revised pension plan for employees 2007 - ufcw … one - general information this spd contains a...

UFCW Pension Plan for EmployeesSUMMARY PLAN DESCRIPTION

TO ALL PARTICIPANTSGreetings:I am pleased to enclose the Summary Plan Description (SPD)

describing the benefits under your United Food and CommercialWorkers International Union Pension Plan for Employees (“Pen-sion Plan”) as of January 1, 2006. This booklet will give you theinformation you need to determine your eligibility to participatein the Pension Plan, when you can retire, how to estimate yourmonthly pension, and to provide other important facts about thePension Plan.

The booklet is organized in the following way for your use.Section One: Outlines general information about the Plan.Section Two: Outlines the Plan’s eligibility requirements and the

types of benefits for which you are eligible. Examples are provided.Section Three: Relates to Plan operations and ERISA information.In reviewing your benefits and the options available to you, the

Pension Plan document and the booklet in effect at the time youleave Eligible Employment will generally describe your right tobenefits and other options under the Pension Plan. Therefore, ifyou left Eligible Employment prior to the effective date of thisbooklet some of the provisions may not apply to you.

In addition, the Plan, and the rules under which it is adminis-tered, are subject to change by the Executive Committee from timeto time. Should this occur, you will be notified of any changes tothe SPD and the Pension Plan as required by law.

If you have any questions regarding the Pension Plan or wouldlike to receive a copy of the Pension Plan please contact:

UFCW Benefits Office, 1775 K Street, N.W., Washington, D.C.20006-1598, (202) 223-3111

We are proud of the benefits that the Pension Plan provides toemployees of our organization. The Pension Plan is a programthat will help ensure a secure retirement for our employees. We hopethat you find this important information regarding your pensionbenefits under the Pension Plan helpful in planning your retirement.

Sincerely and fraternally,

International President

TABLE OF CONTENTSMessage to Participants .................................................................................

SECTION ONE - General Information ......................................................... 1I. Name and Type of Plan .............................................................................. 1II. Plan Sponsor ............................................................................................ 1III. Administrator of the Plan ......................................................................... 2IV. Contributions to the Plan .......................................................................... 2V. Background Information ............................................................................ 3

SECTION TWO - Benefits Provided by the Plan .......................................... 4I. ELIGIBILITY TO PARTICIPATE ....................................................................... 4

A. Participant Contributions ..................................................................... 5B. Leaves of Absence .............................................................................. 5

II. SERVICE ................................................................................................... 7A. Service Prior to June 30, 1979 ............................................................ 7B. Service Prior to a Merger ..................................................................... 7C. Service After June 30, 1979 ................................................................ 7D. Your Period of Service Determines Your Vesting Service ......................... 8E. One Year Break In Service ................................................................... 8F. Loss of Vesting Service ....................................................................... 10G. Restoration of Vesting Service After November 30, 1988 ..................... 11H. Vesting Service and Benefit Service During Military Service ................ 11

III. BENEFITS SERVICE ................................................................................ 12A. Participation After December 1, 1988 ................................................ 12B. Participation On or Before December 1, 1988 .................................... 13C. Loss of Benefit Service ....................................................................... 14

Table of Contents i

IV. BENEFITS .............................................................................................. 15A. Normal Age Retirement Payments ...................................................... 15

1. Qualifications ............................................................................. 152. Amount ...................................................................................... 173. Social Security Level Income Option ............................................. 28

B. Early Age Retirement ........................................................................ 291. Qualifications ............................................................................. 292. Amount ...................................................................................... 293. Special Minimum Early Retirement for Prior Plan Participants ....... 314. Social Security Level Income Option ............................................. 33

C. Disability Retirement Payments .......................................................... 331. Qualifications ............................................................................. 332. Amount ...................................................................................... 343. Minimum Benefit ........................................................................ 344. Recovery ..................................................................................... 34

D. Vested Deferred Age Retirement Payments ......................................... 351. Qualifications ............................................................................. 352. Time of Payment ......................................................................... 363. Amounts ..................................................................................... 36

E. Spouse Payments ............................................................................. 371. Qualifications ............................................................................. 372. Amount ...................................................................................... 383. Minimum Spouse’s Benefit for Prior Plan Participants ................... 39

F. Pensions Payable to Survivors of Unmarried Participants ..................... 401. Overview .................................................................................... 402. Pre-Retirement Option ................................................................. 423. Post Retirement Option ................................................................ 43

ii Table of Contents

G. Refund of Accumulated Contributions ................................................. 46H. Lump Sum Refund to Beneficiary ...................................................... 47I. Lump Sum Death Benefit ................................................................... 50

V. LIMITATIONS ON BENEFITS ..................................................................... 50A. Reemployment After Retirement ........................................................ 50B. Distributions After Age 70½.............................................................. 51C. Late Participation Penalty .................................................................. 52

1. Individuals Who Became Participants On or Before December 1,1988 ....................................................................... 522. Individuals Who Become Participants After December 1, 1988 ...... 54

D. Penalty For Leaving and Returning to Participant Status .................... 551. Original Participation Date On or Before December 1, 1988 .......... 552. Original Participation Date After December 1, 1988 ...................... 553. Reemployment ............................................................................ 55

E. Maximum Limitations on Benefits ...................................................... 56F. Lump Sum Payment .......................................................................... 56

VI. BENEFIT INCREASES FOR RETIREES ........................................................ 58

SECTION THREE - Plan Operations and ERISA Information ..................... 59I. Miscellaneous ........................................................................................... 59II. Record Keeping for the Plan .................................................................... 59III. Future of the Plan .................................................................................. 59IV. How to Apply for Benefits ....................................................................... 60V. Financial Operations ................................................................................ 62VI. Qualified Domestic Relations Orders ........................................................ 62VII. ERISA Rights ......................................................................................... 65VIII.Pension Benefit Guaranty Corporation Insurance ..................................... 67

Table of Contents iii

UFCW Pension Plan for EmployeesSUMMARY PLAN DESCRIPTION

SECTION ONE - GENERAL INFORMATIONThis SPD contains a summary of the rights and benefits

that pertain to you under the Pension Plan — it is not thePension Plan document. A summary cannot cover in detaileach provision of the Pension Plan and how it might work inevery situation for every Participant. Therefore, in the eventof any difference between this SPD and the actual provisionsof the Plan, the Pension Plan will govern. The Pension Planis available from the UFCW Benefits Office. If you havetrouble understanding any part of this material, call or writethe UFCW Benefits Office.

In addition, the Pension Plan document in effect at the timeyou leave Eligible Employment will generally control yourright to benefits and other options available to you. There-fore, if you left Eligible Employment prior to the effectivedate of this booklet some of the provisions in this bookletmay not apply to you.

I. NAME AND TYPE OF PENSION PLANThe name of the Pension Plan is the United Food and

Commercial Workers International Union Pension Plan forEmployees. The Pension Plan is the result of the 1979 mergerof the Retail Clerks International Union Retirement Plan forEmployees and the Amalgamated Meat Cutters and ButcherWorkmen of North America Retirement Plan and Trust Fund.It is a defined benefit pension plan. Certain employees maybe covered by Collective Bargaining Agreements which referto participation in this Plan. Copies of those Agreementsmay be obtained upon written request to the Plan Adminis-trator or your Employer and are available for examinationby Participants and Beneficiaries. The Plan Year is the twelve(12) month period commencing on May 1st of each year.

II. PLAN SPONSORThe sponsor is the Executive Committee of the United

Food and Commercial Workers International Union (“Inter-

Section One - General Information 1

national Union”), and its address is 1775 K Street, N.W.,Washington, D.C. 20006-1598. The employer identificationnumber of the Plan is 53-0220586. The Plan number assignedby the Executive Committee of the International Union tothis Plan is 002. Participants and beneficiaries may, uponwritten request to the Plan Administrator, request informa-tion as to whether a particular employer maintains the Plan.

III. ADMINISTRATOR OF THE PLANThe Administrator of the Pension Plan is the Executive

Committee of the United Food and Commercial WorkersInternational Union (“International Union”). The ExecutiveCommittee also is the Named Fiduciary of the Plan. Thefindings, determinations and decisions of the ExecutiveCommittee are final and binding. The Executive Committeeis the sole entity responsible for determining the standard ofproof required in any case and of the application and inter-pretation of the Plan. The Executive Committee shall havethe power to interpret, apply, and amend the provisions ofthe Trust Agreement and this Plan and make factual deter-minations regarding its administration. The address of theExecutive Committee members is 1775 K Street, N.W.,Washington, D.C. 20006-1598 and the telephone number is(202) 223-3111. The names of the Executive Committee are:

Joseph T. HansenAnthony M. PerroneWilliam T. McDonoughPatrick J. O’NeillWayne E. Hanley

IV. CONTRIBUTIONS TO THE PLANThe Pension Plan is supported by contributions made by

the International Union, the Chartered Local Bodies and theAffiliated Funds on behalf of their employees, and by theParticipants covered under the Pension Plan, that are appro-priate, in consultation with the Plan’s Actuary, to fund the

2 Section One - General Information

Section One - General Information 3

Pension Plan. Effective January 1, 2003, Participants wererequired to contribute five percent of their Salary for allperiods of Eligible Employment through April 30, 2005.Effective May 1, 2005 Participants are required to contributefour percent of their Salary for all periods of Eligible Em-ployment. For a definition of Salary that is subject to thiscontribution requirement see page 5.

V. BACKGROUND INFORMATION — PARTICIPANT GROUPSThe Plan started on June 30, 1979. However, it was not a

new plan. It was a continuation of the Retail Clerks Interna-tional Union Retirement Plan (“RCIU Plan”) and the Amal-gamated Meat Cutters and Butcher Workmen of NorthAmerica Retirement Plan and Trust Fund (“AMC&BWPlan”), which merged on that date. Since 1979, the Plan hasbeen amended several times and several plans have mergedinto this Plan. In its present form, it includes all changes tothe Pension Plan through January 1, 2006. The Plan nowcovers three groups of people.

First, there are Participants and Beneficiaries who arereceiving benefits under the terms of:

• the Prior Plans: the RCIU Plan and the AMC&BW Planor other merged plan; and

• the Plan as in effect from June 30, 1979 to present.Benefits of these persons are based on the benefits in effect

on the date the person ceased to be in Eligible Employmentas a Participant and any subsequent improvements thatspecifically apply to their benefits.

The second group consists of Former Participants whohave ceased to work in Eligible Employment covered by thisPlan or a Prior Plan and are entitled to receive a pension tostart some time in the future. Benefits for this group arebased upon the benefits provided by the Plan in effect at thetime the individual ceased to be an active Participant.

The third group consists of active Participants under thisPlan.

SECTION TWO - BENEFITS PROVIDED BY THE PLAN

I. ELIGIBILITY TO PARTICIPATEParticipant means an Employee in Eligible Employment

who has satisfied the requirements to participate in thePension Plan. Eligible Employment means employment onor after the first day of the month following your 18th birth-day on the regular payroll as an officer or employee of theInternational Union, any of the Local or District Unions orIntermediate Chartered Bodies (as described in the Interna-tional Constitution), or an Affiliated Fund that participatesin the Plan, on or after April 30, 1999, generally in the UnitedStates or its territories and possessions. This also meansEligible Employment as defined under the prior AMC&BWPlan or employment as an Employee as defined in the RCIUPlan. Employment is excluded if it is within a unit coveredby a collective bargaining agreement that provides for exclu-sive coverage in another pension plan or excludes participa-tion in this Plan.

A Former Participant means a person who, on June 30,1979, was a former participant in the AMC&BW Plan; or hadwithdrawn from the RCIU Plan, through termination ofemployment or otherwise, with a right to a deferred vestedpension; or a Participant who, after June 30, 1979, leavesEligible Employment, or ceases to be a Participant whileremaining in Eligible Employment, and has a right to vesteddeferred age retirement payments.

In this SPD, the term Employer means the InternationalUnion, any Chartered Local Body and any Affiliated Fund.Affiliated Fund means an employee welfare benefit plan,pension plan or other organization established or main-tained by the International Union or any Chartered Bodythat is accepted for participation in the Plan by the ExecutiveCommittee, executes a written participation agreement, andmakes the required contributions for its Employees.

To become an active Participant in the Pension Plan, youmust be in Eligible Employment, you must apply in writing

4 Section Two - Benefits Provided by the Plan

Section Two - Benefits Provided by the Plan 5

and be accepted by the Executive Committee as a Participantand make the Employee Contributions required by the Plan.

A. Participant ContributionsOn and after January 1, 2003 and through April 30, 2005,

all Participants are required to contribute five percent permonth of their gross Salary for all periods of Employment onor after January 1, 2003. Effective May 1, 2005 all Participantsare required to contribute four percent per month of theirgross salary for all periods of Employment. Salary meansyour basic wage and overtime received while you are inEligible Employment, including salary reduction contribu-tions under any 401(k) plan or cafeteria plan in which youparticipate e.g., your Savings and Retirement Plans. It doesnot include such items as expense allowances, reimburse-ments of any kind, bonuses, severance pay, money forvacations worked, gratuities, the cost of fringe benefits orany additional compensation, or retroactive pay increases(except for those pay increases covered in a retroactivelyeffective collective bargaining agreement that provides forcoverage in this Plan). Accumulated Contributions meansthe total amount contributed to this Plan, or a qualifyingPrior Plan, by or on behalf of a Participant, plus interestearned under the terms of the Plan. Effective May 1, 2005Salary is capped at $150,000 for all purposes under the Plan,including the application of the Employee contributionrequirements. Prior caps on Salary are set forth on page 21.

B. Leaves of AbsenceUnder specified conditions, if you are a Participant and are

on an approved leave of absence, you will be treated as aParticipant earning Vesting Service and Benefit Service if:

• You go directly to military service or are called up foractive duty in the Reserve or National Guard of the U.S.or Canada (and are a citizen of that country), as long asyou do not seek a refund of Accumulated Contributionsand you return to Eligible Employment within six


months after the end of your leave. This does not applyto periods of reenlistment not required by the draft,national emergency, or war. You must make EmployeeContributions during periods of military service for yourmonths of leave based on your last full month of Salarywhen you left.

• In addition, you will be treated as a Participant earningVesting Service and Benefit Service in accordance withfederal law if you meet the requirements for coverageunder the Uniformed Service Employment and Reem-ployment Rights Act of 1994. See page 11 for moreinformation.

• You are on a leave approved by the Executive Commit-tee, for up to two years, due to pregnancy, illness orinjury, and you meet the same conditions as for militaryleave (regarding refund of Accumulated Contributionsand return to Eligible Employment). In addition, youmust pay the required Employee Contributions for yourmonths of leave based on your last full month of Salarywhen you left.

• You are on any other leave of absence approved by theExecutive Committee for up to two years, as long as youmeet the same conditions as for leave for pregnancy,illness or injury (regarding refund of AccumulatedContributions, return to Eligible Employment and pay-ment of required Employee Contributions) and, inaddition, a contribution is received from you (or on yourbehalf) that is equal to the Employer contribution for theperiod of leave.

A leave other than a military leave that is extended formore than two years with the approval of the ExecutiveCommittee also will be covered. To receive approval for aleave of absence, you must apply in writing to the ExecutiveCommittee. To receive credit for a military leave, you shouldsupply the Executive Committee with documentation show-ing the date of your entry into Military Service and the dateyou return to Eligible Employment.


II. SERVICEIt is important that you understand how Service is deter-

mined because it is the basis for calculating your VestingService, which determines your right to benefits, and yourBenefit Service, which determines the amount of your benefit.

A. Service Prior to June 30, 1979Your Vesting Service and Benefit Service prior to June 30,

1979 consists of the amount of your Vesting Service and BenefitService credited under the prior RCIU or AMC&BW Plans.However, if you become a Participant in the Plan as a resultof a different merger, see “Service Prior to a Merger” below.

B. Service Prior to a MergerIf you become a Participant as a result of a merger, consoli-

dation, or affiliation by the UFCW with another labor orga-nization, your Vesting Service and Benefit Service prior tothe date of merger, consolidation, or affiliation with theUFCW, regardless of when it was earned, is described inAppendix 2 to the Plan document and a separate insertprovided in this booklet if your benefits under this Plan areaffected by the terms of the pre-merger plan.

C. Service After June 30, 1979You receive credit for a Month of Service if you made the

required Employee Contributions for that period and youworked at least one Hour of Service during the month.

An Hour of Service is generally any of the following, as anofficer or employee on the regular payroll of an Employer:

• an hour for which you are paid, or entitled to paymentfor the performance of duties;

• an hour for which, although no duties were performed,you are paid, or entitled to payment; for instance, vaca-tions, paid holidays, illness, layoff, jury duty or leave ofabsence; or


• an hour for which back pay is awarded or agreed to bythe employer.

You may not receive overlapping credit for the same hourunder two or more paragraphs above.

However, if you become a Participant in the Pension Planas a result of a merger, see “Service Prior to a Merger.”

D. Your Period of Service Determines Your Vesting ServiceVesting Service is used to determine your right to retire-

ment payments. If you do not qualify for such a right, Vest-ing Service also is used to determine whether your priorBenefit and Vesting Service are lost if you leave EligibleEmployment, as described on page 10 and 14.

A year of Vesting Service is earned for calendar yearsduring which a Participant earns at least six Months ofService. A Month of Service means any month in which anEmployee is credited with one Hour of Service. VestingService also includes:

• Vesting Service credited under the prior RCIU orAMC&BW Plans;

• Periods of leave of absence taken in accordance with theterms of the Plan;

• The period of time during which you receive disabilityretirement payments if you again become an activeParticipant within 90 days after your last disabilitypayment; and

• Vesting Service credited as the result of a merger.

E. What Is a One Year Break in Service?A One Year Break in Service is a calendar year in which

you did not receive Vesting Service for at least three months.Solely to determine whether a One Year Break in Service hasoccurred, you receive Vesting Service for up to three monthsof Service if absent from work because of:

• your pregnancy;

• birth of your child;• adoption of a child; or• caring for your child immediately following birth or

adoption.You also will not incur a One Year Break in Service if you

are absent from Eligible Employment for leave for familymedical reasons under the Family Medical Leave Act of 1993.The Executive Committee will require you to provide proofthat the absence is for one of the permitted reasons. If yousatisfied the Plan’s leave of absence rules (as described onpage 5 and 6), this provision does not apply because anapproved leave of absence allows you to continue to earnVesting and Benefit Service if applicable requirements are met.

F. Loss of Vesting ServiceIf you lose your Vesting Service, you also lose all your

Benefit Service. When this happens, you may have thisVesting and Benefit Service restored only if you satisfy oneof the Vesting Service restoration rules. You lose your Vest-ing Service and Benefit Service before retirement if:

1. You die, unless your spouse or other ContingentAnnuitant is eligible for a lifetime survivor pension; or

2. You have not met the requirements for vested deferredage retirement payments or attained age 65 at the timeyou terminate Eligible Employment.

Under the Plan, if you have one Hour of Service after Novem-ber 30, 1988, you are eligible for vested deferred age retirementpayments if you have five or more years of Vesting Service. Ifyou do not have at least one Hour of Service after that date, youare eligible for deferred vested age retirement payments if youhad ten or more years of Vesting Service.

If you terminated Employment before December 1, 1988and are reemployed later, you will be treated as a newParticipant unless one of the service restoration rules ap-plies. In addition, your prior Vesting Service and Benefit


Service are forfeited if you were not eligible for vesteddeferred age retirement payments when you left.

G. Restoration of Vesting Service After November 30, 1988If you have an Hour of Service after November 30, 1988

and terminate Eligible Employment before you were vested,your Vesting Service will be restored to you upon reemploy-ment in Eligible Employment if you earn three Months ofService in that calendar year and if your period of consecu-tive One Year Breaks in Service does not equal or exceed fiveyears.

H. Vesting Service and Benefit Service During Military ServiceThe Uniformed Services Employment and Reemployment

Rights Act (“USERRA”) provides reemployment rights andbenefits and protection from discrimination to individualswho, either by induction or as a volunteer, have enteredmilitary service in any branch of the uniformed forces of theUnited States. If you satisfy the conditions for protectionunder USERRA, your period of military service will betreated as Hours of Service for all purposes under the Pen-sion Plan, including vesting, benefit accrual and eligibility inaccordance with law. You also can “make up” the EmployeeContributions that you would have made if you had re-mained in Eligible Employment, within a period (beginningwith the date of reemployment) that is three times the dura-tion of your military service, not to exceed five years. Noretroactive interest is credited on your “make up” contribu-tions and you will receive credit for these contributions onlyto the extent that you actually make the required EmployeeContributions to the Pension Fund. You must make Em-ployee Contributions during periods of military service foryour months of leave based on your last full month of Salarywhen you left.

To be entitled to reemployment rights and pension benefitsunder the USERRA, you must:



1. be absent from Eligible Employment with an Em-ployer because of your military service;

2. give advance notice of your service to your Employer,unless notice is prevented by military necessity orotherwise is impossible or unreasonable to give underthe circumstances;

3. be absent for military service for five years or less,unless extended service is required as part of yourinitial period of obligation or your service is involun-tarily extended, such as during a war;

4. apply for a job with your Employer or anotherEmployer within the requisite time period; and

5. receive an honorable discharge or satisfactorily com-plete military service.

For periods of service of less than 31 days or an absencedue to a fitness exam, you must report back to employmentnot later than the first regularly scheduled work period onthe first day after an eight hour break and after time fortravel back home. For periods of service from 31 days to 180days, you must reapply for employment within 14 days aftermilitary service. For service over 180 days, you must reapplywithin 90 days after completion of service. These limits maybe extended under USERRA in particular circumstances.

III. BENEFIT SERVICEGenerally, Benefit Service means the credit given for peri-

ods of Eligible Employment with an Employer. This alsoincludes qualifying service under a Prior Plan, merged planor other periods of employment as provided under the Plan.

A. Participation On or Before December 1, 1988If you are a Participant on December 1, 1988 and remain a

Participant you will continue to be eligible to receive BenefitService for any period of Eligible Employment before De-cember 1, 1988, but before you were a Participant. Thisincludes employment prior to May 1, 1985 for which you


could not participate because you were age 18 or older butunder age 22. You can receive Benefit Service for this addi-tional period in two ways:

• by continuing to make required Employee Contribu-tions from December 1, 1988 until you have made 240months of total contributions; after this, Benefit Serviceis credited for the pre-December 1, 1988 pre-participa-tion period; or

• by making continuous Employee Contributions to thePlan and by making contributions to the Plan for theentire previous period of Eligible Employment whenyou were not a Participant. You may make the requiredEmployee Contributions for the previous period of pre-December 1, 1988 employment at any time before youterminate Eligible Employment so long as you remain aParticipant. These contributions will count towardssatisfaction of the required 240 months of contributions.There may be a late participation penalty involved whenyou make these contributions depending on the totalperiod under which you make employee contributions.The penalty is described under Section V(C), Limitationon Benefits on page 50.

However, you cannot obtain Benefit Service for any periodthat has been permanently forfeited under the Break inService rules.

B. Participation After December 1, 1988If you become a Participant after December 1, 1988, you

will receive Benefit Service during Eligible Employment onlywhen you are making Employee Contributions, if required.For periods before May 1, 1998, you were required to make240 months of Employee Contributions to receive BenefitService for any periods of Eligible Employment and afteryou had made 240 months of required Employee Contribu-tions, you received Benefit Service for your Eligible Employ-ment without making additional Employee Contributions.


For periods on or after May 1, 1998, you are required tomake Employee Contributions to receive Benefit Service forany periods of Eligible Employment.


C. Loss of Benefit ServiceIf you terminated employment, received a refund of your

Accumulated Contributions, and are subsequently reem-ployed in Eligible Employment, you will permanently forfeitany prior Benefit Service you had earned if your VestingService is not restored under the Vesting Service Restorationrules. However, even if your Vesting Service is restored,your Benefit Service is not automatically restored at thesame time. Your Benefit Service is restored when you repaythe Accumulated Contributions you received at the time youterminated employment. You have five years from the dateyou return to Eligible Employment to repay any Accumu-lated Contributions you received from the Plan. After thattime, you may not repay and restore your Benefit Service.

For example, you terminate Eligible Employment on May1, 2000 with three years of Vesting Service and Benefit Ser-vice and receive a refund of your Accumulated Contribu-tions. You return to Eligible Employment on May 1, 2004.Your four consecutive One Year Breaks in Service do notexceed five years so your Vesting Service is restored. Youimmediately become a Participant in the Plan again bymaking Employee Contributions. On May 1, 2007, you repayyour withdrawn Accumulated Contributions. Immediatelybefore you repaid your Accumulated Contributions you hadbeen credited with seven years of Vesting Service and fouryears of Benefit Service. After repayment, you are creditedwith seven years of both Vesting and Benefit Service.



IV. BENEFITSThe following is a description of the types of benefits you

can receive from the Pension Plan. Note that the date uponwhich you first became a Participant is important in deter-mining your eligibility to receive a benefit because each typeof benefit requires a different minimum period of participa-tion and Service.

A. Normal Age Retirement Payments

1. QualificationsNormal Retirement Age under the Plan means age

sixty-five (65). If you are a Participant who (a) beganEligible Employment before July 1, 1999, (b) enteredinto an employment agreement with an Employerprior to July 1, 1999, but did not begin EligibleEmployment until after July 1, 1999 and became aParticipant effective with your first Hour of Service,or (c) was working in Eligible Employment prior toJuly 1, 1999, and became a Participant by November 1,1999, there are two ways you can become eligible fornormal age retirement payments. You must either have:

(a) reached age 55 or over; and been a Participantfor four years or more; and have five or moreyears of Vesting Service; or

(b) reached age 65 and be an Eligible Employeeparticipating in the Plan; and you must terminatedirectly from Eligible Employment.

If you are a Participant who (a) is hired on or afterJuly 1, 1999 and who first has an Hour of Service on orafter July 1, 1999, or (b) entered into an employmentagreement with an Employer prior to July 1, 1999, butdid not begin Eligible Employment until after July 1,1999 and did not become a Participant effective withyour first Hour of Service, or (c) was working in Eli-gible Employment prior to July 1, 1999, but did not


become a Participant by November 1, 1999, you be-come eligible for normal age retirement paymentswhen you have:

(a) reached age 60 or over; and have five or moreyears of Vesting or Benefit Service; and havebeen a Participant for four (4) years or more; or

(b) reached age 65 and be an Eligible Employeeparticipating in the Plan; and you must terminatedirectly from Eligible Employment.

2. AmountThere have been a number of recent changes to the

way benefits are calculated which are described below.In no event do any of these changes take away benefitsyou accrued prior to the date the changes were made.

Your monthly pension benefit depends on two things:(a) your years and months of Benefit Service as of

the date you terminate participation; and(b) the Highest Average Monthly Salary received by

you during (1) any four years in which youreceive Benefit Service as of April 30, 2005 or (2)any ten years in which you receive Benefit Ser-vice. For purposes of determining Highest Aver-age Monthly Salary you must use periods of 12consecutive months.

Prior to January 1, 2003, your Highest AverageMonthly Salary is determined by selecting the fouryears during which you received Benefit Service andyour Salary was the highest, and then calculating theaverage monthly amount you received during thosefour years as Salary. If your Benefit Service is less thanfour years, you simply calculate your average monthlySalary during your entire period of Benefit Service.See page 5 for a full definition of Salary.

Effective January 1, 2003, your Highest AverageMonthly Salary is determined as above except that the


amount of any increases in Salary (from all Employersfor which you work in that year) considered in calcu-lating your Highest Average Monthly Salary is limitedto five percent in each twelve month period. If a Salaryincrease is in effect for less than a full twelve monthperiod, the five percent limit is applied on a pro ratabasis. If the five percent limit on Salary increasescauses compensation not to be recognized as Salary ina twelve month period, the unrecognized compensa-tion can be carried forward and counted as Salary in asubsequent twelve month period, up to the lesser of (i)a five percent increase in Salary in that twelve monthperiod, or (ii) the Participant’s actual Salary in thattwelve month period.

Effective May 1, 2005 Highest Average MonthlySalary will be based upon average monthly Salaryusing the highest ten-year average monthly salary.However, the Plan will always compare the highestten-year average monthly Salary as of the date ofretirement to the highest four-year average monthlySalary as of April 30, 2005, and use the greater of thetwo when calculating an individual’s pension benefit.The limitation on Salary increases of 5 percent duringthe highest four-year average as described on pages19-21 will continue to apply to the highest four-yearperiod during the ten-year average. If you have lessthan ten years of Benefit Service, you simply calculateyour Highest Average Monthly Salary during yourentire period of Benefit Service.

The way in which Highest Average Monthly Salaryover a ten-year period is calculated can be illustratedwith the following example:


In this example, the Highest Average Monthly Salary is theten-year average of $4,416.67 when compared to the highestfour-year average as of April 30, 2005. Therefore, the HighestAverage Monthly Salary used to calculate the benefit wouldbe $4,416.67, resulting in a monthly benefit of $2,075.83($4,416.67 x 47 percent = $2,075.83).

Here are some examples of how the 5% Salary Cap rulewill work for someone with a Benefit Service Percentage of70% and a Salary of $45,000 in 1998.

EXAMPLE

Assuming a Participant retired on January 1, 2009,with the following salary history and 20 years ofBenefit Service for a total Benefit Service Percentageof 47 percent, his Highest Average Monthly Salarywould be calculated as follows:SalarySalarySalarySalarySalary HistoryHistoryHistoryHistoryHistory

1999 $44,0002000 $46,0002001 $48,0002002 $50,0002003 $52,0002004 $54,0002005 $56,000 = Highest Four Year Average

Monthly Salary as of April 30, 2005 = $4,305.562006 $58,0002007 $60,0002008 $62,000 = Highest Average Monthly Salary = $4,416.67


EXAMPLE 1

In this first example assume the individual retiresJanuary 1, 2008, four years after a 15% increase thatis effective January 1, 2003. Under this example theHighest Average Monthly Salary for the four year periodending April 30, 2005 is $4,503.79CalendarCalendarCalendarCalendarCalendar SalarySalarySalarySalarySalary % of% of% of% of% of RecognizedRecognizedRecognizedRecognizedRecognizedYYYYYearearearearear IncreaseIncreaseIncreaseIncreaseIncrease SalarySalarySalarySalarySalary

1998 ................... $45,000 .....................................................1999 ................... $46,350 ........................ 3% .....................2000 ................... $47,740 ........................ 3% .....................2001 ................... $49,172 ........................ 3% .....................2002 ................... $50,647 ........................ 3% .....................2003 ................... $52,166 ........................ 3% .....................20042004200420042004 ..................................................................................... $59,991$59,991$59,991$59,991$59,991 .............................................................................................................. 15%15%15%15%15% .......................................................................................... $59,991$59,991$59,991$59,991$59,99120052005200520052005 ..................................................................................... $61,791$61,791$61,791$61,791$61,791 .............................................................................................................. 3 %3 %3 %3 %3 % .................................................................................................... $61,791$61,791$61,791$61,791$61,79120062006200620062006 ..................................................................................... $63,645$63,645$63,645$63,645$63,645 .............................................................................................................. 3 %3 %3 %3 %3 % .................................................................................................... $63,645$63,645$63,645$63,645$63,64520072007200720072007 ..................................................................................... $65,554$65,554$65,554$65,554$65,554 .............................................................................................................. 3 %3 %3 %3 %3 % .................................................................................................... $65,554$65,554$65,554$65,554$65,554

Final Average Salary for the 10 year Period Ending December 31, 2007=$4,517.13. Since the ten year average of $4,517.13 is greater than fouryear Highest Average Monthly Salary as of April 30, 2005 of $4,503.79,the ten year average of $4,517.13 will apply in the calculation of theindividual’s benefit.

In Example 1, the Salary Cap rule is not triggered becausethe 15% increase is an increase in compensation receivedimmediately prior to the highest four year average of Salaryreceived during the ten year average.

Now lets assume an individual retires two years after theyear he or she receives a 15% increase with a 3% increase inthe following years.


EXAMPLE 2

CalendarCalendarCalendarCalendarCalendar SalarySalarySalarySalarySalary % of% of% of% of% of RecognizedRecognizedRecognizedRecognizedRecognized CappedCappedCappedCappedCappedYYYYYearearearearear IncreaseIncreaseIncreaseIncreaseIncrease SalarySalarySalarySalarySalary IncreaseIncreaseIncreaseIncreaseIncrease

1998 ............... $45,000 ....................................................................1999 ............... $46,350 ............... 3% ..............................................2000 ............... $47,740 ............... 3% ..............................................2001 ............... $49,172 ............... 3% ..............................................2002 ............... $50,647 ............... 3% ..............................................2003 ............... $52,166 ............... 3% ..............................................2004 ............... $53,731 ............... 3% ................ $53,731 ...............2005 ............... $55,343 ............... 3% ................ $55,343 ...............2006 ............... $63,644 ............... 15% .............. $58,110 ...............5%2007 ............... $65,553 ............... 3% ................ $61,016 ...............5%

The Final Average Monthly Salary for the four year period ending April 30, 2005= $4,328.58. The Highest Average Monthly Salary for the 10 Year Period EndingDecember 31, 2007 = $4,327.29 is less than the four year Highest AverageMonthly Salary as of April 30, 2005 of $4,328.58. Note that because of the5 percent salary cap not all of the Salary increase received in 2006 can berecognized and a portion of that increase is recognized in 2007.

From May 1, 1989 through April 30, 1994, the Salary con-sidered cannot exceed $200,000 or such other increasedamount allowed by the Internal Revenue Service (IRS). AfterMay 1, 1994, the Salary considered cannot exceed $150,000 orsuch other increased amount allowed by the IRS. EffectiveMay 1, 2004, the Salary considered cannot exceed $205,000 orsuch other increased amount allowed by the IRS. EffectiveMay 1, 2005 the maximum Salary that will be consideredwill be $150,000 with no increases that might otherwise beprovided under federal law. In no event will the reductionsin the Salary considered over time result in a reduction inbenefits any Participant may have accrued through those dates.

Once you know your years of Benefit Service and HighestAverage Monthly Salary, you can calculate your monthlypension by finding the percentage from the following tablesthat correspond to your years of Benefit Service. The per-centage is the sum of the percentages you earn for each yearof Benefit Service. Prior to January 1, 2003, your monthlybenefit is based on 2.5 percent of your Highest AverageMonthly Salary for each year of Benefit Service you earn inyour first twenty years of Employment, 2.0 percent of yourHighest Average Monthly Salary for each year of BenefitService you earn between your twenty-first and thirtiethyears and 1.0 percent of your Highest Average MonthlySalary for each year of Benefit Service you earn in yourthirty-first through forty-fifth year.

Effective January 1, 2003, your monthly benefit is based on2.0 percent of your Highest Average Monthly Salary for eachyear of Benefit Service you earn on or after January 1, 2003 inyour first thirty years of Employment. The formula for eachyear of Benefit Service you earn after your first thirty yearsof Employment (years 31 and after) is the same as above (1.0percent). Here too, this change will not decrease any benefitsyou have earned through December 31, 2002.

If your Benefit Service does not come out to an exact num-ber of years, the percentage applicable to you is increasedproportionally. For example, if you have 20 years and ninemonths of Benefit Service prior to January 1, 2003, yourpercentage is 51.50% (50% plus nine-twelfths of the differ-ence between 52% and 50%). That percentage of yourHighest Average Monthly Salary is your monthly pension.



Monthly Pension Benefit Percentage Chart (for determining yourBenefit Service Percentage for Service through December 31, 2002).

No. of CompleteNo. of CompleteNo. of CompleteNo. of CompleteNo. of Complete % of% of% of% of% of No. of CompleteNo. of CompleteNo. of CompleteNo. of CompleteNo. of Complete % of% of% of% of% ofYYYYYears ofears ofears ofears ofears of AverageAverageAverageAverageAverage YYYYYears ofears ofears ofears ofears of AverageAverageAverageAverageAverageBENEFITBENEFITBENEFITBENEFITBENEFIT MonthlyMonthlyMonthlyMonthlyMonthly BENEFITBENEFITBENEFITBENEFITBENEFIT MonthlyMonthlyMonthlyMonthlyMonthlySERVICESERVICESERVICESERVICESERVICE SALARYSALARYSALARYSALARYSALARY SERVICESERVICESERVICESERVICESERVICE SALARYSALARYSALARYSALARYSALARY

1 ........................ 2.50% 24 ..................... 58.002 ........................ 5.00 25 ..................... 60.003 ........................ 7.50 26 ..................... 62.004 ........................ 10.00 27 ..................... 64.005 ........................ 12.50 28 ..................... 66.006 ........................ 15.00 29 ..................... 68.007 ........................ 17.50 30 ..................... 70.008 ........................ 20.00 31 ..................... 71.009 ........................ 22.50 32 ..................... 72.0010 ...................... 25.00 33 ..................... 73.0011 ...................... 27.50 34 ..................... 74.0012 ...................... 30.00 35 ..................... 75.0013 ...................... 32.50 36 ..................... 76.0014 ...................... 35.00 37 ..................... 77.0015 ...................... 37.50 38 ..................... 78.0016 ...................... 40.00 39 ..................... 79.0017 ...................... 42.50 40 ..................... 80.0018 ...................... 45.00 41 ..................... 81.0019 ...................... 47.50 42 ..................... 82.0020 ...................... 50.00 43 ..................... 83.0021 ...................... 52.00 44 ..................... 84.0022 ...................... 54.00 45 + .................. 85.0023 ...................... 56.00


Monthly Pension Benefit Percentage Chart (for determining yourBenefit Service Percentage for Service on or after January 1, 2003).

No. of CompleteNo. of CompleteNo. of CompleteNo. of CompleteNo. of Complete % of% of% of% of% of No. of CompleteNo. of CompleteNo. of CompleteNo. of CompleteNo. of Complete % of% of% of% of% ofYYYYYears ofears ofears ofears ofears of AverageAverageAverageAverageAverage YYYYYears ofears ofears ofears ofears of AverageAverageAverageAverageAverageBENEFITBENEFITBENEFITBENEFITBENEFIT MonthlyMonthlyMonthlyMonthlyMonthly BENEFITBENEFITBENEFITBENEFITBENEFIT MonthlyMonthlyMonthlyMonthlyMonthlySERVICESERVICESERVICESERVICESERVICE SALARYSALARYSALARYSALARYSALARY SERVICESERVICESERVICESERVICESERVICE SALARYSALARYSALARYSALARYSALARY

1 ........................ 2.00% 24 ..................... 48.002 ........................ 4.00 25 ..................... 50.003 ........................ 6.00 26 ..................... 52.004 ........................ 8.00 27 ..................... 54.005 ........................ 10.00 28 ..................... 56.006 ........................ 12.00 29 ..................... 58.007 ........................ 14.00 30 ..................... 60.008 ........................ 16.00 31 ..................... 61.009 ........................ 18.50 32 ..................... 62.0010 ...................... 20.00 33 ..................... 63.0011 ...................... 22.00 34 ..................... 64.0012 ...................... 24.00 35 ..................... 65.0013 ...................... 26.00 36 ..................... 66.0014 ...................... 28.00 37 ..................... 67.0015 ...................... 30.00 38 ..................... 68.0016 ...................... 32.00 39 ..................... 69.0017 ...................... 34.00 40 ..................... 70.0018 ...................... 36.00 41 ..................... 71.0019 ...................... 38.00 42 ..................... 72.0020 ...................... 40.00 43 ..................... 73.0021 ...................... 42.00 44 ..................... 74.0022 ...................... 44.00 45 + .................. 75.0023 ...................... 46.00


The following are two example of how the percentageswork when applying both of the charts:

EXAMPLE 1

Under this example a Participant has 10 years of servicein 1998 at a Salary of $50,000.00. As of December 31, 1998this individual has a Benefit Service Percentage of 25%(10 x 2.5%). Assume that the Participant received 3%increases in Salary for the next 11 years and retires Janu-ary 1, 2009. The benefit is calculated as follows:

New BenefitNew BenefitNew BenefitNew BenefitNew BenefitCalendar YCalendar YCalendar YCalendar YCalendar Yearearearearear SalarySalarySalarySalarySalary Accrual RatesAccrual RatesAccrual RatesAccrual RatesAccrual Rates

1998 (10th year) ............................. $50,000 ............................. 25%1999 (11th year) ............................. $51,500 ............................. 2.5%2000 (12th year) ............................. $53,045 ............................. 2.5%2001 (13th year) ............................. $54,636 ............................. 2.5%2002 (14th year) ............................. $56,275 ............................. 2.5%2003 (15th year) ............................. $57,964 ............................. 2.0%2004 (16th year) ............................. $59,703 ............................. 2.0%2005 (17th year) ............................. $61,494 ............................. 2.0%2006 (18th year) ............................. $63,339 ............................. 2.0%2007 (19th year) ............................. $65,239 ............................. 2.0%2008 (20th year) ............................. $67,196 ............................. 2.0%

Total Accrual Rate: 47%Highest Average Monthly Salary as of April 30,2005 = $4,809.67Highest Average Monthly Salary for 10 year period as of December 31, 2008= $4,919.92Annual Benefit($4,919.92 x 47% x 12) = $27,748.35

EXAMPLE 2

Under this example a Participant has 18 years of Ser-vice in 2002. As of December 2002 this individual has aBenefit Service Percentage of 45% (18 x 2.5%). The indi-vidual works another 10 years and retires on January 1,2013. The Participant has a Salary of $55,000 in 2002 andreceives 3% Salary increases except in 2010 when hereceives an 8% increase and in 2011 when he receives a7% increase. The benefit is computed as follows:

CalendarCalendarCalendarCalendarCalendar RecognizedRecognizedRecognizedRecognizedRecognized New BenefitNew BenefitNew BenefitNew BenefitNew BenefitYYYYYearearearearear SalarySalarySalarySalarySalary SalarySalarySalarySalarySalary Accrual RateAccrual RateAccrual RateAccrual RateAccrual Rate

2002 (18th year) ........... $55,000 ............ $55,000 ................... 45%2003 (19th year) ........... $56,650 ............ $56,650 ................... 2%2004 (20th year) ........... $58,350 ............ $58,350 ................... 2%2005 (21st year) ............ $60,100 ............ $60,100 ................... 2%2006 (22nd year) .......... $61,904 ............ $61,904 ................... 2%2007 (23rd year) ........... $63,761 ............ $63,761 ................... 2%2008 (24th year) ........... $65,674 ............ $65,674 ................... 2%2009 (25th year) ........... $67,644 ............ $67,644 ................... 2%2010 (26th year) ........... $73,056 ............ $71,026 ................... 2%2011 (27th year) ........... $78,170 ............ $74,577 ................... 2%2012 (28th year) ........... $80,515 ............ $78,306 ................... 2%................................................................................................. 65%

Highest Average Month Salary for Ten Year Period as of December 31, 2012= $5,483.27Annual Benefit ($5,483.27 x 65% x 12) = $42,769.56


3. Social Security Level Income OptionIf you are eligible to receive normal age retirement

payments, you can elect to receive your benefit asfollows:

(a) You can designate a Social Security commence-ment date, which will generally be your 62nd or66th birthday.*

(b) Based on specified assumptions, the ExecutiveCommittee calculates the amount of Social Secu-rity benefits you will probably receive, and paysa percentage of that amount to you until yourSocial Security commencement date, in additionto the regular normal age retirement payments.

(c) After the Social Security commencement date,the regular normal age retirement paymentamount will be reduced to make up for thehigher amounts that were paid before that date.What this option does is to allow you to receivehigher payments from the Plan before the SocialSecurity commencement date selected, andcorrespondingly lower payments from the Planafter that date so that your total monthly income,including benefits both from this Plan and fromSocial Security, will remain relatively constantbefore and after your Social Security commence-ment date. If you want to elect this option, youmust notify the Executive Committee at least 90days before pension payments are to start.

If your Social Security benefits do not begin by yourSocial Security commencement date due to adminis-trative delay by the Social Security Administration,


*Beginning with individuals born on or after 1943, the Social SecurityRetirement Age is 66 phasing up to age 67 for individuals born on orafter 1960.

you will continue to receive the higher monthly pay-ment until either your Social Security benefits start orfor three additional months after your Social Securitycommencement date, whichever is earlier. Your ben-efit will be adjusted to reflect the extended paymentof such higher monthly benefit.

NOTE: This option does not affect your Social Securitybenefits, and changes in Social Security after you start re-ceiving benefits under this option do not affect your benefitsunder the Plan. You are entitled to both your pension andthe Social Security benefits you have earned. This optionmay be used even if you do not apply for Social Security.

If you elect the Social Security Level Income Option butreturn to Eligible Employment under the Plan, upon yoursubsequent retirement, your benefits will be actuariallyincreased to reflect the number of months in which the SocialSecurity Level Income Option benefit was suspended.

B. Early Age Retirement Payments

1. QualificationsTo be eligible for early age retirement payments you

must have:• reached age 50 or over; and• been a Participant for four years or more; and• have 15 or more years of Vesting Service; and• terminate from Eligible Employment.

2. AmountIf you (1) are a Participant on or before July 1, 1999,

(2) entered into an employment agreement with anEmployer prior to July 1, 1999, but did not beginEligible Employment until after July 1, 1999 andbecame a Participant effective with your first Hour ofService, or (3) were working in Eligible Employmentprior to July 1, 1999 and became a Participant by



November 1, 1999, your monthly benefit amount is theamount of the normal age retirement payments towhich you would be entitled (taking into account theminimum benefit) reduced by 1/2 % for each monthbetween the date you elect to begin receiving pay-ments and the first day of the month which coincideswith or follows your 55th birthday.

EXAMPLE

Assume a Participant retired at age 50 with a normalage retirement benefit of $1,487.50, the Participant’smonthly early age retirement pension would be$1,041.25 calculated as follows:

a. Normal age retirement payments: $1,487.50b. Early age reduction 1/2 % x 60 months = 30%; (30% x $1,487.50) = $446.25c.. Early age retirement payments ($1,487.50 - $446.25) = $1,041.25

If you are a Participant who (a) is hired on or after July 1,1999 and who first has an Hour of Service on or after July 1,1999, or (b) entered into an employment agreement with anEmployer prior to July 1, 1999, but did not begin EligibleEmployment until after July 1, 1999 and did not become aParticipant effective with your first Hour of Service, or (c)was working in Eligible Employment prior to July 1, 1999,but did not become a Participant by November 1, 1999, thereduction for early age retirement payments will be five-twelfths of one percent (5/12%) for each month between thedate you elect to begin receiving payments and the first dayof the month which coincides with or follows your 60th

birthday.


EXAMPLE

Assume that the Participant described in the previousexample first completed an Hour of Service on July15, 1999 and retired at age 50 with the same benefitdescribed on the prior page. The Participant’s monthlyearly age retirement pension would be $743.75calculated as follows:

a. Normal age retirement payments: $1,487.50b. Early age reduction (5/12% x 120 months) = 50%; (50% x $1,487.50) = $743.75c. Early age retirement payments ($1,487.50 - $743.75) = $743.75

3. Special Minimum Early Retirement Benefit For Prior Plan ParticipantsIf you were a Participant on June 30, 1979, your

benefit will not be less than the benefit obtained bymultiplying 2.5% of your highest average monthlySalary during your highest four years of Salary byyour years of Benefit Service. However, the BenefitService used to compute the minimum benefit cannotbe more than a maximum calculated by subtractingfrom 20 years the number of years and months (if any)between the date your early age retirement paymentsstart and the first date your normal age retirementpayments could have started.

EXAMPLE

Assume the same Participant as described on page 30was a Participant on June 30, 1979. The minimum benefitwould be $1,275, calculated as follows: (Since the earlyage retirement benefits are calculated by the regularformula to be $1,041.25 per month, the minimum of$1,275 would be what is actually paid.)a. 2.5% of average monthly Salary (.025 x $3,400) = $85.00b. The period between his early retirement age (50) and the age at which he would have received normal age retirement benefits (55) 5 yearsc. Subtract the difference between the early and normal age retirement date from 20 (20 - 5) = maximum Service credited 15 yearsd. Actual Benefit Service = 17.5 yearse. Service used in computation: item (c) or item (d), whichever is smaller 15 yearsf. Multiply 2.5% of average monthly Salary by the difference ($85 x 15) to get the minimum benefit $1,275

4. Social Security Level Income OptionThe Social Security Level Income Option available

in the case of normal age retirement payments also isavailable for early age retirement payments.

C. Disability Retirement Payments

1. QualificationsTo be eligible for disability retirement payments

you must have:• been a Participant for four years or more; and• have five or more years of Vesting Service; and• ceased to receive any Salary; and• become permanently disabled while you are in

Eligible Employment.


You are permanently disabled if you are entitled todisability income benefits under United States SocialSecurity law, the Canada Pension Plan or the QuebecPension Plan, or based on medical evidence satisfac-tory to the Executive Committee, and in their solediscretion, you are found to be permanently unable, asa result of injury or illness, to perform the duties youhad at the time of the disability or a job with compa-rable responsibility.

The Executive Committee may periodically requireyou to be medically examined, at the expense of thePlan, to confirm continuance of the permanent disabil-ity. If you refuse to permit an examination, yourdisability benefit payments will cease.

If a disability continues beyond the age at which youare first eligible to receive unreduced Early Retire-ment Age Benefits, you no longer will have to submitevidence of your continuing disability. At the timeyou reach the age of eligibility for normal age retire-ment payments (see page 15), the disability benefitwill convert to a normal age retirement benefit.

2. AmountMonthly disability retirement payments are calcu-

lated according to the same formula as the normal ageretirement payments. For purposes of taxation only,the disability benefits are treated as provided withemployer contributions.

3. Minimum BenefitMonthly disability payments will not be less than

$200.

4. RecoveryIf you recover and again become a Participant within

90 days, your disability retirement payments cease,payment of required Employee contributions will


resume, and your period of disability will be in-cluded as Vesting Service. In the event of your subse-quent retirement, your retirement payments will bedetermined without considering the amount of yourprevious disability retirement payments. However, ifyou recover and do not become a Participant againwithin 90 days, you will be eligible for vested de-ferred age retirement payments. If you recover, do notbecome a Participant again within 90 days, and youlater begin receiving normal or early age retirementpayments but die before receiving payments equal toyour Accumulated Contributions, your Beneficiarywill receive a benefit of your Accumulated Contribu-tions as of your disability, less the amount of disabil-ity payments you received. Disability RetirementBenefits will be converted to normal age retirementpayments on the first of the month following theattainment of the earliest age you would otherwise beeligible to receive normal age retirement payments(e.g., age 55 or 60 depending on date of hire).

D. Vested Deferred Age Retirement Payments

1. QualificationsYou have a right to vested deferred age retirement

payments if:(a) you are a Former Participant as of June 30, 1979

under the AMC&BW Plan; or(b) you were a former Participant with deferred

vested benefit under the RCIU Plan; or(c) after June 30, 1979, you cease to be an officer or

employee on the regular payroll of the Interna-tional Union, a Local or District Union, an Inter-mediate Chartered Body (as described in theInternational Constitution), or an AffiliatedFund, or otherwise cease participation in the


Plan, such as, for example, by stopping requiredEmployee Contributions to the Plan, after com-pleting five years of Vesting Service (10 years ofVesting Service before May 1, 1989).

2. Time of PaymentIf you are a Former Participant eligible for vested

deferred age retirement payments, you can beginreceiving benefits when you meet all of the followingconditions:

(a) you have been a Participant for four or moreyears (nine years if you do not complete an Hourof Service on or after May 1, 1989); and

(b) you have reached age 55 or more (or age 60 ifyou were (i) hired on or after, and first earned anHour of Service on or after, July 1, 1999, or (ii)entered into an employment agreement with anEmployer prior to July 1, 1999 but did not beginEligible Employment until after July 1, 1999 anddid not become a Participant effective with yourfirst Hour of Service, or (iii) were working inEligible Employment prior to July 1, 1999 but didbecome a Participant by November 1, 1999), orhave met the requirements for early age retire-ment payments; and

(c) you have left Eligible Employment.

3. AmountYour monthly amount of vested deferred age retire-

ment payments is calculated according to the sameformula as the normal age retirement payments, andis subject to the same reduction for early age retire-ment payments. (See pages 15-33.) Consequently, ifyou (a) are a Participant on or before July 1, 1999, (b)entered into an employment agreement with an Em-ployer prior to July 1, 1999, but did not begin EligibleEmployment until after July 1, 1999 and became a


Participant effective with your first Hour of Service, or(c) were working in Eligible Employment prior to July 1,1999 and became a Participant by November 1, 1999,your vested deferred age retirement monthly benefitamount is the amount of the normal age retirementpayments to which you would be entitled (taking intoaccount the minimum benefit) reduced by 1/2 percentfor each month between the date you elect to beginreceiving payments and the first day of the monthwhich coincides with or follows your 55th birthday.

If you are a Participant who (a) is hired on or afterJuly 1, 1999 and who first has an Hour of Service on orafter July 1, 1999, or (b) entered into an employmentagreement with an Employer prior to July 1, 1999, butdid not begin Eligible Employment until after July 1,1999 and did not become a Participant effective withyour first Hour of Service, or (c) was working in Eli-gible Employment prior to July 1, 1999, but did notbecome a Participant by November 1, 1999, the reduc-tion for early age retirement payments will be five-twelfths of one percent (5/12%) for each month be-tween the date you elect to begin receiving paymentsand the first day of the month which coincides with orfollows your 60th birthday.

E. Spouse Payments

1. QualificationsIf you die:(a) after having been a Participant for four years and

after completing five years of Vesting Service(ten years of Vesting Service if death occursbefore December 1, 1988), or

(b) while receiving age retirement payments,(c) or at the time of your death, you were a Former

Participant with a right to a vested deferred


age retirement payment with four years ofparticipation, or

(d) while receiving disability retirement paymentsand had met the above participation and VestingService requirements, your surviving spouse willreceive a pension for life if married to you for atleast one year at the time of your death. Pay-ments start on the first day of the month follow-ing your death even if you have not reached theage upon which normal age retirement paymentwould otherwise begin at the time of your death.

2. AmountsIf you were receiving age retirement payments at the

time of your death, your eligible surviving spousewill generally receive 50% of the monthly amount youwere receiving. However, you can elect, at the time ofyour retirement, to receive an “optional” spousepayment whereby an actuarial reduction of the benefitpayable to you during your lifetime is made so that alarger percentage of the reduced pension will be paidto your surviving spouse after your death. The largerpercentage can be either 75% or 100% of your benefit,whichever you elect. The amount of the reduction willdepend on your age and your spouse’s age so thatbenefits payable to you during your lifetime alone arethe Actuarial Equivalent of the benefit paid over yourlifetime and your surviving spouse’s lifetime to-gether. Actuarial Equivalent means adjusting benefitsdiffering in time, period, or manner so that they havethe same value. The Plan contains the interest rate andmortality assumptions used in determining ActuarialEquivalent.

Effective for retirements commencing on or afterJanuary 1, 1994, if you elect this optional spouse ben-efit and the spouse you had at retirement dies beforeyou, your benefit will be restored to the higher


amount you would have received without the reduc-tion for this optional benefit. Effective for retirementscommencing on or after January 1, 1999, if you electthis optional spouse benefit, you and the spouse youhad at retirement are divorced and your spouse atretirement subsequently waives all rights to receiveany portion of the optional spouse benefit in a Quali-fied Domestic Relations Order (QDRO), your benefitwill be restored to the higher amount you would havereceived without the reduction for this optional ben-efit. In either case, if you then remarry, your subse-quent spouse will receive the regular spouse benefitat 50% and not the optional benefit of 75% or 100%under your earlier election.

If your death occurs before you receive retirementpayments, your eligible surviving spouse will receivethe pension that would have been payable had youretired and begun to receive unreduced retirementbenefits immediately before your death, based onyour actual age as of the first of the month followingyour date of death (or based on the earliest age atwhich you could have received an unreduced retire-ment benefit, if you were not old enough to receive anunreduced retirement benefit at your death) and hadmade the 100% election described above. Paymentswill generally commence to your surviving spouseeffective as of the first day of the month followingyour death.

3. Minimum Spouse’s Benefit for Prior Plan ParticipantsIf you were a Participant on June 30, 1979, the benefit

payable to your spouse will not be less than the nor-mal age retirement payment computed by assumingan average monthly Salary of $800 and the amount ofBenefit Service you had earned as of June 30, 1979,provided, however, that this doesn’t exceed the pen-sion you were receiving (or would have received if


you had retired on your date of death). If it does, thenyour surviving spouse will receive the same amountyou were (or could have been) receiving.

F. Pensions Payable to Survivors of Unmarried Participants

1. OverviewIf you are unmarried and are eligible to start receiv-

ing a pension — whether or not you choose to retire —you can elect to have a pension paid to any survivoryou choose, called a “Contingent Annuitant,” in theevent of your death. You can elect to provide asurvivor’s benefit upon your death while you are stillactively employed or after you retire, or both. Elec-tions must be made at least 30 days before the optionbecomes effective. If you choose the post-retirementoption, you must do so at least 30 days before yourpension starts.

You pay for this coverage through a permanentreduction in your pension. If you elect the pre-retire-ment option, the reduction will be made at the end ofthe coverage period — i.e., at the time of your deathor retirement, whichever is first. If you elect the post-retirement option, the charge is made in advance —i.e., by reducing your pension at the time of yourretirement.

If you get married, any option you have electedunder this Section F will be canceled automatically asof the first anniversary of the marriage if you and yourspouse are alive, at which time your spouse will becovered under the spouse benefit provisions of thePlan. You will not be charged for any further cover-age, and any reduction made in advance will beadjusted to eliminate the portion that applies to cover-age after the first anniversary of your marriage.


2. Pre-Retirement OptionIf you are still in active employment, you can elect

to have a pension paid to your Contingent Annuitantif you die before you retire. You can change the Con-tingent Annuitant at any time, subject to 30 daysadvance notice. If the person you have chosen diesbefore you do, the option is automatically canceledand you have the right to name a new ContingentAnnuitant. The 30 days notice is waived if that hap-pens. You pay for the cost of this pre-retirement cover-age during the time it is in effect through a permanentreduction in your pension once you retire. The reduc-tion for each month of coverage depends on your agewhile covered and on the difference between your ageand your Contingent Annuitant’s age, as shown in thefollowing table:

IF YOUR CONTINGENT ANNUITANT IS:

YYYYYourourourourour More Than 10More Than 10More Than 10More Than 10More Than 10 Within 10 YWithin 10 YWithin 10 YWithin 10 YWithin 10 Years ofears ofears ofears ofears of More Than 10More Than 10More Than 10More Than 10More Than 10AgeAgeAgeAgeAge YYYYYears Years Years Years Years Youngeroungeroungeroungerounger PPPPParticipantarticipantarticipantarticipantarticipant ’s Age’s Age’s Age’s Age’s Age YYYYYears Olderears Olderears Olderears Olderears Older

50 - 54 ......... 1/12% ....................... 1/24% ............................. 1/48%55 - 59 ......... 1/10% ....................... 1/20% ............................. 1/40%60 - 64 ......... 1/8% ......................... 1/16% ............................. 1/32% 65 - 69 ........ 1/6% ......................... 1/12% ............................. 1/24% 70 + .......... 1/4% ......................... 1/8% ............................... 1/16%

The benefit payable to your Contingent Annuitant iscalculated by first reducing your benefit by a percent-age determined on the basis of this table, and thencalculating the benefit your Contingent Annuitantwould have received if you had retired on your dateof death after having elected the post-retirementoption described on the next page with 100% of yourbenefit payable to the survivor.


3. Post-Retirement OptionWhen you retire, you can choose to have 100%, 75%

or 50% of your pension, after it is reduced to cover thecost, paid to a Contingent Annuitant (this percentagemay be further limited as required by law). You cando this whether or not you elected the pre-retirementsurvivor benefit, and the person you name need notbe the same one who was chosen to receive the pre-retirement benefit. The reduction in your pension willbe in addition to any reduction for pre-retirementcoverage. It is based on your age and your ContingentAnnuitant’s age at the time of your retirement.

If your Contingent Annuitant dies before you do,you can make another election naming a new Contin-gent Annuitant. The 30-day notice requirement iswaived under these circumstances. However, there isno adjustment in the reduction made for coverage ofthe Contingent Annuitant who died. That is because— unlike the pre-retirement option charge which ismade retroactively — the post-retirement survivorreduction takes into account the life expectancy of theContingent Annuitant. Also, it is important for you tounderstand that there will be a further reduction inyour benefit if you elect a new Contingent Annuitant.

After your benefit payments have begun, you may notchange your Contingent Annuitant except in the caseof his or her death as described above or to designatea trust whose sole beneficiary is the Contingent Annu-itant and only to the extent such trust satisfies therequirements of the Internal Revenue Code, does notalter the duration of payments, and you satisfy suchother conditions that the Executive Committee requires.

Further, if your election of the post-retirement op-tion is canceled because of your marriage, your ben-efit will be increased under an actuarial computation.The UFCW Benefits Office will notify you if thiscomputation applies to your benefit.


EXAMPLE

Here is an example to show how the pre- and post-retirement options work:

Refer to the example under Section IV.A. coveringNormal Age Retirement Payments. In this case, youfirst would have been eligible to receive a pensionstarting at age 55, and therefore eligible to elect thePre-Retirement Option at that age. Let’s assume thatyou did, in fact, elect it a year later at age 56. Also,assume you did so at least 30 days in advance and thatthe Contingent Annuitant you named was age 51 whenyou were age 56. Then assume that you died at age 58.From the example, your monthly benefit would havebeen $1,487.50. Here is how the benefit payable to yourContingent Annuitant, age 53 at the time of your death,is determined:

(a) The first step is to calculate the benefit to whichyou would have been entitled during your lifetimeonly if you had retired on your date of death. Youwere covered for 2 years and 6 months, a total of 30months; all your coverage was while you were in theage 55-59 group, and your Contingent Annuitant’s agewas within 10 years of your age. From the table, yourbenefit is reduced by 1/20% for each month of coveragein order to pay the cost. This comes to 30/20% or 1.5%and 1.5% of $1,487.50 is $22.31, leaving a net benefitof $1,465.19.

(b) Since you died before you retired, your survivorgets what would have been payable if you had electedthe post-retirement option with 100% of your benefitpayable. Based on your age 58 and your survivor’s age53 when you died, 80.73% of your benefit would havebeen payable, so the survivor gets that percentage of$1,465.19 (see (a) above), or $1,182.85 a month.


Now consider the circumstance under which youdidn’t die but retired at age 58. What benefit is payable?Here are some of the more common illustrations:

(c) You elected the pre-retirement coverage previouslydescribed, but decline any post-retirement coverage. Youget the $1,465.19 determined under Step (a) each monthfor your life.

(d) You elected the pre-retirement coverage and the100% post-retirement option. You get the $1,182.85determined under Step (b) for your life and yourContingent Annuitant gets the same amount for hisor her life if you die first.

(e) You elected the pre-retirement coverage and the75% post-retirement option. You get $1,465.19 x 84.81%= $1,242.63 per month for your life and your survivorgets 75% of that amount, or $931.97 for his or her lifetime.

(f) You elected the pre-retirement coverage and the50% post-retirement option. You get $1,465.19 x 89.34%= $1,309.00 per month for life and your survivor gets50% of that amount, or $654.50 for life.

(g) You didn’t elect any pre-retirement coverage, butyou elected the 100% (or 75% or 50%) post-retirementoption. Your benefit and your survivor’s are calculatedas in (d) or (e) or (f), but substituting your unreducedbenefit of $1,487.50 for $1,465.19.

We have included these examples to show you how thisprovision of the Plan works, but please note that they arebased on eligibility, benefit and age conditions that do notapply to you personally. By referring to the above table anddoing the necessary arithmetic, you can get an idea of thepercentage by which the pre-retirement option will reduceyour pension, but the tables required to calculate the reduc-tion for the post-retirement option are much too extensive tobe included here. You should also be aware that if your


Contingent Annuitant is more than ten years younger thanyou, under federal law additional reductions to your Con-tingent Annuitant’s benefit may be applicable. You shouldcontact the Benefits Office for illustrations to fit your ownsituation if you are interested in electing the pre- or post-retirement option, or both.

G. Refund of Accumulated ContributionsIf you stop participating in the Plan after November 30,

1988 and leave Eligible Employment, and have less than fiveyears of Vesting Service, you can receive a refund of yourEmployee Contributions. The Employee Contributionsrefunded include interest compounded annually fromJanuary 1, 1976 or, if later, from the January 1 following thedate the contribution was made. The annual interest rate forperiods before May 1, 1988 is 5%. For periods after April 30,1988, the rate is determined by the federal government andwill change as of each May 1.

If the total Accumulated Contributions to be refunded toyou is equal to $5,000 or less, a lump sum cash payment willbe made to you following your termination of employment.If the amount to be refunded to you is greater than $5,000,you must obtain the consent of your spouse, if any, if youwish to receive a lump sum distribution.

If the amount to be refunded to you is greater than $5,000,you can receive your refund in the form of monthly pay-ments for your lifetime or, if you are married, in the form ofa 50% Joint and Survivor Annuity with monthly paymentscontinuing to your spouse upon your death. Those monthlypayments may be immediate, commencing at your date oftermination, or deferred to your Normal Retirement Age.Under either option, the benefit you will receive is not basedupon the Plan’s benefit formula. It is determined by takingyour Accumulated Contributions plus interest and convert-ing this amount into an annuity on the date payments areto start.


The interest payable on your Employee Contributions istaxable. Consequently, unless you transfer this interestdirectly to an IRA, other qualified plan that accepts rolloverpayments, we are required by the IRS to withhold 20% ofthis taxable distribution for federal income taxes. There maybe other excise taxes that apply to an early distribution.

When you apply for a distribution, if your benefit is af-fected by these rules, the UFCW Benefits Office will provideyou with information regarding your “rollover” options. Formore specific details concerning whether the excise taxapplies to your distribution, you should consult your taxadvisor or accountant.

H. Lump Sum Refund to BeneficiaryFor the purposes of this SPD, a Beneficiary means a person

entitled to benefits under the Plan rules upon your death. Ifyou are married at the time of retirement, your spouse isyour Beneficiary unless he or she consents to another Benefi-ciary. Any change in Beneficiary must be completed onforms designated by the Administrator.

If you die, your Beneficiary may be eligible to receive alump sum refund of Accumulated Contributions if one ofthe following conditions applies:

1. If, as a Participant or Former Participant, you diebefore starting to receive disability or age payments,without leaving a spouse or other Contingent Annu-itant eligible to receive payments, your Beneficiaryreceives the lump sum refund computed underSection G as if your participation had stopped asof the date of death. If you received any benefits fromthe Plan before your death, these would be deductedfrom the refund.

2. If, as a Pensioner receiving age payments, you diewithout leaving a spouse or other Contingent Annu-itant eligible to receive payments, your Beneficiaryreceives the lump sum refund, computed under


Section G as of the date of your retirement, less thetotal of the payments made to you.

3. If, as a Pensioner receiving disability payments, youdie without leaving a spouse eligible to receivespouse payments, your Beneficiary receives the lumpsum refund, computed under Section G above as ofthe date of your retirement, less the total of the pay-ments made to you.

4. Upon the death of your surviving spouse or otherContingent Annuitant who is receiving payments asthe result of your death (whether before or after yourretirement), your Beneficiary will receive the lumpsum refund, computed under Section G as of the dateof your death, less the total of the payments made toyou and your spouse or Contingent Annuitant.

Note that, except under Condition 3, no refund would bepayable if the total benefits received by you and/or yourspouse or Contingent Annuitant exceeds the amount of yourAccumulated Contributions. Also note that if there is nosurviving spouse, Contingent Annuitant, or designatedBeneficiary, the Plan pays the refund, if any, to your survi-vors in the following order:

• to your surviving children;• to your surviving parents;• to your estate.If you die before becoming a Pensioner, any refund of

Accumulated Contributions payable to a non-Spouse Benefi-ciary under this Section must be made by December 31st ofthe calendar year containing the fifth anniversary of yourdeath. Any refund of Accumulated Contributions payable toa Spouse Beneficiary under this section or Section G mustcommence by December 31st of the calendar year in whichyou would have reached age 70½.


I. Lump Sum Death BenefitIn addition to the other benefits just described, if you die

while a Participant, your Beneficiary receives a lump sumpayment of $5,000. If you die while receiving age or disabil-ity payments and were an active Participant at the time ofretirement, your Beneficiary receives $3,000. You can nameanyone you choose as your Beneficiary for this death benefiton forms designated by the Administrator. If your Benefi-ciary is your Spouse these payments can be rolled over to anIRA or other qualified plan.

V. LIMITATIONS ON BENEFITSEven if you are eligible for one of the benefits described in

Part IV, certain limitations may apply that will reduce orpostpone payments. These limitations are outlined below.

A. Reemployment After RetirementIf you are receiving normal, early, or vested deferred age

retirement payments and then return to Eligible Employ-ment, your payments will stop during the period of reem-ployment. If you return to Eligible Employment but do notbecome a Participant, payments of the same amount willresume when you retire again. Effective November 1, 1999,if you become age 70½ on or after October 15, 1999, yournormal age retirement benefits will not commence until theApril 1st following the later of the calendar year in whichyou reach age 70½ or the calendar year in which you termi-nate Eligible Employment.

If you return to Eligible Employment and become a Par-ticipant, when you retire again, your payments will beadjusted to reflect additional Benefit Service and additionalSalary you earned. The increase is calculated by taking theaverage monthly Salary you received during reemployment,applying to that the difference between the percentageapplicable at the time of your retirement and the percentagefrom the table on page 24 for normal age retirement pay-


ments obtained by adding all of your Benefit Service, andadding that amount to the amount of the payments youwere previously receiving. The following example showshow it is done:

Assume that the same Participant described in the ex-ample under normal age retirement payments returned towork, and earned 3½ years of Benefit Service and an averagemonthly Salary of $3,600. Instead of receiving $1,487.50 amonth upon returning to retirement, he would receive$1,784.50 per month, calculated as follows:

a. Add additional Benefit Service (3½ years) to previousBenefit Service (17½ years) = 21 years

b. New percentage of average monthly Salary, using table,based on total years (21 years = 52%) 52%

c. Difference between percentage prior to reemployment(43.75%) and new percentage (52%) = 8.25%

d. Difference between percentage (8.25%) times new aver-age monthly Salary ($3,600) = $297

e. Addition of pre-reemployment and reemploymentamounts ($1,487.50 + $297 = $1,784.50)

B. Distributions After Age 70½Effective May 1, 1989, normal age retirement benefits are

payable to you on the later of April 1, 1990 or the April 1following the year you reach age 70½ even if you continuein Eligible Employment at that time. (This rule applies toPlan Participants who become 70½ after January 1, 1988. Ifyou attained age 70½ before January 1, 1988, your benefitswill commence when you terminate employment.)

Effective November 1, 1999, if you become age 70½ on orafter October 15, 1999, you will begin to receive your normalage retirement benefits on the April 1st following the later ofthe calendar year you reach age 70½ or the calendar year inwhich you terminate Eligible Employment. If you become70½ on or after October 15, 1999 and you remain in Eligible


Employment after the April 1st following the calendar yearyou reach age 70½, your payments at your actual retirementwill be the greater of (1) your pension benefit recomputedbased on increases in Salary and Benefit Service at yourretirement, and (2) your pension benefit actuarially in-creased to reflect your age at retirement.

C. Late Participation Penalty

1. Individuals Who Became Participants On or Before December 1, 1988If you fail to become a Participant within one year

after starting Eligible Employment, but then becomea Participant on or before December 1, 1988 andremain a Participant throughout the remainder ofyour career, you are eligible to receive Vesting Serviceand Benefit Service for any prior period of EligibleEmployment by:

• continuing to make required Employee Contributionsfrom December 1, 1988 until the earlier of separationfrom service or the completion of 240 months of con-tributory service, in which case no reduction willapply; or

• making the required Employee Contributions for theentire previous period of Eligible Employment (whichwill be counted toward your required 240 months ofcontributions). However, you will be subject to areduction to your monthly retirement pay of 1/12% foreach month beyond 12 in the period in which youcould have been a Participant but were not. This lateparticipation reduction penalty will not apply if youpay interest as determined by the Benefits Office onthe required Employee Contributions accrued fromthe date of the prior period of Eligible Employmentfor which the contributions were not made through thedate of actual payment to the Plan.

If either of the two conditions described above aresatisfied, your original service and participation date


will be reinstated. However, Service that has beencancelled as a result of a Loss of Service will not bereinstated under this provision.

EXAMPLE

Assume that the same Participant described in theexample under normal age retirement payments hadnot become a Participant until 3½ years after he was inEligible Employment. When he became a Participant,he made contributions for that period of employmentand his 17½ years of Benefit Service includes thatperiod (possible only if he became a Participant on orbefore December 1, 1988). His normal age retirementpayments would be $1,450.31, calculated as follows:a. Normal age retirement payments: $1,487.50b. Number of months of noncovered Eligible Employment in excess of 12(2½ years = 30 months) times 1/12th of one percent = 2.5%c. Reduction factor times otherwise payable benefit (2.5% x $1,487.50) = $37.19d. Otherwise payable benefit minus reduction ($1,487.50 - $37.19) = $1,450.31

This reduction does not apply to periods before June 30,1979 if you were a Participant in the RCIU Plan on June 30,1979 and you made the special payments described inSubsection (1)2(c) of the RCIU Plan. If you were a Participantin the AMC&BW Plan on June 30, 1979 and the late partici-pation penalty in Article H, Section 2 of that Plan applied toyou, the penalty still applies unless you took advantage ofthe opportunity offered to you to remove it. However, thepenalty can be removed at any time before retirement if youpay the “actuarial equivalent” of the penalty in a lump sum.(The actuarial equivalent is the lump sum amount calcu-lated to be of equal value to that of the penalty.) If you dieand your surviving spouse is eligible for spouse payments,the payment can be made by your spouse.


There are several circumstances in which the late participa-tion penalty can be either completely eliminated, or reduceddepending on the number of years in which a Participanthas made contributions. For any Participant retiring on orafter January 1, 2005 who has made employee contributionsfor at least twenty years, excluding prior years of EligibleEmployment in which he purchased service, the late partici-pation penalty of 1/2 % per month will not apply. The lateparticipation penalty will only apply to that service that waspurchased that is needed to reach 240 months of contributions.

EXAMPLE

Assume that a Participant with a normal age retire-ment benefit of $1,500 retires with 22 years of service,17 years of service in which contributions weremade after commencing participation, and five yearsrepresenting a purchase of service for periods ofEligible Employment prior to the first date he becamea Participant. His benefit would be $1,456.80 calculatedas follows:a. Normal age retirement payments: $1,500.00b. Number of months of noncovered Eligible Employment needed to reach 240 total months of Employee Contributions - 240 - 204 (3 yrs x 12) = 36 monthsc. 36 times 1/12 of one percent = 2.88%d. Reduction factor times otherwise payable benefit (2.88% x $1,500) = $43.20e. Otherwise payable benefit minus reduction ($1,500 - $43.20) = $1,456.80

2. Individuals Who Become Participants After December 1, 1988If you fail to become a Participant within one year

after starting Eligible Employment, but then become aParticipant after December 1, 1988, the period of pre-participation employment cannot be counted forBenefit or Vesting Service.


D. Penalty For Leaving and Returning to Participant Status

1. Original Participation Date On or Before December 1, 1988If you were a Participant on or before December 1,

1988 and ceased being a Participant while continuingin Eligible Employment, you were required to be-come a Participant again on or before December 1,1988. If you return any refund of Accumulated Contri-butions and make the contributions required for thatemployment period before you retire, you will haveVesting and Benefit Service reinstated. However,Service that has been cancelled as a result of a Loss ofService will not be reinstated under this provision.Any monthly retirement payment for such a Partici-pant will be reduced by 1/12th of one percent multi-plied by the number of months you are buying backup to the amount needed to reach 240 months of totalemployee contributions. As previously noted, if youretire on or after January 1, 2005 and have 240 monthsof employee contributions without any purchase ofprior service of Eligible Employment to late participa-tion penalty of 1/12 of one percent will not apply.

2. Original Participation Date After December 1, 1988If you first become a Participant after December 1,

1988, and cease being a Participant while continuingin Eligible Employment, but then become a Participantagain, the period in which you were not a Participantwill not be counted for Benefit or Vesting Service.

3. ReemploymentIf you skip a period of participation because you

leave Eligible Employment, and then become a Par-ticipant again (returning any refund of AccumulatedContributions with interest), your original Vestingand Participation date will be reinstated, whether ornot you first became a Participant on or before Decem-ber 1, 1988, as long as:


• you were vested before you left Eligible Employment;or

• you were not vested but returned to Eligible Employ-ment before a loss of Vesting Service, and repay anyrefund of Accumulated Contributions with interestwithin five years of reemployment.

If, however, you become a Participant more than one yearafter returning to Eligible Employment, you cannot receiveVesting or Benefit Service for your period of pre-participation.

E. Maximum Limitations on BenefitsYour annual benefit payable under the Pension Plan and

all other defined benefit plans maintained by the Interna-tional Union or UFCW Chartered Bodies cannot exceed thelower of:

• $180,000 actuarially reduced (if you are at or above age55 and below age 62, or actuarially increased (if you areolder than age 65), as applicable. (The $180,000 is effec-tive for 2007, and may be adjusted annually by the IRS)

Separate limits may apply if you have less than ten yearsof Benefit Service and the Benefits Office will contact you ifyou are affected by those limits.

The law also requires that if the Plan should become “topheavy” (under special IRS rules), a more liberal vestingschedule and an additional minimum benefit formula wouldapply to all or part of your pension. However, Participantswith five years of Vesting Service remain fully vested in thePlan. The Executive Committee will notify you if you willbe affected by these rules.

F. Lump Sum PaymentIf the value of your total benefit that is subject to rollover

to an IRA or qualified plan is $1,000 or less, you will receivea lump sum distribution of your entire benefit rather than amonthly lifetime pension and you will not have the optionof electing a different form of benefit.


VI. BENEFIT INCREASES FOR RETIREESTwo groups are entitled to limited increases under condi-

tions specified in the Plan:• former Participants (and their surviving spouses) of the

RCIU or AMC&BW Plan, who in the case of theAMC&BW Plan, retired directly from covered employ-ment or in the case of the RCIU Plan, retired as an ActiveParticipant, if they were receiving either age or disabil-ity retirement payments on June 30, 1979; and

• if such Participants or active Participants died prior toJune 30, 1979, their surviving spouses will receive thisbenefit increase, if the spouse was receiving paymentson June 30, 1979.

This increase only applies under the conditions specifiedin the Plan. Briefly, the monthly pension is increased eachJuly by $5 for each full 1% increase in the Consumer PriceIndex over the previous calendar year, but each increase islimited to a $25 maximum.

In addition, Pensioners described above (or their survivingspouses), who are living on May 1, 1996, will have theirmonthly pension increased by the lesser of 20% of theirmonthly pension payable as of July 1, 1999 or $150.00. Inorder to receive this increase, the Pensioner or the deceasedPensioner who was married to the surviving spouse musthave completed 15 years of participation in the RCIU orAMC&BW Plans.


SECTION THREE - PLAN OPERATION AND ERISAINFORMATION

I. MISCELLANEOUSThis has been a general summary of the most important

provisions of the Pension Plan. No general statement suchas this can adequately express all the details of the PensionPlan. Nothing in this statement is meant to interpret, extendor change in any way the rules and regulations expressed inthe Plan.

Accordingly, if you are covered by the Plan, your benefitscan only be determined by consulting the Plan itself. Fora complete copy of the Plan document that covers you,contact the UFCW Benefits Office at International Unionheadquarters.

II. RECORD KEEPING FOR THE PLANThe International Union maintains the necessary records

of Participants and is prepared to answer questions thatParticipants may have about the Plan. Questions may bedirected to:

UFCW International Union Pension Plan for Employeesc/o UFCW Benefits Office1775 K Street, N.W.Washington D.C. 20006-1598(202) 223-3111

Service of process may be made on the administrator of thePlan or a member of the Executive Committee.

III. FUTURE OF THE PLANThe International Union intends to continue the Pension

Plan indefinitely, but reserves the right to amend or termi-nate the Plan, or to reduce, suspend, or discontinue contri-butions, if that should ever be necessary. In the event oftermination or partial termination of the Plan, your interests

Section Three - Plan Operation and ERISA Information 59

under the Plan are nonforfeitable to the extent funded andthe assets of the Fund will be allocated in accordance withthe Executive Committee’s decision and applicable law. ThePlan is also subject to the continuing approval of the InternalRevenue Service and may be modified as needed to keepthe Plan qualified under the Internal Revenue Code.

IV. HOW TO APPLY FOR BENEFITSAbout three months before you would like to retire, you

should call the UFCW Benefits Office to advise of the ap-proximate date you would like to retire. If you would like acurrent estimate of your pension benefit, the UFCW BenefitsOffice will send you one. To get your pension, you or yourduly authorized representative must file an application forbenefits under the Plan. To name an authorized representa-tive to act on your behalf, you must notify the ExecutiveCommittee in writing of the representative’s name, address,and telephone number and authorize the Executive Commit-tee to release information to your representative. The UFCWBenefit Office will supply you with all the forms and assis-tance necessary for the proper filing of an application. Youwill be required to submit a birth certificate or other accept-able proof of age and other information necessary to processyour application. Benefits will not begin until a completedapplication is filed and it is determined that you are eligibleto receive the benefits. Once your benefit has commenced,the form of your benefit cannot be changed, except as other-wise expressly allowed under the Plan.

If you make a claim for benefits under the Plan, and all orpart of it is denied, the Executive Committee will notify youof the reasons for the denial with specific reference to theappropriate Plan provisions, and a description of any addi-tional information needed for reconsideration. The Commit-tee will also tell you how you can appeal this decision.Claim denials will be sent to you in writing within ninety(90) days of the date we receive the claim (45 days for dis-ability claims) unless special circumstances require an

60 Section Three - Plan Operation and ERISA Information

extension, in which case the Executive Committee will haveup to ninety (90) additional days to decide your claim (up totwo 30 day extensions to decide disability claims).

The appeal procedure is stated below for your information.1. If you wish to appeal, within 90 days of receiving the

Committee’s determination letter, (180 days for denialof a disability claim) you must send a written applica-tion to the Committee indicating your desire to ap-peal. As part of the appeal process, you or your repre-sentative may review pertinent Plan documents andreceive, upon request and free of charge, reasonableaccess to and copies of all documents and recordsrelevant to the claim. You must include the reasons forthe appeal and any additional information you mayhave available to support your claim for benefits.

2. The Executive Committee will decide your case at thenext meeting after receiving your request for review,unless the appeal is filed within thirty (30) days of thatmeeting, in which case it will be reviewed at the fol-lowing meeting.

If special circumstances (as determined by the Committee)require more time for a decision, you will be notified. Thedecision of the Committee will be in writing and sent to youwithin 5 days of the decision, and it will explain the reasonsfor the decision.

The Executive Committee has the power to interpret,apply, construe, and amend the provisions of the PensionPlan and make factual determinations regarding its con-struction, interpretation and application, and any decisionmade by the Executive Committee in good faith is final andbinding upon Employers, Employees, Participants, Benefi-ciaries, and all other persons who may be involved or af-fected by the Pension Plan.

If your claim is denied, in whole or in part, you are notrequired to appeal the decision. You have a right to file suitin federal or state court under Section 502(a) of the Em-


ployee Retirement Income Security Act (“ERISA”) on yourclaim for benefits, however, you must exhaust your admin-istrative remedies by appealing the denial to the ExecutiveCommittee before you have the right to file suit in state orfederal court. Failure to exhaust these administrative rem-edies will result in the loss of your right to file suit, asdescribed in the ERISA Rights statement of this SummaryPlan Description.

V. FINANCIAL OPERATIONSThe financial records of the Plan and Trust are maintained

on a fiscal year and a Plan Year ending April 30. The Execu-tive Committee meets regularly with the Plan’s Actuary andother advisors to review the anticipated contributions,investment income, benefit payments and Plan expenses.These reviews are carried out consistent with the ExecutiveCommittee’s intent to run the Plan on a sound financial basisin accordance with the funding requirements of the Em-ployee Retirement Income Security Act of 1974 (ERISA). Inaddition, the financial operations are audited annually by anindependent firm of certified public accountants.

For the protection of your interests and those of yourdependents, your benefits under the Plan cannot be as-signed and are not subject to garnishment or attachment,except to the extent permitted by a QDRO and to the extentapplicable law and the Plan allows Participants and Benefi-ciaries to direct a portion of their monthly benefit paymentto the International Union to be used by the UFCW Interna-tional Active Ballot Club or to pay for any applicablemonthly premiums required for coverage under the UFCWHealth Insurance Plan for Retirees.

VI. QUALIFIED DOMESTIC RELATIONS ORDERSWhen the UFCW Benefits Office receives any judgment,

decree, or order (including approval of a property settle-ment agreement) that requires the Plan to pay benefits to an


Alternate Payee, as defined below, pursuant to a state do-mestic relations law, the Plan will notify the Participant andthe Alternate Payee of the receipt of that judgment and theprocedures for determining whether it is a QDRO.

An Alternate Payee means any Spouse, former Spouse,child, or other dependent of a Participant recognized by adomestic relations order as having a right to receive all, or aportion of, the benefits payable under the Plan. To the extentprovided in any QDRO, the former Spouse of a Participantcan be treated as the surviving Spouse for purposes of thesurvivor annuity and pre-retirement surviving spouseannuity if the former Spouse and Participant were marriedfor at least one year as of the date of divorce.

The Plan will honor the judgment as a QDRO if it meetsthe following requirements:

1. It must relate to the provision of child support, ali-mony, or marital property rights to a Spouse, formerSpouse, child, or other dependent of a Participant, andmust be made pursuant to a state domestic relations law.

2. It must clearly specify the name and last known ad-dress of the Participant and the mailing address ofeach Alternate Payee covered by the order. (An orderwill not be treated as failing to be a qualified ordermerely because it does not specify the current mailingaddress of the Participant only if the Plan has reason toknow the address independent of the order.)

3. It must specify the amount of percentage of theParticipant’s benefits to be paid by the Plan to theAlternate Payee, or the manner in which the amount isto be determined.

4. It must specify the number of payments or period towhich the order applies, and each Plan to which theorder applies.

For more information about the Plan’s procedures fordetermining whether an order is a QDRO, please contact theUFCW Benefits Office.


VII. ERISA RIGHTSAs a Participant in the United Food and Commercial

Workers International Union Pension Plan for Employees,you are entitled to certain rights and protections under theEmployee Retirement Income Security Act of 1974 (ERISA).The Executive Committee complies fully with this law andencourages you to first seek assistance from the UFCWBenefits Office when you have questions or problems thatinvolve the Plan.

ERISA provides that all Plan Participants shall be entitled to:• Examine, without charge, at the Plan administrator’s

office and at other specified locations such as work sites,all Plan documents, including insurance contracts,collective bargaining agreements, and a copy of thelatest annual report (Form 5500 Series) filed by the Planwith the U.S. Department of Labor, and available at thePublic Disclosure Room of the Employee Benefits Secu-rity Administration.

• Obtain copies of documents governing the operation ofthe plan, including insurance contracts and collectivebargaining agreements, and copies of the latest annualreport (Form 5500 Series) and updated summary plandescription upon written request to the Plan administra-tor. The administrator may make a reasonable charge forthe copies.

• Receive a summary of the Plan’s annual financial report.The Plan administrator is required by law to furnisheach Participant with a copy of this summary annualreport.

• Obtain a statement telling you whether you have a rightto receive a pension at Normal Retirement Age and if so,what your benefits would be if you stop working underthe Plan now. If you do not have a right to a pension, thestatement will tell you how many more years you haveto work to get a right to a pension. This statement mustbe requested in writing and is not required to be given


more than once a year. The Plan must provide the state-ment free of charge.

In addition to creating rights for Plan Participants, ERISAimposes duties upon the people responsible for the opera-tion of the Plan. The people who operate your Plan, calledfiduciaries, have a duty to do so prudently and in the inter-est of you and other Plan Participants and Beneficiaries. ThePlan does not give you any right to continue in Employ-ment. However, no one may fire you or discriminate againstyou in any way for the purpose of preventing you fromobtaining a benefit or exercising your rights under ERISA. Ifyour claim for a benefit is denied or not responded to, inwhole or in part, you have the right to know why this wasdone, to obtain copies of documents relating to the decisionwithout charge, and to appeal any denial, all within certaintime schedules.

Under ERISA, there are steps you can take to enforce theabove rights. For instance, if you request a copy of the Plandocuments or the latest annual report from the Plan and donot receive them within 30 days, you may file suit in afederal court. In such case, the court may require the Execu-tive Committee to provide the materials and pay you a fineof up to $110 per day until you receive the materials, unlessthe materials were not sent because of reasons beyond thecontrol of the Executive Committee. In addition, if youdisagree with the Plan’s decision or lack thereof concerningthe qualified status of a domestic relations order, you mayfile suit in Federal court. If you have a claim for benefitswhich is denied or not responded to, in whole or in part,you may file suit in a state or federal court. If Plan fiducia-ries ever misuse the Plan’s money, or if you are discrimi-nated against for asserting your rights, you may seek assis-tance from the U.S. Department of Labor, or you may filesuit in a federal court. The court will decide who should paythe court costs and legal fees. If you are successful, the courtmay order the person you have sued to pay these costs and


fees. If you lose, the court may order you to pay these costsand fees – if it finds your claim is frivolous, for example.

If you have any questions about your Plan, you shouldcontact the Plan administrator. If you have any questionsabout this statement or about your rights under ERISA, or ifyou need assistance in obtaining documents from the Planadministrator, you should contact the nearest area office ofthe Employee Benefits Security Administration, Departmentof Labor, listed in the phone directory or the Division ofTechnical Assistance and Inquiries, Employee BenefitsSecurity Administration, U.S. Department of Labor, 200Constitution Avenue, N.W., Washington, DC 20210. Youmay also obtain certain publications about your rights andresponsibilities under ERISA by calling the publicationhotline of the Employee Benefits Security Administration.

Nothing contained in this booklet gives you the right to beretained in the service of your Employer; or interfere withthe rights of your Employer to discharge you at any timewithout regard to the effect such discharge has upon yourrights, if any, under the Plan.

VIII. PENSION BENEFIT GUARANTY CORPORATION INSURANCEYour pension benefits under this multiemployer plan are

insured by the Pension Benefit Guaranty Corporation(PBGC), a federal insurance agency. A multiemployer planis a collective bargained pension arrangement involving twoor more unrelated employers, usually in a common industry.

Under the multiemployer plan program, the PBGC pro-vides financial assistance through loans to plans that areinsolvent. A multiemployer plan is considered insolvent ifthe plan is unable to pay benefits (at least equal to thePBGC’s guaranteed benefit limit) when due.

The maximum benefit that the PBGC guarantees is set bylaw. Under the multiemployer program, the PBGC guaran-tee equals a participant’s years of service multiplied by (1)100% of the first $11 of the monthly benefit accrual rate and


(2) 75% of the next $33. For example, the maximum annualguarantee for a retiree with 30 years of service and a $23 permonth accrual rate would be $7,200.

The PBGC guarantee generally covers: (1) Normal andearly retirement benefits; (2) disability benefits if you be-come disabled before the plan becomes insolvent; and (3)certain benefits for your survivors.

The PBGC guarantee generally does not cover: (1) Benefitsgreater than the maximum guaranteed amount set by law;(2) benefit increases and new benefits based on plan provi-sions that have been in place for fewer than 5 years at theearlier of: (I) The date the plan terminates or (ii) the time theplan becomes insolvent; (3) benefits that are not vestedbecause you have not worked long enough; (4) benefits forwhich you have not met all of the requirements at the timethe plan becomes insolvent; and (5) nonpension benefits,such as health insurance, life insurance, certain death ben-efits, vacation pay, and severance pay.

For more information about the PBGC and the benefits itguarantees ask your plan administrator or contact thePBGC’s Technical Assistance Division, 1200 K Street, N.W.,Suite 930, Washington, D.C. 20005-4026 or call 202-326-4000(not a toll-free number). TTT/TDD users may call the fed-eral relay service toll-free at 1-800-877-8339 and ask to beconnected to 202-326-4000. Additional information about thePBGC’s pension insurance program is available through thePBGC’s website on the Internet at http://www.pbgc.gov.


United Food and Commercial Workers International Union1775 K Street NWWashington DC 20006-1598

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