LABORERS PENSION TRUST FUND FOR NORTHERN CALIFORNIA

Transcription

1 LABORERS PENSION TRUST FUND FOR NORTHERN CALIFORNIA PENSION PLAN SEPTEMBER 2009 Please disregard the Rules and Regulations section of this booklet which begins on page 63. The Rules and Regulations have been revised as of June 1, You may review the revised Rules & Regulations at the Laborers Trust Funds website at

2 LABORERS PENSION TRUST FUND FOR NORTHERN CALIFORNIA 220 Campus Lane Fairfield, California TELEPHONE: TOLL-FREE NUMBER: WEBSITE: BOARD OF TRUSTEES EMPLOYEE TRUSTEES Mr. Oscar De la Torre Mr. Doyle Radford Mr. David Gorgas Mr. James Homer Mr. Bruce Rust EMPLOYER TRUSTEES Mr. Byron C. Loney Mr. Larry Totten Mr. Terence Street Mr. Claire Koenig Mr. Robert Chrisp LEGAL COUNSEL Bullivant House Bailey PC Weinberg, Roger & Rosenfeld CONSULTANT AND ACTUARY The Segal Company ADMINISTRATIVE OFFICE Laborers Funds Administrative Office of Northern California, Inc. Edward J. Smith, Secretary

3 Laborers Pension Trust Fund for Northern California To All Participants Covered by the Laborers Pension Plan: We are pleased to provide you with this updated booklet describing the features of your Pension Plan. This Plan has been established to provide you and your family with retirement benefits which, in addition to Social Security benefits, should provide a measure of security during your years of retirement. Disability and death benefits are also provided for the security of you and your family. This booklet tells you: How and when you become eligible for benefits, What your benefits are, and General provisions of the Plan. We have tried to explain some of the most important provisions of the Plan within the Summary Plan Description portion of this booklet, beginning on page 5. However, in describing the Pension Plan in summary form, it is not possible to explain every detail. Only the complete text of the Rules and Regulations which appears in the last part of this booklet beginning on page 63, describes your actual rights under the Plan. In the event of any conflict between the Summary Plan Description and the Rules and Regulations the Rules and Regulations will govern. For your protection, only the full Board of Trustees is authorized to interpret the Pension Plan provisions described in this booklet. No Union or Employer, nor any representative of any Union or Employer, is authorized to interpret the Plan on behalf of the Board, nor can any of these persons act as an agent of the Board of Trustees. We suggest that you share this booklet with your family, since they too have an interest in the Plan. We also suggest that you retain this booklet for future reference and that you inform members of your family where the booklet can be found. From time to time, material changes may be made to the Plan provisions. These are communicated to you in the form of Plan notices. So that your information is complete and up-to-date, you should retain all Plan notices with this booklet. If you have questions a er reading the booklet, or questions about your benefits in general, contact the Trust Fund Office at (707) or toll-free at , Monday through Friday, between the hours of 8:00 AM and 5:00 PM. You can also questions to customerservice@norcalaborers.org. September 2009 Sincerely, BOARD OF TRUSTEES 1

4 Important Information About Your Plan Only a summary of the Plan s benefits appears in the first part of this booklet. The Pension Plan summary cannot adequately reflect all of the details of the Plan. The rights of a Participant or Beneficiary can only be determined by consulting the actual text of the Pension Plan, which is printed in the last part of this booklet in the Rules and Regulations beginning on page 63. *************************************************************************************************** Only the full Board of Trustees is authorized to resolve any questions concerning the interpretation of the Pension Plan described in this booklet. Only the Board can give binding answers, and then only if you have furnished full and accurate information concerning your situation. No Employer or Union, nor any representative of any employer or union, is authorized to interpret the Plan on behalf of the Board, nor can any of these persons act as an agent of the Board. *************************************************************************************************** The Trust Agreement provides that Individual Employers are not required to make any further payments or Contributions to the cost of the operation of the Trust Fund or of the Plan, except as may be provided in the Collective Bargaining Agreement, a Subscriber s Agreement, or the Trust Agreement. This provision is subject to the requirements of the Multiemployer Pension Plan Amendments Act of 1980 and any other applicable law. 2

5 Table of Contents Page Pension Plan Terms 6 Credited Service 8 Breaks in Service 10 Grace Period 10 Separation From Covered Employment 13 Vested Status 14 Benefit Units 15 Credited Future Service and Accrued Benefits 17 Uniformed Services Employment 18 Regular Pension 19 Former Participants in the Rock, Sand and Gravel Plan 21 Early Retirement Pension 22 Disability Pension 24 Service Pension 27 Deferred Vested Pension 28 Reciprocal Pension 29 Adjustments to Pension 31 Credited Service, Benefit Units and Pension Amounts for Employees Previously Covered by the Laborers Rock, Sand and Gravel Pension Trust Fund 33 Payment Methods 35 3

6 Table of Contents Page Federal and State Income Tax Withholding 38 Rollover Distributions 38 Notice of Early Distribution Penalty 38 Death Benefits 39 Qualified Domestic Relations Orders (QDRO) 42 Retirement 44 Prohibited Employment 44 Suspension of Pension Payments 45 Recovery of Overpayments 47 Application for Benefits 48 Annuity Starting Dates 49 Claims and Appeals Procedures 50 Questions and Answers About Your Plan 54 Information Required by the Employee Retirement Income Security Act 55 Statement of Rights Under the Employee Retirement Income Security Act 61 Rules and Regulations 63 4

7 Laborers Pension Trust Fund for Northern California Pension Plan Summary Plan Description 5

8 Pension Plan Terms The following terms are used frequently in explaining the Pension Plan. For a more complete list of terms, refer to Article 1, beginning on page 65. TERM EMPLOYEE DEFINITION The term Employee means any employee of a Contributing Employer who performs one or more hours of work covered by the Collective Bargaining Agreement, providing for Contributions to the Pension Fund. The term also includes certain other employees covered under a Subscriber s Agreement in accordance with Board regulations. The Plan does not include any self-employed person, whether a sole proprietor or partner. COVERED EMPLOYMENT CONTINUOUS NON-COVERED EMPLOYMENT PARTICIPANT The term Covered Employment means employment as an Employee for a Contributing Employer who contributes or who is required to contribute to this Pension Plan. The term Continuous Non-Covered Employment means employment a er June 1, 1976 with a Contributing Employer in a job that is not covered by this Pension Plan, but that is continuous with the Employee s Covered Employment with the same Contributing Employer. A period of Non-Covered Employment is considered continuous with Covered Employment only if there is no resignation, discharge, or other termination of employment between periods of Covered and Non-Covered Employment. The term Participant describes an Employee who becomes a Participant in the Pension Plan on August 1 or February 1 following a 12 consecutive month period during which that Employee works at least 435 hours in Covered Employment, or a er June 1, 1976, in Continuous Non-Covered Employment with a Contributing Employer. An Employee is no longer a Participant in the Plan when he incurs a One-Year Break in Service, unless he is already a Pensioner or a Vested Participant. 6

9 Pension Plan Terms continued TERM CREDITED SERVICE BENEFIT UNITS PLAN CREDIT YEAR SEPARATION FROM COVERED EMPLOYMENT CONTRIBUTION DATE NORMAL RETIREMENT AGE DEFINITION Generally, the term Credited Service means the hours of work in Covered Employment, and a er June 1, 1976 in Continuous Non-Covered Employment, which are recognized by the Plan in determining eligibility for a Pension. Generally, the term Benefit Units means the hours of work in Covered Employment, which the Plan recognizes in determining the amount of a pension payable by the Plan for periods prior to August 1, Beginning August 1, 1986, pension amounts are based on a percentage of eligible Contributions payable on behalf of an Employee. For periods on or a er August 1, 1986, Benefit Units are still recognized by the Plan toward eligibility for a Service Pension. No more than one Benefit Unit per Plan Credit Year will be counted for that purpose. The term Plan Credit Year means the period from August 1 of any year through July 31 of the following year. This 12 consecutive month period is used to determine Participation, Credited Service, Benefit Units, and benefit accruals. The term Separation from Covered Employment means that an Employee has not worked at least 435 hours in Covered Employment in at least 2 consecutive Plan Credit Years. It occurs on the last day of the second consecutive Plan Credit Year (July 31) in which the Employee has not worked at least 435 hours in Covered Employment. The term Contribution Date means the date that applies to the Bargaining Unit in which an Employee was working when the first Employer Contribution was made on his behalf. The term Normal Retirement Age means age 65 or, if later, the age of the Participant on the fi h anniversary of his participation, disregarding participation before June 1, For all other Participants Normal Retirement Age means age 65 or, if later, the age of the Participant on the tenth anniversary of his participation. 7

10 Credited Service Sections 6.02., and 6.03., pages 90 and 92 Credited Service is required to qualify for a Regular, Early, Disability or Deferred Vested Pension provided by this Plan. It is granted for work performed for Employers who contribute, or who are required to contribute to the Pension Trust Fund by a Collective Bargaining Agreement. Credited Service is also granted for work performed for a Contributing Employer in Continuous Non- Covered Employment on or a er June 1, In addition, it is granted for employment as a laborer in the Building and Construction Industry in Northern California before this Pension Plan was established, as well as periods of Qualified Military Service. Credited Service is earned in different ways for employment during different time periods as explained in the following paragraphs. Credited Past Service - Before August 1, 1962 Section 6.02., page 90 You will receive one year of Credited Past Service for each Plan Credit Year in which you work at least 1,000 hours or more between August 1, 1937 and August 1, 1962 in the Building and Construction Industry in the 46 Northern California Counties: 1. at a job included in the Collective Bargaining Agreement with the Northern California District Council of Laborers or any of its affiliated local unions, or 2. for a Contributing Employer, or in a Bargaining Unit included for coverage under this Plan prior to June 30, 1967, or 3. for the District Council or an affiliated local union in a position included under the Plan. One quarter of one year of Credited Past Service is granted for each 250 hours of employment in any Plan Credit Year in which you failed to work at least 1,000 hours. The Board of Trustees may accept records of union membership, W-2 forms, check stubs, statements from an employer, or statements from the Social Security Administration as evidence of employment. You will also receive Credited Past Service for military service during the period you retained reemployment rights under federal law. To receive Credited Past Service for military service, you must have been employed in the 46 Northern California Counties immediately before entering the service in work for which Credited Past Service is granted and you must have made yourself available for work in the 46 Northern California Counties within 90 days a er your release from active duty, or within 90 days a er recovering from a disability which continued a er your release from active duty. 8

11 Credited Future Service - Between August 1, 1962 and August 1, 1975 Section 6.03.a., page 92 You earn Credited Future Service for hours worked in Covered Employment between August 1, 1962 and August 1, 1975, according to the following schedule: Hours Worked in Plan Credit Year Less than 250 hours 250 to 499 hours 500 to 749 hours 750 to 869 hours 870 hours or more Credited Future Service None Credited Future Service - Beginning August 1, 1975 Section 6.03.b., page 92 You earn Credited Future Service for hours worked in Covered Employment beginning August 1, 1975, according to the following schedule: Hours Worked in Plan Credit Year Less than 435 hours 435 to 652 hours 653 to 869 hours 870 hours or more Credited Future Service None Continuous Non-Covered Employment - Beginning June 1, 1976 Section 6.03.c., page 92 Beginning June 1, 1976, you receive Credited Future Service for hours of work in Continuous Non- Covered Employment if you work for a Contributing Employer and move directly from a covered job with that Employer to a non-covered job with that same Employer, or move directly from a non-covered job with that Employer to a covered job with the same Employer. If you have not worked enough combined hours to earn one full year of Credited Service, fractions of a Year of Credited Service will not be granted for work in Continuous Non-Covered Employment. 9

12 Breaks in Service Section 6.06., page 95 Once you achieve Vested Status, you cannot lose Participation, Credited Service, Benefit Units and accrued benefits. However, prior to achieving Vested Status, you could permanently lose your Participation, Credited Service, Benefit Units and accrued benefits if you do not work the required number of hours in Covered Employment for a certain number of consecutive Plan Credit Years as explained below. Break in Service - Between August 1, 1962 and August 1, 1975 Section 6.06.a., page 95 You incur a Permanent Break in Service between your Contribution Date and August 1, 1975 if, before you achieve Vested status, you did not earn one quarter (.25) of Credited Future Service in either one of 2 consecutive Plan Credit Years. Example: Plan Credit Year Hours Worked in Covered Employment 1, Credited Future Service One year To earn one quarter (.25) of Credited Future Service, you must have worked at least 250 hours. In the above example, the employee incurred a Permanent Break in Service on July 31, 1975, because he failed to earn one quarter of Credited Future Service in 2 consecutive Plan Credit Years ( and ). Grace Periods - Between August 1, 1962 and August 1, 1975 Section 6.06.a., page 95 A grace period is granted to you if you were absent from Covered Employment before August 1, 1975 due to any of the following reasons: 1. Totally disabled for work as a laborer - the Plan allows a grace period of up to 3 years. 2. Employment as a supervisor for a Contributing Employer (including joint ventures in which the Contributing Employer participates) - the Plan allows a grace period for the entire time of supervisory employment. 3. Employment as an officer or full-time employee with a labor organization that is not a Contributing Employer to this Plan - the Plan allows a grace period for the entire time of employment with the labor organization. A grace period does not add to your Credited Service, Benefit Units, or accrued benefits. It is strictly a period which is not counted in determining whether you worked enough hours to prevent a Break in Service. In order to secure this grace period, you must provide proof of the circumstances on which you base your application for this grace period. You may submit your application for this grace period at the time you file your pension application or earlier, if you choose. 10

13 Break in Service - Between August 1, 1975 and August 1, 1985 Sections 6.06.b and c., page 96 A er July 31, 1975, a One-Year Break in Service occurs if you do not work at least 435 hours in Covered Employment (including hours on or a er June 1, 1976 in Continuous Non-Covered Employment) during a Plan Credit Year. A Break in Service can be temporary or permanent, depending on how many years of Credited Service you have. A Break in Service becomes permanent if you have the greater of (1) two-consecutive One-Year Breaks in Service, or (2) the number of consecutive One-Year Breaks in Service equal or exceed the number of full Years of Credit Service previously accumulated. Example: If you have earned 7 Years of Credited Service and then you have 5 consecutive Plan Credit Years in which you work less than 435 hours in each of those Plan Credit Years, you still have not lost your 7 Years of Credited Service. However, in the next Plan Credit Year you work only 200 hours thereby adding another Break in Service Year which now totals 6. In the next Plan Credit Year, you work 100 hours, which makes 7 Break in Service Years. At the end of the 7th Plan Credit Year, your 7 Years of Credited Service are permanently canceled. Work Year Hours Worked Credited Service 1st year 2nd year 3rd year 4th year 5th year 6th year 7th year 8th year 9th year 10th year 11th year 12th year 13th year 14th year 1,400 1,500 1,100 1,300 1,400 1,200 1, Year of Credited Service 1 Year of Credited Service, total of 2 years 1 Year of Credited Service, total of 3 years 1 Year of Credited Service, total of 4 years 1 Year of Credited Service, total of 5 years 1 Year of Credited Service, total of 6 years 1 Year of Credited Service, total of 7 years Break in Service - 1 year Break in Service - 2 years Break in Service - 3 years Break in Service - 4 years Break in Service - 5 years Break in Service - 6 years Break in Service - 7 years This chart illustrates how it works: In the example, a Permanent Break in Service occurred at the end of the 14th Plan Credit Year when the number of One-Year Break in Service Years equaled the number of full Years of Credited Service, e.g. 7 years. However, if the Employee would have worked at least 435 hours within the 14th Plan Credit Year, the Permanent Break in Service would have been prevented. A One-Year Break in Service (less than 435 hours of work in Covered Employment, or a er May 31, 1976 including hours in Continuous Non-Covered Employment in a Plan Credit Year) can be repaired as long as the Break in Service is not permanent. All previous One-Year Breaks in Service are disregarded a er a Plan Credit Year in which you work at least 435 hours in Covered Employment or, a er May 31, 1976, including hours in Continuous Non-Covered Employment. Important: For determining whether a Permanent Break in Service occurs, One-Year Break in Service Years are not added together unless they come one right a er the other. The years will not be added together if there is an interruption with a Plan Credit Year of 435 hours or more of work in Covered Employment or, a er May 31, 1976, including hours in Continuous Non-Covered Employment. 11

14 Break in Service - After July 31, 1985 Section 6.06.d., page 97 Beginning August 1, 1985, you may have up to 5 consecutive One-Year Breaks in Service without incurring a Permanent Break in Service, regardless of the number of previously earned Years of Credited Service. Example: If you earn 2 Years of Credited Service through the Plan Credit Year ending July 31, 2002 but then from August 1, 2002 through July 31, 2006, you fail to work 435 hours in any one of those Plan Credit Years, even though you now have 4 One-Year Break in Service Years, you have not lost your 2 Years of Credited Service, because you must incur at least 5 consecutive One-Year Break in Service Years before it becomes permanent. In the next Plan Credit Year, you work 1,500 hours thus preventing a Permanent Break in Service. Plan Credit Year This chart illustrates how it works: Hours Worked in Covered Employment Credited Service ,300 hours 1,500 hours 250 hours -0- hours -0- hours 275 hours 1,500 hours 1 Year of Credited Service 1 Year of Credited Service, total 2 years Break in Service, 1 year Break in Service, 2 years Break in Service, 3 years Break in Service, 4 years 1 Year of Credited Service, total 3 years For retirements effective on or a er March 1, 2005, the total number of Years of Credited Service, including partial years, will be taken into account when determining whether you incur Permanent Break in Service. Grace Periods - After July 31, 1985 Section 6.06.e., page 97 You will be protected from incurring a One-Year Break in Service if the absence from work is due to the following parental responsibilities: 1. pregnancy of the Participant; or 2. birth or adoption of a child of a Participant; or 3. for child care for the period immediately following childbirth or adoption. This grace period does not add to your Credited Service. Rather, it is a period which is not counted in determining whether you worked enough hours to prevent a Break in Service. In order to secure this grace period, you must provide wri en notice to the Board within 60 days a er the occurrence of the circumstance entitling you to this grace period. Wri en evidence must be presented, as the Board may require. 12

15 Separation from Covered Employment: Section 6.07, page 98 If you have not worked at least 435 hours in Covered Employment in either one of two consecutive Plan Credit Years a er August 1, 1975, the amount of monthly pension earned before your Separation from Covered Employment remains frozen (but not less than $22.00 will be paid for each Benefit Unit). For periods prior to August 1, 1975, you incurred a Separation from Covered Employment if you failed to earn one quarter of a year of Credited Future Service in either one of two consecutive Plan Credit Years. Refer to Section 3.03.a (2), page 76 for an explanation of the effect of a Separation from Covered Employment. If you return to Covered Employment and earn additional benefits following a Separation from Covered Employment, the pension amount for additional benefits earned a er your return to Covered Employment will be based on the amount payable under the Plan at that time. Exception: Section 6.07.d., page 98 If you are a Vested Participant whose Annuity Starting date is on or a er September 1, 2000 you may be entitled to a grace period if you did not work at least 435 hours within a Plan Credit Year a er August 1, 1975 because of disability. The maximum grace period is 5 Plan Credit Years for the same disability. In order to qualify for this grace period, you must meet the following conditions: You must have a ained Vested status prior to the Plan Credit Year for which the disability applies; and You must have worked at least 435 hours in Covered Employment in the Plan Credit Year immediately preceding the Plan Credit Year in which you became disabled; and You must have received either Workers Compensation Disability Payments or Social Security Disability Payments during the entire period of your disability for which you are applying for this exception to the Separation from Covered Employment provision. You will not be considered disabled if you are working for wages or profits in any employment. This grace period does not add to your Credited Service or benefit accruals. It is a period that is not counted in determining whether you incurred a Separation from Covered Employment. In order to apply for this exception, you must supply notice to the Board and you must present wri en evidence of your disability including proof of receipt of either Workers Compensation Disability Payments or Social Security Disability Payments. Exception: A Participant whose Annuity Starting Date is on or after September, 2000 may be entitled to a grace period if his failure to work at least 435 hours in Covered Employment in a Plan Credit Year after August 1, 1975 is due to disability. 13

16 Vested Status Section 3.16., page 81 Once you achieve Vested Status, you are entitled to a future benefit from the Pension Plan, even if you stop working and never return to work in Covered Employment. A benefit will be payable once you meet the age and service requirements for a Regular Pension (age 65), Early Pension, (age 55 with 10 Years of Credited Service) or Service Pension (any age with 25 Benefit Units). Vested Status - Between June 1, 1976 and January 1, 1997 Section 3.16.a.(2)., page 81 Under the vesting requirements in effect since June 1, 1976, if you are a Participant, you achieve Vested Status once you have accumulated 10 Years of Credited Service without a Permanent Break in Service. If you are a Non-Bargained Employee who is a Participant and has at least one hour of work in Covered Employment a er May 1, 1989, you achieve Vested Status once you have accumulated 5 Years of Credited Service without a Permanent Break in Service. (For an explanation of the Plan s vesting requirements prior to June 1, 1976, refer to Section 3.16.a.(3)(4)(5), pages ) Vested Status - After January 1, 1997 Section 3.16.a.(1)., page 81 If you are a Participant and have at least one hour of work in Covered Employment a er January 1, 1997, you achieve Vested status once you have accumulated at least 5 Years of Credited Service without a Permanent Break in Service. Note, however, you are no longer a Participant at the end of any Plan Credit Year where you have a One-Year Break in Service (less than 435 hours). If you lost Participation as of July 31, 1996, you must re-establish your Participation in the Plan before you incur a Permanent Break in Service and have at least one hour of work in Covered Employment on or a er January 1, 1997 in order to be eligible for the Five-Year Vesting Rule. Plan Credit Year Work Hours Credited Service Benefit Unit hours 1,000 hours 1,500 hours 1,200 hours 1,030 hours 500 hours 0 hours.5 Credit 1.0 Credit 1.0 Credit 1.0 Credit 1.0 Credit.5 Credit *.5 Benefit Unit 1.0 Benefit Unit 1.0 Benefit Unit 1.0 Benefit Unit 1.0 Benefit Unit.5 Benefit Unit * *In the example, the Employee incurred a One-Year Break in Service and ceased Participation on July 31, 1996 because he failed to work at least 435 hours during the 1996 Plan Credit Year. 14

17 Benefit Units Section 6.04., page 93 Generally, Benefit Units are earned, in accordance with the following schedule, for work for which Employers contribute or are required to contribute to the Pension Fund by a Collective Bargaining Agreement. Benefit Units are also earned for employment of the same kind before Contributions began, that is, before August 1, The amount of your pension is based, in part, on the number of Benefit Units you earned prior to August 1, 1986, if applicable. On and a er August 1, 1986, you continue to accrue Benefit Units, however, the pension amount for Plan Credit Years on or a er August 1, 1986 is based on a percentage of eligible Contributions paid on your behalf. Benefit Units earned both before and a er August 1, 1986 are also used to determine eligibility for a Service Pension. Benefits Units - Before August 1, 1962 Section 6.04.a., page 93 One Benefit Unit (or portion of a Benefit Unit) is earned for each Year of Credited Service (or portion of a Year of Credited Service) earned before August 1, That is, if you earned a Year of Credited Past Service before August 1, 1962, you also earned one Benefit Unit. The way in which Years of Credited Past Service are earned is explained in Section 6.02., pages Benefit Units - Between August 1, 1962 and August 1, 1975 Section 6.04.b., page 93 You earn Benefit Units for hours worked in Covered Employment, according to the following schedule: Hours Worked in Plan Credit Year Less than 250 hours 250 to 499 hours 500 to 749 hours 750 to 999 hours 1,000 hours or more Benefit Units None

18 Benefit Units - Between August 1, 1975 and August 1, 1980 Section 6.04.c., page 93 You earn Benefit Units for hours worked in Covered Employment, according to the following schedule: Hours Worked in Plan Credit Year Less than 500 hours 500 to 599 hours 600 to 699 hours 700 to 799 hours 800 to 899 hours 900 to 999 hours 1,000 hours or more Benefit Units None If you earn a year of Credited Service in a Plan Credit Year a er July 31, 1975, but work less than 500 hours in Covered Employment, you will be credited with a portion of a full Benefit Unit based on the ratio that your hours worked bear to 2,000. Benefit Units - Between August 1, 1980 and August 1, 1986 Section 6.04.d., page 93 You earn Benefit Units for hours worked in Covered Employment, according to the following schedule: Hours Worked in Plan Credit Year Less than 500 hours 500 to 599 hours 600 to 699 hours 700 to 799 hours 800 to 899 hours 900 to 999 hours 1,000 to 1,749 hours 1,750 hours or more* Benefit Units None NOTE: If you worked 1,750 hours or more in a Plan Credit Year between 1980 and 1986 and retired on or a er January 1, 1987, you will receive an additional.50 Benefit Unit at retirement towards the amount of your monthly pension benefit. The additional.50 Benefit Unit earned between 1980 and 1986 cannot be used to qualify for a Service Pension because a Service Pension only permits one Benefit Unit per Plan Credit Year. 16

19 Benefit Units - Beginning August 1, 1986 Section 6.04.c., page 93 Beginning August 1, 1986, you earn Benefit Units for hours worked in Covered Employment, according to the following schedule: Hours Worked in Plan Credit Year Less than 500 hours 500 to 599 hours 600 to 699 hours 700 to 799 hours 800 to 899 hours 900 to 999 hours 1,000 hours or more Benefit Units None Credited Future Service, Benefit Units, and Accrued Benefits during Periods of Disability Section 6.05.a., page 94 If you are a Participant and absent from Covered Employment, on or a er August 1, 1962, due to a disability, you will be granted hours of disability credit toward Credited Service and Benefit Units for the period you receive California Unemployment Disability or Temporary Workers Compensation Disability. In order to receive Credited Service and Benefit Units for a period of disability, you must provide information about the disability on a form approved by the Board and you must supply proof that you received either California Unemployment Disability or Temporary Workers Compensation. Proof may be supplied at the time you file your application for a pension or earlier if you choose. Credited Future Service, Benefit Units, and Accrued Benefits during Periods of Qualified Military Service Section 6.05.b., page 95 Prior to December 12, 1994, if you are a Participant, you will receive Credited Future Service, Benefit Units and benefit accruals for military service during the period you retained re-employment rights under federal law. To receive Credited Future Service, Benefit Units and benefit accruals for military service, you must have been employed in the 46 Northern California Counties immediately before entering military service in work for which Credited Future Service and Benefit Units is granted and you must have made yourself available for work in the 46 Northern California Counties within 90 days a er your release from active duty, or within 90 days a er recovering from a disability which continued a er your release from active duty. 17

20 Credited Future Service, Benefit Units and benefit accruals are determined by calculating the average number of hours you worked per week during the 5 year period (or less) immediately preceding entering the military. On or a er December 12, 1994, the provisions of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) govern the granting of Credited Service, Benefit Units, benefit accruals, avoiding Breaks in Service and preventing Separations in Covered Employment for Participants who are engaged in Qualified Military Service. In order to qualify, the following conditions must be satisfied: The Participant makes himself available for Covered Employment during the period that he has re-employment rights under USERRA; The Participant had not incurred a One-Year Break in Service at the time he or she entered Qualified Military Service; and The Participant had been employed in Covered Employment immediately prior to his Qualified Military Service. Credited Service, Benefit Units and benefit accruals will be credited for Qualified Military Service based on the greater of the average number of hours worked in a week by the Participant during (1) the twelve month period immediately preceding the period of Qualified Military Service or; (2) the 5 year period (or less) immediately prior to entering Military Service. No more than 5 years of Qualified Military Service may be recognized for any purpose, except as required by law. In order to secure credit for military service, you must provide proof of military service at the time you file your pension application or earlier, if you choose. 18

21 Regular Pension Sections 3.02 and 3.03., page 75 Eligibility Section 3.02., page 75 When you retire, you are eligible for a Regular Pension if: 1. you are least age 65; and 2. you have a ained Vested status; and 3. you have worked at least 500 hours in Covered Employment since August In any event, you are entitled to a Regular Pension once you a ain Normal Retirement Age as described in Section 1.21, page 70. Pension Amount Sections 3.03., and 3.19., pages 75 and 82 The monthly amount of a Regular Pension effective on and a er July 1, 2005 is based on: the number of Benefit Units earned prior to August 1, 1986, if applicable; the amount payable for each Benefit Unit earned for Covered Employment before August 1, 1986, if applicable; the amount of eligible Contributions made with respect to work in Covered Employment on and a er August 1, 1986; the percentage crediting factor applied to the amount of eligible Contributions; and the amount of supplemental benefit, if applicable The monthly pension which is payable for a pension effective on or a er July 1, 2005 is the sum of: $95.00 for each Benefit Unit (proportional amount for fractions) earned before August 1, 1986, if applicable, plus 3.30% of Contributions made for Covered Employment performed within each Plan Credit Year between August 1, 1986 and August 1, 2003, provided you work a minimum of 500 hours, plus 2.30% of Contributions made for Covered Employment performed within each Plan Credit Year a er July 31, 2003 and before July 1, 2005, provided you work a minimum of 500 hours; plus 2.30% of the first $2.16 of Contributions made for Covered Employment within each Plan Credit Year a er June 30, 2005, provided you work a minimum of 500 hours, plus a supplemental benefit, if applicable, as described in Section 3.19., pages

22 The following is an example of how the Regular Pension is calculated for a pension effective August 1, 2009, assuming continuous employment from August 1, 1984 through July 31, 2009 and the Employee works 1,400 hours per Plan Credit Year at an hourly Contribution Rate of $2.16. Note, also that a Service Pension is calculated in the same manner. For the purpose of this example, 25.0 Benefit Units have been used which is the minimum number of Benefit Units for a Service Pension. Plan Year Ending Amount of Contributions Benefit Units Benefit Rate/ Crediting Factor Monthly Amount of Pension Benefit Units 8/1/84-7/31/86 2 $95.00 $ This chart illustrates how it works: 7/31/1987 7/31/1988 7/31/1989 7/31/1990 7/31/1991 7/31/1992 7/31/1993 7/31/1994 7/31/1995 7/31/1996 7/31/1997 7/31/1998 7/31/1999 7/31/2000 7/31/2001 7/31/2002 7/31/2003 7/31/2004 7/31/2005 7/31/2006 7/31/2007 7/31/2008 7/31/2009 $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, $3, Benefit Units 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 3.30% 2.30% 2.30% 2.30% 2.30% 2.30% 2.30% Monthly Amount Regular Pension Supplemental Benefit, if applicable A er Rounding $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $99.79 $69.55 $69.55 $69.55 $69.55 $69.55 $69.55 $2, $ $2,

23 If You Are Married When You Retire If you are married when you retire, the amount of the Regular Pension will be reduced as described under the 50% Husbandand-Wife Pension, (Section 7.05.a., page 102), or you may choose to take your pension in the form of a 75% Husband-and-Wife Pension, (Section 7.06.a., page 102), or a 100% Husband-and-Wife Pension, (Section 7.06.b., page 103), or Single-Life Pension or a Single-Life Pension with a Five-Year Guarantee Option, (Section 8.02., page 106). Any one of the Husband-and-Wife Pension payment forms provides a lifetime benefit to your Spouse upon your death. If you elect a Single-Life Pension or Single-Life Pension with a Five-Year Guarantee Option, you must have the wri en consent of your Spouse on a form approved by the Board. Your Spouse s signature must be witnessed by either a Notary Public or a Trust Fund Representative. Former Participants in the Rock, Sand and Gravel Plan Section 3.03.b., page 76 Effective on and a er August 1, 1986, the monthly amount of the Regular Pension payable if you are a former Participant in the Rock, Sand and Gravel Plan will be the sum of the monthly pension benefit accrued with the Rock, Sand and Gravel Pension as of July 31, 1978 and the amounts shown above for each Benefit Unit (or a portion for fractions) and benefit accruals earned a er July 31, Effective on and a er January 1, 1993, the monthly amount of the Regular Pension payable if you are a former Participant in the Rock, Sand and Gravel Plan or performed work for which employer contributions were required to be made to the Rock, Sand and Gravel Plan will be calculated in the same manner as shown on the preceding page for benefits earned under this Plan and under the Rock, Sand and Gravel Plan, provided you have earned 5 years of Credited Service under this Plan since December 31,

24 Early Retirement Pension Sections 3.04 and 3.05., page 77 Eligibility Section 3.04., page 77 When you retire, you are eligible for an Early Retirement Pension if: 1. you are least age 55, but not yet age 65; and 2. you have earned at least 10 Years of Credited Service, without a Permanent Break in Service (not counting any Credited Service earned as a result of work in Continuous Non-Covered Employment); and 3. you have worked at least 500 hours in Covered Employment since August Pension Amount Sections and 3.19., pages 77 and 82 The monthly amount of an Early Retirement Pension is determined as follows: Calculate the amount of the Regular Pension you would receive if you were age 65 when your pension starts. Reduce that amount by ¼ of 1% for each month that you are younger than age 65. (The amount of the Early Retirement Pension is reduced from the amount of the Regular Pension because you are younger than age 65 when your pension payments begin and you will receive benefit payments for a longer period of time). Example Assume that you are age 59 and you do not have 25 Benefit Units to qualify for a Service Pension. Your monthly amount for the Regular Pension (age 65) would be $2, before rounding. Since you are currently 59 years old, you are 72 months younger than age 65, which will mean a reduction of ¼ of 1% for each month you are younger than age 65. Description Monthly Amount of Regular Pension (at age 65) Subtract 18% of Amount of Regular Pension (18% is the result of multiplying ¼ of 1% by 72 months) Monthly Amount of Early Retirement Pension (at age 59) Add Supplemental Benefit, if applicable A er Rounding Amount $ 2, ($380.47) $ 1, $ $ 1,

25 If You Are Married When You Retire If you are married when you retire, the amount of the Early Retirement Pension will be reduced as described under the 50% Husband-and-Wife Pension, (Section 7.05.a., page 102), or you may choose to take your pension in the form of a 75% Husband-and-Wife Pension, (Section 7.06.a., page 102), or a 100% Husband-and-Wife Pension, (Section 7.06.b., page 103), or Single-Life Pension or a Single-Life Pension with a Five-Year Guarantee Option, (Section 8.02., page 106). Any one of the Husband-and-Wife Pension payment forms provides a lifetime benefit to your Spouse upon your death. If you elect a Single-Life Pension or Single-Life Pension with a Five-Year Guarantee Option, you must have the wri en consent of your Spouse on a form approved by the Board. Your Spouse s signature must be witnessed by either a Notary Public or a Trust Fund Representative. 23

26 Disability Pension Sections 3.06., through 3.13., pages Eligibility Section 3.06., page 77 If you are disabled from performing work as a laborer in the Building and Construction Industry, you may be eligible for a Disability Pension if: 1. you have not yet reached age 65; and 2. you have earned at least 10 Years of Credited Service, without a Permanent Break in Service (not counting any Credited Service earned as a result of work in Continuous Non-Covered Employment); and 3. you have, as a result of work in Covered Employment, earned at least 2 quarters of Credited Service in the Plan Credit Year in which you became totally disabled or in the 2 consecutive Plan Credit Years immediately preceding the Plan Credit Year in which you became totally disabled. Totally Disabled Means Section 3.08., page 79 You will be considered totally disabled if the Social Security Administration grants you a Disability Award, or its equivalent. In the absence of either a Social Security Award or its equivalent, you may also be considered totally disabled if, based on competent medical evidence, you are unable to work as a laborer in the Building and Construction Industry, provided the disability is expected to result in death or to last indefinitely, and provided the disability is not the result of an a empt to commit a felony, engagement in a felonious activity or occupation, a self-inflicted injury, habitual drunkenness or use of narcotics not prescribed by a Physician. The determination as to whether you are unable to perform work in the Building and Construction Industry rests solely with the Board. From time to time, the Board may request evidence that the disability continues. Proof of Disability Required So that your Disability Pension becomes payable as soon as possible, you should file your completed pension application with the Trust Fund Office no later than the sixth month of disability along with proof of your disability. If you have been approved for a Social Security Disability, a copy of the Social Security Notice of Award should be sent to the Trust Fund Office so that it is received at the Trust Fund Office no later than 60 days from the date the Notice is issued. This will permit the Plan to pay benefits retroactive to the seventh month of disability. Otherwise, the benefit will become effective the first of the month following the date the Trust Fund Office receives the Notice. In certain cases, a disability finding by another organization may be considered equal to the Social Security Notice of Award. 24

27 In the absence of a Social Security Award or its equivalent, you will be required to submit medical evidence of your disability on a form approved by the Board, as well as medical records that relate to the disability. On the form, the physician should describe the disability and issue an opinion as to whether you are unable to perform work as a laborer in the Building and Construction Industry. If you are approved based upon medical evidence and you are subsequently also awarded a Social Security Disability Benefit, a copy of the Social Security Notice of Award should be sent to the Trust Fund Office so that it is received at the Trust Fund no later than 60 days from the date the Notice is issued. Pension Amount Sections and 3.19., pages 78 and 82 The monthly amount of the Disability Pension effective on and a er January 1, 1997 is $50.00 for each Benefit Unit plus any fraction. A supplemental benefit of $50.00 per month is added to this total. If you have not worked at least 435 hours in Covered Employment in either one of 2 consecutive Plan Credit Years, the amount of monthly pension earned before a Separation from Covered Employment remains frozen (but not less than $22.00 for each Benefit Unit). If you return to Covered Employment and earn additional benefits, the pension amount earned a er you return will be based on the amount payable under the Plan at that time. The monthly amount of a Disability Pension will not be less than the monthly amount payable at your age under an Early Retirement Pension (but not less than an Early Retirement Pension payable at age 55). If You Are Married When You Retire If you are married when you retire, the amount of the Disability Pension will be reduced as described under the 50% Husband-and-Wife Pension, (Section 7.05.a., page 102), or you may choose to take your pension in the form of a 75% Husband-and-Wife Pension, (Section 7.06.a., page 102), or a 100% Husband-and-Wife Pension, (Section 7.06.b., page 103), or Single- Life Pension or a Single-Life Pension with a Five-Year Guarantee Option, (Section 8.02., page 106). Any one of the Husband-and-Wife Pension payment forms provides a lifetime benefit to your Spouse upon your death. If you elect a Single-Life Pension or Single-Life Pension with a Five-Year Guarantee Option, you must have the wri en consent of your Spouse on a form approved by the Board. Your Spouse s signature must be witnessed by either a Notary Public or a Trust Fund Representative. 25

28 Pension Payments Section 3.09., page 79 Disability Pension payments begin a er you have been disabled for 6 full calendar months, if you file an application before then, or you file your Notice of entitlement to Social Security Disability benefits, or equivalent with the Trust Fund Office so that it is received at the Trust Fund Office within 60 days from the date shown on the Notice. Otherwise, payments will not begin until the first day of the month a er you file an application with the Trust Fund Office. A Disability Pension is payable for as long as you remain totally disabled. If You Recover from a Disability Section 3.12., page 80 Once you recover from your disability, you are no longer eligible to receive a Disability Pension from the Plan. However, if you return to work in Covered Employment, you can then earn additional benefits. If you are receiving a Disability Pension and you are younger than age 65 and no longer eligible for a Social Security Disability benefit, or its equivalent, or if you recover from your disability, you must report this to the Trust Fund Office, in writing, within 15 days from the date you receive notice from the Social Security Administration (or equivalent) of your loss of eligibility or your recovery, as the case may be. Otherwise, you could lose benefits when you retire again. If you are receiving a Disability Pension and you a ain age 65, your pension will continue for the remainder of your life, so long as you remain retired, even if you recover from disability. A Totally Disabled Pensioner Receiving an Early Retirement or Service Pension Sections and 3.11., page 80 If you are a Pensioner receiving an Early Retirement Pension who was totally disabled when your pension began, or you are a Pensioner receiving a Service Pension who becomes totally disabled, you may change your pension to a Disability Pension, if you choose. Depending upon whether the effective date of the Disability Pension falls before or a er the effective date of the Early Retirement Pension, the Plan may owe you additional monies or the Plan may need to recover an overpayment from you. 26

29 Eligibility Section 3.14., page 81 Service Pension Sections 3.14, and 3.15., page 81 When you retire, you are eligible for a Service Pension if: 1. you are younger than age 65; and 2. you have earned at least 25 Benefit Units without a Permanent Break in Service (no more than one Benefit Unit per Plan Credit Year will be counted for this purpose); and 3. you have worked at least 500 hours in Covered Employment since August Pension Amount Sections and 3.19., pages 81 and 82 The monthly amount of the Service Pension is determined in the same manner as is the Regular Pension. (See page 20 for an example of the way a Regular Pension is calculated and Section 3.03, page ) If You Are Married When You Retire If you are married when you retire, the amount of the Service Pension will be reduced as described under the 50% Husband-and-Wife Pension, (Section a., page 102), or you may choose to take your pension in the form of a 75% Husband-and-Wife Pension, (Section 7.06.a., page 102), or a 100% Husband-and-Wife Pension, (Section 7.06.b., page 103), or Single-Life Pension or a Single-Life Pension with a Five-Year Guarantee Option, (Section 8.02., page 106). Any one of the Husband-and- Wife Pension payment forms provides a lifetime benefit to your Spouse upon your death. If you elect a Single-Life Pension or Single-Life Pension with a Five-Year Guarantee Option, you must have the wri en consent of your Spouse on a form approved by the Board. Your Spouse s signature must be witnessed by either a Notary Public or a Trust Fund Representative. 27