INSULATORS LOCAL NO. 53 PENSION PLAN. Summary Plan Description. Revised January 1, 2016

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1 INSULATORS LOCAL NO. 53 PENSION PLAN Summary Plan Description Revised January 1, 2016 A Defined Benefit Pension Plan For Participants of the Insulators Local No. 53 Pension Plan September 2, 2016

2 TABLE OF CONTENTS Part I: Part II: Page Insulators Local No. 53 Pension Plan Introduction... 1 Your Responsibilities... 1 The Plan At A Glance... 3 Facts About Your Pension Plan Eligibility and Participation... 4 Contributions... 4 Written Plan... 4 Part III: Definitions... 6 Part IV: Part V: Part VI: Part VII: Part VIII: How You Earn Credited Service And Vesting Service Credited Service... 9 Vesting Service What Types of Benefits Are Paid Pension Benefit Disability Benefit How Your Retirement Benefits are Paid Standard Forms of Benefit Payment Optional Forms of Benefit Payment Notification Regarding Forms of Benefit Payment and Effect on Timing and Amount of Benefits How to Figure Your Pension Benefits 1992 Accrued Benefit and Minimum Distribution Annuity for Certain Participants Your Normal Retirement Benefit Your Early Retirement Benefit Your Late Retirement Benefit Your Vested Retirement Benefit Your Disability Benefit Benefits If You Die Before Retirement 36-Month Death Benefit Month Death Benefit Spouse's Pre-Retirement Survivor Benefit (continued) Insulators Local No. 53 Pension Plan (Summary Plan Description) Page i

3 TABLE OF CONTENTS Part IX: Death Benefits After Retirement Part X: Reciprocal Benefits Page Part XI: Part XII: Other Questions A. Is It Possible I Might Lose My Service And Credits For Benefit Purposes? B. Can I Lose Any Of My Benefits From This Plan? C. May I Contribute To This Plan? D. What Happens If I Return To Work After I Retire And After My Benefit Payments Have Started?.. 43 E. What Happens If I Do Not Name A Beneficiary? F. Can My Benefits Be Affected By A Divorce Or Family Dispute? G. What Happens If I Enter Military Service? H. Can I Expect To Receive Anything From Social Security? Other Important Information Beneficiary Designation and Survivor Benefits Payment of Benefits After Age 70½ Maximum Retirement Benefits Lump-Sum Payment of Small Amounts Rollover of Plan Distributions Plan Termination Plan Administration Claims Procedure Your Rights Under The Employee Retirement Income Security Act Of Pension Benefit Guaranty Corporation Assignment of Benefits Plan Documents Annual Funding Notice Part XIII: Appendices Appendix A (Minimum Distribution Annuity Examples) Insulators Local No. 53 Pension Plan (Summary Plan Description) Page ii

4 INSULATORS LOCAL NO. 53 PENSION PLAN PART I Introduction Dear Plan Participant: One of the most important long range goals for you and your family is to prepare for your financial security during your retirement years. The Insulators Local No. 53 Pension Plan (formerly known as the Asbestos Workers Local No. 53 Pension Plan) was established to help you with this goal. The plan was established for employees covered by a collective bargaining agreement between contributing employers and International Association of Heat and Frost Insulators and Allied Workers Local No. 53. The plan provisions summarized in this booklet were effective on or before January 1, The current plan is a continuation of the plan adopted effective November 1, 1959 and has been amended since November 1, This description has been written in everyday language to summarize the benefits, rights and obligations you have under your pension plan. While every effort has been made to accurately describe the plan, it is important to remember that this booklet is only a summary. If there are any omissions from this summary or any discrepancies between the information in this description and the actual plan document, the plan document will be followed. Copies of the plan document are available at the fund office and you are encouraged to examine them. We hope that you will find this information helpful. If you have any questions, please contact the administrative manager in the fund office for assistance. The fund office is located at 2001 Veterans Boulevard, Suite 201, Kenner, LA and is open during normal business hours Monday through Friday (except holidays) and can be reached by telephoning (504) or by sending a fax to (504) Your Responsibilities As a plan participant, you are responsible for: understanding the plan s provisions; notifying the fund office if you wish to name a beneficiary or change a beneficiary under the plan; notifying the fund office if you change your address; notifying the fund office if you transfer to a category of work which is not covered by the collective bargaining agreement while you are still working for the same employer; notifying the fund office if, after you retire, you return to work in prohibited employment ; providing a record of your covered employment (so that your full benefits can be correctly determined) in the event that your employer fails to report all of your hours or employer contributions required on your behalf and this under-reporting is not revealed by the plan s audit procedures; and Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 1

5 INSULATORS LOCAL NO. 53 PENSION PLAN PART I filing an application for retirement benefits with the fund office at least 60 days in advance of your expected retirement date. Benefits cannot begin until you file an application and it has been approved by the trustees. Sincerely, Board of Trustees INSULATORS LOCAL NO. 53 PENSION PLAN Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 2

6 INSULATORS LOCAL NO. 53 PENSION PLAN PART I The Plan at a Glance Section Condition See Page Eligibility for Participation Contributions Normal Retirement Early Retirement Late Retirement Disability Benefit Vested Retirement Death Benefits Automatic after you work 300 or more hours of service in covered employment in a plan year. Contributing employers pay the amount specified in their collective bargaining agreement or other written agreement. You are eligible for normal retirement at age 65 if you have either celebrated your fifth anniversary as a plan participant or you have earned at least 10 years of service. You may retire before normal retirement age if you satisfy certain age and service requirements. You may continue to work after normal retirement and earn additional plan benefits until you retire. If you have at least 10 years of service, you may be entitled to monthly income from the plan if you become totally and permanently disabled and have earned at least a partial year of service in the plan year of disability or the prior plan year. If you no longer work for a contributing employer and you have at least five years of service (10 years of service unless you have at least one hour of service after December 31, 1997, or you have at least one hour of service after December 31, 1988 in employment in a position which is not included in a bargaining unit represented by the union), you will be entitled to receive pension benefits at your normal retirement age (or earlier if you satisfy certain age and service requirements). Your beneficiary may be entitled to receive payments for 36 months or 120 months, provided you have satisfied certain service requirements before your death. Your spouse may receive a monthly income for life if you are entitled to a vested retirement benefit , 20 12, 24 13, 29 14, 31 13, Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 3

7 FACTS ABOUT YOUR PENSION PLAN PART II Eligibility and Participation You are eligible to participate in the plan if: you complete 300 hours of service for a contributing employer during a plan year (see the definition of "plan year" in Part III; and you are doing work covered by a collective bargaining agreement between a contributing employer and the union, or covered by another written agreement recognized by the trustees; and your employer is required to contribute to the trust fund on your behalf. You automatically become a plan participant upon meeting these requirements. However, in order to receive a benefit from the plan, you must also satisfy the additional age and service requirements for that plan benefit, as described in Part V. After you have become a participant in the plan, if your job status changes such that you meet the definition of special employee or special owner employee (as described in Part III), you will need to apply for permission for continued plan participation within 90 days of becoming a special employee or special owner employee. You should contact the fund office regarding the procedures and requirements for continued plan participation. Contributions Your pension plan is provided at no cost to you. Contributions from contributing employers plus fund earnings pay for the entire cost of your pension plan. The amount of each contributing employer's contribution to the pension plan trust fund is established by the collective bargaining agreement or by another written agreement recognized by the trustees. Employees may not contribute directly to the plan. Written Plan No Reliance on Oral Representation - Eligibility, coverage and benefits are determined solely on the basis of the plan documents and the applicable rules, regulations and procedures of the trust fund. All determinations of eligibility and benefits are based on the precise facts of any particular circumstances including the data on hand with the trust fund, such as employment and/or contribution history. No oral representation, confirmation, or description or explanation of coverage and/or benefits given by any person whatsoever is binding upon the trust fund. General descriptions of coverage and/or benefits may be provided strictly as a courtesy to participants, beneficiaries and/or service providers, but they are not to be considered determinative of whether or not an individual is eligible or covered or whether a particular service will be paid for by the trust fund, but merely general information to be utilized by such persons in their own individual decisions. Final determinations of coverage and benefits are made only upon a full adjudication of written claims, full proof of claims and evaluation of all relevant Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 4

8 FACTS ABOUT YOUR PENSION PLAN PART II data in the hands of the trust fund. Final determinations will be provided to each participant in writing. No oral representation, explanation, confirmation, and/or reports may be relied on by any person whatsoever. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 5

9 DEFINITIONS PART III Throughout this description you will come across certain words or terms which are used frequently and which you should know. These terms will help you understand your benefits better. Remember to keep them in mind as you read the rest of this Summary Plan Description Accrued Benefit - For participants with less than 40 years of service, who were participants before June 1, 1992, and who continue working after satisfying certain age and service requirements, this is the assumed accumulation of their monthly May 31, 1992 frozen accrued benefit, along with a portion of their subsequent employer contributions, for up to five years. More details regarding this accumulated amount and how it is used in determining the amount of an optional form of benefit (Minimum Distribution Annuity) is explained in Part VII and illustrated in Appendix A. 2. Break-in-service - Any plan year in which you are credited with less than 500 hours of service and in which you do not work at least 300 hours in covered employment. See Question A "Is It Possible I Might Lose My Service And Credits For Benefit Purposes?" in Part XI for a further discussion of a break-in-service, and see Vesting in this Part III regarding how you become a vested employee. 3. Contributing Employer - Any employer, including the union and the fund, required to make contributions to the fund, either by the provisions of the collective bargaining agreement with the union or because of another written agreement with the trustees. 4. Contribution - The payment required to be made to the trust fund by a contributing employer on behalf of an employee covered by the collective bargaining agreement or other written agreement in the amount and manner specified in the agreement. 5. Covered Employment - All hours worked for which an employer is required by written agreement to pay contributions to this plan on your behalf or, before November 1, 1959, would have been required to pay contributions to this plan if such hours had been worked after November 1, Credited Service - The service that is used in determining the amount of your pension benefits is called credited service. How you earn credited service is explained in Part IV. 7. Employee - Any person who performs work for a contributing employer and who is covered by a collective bargaining agreement or other written agreement requiring contributions to the fund on his/her behalf. Employee also includes any person who is an employee or officer of the union or an employee of the fund if contributions to the fund are required on their behalf. The term employee also includes special employee and special owner employee. "Special employee" means an individual formerly employed in covered employment either as a journeyman or apprentice; on whose behalf contributions have been made to this plan for a period of at least five years; and (1) who has been promoted by a contributing employer to a supervisory position outside of the collective bargaining unit, or (2) who has become, or in the future may become, an owner-employee by doing business in the corporate form either as a stockholder or officer of the corporation, as a partner with ten percent (10%) or more interest in Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 6

10 DEFINITIONS PART III the partnership, or as a sole proprietor. The special employee described in (2) is more specifically referred to as a special owner employee. A special employee is eligible for continued coverage under the plan if the contributing employer signs a participation agreement naming the special employee as a person for whom the employer will contribute to the plan and the special employee elects said participation. Whenever the term special employee is used, it includes special owner employee. 8. Fund - Contributions are paid to a trust fund where they are held and invested by the trustees. All benefits and expenses of operation are paid from this trust fund. 9. Hour of Service - An hour for which you are paid or entitled to payment by a contributing employer (a) for work performed at a job covered by the collective bargaining agreement or other written agreement, or (b) for periods of time for which no duties are performed (limited to 501 hours in a computation period) due to vacation, holiday, incapacity, lay off, jury duty, military duty or leave of absence. However, see Question G "What Happens If I Enter Military Service?" in Part XI. 10. Participant - You become a participant of the plan after meeting the requirements as described in Part II. You will remain a participant until: (a) (b) (c) all your vesting service and credits have been lost, or all benefits have been paid to you, or you die. 11. Plan Year - The 12-month period from January 1st through December 31st. 12. Prohibited Employment This is employment or self employment (including supervisory work) before normal retirement age that is: (1) with any contributing employer or any subdivision, alter ego or sibling corporation of such contributing employer; (2) in the same or related business as any contributing employer; or (3) by any person in work of a type covered by the plan. There is no restriction as to the covered geographic area before normal retirement age. 13. Retirement - To be considered retired before normal retirement age you must have separated from covered employment or prohibited employment with any and all contributing employers. Once you have reached normal retirement age separation from covered employment is no longer required, and only a written application for benefits is required to commence receiving your normal or late retirement benefit. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 7

11 DEFINITIONS PART III 14. Spouse - In order to be considered a spouse for purposes of receiving a death benefit payable to a spouse, the individual must have been legally married to the participant under the laws of the state in which the marriage was celebrated throughout the one year period before the participant s death. 15. Total and Permanent Disability - You are considered totally and permanently disabled if you have a physical or mental condition that has lasted or can be expected to last not less than 12 months, or to terminate in death; that completely prevents you from engaging in any gainful employment; and for which you are eligible for Federal Social Security disability benefits. You will not be considered disabled and may not be eligible for disability retirement income if your disability: (a) (b) (c) (d) consists of habitual or chronic alcoholism or use of narcotics; or resulted from your engaging in a felonious criminal enterprise; or resulted from an intentionally self-inflicted injury; or resulted from military service or war or enemy actions. 16. Union - International Association of Heat and Frost Insulators and Allied Workers Local No Vesting - Vesting is a form of ownership or right to receive a pension benefit after you leave covered employment, earned by your participation in the plan. You will become 100% vested in your pension benefit (and entitled to a vested retirement benefit) if you have earned and retained at least five years of service (10 years of service unless you are credited with at least one hour of service after December 31, 1997 or you are credited with at least one hour of service after December 31, 1988 in employment in a position which is not included in a bargaining unit represented by the union). Regardless of your number of years of service, if you attain your normal retirement age without losing your credited service and years of service, you will become 100% vested in your pension benefit. See Question A "Is It Possible I Might Lose My Service And Credits For Benefit Purposes?" in Part XI regarding how service may be lost. If you do not become vested in your pension benefit, you will not be eligible to retire and receive a pension benefit from the plan. 18. Vesting Service or Years of Service - Your eligibility for vesting (see Vesting above) is measured in years of service. How you earn a year of service is explained in Part IV. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 8

12 HOW YOU EARN CREDITED SERVICE AND VESTING SERVICE PART IV Your pension plan is technically known as a "defined benefit" pension plan. This means that the benefits payable from the plan at any point in time are stated or defined in terms of a formula. The formula takes into account your years of service with contributing employers. Two types of service can be earned under the plan - credited service and vesting service. (Please note that credit for qualified military service will be provided in accordance with the Internal Revenue Code. To protect your rights, if you left covered employment to enter military service, you should apply for reemployment with your employer within the time prescribed by law, and inform the trustees of your military service. See Question G "What Happens If I Enter Military Service?" in Part XI.) Credited Service Credited service is used to calculate the amount of your pension benefits under the plan. Credited service consists of two parts: credits, and bonus credits. A. Credits for service before November 1, 1959, are determined as the length of your employment, to the nearest 0.1 year, with one or more contributing employers. Credits for service on and after November 1, 1959, are based on the number of hours of service worked in covered employment during a plan year for contributing employers at jobs for which contributions are required to be paid on your behalf. These credits are earned according to the following tables: Credits for Service During the Period November 1, 1959 December 31, 2009 Hours Worked in Covered Employment During Plan Year 1,200 or more 1,080 or more but less than 1, or more but less than 1, or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than 360 Less than 300 Credits Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 9

13 HOW YOU EARN CREDITED SERVICE AND VESTING SERVICE PART IV Credits for Service on or after January 1, 2010 Hours Worked in Covered Employment During Plan Year 1,720 or more 1,540 or more but less than 1,720 1,360 or more but less than 1,540 1,180 or more but less than 1,360 1,000 or more but less than 1, or more but less than 1, or more but less than or more but less than or more but less than 460 Less than 300 Credits B. Bonus credits are in addition to the credits described above. Before January 1, 2001, you will be credited with 0.1 bonus credit, up to a maximum of 0.5 bonus credits in a single plan year for each 120 hours worked in covered employment above 1,500 hours in a plan year. However, bonus credits may not be earned before January 1, 1973 and may be earned in the period August 1, 1993 through December 31, 1997, only if you work at least 300 hours in covered employment in any plan year beginning January 1, 1998, and ending December 31, During the period January 1, December 31, 2009, you will be credited with 0.1 bonus credit, up to a maximum of 1.0 bonus credits in a single plan year, for each 180 hours worked in covered employment above 1,200 hours in a plan year for service after December 31, On and after January 1, 2010, you will be credited with 0.1 bonus credit, up to a maximum of 1.0 bonus credits in a single plan year, for each 128 hours worked in covered employment above 1,720 hours in a plan year for service after December 31, Vesting Service Vesting service is measured in terms of years of service. You become vested in your credited service after you have earned and retained five years of service (10 years of service unless you are credited with at least one hour of service after December 31, 1997 or you are credited with at least one hour of service after December 31, 1988 in employment in a position which is not included in a bargaining unit represented by the union). A. Vesting service for the period before January 1, 1976, is equal to credited service for that period, excluding any bonus credits. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 10

14 HOW YOU EARN CREDITED SERVICE AND VESTING SERVICE PART IV B. Vesting service on and after January 1, 1976 is earned in accordance with the following table: Hours of Service Worked in Covered Employment During Plan Year 1,000 or more 960 or more but less than 1, or more but less than or more but less than or more but less than or more but less than or more but less than or more but less than 360 Less than 300 Year of Service C. Vesting Service for Non-Covered Employment - In determining your vesting service, you may include service with your employer that is in a category of work for which contributions were not required to be made to this plan, if: 1. the service immediately precedes or follows your covered employment and you did not quit, were not discharged, and did not retire from your employer; and 2. the service was performed after your employer began contributing to this plan. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 11

15 WHAT TYPES OF BENEFITS ARE PAID PART V Pension Benefit You will be eligible to receive a pension benefit if you meet all four of these conditions: you have a vested right to the pension benefit; and you have reached the applicable retirement age; and you have retired (see Part III you must have separated from covered employment or prohibited employment with any and all contributing employers*); and you have filed a claim for pension benefits. * To be considered retired for purposes of normal or late retirement requires only an application for benefits and does not require you to separate from covered employment or prohibited employment with any and all contributing employers. Pension benefits are payable monthly, commencing the first day of the month following the later of (1) your satisfaction of the requirements described above, or (2) 30 days after you have filed a completed application for benefits. Normal Retirement Normal retirement benefits are paid after you have reached age 65 and have either attained your fifth anniversary as a plan participant or earned at least 10 years of service. Early Retirement Early retirement benefits are paid before age 65 if you satisfy the requirements in (1) and (2) below: (1) you earn some credited service in a plan year after December 31, 2008 or, before January 1, 2010, you had already earned 30 or more credits (including bonus credits) with some credit earned in each of 30 plan years; and (2) (a) you have at least 25 years of service, or (b) you have attained age 55 and have at least 30 credits (including bonus credits) with some credit earned in each of 30 plan years. Early retirement benefits are also paid if you satisfy the requirements in (1), (2) and (3) below: (1) you earn some credited service in a plan year after December 31, 2008 or, before January 1, 2010, you had already earned 30 or more credits (including bonus credits) with some credit earned in each of 30 plan years; and Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 12

16 WHAT TYPES OF BENEFITS ARE PAID PART V (2) you became a participant in the plan before June 1, 1992; and (3) (a) you have attained age 45 and have at least 20 years of service; or (b) (c) (d) (e) (f) you have attained age 50 and have at least 15 years of service; or you have attained age 60 and have at least 10 years of service; or you have at least 23 years of service and you have at least 25 credits (including bonus credits); or you have at least 20 years of service, with 10 or more years of service being earned before January 1, 1983, and you have at least five bonus credits; or you have at least 25 years of service. The amount of early retirement benefit you are eligible to receive is explained in Part VII, Your Early Retirement Benefit. If you do not earn some credited service in a plan year after December 31, 2008 and, before January 1, 2010, you had not already earned 30 or more credits (including bonus credits) with some credit earned in each of 30 plan years, then you will not be eligible for an early retirement benefit. Late Retirement You may continue to work after your normal retirement date and earn additional plan benefits. No benefits will be paid to you from the plan, however, until you make written application for benefits, except that current regulations may require that your benefits start by April 1 of the calendar year following the year in which you reach age 70½. Vested Retirement If, before becoming eligible for retirement, you stop working for a contributing employer and are vested, you will be entitled to a monthly pension benefit once you fulfill the requirements for retirement. You may elect to have your payments start any time after you reach normal retirement age or, if you also satisfy certain age and service requirements, you may elect to have your monthly payments begin before normal retirement age. Payments which begin before normal retirement age may be reduced, depending upon your age and service when benefits commence. You must file an application in the fund office before your monthly payments will begin. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 13

17 WHAT TYPES OF BENEFITS ARE PAID PART V Disability Benefit If you become totally and permanently disabled before your normal retirement date and have at least 10 years of service, you may be eligible for disability benefits from the plan regardless of your age. You will be eligible to receive a disability benefit if you meet all four of these conditions: have earned and retained at least 10 years of service; and have become totally and permanently disabled, as defined in the plan (see Total and Permanent Disability in Part III); and have earned at least a partial year of service in the plan year in which your disability occurred or in the plan year immediately preceding the plan year in which your disability occurred; and have filed a claim for disability benefits with the fund. If you have less than 10 years of service, you will not be eligible for a disability benefit. Disability benefits are calculated in the same way as early retirement benefits. That is, your monthly accrued benefit commencing at age 65 is reduced to the age at which disability benefits will start. Furthermore, if you receive certain workers compensation benefits, then your benefit will be further reduced by the amount of such award. To apply for disability benefits, you must furnish the Board of Trustees with a copy of the disability award granted to you by the Social Security Administration, Your disability benefit will be payable on the first day of each month. Disability payments will not start until your application has been received and approved by the Board of Trustees. You will receive your first payment effective on the first day of the month following your date of disability. However, no more than six payments will be made for the period before the date you apply in writing for a disability benefit. FOR THIS REASON, YOU SHOULD APPLY FOR YOUR BENEFITS IMMEDIATELY UPON DISABILITY AND NOT WAIT FOR YOUR SOCIAL SECURITY AWARD. Your disability retirement benefits will end if you: (a) recover from your disability, (b) die, or (c) reach your normal retirement date. On your normal retirement date, you will begin receiving retirement payments as described in Part VI. If you recover from your disability before your normal retirement date, your last disability retirement payment will be the payment due before your date of recovery from disability. If you die while receiving disability benefits, your beneficiary may receive a death benefit, as described in Part VIII: Benefits If You Die Before Retirement. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 14

18 WHAT TYPES OF BENEFITS ARE PAID PART V If you are approved for a disability benefit, then you may be required from time to time to certify that you continue to be totally and permanently disabled. Failure to cooperate in this process may result in your disability payments being stopped. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 15

19 HOW YOUR RETIREMENT BENEFITS ARE PAID PART VI Standard Forms of Benefit Payment Retirement benefits are payable in the following forms: If you are not married when you retire, the standard form of benefit is a monthly benefit payment for your lifetime only. This is called a life only benefit. Benefit payments will stop upon your death. If you are married when you retire, the standard form of benefit is the joint and 50% survivor benefit. The joint and survivor benefit provides a monthly payment which is different from the life only benefit, and provides valuable protection for your spouse if you die. The actual amount of your monthly payment depends on your age and your spouse's age at the time you retire. The joint and 50% survivor benefit provides a monthly payment to you for your lifetime. When you die, your spouse (provided you were married throughout the one year period before your death) will receive 50% of the monthly payment you were receiving for the rest of your spouse's life. Because benefits under this method of payment must be paid for two lifetimes, yours and your spouse's, the monthly amount you receive is lower than the amount provided with a life only benefit. In lieu of the standard form of benefit payment described above, you may choose one of the optional forms of payment that are described below. Optional Forms of Benefit Payment If you want your benefits paid to you in one of the optional forms of payment, you must make a timely election (generally no less than 30 days nor more than 180 days before commencement) on the appropriate form provided by the fund office. You may cancel your choice at any time before you retire. 1. Life Only Benefit Option - You will receive a retirement benefit payment each month for your lifetime only. If you are single, the life only benefit is the standard form of payment. If you are married, you may elect the life only benefit option only if your spouse consents in writing and your spouse's written consent is witnessed by a notary public Year Certain and Life Benefit Option - You will receive a reduced monthly benefit each month for the rest of your life. If you are married, you may elect the 10-year certain and life benefit option only if your spouse consents in writing and your spouse's written consent is witnessed by a notary public. Your benefits are guaranteed for a minimum of 10 years (120 payments). That is, if you die within 10 years after your retirement, your beneficiary would continue to receive the same benefit you were receiving for the balance of the 10 years. 3. Joint and Survivor Benefit Option - You will receive a reduced monthly benefit during your lifetime, with a percentage of your monthly benefit being continued after your death to your spouse. You can choose to have 50%, 75%, or 100% of your reduced benefit paid to your spouse for the remainder of your spouse s lifetime. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 16

20 HOW YOUR RETIREMENT BENEFITS ARE PAID PART VI 4. Special Joint and Survivor Benefit Option - You will receive a reduced monthly benefit during your lifetime, with 50% of your monthly benefit being continued after your death to your spouse for the remainder of your spouse s lifetime. You may elect the special joint and survivor option only if your spouse consents in writing and the election is witnessed by a notary public. If your spouse dies before you, then your benefit will increase back to the amount that would have been payable had you elected a life only benefit, and will be payable for the rest of your life. 5. Minimum Distribution Annuity You may elect this optional form of payment only if you were a participant in the plan before June 1, 1992, had earned an accrued benefit as of May 31, 1992, and have satisfied the age and service requirements to receive the Minimum Distribution Annuity as outlined in Part VII. This form of payment provides a monthly benefit payable as a life only benefit and requires spousal consent. You may also elect to receive this Minimum Distribution Annuity, on a reduced basis, in the form of options 2, 3 or 4 discussed above. Once you begin receiving your benefit payments under a particular form of payment, you may not change that form. Under the joint and survivor benefit option, you may not change your joint pensioner. If your spouse dies before you die, you will continue to receive the reduced pension benefit (except as explained under Option 4 above). If you were married when benefits began and you later divorce and remarry, your new spouse will not be covered by the joint and survivor benefit option, since it was calculated and was being paid for you and your former spouse. Note: If you elect one of the joint and survivor options and you die before you have been married to your spouse (your joint pensioner) for one full year, then your spouse will not be eligible for any survivor benefits except as follows: The amount by which your monthly benefits before your death were reduced due to the option will be refunded to your joint pensioner (if alive), otherwise to your beneficiaries or estate. If you die before you retire, your beneficiary will receive a payment as described under Part VIII: Benefits If You Die Before Retirement. If your beneficiary or spouse dies before you retire, any form of retirement benefit payments that you might have elected will be automatically canceled. Notification Regarding Forms of Benefit Payment and Effect on Timing and Amount of Benefits When you are ready to retire, whether you are single or married, a written notice will be provided to you explaining: (a) (b) (c) the terms and conditions of the joint and 50% survivor benefit, your right to make, and the effect of, an election to waive the joint and 50% survivor benefit, the rights of your spouse to consent to elections made by you, (d) the right to make, and the effect of, a revocation of an election to waive the joint and 50% survivor benefit, Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 17

21 HOW YOUR RETIREMENT BENEFITS ARE PAID PART VI (e) (f) (g) the relative values of the various optional forms of benefits under the plan, including the difference in the amount of benefit payable under the joint and 50% survivor benefit form of payment as compared to the amount otherwise payable, the effect of the election of a retroactive annuity starting date, if applicable, and your right, if any, to defer receipt of a distribution, including a description of the consequences of failing to defer such receipt. Generally, this notice will be provided during the period beginning no more than 180 days before, and ending no less than 30 days before, the date determined under the plan provisions that your benefits are to commence (referred to as your "annuity starting date"). If such notice is provided before, but less than 30 days before, your annuity starting date (for instance, in the case of a disability benefit), you (and your spouse, if married) may waive the 30-day requirement, although actual distribution cannot begin earlier than the eighth day after you have received such notice. If for any reason this notice is not provided to you before your annuity starting date, then an additional annuity starting date will be established for you which is after (but not more than 180 days after) the date that the notice is provided. You may then elect, with spousal consent (if applicable), either to have benefits commence on this later annuity starting date, or to have benefits commence on the earlier annuity starting date (which, if elected, will then be referred to as a "retroactive annuity starting date"). If a retroactive annuity starting date is applicable, then you may elect to have your benefits either: (1) determined as of the later annuity starting date with benefits commencing as of the later annuity starting date, or (2) determined as of the earlier retroactive annuity starting date with benefits commencing as of this earlier date. If you elect a retroactive annuity starting date, then you will be entitled to retroactive payments, with interest. Note that, although an annuity starting date may not be more than 180 days after the date that the notice is provided to you, administrative delay may result in the actual distribution of benefits commencing more than 180 days after the notification date. REGARDLESS OF WHEN YOU RETIRE, RETIREMENT BENEFITS WILL NOT BEGIN BEFORE THE FIRST OF THE MONTH FOLLOWING RECEIPT OF YOUR COMPLETED APPLICATION IN THE FUND OFFICE. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 18

22 HOW TO FIGURE YOUR PENSION BENEFITS PART VII 1992 Accrued Benefit and Minimum Distribution Annuity for Certain Participants A 1992 Accrued Benefit is applicable only if you satisfy the following requirements: (1) You were a participant in the plan before June 1, 1992, and (2) You have less than 40 years of service when you satisfy the following conditions but you continue working: you have attained age 50 and have at least 20 years of service; or you have attained age 60 and have at least 10 years of service; or you have at least 23 years of service and you have at least 25 credits (including bonus credits); or you have at least 20 years of service, with 10 or more years being earned before January 1, 1983 and you have at least 5 bonus credits; or you have at least 25 years of service. The portion of your monthly benefit which you had earned through May 31, 1992 is called your "May 31, 1992 frozen accrued benefit". As explained below, a monthly accumulation of your May 31, 1992 frozen accrued benefit is used in determining your 1992 Accrued Benefit. Upon your actual retirement, this 1992 Accrued Benefit is used for determining a Minimum Distribution Annuity. Note that if you do not satisfy the requirements in (1) and (2) above, then you will not have a 1992 Accrued Benefit and the Minimum Distribution Annuity described in the following paragraphs will not be applicable to you. Your 1992 Accrued Benefit is an accumulation, as follows: If you were a participant in the plan before June 1, 1992, then at the time you satisfy the conditions in (2) above, your May 31, 1992 frozen accrued benefit will be assumed to begin to be accumulated on a monthly basis, along with an employer contribution of $0.30 for each hour of service in covered employment during the period that your 1992 Accrued Benefit is accumulating. These amounts will accumulate with interest at an annual rate of 5.00 percent. At the end of five years, or your date of termination or death, if earlier, all additions to your 1992 Accrued Benefit, including interest, will cease and your 1992 Accrued Benefit will be frozen. When you actually retire, your 1992 Accrued Benefit will be used to determine a monthly Minimum Distribution Annuity that you may elect upon retirement. This monthly Minimum Distribution Annuity equals the sum of Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 19

23 HOW TO FIGURE YOUR PENSION BENEFITS PART VII (A) the monthly benefit you could have received had you actually retired when you first became eligible for a 1992 Accrued Benefit (not less than your May 31, 1992 frozen accrued benefit) plus (B) any additional monthly benefit you earn (adjusted for early retirement, if applicable) after your 1992 Accrued Benefit is frozen as though you had returned to work at that time (note that while your 1992 Accrued Benefit is accumulating you will be assumed to not earn any credits or service) plus (C) the monthly benefit that can be provided by your 1992 Accrued Benefit (this monthly benefit will depend upon your 1992 Accrued Benefit, your age when you actually retire, and certain actuarial assumptions which may vary from year to year due to governmental regulations). Examples of calculation of a Minimum Distribution Annuity are shown in Appendix A. Note that your 1992 Accrued Benefit may not be received as a lump-sum. Your Normal Retirement Benefit Your normal retirement benefit, commencing on your normal retirement date and payable for your lifetime only, is based on your credited service and the benefit levels in effect for various periods in which your credited service was earned. The examples that follow assume retirement on or after January 1, 2016 and assume that you meet the requirements for the benefit levels shown in the following chart. (See Question A in Part XI for the schedule of benefit levels in effect for all plan years of service.) Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 20

24 HOW TO FIGURE YOUR PENSION BENEFITS PART VII In summary, as of January 1, 2016, your normal retirement benefit is equal to: $33.50* your credited service earned before January 1, 1984 plus $36.50 your credited service earned January 1, 1984 December 31, 1985 plus $39.50 your credited service earned January 1, 1986 December 31, 1987 plus $42.50** your credited service earned January 1, 1988 December 31, 2004 plus $50.00 your credited service earned January 1, 2005 December 31, 2007 plus $70.00 your credited service earned on or after January 1, 2008 = Your Life Only Benefit at Normal Retirement Age * NOTE: If you had a break-in-service before March 1, 1983, then different benefit levels may apply to your credited service earned before January 1, 1984 that precedes such break-in-service. See Question A "Is It Possible I Might Lose My Service And Credits For Benefit Purposes?" in Part XI for a further explanation and for the schedule of benefit levels in effect for all periods of service. ** NOTE: Unless you have worked 300 or more hours in covered employment in one of the three plan years beginning January 1, 1998 and ending December 31, 2000, this benefit level will be reduced to $32.50 for credited service earned in the period January 1, 1994 December 31, If you satisfy the requirements for a Minimum Distribution Annuity, then this optional form of payment will also be available. Example #1: Normal Retirement Benefit Assume you work until you retire at age 65 with 30 credits of credited service earned as follows: Period in Which Credited Service Earned Before 01/01/ /01/ /31/ /01/ /31/ /01/ /31/ /01/ /31/ /01/ /31/ /01/2008 and later Credits Earned, Including Bonus Credits Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 21

25 HOW TO FIGURE YOUR PENSION BENEFITS PART VII Assume also the following: that you have 30 years of service, that you worked 300 or more hours in covered employment in at least one of the plan years 1998, 1999 or 2000, that you earned one credit each plan year after 12/31/2007, and that you were eligible for a 1992 Accrued Benefit when you were age 55 with 20 years of service and that your 1992 Accrued Benefit is $19, (the five year accumulation of your May 31, 1992 frozen accrued benefit, assumed employer contribution, and interest). Case #1 - If you are not married when you retire, you will receive $1, each month for your lifetime only unless you choose another form of benefit payment. The calculation is as follows: $ credits before 01/01/1984 $ credits 01/01/ /31/1985 $ credits 01/01/ /31/1987 $ credits 01/01/ /31/1992 Subtotal = May 31, 1992 frozen accrued benefit $ credits 06/01/ /31/2004 $ credits 01/01/ /31/2007 $ credits after 12/31/2007 = $0.00 = $0.00 = $79.00 = $ = $ = $ = $ = $ Sum of above = $1, In this instance, the optional Minimum Distribution Annuity is $ each month for your lifetime only (see Appendix A) and is assumed to not be elected. Case # 2 - If you are married when you retire, you will receive the joint and 50% survivor benefit, unless you and your spouse have chosen another form of benefit payment. Assuming your spouse is age 62, that is, three years younger than you, your life only benefit will be multiplied by a percentage factor from the following Table 1. You will receive $1, each month for the rest of your life. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 22

26 HOW TO FIGURE YOUR PENSION BENEFITS PART VII TABLE 1: JOINT AND 50% SURVIVOR BENEFIT FACTORS To determine the percent of the life only benefit you will receive after retirement under the joint and 50% survivor benefit, multiply your life only benefit by the percentage which corresponds with your age and your spouse's age. For example, if you are age 65 and your spouse is age 62, you would multiply your life only benefit by 89%. Your Spouse's Exact Age Your Exact Age When Your Retirement Benefits Start % 90% 90% 89% 88% 87% 86% 56 91% 91% 90% 89% 88% 87% 87% 57 92% 91% 90% 90% 89% 88% 87% 58 92% 91% 91% 90% 89% 88% 87% 59 92% 92% 91% 90% 90% 89% 88% 60 93% 92% 91% 91% 90% 89% 88% 61 93% 93% 92% 91% 90% 90% 89% 62 93% 93% 92% 92% 91% 90% 89% 63 94% 93% 93% 92% 91% 91% 90% 64 94% 94% 93% 92% 92% 91% 90% 65 94% 94% 93% 93% 92% 91% 91% Note: For ages not shown factors are available upon request. The above percentages are rounded for illustrative purposes only. Your Age 65 Life Only Monthly Benefit Joint & 50% Survivor Factor From Table 1 Your Joint & 50% Survivor Monthly Benefit at Age 65 $1, % = $1, After your death, your spouse will receive $ each month for the rest of his or her life. Your Joint & 50% Survivor Monthly Benefit at Age 65 50% Survivor Benefit Your Spouse's Lifetime Monthly Benefit $1, % = $ If your spouse dies before you do, you will continue to receive $1, each month for the rest of your life. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 23

27 HOW TO FIGURE YOUR PENSION BENEFITS PART VII Your Early Retirement Benefit If you do not earn some credited service in a plan year after December 31, 2008 and, before January 1, 2010, you had not already earned 30 or more credits (including bonus credits) with some credit earned in each of 30 plan years, then you will not be eligible for an early retirement benefit and the benefits described in this section do not apply to you. However, if you do earn some credited service in a plan year after December 31, 2008 or, before January 1, 2010, you had already earned 30 or more credits (including bonus credits) with some credit earned in each of 30 plan years, then the benefits and provisions described in this section do apply to you and you may retire before your normal retirement date if you satisfy one of the early retirement requirements listed below (although generally your benefit will be less than if you retired at normal retirement date): (1) Regardless of when you became a participant in the plan, you may retire early if you have at least 25 years of service, or you have attained age 55 and have at least 30 credits (including bonus credits) with some credit earned in each of 30 plan years. (2) If you became a participant in the plan before June 1, 1992, then you may also retire early if (a) (b) (c) (d) You have attained age 45 and have at least 20 years of service; or You have attained age 50 and have at least 15 years of service; or You have attained age 60 and have at least 10 years of service; or You have at least 23 years of service and you have at least 25 credits (including bonus credits); or (e) You have at least 20 years of service, with 10 or more years being earned before January 1, 1983 and you have at least 5 bonus credits; or (f) You have at least 25 years of service. Your early retirement benefit is the larger of: Your total normal retirement benefit (calculated without regard to any Minimum Distribution Annuity), multiplied by an early retirement factor based on your age (examples of these factors are illustrated in the following Table 2). Regardless of the following table, if (i) you earned some credited service during the period January 1, 2009 December 31, 2009 and you have at least 30 credits (including bonus credits) with some credit earned in each of 30 plan years, or (ii) before January 1, 2010 you had earned 30 or more credits (including bonus credits) with some credit earned in each of 30 plan years, then your factor will be when you have attained age 55. Insulators Local No. 53 Pension Plan (Summary Plan Description) Page 24