ASBESTOS WORKERS LOCAL UNION NO. 80 SUPPLEMENTAL PENSION FUND SUMMARY PLAN DESCRIPTION

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1 ASBESTOS WORKERS LOCAL UNION NO. 80 SUPPLEMENTAL PENSION FUND SUMMARY PLAN DESCRIPTION INTRODUCTION The Asbestos Workers Local Union No. 80 Supplemental Pension Fund provides retirement benefits to participating employees in addition to benefits from the National Asbestos Workers Pension Fund and other pension plans in which you participate. This Fund operates as an individual account pension plan. This means that your benefit is determined by an Individual Account in your name. Your benefit is based solely on the amount of money in your Individual Account when it is paid to you at retirement, disability or separation from employment or when it is paid to your spouse or beneficiary on your death. The Fund also is a profit-sharing plan. The only effect this will have on you is if your Employer fails to make its contributions to the Fund and the Fund is unsuccessful in its collection efforts. In that event, the delinquency will be allocated among the employees of that Employer, as required by law. This booklet summarizes the benefits of the Fund and how the Fund works. You may also wish to read the official text of the Fund s Plan of Benefits. This document may be obtained from the Fund Office, from Asbestos Workers Local Union No. 80 or from your Employer. Who Is Covered By The Fund? FUND COVERAGE You are immediately covered by the Fund when you work in employment covered by a Collective Bargaining Agreement between Asbestos Workers Local Union No. 80 and your Employer that requires your Employer to make contributions to this Fund on your behalf. You cannot be covered by this Fund if you are a self-employed person or owner of an unincorporated company which is a contributing Employer. If you are an Employee of Local Union No. 80 or a non-collectively bargained employee of a contributing Employer, you may also be covered by the Fund under a Participation Agreement between Local 80 or the Employer and the Trustees. If you are a non-collectively bargained employee who has never been covered by this Fund as a collectively bargained employee, you will begin participating in this Fund, and your Employer will begin contributing for you, after you complete 1000 hours for which you are paid in a job category that is covered by this Fund. There are special rules that apply to non-collectively bargained employees in the Fund. The law requires your Employer to provide benefits to employees in a way that does not unduly Summary Plan Description Page 1

2 favor the higher paid employees. All of the pension plans provided by your employer, not just this Fund, are considered together to determine if the total pension benefits provided by your employer improperly favor the higher paid employees. Your Employer is required to satisfy some very detailed rules in the Internal Revenue Code and in the Plan of Benefits to insure that the benefits do not improperly favor higher paid employees. If an Employer violates these rules in the Internal Revenue Code and the Plan of Benefits in a Plan Year or does not provide information to the Fund to determine that the rules are met for a Plan Year, the non-collectively bargained Employees of that Employer will not earn benefits under this Fund for that Plan Year. Who Makes The Contributions To The Fund? Contributions on your behalf are made only by your Employer at the hourly rate stated in the Collective Bargaining Agreement. The contribution rate for Employees of Local 80 and noncollectively bargained Employees of Employers is provided in the Participation Agreement with the Trustees. The contributions on behalf of non-collectively bargained employees may be a uniform amount per hour or a uniform percentage of the employee s compensation. Employees may not make contributions to the Fund under any circumstances. Will Contributions Be Made For Time In Military Service? If you are in military service that qualifies under federal law, you will receive contributions to the Fund for your time in the military. These contributions will be treated as a Fund-wide expense. You should check with the Fund Office for additional information. How Much May Be Contributed To The Fund? Although there is no maximum Contribution Rate to the Supplemental Pension Plan established by the Trustees, the law provides that contributions to an Employee s Individual Account may not exceed the lesser of 100% of the employee s compensation from contributing Employers or $40,000 adjusted annually for inflation. For the 2005 calendar year, that amount has been adjusted to $42,000. For Employees covered by a Collective Bargaining Agreement, benefits and contributions under other collectively bargained plans such as the National Asbestos Workers Pension Fund do not affect the amount that may be contributed to this Fund. The maximum benefits permitted by law may be earned in each plan. However, in the case of Employees who are not covered by a Collective Bargaining Agreement, the law requires other pension plans which an Employer provides for them to be combined with this Fund to determine if the legal limitation on contribution has been exceeded. Summary Plan Description Page 2

3 HOW THE FUND WORKS Who Administers The Fund? The Fund is administered by a joint Board of Trustees with an equal number of Union representatives and representatives of contributing Employers. The Agreement and Declaration of Trust created the Fund and established the Trustees duties and authority to administer the Fund. The names, titles and business addresses of each of the Trustees are as follows: UNION TRUSTEES EMPLOYER TRUSTEES Steve Keller John Martin, Chairman c/o Asbestos Workers Local Union No Colony Drive 7901 State Rt. 34 Vienna, WV P.O. Box 806 Winfield, WV Shawn Fauber Thomas L. Burcham c/o Asbestos Workers Local Union No. 80 Master Mechanical Insulation, Inc State Rt th St. P.O. Box 806 Huntington, WV Winfield, WV Mark Thomas William Bud Turner c/o Asbestos Workers Local Union No. 80 Prime Insulation 7901 State Rt. 34 P.O. Box 9128 P.O. Box 806 Charleston, WV Winfield, WV The Trustees have contracted with the Administrative Agent, Carday Associates, Inc., to carry out the day-to-day administration of the Fund. Carday maintains the Fund Office. The address and phone number of the Administrative Agent is as follows: Carday Associates, Inc Columbia Gateway Drive, Suite A Columbia, Maryland (410) Normal Business Hours: 9 a.m. to 5 p.m., Monday through Friday What Is An Individual Account? An Individual Account is established for each Employee covered by the Fund. Contributions made on your behalf are credited to your Individual Account, along with your investment earnings. From your Individual Account will be deducted your investment losses, your share of the costs to operate the Fund, any individual expenses assessed against you, any Summary Plan Description Page 3

4 benefits paid to you and your share of any outstanding delinquencies incurred by any of your employers. When Is The Value Of My Individual Account Determined? The value of your Individual Account will be calculated on a daily basis to reflect investment gains and losses. You will receive statements at the end of each calendar quarter, which will reflect your investment gains and losses, contributions made on your behalf, your share of the costs to operate the Fund, any individual expenses assessed against you, any benefits paid to you and your share of any outstanding delinquencies incurred by any of your employers. When Will I Become Vested In My Individual Account? When you become a Participant in the Fund, an Individual Account is set up for you. You are immediately vested in the full amount in your Individual Account. Therefore, you cannot lose your right to benefits from this Fund. Can My Individual Account Ever Be Forfeited? If you cannot be located when you are eligible to receive a mandatory distribution (your Accumulated Share as of your last Annual Valuation Date was $1,000 or less and you have not worked in Covered Employment for at least six months), the assets of your Individual Account will be provisionally forfeited to the Fund and used to pay its administrative expenses. If you later are located by the Fund, the amount in your Individual Account that had been forfeited will be restored to your account. Can I Roll Over Money Into My Individual Account? If you have assets that satisfy the requirements for an Eligible Rollover Distribution, you can roll these assets over into your Individual Account. You should consult with the Fund Office to find out the requirements for an Eligible Rollover Distribution. INDIVIDUAL EXPENSES Besides My Share Of The Fund s Operating Accounts, Will There Be Any Other Expense Taken Out Of My Individual Account? As permitted by law, certain administrative and legal expenses will be charged to your Individual Account. If you apply for a Hardship Withdrawal or a Separation Benefit, there will be a $ administrative processing fee charged to your Individual Account. Also, if you submit a domestic relations order to the Fund for a determination as to whether it is a Qualified Domestic Relations Order, a $ administrative fee will be charged to your Individual Account before that Individual Account is divided under the Qualified Domestic Relations Order. Additionally, If your Individual Account is payable to you as a Mandatory Distribution, an administrative fee equal to 10% of your Individual Account will be charged. Any costs Summary Plan Description Page 4

5 incurred attempting to locate a missing Participant will be charged to the Individual Account of that Participant. Any costs incurred in providing you with an Eligible Rollover Distribution or accepting an Eligible Rollover Distribution into the Fund will be charged to your Individual Account. Finally, legal expenses incurred by the Fund related to a Hardship Withdrawal, Separation Benefit, Qualified Domestic Relations Order, Mandatory Distribution, missing Participant or Eligible Rollover Distribution will be charged to your Individual Account. How Is My Individual Account Invested? INVESTMENT OF FUND ASSETS Starting March 15, 2006, you will be given the opportunity to direct the investment of your Individual Account. You will be able to select from among a range of investment alternatives. Information about these alternatives and other features of this self-directed investment program will be provided by ING, which the Board of Trustees has retained to manage the program and serve as custodian and record keeper for the Fund. What If I Do Not Choose How My Individual Account Is To Be Invested? If you do not choose how you want your Individual Account to be invested, then the assets of your Individual Account will be placed in a default fund selected by the Board of Trustees in consultation with ING. This default fund will be relatively conservative in its investment approach. If your Individual Account is placed in the default fund, you can remove it from there and invest it at any time in any of the investment alternatives that are available. What If I Lose Money On My Investments? Because you have the ability to choose how your Individual Account is invested, this program satisfies the requirements of Section 404(c) of the Employee Retirement Income Security Act. Therefore, neither the Board of Trustees of the Fund nor ING will be responsible for any losses that may result from the investment choices you make. How Can I Get More Information About The Investment Of My Individual Account? If you have any questions about how this program operates or about the investment alternatives from which you can choose, you can contact ING at (888) FUND BENEFITS When May I Receive My Benefits From This Fund? You are eligible for benefits from the Fund when you: Summary Plan Description Page 5

6 retire; become permanently and totally disabled; separate from employment covered by this Fund; meet the requirements for a Mandatory Distribution; or if your employer terminates from the Fund. This booklet describes the rules for receiving benefits in each of these circumstances. How Much Will My Benefit Be? When you become eligible to receive a benefit from the Fund and complete the Fund s application requirements, the amount you receive will be equal to the value of your Individual Account as of your Effective Date of Benefits, subject to any reduction that has not previously been applied to your Individual Account for your share of the costs to operate the Fund, any individual expenses assessed against you, any benefits paid to you and your share of any outstanding delinquencies incurred by any of your employers. The total of these amounts is known as your Accumulated Share. Your benefit is your Accumulated Share. When May I Retire Under This Fund? To be considered retired under the Fund, you must permanently leave employment covered by this Fund. You must also meet the age and other conditions for a retirement benefit stated in the Fund. A Retirement Benefit is payable when you permanently leave employment covered by this Fund, apply for your benefit, and provide proof that you are at least age 55, or if you are not yet age 55, provide proof that you are eligible for an immediate pension from the National Asbestos Workers Pension Fund or another collectively bargained pension plan established by an Asbestos Worker Local Union and contributing employers. Summary Plan Description Page 6

7 When May I Receive A Separation Benefit? A Separation Benefit is payable if you have not worked in employment covered by this Fund for a period of at least six months. You must apply for a Separation Benefit; it will not be paid automatically. A Separation Benefit will not be paid if at the time you apply for the benefit, or at the time payment is to be made, you are working in employment covered by this Fund or you are employed in the insulation industry in a job category covered by this Fund in the United States or Canada. However, you will be eligible to receive the Separation Benefit if you are engaged in work under a collective bargaining agreement entered into by another local union of the International Association of Heat and Frost Insulators and Asbestos Workers. When May I Receive A Termination Benefit? A Termination Benefit is payable after a period of six months if your Employer no longer has an obligation to contribute to the Fund on your behalf because of a change in the terms of the Collective Bargaining Agreement or a Participation Agreement. You will not be eligible for this benefit if you are working for another Employer in Covered Employment or working in the same industry, in the same trade, craft or job of the type covered by the Fund and in the geographic area covered by the Fund. You must apply for the Termination Benefit; it will not be paid automatically. However, if you are eligible for a Termination Benefit and your Individual Account has a balance of $1, or less, it will be paid to you automatically in a lump sum. When May I Receive A Disability Benefit? A Disability Benefit is payable at any age if you are totally and permanently disabled. You are totally and permanently disabled if you are completely unable to engage in the type of employment in which you were covered by this Fund and it is reasonably certain that your condition will continue for your remaining lifetime. You must apply for a Disability Benefit and provide proof of your total and permanent disability. The evidence of your disability which may be submitted includes proof of your entitlement to Social Security Disability Benefits or medical reports sufficiently detailed for the Trustees to determine whether you are totally and permanently disabled. In addition, the Trustees may require you to be examined by a physician selected by them. When Will I Receive A Mandatory Distribution? If a Participant s Individual Account has a balance of $ or less as of the end of the Plan Year (June 30) and the Participant has not worked in employment for which contributions are payable to the Fund for the preceding six months, the Participant s Individual Account will be automatically distributed in a lump sum. Summary Plan Description Page 7

8 How Are My Benefits Paid? If your Accumulated Share is $5,000 or less, your benefit can be paid only as a single lump sum. If you are not married and your Accumulated Share is more than $5,000, your benefit will be paid automatically as a Single Life Pension unless you waive this method of payment and choose another method of payment. A Single Life Pension provides a monthly lifetime payment to you. If you are married and your Accumulated Share is more than $5,000, your benefit will be paid automatically as a 50% Husband and Wife Pension unless you waive this method of payment and choose another method of payment with your spouse s consent. Your spouse s consent must be notarized. The 50% Husband and Wife pension provides a monthly lifetime payment to you, and if you die before your spouse, 50% of your monthly payment will continue to your spouse for his or her lifetime. If you waive the Single Life Pension or 50% Husband and Wife Pension, you may elect to have your benefits paid as follows: a single lump sum, or equal monthly installments, paid over a period of from 3 to 10 years, or a lump sum plus equal monthly installments, paid over a period of from 3 to 10 years. If your Accumulated Share is paid in installments, the last payment will be adjusted to include net investment earnings (total income minus total expenses) during the period the installments were paid to you. How Is A Life Time Pension (Annuity) Paid? LIFE TIME PENSIONS (ANNUITIES) A Single Life Pension (often called an annuity ) is purchased by the Fund from an insurance carrier, to provide monthly payments to you for your lifetime. Similarly, a 50% Husband and Wife Pension (which is a joint life annuity) is purchased by the Fund from an insurance carrier to provide for monthly payments to you for your lifetime and upon your death (if you die before your spouse), monthly payments to your spouse for his or her lifetime which is 50% of the monthly benefit which was being paid to you. The amount of your monthly payment (and if applicable, the monthly payment to your spouse), is based on the amount in your Individual Account and your expected lifetime(s). Fees and costs directly related to the purchase of an annuity will be deducted from your Accumulated Share, and the balance which remains will determine the monthly payments you will receive. Summary Plan Description Page 8

9 If you apply for a Retirement, Separation, Termination or Disability Benefit and your Accumulated Share is more than $5,000, you will be provided with the estimated monthly benefit amount of a Single Life Pension or 50% Husband and Wife Annuity as well as the other payment methods permitted by the Fund. The law requires that this information must be provided at least 30 days before your benefit is effective. You have up to 180 days after receiving this information to waive the Single Life Pension or, if you are married, the 50% Husband and Wife Pension. If you do not waive the standard benefit form applicable to you, your benefit will be paid in this form. If you wish to waive the Single Life Pension or if you and your spouse wish to waive the 50% Husband and Wife Pension in order to receive your benefits in another method of payment provided by the Fund, you must pay careful attention to the instructions for completing the application and the instructions for waiving the lifetime (annuity) benefits. You must also pay careful attention to the dates by which your application and/or supporting documents or waiver forms must be submitted. If you have any questions, you should contact the Fund Office. For the purpose of computing the 50% Husband and Wife Pension, your spouse is the person to whom you are married on the Effective Date of your benefit. The person to whom you are married on the Effective Date is the person who must consent to a waiver of the 50% Husband and Wife Pension. Once a 50% Husband and Wife Pension becomes payable, it cannot be revoked. If your spouse dies after the Pension becomes payable, your monthly payment will not be increased and no one can be substituted as your beneficiary for your spouse. In the event you and your spouse are divorced after the 50% Husband and Wife Pension becomes payable, your former spouse will continue to be entitled to receive the survivor benefit if you predecease her. SURVIVOR BENEFITS Are Any Survivor Benefits Payable After Retirement? If you and your spouse elected the 50% Husband and Wife Pension, your spouse would receive the survivor portion of this benefit upon your death. In addition, if you elected to receive your Accumulated Share in an installment form, any remainder of your Accumulated Share would be paid to your beneficiary in a lump sum. What Is A Preretirement Death Benefit? If you should die before you begin to receive your benefits from this Fund, your Accumulated Share will be paid to your beneficiary in a lump sum. If you are married on the date of your death, one-half of your Accumulated Share will be used to provide a Preretirement Surviving Spouse Benefit to your surviving spouse and the remaining half will be paid to your beneficiary as a Preretirement Death Benefit. Summary Plan Description Page 9

10 What Is A Preretirement Surviving Spouse Benefit? The Preretirement Surviving Spouse Benefit provides that if you are married at the time of your death, one-half of your Accumulated Share will be paid to your surviving spouse as a monthly pension for his/her lifetime. If one-half of your Accumulated Share is $5,000 or less, the Preretirement Surviving Spouse Benefit will be paid in a lump sum. If this sum is more than $5,000, your surviving spouse can take it as a benefit for her life or elect to receive it in any other form provided by the Fund. If your spouse is your designated beneficiary for your entire Accumulated Share, and the Preretirement Surviving Spouse Benefit is not required to be paid in a lump sum as described above, your spouse can elect to receive the benefit in any form provided by the Fund. Election of the benefit form must be provided in writing, and it must be witnessed by a notary public. When Is The Preretirement Surviving Spouse Benefit Paid? The Preretirement Surviving Spouse Benefit is payable to the surviving spouse at any time after your death. Before the Fund Office can pay the benefit, an application must be received that includes all information required to process the claim. The surviving spouse may not postpone the start of benefit payments beyond the April 1st following the calendar year in which the Participant would have reached age 70½. How Do I Designate A Beneficiary? When you become covered by the Fund, you should name someone to receive your Accumulated Share if you die. You may change your beneficiary designation at any time by filling out a new Beneficiary Form. A Designation of Beneficiary form is available from the Fund Office. The Fund will honor the last beneficiary designation received before your death. If you are married, your spouse is entitled by law to one-half of your Accumulated Share as a Preretirement Surviving Spouse Benefit. You may also designate your spouse to be your beneficiary for the Preretirement Death Benefit; your spouse will then receive 100% of your Accumulated Share. You may designate any other person to receive one-half of your Accumulated Share instead of your spouse. What Happens If There Is No Beneficiary? If you have not designated a beneficiary for this Fund, or your beneficiary is not living at the time of your death, any survivor benefits payable upon your behalf will be paid to the first person(s) in the following order who is living at the time of your death: 1. your spouse, 2. your children, Summary Plan Description Page 10

11 3. your parents, 4. your brothers and sisters, or 5. the personal representative of your estate. If two or more persons become entitled to payment of survivor Benefits, the benefit will be divided equally among them. What Is A Hardship Withdrawal? HARDSHIP WITHDRAWAL A Hardship Withdrawal allows a Participant to withdraw money from his Individual Account if he has certain specific immediate and heavy financial needs. A Hardship Withdrawal is not a loan, and the Participant is neither required nor permitted to pay the amount withdrawn back into his Individual Account. What Type Of Financial Need Must There Be To Be Eligible For A Hardship Withdrawal? A Hardship Withdrawal will be given only if it is for one of the following reasons: unreimbursable medical expenses of a Participant or dependents; purchase of a principal residence (not mortgage payments); post-secondary educational expenses for Participant or dependent for the next 12 months (college or professional); to prevent eviction from or foreclosure of principal residence; unreimbursable funeral expenses for family member; expenses for the repair of damage to a Participant s principal residence, provided that this expense would qualify for the casualty deduction under Section 165 of the Internal Revenue Code; unreimbursable medical expense for non-dependent family member. What Other Requirements Must Be Met To Receive A Hardship Withdrawal? To receive a Hardship Withdrawal, the Participant must have an immediate and heavy financial need which he cannot meet from other sources, such as savings, distributions from other plans or commercial borrowing at reasonable terms. The amount of the Hardship Withdrawal is limited to the amount needed to meet the immediate need. The Participant must complete the Application of Hardship Withdrawal and the Affidavit of Need and return these to Summary Plan Description Page 11

12 the Fund Office. Also, if the reason for needing the money is either a family member s funeral expenses or the medical expenses of a non-dependent family member such as a parent, the Participant will have to provide documentation of these expenses. Are There Other Restrictions On Getting a Hardship Withdrawal? The minimum amount that can be taken in a Hardship Withdrawal is $1,000. The maximum amount is 90% of your Individual Account, determined after the Fund has withheld 10% of the distribution for tax purposes. A Hardship Withdrawal can be taken only once a Plan Year, unless the Board of Trustees determines based on documentary evidence provided by the Participant that there are extraordinary circumstances allowing an additional Hardship Withdrawal. Also, effective for any Hardship Withdrawals starting July 1, 2010, a Participant will be limited to a single Hardship Withdrawal in a 12-month period, unless the Board of Trustees determines based on documentary evidence provided by the Participant that there are extraordinary circumstances allowing an additional Hardship Withdrawal. How Does Taking A Hardship Withdrawal Affect My Taxes? Money received as a Hardship Withdrawal will be treated as taxable income for federal tax purposes. The Fund is ordinarily required by Federal law to withhold 10% of the amount of the Hardship Withdrawal for federal tax purposes. However, you can choose not to have the Fund withhold this 10% by filling out the Waiver attached to the Application for Hardship Withdrawal and returning it to the Fund Office. If you do so, you will be responsible for paying the full amount of federal tax owed. If you choose not to complete the Waiver, the Fund will withhold 10% for tax purposes. Also, you can elect to have the Fund withhold an additional 10% for tax purposes by filling out the Additional Withholding request attached to the Application. Finally, if you are under age 59½, you will owe an additional 10% in federal income tax. The Fund will not deduct this amount; it will be your responsibility to pay. However, if the reason you are taking the withdrawal is to pay medical expenses, you will not owe this extra 10% if the amount of these expenses is more than 7.5% of your gross income. You should seek the assistance of a tax professional if you have any questions about tax liability for your hardship withdrawal. APPLYING FOR BENEFITS What Should I Know About Applying For Benefits? The payment of benefits from this Fund is not automatic. You must apply for benefits on the application form provided by the Trustees. An application form may be obtained from the Fund Office or from Local Union No. 80. When Do Benefits Begin? Benefits will be paid on the date you indicate on your application if all evidence required for the payment of your benefit has been received by the Fund Office. Under the law, payment of your benefit cannot begin more than 90 days or less than 30 days after you are provided with Summary Plan Description Page 12

13 an explanation and comparison of the different methods for payment of your benefit under the Fund. However, your benefit may be paid immediately after a complete application has been filed if your Accumulated Share is $5,000 or less, the benefit is being paid as a Husband and Wife Pension after you have reached age 65 or if you are not married and you consent to the immediate payment. Also, if you elect the Single Life Pension, it may begin before the end of the 30-day period even if you are married, as long as certain conditions are met. Please check with the Fund Office to get a detailed explanation of these requirements. Finally, the Fund requires that your benefits must begin no later than the April 1st following the calendar year in which you reach the age of 70½. What If I Return To Covered Employment After Benefits Are Paid? If you return to employment covered by this Fund, you will again participate in the Fund upon receipt of contributions for your work in Covered Employment. If you are a noncollectively bargained employee who has never been covered by this Fund as a collectively bargained employee, you will again participate in this Fund after you complete 1000 hours for which you are paid in a job category that is covered by this Fund. If My Application Is Denied, Do I Have The Right To Appeal? If your application for benefits is denied in whole or in part, the Fund Office will provide you with a written notice of the denial within 90 days after the Fund Office receives your application, unless special circumstances require an extension of time to process your application. If the Fund Office needs more than 90 days to process your application, you will be notified in writing before the first 90-day period is up. The written notice of denial will explain the reasons why your application was denied. It will refer to any pertinent provisions in the Plan of Benefits, describe any additional material or information which might help your claim, explain why that information is necessary and advise you of your appeal rights. If you receive a denial notice, you may request the Trustees to review the denial by submitting a written appeal to the Trustees at the Fund Office. Your written appeal must be submitted within 180 days of receiving the notice of denial. Your written appeal should state the reasons for your appeal. This does not mean that you are required to cite all applicable plan provisions or to make legal arguments; however, you should state clearly why you believe you are entitled to the benefit. The Trustees can best consider your position if they clearly understand your claims, reasons and/or objections. You can submit written materials and documents in support of your appeal. You have the right to request Fund documents that are relevant to your appeal. Your appeal may be submitted to: Board of Trustees of the Asbestos Workers Local Union No. 80 Supplemental Pension Fund 7130 Columbia Gateway Drive, Suite A Columbia, MD Summary Plan Description Page 13

14 When Will A Decision Be Made On My Appeal? The Board of Trustees, or a committee of Trustees appointed by the full Board, will review your appeal. The Board of Trustees will provide you with a written notice of its decision within 60 days after the Fund Office receives your appeal, unless special circumstances require an extension of time. If the Board of Trustees needs more than 60 days to decide your appeal, you will be notified in writing before the first 60-day period is up. You will receive written notice of the decision of the Trustees promptly after their review. The notice will explain the reasons for the decision, and will include specific references to Fund provisions or other evidence on which the decision is based. In connection with your appeal, you may review relevant documents in the Fund Office or you may request that documents be provided to you. The Fund may charge you $.25 per page to provide these documents, and the cost must be paid in advance. What Time Frames Govern Application For A Disability Pension? If you apply for a Disability Pension, the Fund Office will provide you with a written notice of a denial within 45 days after the Fund Office receives your application, unless special circumstances require an extension of time to process your application. If the Fund Office needs more than 45 days to process your application, you will be notified in writing before this period is up. Your written appeal must be submitted within 180 days of receiving the notice of denial. The Board of Trustees, or a committee of Trustees appointed by the full Board, will review your appeal. The Board of Trustees will provide you with a written notice of its decision within 45 days after the Fund Office receives your appeal, unless special circumstances require an extension of time. If the Board of Trustees needs more than 45 days to decide your appeal, you will be notified in writing before this period is up. ADDITIONAL INFORMATION If I Owe Money, Can I Sign Over My Account Balance? No. The law requires the Fund to include a provision prohibiting the assignment of your benefit to another person. This is for your protection. However, if the Trustees receive a domestic relations order which the Fund determines is a Qualified Domestic Relations Order requiring that some or all of your benefit be paid to an alternate payee (your former spouse or your child), that order will be honored to the extent required by law. What Rights To My Benefit Can My Ex-Spouse Or Dependents Have? If you become divorced, your ex-spouse, child or other dependent may be entitled to receive some or all of your benefits under the Fund to the extent awarded in a court decree which meets the legal requirements for a Qualified Domestic Relations Order. Upon request, the Fund Summary Plan Description Page 14

15 Office will provide the Fund s Procedures and Requirements for Qualified Domestic Relations Orders. Are My Benefits From This Fund Affected By Receipt Of Social Security Or Other Benefits? No. Your benefits from this Fund are in addition to any Social Security or other retirement benefits and are not affected by them. However, as explained above, if you are an Employee who is not covered by a Collective Bargaining Agreement, the law requires other pension plans which an Employer provides for them to be combined with this Fund to determine if the legal limitation on contributions has been exceeded. Do I Have To Pay Tax On The Money Earned In My Individual Account? The money in your Individual Account is not considered taxable income to you until you actually receive it. Therefore, while the money remains in the Fund, no taxes are paid either on the contributions made on your behalf or on the earnings on those contributions. When you receive the money in your Individual Account as benefits, however, it must be reported as taxable income. The law requires the Fund to withhold 20% of benefits paid in a lump sum or in installments for less than 10 years for taxes unless these benefits are paid directly to the Trustee of your Individual Retirement Account (IRA) or another pension plan in which you participate. If benefits are paid directly to an IRA or another plan they are referred to as a direct rollover. The benefits that are subject to the mandatory 20% income tax withholding unless they are rolled over directly to an IRA or other plan are called Eligible Rollover Distributions. Not all benefit payments from this Fund are Eligible Rollover Distributions as defined in the law. An Eligible Rollover Distribution does not include benefits paid as a Single Life Pension or benefits paid as a 50% Husband and Wife Pension or benefits paid in installments for 10 years. It does not include benefits paid because you have reached age 70½. It does not include benefits (up to $5,000) that are not taxable to your beneficiary under a death benefit exception. The Fund is not required to withhold 20% for income taxes from a benefit that is not an Eligible Rollover Distribution. If benefits are payable to the surviving spouse of a deceased Participant, the designated beneficiary of a deceased Participant or an Alternate Payee of a Participant under a Qualified Domestic Relations Order, they may be eligible to have this benefit treated as an Eligible Rollover Distribution. They should consult with the Fund Office for additional information. In addition, if benefits are paid as a lump sum or in installments before you have attained age 55, an additional 10% tax is applied as a penalty for receiving the benefit so early. This penalty may be avoided if the benefits are rolled over directly to an IRA or other pension plan. Also this additional tax is not charged if you receive benefits after age 55 or a life annuity or disability benefits at any age. Summary Plan Description Page 15

16 You will receive a detailed explanation of these rules at the time you apply for your benefits. You should seek professional tax advice for assistance when benefits are paid from your Individual Account. Your Rights Under The Law Some basic rights were included in the Employee Retirement Income Security Act of 1974 (ERISA). These rights apply to all retirement benefit plans, including the Asbestos Workers Local Union No. 80 Supplemental Pension Fund. According to law, you are entitled to: Examine, without charge, at the Fund Office, all Fund documents, including insurance contracts (if any) and copies of all documents filed by the Fund with the U.S. Department of Labor. These include detailed annual reports. Get copies of documents governing the operation of the Fund, including insurance contracts and collective bargaining agreements. You must ask for this material in writing. The Trustees may make a reasonable charge for the copies. Receive a summary of the Fund s annual financial report. The Fund Administrator by law has to give you a copy of this summary report every year. Obtain a statement telling you whether you have a right to receive a benefit at your normal retirement date and, if so, what your benefit would be if you stopped working now. If you do not have a right to a benefit now, the statement will tell you when you will. You have to ask for this statement in writing. The Fund must provide this statement free of charge. You have the right to have such statement once a year. In addition to outlining your rights as a Fund member, ERISA imposes duties upon the people who are responsible for the administration of your Fund. The people who administer your Fund are called fiduciaries. They have a duty to do their job prudently and in your interest and in the interest of all of the other Fund members and beneficiaries. No one not your employer, your union, nor any other person may fire you or in any way discriminate against you to prevent you from obtaining a benefit under this Fund or exercising your rights under ERISA. If your claim for a benefit is denied or ignored in whole or in part, you have the right to receive a written explanation of the reason for denial. You have the right to obtain copies of documents relating to the decision without charge. You have the right to appeal the denial within certain time limits. Under ERISA, there are steps you can take to enforce these rights. For example, if you ask for material to which you are entitled about your benefits and you don t get it within 30 days, you can file suit in a Federal court. In such a case, the court may hold the Fund Administrator liable for up to $100 a day until you receive such materials, unless you do not get the materials because of some reason beyond the control of the Fund Administrator. Summary Plan Description Page 16

17 If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal Court. If you disagree with the Fund s decision regarding the status of a domestic relations order, you may file suit in Federal court. If it should happen that the Fund fiduciaries misuse the Fund s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If the court decides in your favor, it may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. If you have any questions about this statement or about your rights under ERISA, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, DC You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Pension and Welfare Benefits Administration. Fund Identification OTHER IMPORTANT INFORMATION The official name of the Fund is the Asbestos Workers Local Union No. 80 Supplemental Pension Fund. The type of plan is a defined contribution pension plan. The Fund is also a profitsharing plan. Such a plan does not have termination insurance under the Pension Benefit Guaranty Corporation. The Employer Identification Number assigned by the Internal Revenue Service to the Board of Trustees is The Plan Number assigned by the Board of Trustees is 001. Plan Year For purposes of maintaining this Fund s financial records, the Plan Year uses the 12- month period from July 1st through June 30th. Service Of Legal Process The following has been designated as the agent for the service of legal process: President, Carday Associates, Inc Columbia Gateway Drive, Suite A Columbia, MD In addition, legal process may be served on any Fund Trustee. Summary Plan Description Page 17

18 Contribution Source All contributions to the Fund are made by employers in accordance with their Collective Bargaining Agreements with Local Union No. 80 affiliated with the International Association of Heat and Frost Insulators and Asbestos Workers or in accordance with a Participation Agreement between your Employer and the Fund. Collective Bargaining Agreements Your Fund is maintained pursuant to one or more collective bargaining agreements. A copy of the agreements may be obtained from the Fund Office upon written request. A charge may be made to cover the cost of providing the requested documents. The Fund Office will also provide you, upon written request, information as to whether a particular employer is contributing to this Fund on behalf of employees working under a collective bargaining agreement. Fund Documents A copy of Fund documents may be obtained from the Fund Office upon written request. A charge may be made to cover the cost of providing the requested documents. Also, you may examine the Fund Documents during normal business hours at the Fund Office or, within 10 days of a written request to the Fund Office, at the office of Local Union No. 80 or at work sites where 50 or more Participants customarily work. Funding Medium Benefits are provided from the Fund s assets, which are accumulated under the provisions of collective bargaining agreements and the Trust Agreement and are held in a trust fund for the sole purpose of providing benefits to covered participants and paying the Fund s administrative expenses. Fund Assets The Fund assets are held in trust by the custodian Smith Barney. Amendment Provisions The Board of Trustees has full authority to amend the Plan of Benefits. However, no amendment can be adopted which would reduce or eliminate benefits to which Participants have established an entitlement. Termination Provisions The Trustees shall have the right to terminate, suspend, amend or modify the terms of the Summary Plan Description in whole or in part at any time. The Trustees further have Summary Plan Description Page 18

19 authority to terminate the Summary Plan Description upon termination of the Asbestos Workers Local Union No. 80 Supplemental Pension Fund ( Fund ). The Fund may be terminated by an instrument in writing upon one of the following events: (a) the Trustees determine that the Fund is inadequate to carry out the purpose of the Trust Agreement, or is inadequate to meet the payments due or to become due under the Trust Agreement and under the Plan; (b) there are no individuals who qualify as Employees or Beneficiaries; (c) the Union and the Employers agree to terminate the Fund; or (d) there is no longer in force and effect Collective Bargaining Agreements or signed stipulations requiring contributions to the Fund. In the event of termination of the Fund, the Trustees shall make provisions for the payment of expenses up to the date of termination and the expenses incidental to termination; arrange for a final audit and other final reports; give notices and file reports required by law; and apply the Fund in accordance with the Plan until the entire Fund is disbursed. The Trustees shall not use any part of the corpus or income of the Fund for any purpose other than for the exclusive benefit of the employees and their beneficiaries or the administrative expenses of the Fund. Upon termination, the Trustees shall notify all interested parties and continue as Trustees for purposes of winding up the affairs of the Fund. Named Fiduciary The Board of Trustees is the Named Fiduciary of the Fund. Unless specified otherwise by the Board or as set out in the Trust Agreement, all their actions as Trustees will be considered as fiduciary in nature. Where To Get More Information You may obtain additional information about the Fund by writing to or visiting the Fund Office. Be sure to include your name, address, Social Security Number and the name of your Contributing Employer in any correspondence to the Fund Office. Summary Plan Description Page 19