Table of Contents

SECTION 1: LIFE EVENTS 1.01        Beginning Work 1.02        Getting Married or Divorced 1.03        Becoming Disabled 1.04        Preparing for Retirement and Applying for Your Pension 1.05        Returning to Work 1.06        In the Event of Death SECTION 2: PARTICIPATION 2.01        Covered Employment 2.02        Initial Participation 2.03        Termination of Participation 2.04        Reinstatement of Participation 2.05        Vested Participants SECTION 3: EARNING PENSION CREDITS 3.01        Pension Credits Earned on or after January 1, 2002 3.02        Pension Credits Earned from June 25, 1953 through Dec 31, 2001 3.03        Hour Bank Pension Credit 3.04        Pension Credits Earned Before June 25, 1953  3.05        Maximum Pension Credits 3.06        Pension Credit for Apprentices on or after June 1, 1978 3.07        Pension Credit for Military Service 3.08        Pension Credit Based on Reciprocal Employment SECTION 4: VESTING SERVICE 4.01        Becoming a Vested Participant 4.02        Earning Years of Vesting Service 4.03        How Vesting Service Differs from Pension Credit SECTION 5: BREAKS-IN-SERVICE 5.01        One-Year Break-in-Service 5.02        Permanent Break-in-Service on or after January 1, 1986 5.03        Permanent Break-in-Service from Jan 1, 1976 through Dec 31, 1985 5.04        Permanent Break-in-Service before January 1, 1976 SECTION 6: TYPES OF PENSIONS AND PENSION AMOUNTS 6.01        Pension Eligibility 6.02        Pension Amount 6.03        Period of Accrual 6.04        Regular Pension 6.05        Unreduced Early Retirement Pension 6.06        Early Retirement Pension (Reduced Benefit) 6.07        Deferred Pension 6.08        Normal Retirement Age Benefit 6.09        Disability Pension. SECTION 7: FORMS OF PENSION PAYMENT 7.01        Normal Form of Payment 7.02        100% Husband and Wife Pension Option. 7.03        Example of 50% and 100% Husband and Wife Pension SECTION 8: PRE-RETIREMENT DEATH BENEFITS 8.01        Pre-Retirement Survivor’s Pension (50% With No Actuarial Reduction) 8.02        Pre-Retirement Joint and Survivor Pension (50% With Actuarial Reduction) 8.03        Pre-Retirement 100% Husband and Wife Pension (With Actuarial Reduction) SECTION 9: APPLYING FOR YOUR BENEFITS 9.01        Filing Your Pension Application 9.02        Appealing a Denial of Pension Benefits 9.03        Review Rights If Your Claim Is Denied 9.04        Benefit Payment to an Incompetent Person 9.05        Exhaustion of Remedies SECTION 10: RETURNING TO WORK AFTER RETIREMENT 10.01      About Retirement 10.02      Suspension of Benefits 10.03      Contact the Fund Office When You Return to Work 10.04      Failure to Notify the Fund Office 10.05      Repayment Provisions 10.06      When Pension Payments Resume 10.07      Suspension of Benefit Rules in Plan Document SECTION 11: GENERAL INFORMATION ABOUT THE PLAN 11.01      Assignment of Rights 11.02      Rollovers 11.03      Mandatory Payout of Benefits 11.04      Qualified Domestic Relations Orders (QDROs) SECTION 12: ADMINISTRATIVE FACTS 12.01      Type of Plan 12.02      Plan Name 12.03      Restatement Date of Plan. 12.04      Plan Year 12.05      Identification Numbers 12.06      Plan Sponsor and Administrator 12.07      Agent for Service of Legal Process 12.08      Board of Trustees 12.09      Collective Bargaining Agreements 12.10      Source of Contributions 12.11      Pension Trust’s Assets and Reserves 12.12      Plan Amendment or Termination 12.13      The Plan Administrator 12.14      Actuarial Adjustments SECTION 13: DEFINITIONS 13.01      Union 13.02      Employer 13.03      Employee 13.04      Covered Employment 13.05      Hour of Service SECTION 14: FEDERAL RIGHTS AND PROTECTION 14.01      Benefit Protection Through the PBGC 14.02      Your Rights Under ERISA APPENDIX A: Former Plumbers and Pipe Fitters                     Local 81 Pension Fund (“Local 81 Plan”) Participants

SECTION 1: LIFE EVENTS

1.01     Beginning Work.

When you begin working in Covered Employment, you are working toward participation in the Plan. (See Section 2 regarding Participation.) If you are working for an Employer under an agreement that requires contributions to the Fund, then you are working in Covered Employment. Work as an apprentice under a collective bargaining agreement does not require contributions and will count toward participation and vesting, but not toward pension credit. However, if you later earn 10 pension years for which contributions to the Fund were made, you will receive pension credit for your work as an apprentice. (See Section 3.06 regarding apprentices.)

While you are working, you will want to check periodically with the Fund Office to verify the hours reported to make sure your hours are being properly credited. You should also contact the Fund Office to update your address and marital status if they change.

1.02     Getting Married or Divorced.

1.03     Becoming Disabled.

1.04     Preparing for Retirement and Applying for Your Pension.

1.05     Returning to Work.

1.06     In the Event of Death.

If you die, your spouse or representative should contact the Fund Office to determine if any benefits are payable. The Fund will need a copy of your death certificate and proof of marriage, if applicable. If you are married and die before you begin your pension, there may be a death benefit payable to your spouse depending on your years of service. (See Section 8 for more information regarding Pre-Retirement Death Benefits.) If you die after you begin your pension, the amount of the death benefit payable to your spouse will depend on the form of payment that you elected. (See Section 7 for more information on the Forms of Pension Payment.)

SECTION 2: PARTICIPATION

2.01     Covered Employment.

You are working toward participation in the Plan by working in Covered Employment. Covered employment includes work under a collective bargaining agreement that requires contributions to the Plan. Covered Employment also includes work by a non-bargained employee covered by a written agreement that requires contributions to the Plan.

Non-bargained employees that are covered by the Plan include:

1)      Employees of a contributing Employer covered by an alumni participation agreement;

2)      Employees of the Certified Welding Bureau; and

3)      All full-time employees of the Pipe Fitters’ Training Fund, Local 597, the Pipe Fitters’ Welfare Fund, Local 597, and the Pipe Fitters’ Retirement Fund, Local 597.

 

2.02     Initial Participation.

You become a participant in the Plan on the earliest January 1 or July 1 after you complete 900 hours of vesting service in a consecutive, 12-month period.  You become a participant retroactive to your first day of work.

 

2.03     Termination of Participation.

Unless you are vested, your participation will terminate as of the last day of any calendar year in which you do not complete at least 450 hours of vesting service. In this case you incur a one-year break-in-service, which is temporary. A one-year break can be repaired by returning to work and completing at least 450 hours of work in Covered Employment or 900 hours of vesting service before you incur a permanent break-in-service. For more information on breaks-in-service, see Section 5.

 

2.04     Reinstatement of Participation.

If you are no longer a participant because you incur a permanent break-in-service, you can become a participant again by returning to work in Covered Employment and meeting the requirements for initial participation explained above.

 

2.05     Vested Participants.

Once you meet the requirements for any kind of pension under the Plan, you will always be a participant under the Plan.

SECTION 3: EARNING PENSION CREDITS

You earn a pension based on the hours you work in Covered Employment each calendar year. The pension credits you earn throughout your career are used to determine the amount of the monthly pension benefit you will receive during retirement.

 

 

3.01     Pension Credits Earned on or After January 1, 2002.

Effective January 1, 2002, it is possible to earn more than one pension credit during a calendar year. You earn pension credits for the number of hours you work in Covered Employment in 1/10 increments with no rounding.

From January 1, 2002 Through December 31, 2002, you will be credited with 1/10 pension credit for every 150 hours you work in Covered Employment per calendar year.

From January 1, 2003 Through December 31, 2003, you will be credited with 1/10 pension credit for every 125 hours you work in Covered Employment per calendar year. In addition, this more generous rate will apply retroactively to the hours you worked in 2002 if, before the effective date of your pension, you work at least 450 hours in Covered Employment in 2003.

On and After January 1, 2004, you will be credited with 1/10 pension credit for every 100 hours you work in Covered Employment per calendar year. In addition, this more generous rate will apply retroactively to the hours you worked in 2002 and 2003 if, before the effective date of your pension, you work at least 450 hours in Covered Employment in 2003 and 2004.

For Example: Bruce works 1,700 hours in 2002, 1,800 hours in 2003, and 1,900 hours in 2004. At the end of 2002 his credits for 2002 are calculated based on 1/10 credit for each 150 hours worked in Covered Employment: 1,700 hours /150 x 1/10 = 1.1 pension credits. At the end of 2003 his credits for 2003 are calculated based on 1/10 credit for each 125 hours worked in Covered Employment: 1,800 hours /125 x 1/10 = 1.4 pension credits. Because Bruce meets the 450 hour requirement, his 1,700 hours worked in 2002 are now credited at the more generous rate as well: 1,700 hours /125 x 1/10 = 1.3 pension credits for 2002. At the end of 2004 his credits for 2004 are calculated based on 1/10 credit for each 100 hours worked in Covered Employment: 1,900 hours /100 x 1/10 = 1.9 pension credits for 2004. In addition, because Bruce worked at least 450 hours during 2003 and 2004, his credits for 2002 and 2003 are recalculated based on the more generous rate. For his 1,700 hours worked in 2002 his credits are retroactively recalculated as follows: 1,700 hours /100 x 1/10 = 1.7 pension credits for 2002. For his 1,800 hours worked in 2003 his credits are retroactively recalculated as follows: 1800 hours /100 x 1/10 = 1.8 pension credits for 2003. This example is summarized in the following table:
Year Hours Worked	Hours Worked in Year	Credit Calculated at End of Year
		2002	2003	2004
2002	1,700 hours	1.1 credits	1.3 credits	1.7 credits
2003	1,800 hours	NA	1.4 credits	1.8 credits
2004	1,900 hours	NA	NA	1.9 credits

3.02     Pension Credits Earned from June 25, 1953 Through December 31, 2001.

You earn pension credits based on work in Covered Employment for which Employer contributions are paid to the Fund. You earn these pension credits during the period June 25, 1953 through December 31, 2001 based on the following schedule: 

3.03     Hour Bank Pension Credit.

As of January 1, 2002, hour bank pension credits were eliminated. Under this provision you could have had up to one credit in reserve. If you had any hour bank pension credit in reserve as of December 31, 2001, you will receive pension credit for this hour bank pension credit if:

• The effective date of your pension is January 1, 2002 or later; and

• You work at least 450 hours in Covered Employment after January 1, 2001.

Before January 1, 2002, when the maximum that could be earned was one credit per year, it was possible to earn a reserve of up to one hour bank pension credit. If you had more than 1,500 hours of contributions in a calendar year, you could earn a reserve of an additional one-tenth pension credit for each 150 hours worked in excess of 1,500 hours in that calendar year. This reserve added to your pension credit in any year in which:

You were credited with less than three-tenths because of disability, but were credited with at least three-tenths in the year immediately before that year. 

The hour bank reserve was first effective for hours worked in 1972 and the total reserve at any one time could be no greater than one full pension credit. In no event could the total number of pension credits at retirement exceed the number of years you worked in Covered Employment. In other words, you could not earn more than one pension credit for any calendar year.

 

Pension Credit Example: Sam first became a participant in 1985 and over the next 20 years had the following work record until beginning his pension, effective January 1, 2005.
	Year	Hours	Pension Credit for Hours Worked in Current Year	Amount Added to Reserve Credit in Current Year	Reserve Credit	Amount Subtracted from Reserve Credit for Accrual in Current Year	Total Accrual in Current Year
	1985	2,000	1.0	0.3	0.3		1.0
	1986	2,000	1.0	0.3	0.6		1.0
	1987	2,000	1.0	0.3	0.9		1.0
	1988	2,000	1.0	0.1	1.0		1.0
	1989	2,000	1.0		1.0		1.0
	1990	2,000	1.0		1.0		1.0
	1991	1,000	0.6		0.6	0.4	1.0
	1992	400	0.2		0.6	0.0	0.2
	1993	500	0.3		0.0	0.6	0.9
	1994	2,000	1.0	0.3	0.3		1.0
	1995	2,000	1.0	0.3	0.6		1.0
	1996	2,000	1.0	0.3	0.9		1.0
	1997	2,000	1.0	0.1	1.0		1.0
	1998	2,000	1.0		1.0		1.0
	1999	2,000	1.0		1.0		1.0
	2000	2,000	1.0		1.0		1.0
	2001	2,000	1.0		0.0	1.0	2.0
	2002	2,000	2.0		NA		2.0
	2003	2,000	2.0		NA		2.0
	2004	2,000	2.0		NA		2.0
	Total Pension Credits on January 1, 2005 (Pension Effective Date)							23.1
	During the years 1985 through 1990, Sam was able to work in excess of 1,500 hours and accumulated hour bank pension credit up to the maximum of one credit in reserve. Sam earned 0.6 pension credits for his 1,000 hours worked in 1991. This made him eligible to use reserve credits because he earned at least 0.3 credits in 1991. Under this rule, he was able to subtract 0.4 credit from his reserve and use it to increase his total accrual to 1.0 pension credit during 1991.  Sam earned 0.2 pension credits for his 400 hours worked in 1992. However, he was not able to use his remaining 0.6 reserve credit because he did not earn at least 0.3 credits in 1992. In 1993 Sam earned 0.3 credits for his 500 hours worked in Covered Employment. This was enough to let him use his remaining 0.6 reserve credit for a total accrual of 0.9 credits during 1993. During the years 1998 through 2001 Sam was able to work in excess of 1,500 hours and accumulated hour bank pension credit up to the maximum of one credit in reserve. Effective January 1, 2002, hour bank pension credits were eliminated and a new method of accrual was instituted allowing more than one pension credit to be earned during a calendar year.  Sam was able to use his reserve credit in 2001 because he worked at least 450 hours after January 1, 2001, and his pension effective date is on or after January 1, 2002.  In years 2002 through 2004, he was able to use the new rule to earn more than one credit per year as described in Section 3.01.

3.04     Pension Credits Earned Before June 25, 1953.

Pension credits earned before June 25, 1953 are for work in Covered Employment before the Plan was established and before contributions were required to be paid to the Fund. You will receive one-half of the pension credit determined in accordance with the schedule described in Section 3.02  for your work before June 25, 1953.

The Trustees recognize that it may be difficult or impossible to obtain reliable records on hours of employment before the Plan was established.  Therefore, the Trustees will decide the number of pension credits for such credits based on the best available evidence such as Employer records, Union records, Social Security records, or other evidence found acceptable by the Board of Trustees.  The decision of the Trustees on the number of pension credits granted to any Employee before June 25, 1953 is final and binding.

3.05     Maximum Pension Credits.

You can earn unlimited pension credits during the period beginning June 25, 1953. However, credits for work before June 25, 1953 cannot be used to increase your total credits above a maximum of 35 pension credits.

 

3.06     Pension Credit for Apprentices on or after June 1, 1978.

When working as an apprentice, you do not automatically earn pension credit. However, you may receive up to one pension credit per calendar year for work as an apprentice on or after June 1, 1978, if you subsequently earn 10 pension years as the result of work in Covered Employment for which contributions are made to the Pension Fund.  See Section 6.01 for how you earn a pension year.

Provided you meet the preceding requirements, you will earn pension credits for hours worked as an apprentice under a collective bargaining agreement of Local 597 based on the following schedule:           

Hours Within the Calendar Year	Pension Credits
Up to 149