Summary Annual Report - 2006

This is a summary of annual report for the Pipe Fitters’ Retirement Fund, Local 597, EIN 62-6105084, Plan No. 001, for period January 1, 2006 through December 31, 2006.  The annual report has been filed with the Employee Benefits Security Administration, U.S. Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA). 

Basic Financial Statement 

Benefits under the plan are provided through a trust fund.  Plan expenses were $80,989,523.  These expenses included $2,845,453* in administrative expenses and $78,164,070 in benefits paid to participants and beneficiaries.  A total of 10,603 persons were participants in or beneficiaries of the plan at the end of the plan year, although not all of these persons had yet earned the right to receive benefits. 

The value of plan assets, after subtracting liabilities of the plan, was $1,003,431,957 as of December 31, 2006, compared to $927,360,565 as of January 1, 2006.  During the plan year the plan experienced an increase in its net assets of $76,071,392.  This increase includes unrealized appreciation and depreciation in the value of plan assets; that is, the difference between the value of the plan’s assets at the end of the year and the value of assets at the beginning of the year or the cost of assets acquired during the year.  The plan had total income of $157,060,915 including employer contributions of $64,951,435, realized losses of $881,946 from the sale of assets, earnings from investments of $91,185,476 and other income of $1,805,950. 

Minimum Funding Standards

An actuary’s statement shows that enough money was contributed to the plan to keep it funded in accordance with the minimum funding standards of ERISA. 

Your Rights to Additional Information 

You have the right to receive a copy of the full annual report, or any part thereof, on request.  The items listed below are included in that report: 

1. an accountant’s report;
2. financial information and information on payments to service providers;
3. assets held for investment;
4. transactions in excess of 5% of the plan assets;
5. information regarding any common or collective trusts, pooled separate accounts, master trusts or 103-12 investment entities in which the plan participates; and
6. actuarial information regarding the funding of the plan.

* Administrative expenses include $1,469,311 in investment expenses.

To obtain a copy of the full annual report, or any part thereof, write or call Pipe Fitters’ Retirement Fund, Local 597, 45 North Ogden Avenue, Chicago, IL 60607, 312-633-0597.  The charge to cover copying costs will be 25 cents per page. 

You also have the right to receive from the plan administrator, on request and at no charge, a statement of the assets and liabilities of the plan and accompanying notes, or a statement of income and expenses of the plan and accompanying notes, or both.  If you request a copy of the full annual report from the plan administrator, these two statements and accompanying notes will be included as part of that report.  The charge to cover copying costs given above does not include a charge for the copying of these portions of the report because these portions are furnished without charge. 

You also have the leally protected right to examine the annual report at the main office of the plan (Pipe Fitters’ Retirement Fund, Local 597, 45 North Ogden Avenue, Chicago, IL 60607) and at the U.S. Department of Labor in Washington, D.C., or to obtain a copy from the U.S. Department of Labor upon payment of copying costs.  Requests to the Department should be addressed to:  Public Disclosure Room, Room N1513, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. 

Additional Explanation 

An actuary’s statement shows that the current value of plan assets covers 64.13% of the current value of plan liabilities as of January 1, 2006. 

An actuary’s statement also shows that the value of plan assets covers 84% of the plan’s liabilities for vested benefits (employer withdrawal liability) as of January 1, 2006.