Summary Annual Report - 2006

This is a summary of the annual report of the Pipe Fitters’ Welfare Fund, Local 597, EIN 36-2141703, Plan No. 501, 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 

The value of plan assets, after subtracting liabilities of the plan, was $56,234,661 as of December 31, 2006, compared to $37,299,157 as of January 1, 2006.  During the plan year the plan experienced an increase in its net assets of $18,935,504*.  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 the assets at the beginning of the year or the cost of assets acquired during the year.  During the plan year, the plan had total income of $101,614,564 including employer contributions of $89,560,127, employee contributions of $4,670,976, realized gains of $100,571 from the sale of assets, earnings from investments of $6,390,801 and other income of $892,089. 

Plan expenses were $82,679,060.  These expenses included $2,148,141 in administrative expenses and $80,530,919** in benefits paid to participants and beneficiaries. 

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 investments;
4. transactions in excess of 5% of the plan assets;
5. insurance information, including sales commissions paid by insurance carriers; and
6. information regarding any common or collective trusts, pooled separate accounts; master trusts or 103-12 investment entities in which the plan participates.

 To obtain a copy of the full annual report, or any part thereof, write or call Pipe Fitters’ Welfare Fund, Local 597, EIN 36-2141703, Plan No. 501, 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’ Welfare Fund, Local 597, EIN 36-2141703, Plan No. 501, 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  

*   The Plan experienced an actual increase of $35.2 million in its net assets available for benefits in 2006.  The net increase of $18.9 million shown in this report is due to an estimated $16 million increase in liability for future eligibility under the Plan hour bank.

**  The Plan paid $65.6 million in benefits in 2006.  The $80.5 million in benefits payments shown in this report again takes into account the estimated increase in liability for future eligibility under the hour bank.

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