Summary Annual Reports Mailing

This is a summary of the annual report for Pipe Fitters’ Welfare Fund, Local 597, employer identification number (EIN) 36-2141703, a health and life insurance plan, for the year ended December 31, 2004. The annual report has been filed with the Department of Labor, as required under the Employee Retirement Income Security Act of 1974 (ERISA).

Basic Financial Statement
The value of the Plan assets, after subtracting liabilities of the Plan, was $36,502,212 as of the end of the Plan year, compared to $38,601,837 as of the beginning of the Plan year. During the Plan year, the Plan experienced a decrease in its net assets of $2,099,625. This decrease included unrealized appreciation or 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 $66,693,485 including employer contributions of $64,283,245, earnings from investments of $2,220,184 and other income of $190,056.

Plan expenses were $68,793,110. These expenses included $144,653 in investment expenses, $2,328,304 in administrative expenses, and $66,320,153 in benefits paid to participants and beneficiaries.

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. assets held for investment; 3. transactions in excess of 5 percent of Plan assets; and 4. insurance information including sales commissions paid by insurance carriers.

To obtain a copy of the full annual report or any part thereof, write or call the office of the Board of Trustees, who is the Plan Administrator, at 45 North Ogden Avenue, Chicago, Illinois 60607, telephone number (312)633-0597. The charge to cover copying costs will be $.25 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 legally protected right to examine the annual report at the main office of the Plan, 45 North Ogden Avenue, Chicago, Illinois 60607 and at the Employee Benefits Security Administration, Room N1513, U.S. Department of Labor, 200 Constitution Avenue, N.W. Washington, DC 20210.

Note: The Welfare Fund’s cash and investments as of December 31, 2004 totaled $68,229,066 compared to $75,078,751 as of December 31, 2003.

PRIVATE HEALTH INFORMATION

The Plan is required to protect the confidentiality of your private health information under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the rules issued by the U.S. Department of Health and Human Services. The privacy rules are effective as of April 14, 2003. Pipe Fitters’ Local 597 Welfare Fund is compliant with the privacy rules. If you have any questions, or would like additional information regarding the privacy rules, please contact the Fund Office.

WOMEN’S HEALTH AND CANCER RIGHTS ACT OF 1998

Under federal law, group health plans, insurers and HMOs that provide medical and surgical benefits in connection with a mastectomy must provide benefits for certain reconstructive surgery effective for the first Plan year beginning on or after October 21, 1998. In the case of a participant or beneficiary who is receiving benefits under the plan in connection with a mastectomy and who elects breast reconstruction, federal law requires coverage in a manner determined in consultation with the attending physician and the patient, for:

Reconstruction of the breast on which the mastectomy was performed;
Surgery and reconstruction of the other breast to produce a symmetrical appearance; and
Prostheses sand treatment of physical complications at all stages of the mastectomy, including lymphedemas.

This coverage is subject to the Plan’s annual deductibles and coinsurance provisions. These provisions generally described in the Plan’s Summary Plan Description (SPD).

If you have any questions about the Plan’s coverage for mastectomies or reconstructive surgery, please contact the Fund Office.

All of us experience problems in our life at one time or another. Most of the time, we manage perfectly well on our own. However, occasionally we may need additional help dealing with home and/or work place challenges that can disrupt our life as well as the lives of our family. Knowing where to turn when these problems arise can be difficult.

For that reason, we introduced a new Employee Assistance Program (EAP) effective January 1, 2005. The Welfare Fund’s EAP provides you with access to free counseling services designed to help you and your family deal with a variety of situations, such as;

The Welfare Fund has contracted with Employee Resource Systems (ERS) to administer the EAP. ERS counselors are licensed mental health professionals with experience dealing with these issues. ERS counselors will work with you or your family member, either over the phone or in person when possible, to identify and evaluate your concerns.

Under the Fund’s EAP program, you and or your eligible dependent can receive up to three free counseling sessions per incident with an ERS counselor; there is no cost to you for these sessions. If the ERS counselor believes an issue cannot be addressed in three sessions or if a more intensive level or care is required, you or your dependent will be referred to a licensed mental health practitioner, which may include a licensed psychologist, clinical social worker, clinical professional counselor, or marriage or family therapist.

An ERS counselor can help you or your dependent outline a course of action to get the services you need to treat your problem. However, you decide what you want to do and which source of help you will use. The cost of additional services to treat your problem, beyond the sessions provided by the EAP, will be your responsibility. However, remember that our Welfare Fund provides mental health and substance abuse benefits; so benefits will be provided as long as they are Covered Expenses under the Welfare Fund.

When you or a family member has a personal problem, you can contact an ERS counselor by calling 1-800-292-2780. ERS counselors are available to you and your family 24-hours-a-day, 7-days-a-week. Local ERS representatives are available from 8:30 a.m. until 5:30 p.m., Monday through Friday. For after standard business hours emergency services, ERS phones are answered directly by clinical professionals who can provide immediate assistance.

Confidentiality is key. In general, all services provided by the EAP are completely confidential and your records will not be released without your written permission. However, in extreme circumstances, such as child abuse, suicide, or homicide threats, the EAP may have to take action to protect the life and safety of those believed to be in harm’s way.

If you have any questions about the EAP or your benefits in general, please contact the Fund Office.