INTERNATIONAL RECIPROCAL AGREEMENT 

FOR BRICKLAYERS AND ALLIED 

CRAFTWORKERS DEFINED CONTRffiUTION AND 

DEFINED BENEFIT PENSION PLANS 

February 2005 
INTERNATIONAL RECIPROCAL AGREEMENT FOR BR1CKLA YERS AND 

ALLIED CRAFTWORKERS DEFINED CONTRIBUTION AND 

DEFINED BENEFIT PENSION PLANS 

WHEREAS, the Trustees of each signatory Defined Contribution and Defined 

Benefit Pension Fund, acting under separate Trust agreements, are authorized and 

empowered to grant and administer pension benefits, under their respective plans, to 

employees who are or have been represented in collective bargaining by BAC local unions; 

and 

WHEREAS, many employees have been, or are, or may be, from time to time 

employed by employers under contract to contribute to one of the signatory defined 

contribution and defined benefit pension funds, and at another time employed by an 

employer under contract to contribute to another of the signatory funds; and 

WHEREAS, many employees may thus lose pension benefits from any signatory 

fund, and 

WHEREAS, the Trustees of each signatory defined contribution and defined benefit 

fund desire to promote the interests and well-being of the fund's participants by 

accumulating all benefits in one defined contribution or one defined benefit fund; and 

WHEREAS, the Trustees of each such signatory defined contribution and defmed 

benefit fund desire to provide for the implementation of the necessary plan amendments 

providing for reciprocity and the establishment of procedures to carry out the terms of this 

Reciprocal Agreement; and 

WHEREAS, the Trustees of each signatory defined contribution and defined benefit 

fund executing this Reciprocal Agreement on behalf of their respective pension fund 

represent and warrant that they have been duly authorized to make, execute and deliver this 

Reciprocal Agreement; 

NOW, THEREFORE, it is agreed as follows: 
INDEX 

I. DEFINITIONS AND EFFECTIVE DATE....................................... l 

II. OPERATION OF RECIPROCAL AGREEMENT........................... 9 

Ill. LIMITS OF LIABILITY AND RESPONSIDILITY .. ..... .... . .. ..... ..... 17 

IV. OTHER PROVISIONS..................................................................... 19 

V. SIGNA'fURE PAGE......................................................................... 23 

VI. BRIEF OVERVIEW AND EXPLANATION................................... 24 

VII. QUESTIONS AND ANSWERS....................................................... 25 

VIII. TYPICAL OPERATION................................................................... 34 

IX. FORMS........ ..... ..... . ....................... .... . .... .... .... ........ .... 40 
I. DEFINITIONS AND EFFECTIVE DATE 

SECTION 1. DEFINITIONS 

1. Wherever used in this Agreement, the following words shall have the meaning 

indicated: 

(a) Agreement 

The International Reciprocal Agreement for Bricklayers and Allied 

Craftworkers Defined Contribution and Defined Benefit Pension Plans. This 

Agreement will apply onJy to work performed in the U.S. 

(b) Employer Contribution or Contributions 

The Monies which an employer is duly required by contract or otherwise to 

contribute to a Participating Trust Fund party hereto for the purpose of 

providing a plan of benefits for Temporary or Permanent Employees. 

(c) Participating Trust Fund 

Any jointly administered pension fund which is a defined contribution fund 

(as defined in Title 1, Section 3, Paragraph (34) of ERISA) or a defined 

benefit f11nd (as defined in Title 1, Section 3, Paragraph (35) ofERISA) which 

is signatory or a party to this Agreement and covers employment within the 

jurisdiction of an International Union of Bricldayers and Allied Craftworkers 

local union and is signatory to the service provider contract with the entity 

which maintains ERTS. 

(d) Employee's Home Fund 

A Temporary Employee's Home Fund shall be established under the rules set 

forth below. If the Temporary Employee cannot satisfy the conditions of 

these rules, he shall have no Home Fund and shall not be eligible to have 

contributions transferred pursuant to this Reciprocal Agreement. 

i. If the Temporary Employee belongs to a BAC local union, his Home 

Fund shall be the Participating Trust Fund which is operative within 

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the jurisdiction of the local union to which the Temporary Employee 

belongs if he has received credited service in the jurisdiction of that 

Fund during any time in the past six years. 

ii. If the Temporary Employee does not meet the condjtions under the 

preceding subparagraph (i), his Home Fund shall be the Participating 

Trust Fund in which the Temporary Employee has received credited 

service if the Temporary Employee intends to return to work in the 

jurisdiction of such fund as soon as work is available. Rules 

establishing return to work requirements shall be the responsibility of 

each Participating Trust Fund. 

(e) Permanent Employee 

An employee employed within the jurisdiction of the BAC local union of 

which he is a member or within the jurisdiction of his Home Fund. 

(t) Temporary Employee 

An employee employed temporarily outside the jurisdiction of his Home Fund 

which is a party hereto, and within the jurisdiction of another Participating 

Fund which is also a party to this agreement. However, if an employee is a 

member of an International Union of Bricklayers and Allied Craftworkers 

local union and is a participant or has credited service in the pension fund of 

that local union, the employee will not be covered by the tenns of this 

Agreement unless such fund is signatory to this Agreement and a service 

provider contract with the entity which maintains ERTS. 

(g) Reciprocal Clearinghouse 

The International Office of the International Union of Bricklayers and Allied 

Craftworkers shall be the Reciprocal Clearinghouse. All correspondence shall 

be addressed to: 

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Reciprocal Clearinghouse 

International Union of Bricklayers and Allied Craftworkers 

1776 Eye Street, N.W., Suite 750 

Washington, DC 20006 

The Reciprocal Clearinghouse shall be responsible for receiving signed 

Agreements and notifications of termination from Participating Funds. The 

Reciprocal Clearinghouse shall also prepare all approved forms, prepare and 

circulate proposed amendments to the Agreement and determine when an 

amendment has passed, maintain a listing of current Participating Funds, 

forward all material to Participating Funds, and assist Participating Funds in 

whatever manner possible consistent with this Agreement. It is expressly 

understood and agreed that the Reciprocal Clearinghouse will serve as a 

clearinghouse for the exchange of information, approved forms and copies of 

monthly reports from all Participating Funds for any employee for whom 

Monies are transferred, and that the Reciprocal Clearinghouse has no 

discretionary authority or responsibility over the administration, control or 

assets of any fund which participates in this Agreement In addition, the 

Reciprocal Clearinghouse will receive and maintain copies of aU employee 

authorization forms. 

(h) Monies 

An amount equivalent to the Contributions received by a Participating Fund 

on behalf of a Temporary Employee. 

(i) Gender 

Unless otherwise specified, use of the masculine gender shall be understood to 

include both masculine and female genders. 

(j) ERISA 

The Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 

Sec. 1001 et seq., as amended, and the rules and regulations established 

pursuant to the Act. 

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(k) ELECTRONIC RECIPROCAL TRANSFER SYSTEM OR ERTS 

That electronic system or medium for processing reciprocity related information and 

fonns in fmtherancc of this Agreement. 

(i) ASSISTING LOCAL UNION 

A local labor w1ion affiliated with the BAC or accepted as an additional party 

pursuant to Section 5 which assists in the operation of the Agreement as a facili1ator 

for the exchange of information. It is expressly acknowledged that such assistance is 

rendered by the BAC local union directly to, and for, its membership (and others) 

whom it represents as the collective bargaining representative. 

SECTION 2. EFFECTIVE DATE AND PARTIES TO AGREEMENT 

Any pension fund desiring to become party to this Agreement shall so notify the Reciprocal 

Clearinghouse by sending a copy of a properly adopted and signed Agreement to the 

Reciprocal Clearinghouse by Certified Mail. The effective date of this Agreement as to such 

a Fund shall be the first day of the month following the date the above-described copy is 

received by the Reciprocal Clearinghouse. The date this Agreement becomes operative as 

between any two participating funds shall be the effective date of this Agreement for each 

such Fund if they are the same, or the later of the two effective dates if they are not the same. 

Each Participating Fund which becomes a party to this Agreement is entering into this 

Agreement as of the appropriate effective date with all other present and future Participating 

Funds. No party shall be obligated to transfer any Monies received prior to its effective date 

under this Agreement. 

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This Agreement shall be binding on the parties hereto and any other party who becomes 

signatory hereto by signing a counterpart hereof, with the same force and effect as if such 

parties had been an original party hereto. 

SECTION 3. EXCHANGE OF INFORMATION 

Each Participating Pension Fund agrees to cooperate in the exchange of relevant information 

and shall comply promptly with a reasonable written or ERTS transmitted. electronic request 

of the Reciprocal Clearinghouse for information or data necessary to carry out this 

Agreement. Each Participating Fund shall collect and receive the employer contributions due 

for the work of its Temporary Employees and shall keep separate accounts of the collections. 

Each Participating Fund shall keep the Reciprocal Clearinghouse advised of its current 

contribution rate and supply it with a current copy of the Participating Pension Fund's 

Summary Plan Description, Employer Identification Number, and Plan Number. Each 

Participating Pension Fund shall place notice of its participation in this Agreement in its 

Swnmary Plan Description and provide reciprocal authorization forms to local unions, 

Temporary and Permanent Employees as soon as practical after becoming signatory to the 

Agreement or when legally required. 

SECTION 4. ACTIONS NECESSARY TO IMPLEMENT AGREEMENT 

The Trustees of each Participating Fund agree to take all actions, including amendments to 

plan documents and the establishment of new practices or procedures, as are necessary to 

fully implement this Agreement, including the utilization of ER'fS. 

SECTION 5. ADDITIONAL PARTIES TO THE AGREEMENT 

Any additional parties desiring to become signatory to this agreement shall so state by 

Certified Mail to the Reciprocal Clearinghouse. Such statement shall include a copy of the 

signed Reciprocity Agreement or statement of willingness to participate and shall be properly 

adopted by the Trustees of the Fund or a duly authorized representative. The effective date 

for any additional parties becoming signatory to this agreement shall be the first day of the 

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month following the date of the signing of the agreement by the new party and receipt of the 

signed agreement by the Reciprocal Clearinghouse. 

With the approval of the International Union of Bricklayers and Allied Craftworkers, this 

Reciprocal Agreement may also be entered into by Trustees of a Pension Fund which 

provides retirement and pension benefits for employees not represented for the purpose of 

collective bargaining by Local Unions affiliated with the International Union of Bricklayers 

and Allied Craftworkers. 

SECTION 6. ELECTRONIC RECIPROCAL TRANSFER SYSTEM 

In order to enhance ease of use, help facilitate the timely transfers of Monies and achieve 

administrative cost savings, the reciprocal arrangement established through this Agreement 

shall utilize an electronic sybiem or medium to process reciprocity related infonnation. That 

system shall be known as the Electronic Reciprocal Transfer System (ERTS). Through 

ERTS, Participating Funds. the Reciprocal Clearinghouse. Assisting Local Unjons, and both 

Permanent and Temporary Employees who are properly registered can access a secw·e 

Website limited and dedicated to the above listed users. Using personal computers or other 

appropriate devices, these users can access ERTS to enter and exchange information and data 

relevant to the operation of the Agreement. As to the method or medium for the actual 

transfers of Monies between two Participating Funds~ ERTS will not be utilized; however, 

the ERTS shall be designed and maintained to help facilitate a decision by two Participating 

Funds to use an automated clearinghouse to electronically transfer Monies. 

SECTION 7. ERTS SERVICE PROVIDER AND CONTRACT 

In orde-·r to achieve the uniformity of operation vital to the functionality of ERTS, each 

Participating Fund recognizes that a single, system-wide service provider is required, which 

shall design, create, implement. and maintain ER'fS. To obtain this necessary uniformity, 

each Participating Fund signatory to the Agreement shall also review and agree to a standard 

service contract with the single ERTS service provider which maintains ERTS (the "ERTS 

Service Provider Contract''). A copy of the ERTS Service Provider Contract shaU be sent to 

the Reciprocal Clearinghouse. Execution of the ERTS Service Provider Contract shall be 

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required for those Participating Funds who wish to continue participation in the Agreement 

on and after October 1, 2004, or who wish to utilize ERTS at an earlier date once it is 

available. ERTS will be needed to receive and transfer all Reciprocity fi·om January l, 2005 

f<wward. 

SECTION 8. FUNCTIONS OF THE RECIPROCAL CLEARINGHOUSE 

The Reciprocal Clearinghouse shaH receive and file from Participating Funds signed 

Agreements. copies of signed ERTS Service Provider Contracts, and required notifications of 

termination. The Reciprocal Clearinghouse shall prepare and circulate in written format 

proposed amendments to the Agreement, maintain on ERTS a "listing" of current 

Participating Funds and cunent contribution rates, and assist Participating Funds in whatever 

manner possible consistent with and appropdate under this Agreement. 

lt is expressly unden.iood and agreed that the Reciprocal Clearinghouse will serve as a 

facilitator and clearinghouse for exchange of information and approved forms, but that 

ne.itber the Reciprocal Clearinghouse nor the Reciprocal Administrator shall have any 

discretionary authority, control o1· responsibility over (i) the management, administration, or 

assets of any Participating Fund~ or (ii) the administration of the Agreement by any 

Participating Ftu1d. 

Consistent with this express limitation, the Reciprocal Clearinghouse shall also serve as a 

facilitator and clearinghouse for ERTS, including, (1) helping to educate the service provider 

about the Participating Funds, the masonry construction industry, and the Agreement and 

operations relating thereto; and (2) helping to educate and inf01m Participating Funds, 

Assisting Local U11ions, and Employees regarding the use and/or applications ofERTS. 

SECTION 9. CONFIDENTJALfl'Y OF EMPLOYEE INFOllMATION 

AU non-Employee users ofERTS (Home Funds, Participating Funds, Assisting Local 

Unions, the Reciprocal Clearinghouse~ and their employees~ officers or agents) shall be 

obligated to maintain the confidentiality of infom1ation derived from ERTS concerning any 

Employee (such as name, address, Social Security or Social Insurance Number, an 

Employee's own ERTS related personal identification number, information submitted witJ1 

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reciprocal transfers pursuant to Section 15 below, etc.), except to the extent such information 

is utilized in fut1herance of the operation of the Agreement and as consistent with applicable 

law. The ERTS service provider shaH likewise be obligated (as more specifically set forth in 

the ERTS Service Provider Contract) to maintain the confidentiality of such infonnation. 

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II. OPERATION OF RECIPROCAL AGREEMENT 

SECOON 10. USERS ACCESS TO ERTS: REGISTRATION 

Users shall acquire access to ERTS in the following manner: 

Employee Users. Employee users must follow the procedures, and must agree to the 

terms and conditions, set forth in Section 1 J • below; and 

Non-Employee Users. Non-Employee users (employees, officers or agents of Home 

Funds, Participating Funds, The Reciprocal Clearinghouse, and 1\.ssistjng Local Unions) 

must follow the procedures, and must agree to the terms and condWons, set forth herein, 

whereby each such user: 

Must register on ERTS wHh the ERTS service provider; and 

Must agree in writing through an approved, written confirmation (the "NonEmployee User ERTS Confirmation") to properly maintain the confidentiality of 

information concerning an Employee. The original signed Non-Employee Users 

ERTS Confirmation shall be filed with the ERTS service provider. 

Upon registration and execution of the Non-Employee User ERTS Confirmation, each 

such user shall be issued his own confidential identification number (the "PIN"). 

Thereafter, access to ERTS shall be available on a personal computer or other appropriate 

device with an internet connection by use of a Log-On Number (the user's Social 

Security Number or. if Canadian, his Social Insurance Number) and the PIN. The PIN 

shall be available to the Reciprocal Administrative Office and the ERTS service provider. 

to be used consistent with the confidentiality provisions of Sect1on 9 above. 

SECTION 11. HOW AN EMPLOYEE ELECTS RECIPROCITY 

To be eligible for reciprocal transfers under this Agreement, an Employee: 

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Must register on ERTS at his Home Ftmd, a Participating Fund, or an Assisting Local 

Union after presentation of valid photo identification~ and 

Must agree i11 wtiting through a written confirmation, as specified below and 

electro11ically (via ERTS) to: (i) the legally binding effect of his utiliza.tion of an 

electronic signatme on ERTS; and (U) an approved authorization and release (the 

"Authorization and Release") regarding reciprocal transfers under the Agreement. 

The approved Authotization and Release shall contaiu an authorization whereby the 

Employee elects to participate in the reciprocal system as well as a release (waiver) by the 

Employee, releasing all participating Funds and their trustees from any claim or claims by 

the Employee, or anyone making a claim through him, based upon the Contributions made 

after the effective date of the Authorization and Release. The approved Authorization and 

Release shall also contain an express consent to the dissemination of i.nfom1ation concerni11g 

the Emp.loyee. such as name, address, Social Security or Social Insurance Number, 

information submitted with reciprocal transfers pursuant to Section 15 below~ etc. (but not 

including an Employee's ERTS related personal identification number), to, and only to, 

authorized users of ERTS. The approved Authorization and Release shall also specify that it 

is a blanket authorization and release which wnt provide for the reciprocal transfers of 

Monies to his properly (that is, with Home Fund(s) acceptance) designated Home Fund(s) 

from any and aJl Pa1ticipating Fund(s) in whose area the Employee is, or may in the future 

be, working as a Temporary Employee, unless and until the Employee thereafter utilized 

ERTS to expressly cease the transfers of Monies. 

At the time of registration, the Employee shall receive a printed confirmation of his agreeing 

to the effect of his electronic signature and to the Authorization and Release (as outlined 

above in subsection (a)(2)), which be must personally sign (the "Employee Confirmation"). 

The original signed Employee Confim1ation shall be filed at the Home Fund, the 

Participating Fund, or the Assisting Local Union where the Employee registers. The 

Employee shall be given a copy of his signed Employee Confirmation. 

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Upon registration on ERTS. the Employee shall be issued a confidential, personal 

identification number (the "employee PIN"). Thereafter, he shall be entitled to access ERTS 

on any personal computer or other appropriate device with an internet connection, by use of a 

Log-on Nwnber Olis Social Security Number or if Canadian, his Social Insurance Number) 

and his Employee PIN. The Employee PIN shall be available to the Reciprocal 

Administrative Office and the ERTS service provider, to be used consistent with the 

confidentiality provisions of Section 9 above. 

SECTION 12. EFFECT OF ELECTION ON PARTICIPATING FUND 

As of the first day of the month in which an Employee registers on ERTS, signs the 

Employee Confirmation, and designates his Home Fund(s) (if the Home Fund(s) later accepts 

that designation), and anytime thereafter, the Participating Fund shaH keep a separate accm.mt 

of collections of Employee Contributions due for the work of the Temporary Employee and 

transfer to the Temporary Employee's Home Ftmd an amount of money as prescribed under 

Section 13 on behalf of the Temporary Employee for work performed from the first day of 

the month in which the signed authorization form is received by either the administrator of 

the Participating Fund or by a person designated by the Participating Fund to receive such 

authorization forms. An earlier effective date for the transfer of Monies may be established 

by the Trustees of a Participating Fund. 

SECTION 13. AMOUNT TRANSFERRED TO HOME FUND 

Each Participating Pension Fund shall transfer required contributions to the Temporary 

Employee's Home Fund as soon as feasible within a period of thirty (30) days following 

receipt of the request for transfer. Subsequent transfers of money to the Home Fund shall be 

made on at least a monthly basis or more often if mutually agreed to by the parties to this 

Agreement. 

It is understood by the parties to this Agreement that the Participating Pension Fund shall 

remit to the Home Fund an ammmt of money equal to aU contributions received based on 

hours paid and reported to the Participating Fund. 

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There shall be no administrative fee charged by a Participating Fund for the transfer or for 

any other reason. 

SECTION 14. IDENTIFICATION OF HOME FUND TO RECEIVE TRANSFERS 

If the Temporary Employee has two Home Funds, a defined benefit fund and a defmed 

contribution fund, the Participating Fund shall transfer all Monies to whichever Home Fund 

is the same type as the Participating Fund (defined benefit to defined benefit - defined 

contlibution to defined contribution). However the Home Fund has the discretion to allocate 

defined contribution Monies to a defined benefit fund. 

If the Temporary Employee has only one Home Fund, the Participating Fund or Funds shall 

transfer all Monies to that Fund. If the Home Fund has only a defined benefit fund and the 

Participating Fund has both a defined benefit fund and a defined contribution fund, the 

Temporary Employee may elect to transfer only Monies from the Participating Fund's 

defined benefit fund to the Home Fund. 

All Local Monies for Canadian Temporary Employees working m the U.S. shall be 

transferred to the IPF Defined Contribution Plan. 

SECTION 15. INFORMATION SUBMITTED WITH TRANSFERS 

Each Participating Pension Fund shall, at the time of making the monthly transfer, submit to 

the Home Fund via ERTS a report which shall include the following information for each 

Temporary Employee: 

(a) Name 

(b) Social Security Number 

(c) Work month reported 

(d) Number ofbours contributed for in the month 

(e) Employer name 

(f) Total Monies being transferred 

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SECTION 16. EFFECT OF TRANSFERS ON PBGC PREMTIJM 

For purposes of the Pension Benefit Guaranty Corporation (PBGC), the Temporary 

Employee shall not be considered a participant in the Participating Fund if Monies are 

transferred to the Temporary Employee's Home Fund. 

SECTION 17. HOW TEMPORARY EMPLOYEE STOPS TRANSFERS 

Once an Employee is registered on ERTS, he may thereafter modify his registration or 

request a temporary or permanent cessation of reciprocal transfers by accessing ERTS 

through either his Log-on Number and Employee PIN or by appearing at his Home Fund, any 

Participating Fund or any Assisting Local Union. A temporary cessation stops transfers only 

while a Temporary Employee is working in the area of the specific Participating Fund(s) 

where he was working when he requested the temporary cessation. A pefmanent cessation 

stops all current and future or all future transfers permanently to any Home Fund(s) after an 

Employee has used ERTS to remove the Home Fund(s) designation(s). Any such temporary 

or pem1anent cessation in the transfer of Monies shall become effective on the last day of the 

month the request for cessation is inputted on ERTS. A permanent cessation shall remain in 

effect untH an Employee thereafter has modified his registration by properly designating a 

new Home Fund(s). However, an Employee who requests a temporary or permanent 

cessation(s) shall not be eligible to restart transfers or designate a new Home Fund(s) and 

have Monies transferred so long as he works in the area of the same Participating Fund(s) 

where he was working when he requested a temporary or permanent cessation. 

If an Employee's file is accessed on ERTS without the use of that particular Employee's 

Log-On Number and Employee PIN, any modification and/or cessation as outlined in 

~ubsection (a) above shall be valid only .if an approved Employee confumation of such action 

(an '"Employee Confumation of Modification and/or Cessation") is printed and signed by the 

Employee after presentation of valid photo identification and is tiled at the Home Fund, 

Participating Fund or Assisting Local Union where such access occurs. The Employee shall 

be given a copy of his signed Employee Confirmation of Modification and/or Cessation. 

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SECTION 18. WHEN RECIPROCITY IS NOT IN EFFECT 

If a Participating Pension Fund receives Contributions with respect to a Temporary 

Employee's employment, reciprocity is not in effect and the Contributions thus received shall 

be applied in accordance with the Participating Fund's provisions, if: 

(a) The Temporary Employee bas not registered on ERTS. has not agreed to the 

Authorization and Release or ha~ not executed and had filed an Employee 

Confumation (all as provided in Section I 1 ); 

(b) No Home Fund, as defined in Section 1 (d), has been established by the 

Temporary Employee or if established, it is not a party under this Agreement, 

or 

(c) The Temporary Employee is eligible and has completed the necessary 

enrollment forms for benefits in the Participating Pension Fund. 

(d) Transfer of defined contribution fund Monies will create a violation of Section 

415(c) ofthe IRC. 

(e) A cessation under Section 17 is in effect. 

SECTION l9. TREATMENT OF MONIES RECENED BY HOME FUND 

All Monies forwarded pursuant to this Agreement to the Trustees of the Home Fund of a 

Temporary Employee shall be treated as the equivalent of Contributions to that Home Fund 

and shall be applied in accordance with said Home Fund's provisions. Neither the 

Participating FW1d nor its Trustees forwarding Monies to the Home Fund shall have any 

responsibility for the application of the Monies by the Home Fund. 

SECTION 20. CREDITING SERVICE IN HOME FUND 

The manner of crediting Monies and hours received by a Home Fund on behalf of its 

participants temporarily employed elsewhere shall be as follows: 

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Vesting Service - All hours worked in any Participating Fund for which Monies are 

transferred pursuant to this Agreement shall be counted as vesting service by the Home Fund 

on an hour-for~hour basis, as required by ERISA. However, ifthe same hours are reported by 

more than one Participating Fund, the Home Fund shall not be required to credit such hours 

more than once. A year of vesting service shall be whatever each plan decides, so long as it 

meets the requirements of ERISA. 

Benefit Accrual ~ All hours worked in any Participating Fund for which Monies are 

transferred pursuant to this Agreement shall be counted for benefit accrual purposes by the 

Home Fund on an equitable basis, considering the relationship between the Participating 

Fund and the contribution rate in the Home Fund. For example, the benefit accrual rate for 

each hour for which Monies are transferred shall be prop01tional to the Home Fund's regular 

benefit accrual rate based on the relationship between the Home Fund contribution rate and 

the contribution rate received from the Participating Fund. Where benefit accrual is not 

based on hours but on the amount of contributions received on a participant's behalf, all 

Monies transferred shalJ be credited to his account for benefit accrual purposes. 

SECTION 21. COORDINATION WITH THE INTERNATIONAL PENSION FUND CIPF) 

A. If the Home Fund is only the Bricklayers and Trowel Trades International Pension Fund 

(IPF), the Participating Fund shall transfer to the IPF an amount of money equal to all 

Contributions received. Any amount in excess of the Home Fund IPF defined benefit 

Plan rate shall be applied to the IPF defined contribution plan. 

B. If the Home Fund participates in both the IPF and maintains a local defined benefit 

and/or defined contribution plan, the Participating Fund shall transfer to the Home Fund 

an amount equal to all local defined benefit or defined contributions required under the 

Home Fund, or if less, the amount of local contributions received by the Participating 

Fund. Subsequently, the Home Fund shall credit the transferred contributions m 

proportion to the defined benefit and/or defined contribution funds of the Home Fund. 

C. If the Home Fund does not participate in the IPF and the Participating Fund does, the 

Participating Fund shall transfer to the Home Fund an amount equal to all local 

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contributions received. Subsequently, the Home Fund shall credit the transferred 

contributions in proportion to the defined benefit and/or defined contribution funds of the 

Home Fund. 

D. If the Participating Fund does not participate in the IPF, the Participating Fund shall 

transfer to the Home Fund an amount of money equal to all local contributions received. 

Subsequently, the Home Fund shall credit the transferred contributions in proportion to 

the defined benefit and/or defined contribution funds of the Home Fund 

E. If the Participating Fund participates in the IPF and the Home Fund maintains a local 

defined benefit and/or defined contribution plan, the Participating Fund shall transfer to 

the Home Fund an amount of money equal to all local contributions received. 

Subsequently the Home Fund shall credit the transferred contributions in proportion to 

the defined benefit and/or defined contribution funds of the Home Fund. 

F. Except as provided in section G below, if both the Participating Fund and the Home Fund 

participate in the IPF, no IPF monies will be transferred between the Participating and 

Home Funds. Monies will be remitted at the effective contribution rate of the jurisdiction 

of the Participating Fund to the IPF. Contributions received by the IPF will be credited in 

accordance with the IPF Home Local Rule. 

G. If the Participating Fund provides a local defined benefit or defmed contribution plan 

through a merger with the IPF, the amount of the Participating Fund contribution rate 

immediately prior to the effective date of the IPF merger shall be transferred by the IPF 

to the Home Fund. 

H. If the Home Fund provides a local defined benefit or defmed contribution plan through a 

merger with the IPF, the Participating Fund shall transfer an amount equal to all local 

funds received. Amount<> in excess of the IPF defined benefit amount shall be credited to 

the IPF defined contribution plan. 

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III. LIMITS OF LIABILITY AND RESPONSIBILITY 

SECTION 22. LIABILITY FOR CONTRIBUTIONS 

No party shall be liable to any other party for any sum whatsoever except to the extent 

Contributions made on Temporary Employees are) in fact, collected and received. All 

Participating Pension Funds shall make every reasonable effort to collect all Contributions 

due, as required by ERISA. The Trustees of each Participating Fund agree to cause 

investigation to be made upon request of the Trustees of any other Participating Fund to 

determine whether Contributions as required have been made on behalf of Temporary 

Employees. However, a Temporary Employee's Home Fund shall have no responsibility to 

take any action to enforce the terms of any collective bargaining agreement requiring 

Contributions to another Participating Pension Fund. 

SECTION 23. EMPLOYER LIMITATION 

No employer shall be considered a contributing employer in any Participating Fund or Funds 

other than the Fund or Funds to which he is bound to contribute pursuant to the terms of an 

agreement which he has signed or assented to. 

SECTION 24. WAIVER OF LIABILITY 

It is expressly understood and agreed that none of the signatory Funds assumes any of the 

liabilities or obligations of the other signatory Funds. Each signatory Fund shall be liable 

solely and exclusively for pension benefits due under its own plan and no Fund shall be liable 

for the acts or omissions of another Fund. It is expres..<tly understood and agreed that none of 

the Assisting Local Unions assumes any of the Jiabilities or obligations of the Participating 

Funds. 

SECTION 25. NO INTERNATIONAL UNION. RECIPROCAL CLEARJNGHOUSE. 

RECJPROCAl_. ADMlNJ.STRATOR. OR ASSISTING LOCAL UNION LIABILITY; 

LIABiLITY OF THE ERTS SERVICE PROVIDER 

None of the BAC (its officers, employees or agents, including the Reciprocal Clearinghouse 

and the Reciprocal Administrator), any Assisting Local Union (its officers, employees or 

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agents), or shall in any way be responsible or liable for the payment of benefits, the transfer 

of Monies, the accuracy or completeness of written rep011s or any data contained on ERTS, 

or any acts and omissions of any ParticipatiJ1g Fund (its trustees~ employees or agents). 

Further, none of the BAC (its officers, employees or agents, including the Reciprocal 

Clearinghouse and Reciprocal Administrator), or any Assisting Local Union (its officers, 

employees or agents), shaJJ have any financial or Legal liability with regard to transactions 

between Participating Funds pursuant to this Agreement or with regard to the administration 

of the Agreement. Liability issues relating to the ERTS service provider shall be governed 

by the ERTS Service Provider Contract entered into by the service provider and a 

Participating Fund. 

SECTION 26. ACCEPTANCE OF WRITTEN DOCUMENTS 

The Trustees of each signatory Fund sha11 be fully protected in acting upon any instrument, 

certificate, report or paper, in writing or on ERTS believed by them to be genuine; and the 

Trustees of each signatory Fund shall be under no duty to make any investigation or inquiry 

as to any statement in any such writing or as to the authority of the person making such 

statement but may accept the same as conclusive evidence of the accuracy of the statement 

contained therein and the authority to make it. 

- 18-
IV. OTHER PROVISIONS 

SECTION 27. EFFECT ON OTHER RECIPROCAL AGREEMENTS 

This Agreement shall supersede any existing or future reciprocal agreement in effect between 

two or more Participating Funds requiring transfers of money to a Home Fund. Not 

withstanding the foregoing, any reciprocal agreement that has been created to enable 

cooperation between the separate Participating Tntst Funds operating in the jurisdiction of a 

single merged BAC local union or single BAC Administrative District Council shall remain 

unaltered by this agreement. 

SECTION 28. AMENDMENT PROCEDURES 

This Agreement may be modified or amended at any time by the written approval of a 

proposed amendment or modification by a simple majority of all voting Participating Pension 

Funds. The Reciprocal Clearinghouse shall prepare and circulate proposed amendments, 

tabulate all votes on amendments, and report the results to the Participating Funds. 

SECTION 29. PLAN TERMINATION OR LOSS OF TAX-EXEMPT STATUS 

In the event a Participating Pension Fund shall terminate its Pension Plan or lose its taxexempt status, its participation in this Agreement shall automatically terminate. It shall be the 

responsibility of that Fund to notify the Reciprocal Clearinghouse of said termination or loss 

of tax-exempt status. Notice in writing by Certified Mail shall be given prior to or 

immediately following the date of either occurrence. 

SECTION 30. TERMINATION OF RECIPROCAL AGREEMENT 

Any Participating Fund may terminate its participation in this Agreement by giving written 

notice by Certified Mail to the Reciprocal Clearinghouse if the notice is received at least one 

hundred and eighty (180) days prior to the end of any calendar year. In such event, 

termination shall become effective with respect to Contributions attributable to work 

performed in the next succeeding calendar year~ but transfers shall be received or made by 

said Participating Fund in accordance with this Agreement with respect to Contributions 

attributable to work performed in the calendar year during which such notice of termination 

- 19-
IS given. Termination shall also occur (except as provided in Section 35), for any 

Participating Fund which has not executed the ERTS Service Provider Contract prior to 

January I, 2005 or has terminated that Contract pursuant to its terms. 

SECTION 31. RESOLUTION OF DISPUTES 

Any dispute, disagreement or question between the Participating Funds arising out of this 

Agreement shall first be referred to the Reciprocal Clearinghouse and notice shall be given to 

any other parties to the dispute. The Participating Fund giving such notices must mail the 

notice within 180 days of the cause of the dispute, disagreement or question arising out of the 

Agreement. For any notice mailed after this 180-day petiod, the Participating Fund must 

demonstrate that it exercised reasonable diligence in discovering the dispute, disagreement or 

question arising out of this Agreement. Any other notice mailed after this 1 80-day period 

shall be untimely and not covered by this Agreement. If the dispute is not satisfactorily 

resolved within sixty (60) days from the time notice thereof shall have been given to all 

parties, it may be submitted to an arbitrator if requested in writing by either Participating 

Fund to the IMl Disputes Settlement Plan for binding determination. The decision of the IMI 

dispute resolution process and any award shall be final, binding, and conclusive upon the 

parties to the dispute and it may be enforced in any court of competent jurisdiction. 

Rules concerning procedures for the resolution of disputes under this section including 

arbitration shall be promulgated by the Reciprocal Clearinghouse. 

Any notice given pursuant to this section must be mailed to the regular post office address of 

the Participating Fund to which it is sent by Certified Mail, Return Receipt Requested, and a 

copy sent to the Reciprocal Clearinghouse. 

SECTION 32. SEPARABILITY 

In the event that any of the provisions of this Agreement shall be adjudicated invalid or 

unenforceable, such adjudication shall not affect or impair the validity of the other and 

remaining provisions of this Agreement, and such other remaining provisions of this 

Agreement, which shall remain in full force and effect. 

-20 -
SECTION 33. APPLICABLE LAW 

This Agreement shall be construed and enforced according to Federal law, and where not 

preempted by Federal law, the laws of the District of Columbia. 

SECTION 34. RIGHTS RESERVED BY PARTICIPATING PENSION PLANS 

Anything herein to the contrary notwithstanding, no person other than the Funds which are 

parties hereto shall have any right, title or interest under or in this Agreement, or shall have 

any right to bring action or proceeding against any party hereto, or shalJ be deemed to be a 

third-party beneficiary hereto. 

SECTION 35. ERTS RELATED AMENDMENTS: EFFECTIVE DATES AND 

TRANSITION RULES 

For the year 2003 amendments, including those relating to the conversion from a paper based 

system to ERTS (the "ERTS Conversion Amendments"), the foUowing effective dates and 

transition rules shall apply: 

(a) ERTS Start Date. The ERTS Conversion Amendments shall first become 

effective as of October 1, 2004, if a si.tnplc majority of the Participating funds (as tabulated 

by 1he Reciprocal Clearinghouse) have voted favor of such amendments on or before August 

15, 2004; otherwise, the ERTS Conversion Amendments shall first become effective two (2) 

weeks after a favorable simple majority vote shall have occurred and have been announced 

by the Reciprocal CJearinghouse. 

(b) Year 2000 Agreement Continues. The BAC Pension Reciprocal Agreement, as 

last amended in the Year 2000 (the "Prior Reciprocal Agreement"), and the paper based 

system for processing information and forms thereunder shall also remain in. effect, as 

provided in subsection (c) below, through September 30, 2004. 

(c) Transition Rule.s. From October 1, 2004 (or if applicable, the later date 

referenced in subsection (a) above) through December 31, 2004 (the ·'Transitjon Period''), the 

Prior Reciprocal Agreement shall continue to apply to any participating Funds and its 

transfers of reciprocal Monies (1) for those Temporary Employees who have not registered 

- 21 -
on ERTS, or (2) for those Temporary Employees whose Home Fund has not started to 

operate under ERTS (by having not adopted the ERTS Service Provider Contract) or who is 

working in the area of a Participating Fund which has not started to operate under ERTS (by 

having not adopted the ERTS Service Provider Contract); provided however, that the 

operation of the Prior Reciprocal Agreement under (1) and (2) above during the Transition 

Period shall not apply after the last day of he month in which such Temporary Employee has 

registered on ERTS and both his Horne Fund and the Participating Fund in whose area he is 

working are operating under ERTS (by both having executed the ERTS Service Provider 

Contract); and 

ERTS Exclusive (Exceptions). On or after January 1, 2005, the Agreement shall 

operate exclusively through ERTS, except that: (1) any Temporary Employee who has not 

registered on ERTS prior to October 1, 2004, shall continue to be covered by the Prior 

Reciprocal Agreement until the earlier of: (i) his ceasing to work in employment in the area 

covered by the participating Fund where he had filed an Authorization and Release under the 

Prior Reciprocal Agreement and where reciprocal transfers thereunder were being made as of 

October 1, 2004, (ii) his execution of a "Request for Cessation of Transfers" form as 

provided under the Prior Reciprocal Agreement, or (iii) his registration on ERTS; and (2) any 

Participating Fund which has not signed the ERTS Service provider Contract as of October 1, 

2004, shall continue to be covered by the Prior Reciprocal Agreement if there is, but only so 

long as there is, any Temporary Employee still covered by the Prior Reciprocal Agreement 

on or after October 1, 2004, as specified in subsection (1) above, working in the area of that 

Participating Fund. 

-22-
V. SIGNATUREPAGE 

IN WITNESS WHEREOF, the defined benefit or defined contribution pension fund identified below by the 

signatures of the undersigned Trustees, hereby adopts this Reciprocity Agreement, The International Reciprocal 

Agreement for Bricklayers and Allied Craftworkers Defined Contribution and Defined Benefit Pension Plans, 

and agrees to be bound by its terms and provisions. It is understood that each Fund becoming signatory hereto is 

entering into this Agreement with each other Participating Fund. The undersigned Trustees hereby represent and 

warrant that they have the authority under their trust agreement to sign, execute, and implement this Agreement 

and are doing so pursuant to a binding vote of the Trustees. 

NAME OF FUND: 

EIN & PLAN NUMBER: 

TYPE OF PLAN: 

BY UNION TRUSTEES 

DATE: 

Administrator Name: 

Administrator Email: 

Administrator Address 

Current 

Contribution Rate: 

Local 

Union(s) Covered: 

Return To: 

(Defined Benefit or Deftned Contribution) 

BY EMPLOYER TRUSTEES 

Phone: 

Fax: 

Effective Date of Rate: 

Craft Jurisdiction: 

Reciprocal Clearinghouse 

International Union of Bricklayers and AUied Craftworkers 

1776 Eye Street, N.W., Suite 750 

Washington, DC 20006 

-23-
VI. A BRIEF OVERVIEW AND EXPLANATION 

OF THE INTERNATIONAL RECIPROCAL AGREEMENT OF THE 

INTERNATIONAL UNION OF BRICKLAYERS AND ALLIED CRAFTWORKERS 

The BAC Pension Reciprocal Agreement is an open-ended agreement. Each pension or 

rumuity fund participates from the first day of the month following the month in which it 

signs the agreement with each other fund which has previously signed. The agreement is 

available to both defined benefit (pension) and defmed contribution (annuity) plans. The 

agreement is a "money-follows-the-member" arrangement where an amount of money equal 

to ALL contributions received by a participating fund on behalf of a traveling employee is 

transferred to the employees home fund. There is no administrative charge allowed under the 

agreement. 

The agreement is activated for a traveling employee from the first day of the month in which 

he registers with the Electronic Reciprocal Transfer System (ERTS). A participating fund 

then transfers an amount of money equal to all contTibutions received on the employee's 

behalf on a monthly basis. Money is transferred for future service only, and the agreement 

contains no provision covering past service for periods when the agreement was not in effect. 

The employee's home fund is generally the fund operating within the jurisdiction of the BAC 

local union to which the employee belongs. However, if the employee is not a BAC member 

or he is a BAC member but his local union does not have a pension fund or he is not a 

participant or does not have credited service in his home local union pension fund, then he 

may choose another participating pension fund in which he is currently a participant or has 

credited service as his home fund. It should be noted that, if the employee's home fund is the 

pension fund covering his home local union and that fund does not participate in the 

reciprocal agreement, the employee is not eligible for transfers pursuant to the reciprocal 

agreement. 

When an employee's home fund receives transfers pursuant to the reciprocal agreement, it 

accepts the money and hours; and it credits them pursuant to its rules. Hours for vesting 

purposes will be credited on an hour-for-hour basis, and credit for benefit accrual will be 

done on an equitable basis, considering the relationship of the contribution rates between the 

home fund and the transferring fund. 

BAC will serve as the Reciprocal Clearinghouse for the agreement and perform functions 

similar to those under the Welfare Reciprocal Agreement at no cost. These responsibilities 

include receiving signed agreements, processing amendments, preparing and distributing 

forms, working with the ERTS service provider to develop and maintain ERTS .• maintaining 

a list of participating trust funds, and supplying information to the participating funds and 

local unions through the ERTS. BAC does not handle any money and will not interfere with 

or assume any of the responsibilities of the trustees of participating funds. 

-24-
Vll. QUESTIONS AND ANSWERS OUTLINING THE 

BAC PENSION RECIPROCAL AGREEMENT 

1. What type of agreement- money-follows-the-member or pro-rata or a combination? 

A. The agreement is a money-follows-the-member type. Due to the number of 

plans which will participate, a pro-rata agreement would be difficult to 

administer by local union funds. 

2. What type of pension funds can participate - defined benefit or defmed contribution and 

defined benefit? 

A. Defined benefit plans (pension plans) and defined contributions plans (annuity 

plans) can both participate and are participating funds when they have signed 

the agreement. 

3. Is the agreement open-ended or are individual agreements from fund to fund required? 

A. The agreement is an open-ended agreement, with each fund participating from 

the first of the month following the month in which it signs the agreement 

with each other fund signatory to the agreement. 

4. How is an employee•s home fund defined if he is a member of a BAC local union or if he 

is a non-member? 

A. The employee's home fund is the participating pension fund or funds 

operating within the jurisdiction of the BAC local union of which the 

employee is a member if he is a participant or has credited service in the fund. 

If the employee (a) is not a BAC member, (b) is a BAC member but his local 

union does not participate in a fund, or (c) is a BAC member and he is not a 

participant or does not have credited service in his local union fund, then he 

may choose another participating fund in which he currently is a participant or 

has credited service as his home fund. 

-25-
Note: This de:finhion excludes employees who are members of BAC local unions 

and who are pruticipants or have credited service in the pension fund covering 

their local union from participating in the reciprocity Agreement if the fund 

does not participate. 

5. How is the agreement activated for a traveling employee, and how is the home fund 

identified? 

A. To activate the agreement, a Temporary Employee must fust register on tbe 

Electronic Reciprocal Transfer System "ERTS". During this registration 

process the employee should indicate his/her choice of home fund or funds, as 

outlined in question #4. Once the registration process has been completed and the 

employees designated home fund or 1\mds have accepted home fund designation a 

"Blanket Authorization Form'' will be placed on file on ERTS and must be 

accepted and used by all participating funds as the employee's choice of home 

fund or funds. Transfers of monies will be effective from the first day of the 

month in which the employee has registered on ERTS and designated his/her 

home f1.md choice or choices. 

Note: Temporary Employees must remember that when they have created a "Blanket 

Authorization Form" on ERTS that it will always be in effect wllen they travel until 

modifLcd or cancelled by them. 

6. How will a participating fund know which fund or funds a Temporary Employee wants 

his/her money reciprocated to? 

A. When money is received at a pwticipating fund on behalf of a Temporary 

Employee, the fund will determine whether the employee has a Blanket 

Authorizatjon Form on fLle with ERTS and transfer all the employees' 

contributions on ERTS. For purposes of the Pension Benefit Guaranty 

Corporation, the Temporary Emplovee will not be considered a pmticipant in 

the participating fund sending money ifhe/sl1e registers on ERTS and creates 

a "Binnket Authodzation Form.'' 

-26 -
7. Can a traveling employee stop transfers to his home fund once they have regi~iered their 

"Blanket Authorization'' on ERTS? 

A. A traveling employee may stop transfers by togging on to ERTS and 

processing the appropriate Cessation Fotm or modifying their registration ftle. 

He/she will not be allowed to select another fund for transfers while 

continuing to work in the participating fund's jurisdiction where employed at 

the time of filing a cessation form or modifying their home fund or funds 

selections. 

8. How often is money transferred- monthly or at the end of the year? 

A. Transfers will take place monthly, with transfers due as soon as practical 

following the end of the month for which contributions are earned and 

received. Remittance forms will be submitted from fund to fund over ERTS 

indicatil1g the employee's nmne, employer, Social Security number and/or 

Social Insurance number (for Canadians), the month in which hours are 

worked, total hours, hourly rate contributed, and total amount of money 

transferred. Funds will simultaneously mail or transmit via an ACH tl1e 

payment to cover the remittance report sent via ERTS. 

9. What rate is to be transferred - must interest be included? 

A. An amount equal to the entire employer contribution received shall be 

transferred to the home fund. Since money is transferred monthly, there will 

be no interest transferred. 

10. Are participating funds allowed to impose an administrative charge? 

A. No. The cost of transferring funds should be no greater than the cost of 

establishing records for a participant or paying the Pension Benefit Guaranty 

Corporation premium, so no charge is warranted. 

11 . What happens if money due to a participating fund is not collected from an employer? 

-27-
A. This agreement requires that the home fund will credit the patticipant for 

hours worked in the participating fund only if contributions are transfen·ed to 

the home fund for those hours. If contributions are not collected and 

transferred to the home fund, the employee will not be credited for thai period 

of work by the home fund. The trustees of a pat1icipating fLmd have a 

fiduciary duty to make every effort to collect money due to the patticipating 

trust fund. Once that money is collected and transferred to the home fund, the 

employee will be credited for that period of work. 

12. How is money to be transferred if there is more than one home fund? 

A. If an employee has two home funds, a defined benefit fund and a defined 

contribution fund, money is transferred from a participating fund to the same 

type of home fund (i.e., defined benefit to defined benefit or defined 

contribution to defmed contribution). However, the Home Fund does have the 

discretion to a11ocate contributions received from a defined contribution fund 

to a defmed benefit fund. If the employee has only one home fund, the money 

from the participating fund or funds is transferred to the single home fund 

regardless of type. If more than one fund includes the International Pension 

Fund (IPF), please see question 20. 

TRANSFER EXAMPLE 

(ALL FUNDS PARTICIPATE IN THE RECIPROCITY AGREEMENT) 

Local Union A Local Union B Local Union C 

I I I I 

Defined Defined Defined Defined 

Benefit Contribution Benefit Contribution 

Plan Plan Plan Plan 

-28-
• If an employee travels from Local Union A to Local Union B and has a Blanket 

Authorization Form on file with ERTS, the defined benefit plan in Local Union B 

transfers funds to the defined benefit plan of Local Union A. 

• If an employee travels from Local Union A to Local Union C and has a Blanket 

Authorization Form on file with ERTS, the defined contribution plan in Local Union C 

transfers funds to the defined contribution plan of Local Union A. 

• If an employee travels from either Local Union B or C to Local Union A and has a 

Blanket Authorization Form on file with ERTS, both plans in Local Union A transfer 

funds to the single plan in Local Union B or Local Union C. 

• If an employee travels from Local Union B to Local Union C and has a Blanket 

Authorization Form on file with ERTS, the defined contribution plan in Local Union C 

transfers funds to the defined benefit plan of Local Union B. 

13. How are hours to be credited for vesting? 

A. All hours worked in any participating fund for which money is transferred 

pursuant to the reciprocal agreement shall be counted for vesting on an 

hour~for~hour basis, as required by ERISA. 

14. How is a year of service for vesting to be defined? 

A. The definition will be whatever each plan decides for itself, so long as it meets 

the requirements of ERISA. 

15. How are hours to be credited for benefit accrual for defined benefit plans? 

A. Service for benefit accrual will be provided by the home fund on an equitable 

basis, considering the relationship between the contribution rate in the 

participating fund and the contribution rate in the home fund . 

For example: 

The benefit accrual rate for each hour for which monies are transferred shall 

be proportional to the home fund's regular benefit accrual rate based on the 

~ 29-
relationship between the home fund contribution rate and the contribution rate 

received from the participating fund. When benefit accrual is not based on 

hours but on the amount of contributions received on a participant's behalf, all 

money transferred sha11 be credited for benefit accrual purposes. 

16. How is a year of service for benefit accrual to be defined? 

A. The definition will be whatever each plan decides for itself, so long as it meets the 

requirements of ERISA. 

17. Does the agreement provide for transferring past service credit? 

A. No. It would be too expensive for some funds and would allow for a shifting 

of liabilities. 

18. Are there any repmting and disclosure requirements for participating funds? 

A. Funds are required to place a notice of participation in the reciprocal 

agreement in their summary plan description as soon as practical after signing 

the agreement. Also, when funds provide annual benefit reports to employee.c:;, 

they are strongly encouraged to advise the employees of money and/or hours 

transferred pursuant to the reciprocal agreement. Notifying employees of 

reciprocal transfers will help to avoid any confusion later on regarding the 

amount of money transferred. 

19. What is BAC's role in the agreement? 

A. BAC will serve without payment as the Reciprocal Clearinghouse and 

perform functions similar to those done in connection with the Welfare 

Reciprocal Agreement. These responsibilities include receiving applications 

for participation, processing amendments, preparing and distributing forms, 

working with the ERTS Service Provider to develop and maintain ERTS. 

maintaining a list of participating trust funds on ERTS, and supplying this 

information to the participating funds and local unions through ERTS. 

- 30-
20. How does reciprocity coordinate with the Bricklayers and Trowel Trades International 

Pension Fund (IPF)? 

A. The IPF is signatory to this reciprocal agreement. There are several situations 

where the IPF is involved. 

D If the Home Fund has no Local defined benefit or defined contribution plan 

and participates in the lPF, the Participating Fund transfers funds to the 

IPF. 

D If the Home Fund participates in the IPF but also bas a defined benefit 

and/or a defined contribution plan, the Participating Fund transfers local 

funds to the Home Fund. 

0 The Participating Fund has transferred $4.00 per hour to the Home Fund. 

The Home Fund's defined benefit contribution rate is $2.00 per hour and 

the Home Fund's IPF contribution rate is $0.50 per hour. The Home Fund 

would then credit $3.20 per hour to the Local defined benefit fund and 

transfer $0.80 per hour to the IPF. 

0 If the Participating Fund participates in the lPF and the Home Fund has 

only a defined benefit or defined contribution plan, the Participating Fund 

shall transfer all local funds to the Home Fund. 

D If both the Participating Fund and the Home Fund participate in the lPF, 

no funds are transferred. Amounts will be credited by the IPF in 

accordance with the home local rule, as defined in the IPF Plan Document. 

This rule provides that the home local (for IPF crediting purposes) is the 

local in which the employee earns three or more years of Future Service 

Credit (4,500 hours), except that (a) if an employee has three or more 

years in two different locals, the home local will be the one having the 

highest contribution rate to the IPF, and (b) if an employee has not earned 

- 31 -
tluee or more years in any one local, his home local shall be the one in 

which he has earned the greatest munber of hours. 

0 If the Participating Fund provides a local defmed benefit or defined 

contribution plan through a merger with the IPF, the amount of the 

Participating Fund contribution rate immediately prior to the effective date 

of the IPF merger shall be transferred by the IFF to the Home Fund. 

21. What happens to the pro-rata benefits earned by employees prior to the date this 

agreement is effective? 

A. The benefits payable under pro-rata arrangements in effect prior to the 

effective date of this agreement shall not be affected by this agreement and 

will be maintained according to those prior arrangements. 

22. What happens if an employee signs the form to begin the transfer of contributions in the 

middle of a month? 

A. The contributions will be reciprocal starting the fust of the month in which all 

papers are received. For example, if an employee signs all papers on January 15, 

all contributions beginning January 1 should be sent to the Home Local. 

23. May employee elective deferrals ( 401 -k type contributions) be transferred under this 

agreement? 

A. No. Only contributions, which, an employer is required to make to a participating 

fund by the terms of a collective bargaining agreement, may be transferred under this 

agreement. 

24. Can Canadian pension ftmds participate in this agreement? 

A. No. Because of the differences in pension laws between the United States and 

Canada, this agreement is only available to pem;ion funds in lhe United States. 

25. What happens to pension benefits of Canadian's working in the United States? 

-32-
A. Any Canadian workjng in the United States may select the Bricklayers and Trowel 

Trades International Retirement Savings Plan (RSP) as their home fund and have all 

contributions sent to the RSP. RSP is a defined contdbution type of pension fund, 

which means that all contribution are held in individual accounL'5 in each individual's 

name. 

- 33-
VIII. TYPICAL OPERATION 

OF THE BAC PENSION RECIPROCAL AGREEMENT 

1. To be able to have money transferred_. a traveling employee must first register 

with the Electronic Reciprocal Transfer System (ERTS). Initial 

registration must be done in person (with photo identification) at an assisting 

Local Union or a participating fund office. As part of this registration> the 

traveling employee should make his/her selection(s) of home fund or funds. 

A confirmation copy of the employee's initial registration must be printed 

out and signed by the employee and shall be maintained by the local union or 

participating ftm.d office where the registration took place. A copy of this 

signed registration confirmation should also be given to the employee. After 

his/her home fund or funds has accepted the employees home fund 

designation(s), a "Blanket Reciprocal Authorization FOJ·m" will be placed 

in his/her file on the ERTS for one or more types of funds (pensi.on, annuity~ 

welfare). This Authorization Form will remain in effect untiJ modified or 

permanently cancelled through the filing of a Cessation Form. After the 

initial registration the employee will receive in the mail to the address he/she 

places on file with ERTS a log-on and password. Using the logon and 

password will allow the employee to modify, or to temporarily or 

pennanently cancel his/her home fund or ftmds designation(s) through tbe 

.filing of a Cessation Form, form any Web connection. 

2. A participating fund or assisting local union at the time of referral for 

employment should ascertain whether the employee desires to have his/her 

pension money reciprocated back to the employee's selected home fimd or 

fw1ds by checking to sec if Lbe employee is registered on ERTS and viewing 

the employee's "Blanket Authorization Form". If the employee is not 

regislered on ERTS and wishes to have thejr money reciprocated back. to 

their home fund or funds, the participating fund or the assisting local Ltnion 

- 34-
official should assist the employee in getting registered on the ERTS as 

outlined in # 1 above. Assisting Union Ofiicials handling the referral 

procedure should be familiar with the Reciprocal Agreement procedures. 

3. After the participating fund or assisting local union official detennines that 

the employee wishes to have his/her money reciprocated and is ah·eady 

registered on ERTS or has assisted them in getting registered on ERTS, the 

person assisting the member should notify the plan administrators of the 

participating fund or funds and the local union that the traveling employee 

has been refetTed to. This notification should also be simultaneously sent to 

the employee's Home Local Union and to his/her designated home ftmd or 

funds. These notifications must be sent via the internal communication ( email) on the ERTS with a copy automatically sent to the Reciprocal 

Clearinghouse. Using the ERTS internal communication an assisting official 

uses the "Control Key" on their computer keyboard to select tl1e appropriate 

Funds and Local Unions and type's i.n the Jist of employees going to work. 

This list should include at least the employee name, SSN and/or SIN, and 

date reporting for work. 

4. The participating ftmd plan administrator upon notific.ation that ru1 employee 

has been referred to work and is registered on ERTS should prepare to 

forward all contributions to tl1e employees choice of home fund or funds as 

spelled out on his/her Blanket Authorization :Form in his/her file on ERTS. 

5. The home fund plan administrator, upon notification by the participating fund 

or assisting local union will know to expect contributions on the employee's 

behalf and prepare to receive them. 

6. A plan administrator upon notification that an employee has selected his/her 

fund or funds as their home fund or funds dw-ing their registration on ERTS. 

checks to see if the employee is eligible to have money transferred to the 

selected fund or funds. The employee is eligible if he/she is a member or the 

local lmion covered by the fwKt and he/she is a paLticipant or has credited 

- 35 -
service in the fund. An employee is also eligible if he/she is a patiicipant or 

has credited service in the designated home fund and he/she is not a member 

or a BAC local union or be/she is a member or another BAC local union 

whkh does not have a fund or he/she is a member of another BAC local 

union but he/she is not a participant or does not have credited service in the 

.ft.md covering his BAC local union. The administrator may vvish to check 

with the employee's local ullion fund if he/she is a BAC member of another 

local union to see if the employee is a participant or has credited service in 

his/her home local union fund. If this is the case, the employee may not 

name your fund as him home fund. The designated home fund administrator 

immediately completes the Home Fund Continuation Form indicating if the 

employee is eligible or not and transmits jt back to the participating travel 

fund via ERTS. If the employee is eligible, then a "Blanket Authori7..ation 

Form" is created on ERTS, which will be used by aU participating funds 

on where the employee works, to send his/her pension money back to the 

employee's designated home fund or funds. 

7 A. If tile employee is not eligible for reciprocity: If the designated home fund plan 

administrator denies the home fund designation and the employee has provided 

an e-mail address, ERTS will automatically notify the employee that monies will 

not be transferred back to the home fund he/she designated; but the monies 

contributed will be credited on his/her behalfto the participating fund pursuant to 

its rules. 'The home fund denying home fw1d designation is required to mail a 

notice (only when an employee does not have on file an e-mail address) to the 

employee at Iris/her home address on file with ERTS outlining why home fund 

designation has been denied to the employee. 

7B. If the employee is eligiblefo1' reciproci(v: When contributions are received 

on the employee's behalf in the participating fund, the administrator of the 

pm1icipating fund lists the employee's name, SSN and/or SIN number (for 

Canadians), the month in whicb hours are worked, total hours worked. hourly 

rate contributed, and the total monies being transferred on behalf of the 

- 36-
employee. The administrator then completes the Reciprocal Remittance Report 

filling in all required information and transmits the form via ERTS and 

simultaneousJy mails or transmits via an ACH an amount of money equal to 

all contTibutions received to the employee's home flmd, as designated on his/her 

Blanket Authorization Form on file with ER'fS, for eacft month worked. 

There is no administrative charge aUowed under the agreement. Each mollfll 

must be done .~eparately, immediate~v after co11tributions for tile month are 

receiver! Checks ancVor ACH transfers sl10uld be made payable to the legal 

name of the home fund and not the local tmion or the fund administrator. 

8. The employee's designated home fund receives the payment, records the 

number of hours for the month in which they were earned, and credits the money 

pursuant to its rules. 

9. Thls process is repeated for eaclt month tmtil the employee bas no 

contributions made on his behalf. 

l 0. Process to file a Cessation .Form: An employee may file on ERTS 

either a Temporary Cessation Form or a Permanent Cessation Form. 

These fonns may be processed through the Participant Login Page on 

ERTS. A Temporary Cessation Form is used by an employee if he/she is 

currently employed and is having money sent back to their designated 

home fund or funds and wishes to stop one or all transfers only until 

they Jeave the area covered by the fund where currently employed and 

wishes to have them start up again to bislber designated home fund or 

funds when employed again in another participating funds jurisdiction 

without having to go through the home fund confirmation process. An 

employee uses a Pennanent Cessation Fom1 if he/she is currently 

employed and having money sent back to their designated home fund or 

f1mds and wishes to stop one or all transfers now and when traveling in 

the future. A Permanent Cessation modifies the employee's registration 

file for any fund on which it is processed to No Selection. 

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1 I . Process to Modify an Employees Registration File: An employee may 

ModifY his/her Registration on file with ERTS any time after they have 

completed their initial registration by logging on to ERTS through the 

Participant Login Page. Through this process the employee may keep 

ERTS up to date with his/her mailing address, e-mail address. phone 

number and changes in his/her designation of home fund or funds. Any 

changes to home fund designations will require the normal home fund 

confirmation process in #6 above before there will by any change to the 

employees "Blanket Authorization Form." Modifying an employee 

home fund designation while currently employed and having money 

transferred under reciprodty will require the current pa11icipating fund or 

funds to stop where they are currently sending money. If an employee is 

currently employed and is having money transferred back to hls/her 

cull'ently designated home fund and wants to both immediately stop the 

current fl'ansfers and select a new home fund he/she will first have to 

file a Permanent Cessation to stop the transfers and then he/she will 

have to mocliiy his/her home fund designation to his/her new 

designation. 

Note: IT IS IMPORTANT THAT EACH STEP TN THE PROCESS BE 

COMPLETED IN THE LEAST AMOUNT OF TIME POSSffiLE TO 

INSURE THE SMOOTH OPERATION OF THE AGREEMENT. 

OTHER RESPONSIBILITIES OF THE PLAN ADMINISTRATOR 

12. Announcement of the funds' participation in the reciprocal agreement 

should be placed in the summary plan description as soon as possible. 

Administrators are also strongly encouraged to supply their plan 

participants with an annual statement showing the hours and money 

transferred pursuant to the reciprocal agreement. Notifying participants 

will help to avoid any confusion at a later date as to the proper amount of 

money transferred. 

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13. Keep the Reciprocal Clearinghouse advised of the current contribution 

rate or any other changes or problems affecting reciprocity. 

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