Plan Document

ARTICLE 6 –Retirement Income

6.1 Normal Retirement Income

An Employee retiring on or after his Normal Retirement Date will be entitled to receive a monthly amount of Normal Retirement Income equal to the sum of his Past Service Benefit and his Future Service Benefit, determined in the following manner:

6.1.1 Past Service Benefit. An Employee's Past Service Benefit will be equal to $4.00 for each year of Credited Past Service.

6.1.2 Future Service Benefit. Subject to the provisions of subparagraphs (h), (i) and (j) below, the Future Service Benefit shall be as follows:

  1. The following amounts reduce the Employer Contributions used to determine Future Service Benefits:
    1. Effective June 1, 2000, Employer Contributions used to determine Future Service Benefits are reduced to fund the Rule of 80 surcharge. The reduction shall be expressed as a cents per hour or percentage of contributions, as recommended by the Plan actuary and adopted by the Board. Effective June 1, 2000, the Rule of 80 surcharge adopted by the Board is 16.7% which is applied to the Employer Contributions after the reduction under Article 6.1.2(a)(2).
    2. Effective for Hours of Service on and after June 1, 2009, Employer Contributions used to determine Future Service Benefits are reduced by 26% to fund the Plan, but not to exceed a reduction of $1.25 per hour; provided that for Hours of Service worked under a public job or project agreement and performed at a pre-determined and/or prevailing wage rate established under the federal Davis-Bacon Act or Washington State, Prevailing Wage on Public Works statute, this Article 6.1.2(a)(2) is effective on the earlier of the date the rate is reset to the rate maintained by the Master Agreement or June 1, 2010.
  2. Subject to paragraph (a) above, for years beginning January 1, 2008 and thereafter, the Future Service Benefit shall accrue at 1.5 percent of Employer Contributions, unless other action is taken by the Board of Trustees.
  3. Subject to paragraph (a) above, for years beginning January 1, 2006 through December 31, 2007, the Future Service Benefit shall accrue at 2.0 percent of Employer Contributions.
  4. Subject to paragraph (a) above, for years beginning January 1, 2004 through December 31, 2005, the Future Service Benefit shall accrue at 2.5 percent of Employer Contributions.
  5. Subject to paragraph (a) above, for years beginning January 1, 1996 through December 31, 2003, the Future Service Benefit shall accrue at 4.0 percent of Employer Contributions.
  6. For years beginning January 1, 1988 through December 31, 1995, the Future Service Benefit shall accrue at 5.0 percent of Employer Contributions.
  7. The Future Service Benefit for years of service from January 1, 1960 through December 31, 1987, shall accrue at 4.0 percent of Employer Contributions made or required to be made for all Employees who have earned 750 or more Hours of Service in the three (3) consecutive year period commencing after December 31, 1985. For all other Employees, the Future Service Benefit for years of service from January 1, 1960 through December 31, 1987, shall be as follows:
    Years Future Service Benefit Factor
    1960 - 1983 3.308% of contributions
    1984 3.722% of contributions
    1985 3.544% of contributions
    1986 - 1987 3.375% of contributions

  8. Commencing January 1, 1984, Employees who retired prior to January 1, 1984, received a 7.5 percent increase in their monthly pension. Commencing January 1, 1985, for all accrued benefits under the Plan, retired Employees received a 5.0 percent increase in their monthly pension. Commencing January 1, 1986, for all accrued benefits under the Plan, retired Employees received a 5.0 percent increase in their monthly pension. Commencing January 1, 1987, for all accrued benefits under the Plan, retired Employees received a 12.0 percent increase in their monthly pension, but with a maximum increase of $18.00 per month for retired Employees receiving $150.00 or more per month. Commencing December 1, 1990, for all accrued benefits under the Plan, retired Employees received a 20.0 percent increase in their monthly pension, but with a maximum increase of $28.00 per month for retired Employees receiving $140.00 or more per month.
  9. Notwithstanding subparagraphs (a) through (h) above:
    1. For Employees with retirements commencing prior to January 1, 1988, no benefit was credited with respect to any Plan Year in which the Employee had less than 500 Hours of Service. Subject to Articles 6.2.3 and 6.4, an Employee whose retirement commences on or after January 1, 1988, shall be credited with all Hours of Service accrued under this Plan and not lost because of a Break in Service, notwithstanding the Employee failed to earn 500 Hours of Service in a particular year; and
    2. Retirement benefits will be in the following amounts for contributions from January 1, 1960 through December 31, 1985, if greater:
      1. From January 1, 1960 through December 31, 1964, an amount equal to $3.00 for each whole year of Credited Future Service and $1.50 for each one-half year of Credited Future Service.
      2. From January 1, 1965 to December 31, 1965, an amount equal to $4.50 per month for the Employee who is credited with 1,000 or more Hours of Service. The Employee who is credited with 750 or more Hours of Service and less than 1,000 hours will earn a Retirement Benefit of $3.38 per month, and the Employee who is credited with 500 or more Hours of Service and less than 750 hours will earn a Retirement Benefit of $2.25 per month.
  10. Notwithstanding any provision to the contrary, and to the extent required by applicable law, an Employee shall be entitled to Future Service Benefit accrual for periods of service with the Armed Forces of the United States.

6.1.3 Late Retirement Benefit. If an Employee continues working beyond the date on which he would be eligible for Normal Retirement, the Employee shall be eligible for a Late Retirement benefit, which is the Employee's Normal Retirement benefit, increased by the Credited Future Service earned after his Normal Retirement Date. Upon Late Retirement, the Employee's monthly benefit (and if applicable, the Employee's spouse's monthly benefit), shall be actuarially increased by ½ of 1% (6% per year) for each full month the Employee's retirement is postponed after the Employee's Normal Retirement Date.

6.2 Early Retirement Income

6.2.1 Regular Early Retirement. The monthly amount of Early Retirement Income payable to an Employee retiring under the Regular Early Retirement of Article 4.2.1 shall be equal to his Normal Retirement Income, based upon his years of Credited Service at the date of his Early Retirement, reduced to reflect the fact that payments will commence earlier, and might be paid for a longer period than they would if he had retired on his Normal Retirement Date. The percentage reduction for each month prior to Normal Retirement shall be one-fourth (1/4) of one (1) percent (.25%) per month from ages 60 to 65, and one-half (1/2) of one (1) percent (.50%) per month from ages 55 to 60.

6.2.2 Special Early Retirement. The monthly amount of Early Retirement Income payable to an Employee retiring under Special Early Retirement of Article 4.2.2 shall be equal to his Normal Retirement Income, based upon his years of Credited Service at the date of his Early Retirement, and reduced if he has not attained age 62 as of the Special Early Retirement Date. The percentage reduction for each month prior to age 62 shall be one-fourth (1/4) of one (1) percent (.25%) per month from ages 59 to 62, and one-half (1/2) of one (1) percent (.50%) per month from ages 55 to 59.

6.2.3 Rule of 80 Early Retirement.

  1. General. The monthly amount of Early Retirement Income payable to an Employee retiring under Rule of 80 Early Retirement of Article 4.2.3 shall be equal to the Employee's Normal Retirement Income, based upon his years of Credited Service at the date of his Rule of 80 Early Retirement.
  2. Return to Work. The pension of any Employee who takes the Rule of 80 Early Retirement under this Plan and who subsequently becomes employed in post-retirement service will be suspended in accordance with Article 6.4, provided that if benefits were suspended prior to age 65 as described in Article 6.4.1(a), then when retirement income payments resume, the Employee's benefit level for the portion of the benefits that were suspended will be calculated as follows:
    1. If the Employee works over 480 hours but less than 580 hours in post-retirement service during the calendar year, and benefits have not previously been suspended, the amount of the payment shall be the same as was payable prior to the suspension except that if a retired Employee earns 500 or more Hours of Service in the Plan Year, he shall be entitled to additional Future Service Benefits for such employment in accordance with Article 6.1 or 6.2. Additional benefits shall be credited in accordance with Article 6.4.8, but calculated as a Rule of 80 Early Retirement.
    2. If the Employee works 580 or more hours in post-retirement service during a calendar year, regardless of whether benefits were previously suspended, benefits will be calculated using the reduction factors of a Regular Early Retirement as set forth in Article 6.2.1 from the date of the Employee's Rule of 80 Early Retirement. The retired Employee shall be entitled to payment of additional Future Service Benefits for the post-retirement service which shall be credited and calculated in accordance with Article 6.4.8 using the current Regular Early Retirement reduction factors based upon the age of the Employee when payments resume.
    3. If the Employee works over 480 hours in post-retirement service during the calendar year, and benefits were previously suspended, benefits will be calculated using the reduction factors of a Regular Early Retirement as set forth in Article 6.2.1 from the date of the Employee's Rule of 80 Early Retirement. If the retired Employee earns 500 or more Hours of Service in the Plan Year, he shall be entitled to payment of additional Future Service Benefits for the post-retirement service which shall be credited and calculated in accordance with Article 6.4.8 using the current Regular Early Retirement reduction factors based upon the age of the Employee when payments resume.
6.3 Disability Retirement Income

The monthly amount of Disability Retirement Income payable to an Employee who has retired or hereafter retires in accordance with the provisions of Article 4.3 and Article 7 shall be the amount determined as in the case of a Normal Retirement, and will be based upon the total Credited Service of such Employee under this Plan. The monthly Disability Retirement Income of an Employee who becomes totally and permanently disabled on and after June 1, 1978 shall be reduced from disability age to age 65 by a factor of one-fourth (1/4) of one (1) percent (.25%) for each month of disability age prior to age 65; except that the Disability Retirement Income for an Employee who becomes disabled after June 1, 1978, shall not be reduced more than thirty (30) percent over the Disability Retirement Income benefit in effect prior to June 1, 1978.

6.4 Suspension of Pension Payments

6.4.1 The pension of an Employee who takes Early or Normal Retirement under this Plan and who subsequently becomes employed in post-retirement service of the type described below shall be suspended for any calendar month of such employment as follows:

  1. Before Age 65. To be deemed retired prior to attainment of age 65, an Employee must withdraw and completely refrain from any work with an Individual Employer that contributes to the Trust. If an Employee works any hours for a contributing Individual Employer during the month he elected to retire, his retirement date will be changed to the first month in which no hours are worked.

    If an Employee retires and subsequently works anywhere for wages or profit in the building and construction industry, for 40 hours or more during any calendar month, or during each four- or five-week payroll period ending in a calendar month, he shall not be entitled to retirement income for that month and such retirement income shall be forfeited (40-hour rule). Effective January 1, 2001, an Employee who retires and subsequently works anywhere for wages or profit in the building and construction industry, may choose, in lieu of having benefits suspended under the 40-hour rule, to work 480 hours during any calendar year, provided that if an Employee who chooses this option works more than 480 hours in the calendar year, the Employee's retirement income payments shall be suspended for the three consecutive month period commencing with the month in which he exceeds 480 hours, plus one additional month for each month in that calendar year that the Employee works one (1) or more hours in a month after the month in which his hours exceeded 480 hours, and such retirement income shall be forfeited. Notwithstanding the foregoing, for retirement income based on Hours of Service performed prior to January 1, 1993, benefits will only be suspended under the rules in this Article 6.4.1(a), if such employment is in the geographic area covered by the Plan.

  2. After age 65. To be deemed retired on and after attainment of age 65, an Employee must not work in the building and construction industry 40 hours or more during any calendar month, or during each four- or five-week payroll period ending in a calendar month in the geographic area covered by the Plan.

    Effective January 1, 2005, if an Employee retires and subsequently works, his retirement income payments shall not be suspended if he works 480 hours or less in that calendar year. If an Employee works more than 480 hours during a calendar year in the building and construction industry in the geographic area covered by the Plan, the Employee's retirement income payments shall be suspended for any month remaining in that calendar year in which the Employee works 40 hours or more in a calendar month, or during a four- or five-week payroll period ending in a calendar month in the building and construction industry in the geographic area covered by the Plan (including the month in which his hours exceeded 480 hours, if applicable), and such payments shall be forfeited. Following termination of post-retirement service, retirement income payments shall resume pursuant to Article 6.4.5.

  3. For purposes of Articles 6.4.1(a) and 6.4.1(b), the terms "building and construction industry," and "work in the building and construction industry" are defined as follows:
    1. Building and construction industry means business activities of the types engaged in by any employers maintaining the Plan,
    2. Work means work of the type performed by employees or associate employees covered by the Plan or work which requires directly or indirectly the use of the same skills employed by an employee at any time under the Plan.
    Notwithstanding the foregoing, no benefits shall be suspended during any period for which they are required to be paid pursuant to the provisions of Article 6.12.4.

6.4.2 An hour of post-retirement service shall be determined in accordance with Department of Labor Regulation 2530.203-3.

6.4.3 The Administrator shall notify each affected Employee of the reasons for the suspension of retirement income payments during the first calendar month that such payments are suspended.

6.4.4 An Employee who engages in any post-retirement service shall notify the Administrator during the first calendar month that such service commences. If an Employee fails to notify the Administrator of post-retirement service and the Administrator is made aware of such service, retirement income payments shall be suspended on the basis of a presumption that any service by the Employee during each month prior to notification of post-retirement service constitutes 40 or more hours of post-retirement service. In addition, the Administrator shall suspend retirement income payments on the basis of a presumption that any Employee engaged in non-reported post-retirement service shall have performed such service for as long as his employer has performed work at that construction site or employment location. Both of the above presumptions shall be subject to change, if the Employee can show factual information to the contrary.

6.4.5 In the event retirement income payments are suspended because an Employee performs post-retirement service in a calendar month, or in a four- or five-week pay period ending in a calendar month, suspended retirement income payments shall resume no later than the first day of the third calendar month in which the Employee ceases post-retirement service. In the case of payments suspended under the 40-hour rule in Article 6.4.1(a) and payments suspended under Article 6.4.1(b), the first payment shall include retirement income payments for those months in which the Employee completed less than 40 hours of post-retirement service. Provided, however, that payments may be reduced or forfeited as described in the next paragraph.

6.4.6 An Employee who engages in post-retirement service shall notify the Administrator upon return to retirement within the first calendar month following the cessation of post-retirement service. In the event it is determined that an Employee received retirement income payments during any month in which such Employee performed post-retirement service described in 6.4.1 above, the Employee shall forfeit all payments otherwise due during the first three (3) months following his cessation of post-retirement service, until the full amount of such retirement income payments have been recovered. If the full amount has not been recovered from the first three (3) payments otherwise due, subsequent retirement income payments shall be reduced by an amount not to exceed twenty-five percent (25%) of the amount otherwise payable until the earliest of the following:

  1. The Employee's death (or the Employee's surviving spouse's death, or the Employee's designated beneficiary's death);
  2. The Employee's retirement income payments are again suspended for performance of post-retirement service in a calendar month; or
  3. The Trust recovers one hundred percent (100%) of the total of all retirement income paid in all months in which the Employee completed the amount of post-retirement service described in 6.4.1 above.

6.4.7 In no event shall the provisions of this Plan allow an Employee to revoke or change any election of benefits made under this Plan, with regard to such Employee's original Retirement Date. No Employee shall again have the right to elect a form of payment of retirement income, upon subsequent retirement, following re-employment after retirement income payments commence.

6.4.8 When retirement income payments resume, the amount of the payment shall be the same as was payable prior to the suspension except that if a retired Employee returns to employment in the industry and earns 500 or more Hours of Service in a Plan Year, he will be entitled to additional Future Service Benefits for such employment in accordance with Article 6.1 or 6.2. Such additional Future Service Benefits shall be credited effective at the commencement of the Plan Year following the year in which the additional credit was earned. Subject to Article 6.2.3(b), additional benefits shall be calculated using the current Early Retirement reduction factor based upon the age of the Employee when payments resume. Such additional benefits shall be in the same form of payment as the Employee elected when the Employee's retirement income payments originally began, unless the Employee originally elected a Spouse Option and the Employee's spouse is no longer living as of the date the additional benefit is payable.

6.4.9 Re-employment after retirement for retired Employees receiving Disability Retirement Income shall be governed by the provisions of Article 7.

6.4.10 If an Employee continues to work after the Employee's Normal Retirement Date without retiring, benefits are suspended for work described in this Article that is before the Employee's required beginning date.

6.5 Standard Form of Early or Normal Retirement Income for Married Retirees: Joint and Survivor Benefit

6.5.1 Effective January 1, 1976, the standard form of retirement income for an eligible Employee who is legally married on his Normal or Early Retirement Date shall be a Joint and Survivor Benefit commencing on the Employee's Normal or Early Retirement Date. The Employee's retirement income as computed under Articles 6.1 and 6.2 is reduced to provide the actuarial equivalent in the form of a monthly income for the life of the Employee, commencing on his Retirement Date, with fifty (50) percent of the monthly amount the Employee receives during the Employee's lifetime continued for the life of the Employee's surviving spouse after the Employee's death. Monthly benefits will be paid to the surviving spouse for the remainder of the surviving spouse's lifetime regardless of whether she remarries, but payments will cease upon the spouse's death. For purposes of this Article 6.5, "spouse" or "surviving spouse" shall mean the Employee's spouse at the time of the Employee's retirement.

6.5.2 Effective January 1, 1988, if the spouse of an Employee dies while the Employee is on retirement pay status, and if the Employee notifies the Plan of the spouse's death, the benefit paid to the retired Employee shall be increased, effective the month following the spouse's death, to a Single Life Benefit, in the amount that would have been payable to the Employee had the Employee been single on his Retirement Date. This Single Life Benefit shall not be guaranteed for five years (sixty months), i.e., no payment shall continue to any beneficiary after the Employee's death.

6.5.3 If the spouse of an Employee relinquishes all interest in benefits from the Retirement Plan while the Employee is on retirement pay status, pursuant to a Qualified Domestic Relations Order dated on or after January 1, 1995, the benefit paid to the retired Employee shall be increased to a Single Life Benefit in the amount that would have been payable to the Employee had the Employee been single on his Retirement Date. This increase shall be effective the month following the effective date of the applicable provision in the Qualified Domestic Relations Order. This Single Life Benefit shall not be guaranteed for five years (sixty months), i.e., no payment shall continue to any beneficiary after the Employee's death.

6.6 Standard Form of Retirement for Unmarried Retirees: Single Life Benefit Guaranteed for Five (5) Years

Effective on or after January 1, 1976, the standard form of retirement income for an eligible Employee who is not legally married and takes Normal or Early Retirement, shall be a Single Life Benefit guaranteed for five years (60 months), commencing on the Employee's Normal or Early Retirement Date, with total benefits as provided under Articles 6.1 or 6.2. Monthly benefits will commence on the Employee's Retirement Date and cease the month of the Employee's death unless the Employee's death occurs less than sixty (60) months after the Employee begins receiving retirement benefits, in which event such payments shall continue, to the Employee's beneficiary(ies) or personal representative until the balance of the sixty (60) payments have been made.

The standard form of retirement income for an Employee who takes Disability Retirement will be determined under Articles 6.8.4 and 6.10.

6.7 Optional Forms of Retirement Benefit

In lieu of the standard form of retirement income, an Employee taking Early or Normal Retirement may select one of the following options, provided the Employee rejects the standard form in the manner provided by Article 6.8:

6.7.1 Contingent Benefit Option, which provides for actuarially reduced, level benefit payments during the life of the Employee and the further continuance of such level payments to a contingent beneficiary, if living, after the Employee's death.

6.7.2 Modified Contingent Benefit Option, which provides for actuarially reduced benefit payments to the Employee during his lifetime and the further continuance of such benefit payments in either three-fourths or one-half of such reduced amount to a contingent beneficiary, if living, after the Employee's death.

6.8 Election Procedures and Commencement of Benefits

6.8.1 Application/Written Explanation. Each Employee shall notify the Trustees in writing, on the pension application form prescribed by the Trustees, of his intent to retire.

Upon such notification, the Employee shall receive a written explanation of the terms and conditions of the various forms of payment, including an explanation of the relative values of the various forms of payment. The written explanation shall also describe the terms and conditions of the Joint and Survivor Benefit; the right to make, and the effect of an election to waive the Joint and Survivor Benefit; the right of the spouse to consent to the waiver; and the Employee's right to revoke an election, and the effect of the revocation. The written explanation shall be provided no less than 30 days and no more than 90 days prior to the Retirement Income Starting Date, unless, pursuant to this Article 6.8, the Employee and the Employee's spouse elect to commence benefits less than 30 days after the written explanation is given or the Employee and the Employee's spouse elect a retroactive Retirement Date.

6.8.2 Election Period. For purposes of electing a form of payment, or revoking an election, each Employee shall have an election period determined as follows:

  1. Written Explanation Provided 30 to 90 Days Before Retirement Date. If the written explanation is provided 30 to 90 days before the Employee's Retirement Date, the election period commences on the date the written explanation was given and ends on the Retirement Date.
  2. Written Explanation Provided Less Than 30 Days Before Retirement Date. If the written explanation is provided less than 30 days before the Retirement Date, but not later than such date, the Employee may consider the election for at least 30 days after receiving the written explanation. In the alternative, the Employee, with applicable spousal consent, may make an election of the form of payment in less than 30 days, provided:
    1. the first Retirement payment will not be issued before the expiration of the seven-day period commencing the day after the written explanation was given; and
    2. the election period will end on the later of the Employee's Retirement Date, the date the first Retirement Income payment is negotiated or the expiration of the seven-day period commencing the day after the written explanation was given; and
    3. the Plan informs the Employee of the right to consider the form of benefit for a period of thirty (30) days after receiving the written explanation.
  3. Written Explanation Provided After Retirement Date. If the written explanation is provided after an Employee's Retirement Date, an Employee who is eligible may elect:
    1. a retroactive Retirement Date, provided the Employee, with spousal consent affirmatively elects the retroactive Retirement Date, and further provided that the election period described in this Article shall be determined from the date of the actual commencement of benefits, rather than from the Retirement Date; or
    2. in the case of Early, Special Early, or Rule of 80 Early Retirement, a new Retirement Date that is after the date the written explanation is provided; or
    3. in the case of Normal Retirement, a commencement date that is after the date the written explanation is provided, and a benefit which is the Actuarial Equivalent of the accrued benefit as of the date the Employee was otherwise eligible to commence Normal Retirement, subject to Article 6.4, Suspension of Pension Payments.

6.8.3 Retroactive Retirement Date. An Employee who elects a retroactive Retirement Date shall receive a make-up payment reflecting missed payments between the Employee's Retirement Date and the date of the actual commencement of benefits, plus interest at 7% per annum. Future monthly benefits will be in the amount that monthly payments would be if benefits had actually commenced on the retroactive Retirement Date. This provision is subject to Article 6.4, Suspension of Pension Payments.

6.8.4 Disability Retirement Date. Disability Retirement Income is an auxiliary benefit. Therefore, an Employee who is receiving Disability Retirement Income the month immediately prior to his Normal Retirement Date, shall have a Retirement Date that is his Normal Retirement Date, and may elect a form of payment to commence on his Retirement Date pursuant to the election procedures in this Article and Article 6.10.

6.8.5 Election and Revocation of Election. The election, or revocation of an election, must be in writing and filed with the Plan Administrator before expiration of the election period. The form of payment may not be changed after expiration of the election period, except as otherwise provided in Article 6.5 for an Employee whose spouse dies while the Employee is on retirement pay status, or an Employee whose spouse relinquishes all rights pursuant to a Qualified Domestic Relations Order while the Employee is on retirement pay status.

Election of a form of payment, other than the Joint and Survivor Benefit, must be consented to by the Employee's spouse during the election period. The consent will designate a beneficiary which may not be changed without spousal consent, unless the consent permits designation by the Employee without further spousal consent, or unless the change is to the Joint and Survivor Benefit. The spouse's consent will acknowledge the effect of the election and be witnessed by a Plan representative or a notary public.

Notwithstanding the spousal consent requirements, if the Employee establishes to the satisfaction of the Plan Administrator that such written consent cannot be obtained because there is no spouse or the spouse cannot be located, or for any other reason provided by the Secretary of the Treasury or his delegate, such election can be made without the consent of any person.

In the event a married Employee fails to make an election, benefits will be in the form of a Joint and Survivor Option. In the event an unmarried Employee fails to make an election, benefits will in the form of a Single Life Benefit guaranteed for five years.

6.8.6 Spouse. Before an Employee's Retirement Date, the term "spouse" means the legal spouse of the Employee at the time of the determination. On or after the Employee's Retirement Date, the term "spouse" means the legal spouse of the Employee on his Retirement Date, provided that if the Employee elects a retroactive Retirement Date, the spouse is determined as of the date benefits actually commence. A legal spouse means an individual legally married to an Employee as determined under Federal tax laws applicable to Internal Revenue Code § 401(a) tax qualified pension plans.

6.8.7 Commencement of Benefits. Unless an Employee directs otherwise, or continues to work in Covered Service or the Employee's election period has not expired, distribution of an Employee's Normal Retirement Benefits for which an Employee has made timely application and to which an Employee is eligible under Article 4 shall commence no later than the earlier of the 60th day after the close of the Plan Year in which the Employee:

  1. Becomes eligible for Normal Retirement; or
  2. Attains age 65.
6.9 Death of, or Divorce from Contingent Beneficiary under Optional Form of Benefit

6.9.1 Effective January 1, 1988, if the contingent beneficiary of an Employee dies while the Employee is on retirement pay status, and if the Employee notifies the Plan of the contingent beneficiary's death, the benefit paid to the retired Employee shall be increased, effective the month following the contingent beneficiary's death, to a Single Life Benefit. The Single Life Benefit shall not be guaranteed for five years (sixty months), i.e., all benefit payments with respect to such Employee will cease upon his death. No retirement income will be payable to a contingent beneficiary if the Employee dies before his first retirement income payment becomes due, but Death Benefits shall be payable as provided in Article 8.

6.9.2 If the contingent beneficiary spouse of an Employee relinquishes all interest in benefits from the Retirement Plan while the Employee is on retirement pay status, pursuant to a Qualified Domestic Relations Order dated on or after January 1, 1995, the benefit paid to the retired Employee shall be increased to a Single Life Benefit as described in Article 6.5.3. The increase shall be effective the month following the effective date of the applicable provision in the Qualified Domestic Relations Order. The Single Life Benefit shall not be guaranteed for five years (sixty months) i.e., all benefit payments with respect to such Employee will cease upon his death. No retirement income will be payable to a contingent beneficiary if the Employee dies before his first retirement income payment becomes due, but Death Benefits shall be payable as provided in Article 8.

6.10 Employee on Disability Income

6.10.1 Form of Payment. An Employee retired on a Disability Retirement will receive a Single Life Benefit. The Single Life Benefit will be guaranteed for five years (60 months) unless monthly Death Benefits become payable under Article 8.2 or 8.3 during the period of the guarantee which are greater than the monthly amount payable under the guarantee. Monthly benefits will commence on the Employee's Disability Retirement Date and cease the earlier of: the date the Employee is no longer Totally and Permanently Disabled; the month before the Employee's Normal Retirement Date; or the month of the Employee's death, unless the Employee's death occurs less than 60 months after commencement of Disability Retirement Income, in which event payments will continue to the Employee's beneficiary(ies) for the balance of the 60 months (subject to payment of Death Benefits as provided in Article 6.10.3). An Employee retired on a Disability Retirement may not elect a Joint and Survivor Benefit or an Optional Form of Retirement Benefit to apply prior to his 65th birthday.

6.10.2 Election of Normal Retirement. An Employee who is receiving Disability Retirement Income the month immediately prior to his Normal Retirement Date, shall be entitled to Normal Retirement Income commencing on the Normal Retirement Date and may elect a form of payment pursuant to the procedures applicable for Normal Retirement.

6.10.3 Death of Employee Prior to Normal Retirement. Death Benefits will be paid to the extent provided under Article 8.2 or 8.3 to the eligible beneficiary of an Employee retired on a Disability Retirement who does not survive to the Normal Retirement Date. If Death Benefits become payable during the period remaining on the 60-month guarantee, and the monthly amount of the Death Benefits is greater than the monthly amount of the guarantee, the Death Benefits will be paid in lieu of the amount remaining on the guarantee. If Death Benefits become payable during the period remaining on the 60-month guarantee, and the monthly amount of the Death Benefits is less than the monthly amount of the guarantee, the Plan will continue to pay the balance on the guarantee, and the Death Benefits will commence following termination of the guarantee. In no case will benefits be paid under both Article 6.10.1 and under Article 8.2 or 8.3 during any one month. No Death Benefits are payable under Article 8.4 to the beneficiary of an Employee who was receiving Disability Retirement Income at the time of his death.

6.11 Lump Sum Payment

If the standard form of retirement or vested benefit has a Lump Sum Present Value of $5,000 or less for an Employee retiring on a Normal, Early, or Disability Retirement Date, the Trustees, in their sole discretion, may elect to pay the benefit out in a lump sum cash payment to the Employee and his spouse, and written rejection of the Joint and Survivor Benefit shall not be required; provided that no lump sum cash payment may be made after the Annuity Starting Date unless the Employee and spouse consent in writing in the manner provided by law.

6.12 Minimum Distribution Requirements

6.12.1 General Rules.

  1. Effective Date. These provisions will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year.
  2. Precedence. The requirements of this Article will take precedence over any inconsistent provisions of the Plan.
  3. Requirements of Treasury Regulations Incorporated. All distributions required under this Article will be determined and made in accordance with the Treasury Regulations under Internal Revenue Code § 401(a)(9).
  4. TEFRA § 242(b)(2) Elections. Notwithstanding the other provisions of this Article, distributions may be made under a designation made before January 1, 1984, in accordance with § 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to § 242(b)(2) of TEFRA.

6.12.2 Time and Manner of Distribution.

  1. Required Beginning Date. The Employee's entire interest will be distributed, or begin to be distributed, to the Employee no later than the Employee's required beginning date. For purposes of this Article, the "required beginning date" shall mean:

    For an Employee other than a "5% owner" or a "terminated vested" Employee who attains age 70½ after December 31, 1998, the "required beginning date" is April 1 of the calendar year following the later of:
    1. The calendar year in which the Employee attains age 70½; or
    2. The calendar year in which the Employee retires.

      Attainment of age 70½ shall have the meaning set forth in Treasury Regulation § 1.401(a)(9)-2 (Q&A-3). Minimum distributions shall be made in accordance with Article 6.5 of the Plan and Treasury Regulations under Internal Revenue Code § 401(a)(9).

      An Employee who is a "5% owner," as determined under Internal Revenue Code § 416 may not postpone his required beginning date beyond April 1 of the calendar year following which he attains age 70½, even if the Employee continues employment. An Employee who attains age 70½ before January 1, 1999, may not be compelled to commence pension distributions.
  2. Death of Employee before Distributions Begin. If the Employee dies before distributions begin, the Employee's entire interest will be distributed, or begin to be distributed, no later than as follows:
    1. Distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Employee died, or by December 31 of the calendar year in which the Employee would have attained age 70½, if later. (No distribution may be made other than to the surviving spouse under Article 8.1 of the Plan, if the Employee has a surviving spouse.)
    2. If there is no surviving spouse but the Employee has designated an eligible beneficiary under Article 8.1 of the Plan, distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Employee died.
    3. If there is no surviving spouse and there is no designated beneficiary, distributions shall be made to the person entitled to the death benefit provided for in Article 8 of the Plan, as of September 30 of the year following the year of the Employee's death. The Employee's entire interest will be distributed by December 31 of the calendar year of the fifth anniversary of the Employee's death.
    4. If the Employee's surviving spouse is the Employee's sole designated beneficiary and the surviving spouse dies after the Employee but before distributions to the surviving spouse begin, this Article 6.12.2 (other than Article 6.12.2(b)(1)) will apply as if the surviving spouse were the Employee.

      For purposes of this Article 6.12.2 and 6.12.5, distributions are considered to begin on the Employee's required beginning date (or, if Article 6.12.2 applies, the date distributions are required to begin to the surviving spouse under Article 6.12.2(b)(1)). If annuity payments irrevocably commence to the Employee before the Employee's required beginning date (or to the Employee's surviving spouse before the date distributions are required to begin to the surviving spouse under Article 6.12.2(b)(1)), the date distributions are considered to begin is the date distributions actually commence.
  3. Form of Distribution. Distributions will be made in accordance with Article 6.12.3 to 6.12.5 of this Article.

6.12.3 Determination of Amount to Be Distributed Each Year.

  1. General Annuity Requirements. If the Employee's interest is paid in the form of annuity distributions under the Plan, payments under the annuity will satisfy the following requirements:
    1. the annuity distributions will be paid in periodic payments made at intervals not longer than one year;
    2. the distribution period will be over a life (or lives) described in Article 6.12.4 or 6.12.5;
    3. once payments have begun, the period will not be changed even if the period certain is shorter than the maximum permitted;
    4. payments will either be non-increasing or increase only as follows:
      1. by an annual percentage increase that does not exceed the annual increase in a cost-of-living index that is based on prices of all items and issued by the Bureau of Labor Statistics;
      2. to the extent of the reduction in the amount of the Employee's payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period dies or is no longer the Employee's beneficiary pursuant to a qualified domestic relations order within the meaning of Internal Revenue Code § 414(p);
      3. to provide cash refunds of contributions upon the Employee's death; or
      4. to pay increased benefits that result from a Plan amendment.
  2. Amount Required to be Distributed by Required Beginning Date. The amount that must be distributed on or before the Employee's required beginning date (or if the Employee dies before distribution begins), the date distributions are required to begin under Article 6.12.2(b)(1) or (2) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the Employee's benefit accruals of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the Employee's required beginning date.
  3. Additional Accruals After First Distribution Calendar Year. Any additional benefits accruing to the Employee in a calendar year after the first distribution calendar year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues.

6.12.4 Requirements for Annuity Distributions that Commence During Employee's Lifetime. If the Employee's interest is being distributed in the form of a joint and survivor annuity for the joint lives of the Employee and a non-spouse beneficiary, annuity payments to be made on or after the Employee's required beginning date to the designated beneficiary after the Employee's death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the Employee using the table set forth in Q&A-2 of Treasury Regulation § 1.401(a)(9)-6T. If the form of distribution combines a joint and survivor annuity for the joint lives of the Employee and a non-spouse beneficiary and a period certain annuity, the requirement in the preceding sentence will apply to annuity payments to be made to the designated beneficiary after the expiration of the period certain.

6.12.5 Requirements for Minimum Distributions Where Employee Dies Before Date Distributions Begin.

  1. Employee Survived by Designated Beneficiary. If the Employee dies before the date distribution of his interest begins and there is a designated beneficiary, the Employee's entire interest will be distributed, beginning not later than the time prescribed in Article 6.12.2(b), over the life of the designated beneficiary or over a period certain not exceeding:
    1. unless the Annuity Starting Date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined, using the beneficiary's age as of the beneficiary's birthday in the calendar year immediately following the calendar year of the Employee's death; or
    2. if the Annuity Starting Date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined, using the beneficiary's age as of the beneficiary's birthday in the calendar year that contains the Annuity Starting Date.
  2. No Designated Beneficiary. If the Employee dies before the date distributions begin, and there is no surviving designated beneficiary as of September 30 of the year following the year of the Employee's death, distribution of the Employee's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Employee's death.
  3. Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Employee dies before the date distribution begins, the Employee's surviving spouse is the Employee's sole designated beneficiary, and then the surviving spouse dies before distributions to the surviving spouse begin, this Article 6.12.5 will apply as if the surviving spouse were the Employee, except that the time by which distributions must be made will be determined without regard to Article 6.12.2 herein.

6.12.6 Definitions.

  1. Designated Beneficiary. The individual who is designated as the beneficiary under Article 6.13 of the Plan and is the designated beneficiary under Internal Revenue Code § 401(a)(9) and the Treasury Regulation § 1.401(a)(9)-4, (Q&A 4).
  2. Distribution Calendar Year. A calendar year for which a minimum distribution is required. For distributions beginning before the Employee's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Employee's required beginning date. For distributions beginning after the Employee's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to Article 6.12.2(b).
  3. Life Expectancy. Life expectancy as computed by use of the Single Life Table in Treasury Regulation § 1.401(a)(9)-9.
  4. Required Beginning Date. The date specified in Article 6.12.2(a).
6.13 Beneficiary Designations

6.13.1 Beneficiary Designations. Employees who are not married who take the standard form of retirement or an Optional Form of Retirement Benefit which provides for payment of benefits after the Employee's death, or married Employees who, with their spouses, reject the Joint and Survivor Benefit in writing and elect an Optional Form of Retirement Benefit which provides for benefits after the Employee's death, are entitled, prior to retirement, to designate a beneficiary for retirement benefits to which they are entitled or may become entitled under this Plan. In the case of a married Employee, no beneficiary designation other than the surviving spouse will be permitted unless:

  1. The spouse consents in writing to the designation, and such consent either expressly designates the beneficiary which may not be changed without spousal consent, or expressly permits designations by the Employee without any requirement of further spousal consent; or
  2. The spouse cannot be located, with such proof of attempt to locate that is consistent with the rules of the Trust or federal regulations; or
  3. The spouse has legally abandoned the Employee.

6.13.2 Where No Beneficiary Designated. If no beneficiary has been designated by the Employee, and the Employee has selected a Single Life Benefit guaranteed for five years (60 months), any benefit which survives the Employee will be paid to the surviving person or persons in the first of the following classes of successive preference beneficiaries in which a member survives the Employee: the Employee's

  1. Spouse;
  2. Children, including natural, legally adopted and stepchildren;
  3. Parents;
  4. Brothers and sisters.

6.13.3 Payment. In determining such person or persons, the Trustees may rely upon affidavit by a member of any classes of preference beneficiaries. Payment based upon such affidavit shall be full acquittance of any benefit payable under the Plan unless, before the payment is made, the Trustees have received written notice of valid claim by some other person. If two or more persons become entitled to benefits as preference beneficiaries, they shall share equally.

6.13.4 If No Beneficiary Survives Employee. If no beneficiary survives the Employee, then no Death Benefit shall be payable, except that the Trustees may in their sole discretion pay or reimburse the payment of necessary funeral and burial expenses, but in an amount not to exceed the benefit of $5,000.00, whichever is less.

6.14 Legal Disabilities -- Facility of Payment

If, in the opinion of the Trustees, any person who is eligible to receive payments under this Retirement Plan is legally, physically, or mentally incapable of personally receiving or negotiating receipt for any such payment, the Trustees may direct payments to such other person, persons or institutions, who, in the opinion of the Trustees, are then maintaining or have custody of such payee, until claim is made by a duly appointed guardian or other legal representative of such payee. Such payments, to the extent thereof, will constitute a full discharge of the liability of the Fund and of the Trustees under the Retirement Plan.

6.15 Maximum Retirement Benefit

6.15.1 Effective Date. Except as otherwise provided, this Article shall be effective for limitation years ending after December 31, 2007.

6.15.2 Effect on Participants. Benefit increases resulting from the increase in the limitations of Internal Revenue Code § 415(b) will be provided to all current and former Employees (with benefits limited by Internal Revenue Code § 415(b)) who have an accrued benefit under the Plan immediately prior to the effective date (other than an accrued benefit resulting from a benefit increase solely as a result of the increases in limitations under Internal Revenue Code § 415(b)).

6.15.3 Definitions.

  1. Defined Benefit Dollar Limitation. The "defined benefit dollar limitation" is $160,000, as adjusted, effective January 1 of each year, under Internal Revenue Code § 415(d) in such manner as the Secretary shall prescribe, and payable in the form of a Single Life Benefit. A limitation as adjusted under Internal Revenue Code § 415(d) will apply to limitation years ending with or within the calendar year for which the adjustment applies.
  2. Maximum Permissible Benefit. The "maximum permissible benefit" is the defined benefit dollar limitation (adjusted as provided in this Article).
    1. If the Employee has fewer than ten (10) years of participation in the Plan, the defined benefit dollar limitation shall be multiplied by a fraction, (i) the numerator of which is the number of years (or part thereof) of participation in the Plan and (ii) the denominator of which is ten (10).
    2. If the benefit of an Employee begins prior to age 62, the defined benefit dollar limitation applicable to the Employee at such earlier age is an annual benefit payable in the form of a Single Life Benefit at the earlier age that is the actuarial equivalent of the defined benefit dollar limitation applicable to the Employee at age 62 (adjusted under (1) above, if required). The defined benefit dollar limitation applicable at an age prior to age 62 is determined as the lesser of (i) the actuarial equivalent (at such age) of the defined benefit dollar limitation computed using the interest rate and mortality table (or other tabular factor) specified in Article 1.19 of the Plan and (ii) the actuarial equivalent (at such age) of the defined benefit dollar limitation computed using a five (5) percent interest rate and the applicable mortality table as defined in Article 1.19 of the Plan. Any decrease in the defined benefit dollar limitation determined in accordance with this Article 6.15.3(b)(2) shall not reflect a mortality decrement if benefits are not forfeited upon the death of the Employee. If any benefits are forfeited upon death, the full mortality decrement is taken into account.
    3. If the benefit of an Employee begins after the Employee attains age 65, the defined benefit dollar limitation applicable to the Employee at the later age is the annual benefit payable in the form of a Single Life Benefit beginning at the later age that is actuarially equivalent to the defined benefit dollar limitation applicable to the Employee at age 65 (adjusted under (1) above, if required). The actuarial equivalent of the defined benefit dollar limitation applicable at an age after age 65 is determined as (i) the lesser of the actuarial equivalent (at such age) of the defined benefit dollar limitation computed using the interest rate and mortality table (or other tabular factor) specified in Article 1.19 of the Plan and (ii) the actuarial equivalent (at such age) of the defined benefit dollar limitation computed using a five (5) percent interest rate assumption and the applicable mortality table as defined in Article 1.19 of the Plan. For these purposes, mortality between age 65 and the age at which benefits commence shall be ignored.

6.15.4 Aggregation Rules. For benefits accrued or payable before January 1, 2008, the limitations in this Article 6.15 shall be applied with respect to an Employee on an Individual Employer by Individual Employer basis. For benefits accrued on or after January 1, 2008, the limitations of Article 6.15 shall be applied with respect to an Employee taking all of the Individual Employers into account. Notwithstanding the foregoing, an Employee shall not be entitled to accrue additional benefits on or after January 1, 2008, unless such additional benefits, together with the benefits accrued before January 1, 2008, satisfy the requirements of Treasury Regulations in effect as of January 1, 2008.

6.15.5 Exception. Notwithstanding the foregoing provisions of this Article 6.15, an Annual Retirement Income payable with respect to an Employee under the Plan shall not be deemed to exceed the limitation of this Article 6.15 if the Annual Retirement Income payable with respect to such Employee under the Plan does not exceed $10,000 for the limitation year under consideration, or for any prior limitation year, and the Employee has never participated in a defined contribution plan (as defined in Internal Revenue Code § 415(k)) of his employer.

6.15.6 No Reduction in Benefits. Notwithstanding any provision to the contrary, no provision of this Article 6.15 as applied in accordance with final Treasury Regulations effective for limitation years beginning on or after January 1, 2008, will result in a limitation lower than an Employee's benefits accrued or payable prior to January 1, 2008.

6.16 Supplemental Benefits

6.16.1 An Employee whose Annuity Starting Date is no later than December 1, 1994 shall receive, on or about December 20, 1994, a one-time payment equal to a certain multiple, depending on the Employee's Annuity Starting date, of his monthly benefit payment, as follows:

Multiple Annuity Starting Date
0.50 1/1/94 or later
1.00 In 1993
1.10 In 1992
1.20 In 1991
1.30 In 1990
1.40 In 1989
1.50 In 1988
1.60 In 1987
1.70 In 1986
1.80 In 1985
1.90 In 1984
2.00 Prior to 1/1/84

6.16.2 An Employee whose Annuity Starting Date is no later than December 1, 1996, shall receive a one-time payment equal to the Employee's monthly benefit payment, to be issued no later than the February 1997 payment cycle.

6.16.3 An Employee whose Annuity Starting Date is no later than December 1, 2000 shall receive a one-time payment equal to the Employee's monthly benefit payment, but not less than $225, to be issued no later than the February 2001 payment cycle.

6.16.4 An Employee whose Annuity Starting Date is no later than December 1, 2005 shall receive a one-time payment equal to fifty (50) percent of the Employee's monthly benefit payment, but not less than $250, to be issued no later than the March 2006 payment cycle.

6.16.5 An Employee whose Annuity Starting Date is no later than December 1, 2006 shall receive a one-time payment equal to fifty (50) percent of the Employee's monthly benefit payment, but not less than $250, to be issued no later than the March 2007 payment cycle.