How Do You Become a Participant in the Plan? Who Pays for the Plan?...

Transcription

1 AMERICAN BAKERS ASSOCIATION RETIREMENT PLAN SUMMARY PLAN DESCRIPTION October 2012

2 TABLE OF CONTENTS The ABA Plan How Do You Become a Participant in the Plan?... 4 When Do You Become a Participant? Who Pays for the Plan? What Are the Retirement Benefits Provided by the Plan?... 5 How Does Working Time Count? Credited Service... 6 Vesting Service... 7 Is it Possible to Lose Credited Service? What is the effect of an Absence on Vesting?... 8 When You Can Retire Normal Retirement... 8 Early Retirement... 9 Disability Retirement... 9 Retirement After If You Leave Your Employer Before Retirement How Your Benefit is Calculated Normal Retirement Early Retirement Deferred Retirement Disability Retirement Vested Benefits Benefit Increases Do You Need Help Calculating Your Benefit? What Are Your Benefit Payment Options? Normal Forms of Payment Optional Forms of Payment Small Payments How Do You Select A Benefit Option? If You Die Before Retirement Reemployment After Retirement Transfers Between Employers

3 TABLE OF CONTENTS (CONT D.) Commencement of Payments Required Date for Commencement of Payments Taxation of Contributions and Benefits Limits its on Receiving Benefits From More Than One Plan What Is the Claims Review Procedure? Review by the Board of Trustees of Decisions Denying Benefits Plan Governance Plan Termination Participants Rights Under ERISA Pension Guarantees Top Heavy Provisions Your Responsibilities Other Important Information Index

4 The ABA Plan The American Bakers Association ("ABA") Retirement Plan is a defined benefit pension plan sponsored by multiple employers and governed by a single Board of Trustees and a single Plan document. The Plan is open to ABA baker and allied members. You can obtain a complete list of employers sponsoring the Plan from the Plan Administrator upon written request. The Plan is designed and intended to operate in a uniform, nondiscriminatory manner in accordance with the requirements of ERISA and the Internal Revenue Code. The Plan was amended and restated as of October 1, 1976 to conform to the requirements of the Employee Retirement Income Security Act ("ERISA"). It is amended and restated periodically to conform to ongoing developments in the law, including, but not limited to: Heroes Earnings Assistance and Tax Relief Act of 2008 (HEART) Worker, Retiree and Employer Recovery Act of 2008 Pension Protection Act of 2006 Pension Funding Equity Act of 2004 Economic Growth and Tax Relief Reconciliation Act of 2001 Uniformed Services Employment and Reemployment Rights Act (USERRA); These revisions are included in this booklet. However, this booklet is not a substitute for the official Plan document, which controls any questions that may arise. You may obtain a copy of the Plan document from the Plan Administrator (see Other Important Information ) for a nominal cost. How Do You Become a Participant In the Plan? You are a Participant in the Plan if: contributions to this Plan are being made on your behalf by your employer; and your employer is a Participating Employer in this Plan for a class of employees in which you are included. If you are covered by a collective bargaining agreement which governs retirement benefits, you are not covered by the Plan unless the collective bargaining agreement specifically makes this plan applicable to you. Your employer may choose to exclude a defined class of non-union employees from Plan coverage through its written agreement adopting the Plan. 4

5 When Do You Become a Participant? There is no minimum age requirement for participation in the Plan. Employees for whom Participating Employers made contributions to the plan before October 1, 1976 and were making contributions on that date are automatically Participants in this Plan. For those who began work with a Participating Employer after September 30, 1976, Plan participation begins when your Employer begins making weekly contributions on your behalf. There is no minimum service requirement to become a participant, but you must attain service requirements discussed below in order to receive a retirement benefit. Who Pays For the Plan? The entire cost of this Plan is paid by the Participating Employers. No employee contributions are required or allowed. Plan assets are held in Trust for the exclusive benefit of Participants. If the Plan as a whole (or your Employer's participation) should ever terminate, after all benefits are paid, any surplus assets may be returned to the contributing Employers. Any shortfall is the responsibility of the Participating Employers. What Are the Retirement Benefits Provided by the Plan? This Plan is known as a "defined benefit" plan because it is designed to produce a specific (or "defined") monthly benefit based on the amount of money your Employer pays into the plan each week. The amount of benefit does not fluctuate according to the value of any investments. The monthly benefit is calculated by reference to three separate figures: Your years of Credited Service (for most employers, up to a maximum 25 years)."credited Service" is explained in the following section, "How Does Your Working Time Count?"; the average weekly rate of contributions (as determined by your Employer) made on your behalf by your Employer in your final year of Credited Service; and the "benefit multiplier" approved by the Trustees of the Plan for all Participants. This is a factor based upon the current and projected availability of Plan assets. The multiplier is currently 62 for credited service earned in the ABA Plan. Participants who retired before June 1, 2000 have benefits calculated under a slightly different formula. You will be notified if the multiplier increases in the future. Multiplier increases depend on the Plan's economic performance and the cost of providing benefits. Future increases cannot be predicted and are not guaranteed. 5

6 Examples of the monthly benefits available at retirement and instruction on how to calculate your benefits are explained in the section "How Your Benefit is Calculated". Benefits received under this plan are in addition to any amounts you may receive from Social Security. Neither is reduced because of payment from the other. How Does Your Working Time Count? The amount of time you work during which contributions are made on your behalf counts in several important ways. First, years of service with your Participating Employer determine whether you are eligible for benefits. Second, they are used to determine the amount of your benefit. In addition, if you leave covered employment before retirement, years of service are used to determine whether your benefit is "vested," i.e., cannot be lost even if you leave covered employment before your retirement age. Credited Service and Vesting Service are explained in this section. Credited Service "Credited Service" is a term used to describe how the Plan determines the number of years that will be used in calculating your benefits at retirement. The maximum number of years of service for which you can receive Credited Service is 25, unless your employer has made a special provision in its agreement with the Plan for a higher amount. As a rule you receive 1 year of Credited Service for each Plan Year (October 1- September 30) of continuous employment with your Employer during which your Employer made contributions to this Plan on your behalf. A Plan Year of continuous service is one in which you work a full 52 weeks (including paid leave). The maximum amount of Credited Service you may earn in 1 year is 52 weeks. Weeks of service are record weeks for which you are directly or indirectly paid or entitled to payment from your Employer, and for which your Employer makes contributions to the Plan. This includes vacation time, holidays, jury duty, paid leaves of absence, paid sick time, periods of back pay and periods during which you receive Worker's Compensation, but not in excess of the maximum of 52 weeks in 1 Plan Year. If necessary to prevent a break in service (explained in Is it Possible to Lose Credited Service? What is the effect of an Absence on Vesting? ), it may also include up to 501 hours of maternity or paternity leave. For employees for whom records of hours worked (such as payroll records) are kept, a record week is one in which at least 20 hours of actual or scheduled work are worked in at least 3 days. For employees for whom hourly work records are not required, a record week is a calendar week for which payment is made or is one during which 3 days of work are recorded. Unpaid family or medical leave under FMLA does not count as Credited Service. Military duty generally does not count except where your Employer has chosen to treat it as qualified military duty under USERRA. You receive Credited Service for years of continuous service with your Employer (or its baking industry affiliate) before your Employer joined the Plan if your Employer begins making contributions for you as of the date the Employer joins the Plan. 6

7 You also receive partial credit for Plan Years in which you worked less than 52 weeks, provided you worked at least 10 weeks and your employer made the required contribution on your behalf. 1 Thus, if you worked 26 weeks for which contributions were made, you would receive one-half year of Credited Service, e.g.: Weeks worked = 26 = 1 Total weeks in a Plan Year 52 2 If you work less than 10 weeks in a Plan year, you will not receive Credited Service for that year. An exception is the year in which you retire. For that year, even if contributions are made for less than 10 weeks, you will still receive partial credit. The Plan does not recognize Credited Service for periods during which your Employer made no Plan contributions for you after joining the Plan. It is possible to lose Credited Service if you are absent from work for an extended period and Employer contributions cease during that period. For further information, see Is it Possible to Lose Credited Service? What is the effect of o f an Absence on Vesting?. Vesting Service "Vesting Service" is a term used to determine your eligibility for benefits and how your benefits may be affected if you leave or are terminated from your employment before you retire. Under current law, once you have 5 years of Vesting Service you are guaranteed a Normal Retirement benefit starting at retirement age, even if you are no longer in covered employment at the time you retire. (See "Normal Retirement" and "If You Leave Your Employer Before Retirement"). You are also entitled to a pension under the Plan if you have completed at least 15 full years of Credited Service and have attained your 47th birthday when you leave employment with your Employer before retirement. As explained in "Early Retirement" under When You Can Retire, if you have left employment before Normal Retirement and have at least 5 years of Vesting Service and fifteen years of employment with your Employer, or, alternatively, 10 years of Credited Service under the Plan, you are eligible for Early Retirement benefits starting at age 55. (Early Retirement benefits are less in amount than Normal Retirement Benefits because they are paid out over a longer period of time.) Since 1976, Vesting Service is calculated differently from Credited Service. For each year before October 1, 1976 (if you were at least age eighteen) you earned 1 year of Vesting Service for each year in which you earned a year of Credited Service. After October 1, 1976, you earn a year of Vesting Service for each year after your eighteenth 1 Credit for Participants who were in the Plan before October 1, 1976, the effective date of ERISA is computed according to the Plan as it existed prior to the ERISA effective date. For service before October 1, 1976, you receive no credit if you worked less than 13, rather than 10 weeks. 7

8 birthday during which you work at least 20 Weeks of Service after the date your Employer joined the ABA Plan. Credit is not given for more than 1 year of Vesting Service for any Plan Year. Since a full year of Credited Service is one in which you work 52 weeks, you can receive a full year's Vesting Service but only partial Credited Service for the same year if you work more than twenty weeks, but less than a full year. Service before your Employer joined the Plan (or extended its coverage to a group or classification of employees that includes you) and began making contributions for you does not count as Vesting Service even though you may receive Credited Service for those years. All years of employment during which your employer maintained the Plan will count toward Vesting even if you leave Plan coverage. Is It Possible to Lose Credited Service? What Is The Effect of an Absence on Vesting Service? Under the current break in service rules, you can lose your Credited Service if you have fewer than 5 years of Vesting Service and you incur a 5-year "Break in Service." A 5-year Break in Service occurs when, in each of 5 consecutive Plan Years (October 1- September 30) you complete 10 weeks of service or less (13 weeks or less for years before October 1, 1976). 2 You can also lose Vesting Service if your break is 5 or more years and equals or exceeds your total years of Vesting Service before the break. If you return to covered employment before 5 years you will not lose either Credited or Vesting Service for that break. If you anticipate a lengthy absence from work you may wish to consult the Plan Administrator about the effect on your entitlement to a pension. There are laws governing certain types of leave (e.g., maternity, paternity, active military or reservist duty, leave for a job injury or Family and Medical Leave) which may protect you from loss of Credited Service. Please make sure you and your Employer notify the Plan if you take an extended leave for one of these reasons, and again when you return from such leave. Remember: Once you have 5 years of Vesting Service, you can't lose Credited Service by reason of a Break in Service. But if you do not have 5 years of Vesting Service and you have a lengthy Break in Service, you may lose both Vesting Service and Credited Service for those years. When You Can Retire Normal Retirement To be eligible for Normal Retirement, you must meet both of the following conditions at the time you retire: 2 The number of years of continuous Breaks in Service which can result in loss of Credited Service has been increased by law from 3 to 5. For past years, a three-year continuous Break or longer may affect your Credited Service. Consult your Plan Administrator 8

9 you are age 65 and you have reached your fifth anniversary of participation in the Plan 3, and your Employer has made Plan contributions on your behalf for at least six months. See "How Your Benefit is Calculated" for examples of Normal Retirement benefits. If you are not working for a Participating Employer when you reach Normal Retirement Age, you will be eligible for a benefit only if you have 5 years of Vesting Service (see "If You Leave Your Employer Before Retirement"). Early Retirement To be eligible for Early Retirement you must fulfill all of the following conditions at the time you retire: you are age 55; your Employer has made Plan contributions on your behalf for at least six months; and you must have at least 5 years of Plan participation (i.e., years which qualify as Vesting Service) and 15 years of employment with your Employer, or 10 years of Credited Service. For additional information on "Vesting Service" and "Credited Service" see How Does Working Time Count. If you are not working for a Participating Employer when you reach Early Retirement Age, you will be eligible for this benefit only if you have 5 years of Vesting Service and 15 years of employment or 10 years of Credited Service. The Early Retirement benefit is calculated the same way as the Normal Retirement Benefit and is then reduced 1/4 of 1% for each month your retirement precedes age 65. See "How Your Benefit Is Calculated", for examples of Early Retirement benefits. Disability Retirement You are eligible for Disability Retirement at any age if you meet all of the following conditions: you have 5 years of Credited Service which qualify as Vesting Service and 15 years of employment with your Employer, or 10 years of Credited Service. For additional information on "Vesting Service" and "Credited Service" see How Does Working Time Count. 3 If you do not have 5 years of plan participation but have attained age 65, with 6 months of plan contributions, you may still be eligible if you have 10 years of Credited Service. 9

10 your employer has made Plan contributions on your behalf for at least six months; you were not "disabled" (at the time your Employer joined the Plan; you are "disabled" at the time you terminated employment with an ABA Plan Employer and have terminated employment with an ABA Plan Employer because of your disability. A disability certificate from the Social Security Administration may be accepted as proof of disability, but if you have not obtained one, you can ask the Plan to decide whether you are "disabled" based on medical evidence you submit. Disabled means unable to engage in any gainful employment because of your disability. Partial disability does not entitle a participant to a Disability Retirement Benefit. From time to time, the Trustees may require a doctor's statement or other written evidence that your disability has continued to age 65 (such as a disability certificate from the Social Security Administration). If you don't provide this required proof when requested, your benefit may be suspended. Disability Retirement Benefits are currently 3/4 of your Normal Retirement benefit (based on your Credited Service up to your date of retirement on disability, and before calculating any reduction for any survivor benefit). 4 See "How Your Benefit Is Calculated" for examples of Disability Retirements benefits. If you are receiving a Disability Retirement benefit at the time you reach Normal Retirement Date, your benefit will increase to the Normal Retirement amount. Retirement After Age 65 (Deferred Retirement) If you continue to work beyond age 65 (or Normal Retirement Date, if that is later), your benefit will be calculated based on your total Credited Service and average contribution rate in effect during the Plan Year before you retire. Your Normal Retirement benefit will be increased for Deferred Retirement based on your age at the time you commence benefits and: If you retire after attaining age 65 and prior to attaining age 70.5 your benefit will be increased by 1% (0.01) for each month that the Deferred Retirement Date succeeds the participant's Normal Retirement Date. If you retire after attaining age 70.5 and prior to attaining age 75 your benefit will be increased by 1% (0.01) for the first 66 months after Normal Retirement (Age 65 to 70.5) and 1.5% (0.015) for each additional month the Deferred Retirement Date succeeds the participant's Normal Retirement Date. 4 This has been increased from 2/3, which applied to participants who became disabled on or before June 1,

11 If you retire after attaining age 75 then your benefit will be increased by 1% (0.01) for the first 66 months after Normal Retirement (Age 65 to 70.5) and 1.5% (0.015) for the next 54 months (Age 70.5 to 75) and 3% (0.03) for each additional month that Deferred Retirement Date succeeds the participant's Normal Retirement Date. For an example of how Deferred Retirement benefits are calculated see "How your Benefit is Calculated". You will not receive a pension while still working with one rare exception 5, unless you have already retired, begun to receive a pension and are returning to covered employment. Remember that the maximum amount of Credited Service that will be used in calculating benefits is 25 years, regardless of how long you work, unless your Employer has specifically elected otherwise. "Credited Service" is explained in How Does Working Time Count?. If You Leave Your Employer Before Retirement If you leave covered employment on or after October 1, 1988, for a reason other than death, disability, or retirement, you are entitled to a benefit at retirement age (Normal or Early) if you meet all of the following conditions: (for a Normal Retirement benefit) you have completed 5 years of Vesting Service; your Employer has made weekly contributions on your behalf for at least six months; (for an Early Retirement benefit) you have completed 5 years of Credited Service and 15 years of employment with your employer, or 10 years of Credited Service. For additional information on "Vesting Service" and "Credited Service" see How Does Working Time Count. NOTE: Participants who separated from service before October 1, 1988 need 10 years of Vesting Service to be entitled to any benefit. Participants who separated before October 1, 1976, are covered by different rules; please contact the Plan Administrator if these circumstances apply to you or if you have any questions regarding your benefits. The monthly benefit payable equals 3% of your projected Normal Retirement benefit for each year of your Credited Service, not to exceed 100%. The benefit will be greater than that if you are at least 47 years old and have 15 years of Credited Service. If, at the time you leave covered employment, you are at least 47 years old and have 15 years of Credited Service, your benefit will be calculated according to the Normal Retirement rement formula, as shown under How Your Benefit is Calculated. Otherwise the formula used is discussed under Vested Benefits. 5 This is a change from the prior rules. See Required Date of Commencement of Payments. 11

12 The average weekly contribution rate used to calculate the Normal Retirement benefit is that in effect for the year before you left covered employment. See, "How Your Benefit is Calculated" for examples of vested benefit calculations. Improvements in Plan benefits (such as multiplier increases) that are made after you left covered employment generally do not apply to terminated Participants. If you do not have 5 years of Vesting Service when you leave covered employment, you are not entitled to a benefit upon reaching Normal or Early Retirement age, unless you are subsequently re-employed without loss of Vesting and Credited Service and at that time meet all eligibility requirements. See "Is It Possible to Lose Credited Service? What is the Effect of an Absence on Vesting Service" for additional information. How Your Benefit Is Calculated Your monthly pension benefit is based on a formula which takes into account your years of Credited Service (up to 25) and the average rate of contributions your Employer pays into the Plan each week during your last year of Credited Service. Your Employer can tell you your "Weekly Employer Contribution Rate," which may vary between Employers or different classifications of employees working for a single Employer. The formula for employees who retire after June 1, 2000 is: 62 * Your years of Credited Service * Your weekly Employer 25 Contribution Rate This formula yields a monthly benefit payable in equal monthly amounts for your lifetime ("Life Annuity"). The formula does not reflect reductions which will be taken for Early Retirement, spouse's or survivor's benefits. Note that if you are married, this benefit amount will automatically be recalculated to reflect your benefit and your spouse's benefit ("Qualified Joint and Survivor Annuity") unless you and your spouse elect otherwise (see "What Are Your Benefit Payment Options?" for additional information). Normal Retirement Assume you retire today at age 65 (Normal Retirement Age), that you have 25 years or more of Credited Service, and that your Employer contribution rate is $8 per week. Your benefit before computation of any spouse or survivor benefit would be calculated like this: 62 * (25/25 25/25) * $8 = $496 per month for life If you had only 20 years of Credited Service, your benefit would be calculated like this: 62 * (20/25 20/25) * $8 = $386 per month for life If you had only 15 years of Credited Service, the calculation would be calculated like this: 62 * (15/25 15/25) * $8 = $ per month for life 12

13 The maximum years of service for which you can receive credit under the Plan is 25 years unless your Employer has made special provision in its agreement with the Plan for a higher amount. Early Retirement If you retire early, the regular formula (62 x Years of Credited Service/25 x Employer Contribution Rate) is reduced by 1/4 of 1% (.0025) for each month you retire early. The Early Retirement formula looks like this (before any reduction for spouse or survivor benefits): Normal Formula - [.0025 * (# of months you retire early) * (Normal Formula)] Assume you retire at age 60 (5 years, or 60 months, early). Also assume that you have 25 years of Credited Service, and that your employer contribution rate is $8 per week. Your monthly benefit would be calculated like this: (62 * 25/25 * $8) - [(.0025 * 60) * (62 * 25/25 * $8)] = $ per month for life The reduction taken in your monthly benefit for Early Retirement continues after you have reached age 65 for your lifetime and will also affect the amount of any spouse or survivor benefit. Deferred Retirement Assume you retire today at age 68, that you have 25 years or more of Credited Service, and that your Employer contribution rate is $8 per week. You will be retiring 36 months after you Normal Retirement Date (Age 65). Your benefit before computation of any spouse or survivor benefit would be calculated like this: [(62 * 25/25 * $8) * (0.01 * 36 months)] + (62 * 25/25 * $8) = $ per month for life Now assume you retire at age 72 (84 months after Normal Retirement Date) with 25 years or more of Credited Service, and your Employer contribution rate is $8 per week. [(62 * 25/25 * $8) * (0.01 * 66 months)] + [(62 * 25/25 * $8) * (0.015 * 18 months)] + (62 * 25/25 * $8) = $ per month for life 13

14 Now assume you retire at age 76 (132 months after Normal Retirement Date) with 25 years or more of Credited Service, and your Employer contribution rate is $8 per week. Disability Retirement [(62 * 25/25 * $8) * (0.01 * 66 months)] + [(62 * 25/25 * $8) * (0.015 * 54 months)] + [(62 * 25/25 * $8) * (0.03 * 12 months)] + (62 * 25/25 * $8) = $1, per month for life If you meet eligibility requirements, your monthly Disability Retirement benefit is 3/4 of your Normal Retirement benefit. Disability Retirement benefits are only in effect before age 65; when you reach age 65, full Normal Retirement benefits are payable. Assume you became disabled at age 60 with 20 years of Credited Service and a weekly employer contribution rate of $8. Your monthly Disability Retirement benefit would be calculated as follows: 3/4 * (62 * 20/25 * $8) = $ per month If you are still disabled at age 65, your monthly benefit will be increased to $396.80, your Normal Retirement benefit (62 * 20/25 * $8). If you were entitled to a Disability Retirement benefit prior to June 1, 1991, 2/3 should be substituted for 3/4 in the above calculation. 6 Vested Benefits If you leave your job after September 30, 1976 for a reason other than death or retirement, you may be entitled to a vested benefit on retirement. Your benefit depends on your age, Vesting Service and Credited Service at the time you terminate your employment. In all cases, in order to qualify for a Vested Benefit, your Employer must have made weekly contributions on your behalf for more than six months and you must have enough Vesting Service to qualify. The formula used to calculate your benefit will be the formula in effect when you left your employer. Your Vested Benefit will be calculated according to the formula below if, at the time you left your Participating Employer, contributions were made on your behalf for at least 6 months and: You were under age 47 and have at least 5 years of Vesting Service and you left covered employment before Normal Retirement Date; or 6 Disability Retirement is only available if you leave employment with a Participating Employer because of disability. See page 7. 14

15 You were age 47 or over and have at least 5 years of Vesting Service but less than 15 years of Credited Service and you left covered employment before Normal Retirement Date. In these cases, your Vested benefit is equal to 3% of your Normal Retirement benefit (based on 25 years of Credited Service and the average weekly contribution rate in effect in your last year of Credited Service) times your years of Credited Service. For example, assume you leave at age 45 with 10 years of Vesting Service and 12 years of Credited Service. Your employer's weekly contribution rate was $8. Your monthly Vested Benefit, payable at Normal Retirement Date, would be calculated like this: 3% * (62 * 12 /25 * $8) = $ per month This example does not include any reduction that will be made for Early Retirement (for which you must meet all eligibility criteria) or for spouse or survivor benefits. Age 47 or Over with 15 Years Credited Service If you are at or over age 47 when you leave covered employment and have at least 15 years of Credited Service, your Vested Benefit will be greater than that in the formula above. The 3% in the formula above will be replaced by 4% for a maximum of 25 years of Credited Service. Benefit Increases Your benefit may increase as a result of a change in your Employer's contribution rate, or a decision by the Plan Trustees to improve benefits. However, there is no guarantee that benefits under the Plan will increase at any time. If you are subject to a Collective Bargaining Agreement with your Employer that provides for present or future benefits greater than or different from benefits provided under the Plan, you should be aware that Plan approval is required before an Employer's request for an increase or other change is effective and that the Plan and Trust are not parties to, or bound by, any such agreements between Employers and Employees or their representatives. Do You Need Help Calculating Your Benefit? You may ask the Plan Administrator to do your benefit calculations for you at no cost. The law provides that such a request need be honored no more than once a year. Additional calculations can be provided, but will be done at the requester's expense. What Are Your Benefit Payment Options? Your benefit is paid in monthly installments. There are two normal forms of payment, one for single employees and one for married employees. You may also elect an optional form of payment, as described under Optional Forms of Payment. 15

16 Normal Forms of Payment If You Are Single If you are not married at retirement and are eligible for benefits, your pension will automatically be paid to you after retirement as a monthly annuity in equal monthly installments for as long as you live ("Life Annuity"). However, you may also elect an optional form of payment, as described on page 19. If You Are Married If you have been married to your current spouse for at least 1 year before benefits commence and are eligible for benefits, your pension will automatically be paid as a 50% Qualified Joint and Survivor Annuity unless you and your spouse elect otherwise in writing. If you have been married for less than 1 year, the Plan may require evidence that you were in good health before beginning payment of your benefit in this form. Under a Qualified Joint and Survivor Annuity ( QJSA ), benefits are paid to you monthly during your lifetime. When you die, if your spouse is living, your spouse receives 50% of the monthly amount you were receiving as long as he or she lives. The benefit you would normally receive during your lifetime is reduced in order to provide continuing payments to your spouse after your death. The amount of your benefit reduction will depend on your age and the age of your spouse. For example, if you and your spouse are the same age, your benefit will be reduced by 12%. Effective October 1, 2008, a married participant may also elect that the spouse receive a survivor benefit of 75% of the monthly amount you were receiving during your lifetime. This is sometimes referred to as a Qualified Optional Survivor Annuity ( QOSA ). Examples of a 50% Qualified Joint and Survivor Annuity Assume you retire at age 65 with a monthly benefit of $320. You want to provide your spouse, who is also 65, with a 50% benefit after your death. Therefore, your lifetime benefit will be reduced 12% to $ a month, and when you die your spouse will receive half of this amount, $ a month, for the rest of his/her life. If your spouse were 5 years younger than you, your pension would be reduced 14% to $ a month, and your spouse would receive $ a month for life after your death. If your spouse were 5 years older than you, your pension would be reduced 10% to $288 a month. The benefit provided for your spouse after your death would be $144 a month for life. 16

17 You and Your Spouse May Decline the 50% Qualified Joint and Survivor Annuity At the time you plan to retire, the Plan Administrator will give you and your spouse the opportunity to decline the 50% Qualified Joint and Survivor Annuity and to elect or decline the 75% Qualified Optional Survivor Annuity The Plan Administrator will tell you how much your benefit will be reduced to provide the benefit for your spouse. If you and your spouse decide on an alternative form of payment or a beneficiary other than your spouse, the Plan must receive your spouse's written, notarized consent. With your spouse's written and notarized consent, you may elect to receive your benefits upon retirement in the form of a Life Annuity payable to you alone, with benefits terminating upon your death, or you may choose a beneficiary other than your spouse to receive your benefits for up to 5 years after your death. (If you choose a Life Annuity, your spouse will not receive any benefits. (see "Optional Forms s of Payment") If your spouse dies before you begin to receive benefits, your benefit will return to a Life Annuity (unless you remarry). Once payments commence, the amounts will not change if your spouse dies before you. If Your Spouse or Beneficiary Dies Before You If your spouse or other named beneficiary dies before your retirement, then any beneficiary designation you have made is voided and your benefit will be paid as a Life Annuity unless you remarry (and have been married for at least a year at the time of retirement). If you retire and begin receiving benefits and your spouse or beneficiary predeceases you, your benefit payments will not change. Benefits will end upon your death. Separating, Divorcing or Divorced Participants If the Plan Administrator is notified of your divorce, and there is no court order issued in the divorce awarding retirement benefits to your former spouse, you will be treated as if you are single. A court order containing the required information to award benefits to a former spouse is referred to as a "Qualified Domestic Relations Order" ("QDRO"). If a court issues a QDRO affecting your benefit or awarding benefits to your spouse or to a former spouse, you must notify the Plan Administrator. If you fail to notify the Plan Administrator, the Plan must nevertheless honor such a QDRO if one is received from your spouse or former spouse and it is in the proper form. Before the Plan can honor a court order awarding benefits to someone other than the Employee who worked for a Participating Employer, it must receive and approve the language of the QDRO. The QDRO must be in the proper form and contain enough information to enable the Plan to ascertain who receives what share of benefits and in what form. The Plan need not honor an order that is not properly submitted to and approved by the Plan or one that does not contain the required information. Because such an order can contain many different provisions affecting your pension, you 17

18 should consult a domestic relations lawyer for advice if you are affected by or seeking a QDRO. The Plan cannot give legal advice. You are responsible for ensuring that any QDRO "is clear and in the proper form. The Plan will review the draft QDRO that you submit and let you know whether it will be honored. A copy of the procedures for handling such "QDROs" and samples of acceptable legal language for common provisions are available from the Plan Administrator on request. Once your benefits have commenced, the Plan cannot change the form of benefit payment, although it can pay a part of your monthly benefit to a divorced spouse (called the "Alternate Payee") if the Plan receives a QDRO that requires it to do so. Optional Forms of Payment As an alternative to the normal form of payment (Life Annuity for unmarried Participants or 50% Qualified Joint and Survivor Annuity (QJSA) for married Participants), you may elect one of the following optional forms of payment of your benefits: 75% Qualified Optional Survivor Annuity (QOSA) (see Optional Forms s of Payment ) 66 2/3% or 100% Joint and Survivor, payable to your spouse for your spouse's lifetime. The benefit paid to you is reduced so that your spouse receives 66 2/3%, or 100% of the amount you received before your death instead of 50% of the amount you received as in the case of a QJSA, or 75% in the case of a QOSA. 50%, 66 2/3%, 75%, or 100% Joint and Survivor Benefit, payable to a beneficiary of your choice other than your spouse. Under this option, you can provide payments to a person (other than your spouse) for 5 years after your death, except that in this case your beneficiary is not your spouse and the duration of the payment to your beneficiary is limited. The benefit paid to you is reduced so that your beneficiary receives 50%, 66 2/3%, 75%, or 100% of the amount you received before your death for up to 5 years after your death. Benefits to your beneficiary will end 5 years after your death, or, if your beneficiary dies before the end of the 5 year period, on the date of your beneficiary's death. Please note that under each of these options the pension you receive will be reduced to provide to your beneficiary after your death, the more your lifetime benefit will be reduced. If you elect a 66 2/3% Joint and Survivor benefit for your spouse and you and your spouse are the same age, your benefit will be reduced by 15%. If you elect a 100% Joint and Survivor benefit for your spouse and you and your spouse are the same age, your benefit will be reduced by 21%. If you elect any beneficiary other than your spouse, there will be similar reductions. The amount of the reduction is determined in part by the age of your spouse or beneficiary. In addition, if you are married and choose a beneficiary other than your spouse, your spouse must consent in writing before a Notary Public. 18

19 You may designate or change a beneficiary at any time before retirement benefit payments commence. Once payments have commenced, you cannot change the form of benefit you have selected. For further information, contact the Plan Administrator. Small Payments If you are eligible for a retirement benefit (or payment because of Plan termination) and the lump sum value of your benefit is worth $5,000 or less (as determined by the calculation method in the Plan), the Plan reserves the right to pay your benefit to you in a single lump sum rather than monthly. In this case, no survivor benefit is payable and no consent from your spouse is required. A lump sum worth between $1,000 and $5,000 may be rolled over to an eligible retirement plan; however, benefits having a value less than $1,000 may be paid in a lump sum to participants. How Do You Select a Benefit Option? At the time you apply for retirement benefits, the Plan Administrator will send you an application form setting forth the different types of benefits available to you and your spouse or beneficiary. If you wish, the Plan Administrator will calculate the benefits you will receive under each applicable option. You will then have the opportunity to elect the form of benefits you prefer on your application form. As explained in Normal Forms of Payment, "If You Are Married", if you and your spouse choose to reject a survivor benefit for your spouse, or you wish to choose a beneficiary for survivor benefits other than your spouse, your spouse must consent in writing before a Notary Public on the application form. The Plan Administrator will provide you with the application form and instructions and assist you with further information if necessary. After you have made your choice, you may still revoke it at any time before payment of benefits begins. Before the Plan will honor an election, a change in an election, or a beneficiary designation, it must be in writing, with spousal consent (if required), in a form acceptable to the Plan, and must be received by the Plan. Once payment has begun, your choice is final and cannot be changed. If You Die Before Retirement As explained in Normal Forms of Payment, "If You Are Married", if you die before payment of your retirement benefit begins, at or after age 55, and are eligible for a vested benefit under the Plan, your spouse will receive 50% of the benefit you would have received, calculated as if you had terminated service and retired the day before your death after electing a Qualified Joint and Survivor Benefit, based on actual years of service before your death. If you die with a vested benefit before age 55, the benefit to your spouse will be calculated as if you had survived until age 55 (Early Retirement) and retired early, based on actual years of service before your death. If you have not attained the minimum years 19

20 of service for Early Retirement at the time of your death, payment will not begin until the date you would have turned age 65. In order for your spouse to be eligible for this benefit, which is referred to as a "Qualified Pre-retirement Survivor Annuity" ( QPSA ), you and your spouse are required to have been married for at least 1 year before your death and your Employer must have made contributions for you for at least six months. Evidence that you were in good health when you married may be required if you were married for less than a year at your death. If you die before you have earned 5 years of Vesting Service, your spouse will not be eligible for a benefit. If you are single and you die before retirement, no benefits will be paid to a beneficiary. After October 1, 2007, if a Participant dies while in qualified military service, and is determined to have been entitled to job restoration under the Uniformed Services Employment and Re-employment Rights Act (USERRA), the surviving spouse is eligible to receive the benefit (QJSA or QPSA) that would have been available if the Participant had returned to work after military service and then died. The ABA Retirement Plan is designed to pay a pension benefit during the lifetime of Participants and their spouses (5 years for non-spouse beneficiaries). There are no death benefits payable under the Plan on or on account of the death of a Participant or beneficiary. Reemployment After Retirement If you are receiving a pension but become re-employed by an Employer participating in the Plan after your retirement, payment of your pension will continue until you stop working. When your re-employment ends, your pension will then be re-determined and may increase by reason of a higher Contribution Rate or longer Credited Service after taking into account the value of the benefits you have already received. In no event will the value of your pension decrease by reason of such re-determination. See also, "Required Date for Commencement of Payments". Transfers Between Employers If you transfer between one location of your Employer to another location or to another Employer who maintains the Plan without a Break In Service (explained in Is it Possible to Lose Credited Service? What is the Effect of an Absence on Vesting Service? ), your service will be treated as continuous, and your entitlement to a benefit will not be affected. If the first location or Employer makes a larger weekly contributions for you than the second, your Credited Service with each location or Employer will be calculated separately at the rate in effect for each location or Employer. (Normally, the rate used to calculate your benefit is the average rate during the year of Credited Service ending on 20

21 the date that you retire). However, if you transfer from a low contribution rate to a higher rate, the average rate during the last year of Credited Service before retirement will be used for all years of service. Commencement of Payments Once you meet all eligibility requirements for a retirement or other benefit from this Plan, and you have filed a properly completed Application for Benefits with this Plan, your benefit payments will be calculated to commence on the later of (a) the first of the month following your retirement or disability date; or (b) the first of the month following the date which is 60 days prior to the date of your application. Therefore, you should file your application promptly. If you retire on the first of the month and apply promptly, your benefit will be calculated to commence from that date. If you retire any other day of the month, your benefit will not commence until the first of the following month, whether you retire the second or the thirty-first day of the month. Of course, if you delay the filing of your application, the commencement of your benefit may also be delayed. Administrative processing time once your application is received by the Plan will not change the calculation of your benefit commencement date. Your first benefit check will include benefits computed from the correct commencement date. Please note that the Plan is not required to start payment of an Early Retirement Benefit or a Disability Retirement Benefit from any date more than 60 days before you apply and meet all eligibility criteria. Required Date for Commencement of Payments Your benefit payment must begin no later than April 1 of the year following the year in which you turn age 70-1/2 unless you have not retired by that time; if you have not retired by that time, under current law 7 payment of your benefit will not start until you retire unless you are a five-percent owner of the Employer or its affiliate (If you are in this category, your benefit will be re-adjusted annually to recognize additional Credited Service). Remember that the maximum years of Credited Service is 25, no matter how long you work, unless your Employer has made a special provision in its agreement with the Plan for a higher amount. Taxation of Contributions and Benefits Employees are not required under present law to pay income tax on the contributions made by Employers to this Plan for their benefit at the time the contributions are made (other plans may differ). Generally, you will be required to pay federal and state income tax on your benefits when you begin receiving payments. You should consult your personal tax advisor for further information about taxation of retirement benefits. 7 Under previous law, payments had to commence by April 1, of the year after you turned age 70 1/2 regardless of whether you were working. 21

22 Limits on Receiving Benefits From More Than One Plan Ordinarily, your benefit from this Plan will be reduced if you become entitled to receive a duplicate pension benefit from another plan where: 1. the benefits under both plans are based on the same service with your Employer (including any related or affiliate employers); 2. both benefits are paid for exclusively by your Employer; and 3. both plans are tax-qualified pension plans. In no event will the total benefit received by you under both plans be less than you would receive under the ABA Plan if the other plan did not exist. Also, the law limits the total amount of benefits payable from this Plan, (and for past Plan years, from this Plan and another plan combined), to $200,000per year (indexed for costof-living). In addition, annual compensation received by you in excess of $250,000 (indexed for cost-of-living) may not be considered in determining your benefit amount. The Plan does not base calculation of benefits on your compensation, but on the weekly rate of contribution chosen by your Employer. The Plan is not involved in how your Employer determines your contribution rate. What Is the Claim Review Procedure? When you apply for benefits, the Plan (acting through its administrator) must act on your application or request for benefits within a reasonable time, not to exceed 90 days from the date we receive your application, unless we notify you before the end of the ninety days that we need more time (up to an additional ninety days) and of the reason why we need more time. Benefits under this plan will be paid only if the Plan decides in its discretion that the applicant is entitled to them under the documents governing the Plan as interpreted and applied by the Board of Trustees. If the Plan decides that you are not entitled to benefits, you are entitled to receive from us: 1. A statement of specific reasons why the claim was denied; 2. References to the Plan provisions on which the denial was based; 3. A description of any additional material that you need to submit to complete the claim process; and 4. An explanation of the steps you must take if you want the Board of Trustees to review your claim. If the Plan does not furnish you with a decision within a reasonable period of time as outlined above, your claim is treated as denied and you have the right to obtain a review from the Board of Trustees as discussed in the next section. 22