relief is made within one year after the date shown on the notice of denial. Review of Appeal The Board of Trustees will make the decision on review of the appeal no later than the next meeting of the Board that immediately follows their receipt of the appeal. If the appeal of the denied claim is received within 30 days before the date of the next regularly scheduled Board meeting, the decision may be made no later than the date of the second meeting following their receipt of the appeal. If special circumstances require an extension of time, written notification will be provided of such extension and the Board of Trustees will make their decision at the following meeting but in no case later than the third regularly scheduled meeting. Written notice of the decision will be provided as soon as possible but no later than five days after a final decision is made. 20

28 In reviewing a denial of disability benefits that is based in whole or in part on medical judgment, the Board of Trustees or the subcommittee appointed by the Board of Trustees will consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment. The health care professional engaged for purposes of a consultation shall be an individual who is neither an individual who was consulted in connection with the adverse determination that is the subject of the appeal, nor the subordinate of any such individual. Upon request, the Claimant will be provided with the identification of the medical or vocational experts, if any, who gave advice to the Trustees in making the determination on the claim, without regard to whether their advice was relied upon in making such determination. The notice will include specific reasons for the decision, and will cite the Plan provisions on which the decision is based. The notice will also include a statement indicating that you or your authorized representative are entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to your claim for benefits and a statement explaining your right to bring a civil lawsuit under ERISA following an adverse benefit determination upon your appeal. With respect to denials of disability benefits, if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, the notice will include either the specific rule, guideline, protocol, or other similar criterion, or a statement that such rule, guideline, protocol or other similar criterion was relied upon in making the adverse determination and that a copy of the rule, guideline, protocol or similar criterion will be provided free of charge to the Claimant upon request. If the Board of Trustees rules in your favor on the appeal, this ruling will be binding and conclusive. If the Board of Trustees rules against your appeal, the ruling will also be binding and conclusive unless you start legal proceedings challenging the Board s ruling. 21

29 WHAT HAPPENS IF THE PLAN TERMINATES? Although the Trustees intend to continue the Plan indefinitely, they reserve the right to amend or end it. If the Plan is terminated, it will not affect your right to any benefit to which you have already become entitled. If the Plan terminates, you will be entitled to any benefit you have accrued to the extent then funded. 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, the PBGC provides financial assistance through loans to plans that are insolvent. A multiemployer plan is considered insolvent if the plan is unable to pay benefits (at least equal to the PBGC s guaranteed benefit limit) when due. The maximum benefit that the PBGC guarantees is set by law. Under the multiemployer program, the PBGC guarantee equals a Participant s years of service multiplied by (1) 100% of the first $11 of the monthly benefit accrual rate and (2) 75% of the next $33. The PBGC s maximum guarantee limit is $35.75 per month times a participant s years of service. For example, the maximum annual guarantee for a retiree with 30 years of service would be $12,870. The PBGC guarantee generally covers: Normal and Early Retirement benefits; Disability benefits if you become disabled before the plan becomes insolvent; and Certain benefits for your survivors. The PBGC guarantee generally does not cover: Benefits greater than the maximum guaranteed amount set by law; Benefit increases and new benefits based on plan provisions that have been in place for fewer than five years at the earlier of the date the plan terminates; or the time the plan becomes insolvent; Benefits that are not vested because you have not worked long enough; Benefits for which you have not met all of the requirements at the time the plan becomes insolvent; and Non-pension benefits, such as health insurance, life insurance, certain death benefits, vacation pay and severance pay. 22

30 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 Other Information The following additional information concerning your Plan is being provided to you in accordance with government regulations. This Plan is a defined benefit plan. A joint Board of Trustees, consisting of four Union representatives and four Employer representatives is the Administrator of the Plan. The Board of Trustees has been designated as the agent for the service of legal process. Service of legal process may also be made upon a Plan Trustee or the Administrator at the following address: UNITED SCENIC ARTISTS LOCAL 829 PENSION FUND c/o Benserco, Inc. 140 Sylvan Avenue, Suite 303 Englewood Cliffs, NJ All contributions to the Plan are made by Employers in accordance with their collective bargaining agreements with the Union or other written agreements providing for such payments. The collective bargaining agreements require contributions to the Plan. The Administrator will provide you, upon written request, with information as to whether a particular employer is contributing to this Plan on behalf of employees working under the collective bargaining agreement. Benefits are provided from the Fund s assets, which are accumulated under the provisions of the collective bargaining agreement and the trust agreement and held in a trust fund for the purpose of providing benefits to covered participants and defraying reasonable administrative expenses. Your right to a pension is dependent upon your meeting all of the qualifications and conditions set forth in the Plan. For example, if you die before entitlement to any benefit, you may not receive a pension. Your right to a pension may be adversely affected by economic conditions which might have some effect upon the maintenance of the Fund s assets, despite the Trustees use of professional investment managers to handle the assets of the Pension Fund. The Trustees are devoting their best efforts to ensuring that your right to a pension is protected, but conditions beyond their control or beyond your control may conceivably affect your right or ability to receive a pension. Your rights, if you are covered by the Pension Plan, can only be determined by consulting the Plan Document. Further information may be obtained through the Administrator. 23