PUGET SOUND ELECTRICAL WORKERS PENSION PLAN REVISED

Transcription

1 PUGET SOUND ELECTRICAL WORKERS PENSION PLAN REVISED JUNE 1, 2004

2 Puget Sound Electrical Workers Trust Funds Physical Address 7525 SE 24th Street, Suite 200, Mercer Island, WA Mailing Address PO Box 34203, Seattle, WA Phone (206) or (866) Fax (206) Website Administered by Welfare & Pension Administration Service, Inc. To: All Plan Participants Important Notice of Changes to Calculation of Benefits under the Pension Plan Date of this Notice: May 16, 2017 To improve the funding health of the Puget Sound Electrical Workers Pension Trust ( Trust ), on March 16, 2017, the Board of Trustees ( Board ) approved changes to the benefits you earn in the future and the eligibility to receive these future benefits under the Special Early Retirement provision. These changes are effective June 1, If your retirement date is before June 1, 2017, your benefit calculations are not affected by these actions. If you retire on or after June 1, 2017, please read this notice carefully as these changes may affect the benefits that you earn in the future. In any event, these changes will not affect the amount of benefits resulting from your hours worked before June 1, Also, in an effort to improve the funding health of the Trust, Local Union No. 46 International Brotherhood of Electrical Workers (Local 46) and the Puget Sound Chapter National Electrical Contractors Association (NECA) agreed to modify certain contribution obligations to the Trust. Additionally, at its March 16 meeting, the Board changed the Special Early Retirement eligibility requirement of three years of service during the last five consecutive Plan Years that may allow some to qualify for these unreduced early retirement benefits earlier. This change is effective for retirements on or after April 1, The following is a summary of the changes resulting from the March Board actions and Local 46 and NECA s agreement. Summary of Changes Benefit Accrual Rate Reduction for 5 years--for benefits earned on or after June 1, 2017 and before June 1, 2022, the benefit accrual rate that applies to contributions that are entitled to earn benefits is reduced from 1.5% to 1.25%. The benefit accrual rate is scheduled to increase back to 1.5% on benefits earned on and after June 1, Benefits earned prior to June 1, 2017 are unaffected by this change. Sunset After 10 Years of Off Benefit Contributions for Inside Wiremen--The additional $1 per hour Funding Contribution rate increase effective February 1, 2017 for Inside Wiremen that currently does not apply to the benefits you earn ( Off Benefit ) is scheduled to apply to the benefits you earn starting February 1, Year Off Benefit Contributions for Sound & Communication--50 cents per hour of the 60 cent contribution rate increase for Sound & Communication that was effective February 6, 2017, will apply as Funding Contributions and not to benefits earned for the 10 year period spanning June 1, 2017 through May 31, The 50 cents per hour contribution rate is scheduled to again be applied to the benefits you earn beginning June 1, Flexibility in Meeting Special Early Retirement Recency Requirement--Starting April 1, 2017, you will now be eligible for Special Early Retirement if you have three years of service during the five consecutive Plan Years immediately prior to the Plan Year of your retirement ( Recency Requirement ) or have three years of service during the five consecutive Plan Years that include and end with the Plan Year of your retirement.

3 Higher Special Early Retirement Hours Requirement for Benefits Earned on or after June 1, To qualify for unreduced early retirement benefits under the plan s Special Early Retirement provision with respect to benefits earned on or after June 1, 2017, you will need to have 35,000 hours of service. The hours requirement needed to be eligible for unreduced Special Early Retirement benefits for benefits earned prior to June 1, 2017 remains at 30,000. All hours that you are credited with (both before and after June 1, 2017) will count toward meeting the 30,000 and 35,000 requirements. These changes are described in further detail below. Benefit Accrual Rate Reduction for 5 years Under the terms of the Puget Sound Electrical Workers Pension Plan ( Plan ) you currently earn a benefit during a Plan Year equal to 1.5% of contributions (except Funding Contributions) made or required to be made on your behalf. Funding Contributions are employer contributions that are designated solely for funding improvement that do not earn a benefit. For the period June 1, 2017 through May 31, 2022, the Board reduced the benefit accrual rate from 1.5% to 1.25%. As a result, the benefit you earn each plan year during June 1, 2017 through May 31, 2022 is scheduled to be equal to 1.25% of contributions (except Funding Contributions) made or required to be made on your behalf. Benefits earned in the future under the 1.25% formula are 16.67% less than what would have been earned under the 1.5% formula. Benefits earned prior to June 1, 2017 are unaffected by this change. Here is an example comparing the benefit under the formula scheduled to apply for the 5 years beginning June 1, 2017 with the benefit that would have been earned during this period if the current formula remained in place: Assume that you work 1,600 hours during a plan year and your employer contributes $7.88 per hour of which $1.45 per hour does not earn a benefit and is applied to your hours worked as a Funding Contribution. Total contributions from your employer would be $12,608 (=1,600 hours x $7.88). Funding Contributions would be $2,320 (=1,600 hours x $1.45) leaving $10,288 (=$12,608 - $2,320) in contributions that earn a benefit. Under the formula that is scheduled to apply for the 5 plan years beginning June 1, 2017 you will earn 1.25% of $10,288 or $ for credited hours earned during a plan year. Had the current benefit rate of 1.5% remained in place during these 5 years you would have earned $ (=1.5% x $10,288). Before June 1, 2017 On or After June 1, ,600 hours worked x $6.43 ($7.88 $1.45) = $10,288 x 1.5% = $ earned per year 1,600 hours worked x $6.43 ($7.88 $1.45) = $10,288 x 1.25% = $ earned per year February 1, 2027 Sunset of Off Benefit Contributions for Inside Wire Effective February 1, 2017, Local 46 and NECA agreed to a $1 per hour Funding Contribution on behalf of Inside Wiremen that does not apply to benefits you earn ( Off Benefit ). With the additional $1 per hour Funding Contribution, $1.45 now is applied to hours credited as Funding Contributions for Inside Wiremen. Local 46 and NECA recently agreed that the additional $1 per hour Funding Contribution that became effective February 1, 2017 will apply to benefits earned starting February 1, If 1,600 hours are credited during a Plan Year beginning after February 1, 2027, the contribution rate is $7.43 per hour and the benefit rate is 1.5%, the benefit earned would be $ (=1,600 hours x $7.43 per hour x 1.5%) for each plan year. PSEW 204(h) 2 P age

4 10-Year Off Benefit Contributions for Sound & Communication Effective February 6, 2017, Local 46 and NECA agreed to increase the contribution rate for participants working in Sound & Communication by 60 cents per hour from $2.60 per hour to $3.20 per hour. Local 46 and NECA recently agreed to apply 50 cents of the 60 cents per hour increase to Funding Contributions for the 10 years spanning June 1, 2017 through May 31, 2027, similar to the percentage of the Inside Wiremen contribution increase applied to Funding Contributions. As a result, future benefits earned during this period will be 18.75% less than what they would have been had 50 cents per hour of the contribution rate increase been applied to benefits earned. For example, assume you are credited with 1,600 hours during the June 1, 2017 through May 31, 2018 plan year. As a Sound & Communication journeyman, assume $3.20 per hour is contributed on your behalf for total contributions of $5,120 (=1,600 hours x $3.20 per hour). With 50 cents per hour designated as Off Benefit, $800 (=1,600 hours x 50 cents per hour) of Funding Contributions would be directly applied toward funding improvement and not toward benefit accrual. As a result, you would earn $54.00 [= ($5,120-$800) x 1.25%] during the upcoming plan year versus the $64.00 (=$5,120 x 1.25%) you would have earned had the entire $3.20 per hour applied toward benefit accrual. The 50 cents per hour is scheduled to apply to benefits earned starting June 1, If 1,600 hours are credited during a Plan Year beginning after June 1, 2027, the contribution rate is again $3.20 per hour and the benefit rate is 1.5%, the benefit earned would be $76.80 (=1,600 hours x $3.20 cents per hour x 1.5%) for each plan year. Flexibility in Meeting Special Early Retirement Recency Requirement To be eligible for Special Early Retirement currently you must be at least age 55 and meet the following service requirements: have at least 10 years of Credited Service with either two or more years of Credited Future Service or at least 3,000 Covered Hours of Employment, AND have at least 3 years of Credited Future Service during the five consecutive Plan Years immediately preceding retirement (or during any five consecutive Plan Years ending on or after the later of May 31, 1991, or the date you attain age 55), AND have at least 30,000 Covered Hours of Employment. Note: For purposes of satisfying the requirement for three years of Credited Future Service during the preceding five consecutive Plan Years, only hours for which contributions are made to or transferred to this Plan shall generally be considered. The second requirement above is referred to as the Recency Requirement. Currently, years of Credited Future Service accrued during the five consecutive Plan Years immediately preceding the Plan Year in which you retire are counted. Any Credited Future Service accrued during the Plan Year in which you retire is not counted. Effective April 1, 2017, the Board changed the Recency Requirement to also allow you to meet this requirement by earning three years of Credited Future Service (870 Covered Hours) during the five consecutive Plan Years ending with the Plan Year of your retirement. Under this alternative, any Credited Future Service you accrue during the Plan Year in which you retire is counted, but the Plan Year which begins the five consecutive Plan Year period is moved up one Plan Year. PSEW 204(h) 3 P age

5 For example, assume you turn age 55 in March 2017 and request retirement effective April 1, 2017 (during the Plan Year beginning June 1, 2016 and ending May 31, 2017) after working 20 years in which you were credited with 32,000 Covered Hours of Employment. Your recent work hours were as follows: Plan Year: Covered Hours of Employment Five Consecutive Plan Years Immediately Preceding Retirement Five Consecutive Plan Years Ending with the Plan Year of Retirement June 1, 2016 May 31, ,000 N/A year of retirement 1.0 June 1, 2015 May 31, June 1, 2014 May 31, June 1, 2013 May 31, , June 1, 2012 May 31, , June 1, 2011 May 31, N/A not within five consecutive Plan Years ending with retirement Under the Recency Requirement prior to the April 1, 2017 change, you would not yet qualify because you would only have two Years of Credited Future Service during the five Plan Years immediately preceding the Plan Year in which you retire (five consecutive plan years beginning with the Plan Year June 1, 2011 through May 31, 2012 and ending with the Plan Year June 1, 2015 through May 31, 2016). With the Recency Requirement change, you now would be eligible under the alternative five-year consecutive Plan Year period because you have three Years of Credited Future Service during the five consecutive Plan Years ending with the year of your retirement (five consecutive plan years beginning with the plan year June 1, 2012 through May 31, 2013 and ending with the plan year in which you retire, June 1, 2016 through May 31, 2017). Higher Special Early Hours Requirement for Benefits Earned on or after June 1, 2017 Effective June 1, 2017, the Board increased the hours required to earn unreduced benefits with respect to benefits earned on or after June 1, 2017 from 30,000 Covered Hours to 35,000 Covered Hours. The hours requirement needed to earn unreduced benefits on benefits earned before June 1, 2017 is still 30,000. As a result, there is no change in the Special Early Retirement requirements on benefits earned before June 1, To be eligible for Special Early Retirement (regardless of when benefits are earned), you will still need to have: at least 10 years of Credited Service with either 2 or more years of Credited Future Service or at least 3,000 Covered Hours of Employment, AND at least 3 years of Credited Future Service during the 5 consecutive Plan Years immediately preceding or including the Plan Year of retirement (or during any five consecutive Plan Years ending on or after the later of May 31, 1991, or the date you attain age 55). To be eligible for unreduced benefits under Special Early Retirement on benefits earned before June 1, 2017, you will also still need to have at least 30,000 Covered Hours of Employment when you retire. In contrast, to be eligible for unreduced benefits under Special Early Retirement with respect to benefits earned on or after June 1, 2017, you will now need to have at least 35,000 Covered Hours of Employment when you retire. All Covered Hours will count toward eligibility for Special Early Retirement regardless of when benefits were earned. PSEW 204(h) 4 P age

6 How Might You Be Affected? If you have less than 30,000 or more than 35,000 hours when you retire before age 65, you will be unaffected by this change. If you have between 30,000 and 35,000 hours when you retire before age 65, the benefits you earn on or after June 1, 2017 will now have an actuarial reduction. As a result, you will need to work a few years longer to have all benefits be unreduced at early retirement or to achieve the same target benefit as before. Special Early Example: Assume you are 53 years old on May 31, 2017, have 16 years of credited service including a year of Credited Future Service in each of these years, and have worked 26,800 covered hours under the Plan earning a benefit payable at normal retirement of $2,500 per month as of May 31, You continue to work 1,600 hours per year and your employer contributes $6.43 cents per hour that earns benefits. You are targeting retirement at age 55 on June 1, How will you be affected by the increased hours requirement under Special Early Retirement? At age 55, you have worked an additional 3,200 hours and now have 30,000 Covered hours so you qualify for an unreduced early retirement benefit under the Special Early Retirement provisions on the $2,500 you have earned as of May 31, You have also accumulated an additional benefit of $ (=1,600 hours per year x $6.43 per hour x 1.25% x 2 years). At 55, this additional benefit of $ will not be unreduced for retirement at age 55 because your 30,000 total hours are less than the 35,000 hours that are needed to qualify for unreduced Special Early Retirement with respect to the benefits earned on or after June 1, As a result, this additional benefit would be paid under the Regular Early Retirement provisions which call for a 51% reduction (=3% per year between ages 62 and 65 plus 6% per year between ages 55 and 62) in the $ additional benefit producing an additional early retirement benefit of $ per month [=$ x (1 -.51)]. So, at 55 you would now receive a benefit of $2, per month (=$2,500 unreduced benefit plus $ reduced benefit). If the Special Early Retirement hours requirement had not been increased on benefits earned on or after June 1, 2017, you would have received $2, per month (=$2,500 + $257.20) as an unreduced benefit. Age / Date Hours Benefit Earned Reduction Benefit Payable June 1, / May 31, ,800 $2, $0.00 $2, / May 31, ,200 $ $ $ Total 30,000 $2, $ $2, Note: If you instead decide to work two years longer and retire at age 57, your additional benefits earned would now be $ (=1,600 hours per year x $6.43 per hour x 1.25% x 4 years) and the early retirement reduction would now be 39% (=3% per year between ages 62 and 65 plus 6% per year between ages 57 and 62) on the $ additional benefit producing an additional early retirement benefit of $ per month [=$ x (1 -.39)]. At age 57 you would now receive a benefit of $2, per month (=$2,500 unreduced benefit plus $ reduced benefit), which is more than the $2, per month (shown above) that would have been payable had the 30,000 Special Early Retirement hours requirement been maintained on benefits earned on or after June 1, Age / Date Hours Benefit Earned Reduction Benefit Payable June 1, / May 31, ,800 $2, $0.00 $2, / May 31, ,400 $ $ $ Total 33,200 $3, $ $2, PSEW 204(h) 5 P age

7 For More Information This notice is provided in accordance with Section 204(h) of the Employee Retirement Income Security Act of 1974, as amended, and Section 4980F of the Internal Revenue Code of 1986, as amended. This notice is also a summary of material modifications to the Summary Plan Description. Please keep this notice with your booklet. If you have any questions concerning the benefits described in this notice, or Plan benefits in general, you may visit our website at write the Trust Administration Office at the address indicated below, or call your pension representatives at (206) or (866) extension 3203: Physical Address: 7525 SE 24th Street, Suite 200 Mercer Island, WA Mailing Address: PO Box Seattle, WA Board of Trustees Puget Sound Electrical Workers Pension Trust R&L:hkg opeiu#8 S:\Mailings\ERISA Section 204(h) Notice\F Mailings ERISA 204(h) Notice.docx PSEW 204(h) 6 P age

8 Puget Sound Electrical Workers Trust Funds nd Avenue, Suite 300 P.O. Box Seattle, Washington Phone (206) or (866) Fax (206) Website Administered by Welfare & Pension Administration Service, Inc. December 10, 2014 TO: All Active, Inactive, Vested, Terminated, and Participants in Parity Puget Sound Electrical Workers Pension Trust (the Plan ) RE: Disability Retirement Benefit Change Effective after December 12, 2014 This is a summary of material modifications for the Puget Sound Electrical Workers Pension Trust ( Plan ). This notice describes a change to eligibility for the Disability Retirement Benefits available under the Plan and will be considered an insert to the 2004 edition of the Plan s Summary Plan Description booklet (SPD). Effective for applications for disability benefits received after December 12, 2014, the Plan is amended as described below. Plan Rules Before Amendment: Before the amendment, Plan Section 4.05 (SPD page 73) read as follows: 4.05 Disability Retirement A Participant who: (a) has at least 10 years of Credited Service, and (b) has either (i) two or more years of Credited Future Service, or (ii) at least 3,000 Covered Hours of Employment, and (c) who becomes permanently and totally disabled (as provided in ARTICLE VII) prior to the date he becomes eligible to receive Normal Retirement Benefits is eligible for Disability Retirement Benefits commencing the first month following six full consecutive calendar months throughout which he has been under such disability provided application is made in accordance with Section Disability benefits will not be paid for the first six months of such disability. A Participant who has elected to receive Early Retirement Benefits will not be eligible for Disability Retirement Benefits. Amendment to Plan Section 4.05 The Trustees have amended Plan Section 4.05 to add a new requirement. A participant whose application for a Disability Retirement is received after December 12, 2014, must meet all of the requirements as stated above ((a), (b), and (c)), as well as the following new recency test requirement: has earned a year of Credited Future Service (870 hours) either: o in the Plan Year in which he/she became permanently and totally disabled (as provided in ARTICLE VII); or o in one of the two Plan Years immediately preceding the Plan Year in which he/she became permanently and totally disabled (over)

9 Those participants who meet this new recency test requirement, as well as the existing eligibility requirements, will continue to enjoy the same disability benefits as before. Starting December 13, 2014, Disability Retirement Benefits will no longer be awarded to those participants who meet the prior eligibility requirements but not the new recency test requirement. This change does not affect Disability Retirement Benefits for applications that were received on or before December , or any Disability Retirement Benefits in pay status on this date. The effect of the amendment is illustrated by the following Examples. Example 1 Participant who meets the new qualifications for a Disability Retirement - Participant has 11 years of Credited Service - He has accrued 15,700 Covered Hours of Employment - He becomes permanently and totally disabled January 15, His application for Disability retirement is received at the Administration Office on April 1, He has earned a year of Credited Service in the Plan Year he became disabled, or in one of the two Plan Years immediately preceding. Plan Years (06/01 05/31) Hours Credits 06/01/ /31/ , /01/ /31/2012 1, /01/ /31/2013 1, nd Plan Year preceding disability 06/01/ /31/2014 1, st Plan Year preceding disability 06/01/ /31/ Plan Year he became disabled 01/15/2015 Totals 15, Example 2 Participant who does not meet the new qualifications for a Disability Retirement - Participant has 10 years of Credited Service - He has accrued 16,200 Covered Hours of Employment - He becomes permanently and totally disabled January 15, His application for Disability retirement is received at the Administration Office on April 1, 2015 No - He has not earned a year of Credited Service in the Plan Year he became disabled, or in one of the two Plan Years immediately preceding. Plan Years (06/01 05/31) Hours Credits 06/01/ /31/ , /01/ /31/2012 1, /01/ /31/ nd Plan Year preceding disability 06/01/ /31/ st Plan Year preceding disability 06/01/ /31/ Plan Year he became disabled 01/15/2015 Totals 16, For more information on Plan rules, please refer to the Plan booklet which is available on the website at Keep this Summary with your Plan Booklet This notice should be kept with your Pension Plan booklet. If you have any questions concerning the benefits described in this notice, or Plan benefits in general, call the Administration Office at (206) or (866) , option 2, or write to the address listed above. Administration Office Puget Sound Electrical Workers Pension Trust DMK:hkg opeiu#8 S:\Mailings\Individual Trust Fund Mailings (SMM, Benefit Changes, etc.)\f33\f Mailing Disability Retirement Benefit Change.docx

10 Puget Sound Electrical Workers Trust Funds nd Avenue, Suite 300 P.O. Box Seattle, Washington Phone (206) or (866) Fax (206) Website Administered by Welfare & Pension Administration Service, Inc. Important Notice of Changes to Calculation of Benefits under the Puget Sound Electrical Workers Pension Plan Effective October 1, 2013 Date of this Notice: September 16, 2013 TO: Inside Wiremen and 3rd, 4th, 5th and 6th Period Inside Wire Apprentices Working under the Inside Construction Agreement This notice describes a change to the calculation of pension benefits you earn for work you do under the IBEW Local 46-NECA Inside Construction Agreement, beginning with work you do in October The term Inside Wireman includes the classifications Wireman Gen Foreman, Wireman Foreman, Cable Splicer, Tunnel Pay, Welder, and Journey Wireman. This change does not affect the calculation of pension benefits that someone earns: for work before October 2013; for work performed as a 1 st or 2 nd Period Apprentice; for work under a different NECA Local 46 agreement (for example, work under the Sound & Communication Agreement); or for work outside the jurisdiction of Local 46 (for example, work performed in another state). Under the Plan now, the pension benefits you earn is calculated this way: your monthly benefit is 1.5% of all employer contributions made or required to be made to the Plan on your behalf. Thus, for each month you work, the monthly benefit you earn is increased by an amount equal to the employer contributions on your behalf multiplied by 1.5% (0.015). Example 1 Current Rules. You work as a Journey Wireman in August Your employer makes contributions to the Plan at the rate of $6.18 per hour, for a total of $618. You earned an additional benefit of $9.27 per month ($9.27 = $618 x 0.015) for your work in August Effective October 1, 2013, the Trustees are amending the Plan to change the benefit formula for work you do in October 2013, and in each months thereafter. The employer contribution that is counted to calculate your monthly benefit is reduced by 45 cents per hour for each hourly employer contribution. Example 2 Effective October 1, 2013 You work 100 hours as a Journey Wireman for all of October Your employer makes contributions to the Plan at the rate of $6.63 per hour, for a total of $663. Under the new formula, the hourly employer contribution that is counted when calculating your benefit is $6.18 (= $6.63 $0.45) for a total of $618 for October. You will earn an additional benefit of $9.27 per month ($9.27 = $618 x 0.015) for your work in October If the Plan had not been amended, you would have earned an additional benefit of $9.945 per month ($9.945 = $6.63 x 100 x 0.015).

11 Important Notice of Changes to Calculation of Benefits Puget Sound Electrical Workers Pension Plan Effective October 1, 2013 Page 2 Example 3 Effective October 1, 2013 You work 100 hours as a 3 rd Period Inside Wire Apprentice for all of October Your employer makes contributions to the Plan at the rate of $3.35 per hour, for a total of $335. Under the new formula, the hourly employer contribution that is counted when calculating your benefit is $2.90 (= $ $0.45) for a total of $290 for October. You will earn an additional benefit of $4.35 per month ($4.35 = $290 x 0.015) for your work in October Notice under ERISA 204(h) This notice is required by section 204(h) of the Employee Retirement Income Security Act (ERISA). Summary of Material Modifications This notice is intended to satisfy the requirements of ERISA regarding the summary of material modifications. This notice should be kept with your Retirement Plan booklet. If you have any questions concerning the benefits described in this notice, or Plan benefits in general, call or write the Administration Office at the address and phone number listed above. Administration Office Puget Sound Electrical Workers Trust Funds EBT/MS:hkv opeiu#8 S:\Mailings\Individual Trust Fund Mailings (SMM, Benefit Changes, etc.)\f33\f Mailing ERISA 204(h) Notice.docx

12 Puget Sound Electrical Workers Trust Funds 2815 Second Avenue, Suite 300 P. O. Box Seattle, Washington Phone (206) or (800) Fax (206) Administered by Welfare and Pension Administration Service, Inc. Puget Sound Electrical Workers Pension Plan Summary of Material Modifications October 26, 2006 Background This is a summary of material modifications for the Puget Sound Electrical Workers Pension Plan. This summary describes recent amendments to the Plan. The amendments are necessary to comply with a decision of the United States Supreme Court and the requirements of the Internal Revenue Service. The Plan amendments affect the Plan s suspension of benefit rules. The suspension of benefit rules require the Trustees to stop payment of retirement benefits to a Plan participant who returns to work in certain types of employment. These amendments relate only to retirement benefits that were suspended (were not paid) after June 2004 (or could have been suspended if you had retired after June 2004). As described below, the amendments require the Trust to make retroactive payments. In most cases, these payments are automatic. In one case, however, the Trust will make payments only if you complete and return an Election Form and certain documents to the Trust Office on or before April 26, Please keep your copy of this Summary with your Plan booklet. If you don t have a Plan booklet, call the Trust Office at (206) or (800) to request a copy. You may view or print a copy of the Plan booklet on the internet at Do the recent changes to the Plan affect me? These changes could affect you if you are in Group 1 or Group 2. Note: you could be in both Groups. If you are not in Group 1 and you are not in Group 2, the changes to the Plan do not affect you. You do not need to do anything further. Keep this Summary with your Plan records. Group 1 You are in Group 1 only if you earned benefits under the Plan on or before March 21, If you first earned benefits under the Plan after March 21, 1991, you are not in Group 1. Group 2 You are in Group 2 only if you satisfy two conditions: you earned benefits under the Plan on or before September 16, 1993; AND you are receiving Special Early Retirement benefits (or are eligible for Special Early Retirement after June 2004). If you first earned benefits under the Plan after September 16, 1993, you are not in Group 2. If you are not eligible (and do not become eligible) for Special Early Retirement Benefits, you are not in Group 2.

13 Puget Sound Electrical Workers Pension Plan Summary of Material Modifications October 26, 2006 Page 2 I m in Group 1. Do the Plan changes affect me? If you are in Group 1, there are four ways the Plan changes could affect you. They are described below. Please note this definition: Covered employment means employment for which the employer must make contributions to the Trust on your behalf. 1. You retired, and your monthly retirement benefits payable after June 2004 were suspended (not paid) because you worked in a job that was NOT covered employment. (If your benefits were suspended because you worked 40 or more hours per month in covered employment, this discussion does not apply to you.) The Trust will make a payment to you only if you satisfy all of the following conditions: you retired and began receiving monthly retirement benefits; AND after June 2004 the Trust stopped paying you monthly retirement benefits because you worked over 40 hours per month either: in a job that was not covered employment; OR in a combination of a job that was not in covered employment AND a job in covered employment. The Trust will pay you the unpaid monthly benefits (but not more than the monthly benefits attributable to your service through March 21, 1991) retroactive to July 2004, or, if later, to the date the Trust began to stop payments. The Trust s payment will include any appropriate interest or actuarial increase from July 1, 2004, or, if later, the date the Trust began to stop payments. Example. Grant earned a normal retirement benefit of $1,000 per month through March 21, Grant retired at age 65, and began receiving his normal retirement benefit of $3,000, starting on January 1, In January 2004, Grant returned to work in a job that is not covered employment and works over 40 hours per month in that job for each month through January The Trust paid Grant no benefits from January 2004 through January The Trust resumed paying Grant retirement benefits of $3,000 per month in February On September 1, 2006, the Trust pays Grant a lump sum of $7,000 (= $1,000/month X 7 months (July 2004 through January 2005)) plus interest though September 1, Your retirement application was approved for July 2004 or later, but the Trust didn t begin to pay your monthly retirement benefits because you worked in a job that was NOT in covered employment. (If your benefits were not paid for a month because you worked over 40 hours per month in covered employment, this discussion does not apply to that month.) The Trust will make a payment to you only if you satisfy all of the following conditions: The Trust approved your application for retirement benefits to begin after June 2004; AND the Trust did not begin paying you monthly retirement benefits because you worked over 40 hours per month either: in a job that was not covered employment; OR in a combination of a job that was not in covered employment AND a job in covered employment. The Trust will pay you the unpaid monthly benefits (but not more than the monthly benefits attributable to your service through March 21, 1991) retroactive to July 2004, or, if later, to the date payments should have begun pursuant to your application. The Trust s payment will include any appropriate interest or actuarial increase from July 2004, or, if later, the date payments should have begun pursuant to your application.

14 Puget Sound Electrical Workers Pension Plan Summary of Material Modifications October 26, 2006 Page 3 3. You were eligible to retire, but you did not apply for retirement benefits, and after June 2004 you worked in a job that was not in covered employment (but was employment for which the Trust could have suspended payment of your retirement benefits). (If you worked over 40 hours per month in covered employment, this discussion does not apply to that month.) You can elect to have the Trust make a payment to you only if you satisfy all the following conditions: you were eligible to retire under the Plan after June 2004, but you did not apply for retirement; AND at the same time you worked over 40 hours per month either: in a job that was not covered employment (but was employment for which the Trust could have suspended payment of retirement benefits if you had retired); OR in a combination of a job that was not in covered employment (but was employment for which the Trust could have suspended payment of retirement benefits if you had retired) AND a job in covered employment; AND you submit your election to the Trust Office on or before April 26, If you elect to have payments made to you, the Trust will pay you monthly benefits for each such month (but not more than the monthly benefits attributable to your service through March 21, 1991) retroactive to July 2004, or, if later, the date you first became eligible for retirement. The Trust s payment will include any appropriate interest or actuarial increase from July 2004, or, if later, the date you first became eligible for retirement. How to Elect Payments. To elect to have the Trust make payments, you must complete and return the Election Form that is attached to this Summary on or before April 26, You must attach to the Election Form copies of all documents that show you worked after June 2004 in employment for which the Trust could suspend benefit payments. The Trust will make payments only if you provide the Trust information that satisfies the Trust that, for each month after June 2004 for which you elect a payment, you worked over 40 hours per month either: in a job that was not covered employment (but was employment for which the Trust could have suspended payment of retirement benefits if you had retired); OR in a job that was not in covered employment (but was employment for which the Trust could have suspended payment of retirement benefits if you had retired) and in a job in covered employment. 4. You retire in the future, but you work in employment for which the Trust can suspend payment of your retirement benefits. (If you work over 40 hours per month in covered employment, this discussion does not apply to that month.) If you retire in the future, and you work in employment for which the Trust can suspend payment of your retirement benefits, the Trust will stop paying your full monthly retirement benefit for months in which you work over 40 hours per month in a job that was not covered employment (or in a combination of a job that was not in covered employment and a job that was in covered employment). However, the Trust will continue to pay you monthly benefits that are attributable to your service through March 21, I m in Group 2. Do the Plan changes affect me? If you are in Group 2, there are four ways the Plan changes could affect you. They are described below. Please note this definition: you work in suspendible employment when you work in employment that permits the Trust to suspend (not pay) your Special Early Retirement Benefit. 1. You took Special Early Retirement and your monthly retirement benefits payable after June 2004 were suspended (not paid) because you worked between 1 and 40 hours per month in suspendible employment. (If you worked over 40 hours in suspendible employment in a month, this

15 Puget Sound Electrical Workers Pension Plan Summary of Material Modifications October 26, 2006 Page 4 discussion does not apply to that month.) The Trust will make a payment to you only if you satisfy both of the following conditions: you retired and began receiving monthly Special Early Retirement benefits; AND after June 2004 the Trust stopped paying you monthly Special Early Retirement benefits because you worked between 1 and 40 hours per month (but not more than 40 hours per month) in suspendible employment. The Trust will pay you unpaid monthly benefits retroactive to July 2004, or, if later, to the date the Trust began to stop payments. The amount of benefits the Trust will pay you depends on when you retired: If you retired on or after your 62 nd birthday, the Trust will pay you unpaid monthly benefits (but not more than the monthly benefits attributable to your service through September 16, 1993) retroactive to July 2004, or, if later, to the date the Trust began to stop payments. If you retired before your 62 nd birthday, the Trust will pay you a portion of your unpaid monthly benefits retroactive to July 2004, or, if later, to the date the Trust began to stop payments. The portion of your monthly benefit that the Trust will pay is equal to: the normal retirement benefit your earned through September 16, 1993 minus the normal retirement benefit you earned through September 16, 1993, reduced by onehalf of one percent for each month the date of you Special Early Retirement precedes your 62nd birthday. The Trust s payment will include any appropriate interest or actuarial increase from July 2004, or, if later, the date the Trust began to stop payments. Example. Sarah earned a normal retirement benefit of $1,000 per month through September 13, Sarah retired on June 1, 2003, at age 63 under Special Early Retirement, and began receiving her Special Early Retirement Benefit (equal to her full normal retirement benefit) of $3,200. In March 2004, Sarah returned to work in suspendible employment and works 40 hours per month or less in suspendible employment for each month through February She does not work 40 or more hours per month in suspendible employment. The Trust paid no benefits to Sarah from March 2004 through February The Trust resumed paying Sarah her full Special Early Retirement benefits of $3,200 per month in March On September 1, 2006, the Trust pays Sarah a lump sum of $8,000 (= $1,000/month X 8 months (July 2004 through February 2005)) plus interest though September 1, Example. Jim earned a normal retirement benefit of $1,100 per month through September 13, Jim s 62 nd birthday is November 1, Jim retired on March, , (8 months before his 62 nd birthday) under Special Early Retirement, and began receiving his Special Early Retirement Benefit (equal to his normal retirement benefit) of $3,300. In April 2004, Jim returned to work in suspendible employment and works 40 hours per month or less in suspendible employment for each month through May He did not work over 40 hours per month in suspendible employment. The Trust paid no benefits to Jim from April 2004 through May The Trust resumed paying Jim his full monthly Special Early Retirement benefits of $3,300 per month in March On September 1, 2006, the Trust pays Jim a lump sum payment. The payment is $11,616 plus interest from June The lump sum amount (before adding the interest) is the difference between (a) the monthly normal retirement benefit Jim earned through September 13, 1993, payable for the period July 2004 through May 2005 (= $12,100 = $1,100/month X 11 months) minus (b) the monthly normal retirement benefit Jim earned through September 13, 1993, payable for the period July 2004 through May 2005, reduced by one-half of one percent for each month the date of his Special Early Retirement precedes his 62nd birthday ($11,616, determined as follows: (½% x 8 months = 4% or 0.960; $12,100 x = $11,616)).

16 Puget Sound Electrical Workers Pension Plan Summary of Material Modifications October 26, 2006 Page 5 2. Your Special Early Retirement application was approved for July 2004 or later, but the Trust didn t pay your monthly benefits because you worked in suspendible employment for between 1 and 40 hours per month. (If your benefits were not paid for a month because you worked over 40 hours in suspendible employment, this discussion does not apply to that month.) The Trust will make a payment to you only if you satisfy both of the following conditions: The Trust approved your application for Special Early Retirement benefits to begin after June 2004; AND after June 2004 the Trust did not begin paying you monthly Special Early Retirement benefits because you worked between 1 and 40 hours per month (but not more than 40 hours per month) in suspendible employment. The Trust will pay you the unpaid monthly benefits (but not more than the monthly benefits attributable to your service through March 21, 1991) retroactive to July 2004, or, if later, to the date payments should have begun pursuant to your application. The Trust s payment will include any appropriate interest or actuarial increase from July 2004, or, if later, the date payments should have begun pursuant to your application. The Trust will pay you unpaid monthly benefits retroactive to July 2004, or, if later, to the date Special Early Retirement benefit payments should have begun pursuant to your application. The amount of benefits the Trust will pay you depends on when your Special Early Retirement Benefits would have started: If your Special Early Retirement benefits would have started on or after your 62 nd birthday, the Trust will pay you unpaid monthly benefits (but not more than the monthly benefits attributable to your service through September 16, 1993) retroactive to July 2004, or, if later, to the date Special Early Retirement benefit payments should have begun pursuant to your application. If you retired before your 62 nd birthday, the Trust will pay you a portion of your unpaid monthly benefits retroactive to July 2004, or, if later, to the date Special Early Retirement benefit payments should have begun pursuant to your application. The portion of your monthly benefit that the Trust will pay is equal to: the normal retirement benefit your earned through September 16, 1993, minus the normal retirement benefit you earned through September 16, 1993, reduced by onehalf of one percent for each month the date of your Special Early Retirement would have preceded your 62nd birthday. The Trust s payment will include any appropriate interest or actuarial increase from July 2004, or, if later, to the date Special Early Retirement benefit payments should have begun pursuant to your application. 3. You were eligible to retire under Special Early Retirement, but you did not apply for retirement benefits, and after June 2004 you worked in suspendible employment. You can elect to have the Trust make a payment to you only if you satisfy all the following conditions: you were eligible to retire after June 2004 with Special Early Retirement benefits, but you did not apply for retirement; AND at the same time you worked between 1 and 40 hours per month (but not more than 40 hours per month) in suspendible employment; AND you submit your election to the Trust Office on or before April 26, 2007.

17 Puget Sound Electrical Workers Pension Plan Summary of Material Modifications October 26, 2006 Page 6 If you elect to have payments made to you, the Trust will pay you monthly benefits for each such month (but not more than the monthly benefits attributable to your service through September 16, 1993) retroactive to July 2004, or, if later, the date you first became eligible for retirement. The Trust s payment will include any appropriate interest or actuarial increase from July 2004, or, if later, the date you first became eligible for retirement. How to Elect Payments. To elect to have the Trust make payments, you must complete and return the Election Form that is attached to this Summary on or before April 26, You must attach to the Election Form copies of all documents that show you worked after June 2004 in employment for which the Trust could suspend benefit payments. The Trust will make payments only if you provide the Trust information that satisfies the Trust that, for each month after June 2004 for which you elect a payment, you worked between 1 and 40 hours per month (but not more than 40 hours per month) in suspendible employment. 4. You begin Special Early Retirement Benefits in the future, but you work in suspendible employment. If you begin Special Early Retirement Benefits in the future, the Trust will stop paying your full monthly Special Early Retirement benefit for months in which you work between 1 and 40 hours per month in suspendible employment. However, the Trust will continue to pay you monthly benefits that are attributable to your service through September 16, The amount of benefits the Trust will pay you will depend on when you retire: If you retire on or after your 62 nd birthday, the Trust will pay you full monthly benefits attributable to your service through September 16, If you retire before your 62 nd birthday, the Trust will pay you a portion of your monthly benefits. The portion of your monthly benefit that the Trust will pay will be equal to the normal retirement benefit your earned through September 16, 1993, minus the normal retirement benefit you earned through September 16, 1993, reduced by onehalf of one percent for each month the date of your Special Early Retirement precedes your 62nd birthday. CT/CJ:adg opeiu#8 S:\SHARED SEC\Docs\BenefitChanges\Pension\2006\F33-04 SMM doc 10/24/06 * * * * *

18 PUGET SOUND ELECTRICAL WORKERS PENSION PLAN PART I SUMMARY PLAN DESCRIPTION Effective June 1, 2004

19 WELCOME TO THE PUGET SOUND ELECTRICAL WORKERS PENSION PLAN BE SURE TO READ THIS BOOKLET CAREFULLY. This Pension Plan began on June 1, 1973 in accordance with Section 25 of the bargaining agreement between Local 46, I.B.E.W. and the Puget Sound Chapter of the NECA. The principal purpose of the Puget Sound Electrical Workers Pension Plan is to provide retirement benefits to eligible Participants. In certain circumstances, the Pension Plan also provides disability benefits and death benefits. This booklet is divided into two parts. The first part is the Summary Plan Description (SPD); the second part is the official Plan Document and contains the legal provisions governing the plan. The SPD explains: how your benefit is calculated; when you may retire; the forms of payment the Plan provides; how to apply for benefits; the restrictions and administrative procedures that apply; and detailed examples of benefit calculations. It also explains the conditions that may result in a loss of participation and benefits, and the conditions that must be met for reinstatement of participation and benefits. The SPD summarizes and simplifies the Plan Document provisions, therefore it cannot describe all the restrictions on benefits or exceptions that may be contained in the Plan Document. In the event the provisions of the SPD do not cover your situation, or if any term or provision in the SPD is unclear or ambiguous, the provisions of the Plan Document will govern. The plan described in this booklet applies to Participants retiring on or after June 1, 2004 who completed at least one Hour of Credited Future Service on or after June 1, Benefits for Participants retiring prior to June 1, 2004 and for those individuals retiring after May 31, 2004 who did not complete at least one Hour of Credited Future Service on or after June 1, 2004 are computed under the applicable provisions of the plan previously in effect. You should consult prior booklets and the Trust Administration Office if you have questions about the previous versions of the plan. Refer your questions concerning the Plan to the Trust Administration Office. Telephone contact with the Trust 2

20 Administration Office does not guarantee eligibility for benefits under the Plan or eligibility for benefit payments. Eligibility for benefits under the Plan and eligibility for benefit payments are determined only when a claim is submitted to the Trust. The Board of Trustees has authorized the Trust Administration Office to respond in writing to Plan Participants regarding the administration of the Plan. As a convenience to Participants, the Trust Administration Office will provide oral answers regarding plan administration. However, no such oral communication is binding upon the Board of Trustees. IMPORTANT Only the full Board of Trustees is authorized to interpret the Pension Plan described in this booklet. Only the Board of Trustees may give binding answers, and then only if you have furnished full and accurate information concerning your situation. No Employer or Union nor any representative of any Employer or Union is authorized to interpret the Plan on behalf of the Board nor can such person act as an agent of the Board of Trustees. Trust Administration Office 2815 Second Ave., Suite 300 P.O. Box Seattle, WA (206) or (800)