ANNUAL FUNDING NOTICE FOR THE PLUMBERS AND PIPEFITTERSNATIONAL PENSION FUND FOR THE PLAN YEAR ENDING JUNE 30, 2019

Introduction

This notice includes important information about thefunding status of your multiemployer pension plan(“the Plan”). It also includes general informationabout benefit payments guaranteed by the PensionBenefit Guaranty Corporation (“PBGC”), a federalinsurance agency. All traditional pension plans(called “defined benefit pension plans”) must providethis notice every year, regardless of their fundingstatus. This notice does not mean that the Plan isterminating. It is provided for informationalpurposes, and you are not required to respond in anyway. This notice is required by federal law.

This notice is for the Plan Year beginning July 1,2018 and ending June 30, 2019. Most of theinformation shown below does not include data asof the end of the current Plan Year. However, theestimated funded percentage as of July 1, 2019, asset out in the Notice of Endangered Status for the2019–2020 Plan Year, is estimated to be 74.92%using the Actuarial Value of Assets and 74.77%based on the Fair Market Value of Assets.

How Well Funded is Your Plan

Under federal law, the Trustees must report howwell the Plan is funded by using a measure calledthe “funded percentage.” The Plan divides its assetsby its liabilities on the Valuation Date for the PlanYear to get this percentage. In general, the higherthe percentage, the better funded the plan. ThePlan’s funded percentage for the Plan Year and twopreceding Plan Years is set forth in the chart below,along with a statement of the value of the Plan’sassets and liabilities for the same period.

Year-End Fair Market Value of Assets

The asset values in the preceding chart aremeasured as of the Valuation Date. These valuesare “actuarial values,” not market values. Actuarialvalues differ from market values in that they do notfluctuate daily based on changes in the stock orother markets. Actuarial values smooth out thosefluctuations, and can allow for more predictablelevels of future contributions. Despite thefluctuations, market values tend to show a clearerpicture of a plan’s funded status at a given point intime.

The asset values in the chart below are marketvalues and are measured as of the last day of thePlan Year (June 30th). The chart also includes thePlan Year end market value of assets for each of thetwo preceding Plan Years.

Plan Year Plan Year Plan YearEnding 6/30/19 Ending 6/30/18 Ending 6/30/17

ValuationDate 7/1/2018 7/1/2017 7/1/2016

FundedPercentage 74.13% 76.15% 76.86%

ActuarialValue of $6,063,058,341 $6,095,981,351 $6,057,443,691Assets

Value ofLiabilities $8,178,427,798 $8,004,890,029 $7,880,909,956

Plan Year Plan Year Plan YearEnding 6/30/19 Ending 6/30/18 Ending 6/30/17

Fair MarketValue of $6,199,704,363* $6,139,088,592 $5,793,879,970Assets

Endangered, Critical, Critical andDeclining Status

Under federal pension law, a plan generally is in“endangered” status if its funded percentage is lessthan 80 percent. A Plan is in “critical” status if thefunded percentage is less than 65 percent (otherfactors may also apply). A Plan is in “critical anddeclining” status if it is in critical status and isprojected to become insolvent (run out of money topay benefits) within 15 years (or 20 years if aspecial rule applies).

If a pension plan enters endangered status, thetrustees of the plan are required to adopt a fundingimprovement plan. Similarly, if a pension planenters critical status or critical and decliningstatus, the trustees of the plan are required toadopt a rehabilitation plan. Funding improvementand rehabilitation plans establish steps andbenchmarks for pension plans to improve their

*estimated amount

P L U M B E R S & P I P E F I T T E R S N AT I O N A L P E N S I O N F U N D

103 Oronoco Street, Alexandria, Virginia 22314-2047 http://www.ppnpf.org

(703) 739-9020 • (800) 638-7442 • Fax (703) 739-9017

TRUSTEES: MARK McMANUS, PATRICK H. KELLETT, MICHAEL A. PLEASANT, SMITTY G. BELCHER, MICHAEL W. GOSSMAN, JAMES J. MURPHY, JR.

ADMINISTRATOR: TONI C. INSCOE

19682018

ANNIVERSARY

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funding status over a specified period of time. Thetrustees of a plan in critical and declining statusmay apply for approval to amend the plan to reducecurrent and future payment obligations toparticipants and beneficiaries.

The Plan was not in critical or critical and decliningstatus in the Plan Year ending June 30, 2019. ThePlan was in endangered status in the Plan Yearending June 30, 2019 because its funded percentagewas less than 80 percent. In an effort to improve thePlan’s funding status, on April 5, 2010, the Trusteesadopted a Funding Improvement Plan (“FIP”),which remains in effect, and which providedbargaining parties with the option of eitherincreasing their contribution rate while maintainingthe current level of benefits or lowering the benefitaccrual level. These two alternative approachessatisfied the criteria for a funding improvementplan in accordance with Internal Revenue CodeSection 432(c). The requirements of the fundingimprovement plan have been fully implemented.

You may contact the Fund Office to get a copy of thefunding improvement plan and the actuarial andfinancial data that demonstrate any action takenby the Plan toward fiscal improvement. You mayobtain a copy of the FIP by visiting the websitewww.ppnpf.org. From the Home Page, click on thePlan Documents and Information link, or you maycontact the Fund Office at the address below:

Plumbers & Pipefitters National Pension Fund103 Oronoco Street

Alexandria, VA 22314-2047

A separate notification will be provided indicatingthat the Plan has been certified to be in endangeredstatus for the Plan Year ending June 30, 2020.

Participant Information

The total number of participants in the Plan as ofthe Plan’s 7/1/2018 valuation date was 149,498. Ofthis number, 72,053 were current employees/activeparticipants, 50,744 were retired and receivingbenefits, and 26,701 were no longer working for aparticipating employer and have a right to futurebenefits.

Funding & Investment Policies

Every pension plan must have funding policy formeeting plan objectives. The funding policy of thePlan is to maintain a balance such that Planresources will fund Plan obligations. Plan resourcesinclude accumulated Plan assets plus expectedfuture contributions and investment income. Planobligations include benefit payments to current andfuture retirees and beneficiaries and expectedexpenses for Plan administration. The Plan’sfunding policy requires maintaining the level of

contributions needed to pay for benefits promisedcurrently and in future years.

Pension Plans also have investment policies. Thesegenerally are written guidelines or generalinstructions for making investment managementdecisions. The money that is contributed to the Planis invested by fiduciaries who follow the investmentpolicies in the management of the Plan’s assets.

The investment policy of the Plan is designed bythe Trustees, in consultation with an independentinvestment consultant, with a goal to increaseassets through capital gains and income, whilemaintaining sufficient liquidity to meet benefitpayments. The ultimate goal is to achieveinvestment results that will culminate in thepayment of promised Plan benefits.

The investment horizon is long term, and theinvestment strategy is designed to ensure theprudent investment of assets in a manner that willmaximize the total rate of return subject to thepreservation of capital. To preserve investmentcapital, the Fund’s investments are diversifiedacross various asset classes which include: domesticequity, domestic fixed income, international equity,emerging markets equity, global fixed income, highyield fixed income, real estate, private equity, hedgefund of funds, other alternative investments, andcash and cash equivalents. Each asset group is,itself, diversified through investment in securitiesacross numerous industries and sectors, with a goalof providing a rate of return that exceeds specifiedbenchmarks over periods of time. The Plan’sappropriate level of risk has been determined byexamining the risk and reward of numerous assetallocation alternatives and implementing an overallasset allocation, which is subject to periodicrebalancing. Overall investment performance ismeasured against a policy index consisting of amodel portfolio of various market indexes andagainst the Consumer Price Index plus 3.5.

In accordance with the Plan’s investment policy, thePlan’s assets were allocated among the followingcategories of investments, as of the end of the PlanYear ending June 30, 2019.

Asset Allocations Percentage

1. Stocks 57%

2. Investment grade debt instruments 13%

3. High yield debt instruments 5%

4. Real estate 11%

5. Other 14%

TOTAL 100%

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Events Having a Material Effecton Assets or Liabilities

By law this notice must contain a writtenexplanation of new events that have a materialeffect on plan liabilities or assets. This is becausesuch events can significantly impact the fiscalcondition of a plan. For the Plan Year beginning onJuly 1, 2019 and ending on June 30, 2020, there areno known events expected to have a materialimpact on assets or liabilities.

Right to Request a Copyof the Annual Report

Pension plans must file annual reports. The reportis titled “Form 5500.” These reports containfinancial and other information. You may obtain anelectronic copy of your Plan’s annual report bygoing to www.efast.dol.gov and using the searchtool. Hard copies of the annual report can beobtained from the following agency:

US Department of LaborEmployee Benefits Security Administration

Public Disclosure Room200 Constitution Avenue, NW, Room N-1513

Washington, DC 20210

Or by calling 1.866.444.3272. You may also obtain acopy of the Plan’s annual report by making awritten request to the Plan Administrator. Thecharge to cover copying costs will be $.25 per pagefor an approximate cost of $25.00.

Annual reports do not contain personalinformation, such as the amount of your accruedbenefit. Contact the Fund Office if you want moreinformation about your accrued benefits. See“Where to Get More Information” at the end of thisdocument for contact details.

Summary of Rules GoverningInsolvent Plans

The Pension Protection Act of 2006 requires thePlan to advise about the rules that apply tofinancially troubled multiemployer plans, eventhough this Plan does not fit that description.

Federal law has a number of special rules thatapply to financially troubled multiemployer plansthat become insolvent, either as ongoing plans orplans terminated by mass withdrawal. The planadministrator is required by law to include asummary of these rules in this Annual FundingNotice. A plan is insolvent for a plan year if itsavailable financial resources are not sufficient topay benefits when due for the plan year. Aninsolvent plan must reduce benefit payments to the

highest level that can be paid from the plan’savailable financial resources. If such resources arenot enough to pay benefits at a level specified bylaw (see Benefit Payments Guaranteed by thePBGC, below), the plan must apply to the PBGC forfinancial assistance. The PBGC, by law, will loanthe plan the amount necessary to pay benefits atthe guaranteed level. Reduced benefits may berestored if the plan’s financial condition improves.

A plan that becomes insolvent must provide promptnotification of its status to participants andbeneficiaries, contributing employers, labor unionsrepresenting participants, and the PBGC. Inaddition, participants and beneficiaries also mustreceive information regarding whether, and how,their benefits will be reduced or affected as a resultof the insolvency, including loss of a lump sumoption.

Benefit Payments Guaranteed by the PBGC

The maximum benefit that the PBGC guarantees isset by law. Only benefits that you have earned aright to receive and that cannot be forfeited (calledvested benefits) are guaranteed. Specifically, thePBGC guarantees a monthly benefit payment equalto 100 percent of the first $11 of the Plan’s monthlybenefit accrual rate, plus 75 percent of the next $33of the accrual rate, times each year of creditedservice. The PBGC’s maximum guarantee,therefore, is $35.75 per month times a participant’syears of credited service.

Example 1: If a participant with 10 years ofcredited service has an accrued monthly benefit of$600, the accrual rate for purposes of determiningthe PBGC guarantee would be determined bydividing the monthly benefit by the participant’syears of service ($600/10), which equals $60. Theguaranteed amount for a $60 monthly accrual rateis equal to the sum of $11 plus $24.75 (.75 x $33), or$35.75. Thus, the participant’s guaranteed monthlybenefit is $357.50 ($35.75 x 10).

Example 2: If the participant in Example 1 has anaccrued monthly benefit of $200, the accrual ratefor purposes of determining the guarantee would be$20 (or $200/10). The guaranteed amount for a $20monthly accrual rate is equal to the sum of $11 plus$6.75 (.75 x $9), or $17.75. Thus, the participant’sguaranteed monthly benefit would be $177.50($17.75 x 10).

The PBGC guarantees pension benefits payable atnormal retirement age and some early retirementbenefits. In addition, the PBGC guaranteesqualified preretirement survivor benefits (whichare preretirement death benefits payable to the

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surviving spouse of a participant who dies beforestarting to receive benefit payments). In calculatinga person’s monthly payment, the PBGC willdisregard any benefit increases that were madeunder the plan within 60 months before the earlierof the plan’s termination or insolvency (or benefitsthat were in effect for less than 60 months at thetime of termination or insolvency). Similarly, thePBGC does not guarantee benefits above thenormal retirement benefit, disability benefits not inpay status, or non-pension benefits, such as healthinsurance, life insurance, death benefits, vacationpay, or severance pay.

For additional information about the PBGC and thepension insurance program guarantees, go to themultiemployer page on the PBGC’s website atwww.pbgc.gov/multiemployer. Please contact theFund Office for specific information about your

pension plan or pension benefit. The PBGC does nothave that information.

Where to Get More Information

For more information about this notice, you maycontact:

The Board of Trusteesc/o Toni C. Inscoe, Plan Administrator

Plumbers & Pipefitters National Pension Fund103 Oronoco Street

Alexandria, VA 22314-2047

Or by calling 1.800.638.7442. You may also submityour inquiry via the Plan’s website atcontactus.ppnpf.org.

For identification purposes, the official Plannumber is 001 and the Plan sponsor’s employeridentification number or “EIN” is #52-6152779.

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