AMALGAMATED TRANSIT UNION LOCAL 1596 PENSION PLAN SUMMARY PLAN DESCRIPTION. May, 2011

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1 AMALGAMATED TRANSIT UNION LOCAL 1596 PENSION PLAN SUMMARY PLAN DESCRIPTION May, 2011 A. INTRODUCTION This Summary Plan Description briefly describes the provisions of your Pension Plan. Its purpose is to explain to you, in simple and general terms, what your Pension Plan provides. If there is a conflict between the summary plan description and the full plan document, the actual terms of the pension plan in the full plan document will govern. B. GENERAL INFORMATION 1. Name of Plan: Amalgamated Transit Union Local 1596 Pension Plan ("the Plan"). 2. Employer: Central Florida Regional Transportation Authority (the "Employer"). 3. Employer Identification Number: assigned by the Internal Revenue Service to the Board of Trustees of the Plan is and the Plan No. is Union: Amalgamated Transit Union Local 1596, AFL-CIO-CLC ("the Union"). 5. Type of Plan: The Plan is a Defined Benefit Plan. Employees who participated in the prior, now terminated, Money Purchase Plan of the Employer were permitted to deposit their accounts in the Defined Benefit Plan. 6. Plan Year. The Plan Year is the 12 month period beginning each October 1. Records are kept on a fiscal year basis (also October 1 to September 30 th ). 7. Legal Status of the Plan: The Plan is administered pursuant to its Trust Agreement, under the laws of the State of Florida. All of the money paid into the Plan must be held and managed by the Board of Trustees solely in the interest of Plan Participants and Beneficiaries and may be used only for the purposes of providing benefits and paying the reasonable expenses of the Plan. This Plan is subject to the provisions of Florida Statutes et seq., known as the Florida Protection of Public Employee Benefits Retirement Act. 8. Administration of the Plan Board of Trustees. Ultimate responsibility for the Plan is vested in the Board of Trustees (The Board). Trustees are appointed by the Union and by the Employer. The names of the current Trustees are listed at the end of this Summary Plan Description. The office of the Board of Trustees is located as follows: c/o Pension Resource Center 4360 Northlake Blvd., Suite 206 Palm Beach Gardens, FL

2 Third Party Administrator. The Board has delegated certain administrative duties of the Plan to a professional plan administrator: Pension Resource Center 4360 Northlake Boulevard Suite 206 Palm Beach Gardens, FL ATU1596@resourcecenters.com. 9. Actuarial Soundness: The actuary for the Plan determines the contribution requirements to keep the Plan actuarially sound. Findings are set forth in an annual actuarial valuation report. The plan actuary is: Gabriel, Roeder, Smith & Company One East Broward Boulevard, Suite 505 Fort Lauderdale, FL Plan Documents: The Plan is maintained pursuant to the listed documents, which are available for examination at the administrative office of the Board of Trustees upon reasonable request. Copies may be obtained upon request to the Board of Trustees. (a) (b) (c) (d) (e) (f) (g) (h) The Collective Bargaining Agreement between the Employer and the Union. The Restated Agreement and Declaration of Trust and Pension Plan (effective October 1, 2002) with all amendments. The Stipulation of Settlement in Darden, et al. v. Transit Management of Florida et, al. The investment management agreements The actuarial valuation of the Plan. The annual audit of the Plan. The investment policy statement. The Trustee Expense Policy 11. Funding the Plan: The Plan is funded by Employer contributions, Employee contributions, and investment income on Plan assets, and accumulated in a trust fund. Employer and employee contributions are made for the purpose of providing benefits and paying the administrative costs of the Plan. The Employer contributions are irrevocable, which means they are not to be returned to the Employer. 2

3 In addition to the Employer contributions required under the Collective Bargaining Agreement, the Employer is also required to fund certain additional past service benefits that are payable to Employees who were employed by the transit system prior to 1978, and who are the beneficiaries of a settlement of a law suit entitled Darden, et al. v. Transit Management of Florida, et al. Under this court settlement, certain employees are entitled to additional benefits and the Employer is obligated to provide additional funding for these benefits. 12. Investments: As of December 31, 2010, the Plan s investment portfolio was a very diversified portfolio comprised of the following investments: Investment Target Minimum Maximum Approach Allocation Allocation Allocation Large Cap Core, Passive 7% 5% 10% Large Cap Value, Active 7% 5% 10% Large Cap Growth, Active 7% 5% 10% Convertible, Passive 10% 6% 12% Mid Cap Equity, Passive 10% 6% 15% Small Cap Equity 6% 4% 9% International Equity 15% 7% 20% Real Estate 4% 0% 12% TIPS 2% 0% 7% Fixed Income (Bonds) 32% N/A N/A 13. Claims for Benefits: Claims for benefits should be filed with LYNX as follows: Human Resource Department 2500 Lynx Lane Orlando, Florida If a claim is denied, in whole or in part, you have the right to appeal to the Board of Trustees. You must file your appeal within ninety days of the denial of your claim. The full text of the appeal process is in the Plan document. 14. Agent for Service of Legal Process: Pension Resource Center 4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL Phone: Fax: Website: 3

4 C. DESCRIPTION OF PLAN PROVISIONS 1. Participation: The Plan is for employees whose work is covered by the Collective Bargaining Agreement between the Union and the Employer. If you were employed on or before October 1, 1984, your participation began as of that date. Employees hired after October 1, 1984 begin to participate on their first day of employment. If you are not employed in a position in the Collective Bargaining Unit, you cannot participate in the Plan, unless you are on Union business leave or leave for business of the Plan. Part time employees may, but do not have to, participate in the Plan. 2. Vesting: Each plan year that you work 1000 or more hours, you earn a year of vesting service. Vesting service determines your non forfeitable right to benefits. If you have less than five years of vesting service, you are not entitled to benefits from the Plan. If you have five or more years of vesting service, you are entitled to some or all of your benefits in the Plan according to the table below. Once you are vested, the benefits that you have earned over the years cannot be taken away from you. Years of Service Vested Percentage Less than 5 0% or more 100 If you leave the employer, and you have less than five years of vesting service, you are not entitled to benefits from the Plan. If you leave the employer, and you have five or more years of vesting service, you can choose either to leave your contributions in the Plan, or to receive a refund of your contributions. If you leave your contributions in the plan, your benefits are payable at normal retirement age, based on the extent to which you are vested. If you choose instead to receive your contributions, you will not be entitled to any other benefit from this Plan. 3. Break in Service: You earn a full year of vesting service by working at least 1000 hours in covered employment in a Plan Year. If you work less than 500 hours in a Plan Year, you incur a break in service. If you are vested, you do not lose your prior service. If you were not vested, and you incur five or more consecutive breaks in service, you will lose your prior service. Under certain circumstances, you can reinstate your prior service if you return to work and repay the amounts distributed. (See the Plan Document or contact the Administrator for details). 4

5 4. Benefit Credits: The number of Benefit Credit you receive depends upon the number of hours of service you earn each year, in accordance with the following schedule. Hours of Service Units of Benefit Credit Below For plan years October 1, 1978 to September 30, 1984, for each year you worked 1000 hours or more in work covered by the Collective Bargaining Agreement, you earned 1.0 Benefit Credits. Employees covered by the Stipulation of Settlement in the lawsuit of Darden, et al. v. Transit Management of Florida, et al. shall be credited with additional Past Service Benefits in accordance with the terms of the settlement. 5. Past Service: Employees covered by the Stipulation of Settlement in the lawsuit of Darden, et al. v. Transit Management of Florida, et al. shall be credited with additional Past Service Benefits in accordance with the terms of the settlement. 6. Disability Service Credits: Under certain circumstances you may also accumulate Years of Vesting Service and Units of Benefit Credit for periods of disability. See the Plan Document or contact the Plan Administrator for complete details. 7. Contributions The contribution rates have been set under the Collective Bargaining Agreement between the Union and the Employer. The percent of wages paid to the Plan by Employer and Employee in recent years is as follows: Year Beginning Employer Employee October 1 Contributions Contributions % 5.91% % 5.90% % 6.10% % 5.78% % 6.23% These amounts are calculated on the gross payroll. Beginning in 2004, the required employer and employee contributions have varied based on a formula agreed to between the Union and LYNX. That formula, which requires a 65% employer / 35% employee split of any costs that exceed 9.75% of payroll, is still part of the collective bargaining agreement. 5

6 8. Return of Employee Contributions: If you terminate your employment before you become vested, you are entitled to repayment in full of your employee contributions, with 5%interest. If you choose the Enhanced Benefit Option, you can also get your additional contributions back. You do NOT receive any contributions to the plan made by the employer on your behalf in your return of contributions. 9. Benefits: (a) General Rules: Retirement benefits are calculated by multiplying your average annual compensation (five highest plan years), the number of Units of Benefit Credit that you earned, and the benefit multiplier. (b) Benefit Multiplier: The benefit multiplier is 2.13%. Members may elect to contribute an additional 2.5% or 5.0% of pay in exchange for a higher multiplier, 2.38% or 2.63%, respectively, to apply to those years for which the higher contribution is made. Such elections are irrevocable. (c) (d) (e) Average compensation: Average compensation is the average of your gross earnings over your five highest years of employment with LYNX. Normal Retirement: You may receive an unreduced retirement benefit at age 58, if you have 20 years of vesting service, or at age 62, regardless of years of vesting service. Your normal retirement benefit is calculated by multiplying the Benefit Credits times your applicable benefit multiplier, times your average compensation. Early Retirement: You may receive a reduced retirement benefit at age 55, and have earned 10 years of vesting service. The amount of your Early Retirement Benefit is the amount payable at age 62 reduced for each month of retirement prior to age 62, in accordance with the following schedule: Early Retirement Reduction Factors Based on Age and Years of Service Age At < 20 Years 20+ Years Retirement of Service of Service % 20.0% % 13.3% % 6.7% % 0.0% % 0.0% % 0.0% % 0.0% % 0.0% 6

7 (f) Disability Retirement: You may be eligible to receive a Disability Retirement Benefit if you have earned ten years of vesting service and you are disabled as defined in the Plan. Your Disability Retirement Benefit is calculated in the same way as a Normal Retirement Benefit (with no reduction based on your age). Please contact your Plan Administrator for further details concerning Disability Retirement. (g) (h) Enhanced Benefit Option: As stated under Member Contributions, above, the Plan offers an option where you may contribute an additional portion (2.5% or 5.0%) of your wages to the Plan, in exchange for a higher benefit multiplier, which will apply for the same years in which you contribute at the higher amount. After deductions begin for this option, you may not revoke your selection. DROP Plan: the Plan also offers a Deferred Retirement Option Plan (called a DROP Plan). If you are eligible to retire, you can enter the DROP. If you enter the DROP, you may retire under the pension plan, continue working for up to five years for LYNX, and have your monthly pension payment accumulated in an account in your name while you continue working. Payments to the DROP accumulate with earnings. You may choose either of the following options: i. Fund Rate Option. Your DROP account is credited or debited with the same percentage as the net investment return earned (or lost) by the Fund as a whole. ii. Money Market Option. Your DROP account is credited with the net investment yield received by the Fund from a money market mutual fund or bank or trust company short term investment fund ( STIF ) chosen by the Board based upon the recommendation of the consultant. Each DROP participant shall select one of the options upon enrolling in the DROP and may change the election quarterly by giving notice to the Plan s administrator at least 15 days before the beginning of any calendar quarter. When you enter the DROP, you do not accrue any further benefits, and are treated as a retiree. You must leave LYNX employment at the end of your five years in the DROP. When you leave LYNX employment on or before the end of the five years, you will receive the accumulated DROP account balance, payable as a lump sum, and then commence receiving your monthly retirement benefit from that point forward. (i) (j) SHARE Plan: Under the SHARE option, you may contribute an additional portion of your wages (3% or 6%) which will be invested with the pension fund, but paid to you at retirement as a lump sum, in your name. Death Benefits: The plan provides benefits to survivors on death of the participant. The type of benefit payable depends on a number of factors. See the Plan Document for complete details. 7

8 10. Survivor Payments: You may select an option which will pay part of your pension to a beneficiary who survives you. If you are married, the automatic benefit is in a form that covers you and your spouse, unless you and your spouse choose another form of benefit. You can choose various options that will pay a benefit to you, during your life, and to your spouse for life if you die before your spouse. There are several survivor options available, including a 100% joint and survivor option, a 75% option, a 50% option, and the pop-up option, which benefits you if your spouse or beneficiary dies before you do. 11. Lump Sum Payments: The Trustees may pay your pension benefit in one lump sum if the present value of your pension benefit does not exceed $6, Otherwise, there are no lump sum benefits under the Plan, except for SHARE and DROP participants, and for some death benefits. 12 Change of Beneficiary After Retirement: After payment of retirement benefits has commenced, a retiree may change his or her designation of joint annuitant or beneficiary no more than two times in a lifetime. Upon receipt of a completed change of joint annuitant form, the Board shall adjust the member s monthly benefit by application of actuarial tables to ensure that the benefit paid is the actuarial equivalent of the present value of the member s current benefit. 13. Money Purchase Plan Benefits: Any Employee who participated in the Employer's prior Money Purchase Plan, that was terminated as a result of the Darden lawsuit may invest his or her account through this Plan and is fully vested in such Money Purchase Plan benefits. The employee will receive payment of such funds, plus 7% interest, upon retirement or termination of employment. D. BOARD OF TRUSTEES: 1. Appointed by Union Robert Doane Tom Lapins Frank Luna 2. Appointed by Employer Lisa Darnall Albert Francis, II Edward Johnson 8