Central States, Southeast and Southwest Areas Pension Plan

Item #36 

Does the application include 

• the required plan documents. 

• any recent amendments,

• the summary plan description (SPD), 

• the summary of material modifications, and

• the most recent determination letter.

See section 7.06. 

The required documents are attached with the following document numbers: 

36.1 Plan

36.2 Trust Agreement

36.3 SPD Benefit Classes 1-14

36.4 SPD Benefit Classes 15+

36.5 SPD United Parcel Service, Inc.

36.6 Determination Letter

There are no recent amendments or summaries of material modifications not incorporated into the 

Plan document 36.1. 

36.0
TM:538126 / 01096280 / 01/01/2015 

Central States, Southeast 

and Southwest Areas 

Pension Plan 

RESTATED PLAN EFFECTIVE JANUARY 1, 1985 

AS AMENDED THROUGH JANUARY 1, 2015 

36.1.1
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CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND, a jointly 

administered, defined benefit employee benefit plan 

ADDRESS OF ADMINISTRATIVE OFFICE 

9377 West Higgins Road 

Rosemont, Illinois 60018-4938 

TELEPHONE NUMBER 

(847) 518-9800 

1-800-323-5000 (Toll-Free) 

EMPLOYER IDENTIFICATION NUMBER 

36-6044243 

PLAN NUMBER 

001 

BOARD OF TRUSTEES 

 UNION EMPLOYER 

 Charles A. Whobrey Arthur H. Bunte, Jr. 

 Jerry Younger Gary F. Caldwell 

 George J. Westley Ronald DeStefano 

 Marvin Kropp Greg R. May 

EXECUTIVE DIRECTOR 

(also Agent for Service of Legal Process) 

Thomas C. Nyhan

36.1.2
TABLE OF CONTENTS 

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ARTICLE I DEFINITIONS .............................................................................................................. 1

1.01 ACCRUED BENEFIT................................................................................................... 1

1.02 ACTIVE PARTICIPANT ............................................................................................... 2

1.03 BARGAINING UNIT..................................................................................................... 2

1.04 BOARD OF TRUSTEES.............................................................................................. 2

1.05 BREAK-IN-SERVICE .................................................................................................. 2

1.06 COLLECTIVE BARGAINING AGREEMENT ............................................................... 3

1.07 CONTRIBUTING EMPLOYER .................................................................................... 3

1.08 CONTRIBUTIONS ....................................................................................................... 3

1.09 CONTRIBUTORY SERVICE ....................................................................................... 6

1.10 CONTRIBUTORY SERVICE CREDIT ......................................................................... 8

1.11 COVERED SERVICE ................................................................................................ 10

1.12 DEFERRED RETIREMENT DATE ............................................................................ 10

1.13 DISABLED PARTICIPANT ........................................................................................ 10

1.14 EMPLOYEE ............................................................................................................... 10

1.15 EMPLOYEE GROUP ................................................................................................ 11

1.16 GENDER ................................................................................................................... 11

1.17 HOUR OF SERVICE ................................................................................................. 11

1.18 INACTIVE PARTICIPANT ......................................................................................... 12

1.19 LOSS OF NON-CONTRIBUTORY SERVICE ........................................................... 12

1.20 MINIMUM CONTRIBUTION REQUIREMENT .......................................................... 12

1.21 NON-CONTRIBUTORY SERVICE ............................................................................ 13

1.22 NON-CONTRIBUTORY SERVICE CREDIT ............................................................. 14

1.23 ONE-YEAR BREAK-IN-SERVICE ............................................................................. 16

1.24 PARTICIPANT ........................................................................................................... 17

1.25 PENSIONER ............................................................................................................. 17

1.26 PENSION FUND ....................................................................................................... 17

1.27 PENSION PLAN ........................................................................................................ 17

1.28 RECOVERY OF LOST SERVICE CREDIT ............................................................... 17

1.29 RETIREMENT DATE................................................................................................. 18

1.30 SERVICE CREDIT .................................................................................................... 18

1.31 TEAMSTER CONTRACT .......................................................................................... 18

1.32 TRUST AGREEMENT ............................................................................................... 18

1.33 UNION ....................................................................................................................... 18

1.34 VESTED PARTICIPANT ........................................................................................... 18

1.35 VESTED PENSION RETIREMENT DATE (NORMAL RETIREMENT DATE) .......... 19

1.36 VESTING SERVICE .................................................................................................. 19

1.37 VESTING SERVICE YEAR ....................................................................................... 20

1.38 WITHDRAWAL OF AN EMPLOYEE GROUP ........................................................... 20

1.39 YEAR OF EMPLOYMENT......................................................................................... 21

1.40 YEAR OF PARTICIPATION ...................................................................................... 21

ARTICLE II EFFECTIVE DATE .................................................................................................... 22

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ARTICLE III BENEFIT CLASS ...................................................................................................... 23

3.01 BENEFIT CLASS OF A COLLECTIVE BARGAINING AGREEMENT ...................... 23

3.02 CONTINUOUS CONTRIBUTIONS ............................................................................ 28

3.03 BENEFIT CLASS OF A PARTICIPANT .................................................................... 30

3.04 BENEFIT CLASS MAINTENANCE ........................................................................... 31

ARTICLE IV RETIREMENT PENSION BENEFITS ....................................................................... 33

4.01 TWENTY-YEAR SERVICE PENSION ...................................................................... 33

4.02 EARLY RETIREMENT PENSION ............................................................................. 34

4.03 CONTRIBUTION-BASED PENSION ......................................................................... 35

4.04 CONTRIBUTORY CREDIT PENSION ...................................................................... 36

4.05 25-AND-OUT PENSION - BENEFIT CLASS 17a, 18 and 18+ ONLY ....................... 48

4.06 30-AND-OUT PENSION - SCHEDULE B BENEFIT ONLY ....................................... 50

4.07 VESTED PENSION ................................................................................................... 53

4.08 DEFERRED PENSION.............................................................................................. 53

4.09 TWENTY-YEAR DEFERRED PENSION - SCHEDULE B BENEFIT ONLY ............. 54

4.10 FORMS OF PAYMENT ............................................................................................. 55

4.11 BENEFITS UNDER ANOTHER PLAN ...................................................................... 63

4.12 CHOICE OF BENEFITS ............................................................................................ 63

4.13 RULES AND PROCEDURES FOR SUSPENSION OF BENEFITS .......................... 64

4.14 CONTRIBUTORY SERVICE AFTER RETIREMENT DATE OR 

 AFTER DISABILITY .................................................................................................. 69

4.15 PERIOD OF BENEFIT DISTRIBUTION .................................................................... 70

ARTICLE V DISABILITY BENEFITS............................................................................................. 71

5.01 DEFINITION OF DISABILITY .................................................................................... 71

5.02 MONTHLY DISABILITY BENEFITS .......................................................................... 71

5.03 LUMP SUM DISABILITY BENEFITS ......................................................................... 72

5.04 50% SURVIVING SPOUSE BENEFIT ...................................................................... 73

5.05 CHOICE OF DISABILITY BENEFITS ........................................................................ 74

ARTICLE VI BEFORE RETIREMENT DEATH BENEFITS ............................................................ 75

6.01 50% SURVIVING SPOUSE BENEFIT ...................................................................... 75

6.02 60 MONTH SURVIVOR BENEFIT ............................................................................ 75

6.03 DISABILITY DEATH BENEFIT .................................................................................. 76

6.04 LUMP SUM DEATH BENEFIT .................................................................................. 77

6.05 BENEFIT CLASS 18/18+ DEATH BENEFIT ............................................................. 78

6.06 CHOICE OF SURVIVOR BENEFITS OR DEATH BENEFITS .................................. 78

6.07 SPECIAL RULES FOR DEATH OCCURRING DURING QUALIFIED 

 MILITARY SERVICE ................................................................................................. 79

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ARTICLE VII ADMINISTRATION .................................................................................................... 80

7.01 ADMINISTRATION AUTHORITY .............................................................................. 80

7.02 AMENDMENT OF THE PENSION PLAN .................................................................. 80

7.03 DECISIONS OF BOARD OF TRUSTEES ................................................................. 80

7.04 BENEFITS CLAIM AND APPELLATE PROCEDURES ............................................ 80

7.05 RECOVERY OF OVERPAYMENTS ......................................................................... 80

7.06 PAYMENT OF BENEFITS FOR INDIVIDUALS UNDER LEGAL 

 DISABILITY OR IN SIMILAR MENTAL OR PHYSICAL CONDITION ....................... 81

7.07 SPENDTHRIFT CLAUSE .......................................................................................... 81

7.08 ELIGIBILITY VERIFICATION .................................................................................... 81

7.09 TERMINATION OF THE PENSION PLAN ................................................................ 82

7.10 MERGERS ................................................................................................................ 82

7.11 CONSTRUCTION...................................................................................................... 82

7.12 SAVINGS CLAUSE ................................................................................................... 82

7.13 CHANGE OF ADDRESS ........................................................................................... 82

7.14 BENEFITS CLAIM FILING PROCEDURES .............................................................. 82

7.15 MAXIMUM BENEFIT LIMITATIONS ......................................................................... 83

7.16 DIRECT ROLLOVER PAYMENTS TO ELIGIBLE RETIREMENT PLANS ................ 84

7.17 ASSET-TRANSFER RULES UNDER SECTION 4234 OF ERISA ............................ 86

7.18 VALIDITY OF ELECTIONS AND CONSENTS MADE WITH RESPECT 

 TO THE UPS-IBT FULL-TIME PENSION PLAN ....................................................... 86

7.19 REHABILITATION PLAN: PENSION PROTECTION ACT OF 2006 ........................ 86

APPENDIX A-1. ADJUSTMENT FACTORS FOR THE JOINT AND 50% SURVIVING 

 SPOUSE OPTION ..................................................................................................... 87

APPENDIX A-2. ADJUSTMENT FACTORS FOR THE JOINT AND 75% SURVIVING 

 SPOUSE OPTION ..................................................................................................... 96

APPENDIX B. BENEFIT CLAIMS AND APPEALS PROCEDURES ............................................... 104

APPENDIX C. SCHEDULE A - EARLY RETIREMENT PENSION AMOUNTS .............................. 111

APPENDIX D. PARTIAL PENSIONS .............................................................................................. 113

APPENDIX E. RULES AND REGULATIONS PERTAINING TO EMPLOYER 

 WITHDRAWAL LIABILITY....................................................................................... 116

APPENDIX F. RULES PERTAINING TO HOURLY RATES FOR CONSTRUCTION 

INDUSTRY PARTICIPANTS ................................................................................... 129

APPENDIX G. ACCEPTANCE POLICIES FOR BARGAINING UNITS .......................................... 132

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APPENDIX H. THE SPECIAL ELIGIBILITY APPENDIX ................................................................. 136

APPENDIX I. MEDICAL BENEFITS ACCOUNTS ......................................................................... 139

APPENDIX J-1. GROCERY WAREHOUSE PLAN A ........................................................................ 143

APPENDIX J-2. GROCERY WAREHOUSE PLAN B ........................................................................ 146

APPENDIX K-1. MINIMUM EMPLOYER CONTRIBUTION REQUIREMENTS ................................. 149

APPENDIX K-2. MINIMUM EMPLOYER CONTRIBUTION REQUIREMENTS 

 (NOVEMBER 8, 2006 UPDATE) ............................................................................. 154

APPENDIX L. TRANSFER OF LIABILITIES TO THE UPS TRANSFER PLAN ............................. 158

APPENDIX M-1. REHABILITATION PLAN......................................................................................... 162

APPENDIX M-2. REHABILITATION PLAN (INCLUDING 2010 UPDATE) ......................................... 174

APPENDIX M-3. REHABILITATION PLAN (INCLUDING 2011 UPDATE) ......................................... 190

APPENDIX M-4. REHABILITATION PLAN (INCLUDING 2012 UPDATE) ......................................... 207

APPENDIX M-5. REHABILITATION PLAN (INCLUDING 2013 UPDATE) ......................................... 226

APPENDIX M-6. REHABILITATION PLAN (INCLUDING 2014 UPDATE) ......................................... 243

APPENDIX N. PUERTO RICO PROVISIONS ................................................................................ 260

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ARTICLE I DEFINITIONS 

Section 1.01 ACCRUED BENEFIT 

(a) The Accrued Benefit of a Participant who is eligible for a Vested Pension 

(as defined in Section 4.07) is the greater of either the maximum TwentyYear Service Pension or 30-and-Out Pension payable from his Benefit 

Class multiplied by the sum of the following: 

(1) 11⁄2% of the Contributory Service Credit earned by the Participant 

before January 1, 1976, 

(2) 3% of the Contributory Service Credit earned by the Participant on 

and after January 1, 1976, 

(3) the product of (1) and (2), above. 

(b) The Accrued Benefit of a Participant who is eligible for a ContributionBased Pension (as defined in Section 4.03) is: 

(1) The greater of either the Twenty-Year Service Pension or 30-AndOut Pension payable from his Benefit Class, as of December 31, 

1985, multiplied by the sum of the following: 

(A) 11⁄2% of the Contributory Service Credit he earned before 

January 1, 1976, 

(B) 3% of the Contributory Service Credit he earned from 

January 1, 1976 through December 31, 1985, 

(C) the product of (A) and (B), above, plus 

(2) For each calendar year from 1986 through 2003, inclusive, the 

greater of: 

(A) 2% of all Contributions made on his behalf during the 

calendar year or, if he is at Benefit Class 15(C) or 16, 

(B) the minimum benefit below, corresponding to his Benefit 

Class as of the date of the last Contribution made on his 

behalf during the calendar year, multiplied by the 

Contributory Service Credit he earned during the calendar 

year: 

 Benefit Minimum 

 Class Benefit 

 15 

 (C) $66 

 16 

 (A) 77 

 (B) 81 

 (C) 83, plus 

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(3) For calendar year 2004 and for each subsequent calendar year, 

1% of all Contributions made on his behalf during the calendar 

year. 

(c) The Accrued Benefit calculated in (a) or (b)(1), above, shall not exceed 

the 30-And-Out Pension amount for the Benefit Class of the Participant. 

(d) The Accrued Benefit calculated in (a) or (b), above, shall never be less 

than the Accrued Benefit determined at the end of any preceding 

calendar year. 

(e) All Non-Contributory Service Credit and any calendar year for which no 

Contributory Service Credit is earned shall be excluded in determining a 

Participant’s Accrued Benefit in (a) and (b)(1), above. 

Section 1.02 ACTIVE PARTICIPANT 

(a) A Participant becomes an Active Participant if: 

(1) he has a Year of Participation; or 

(2) he has not had a One-Year Break-in-Service during any calendar 

year since he last became an Active Participant. 

(b) A Disabled Participant becomes an Active Participant during the calendar 

year in which he recovers from his disability. 

(c) A Participant becomes an Active Participant immediately upon having a 

Year of Participation. 

Section 1.03 BARGAINING UNIT means, all Employees who are covered by and whose 

terms and conditions of employment are specified in a particular Collective 

Bargaining Agreement. 

Section 1.04 BOARD OF TRUSTEES means, the Union Trustees and the Employer Trustees 

collectively as appointed according to the Trust Agreement to administer the 

Pension Fund and the Pension Plan. 

Section 1.05 BREAK-IN-SERVICE 

(a) A Break-in-Service is sustained when consecutive One-Year Breaks-inService accumulate as follows: 

(1) If the Participant stopped working in Covered Service between 

February 1, 1955 and March 31, 1969, inclusive, he shall sustain 

a Break-in-Service if he has at least 5 consecutive One-Year 

Breaks-in-Service. 

(2) If the Participant stopped working in Covered Service between 

April 1, 1969 and December 31, 1975, inclusive, he shall sustain a 

Break-in-Service if he has at least 3 consecutive One-Year 

Breaks-in-Service. 

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(3) If the Participant stopped working in Covered Service after 

December 31, 1975, he shall sustain a Break-in-Service if he has 

the greater of: 

(A) 5 consecutive One-Year Breaks-in-Service; or 

(B) a number of consecutive One-Year Breaks in Service 

equaling or exceeding the number of years of Vesting 

Service he earned prior to the first of his consecutive OneYear Breaks-in-Service. 

(b) A Vested Participant cannot sustain a Break-in-Service. 

(c) An individual who sustains a Break-in-Service is no longer a Participant, 

and he shall lose all right and claim to any benefit from the Pension Plan, 

except that he shall never lose any Self-Contributions he may have made 

to the Pension Fund. 

Section 1.06 COLLECTIVE BARGAINING AGREEMENT means, a written agreement 

between a Union and a Contributing Employer requiring Employer Contributions 

to the Pension Fund on behalf of all Employees whose classification of work is 

covered by the Collective Bargaining Agreement. A Collective Bargaining 

Agreement also means a written agreement between the Board of Trustees and 

a Contributing Employer requiring Employer Contributions on behalf of all 

Employees whose classification of work is covered by the agreement. 

Section 1.07 CONTRIBUTING EMPLOYER means, any association or individual employer 

which has agreed or shall agree, in writing, to be bound by the Trust Agreement 

and to make Employer Contributions to the Pension Fund according to a 

Collective Bargaining Agreement, and which has been accepted by the Board of 

Trustees as a Contributing Employer. Contributing Employer also means a Union 

with regard to its Employees, the Pension Fund with regard to its Employees, 

and Central States, Southeast and Southwest Areas Health and Welfare Fund 

with regard to its Employees. A Contributing Employer, upon acceptance, must 

continue to meet the conditions stated above as well as any additional conditions 

established by the Board of Trustees for Contributing Employers. 

Section 1.08 CONTRIBUTIONS means, either or both of the following: 

(a) Employer Contributions are Contributions which a Contributing Employer 

is required to make to the Pension Fund pursuant to a Collective 

Bargaining Agreement or applicable law, provided that the Contributing 

Employer shall be required to make such Employer Contributions to the 

Pension Fund at Contribution rates at least equal to minimum Employer 

Contribution requirements adopted by the Board of Trustees and 

applicable to the Collective Bargaining Agreement, including the 

requirements stated in Appendix K-1 and Appendix K-2 of this Pension 

Plan. Any Contributing Employer which, based upon the Uniformed 

Services Employment and Reemployment Rights Act of 1994, is required 

to make Employer Contributions to the Pension Fund, shall make those 

Employer Contributions at the rates and in the amounts of Employer 

Contributions which that Contributing Employer would have been 

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obligated to pay to the Pension Fund, relative to the Participant, if his 

employment by that Contributing Employer had continued throughout 

(and had not been interrupted by) such service in the Uniformed Services 

(plus interest, to the extent such Employer Contributions are not paid at 

the time of such absence from employment as a result of service in the 

Uniformed Services, in accordance with the Trust Agreement of the 

Pension Fund). 

(b) Self-Contributions cannot be made and are not acceptable for any 

period after December 31, 2003, unless the period of the layoff, sick 

leave, other leave of absence or approved strike, on which the SelfContributions are based, commenced before and was continuing on 

January 1, 2004. All references to Self-Contributions in this Section 

1.08 and elsewhere in this Pension Plan are subordinate to the 

limitations of the preceding sentence. Self-Contributions are voluntary 

Contributions made to the Pension Fund by an Employee for a period of 

employment for which his Contributing Employer is not required by his 

Collective Bargaining Agreement, to make Employer Contributions on his 

behalf. Self-Contributions are subject to each of the following: 

(1) An Employee shall not, except as provided by a Collective 

Bargaining Agreement, be permitted to make Self-Contributions 

for any period of compensated employment with the same 

Contributing Employer if the period of compensated employment 

is not covered by a Collective Bargaining Agreement. 

(2) An Employee must make a sufficient number of Self-Contributions 

which alone, or when combined with Employer Contributions, earn 

him Contributory Service Credit for the calendar year in which his 

Self-Contributions are to be applied. 

(3) An Employee must make Self-Contributions at the same rates as 

required by his Collective Bargaining Agreement and any renewal 

thereof. 

(4) An Employee shall be permitted to make Self-Contributions, in 

accordance with the following, for a period when he is on the 

seniority list of a Contributing Employer in a sick-leave (illness or 

injury) or layoff status for no more than a 60-month layoff period or 

is on approved strike: 

(A) Pre-January 1, 1994 Self-Contributions: SelfContributions for a period preceding January 1, 1994 may 

be made at any time. If Self-Contributions for a preJanuary 1, 1994 period are submitted within 24 months of 

the earliest date to which they apply, there shall not be any 

interest charged on such Self-Contributions. If such SelfContributions are not submitted within this 24 month 

period, however, interest shall accrue and be charged from 

the earliest date to which such Self-Contributions apply to 

the date they are made. The interest charged shall be 

determined by the same rate (or rates) paid by 

Contributing Employers for delinquent Employer 

Contributions owed during the period for which such SelfContributions are being made. 

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(B) January 1, 1994 and after Self-Contributions: SelfContributions for a period on or after January 1, 1994 must 

be submitted no later than December 31 of the year 

immediately following the calendar year to which they are 

to be applied. There shall not be any interest charged on 

Self-Contributions made for a period beginning on or after 

January 1, 1994. 

(5) An Employee shall also be permitted to make Self-Contributions 

for a period when he is on the seniority list of a Contributing 

Employer in an authorized leave of absence status. SelfContributions for a leave of absence must be submitted at the time 

of the leave or as provided in the Collective Bargaining Agreement 

covering an Employee. An Employee whose Collective Bargaining 

Agreement does not require him to make Self-Contributions during 

a leave of absence, shall be permitted to make Self-Contributions 

in accordance with (4)(A) or (B) (whichever is applicable to the 

time period of his Self-Contributions) of this Section. 

(6) An Employee making Self-Contributions must comply with 

procedures established by the Board of Trustees, including the 

use of forms which his Contributing Employer is required to 

complete to confirm that he is in an employee status and remains 

on the seniority list. 

(7) An Employee may not make Self-Contributions which exceed 10% 

of all compensation he receives from Contributing Employers 

during his working career. In determining the 10% SelfContribution limitation, any interest required by subsection 

(b)(4)(A) of this Section, shall be excluded. 

(8) An Employee whose layoff status commences on or after January 

1, 2000, and is the result of a cessation of business by a 

Contributing Employer shall be permitted to make SelfContributions for a maximum of 2 years after the initial business 

cessation date. 

(c) Employer Contributions shall be irrevocable, shall be held and invested 

according to the provisions of the Trust Agreement, and shall be used for 

providing benefits and paying the expenses of the Pension Fund. 

Employer Contributions made in error shall be subject to the refund 

policies adopted by the Board of Trustees. 

(d) Self-Contributions shall be non-forfeitable. If an Employee who has made 

Self-Contributions does not become eligible for benefits from the Pension 

Fund, the Self-Contributions that he made shall be returned to him with 

interest at the rate of 5.5% compounded annually. 

(e) If an Employee who has made Self-Contributions would qualify for a 

Contributory Credit Pension under Benefit Class 17a or 17b or higher or 

for a 25-And-Out Pension under Benefit Class 17a or higher or for a 30-

And-Out Pension under Benefit Class 17b or higher, except for the 

exclusion of his Self-Contributions as required by the Pension Plan, 

including Section 1.09(b), and if the Employee requests a return of his 

Self-Contributions, the Self-Contributions that he made shall be returned 

to him with interest at the rate of 5.5% compounded annually. 

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(f) There shall be a separate accounting maintained of the portion of the 

Accrued Benefit of each Participant derived from Self-Contributions. 

Section 1.09 CONTRIBUTORY SERVICE 

(a) A Participant shall earn Contributory Service for any employment with a 

Contributing Employer required to make Employer Contributions on his 

behalf according to a Collective Bargaining Agreement. 

(b) A Participant shall earn Contributory Service for any period commencing 

before January 1, 2004, for which he makes Self-Contributions, except 

that, any Contributory Service earned from Self-Contributions shall not be 

counted in determining his eligibility for benefits under: 

(1) Benefit Class 16, if such Self-Contributions were made to 

meet any part of the 5-day or one-week Contribution 

requirement for benefits under this Benefit Class; or 

(2) Benefit Class 17a, if such Self-Contributions were made 

(A) for a period or periods preceding January 1, 1994, 

other than a Temporary Medical Absence Period or (B) to 

meet any part of the 100-day or 20-week Contribution 

requirement for benefits under this Benefit Class; or 

(3) Benefit Class 17b, if such Self-Contributions were made 

(A) for a period or periods preceding January 1, 1994, 

other than a Temporary Medical Absence Period or (B) to 

meet any part of the 10-day or 2-week or 100-day or 20-

week Contribution requirements for benefits under this 

Benefit Class; or 

(4) Benefit Class 18, if such Self-Contributions were made 

(A) for a period or periods preceding January 1, 1994, 

other than a Temporary Medical Absence Period, or (B) to 

meet any part of the 10-day or 2-week or 100-day or 20-

week Contribution requirements for benefits under this 

Benefit Class. 

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(5) Benefit Class 18+, if such Self-Contributions were made 

(A) for a period or periods preceding January 1, 1994, 

other than a Temporary Medical Absence Period, or (B) to 

meet any part of the 10-day or 2-week or 100-day or 20- 

week Contribution requirements for benefits under this 

Benefit Class. 

As used in this Section 1.09(b) and in Sections 4.04(a), 4.05(a) 

and 4.06(b), a Temporary Medical Absence Period means and 

includes any period when the Participant, while continuing to be in 

employee status on the seniority list of a Contributing Employer, is 

temporarily absent from active employment by his Contributing 

Employer as a direct result of sickness or injury, provided that the 

aggregate maximum period of such absences for which such past 

Self-Contributions may be counted and included in determining 

Benefit Class 17a and 17b and 18 eligibility is 30 days of daily 

Self-Contributions or 6 weeks of weekly Self-Contributions, and 

provided further that, for Participants receiving continuing 

Workers’ Compensation benefit payments during such absences, 

the aggregate maximum is one year of daily or weekly SelfContributions. 

(c) A Participant may earn Contributory Service for his periods of service in 

the Uniformed Services if and to the extent: 

(1) his service in the Uniformed Services begins during, and causes 

him to be absent from, employment by an employer that was, 

either at such beginning of service or before such service is 

concluded, a Contributing Employer; 

(2) he would have earned Contributory Service based upon Employer 

Contributions if his employment by that employer had not been 

interrupted by such service in the Uniformed Services; 

(3) he submits an application for reemployment to the same

Contributing Employer within the following time limitations (except 

as those limitations are required by law to be extended): 

(A) If his reemployment is initiated before December 11, 1994, 

his application for reemployment must be submitted to the 

Contributing Employer within 90 days after his discharge 

from the Uniformed Services; and 

(B) If his reemployment is initiated on or after December 11, 

1994, his application for reemployment must be submitted 

to the Contributing Employer; 

(i) within 90 days after completion of a period of 

service in the Uniformed Services that was more 

than 180 days; 

(ii) within 30 days after completion of a period of 

service in the Uniformed Services that was more 

than 30 days and less than 181 days; and 

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(iii) within one day after completion of a period of 

service in the Uniformed Services that was less 

than 31 days; and 

(4) All such periods of service in the Uniformed Services do not, in the 

aggregate, exceed 5 years (except as that 5-year maximum is 

required by law to be enlarged). 

For purposes of this Section 1.09(c) and Sections 1.08(a), 1.10(b) and 

1.36, the term ‘Uniformed Services’ is as defined in the Uniformed 

Services Employment and Reemployment Rights Act of 1994 (as may be 

hereafter amended) (‘USERRA’). For purposes of this Section 1.09(c) and 

Sections 1.08(a), 1.10(b) and 1.36, ‘service in the Uniformed Services’ 

includes the performance of duty by a Participant on a voluntary or 

involuntary basis in a Uniformed Service under competent authority and 

also includes any period during which a Participant is absent from 

employment for the purpose of an examination to determine the 

Participant’s fitness to perform any such duty. As a prerequisite to earning 

Contributory Service based upon this Section 1.09(c), the Participant shall 

provide any notice and any documentation that is required by USERRA or 

other applicable law. 

(d) A Participant may earn Contributory Service if his Bargaining Unit was 

accepted in this Pension Fund according to the Alternative Policy in 

Appendix G of this Pension Plan. 

(e) A Participant may lose the Contributory Service he earned if he sustains a 

Break-in-Service. 

(f) If a Collective Bargaining Agreement covering an Employee requires his 

Contributing Employer to make weekly Contributions, then he shall earn 

one week of Contributory Service for each week that he performs one 

Hour of Service and a weekly Contribution is required on his behalf. 

(g) If a Collective Bargaining Agreement covering an Employee requires his 

Contributing Employer to make daily Contributions, then he shall earn one 

day of Contributory Service for each day that he performs one Hour of 

Service and a daily Contribution is required on his behalf. 

Section 1.10 CONTRIBUTORY SERVICE CREDIT 

(a) Contributory Service Credit is based on Contributory Service, and is 

determined as follows: 

(1) For calendar years beginning before January 1, 1976: 

(A) no Contributory Service Credit is earned for any calendar 

year with less than 20 weeks of Contributory Service; and 

(B) 1⁄2 year of Contributory Service Credit is earned for any 

calendar year with at least 20 weeks but less than 35 

weeks of Contributory Service; and 

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(C) one year of Contributory Service Credit is earned for any 

calendar year with at least 35 weeks of Contributory 

Service. 

(2) For calendar years beginning on and after January 1, 1976: 

(A) Contributory Service Credit is earned only for a calendar 

year in which a Participant has a Year of Participation; 

(B) Contributory Service Credit equals the sum of the 

following: 

(i) the number of weeks of Contributory Service 

earned by a Participant in a calendar year in which 

he has at least a Year of Participation divided by 

40; and 

(ii) the number of days of Contributory Service earned 

by a Participant in a calendar year in which he has 

at least a Year of Participation divided by 180. 

(b) A Participant shall earn Contributory Service Credit for Contributory 

Service to which he is entitled, based upon Section 1.09(c), for his 

periods of service in the Uniformed Services, according to the following: 

(1) For calendar years beginning before January 1, 1976: 

(A) no Contributory Service Credit is earned for any calendar 

year with less than 20 weeks of Contributory Service; and 

(B) 1⁄2 year of Contributory Service Credit is earned for any 

calendar year with at least 20 weeks but less than 35 

weeks of Contributory Service; and 

(C) one year of Contributory Service Credit is earned for any 

calendar year with at least 35 weeks of Contributory 

Service. 

(2) For calendar years beginning on and after January 1, 1976: 

(A) Contributory Service Credit is earned only for a calendar 

year in which the Participant had at least 20 weeks of 

Contributory Service; 

(B) Contributory Service Credit equals the number of weeks of 

Contributory Service earned by the Participant in a 

calendar year in which he had at least 20 weeks of 

Contributory Service divided by 40. 

(c) A Participant shall be eligible to earn Contributory Service Credit in this 

Pension Plan for all of the contributory service credit he had earned while 

covered under a prior pension plan of an Employer which became 

required to make contributions to this Pension Fund on his behalf if: 

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(1) his Bargaining Unit was accepted in this Pension Fund according 

to the Alternative Policy in Appendix G of this Pension Plan; and 

(2) he was a vested participant under that prior pension plan. 

(d) A Participant shall not earn more than one year of Contributory Service 

Credit during a calendar year. 

Section 1.11 COVERED SERVICE means the combined Non-Contributory Service and 

Contributory Service of a Participant, subject to the following restrictions: 

(a) Covered Service shall not include any period of self-employment, or 

employment as an employer, or as a member of a partnership or in a 

managerial or supervisory capacity. 

(b) Covered Service, except as provided by Appendix D and Appendix G of 

this Pension Plan, shall not include any period of employment covered by 

another pension plan established and maintained according to a 

Teamster Contract. 

Section 1.12 DEFERRED RETIREMENT DATE is the first day of any month selected by a 

Participant to be the month in which the Deferred Pension or Twenty-Year 

Deferred Pension he is eligible to receive becomes payable. A Participant’s 

Deferred Retirement Date must be in a month later than the month in which his 

Retirement Date occurs. In no event, however, shall any benefit payable to a 

Participant begin any later than the date required by Section 4.15. 

Section 1.13 DISABLED PARTICIPANT 

(a) A Participant is a Disabled Participant if he becomes disabled and is 

receiving payment of a disability benefit from this Pension Plan. 

(b) A Participant is no longer a Disabled Participant if he reaches his Normal 

Retirement Date and becomes a Pensioner, or if he recovers from his 

disability or becomes an Active Participant. 

Section 1.14 EMPLOYEE 

(a) An Employee means an individual who is: 

(1) employed by a Contributing Employer under the terms and 

conditions of a Collective Bargaining Agreement which requires 

that Employer Contributions be made to the Pension Fund, except 

that, any individual who is self-employed or a member of a 

partnership or employed in a managerial or supervisory capacity 

shall not be an Employee for purposes of this Pension Plan; or 

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(2) employed by a Union which has been accepted by the Board of 

Trustees as a Contributing Employer of its full-time and regular 

part-time employees, and on whom the Union is required to make 

Employer Contributions to the Pension Fund under the same 

conditions as any other Contributing Employer; or 

(3) employed by the Pension Fund or by Central States, Southeast 

and Southwest Areas Health and Welfare Fund, and on whom the 

Board of Trustees is required to make Employer Contributions to 

the Pension Fund under the same conditions as any other 

Contributing Employer; or 

(4) employed by a Contributing Employer and a member of the Board 

of Trustees, and on whom Employer Contributions are required to 

be made to the Pension Fund under the same conditions as any 

other Contributing Employer. 

(b) The common law test or the applicable statutory definition of masterservant relationship shall be used to decide any dispute regarding 

employee status under (a)(1) of this Section. 

(c) Continuation of employee status shall be subject to those rules and 

regulations the Board of Trustees may adopt according to law. 

Section 1.15 EMPLOYEE GROUP means, all Employees who are employed by a Contributing 

Employer in a classification of work covered by a Collective Bargaining 

Agreement. 

Section 1.16 GENDER 

Whenever used in the Pension Plan, the words “he,” “she,” “his” and “her,” are 

interchangeable. 

Section 1.17 HOUR OF SERVICE 

An Employee shall earn an Hour of Service for any of the following: 

(a) each hour for which he is paid, or entitled to payment for employment 

performed for a Contributing Employer. 

(b) each hour for which he is paid, or entitled to payment, by a Contributing 

Employer for a period of time during which no employment is performed 

(regardless of whether the employment relationship has terminated) due 

to vacation, holiday, illness, incapacity (including disability), layoff, jury 

duty, military duty, or leave of absence. 

(c) each hour for which he is paid, or entitled to payment of back pay 

(regardless of mitigation of damages) awarded or agreed to by a 

Contributing Employer. 

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Section 1.18 INACTIVE PARTICIPANT 

A Participant who has not become a Pensioner or a Disabled Participant 

becomes an Inactive Participant at the end of any calendar year during which he 

no longer meets the definition of an Active Participant. 

Section 1.19 LOSS OF NON-CONTRIBUTORY SERVICE 

(a) Any Participant employed in an Employee Group involved in a Voluntary 

Withdrawal (as defined in Section 1.38(b)) from the Pension Fund shall 

lose all right and claim to his Non-Contributory Service Credit unless: 

(1) If the Voluntary Withdrawal occurred before January 1, 1986, he 

permanently ceases to be employed in that Employee Group, as a 

result of a quit, discharge or retirement, before a calendar year in 

which less than 10 weeks of Contributions are made on his behalf; 

(2) If the Voluntary Withdrawal occurred on or after January 1, 1986 

but before April 1, 1991, he permanently ceases to be employed 

in that Employee Group, as a result of a quit, discharge or 

retirement, before the 31st day following the date of the Voluntary 

Withdrawal; 

(3) If the Voluntary Withdrawal occurred on or after April 1, 1991: 

(A) he permanently ceases to be employed in that Employee 

Group, as a result of a quit, discharge or retirement, before 

the last day of the 6th calendar month following the date of 

the Voluntary Withdrawal; or 

(B) he and the other members of that Employee Group again 

become covered by a Collective Bargaining Agreement 

before the last day of the 18th calendar month following 

the date of the Voluntary Withdrawal. 

(b) Any Participant who sustains a loss of his right and claim to NonContributory Service Credit according to (a), above, shall retain only the 

benefit he may be eligible to receive from his Contributory Service Credit, 

if any. 

Section 1.20 MINIMUM CONTRIBUTION REQUIREMENT 

(a) The Minimum Contribution Requirement used to determine the eligibility 

of a Participant for a Twenty-Year Service Pension or Early Retirement 

Pension shall be as follows: 

(1) at least 80 weeks of Contributions for an Employee who last 

became a Participant before July 1, 1967; 

(2) at least 120 weeks of Contributions for an Employee who last 

became a Participant between July 1, 1967 and March 31, 1969, 

inclusive; 

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(3) at least 450 weeks of Contributions for an Employee who last 

became a Participant between April 1, 1969 and December 31, 

1975, inclusive; 

(4) a number of years of Contributory Service Credit at least equal to 

the number of years of Non-Contributory Service an Employee is 

eligible to earn if he last became a Participant on or after January 

1, 1976. 

(b) For purposes of (a)(1), (a)(2) and (a)(3) above, 5 days of Contributions 

required to be made on behalf of a Participant shall be considered 

equivalent to one week of Contributions. 

(c) The Minimum Contribution Requirement used to determine the eligibility 

of a Participant for a Monthly Disability Benefit or a Lump Sum Disability 

Benefit or the eligibility of a Participant’s survivor for a Lump Sum Death 

Benefit shall be as follows: 

(1) at least 35 weeks of Contributions during each of 5 calendar 

years; or 

(2) at least 225 weeks of Contributions in total. 

(d) For purposes of (c)(1) and (c)(2) above, 5 days of Contributions required 

to be made on behalf of a Participant shall be equivalent to one week of 

Contributions. 

Section 1.21 NON-CONTRIBUTORY SERVICE 

(a) If an Employee first becomes a Participant before April 1, 1985, he shall 

be eligible to earn Non-Contributory Service for any of the following types 

of employment he performed prior to the date he first became a 

Participant: 

(1) employment under a Teamster Contract; or 

(2) continuous past employment with a Contributing Employer in work 

classifications which become covered by a Collective Bargaining 

Agreement, if the Employee is a member of the Bargaining Unit on 

the date the Contributing Employer becomes required to make 

Employer Contributions for the first time; or 

(3) employment requiring the usual Teamster skills in traditional 

Teamster industries at the time of the employment; or 

(4) employment in a work classification and in an industry which, at 

the time of the employment, were normally covered by Teamster 

Contracts in that local metropolitan area; or 

(5) employment by a Union; or 

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(6) service in the armed forces of the United States under Selective 

Service or during a war or international police action if he entered 

the armed forces directly from any Non-Contributory Service, 

defined above, and he returned directly from the armed forces to 

Contributory Service or Non-Contributory Service. 

(b) In addition to the types of employment described in (a) above, an 

Employee who first became a Participant before May 1, 1971 shall be 

eligible to earn Non-Contributory Service for any employment in the same 

classification of work which was covered by a Teamster Contract and for 

which Contributions were later made on his behalf. 

(c) An Employee who first becomes a Participant before April 1, 1985 shall 

be eligible to earn Non-Contributory Service for his continuous past 

employment with a Contributing Employer in a work classification which 

becomes covered by a Collective Bargaining Agreement if he is a 

member of the Bargaining Unit on the date the Contributing Employer is 

required to make Employer Contributions for the first time. 

(d) After the date an Employee first becomes a participant, he shall be 

eligible to earn Non-Contributory Service for service in the armed forces 

of the United States under Selective Service or during a war or 

international police action if he entered the armed forces directly from 

Contributory Service and he returned directly from the armed forces to 

either Contributory Service or Non-Contributory Service. 

(e) An Employee who first becomes a Participant on or after April 1, 1985, 

shall be eligible to earn Non-Contributory Service only for his continuous 

past employment with the Contributing Employer that began making 

Employer Contributions on his behalf only if his Bargaining Unit was 

accepted in this Pension Fund according to the Acceptance Policies in 

Appendix G of this Pension Plan. 

Section 1.22 NON-CONTRIBUTORY SERVICE CREDIT 

(a) For each year of his Contributory Service Credit, a Participant who first 

became a Participant prior to April 1, 1985 may earn up to one year of 

Non-Contributory Service Credit for his Non-Contributory Service as 

follows: 

(1) For Non-Contributory Service earned while serving in the armed 

forces of the United States: 

(A) no Non-Contributory Service Credit is earned for any 

calendar year with less than 18 weeks of Non-Contributory 

Service; and 

(B) 1⁄2 year of Non-Contributory Service Credit is earned for 

any calendar year with at least 18 weeks but less than 25 

weeks of Non-Contributory Service; and 

(C) one year of Non-Contributory Service Credit is earned for 

any calendar year with at least 25 weeks of NonContributory Service. 

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(2) For all other Non-Contributory Service: 

(A) no Non-Contributory Service Credit is earned for any 

calendar year with less than 500 hours of Non-Contributory 

Service; and 

(B) 1⁄2 year of Non-Contributory Service Credit is earned for 

any calendar year with at least 500 but less than 1,000 

hours of Non-Contributory Service; and 

(C) one year of Non-Contributory Service Credit is earned for 

any calendar year with at least 1,000 hours of NonContributory Service. 

(b) A Participant who first became a Participant prior to January 1, 1976, may 

earn Non-Contributory Service Credit according to (a)(1) and (a)(2), 

above, for all of his Non-Contributory Service. 

(c) An Employee who becomes a Participant on or after April 1, 1985, and 

whose Bargaining Unit was accepted in this Pension Fund according to 

the Acceptance Policies in Appendix G of this Pension Plan, shall be 

eligible to earn Non-Contributory Service Credit as follows: 

(1) no Non-Contributory Service Credit is earned for any calendar 

year with less than 500 hours of Non-Contributory Service; and 

(2) 1⁄2 year of Non-Contributory Service Credit is earned for any 

calendar year with at least 500 but less than 1,000 hours of NonContributory Service; and 

(3) one year of Non-Contributory Service Credit is earned for any 

calendar year with at least 1,000 hours of Non-Contributory 

Service. 

(d) A Participant shall not earn more than one year of Non-Contributory 

Service Credit during a calendar year. 

(e) During the calendar year an Employee who is eligible to earn NonContributory Service Credit becomes a Participant, he may earn 1⁄2 year 

of Non-Contributory Service Credit for 500 hours of Non-Contributory 

Service, or one year of Non-Contributory Credit for 1,000 hours of NonContributory Service. The combined Non-Contributory Service Credit and 

Contributory Service Credit earned during the calendar year an Employee 

becomes a Participant shall not exceed one year of Service Credit. 

(f) Regardless of any other rules or provisions in this Pension Plan, any 

Employee who first becomes a Participant in this Pension Plan on or after 

April 1, 1985 shall not be eligible to earn Non-Contributory Service Credit, 

except for his military service, and, except as provided for in Appendix G 

of this Pension Plan. 

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Section 1.23 ONE-YEAR BREAK-IN-SERVICE 

(a) Before January 1, 1976, a One-Year Break-in-Service is a calendar year 

with less than 10 weeks of Covered Service. 

(b) On and after January 1, 1976, a One-Year Break-in-Service is a calendar 

year during which the sum of (1), (2), (3) and (4) is less than one. 

(1) The number of weeks of Vesting Service due to employment 

under a Collective Bargaining Agreement requiring weekly 

Contributions divided by 10; and 

(2) The number of days of Vesting Service due to employment under 

a Collective Bargaining Agreement requiring daily Contributions 

limited to a 5 day per week maximum divided by 37; and 

(3) The number of days of Vesting Service due to employment under 

a Collective Bargaining Agreement requiring daily Contributions 

not limited to a 5 day per week maximum divided by 45; and 

(4) The number of hours of Vesting Service due to Continuous 

Compensated Employment (as defined in Section 1.36(f)) for 

which no Contributions are required divided by 450. 

(c) Before January 1, 1976 and only for the purpose of determining whether 

a One-Year Break-in-Service has been sustained, a Participant shall be 

treated as having been in Covered Service for any period during which he 

was unable to work because of illness, injury, disability or because he 

honored an approved strike. On and after January 1, 1976 and only for 

the purpose of determining whether a One-Year Break-in-Service has 

been sustained, a Participant shall be treated as having earned Vesting 

Service for any period during which he was unable to work because of 

illness, injury, disability or because he honored an approved strike. 

(d) A Participant who stops working in Covered Service on or after January 1, 

1985 because of a pregnancy, the birth of a child, the adoption of a child, 

or to care for a child recently born or adopted, shall receive Vesting 

Service sufficient to avoid having a One-Year Break-in-Service in either: 

(1) the calendar year in which his leave begins, if the Vesting Service 

is required to avoid having a One-Year Break-in-Service during 

that calendar year; or, if not, 

(2) the calendar year immediately following the calendar year in which 

his leave begins. 

(e) A Participant shall not be eligible to earn any Vesting Service during a 

calendar year if any duplication of Vesting Service results from the 

application of (b), (c) and (d) above, or any combination thereof. 

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Section 1.24 PARTICIPANT 

(a) A Participant of any earlier version of the Pension Plan becomes a 

Participant of this Pension Plan if: 

(1) he has not had a One-Year Break-in-Service during 1984; or 

(2) he has had a Year of Participation ending after December 31, 

1984; or 

(3) he is receiving, or is eligible to receive, a Twenty-Year Service 

Pension Benefit, an Early Retirement Pension Benefit, a Vested 

Pension Benefit or a Disability Pension Benefit from the Pension 

Plan in effect on December 31, 1984. 

(b) An Employee shall become a Participant as of the date the first 

Contribution is made on his behalf during a Year of Participation which 

ends after December 31, 1984. 

(c) A Participant of the Pension Plan in effect on December 31, 1984 who 

does not meet any of the conditions stated in (a) and (b), above, shall 

continue to be governed by the provisions of the Pension Plan in effect on 

December 31, 1984. 

(d) A Participant shall no longer be a Participant on the date of his death, or 

on the date he receives all benefits due him, or on the date he sustains a 

Break-in-Service. 

(e) Neither membership nor lack of membership in any labor organization 

shall be a basis for becoming a Participant in, or determining eligibility to 

receive benefits from the Pension Fund. 

Section 1.25 PENSIONER 

A Participant becomes a Pensioner on the date he begins to receive payment of 

the retirement pension for which he is eligible. 

Section 1.26 PENSION FUND means, the Central States, Southeast and Southwest Areas 

Pension Fund established by the Trust Agreement. 

Section 1.27 PENSION PLAN means, the rules and regulations for the payment of benefits 

from the employee benefit plan described in this document as well as any 

amendments to this document. 

Section 1.28 RECOVERY OF LOST SERVICE CREDIT 

A Participant who first became a Participant prior to April 1, 1985, and who 

sustains a Break-in-Service, shall recover one year of his lost Service Credit as 

Non-Contributory Service Credit for each year of Contributory Service Credit he 

earns on or after the later of: 

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(a) January 1, 1973; or 

(b) his last employment or re-employment date following his last Break-inService. 

Section 1.29 RETIREMENT DATE is, the date a Participant stops working in Covered Service 

and terminates his employment. A Participant eligible for a retirement pension 

may become eligible to receive benefit payments on the 1st day of the month 

following his Retirement Date. 

Section 1.30 SERVICE CREDIT means, the combined Contributory Service Credit and NonContributory Service Credit earned by a Participant, subject to the Break-inService and One-Year Break-in-Service provisions of this Pension Plan. A 

Participant shall not earn more than one year of Service Credit during a calendar 

year. 

Section 1.31 TEAMSTER CONTRACT means, any collective bargaining agreement between 

an employer and a local union affiliated with the International Brotherhood of 

Teamsters, Chauffeurs, Warehousemen and Helpers of America. 

Section 1.32 TRUST AGREEMENT means, the Agreement and Declaration of Trust for 

Central States, Southeast and Southwest Areas Pension Fund as originally made 

and entered into on March 16, 1955, together with any amendments. 

Section 1.33 UNION means, those local unions which the Board of Trustees determines to 

have been affiliated Local Unions of the Central Conference of Teamsters and 

the Southern Conference of Teamsters when those two conferences were 

dissolved in or around June, 1994, and such other unions as the Board of 

Trustees may agree upon. 

Section 1.34 VESTED PARTICIPANT 

A Participant becomes a Vested Participant if: 

(a) he is an Active Participant or a Disabled Participant who has reached his 

Normal Retirement Date; or 

(b) he is an Active Participant or an Inactive Participant who has not reached 

his 65th birthday, but who has earned at least 3 Vesting Service Years 

after December 31, 1970, and has a total of at least: 

(1) 10 Vesting Service Years; or 

(2) 5 Vesting Service Years from employment performed outside a 

Bargaining Unit and at least One Hour of Service of such 

employment is after December 31, 1988; or 

(3) 5 Vesting Service Years from employment performed within a 

Bargaining Unit and at least one Hour of Service of such 

employment is after December 31, 1998; or 

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(4) 5 Vesting Service Years from a combination of employment 

performed outside a Bargaining Unit and employment performed 

within a Bargaining Unit (provided that such combined 

employment is based in part upon at least one Hour of Service 

after December 31, 1998). 

Section 1.35 VESTED PENSION RETIREMENT DATE (NORMAL RETIREMENT DATE) 

(a) Normal Retirement Date of a Participant means the later of: 

(1) the 65th birthday of an Employee; or 

(2) the 5th anniversary of the date on which an Employee first 

became an Active Participant. 

(b) Normal Retirement Date is used to determine the date on which a 

Participant’s Vested Pension becomes payable without reduction. 

Section 1.36 VESTING SERVICE 

(a) Vesting Service is earned for Continuous Compensated Employment of 

an Active Participant or an Inactive Participant by a Contributing 

Employer. “Continuous Compensated Employment” means, employment 

performed while a member of the Bargaining Unit, and employment 

outside of a Bargaining Unit if such employment is performed immediately 

before or after Bargaining Unit employment with the same Contributing 

Employer and if it is not interrupted by a quit, discharge or retirement. 

(b) An Employee who becomes a Participant on or after April 1, 1985, and 

whose Bargaining Unit was accepted in this Pension Fund according to 

the Acceptance Policies in Appendix G of this Pension Plan, shall, in 

addition to (a) above, be eligible to earn one hour of Vesting Service for 

each Hour of Service of his continuous past employment with the 

Contributing Employer that became required to make Employer 

Contributions on his behalf. 

(c) If a Collective Bargaining Agreement covering an Employee requires his 

Contributing Employer to make weekly Contributions, then he shall earn 

one week of Vesting Service for each week that he performs an Hour of 

Service and a weekly Contribution is required on his behalf. 

(d) If a Collective Bargaining Agreement covering an Employee requires his 

Contributing Employer to make daily Contributions limited to a maximum 

of 5 days per week, then he shall earn one day of Vesting Service for 

each day that he performs one Hour of Service and a daily Contribution is 

required on his behalf. 

(e) If a Collective Bargaining Agreement covering an Employee requires his 

Contributing Employer to make daily Contributions not limited to a 

maximum of 5 days per week, then he shall earn one day of Vesting 

Service for each day that he performs one Hour of Service and a daily 

Contribution is required on his behalf. 

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(f) One Hour of Vesting Service is earned for each Hour of Service of 

Continuous Compensated Employment for periods during which no 

Contributions are required on behalf of an Employee. 

(g) Vesting Service also includes any period of service in the Uniformed 

Services for which a Participant is entitled, based upon Section 1.09(c), to 

Contributory Service. 

Section 1.37 VESTING SERVICE YEAR means, a calendar year during which the sum of (a), 

(b), (c), (d), and (e), below, equals or exceeds one. 

(a) The number of weeks of Vesting Service due to employment under a 

Collective Bargaining Agreement requiring weekly Contributions divided 

by 20; and 

(b) The number of days of Vesting Service due to employment under a 

Collective Bargaining Agreement requiring daily Contributions limited to a 

maximum of 5 days per week divided by 75; and 

(c) The number of days of Vesting Service due to employment under a 

Collective Bargaining Agreement requiring daily Contributions not limited 

to a maximum of 5 days per week divided by 90; and 

(d) The number of hours of Vesting Service due to Continuous Compensated 

Employment for which no Contributions are required divided by 900. 

(e) The number of hours of Vesting Service a Participant earned due to his 

continuous past employment with the Contributing Employer that became 

required to make Employer Contributions on his behalf divided by 900, if 

his Bargaining Unit was accepted according to the Acceptance Policies in 

Appendix G of this Pension Plan. 

Section 1.38 WITHDRAWAL OF AN EMPLOYEE GROUP 

(a) Regardless of any other rules or provisions in this Pension Plan, any 

Participant, who was a member of an Employee Group at the time of its 

Voluntary Withdrawal from the Pension Plan, shall, subject to the 

following sentence, lose all right and claim to Non-Contributory Service 

Credit. This provision shall take effect if on or after the applicable date 

specified in Section 1.19(a), the Participant is employed by the same 

employer that made Contributions on his behalf immediately before the 

Voluntary Withdrawal and is performing or supervising work that was 

covered by the Collective Bargaining Agreement in effect immediately 

before the Voluntary Withdrawal. 

(b) A “Voluntary Withdrawal” occurs on the date a Contributing Employer is 

no longer required to make Employer Contributions to the Pension Fund 

as a result of actions by members of a Bargaining Unit, which actions 

include, but are not limited to the following: 

(1) decertification or other removal of the Union as a bargaining 

agent; and 

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(2) ratification or other acceptance of a Collective Bargaining 

Agreement which permits withdrawal of the Bargaining Unit, in 

whole or in part, from the Pension Plan. 

(c) Any Participant whose Bargaining Unit was accepted according to the 

Acceptance Policies in Appendix G of this Pension Plan, shall 

immediately lose all right and claim to any Vesting Service, NonContributory Service Credit and Contributory Service Credit he may have 

earned before Employer Contributions began on his behalf, if within the 

“Five-Year Free Look” period defined in Section 8 of Appendix E of this 

Pension Plan, Employer Contributions are no longer required to be made 

on behalf of the members of the Bargaining Unit of which he was a 

member on the date he became a Participant. 

Section 1.39 YEAR OF EMPLOYMENT means: 

(a) The 12 consecutive month period which begins on the date an Employee 

becomes employed or reemployed by a Contributing Employer and which 

ends on his 1st anniversary date of employment or reemployment; and 

(b) Any calendar year that begins after the calendar year an Employee 

became employed or reemployed by a Contributing Employer, if the 1st 

anniversary date of his employment or reemployment occurs during that 

calendar year. 

Section 1.40 YEAR OF PARTICIPATION means, a Year of Employment during which the sum 

of (a), (b), and, (c) below, equals or exceeds 1. 

(a) The number of weeks of Contributory Service due to employment under a 

Collective Bargaining Agreement requiring weekly Contributions divided 

by 20; and 

(b) The number of days of Contributory Service due to employment under a 

Collective Bargaining Agreement requiring daily Contributions limited to a 

maximum of 5 days per week divided by 75; and 

(c) The number of days of Contributory Service due to employment under a 

Collective Bargaining Agreement requiring daily Contributions not limited 

to a maximum of 5 days per week divided by 90. 

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ARTICLE II EFFECTIVE DATE * 

The provisions of this Pension Plan are applicable to every individual who is a 

Participant of this Pension Plan on any date on and after January 1, 1985, and to every 

beneficiary of such a Participant, except to the extent determination of the rights of such 

Participant or beneficiary was or is based upon a Retirement Date, death or disability 

prior to January 1, 1985. The provisions of this Pension Plan govern the consequences 

of all events on and after January 1, 1985 (such as any Retirement Date, death, 

disability, Covered Service, One-Year Break-in-Service, Break-in-Service, 

Reemployment and Suspension of Benefits Rules and Withdrawal of a Bargaining Unit). 

The provisions of this Pension Plan govern the consequences of events prior to January 

1, 1985 only to the extent such events are relevant to determination of the rights of a 

Participant of this Pension Plan, or a beneficiary of such a Participant, based upon a 

Retirement Date, death or disability on or after January 1, 1985. To the extent this 

Pension Plan is not applicable, a relevant earlier version of this Pension Plan is 

applicable. 

* This Article II was adopted at the same time as a complete restatement of this Pension Plan was 

approved by the Board of Trustees in 1985. Post-1985 amendments of this restated Pension Plan 

are effective as of separate dates after 1985, as determined by the Board of Trustees at the time it 

adopts those plan amendments. 

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ARTICLE III BENEFIT CLASS 

Section 3.01 BENEFIT CLASS OF A COLLECTIVE BARGAINING AGREEMENT 

(a) A Collective Bargaining Agreement shall be acceptable only if such 

agreement requires a Contributing Employer to make Employer 

Contributions: 

(1) on behalf of each Employee who receives compensation for any 

part of an applicable Contribution period; and 

(2) in accordance with the billing and collection procedures 

established by the Board of Trustees; and 

(3) at the same rate on behalf of all Employees in a Bargaining Unit, 

except as otherwise provided in Appendix J of this Pension Plan; 

and 

(4) at the same rate or a higher rate than that which was in effect 

during the preceding 12 month period; and 

(5) at Contribution rates at least equal to minimum Employer 

Contribution requirements adopted by the Board of Trustees and 

applicable to the Collective Bargaining Agreement, including the 

requirements stated in Appendix K-1 and Appendix K-2 of this 

Pension Plan; and 

(6) for the entire term of such Collective Bargaining Agreement. 

The Board of Trustees shall have the authority to reject any Collective 

Bargaining Agreement that fails to meet any of the requirements above. 

(b) To maintain an existing Benefit Class, the Contribution rate in a Collective 

Bargaining Agreement must correspond to the Contribution Schedule 

adopted by the Board of Trustees for that Benefit Class. 

(c) No Collective Bargaining Agreement will be permitted to increase 

the Benefit Class of any Employee in a Bargaining Unit covered by 

that agreement, at any time after December 31, 2003, except to the 

extent of the following limited circumstances:

(1) Benefit Class increases will be permitted for any purpose, 

including eligibility for a Contributory Credit Pension (Section 

4.04), a 25-And-Out Pension (Section 4.05) and a 30-And-Out 

Pension (Section 4.06), to the extent that the increase is 

based upon the terms of a Collective Bargaining Agreement 

which was accepted by the Pension Fund on a date prior to 

November 18, 2003, provided that no such Benefit Class 

increase will be permitted if it is based upon any amendment 

of the previously accepted agreement which is first received 

by the Pension Fund after November 17, 2003; and 

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(2) Benefit Class increases will be permitted at any time to 

establish eligibility for (only) a Twenty-Year Service Pension 

(Section 4.01), an Early Retirement Pension (Section 4.02), a 

Deferred Pension (Section 4.08) or a Twenty-Year Deferred 

Pension (Section 4.09); and 

(3) if a Participant as of December 31, 2003, does not have 

Continuous Contributions and he has not as of that date ever 

received benefits from the Pension Fund, Benefit Class 

increases will be permitted at any time after December 31, 

2003, to enable the Participant to restore only any Benefit 

Class he had earned and then lost before December 31, 2003, 

as a result of a One-Year Break-in-Service or a change in 

Bargaining Units, provided that the method of such 

restoration will be limited to calculations based upon the 

Non-Continuous Contribution Method specified in Section 

3.03(b) and applied as of his Retirement Date. 

For any period prior to January 1, 2004 (and for the limited post-2003 

exceptions specified in the preceding sentence), a Collective Bargaining 

Agreement can result in an increase of the Benefit Class of the 

Employees in the Bargaining Unit covered by that agreement to the next 

higher Benefit Class if the Contribution rate in the agreement corresponds 

to the Contribution Schedule adopted by the Board of Trustees for that 

next higher Benefit Class, provided that the increased Contribution rate 

must extend for at least 12 months during the term of the Collective 

Bargaining Agreement. For any period prior to January 1, 2004 (and for 

the limited post-2003 exceptions specified in the first sentence of this 

subsection [c]), the Benefit Class of a Collective Bargaining Agreement 

can result in an increase to the next higher Benefit Class only one time 

during a 12-month period, except that a one-time increase to higher than 

the next higher Benefit Class may be permitted if a Contributing Employer 

was making Contributions at a rate corresponding to Benefit Classes 

15(A) or 15(B) and then entered into a Collective Bargaining Agreement 

requiring Contributions at rates corresponding to Benefit Classes 16(A), 

16(B) and 16(C). This exception is described in Sections 4.01(b)(1)(B) 

and 4.06(c)(3)(A)(ii). 

(d) The Board of Trustees has adopted the following 2 Schedules of Benefit 

Classes and Required Minimum Contribution Rates which are referred to 

as “Schedule A” and “Schedule B”: 

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(1) SCHEDULE A 

SCHEDULE A OF BENEFIT CLASSES 

AND REQUIRED MINIMUM CONTRIBUTION RATES 

 

 Maximum Weekly Employer

 Benefit Twenty-Year Service Contribution

 Class Pension Benefits Rates 

 57 Age 60 Plus

 through 

 59 

 

 ( 1) $ 60 $ 60 $ 5.00 

 ( 2) 90 90 7.00 

 ( 2A) 125 125 9.00 

 ( 3) 140 170 11.00 

 ( 3A) 170 210 13.00 

 ( 4) 225 275 16.00 

 ( 5) 260 315 18.50 

 ( 6) 285 350 21.00 

 ( 7) 330 400 24.00 

 ( 8) 365 445 27.00 

 ( 9) 400 485 30.00 

 (10) 435 530 33.00 

 (11) 490 595 37.00 

 (12) 575 675 41.00 

 (13) 600 725 46.00 

 (14) 625 775 51.00 

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(2) SCHEDULE B 

SCHEDULE B OF BENEFIT CLASSES AND 

REQUIRED MINIMUM WEEKLY CONTRIBUTION RATES 

 Maximum Weekly 

 Benefit Twenty-Year Service Employer 

 Class Pension Benefits Contribution 

 Ages Rates 

 60 

 57 58 59 through 65 Plus 

 64 

1 $ 60 $ 60 $ 60 $ 60 $ 60 $ 6.00 

2 90 90 90 90 90 8.00 

2 (A) 125 125 125 125 125 10.00 

3 140 140 140 170 170 12.00 

3 (A) 170 170 170 210 210 15.00 

4 225 225 225 275 275 18.00 

5 260 260 260 315 315 21.00 

6 285 285 285 350 350 24.00 

7 330 330 330 400 400 27.00 

8 365 365 365 445 445 30.00 

9 400 400 400 485 485 33.00 

10 435 435 435 530 530 36.00 

11 490 490 490 595 595 40.00 

12 575 575 575 675 675 44.00 

13 600 600 600 725 725 49.00 

14 625 625 625 775 775 55.00 

15 

(A) 700 750 800 900 900 61.00 

(B) 700 750 800 900 900 65.00 

(C) 700 750 800 900 900 69.00 

(C) 700 750 800 900 900 73.00 

16 

(A) 700 750 800 900 1,100 79.00 

(B) 700 750 800 900 1,100 83.00 

(C) 700 750 800 900 1,100 85.00 

17a 

(A) 700 750 800 900 1,100 91.00 

(B) 700 750 800 900 1,100 100.00 

(C) 700 750 800 900 1,100 109.00 

(D) 700 750 800 900 1,100 118.00 

17b 

(A) 700 750 800 900 1,100 91.00 

(B) 700 750 800 900 1,100 100.00 

(C) 700 750 800 900 1,100 110.00 

(D) 700 750 800 900 1,100 124.00 

18 

(A) 700 750 800 900 1,100 122.00* 

(A) 700 750 800 900 1,100 124.00* 

(B) 700 750 800 900 1,100 136.00 

(C) 700 750 800 900 1,100 150.00 

(D) 700 750 800 900 1,100 158.00 

(E) 700 750 800 900 1,100 166.00 

18+ 

(A) 700 750 800 900 1,100 150.00 

(B) 700 750 800 900 1,100 164.00 

(C) 700 750 800 900 1,100 172.00 

 (D) 700 750 800 900 1,100 180.00 

* If the Bargaining Unit is moving from Benefit Class 17a to Benefit Class 18, the weekly 

contribution rate for the first year is $122.00; otherwise it is $124.00 

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SCHEDULE B OF BENEFIT CLASSES AND 

REQUIRED MINIMUM DAILY CONTRIBUTION RATES 

 Maximum Daily

Benefit Twenty-Year Service Employer 

 Class Pension Benefits Contribution 

 Ages Rates

 57 58 59 60 65 Plus

 through 

 64 

15 

(A) $700 $750 $800 $900 $ 900 $13.00 

(B) 700 750 800 900 900 13.80 

(C) 700 750 800 900 900 14.60 

16 

(A) 700 750 800 900 1,100 16.60 

(B) 700 750 800 900 1,100 17.40 

(C) 700 750 800 900 1,100 17.80 

17a 

(A) 700 750 800 900 1,100 19.00 

(B) 700 750 800 900 1,100 20.80 

(C) 700 750 800 900 1,100 22.60 

(D) 700 750 800 900 1,100 24.40 

17b 

(A) 700 750 800 900 1,100 18.80 

(B) 700 750 800 900 1,100 20.60 

(C) 700 750 800 900 1,100 22.80 

(D) 700 750 800 900 1,100 25.60 

18 

(A) 700 750 800 900 1,100 25.20** 

(A) 700 750 800 900 1,100 25.60** 

(B) 700 750 800 900 1,100 28.00 

(C) 700 750 800 900 1,100 30.80 

(D) 700 750 800 900 1,100 32.40 

(E) 700 750 800 900 1,100 34.00 

18+ 

(A) 700 750 800 900 1,100 30.80 

(B) 700 750 800 900 1,100 33.60 

(C) 700 750 800 900 1,100 35.20 

(D) 700 750 800 900 1,100 36.80 

 

 ** If the Bargaining Unit is moving from Benefit Class 17a to Benefit Class 18, the daily 

contribution rate for the first year is $25.20; otherwise it is $25.60. 

Benefit Class 18+ of a Participant must be based upon the Continuous Contribution 

Method and not upon the Non-Continuous Contribution Method or any other method. 

(e) All references and cross references to Benefit Class 15 and higher shall 

include any or all of the Contribution rates designated (A), (B) and (C) for 

Benefit Class 15, (A), (B) and (C) for Benefit Class 16, (A), (B), (C) and 

(D) for Benefit Classes 17a and 17b unless a particular Contribution rate 

of a particular Benefit Class is specified, and (A), (B), (C), (D) and (E) for 

Benefit Class 18 and 18+ unless a particular Contribution rate of a 

particular Benefit Class is specified. 

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TM:538126 / 01096280 / 01/01/2015 

(f) A Contributing Employer that makes Contributions under Benefit Class 

17a shall, upon expiration of the Collective Bargaining Agreement 

providing for such Benefit Class, be permitted to continue Contributions 

under the highest rate of such Benefit Class or negotiate to a higher 

Benefit Class, but shall not be permitted to negotiate to Benefit Class 17b. 

A Contributing Employer that makes Contributions under Benefit Class 

17b shall likewise be permitted to continue Contributions at the highest 

rate of such Benefit Class or move to a higher Benefit Class, but shall not 

be permitted to negotiate Benefit Class 17a. 

(g) Benefit Classes 17a and 17b are parallel (equivalent) Benefit Classes 

with neither being lower or higher than the other. A Participant who 

moves from one of these Benefit Classes to the other as a result of a 

change in Bargaining Units shall have his Benefit Class determined by 

the provisions of Article III, Section 3.02(c). 

(h) The Pension Fund shall not accept a Collective Bargaining Agreement or 

a renewal of a Collective Bargaining Agreement that switches from 

Schedule B Contribution rates to Schedule A Contribution rates. 

(i) Any Contribution made at a rate which does not correspond to the 

Contribution rates for the Benefit Classes in (d)(1), or (d)(2), above, shall 

be treated as a Contribution made at the next lower Benefit Class. 

(j) In addition to the Schedules of Benefit Classes and Required Minimum 

Contribution Rates (referred to as ‘Schedule A’ and ‘Schedule B’), which 

are provided in (d), above, the Board of Trustees has adopted Appendix 

K-1 and Appendix K-2 of this Pension Plan (entitled ‘MINIMUM 

EMPLOYER CONTRIBUTION REQUIREMENTS’). 

Section 3.02 CONTINUOUS CONTRIBUTIONS 

(a) Contributions made on behalf of a Participant are Continuous 

Contributions if the following conditions are met: 

(1) At least 250 weeks of Contributions are required to be made on 

his behalf where: 

(A) the Contributions are not interrupted by the Participant 

having a One-Year Break-in-Service; and 

(B) the Contributions are not interrupted by any period during 

which the Participant receives benefits from the Pension 

Fund; and 

(C) the Contributions: 

(i) prior to April 1,1991, are not interrupted by the 

Participant changing Bargaining Units and having 

Contributions made on his behalf at a rate 

corresponding to a lower Benefit Class or a rate 

higher than the next higher Benefit Class; and 

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TM:538126 / 01096280 / 01/01/2015 

(ii) on or after April 1, 1991, are not interrupted by a 

Participant changing Bargaining Units and having 

Contributions made on his behalf at a rate 

corresponding to a lower or higher Benefit Class, 

except that, if he changes Bargaining Units as a 

result of his Contributing Employer ceasing 

business operations because of a bankruptcy, his 

Contributions shall remain Continuous 

Contributions unless made at a rate corresponding 

to a lower Benefit Class or to a Benefit Class higher 

than the next higher Benefit Class. 

(2) The Participant meets at least one of the following requirements: 

(A) he has at least a Year of Participation in each of the last 5 

calendar years; or 

(B) he has at least 150 weeks of Contributions in the last 5 

calendar years. 

(b) For purposes of (a) above, 5 days of Contributions required to be made 

on behalf of a Participant shall be considered equivalent to one week of 

Contributions. 

(c) A Participant who has Continuous Contributions at Benefit Class 17a or 

17b and who, as a result of a change in Bargaining Units, moves from 

one of these Benefit Classes to the other, shall be considered to have 

Continuous Contributions at the Benefit Class (17a or 17b) from which he 

moved unless and until he either: (1) moves to a Benefit Class lower than 

17a or 17b, or (2) establishes Continuous Contributions at the Benefit 

Class of his new Bargaining Unit by having 250 weeks of Contributions 

made on his behalf after the date of his change in Bargaining Units. 

(d) Contributions required to be made on behalf of a Participant may be 

disregarded and will not be considered Continuous Contributions if those 

Contributions cause the Participant to fail to meet the conditions of (a), 

above. 

(e) All Continuous Contributions required to be made on behalf of a 

Participant shall be treated as having been made at the Benefit Class or 

Contribution rate corresponding to his last Continuous Contribution. 

(f) A Participant whose Bargaining Unit was accepted according to the 

Acceptance Policies in Appendix G, shall not have Continuous 

Contributions and shall have his Benefit Class determined by Section 

3.03(b) unless and until he has had at least 250 weeks of Contributions 

required to be made on his behalf according to (a), above. 

36.1.35
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Section 3.03 BENEFIT CLASS OF A PARTICIPANT 

The Benefit Class of a Participant is determined by one of the following two 

methods: 

(a) CONTINUOUS CONTRIBUTION METHOD: The Benefit Class of a 

Participant who had Continuous Contributions during his last 5 calendar 

years shall be the Benefit Class corresponding to the rate of his last 

weekly Continuous Contribution (or his last daily Continuous Contribution) 

in effect for at least his last 52 weeks of Contributory Service (except that 

the last rate will be for a shorter period [instead of his last 52 weeks] only 

in the following limited circumstances: it will be the rate in effect for his 

last 5 days of Contributory Service if his final Contributory Service ended 

before January 1, 2004; and it will be the rate in effect for his last 5 days 

of Contributory Service [or his last 10 days of Contributory Service in 

Benefit Class 17b, 18, or 18+] if the last rate was based upon the terms of 

a Collective Bargaining Agreement which was accepted by the Pension 

Fund on a date prior to January 1, 2004, and the agreement increased 

the Participant’s Benefit Class to Benefit Class 15[A] or higher). 

(b) NON-CONTINUOUS CONTRIBUTION METHOD: The Benefit Class of a 

Participant who did not have Continuous Contributions during his last 5 

calendar years shall be determined as follows: 

(1) The total dollar amount of Contributions made on behalf of the 

Participant during his last 250 weeks of Contributions is calculated 

by using the rates at which the Contributions were made where: 

(A) 5 days of Contributions shall be equivalent to one week of 

Contributions and the dollar amount shall be the equivalent 

weekly Contribution; and 

(B) the dollar amount of the earliest week of Contributions 

included in the 250 week period shall be multiplied by the 

fraction representing the portion of that week needed to 

make up the last week of the 250 weeks of Contributions. 

(2) The dollar amount totaled in (1), above, is divided by 250 and 

rounded to the next highest whole dollar amount. 

(3) One of the following two schedules is used: 

(A) If the Participant’s last 250 weeks of Contributions have 

been made only at Schedule B Contribution rates, the 

result of (2) above is compared to the weekly Contribution 

rates under Schedule B. If an exact match is found, the 

Benefit Class of the Participant is the Benefit Class 

corresponding to that weekly Contribution rate; otherwise, 

the Benefit Class of the Participant is the Benefit Class 

corresponding to the next lower weekly Contribution rate. 

SPECIAL BENEFIT CLASS 17a AND 17b RULE: In the 

event the result of (2), above, matches the weekly 

Contribution rates under both Benefit Classes 17a and 

17b, the Benefit Class of the Participant shall be Benefit 

Class 17a if he has had more Contributions made on his 

behalf at Benefit Class 17a than at Benefit Class 17b, or 

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TM:538126 / 01096280 / 01/01/2015 

Benefit Class 17b if he has had more Contributions made 

on his behalf at Benefit Class 17b than at Benefit Class 

17a. If the Contributions made on behalf of the Participant 

are equally divided between Benefit Classes 17a and 17b, 

or if he has never had Contributions made on his behalf at 

either of these classes, his Benefit Class shall be the 

Benefit Class, either 17a or 17b, that provides him with the 

greatest benefit. In no event, shall the resulting Benefit 

Class of the Participant exceed the highest Benefit Class 

for which Contributions were made on his behalf during his 

last 250 weeks of Contributions. 

(B) If any of the Participant’s last 250 weeks of Contributions 

have been made at Schedule A rates, the result of (2) 

above is compared to the weekly Contribution rates under 

Schedule A or Schedule B, whichever produces the 

greatest benefit. If an exact match is found, the Benefit 

Class of the Participant is the Benefit Class corresponding 

to that weekly Contribution rate; otherwise, the Benefit 

Class of the Participant is the Benefit Class corresponding 

to the next lower weekly Contribution rate. SPECIAL 

BENEFIT CLASS 17a AND 17b RULE: In the event the 

result of (2), above, matches the weekly Contribution rates 

under both Benefit Classes 17a and 17b, the Benefit Class 

of the Participant shall be Benefit Class 17a if he has had 

more Contributions made on his behalf at Benefit Class 

17a than at Benefit Class 17b, or Benefit Class 17b if he 

has had more Contributions made on his behalf at Benefit 

Class 17b than at Benefit Class 17a. If the Contributions 

made on behalf of the Participant are equally divided 

between Benefit Classes 17a and 17b, or if he has never 

had Contributions made on his behalf at either of these 

classes, his Benefit Class shall be the Benefit Class, either 

17a or 17b, that provides him with the greatest benefit. In 

no event, shall the resulting Benefit Class of a Participant 

exceed the highest Benefit Class for which Contributions 

were made on his behalf during his last 250 weeks of 

Contributions. 

(4) A Participant who has not had at least 250 weeks of Contributions 

made on his behalf, shall have his Benefit Class determined 

according to (b)(1), (2) and (3) above, except that: 

(A) The total dollar amount of all Contributions made on his 

behalf shall be used in lieu of the total dollar amount of his 

last 250 weeks of Contributions; and 

(B) The number of weeks of Contributions made on his behalf 

shall be used in lieu of 250. 

Section 3.04 BENEFIT CLASS MAINTENANCE 

(a) A Participant who changes Bargaining Units and becomes covered by a 

Collective Bargaining Agreement requiring Contributions at a lower or 

higher Benefit Class shall have a period of “temporary maintenance” 

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during which he (and any individual claiming benefits because of his 

death) shall be eligible to have benefits determined by his Benefit Class 

before his change of Bargaining Units. 

(b) The period of “temporary maintenance” in (a), above, shall end on the 

earlier of: 

(1) the end of the 5th calendar year following the last calendar year in 

which the Participant had at least 20 weeks of Contributions made 

on his behalf at his Benefit Class before his change in Bargaining 

Units; or 

(2) the date the Participant first becomes eligible for a Twenty-Year 

Service Pension, Early Retirement Pension, Deferred Pension or 

Twenty-Year Deferred Pension, except that, a Participant who is 

already eligible for one of these benefits at the time he changes 

Bargaining Units shall not have any temporary maintenance. 

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ARTICLE IV RETIREMENT PENSION BENEFITS 

Section 4.01 TWENTY-YEAR SERVICE PENSION 

(a) To become eligible for a Twenty-Year Service Pension, an Active 

Participant must meet each of the following requirements at the time he 

stops working in Covered Service or becomes an Inactive Participant: 

(1) he must have reached at least his 57th birthday; and 

(2) he must have at least 20 years of Service Credit; and 

(3) he must have met the Minimum Contribution Requirement. 

(b) The monthly amount of the Twenty-Year Service Pension is determined 

by the Benefit Class of a Participant and by his age, except that, in 

addition to his Benefit Class and age, he will not become eligible for the 

$1,100 age 65 monthly amount unless and until he meets the following 

requirements: 

(1) he has, on or after April 1, 1991, at least 5 days or one week of 

Employer Contributions (and not Self-Contributions) made on his 

behalf at a rate corresponding to Benefit Class 16(A) or higher 

and: 

(A) his Contributing Employer previously made Contributions 

at a rate corresponding to Benefit Class 15(C) or higher 

and his current Benefit Class, determined according to 

Section 3.03(a), is (16A) or higher; or 

(B) his Contributing Employer previously made Contributions 

at a rate corresponding to either Benefit Class 15(A) or 

15(B) but not Benefit Class 15(C), his current Benefit 

Class, determined according to Section 3.03(a), is 16(A) or 

higher and his Contributing Employer has been making 

Contributions at a rate corresponding to Benefit Class 

16(A) or higher for at least 12 months preceding his 

Retirement Date; or 

(C) his Benefit Class, determined according to Section 3.03(b), 

is 16(A) or higher; and 

(2) he is covered by a Collective Bargaining Agreement requiring his 

Contributing Employer to begin making Contributions at a rate 

corresponding to at least Benefit Class 16(C) no later than 24 

months after the date the last Contribution is made on his behalf. 

(c) The monthly amount of the Twenty-Year Service Pension payable to a 

Participant shall never be less than the monthly amount of any other 

retirement benefit he was eligible to receive from this Pension Fund at the 

end of any preceding calendar year. 

(d) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

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Claim Filing Procedures (as described in Section 7.14), the Twenty-Year 

Service Pension becomes payable to a Participant on the 1st day of the 

month following the month in which his age was calculated according to 

(b), above, except that, a Participant whose Retirement Date follows the 

date on which his age was calculated, shall have his Twenty-Year Service 

Pension become payable on the 1st day of the month following his 

Retirement Date. 

(e) The Pension Fund is not liable for benefits based upon this Section 4.01 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 4.02 EARLY RETIREMENT PENSION 

(a) To become eligible for an Early Retirement Pension, an Active Participant 

must meet one of the following two requirements at the time he stops 

working in Covered Service or becomes an Inactive Participant: 

(1) If the Participant has not reached his 50th birthday: 

(A) he must have at least 30 years of Service Credit; and 

(B) he must have met the Minimum Contribution Requirement. 

(2) If the Participant has reached at least his 50th birthday: 

(A) he must have at least 20 years of Service Credit; and 

(B) he must have met the Minimum Contribution Requirement. 

(b) The monthly amount of the Early Retirement Pension is a reduced 

Twenty-Year Service Pension determined by the Benefit Class of a 

Participant and by his age. A Participant may choose to have his age 

calculated as of any date which does not precede his Retirement Date or 

extend beyond the date he becomes an Inactive Participant, except that, 

a Participant who becomes an Inactive Participant prior to his Retirement 

Date and who does not again become an Active Participant shall have his 

age determined as of the date he became an Inactive Participant. The 

reduction is 1⁄2 of 1% for each month the Participant’s Retirement Date 

precedes his 57th birthday, and is applied to the age 57 amount of his 

Benefit Class. 

(c) The monthly amount of the Early Retirement Pension payable to a 

Participant shall never be less than the monthly amount of any other 

retirement benefit he was eligible to receive from this Pension Fund at the 

end of any preceding calendar year. 

(d) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

Claim Filing Procedures (as described in Section 7.14), the Early 

Retirement Pension becomes payable to a Participant on the 1st day of 

the month following the month in which his age was calculated according 

to (b), above, except that, a Participant whose Retirement Date follows 

the date on which his age was calculated, shall have his Early Retirement 

36.1.40
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Pension become payable on the 1st day of the month following his 

Retirement Date. 

(e) The Pension Fund is not liable for benefits based upon this Section 4.02 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 4.03 CONTRIBUTION-BASED PENSION 

(a) To become eligible for a Contribution-Based Pension, a Participant must 

meet each of the following requirements: 

(1) he must be a Vested Participant; and 

(2) he must not have received payment of any benefit from this 

Pension Fund before January 1, 1987, except that, this 

requirement shall be waived if a Pensioner, after his Retirement 

Date, becomes employed by a Contributing Employer and meets 

the requirements of Article IV, Section 4.14(a). 

(b) Subject to sub-section (d), below, the Contribution-Based Pension of a 

Participant is his Accrued Benefit as determined in Article I, Section 

1.01(b). 

(c) For purposes of determining the amount of his Contribution-Based 

Pension, a Vested Participant may choose to have his age calculated as 

of any date which does not precede his Retirement Date. 

(d) The monthly amount of the Contribution-Based Pension payable to a 

Vested Participant is either: 

(1) the amount calculated in (b), above if: 

(A) the Vested Participant has reached at least his 62nd 

birthday and has at least 20 years of Service Credit; or 

(B) the Vested Participant has reached at least his 65th 

birthday and has less than 20 years of Service Credit; or 

(2) the amount calculated in (b), above, reduced by 1⁄2 of 1% for each 

month the age of a Vested Participant precedes his: 

(A) 62nd birthday if he has at least 20 years of Service Credit; 

or 

(B) 65th birthday if he has less than 20 years of Service Credit. 

(e) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

Claim Filing Procedures (as described in Section 7.14), the ContributionBased Pension becomes payable to a Participant on the 1st day of the 

month following the month in which his age was calculated according to 

(c), above. 

36.1.41
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TM:538126 / 01096280 / 01/01/2015 

(f) The Pension Fund is not liable for benefits based upon this Section 4.03 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 4.04 CONTRIBUTORY CREDIT PENSION 

(a) The benefit described in this Section 4.04 is preserved, protected 

and limited as of December 31, 2003, to the extent described in this 

subsection (a). Contributory Service Credit for any time period after 

December 31, 2003, will be disregarded, in determining eligibility for and 

the amount of a Contributory Credit Pension, except as otherwise 

provided in this subsection (a). For any Participant who has Contributory 

Service Credit both before and after December 31, 2003, the eligibility 

and amount of a Contributory Credit Pension will be determined in 

accordance with the following standards: 

(1) The total of the Participant’s Contributory Service Credit before, 

on and after December 31, 2003, will be included in the 

determination whether the Participant has the minimum years of 

Contributory Service Credit required to qualify for this benefit and, 

if he does, and if he satisfies all other eligibility requirements for a 

Contributory Credit Pension, his monthly share of the applicable 

benefit amount will equal a fraction of that amount, the numerator 

being the total years of his Contributory Service Credit as of 

December 31, 2003, and the denominator being the total of the 

Participant’s Contributory Service Credit before, on and after 

December 31, 2003, provided that the denominator does not 

exceed the minimum years for the applicable benefit amount 

(“applicable benefit amount”, for this calculation, means the 

amount in subsection [b] that is applicable to the Participant); and 

(2) The Benefit Class of the Participant, for purposes of a 

Contributory Credit Pension, will be determined as of December 

31, 2003, unless any of the limited post-2003 exceptions specified 

in Section 3.01(c) is applicable; and 

(3) The age of the Participant, for purposes of a Contributory Credit 

Pension, will be his age on his Retirement Date or the earlier date 

on which he has became an Inactive Participant, in accordance 

with subsection (c); and 

(4) The Participant will also be entitled to receive, in addition to his 

share of a Contributory Credit Pension, a partial ContributionBased Pension provided by Section 4.03, except that this partial 

benefit will be based solely upon his Contributory Service Credit 

on and after January 1, 2004. 

(b) A Contributory Credit Pension is available to a Participant who is eligible 

for a benefit under Benefit Class 15 or higher in accordance with the 

following: 

(1) Benefit Classes 15(A) and 15(B): 

36.1.42
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TM:538126 / 01096280 / 01/01/2015 

(A) A Participant shall qualify for a Contributory Credit Pension 

under Benefit Classes 15(A) or 15(B), if he meets each of 

the requirements as follows: 

(i) He must be an Active Participant as of December 

31, 1986 or any later calendar year; and 

(ii) His Benefit Class must be 15(A) or 15(B); and 

(iii) He must, before becoming an Inactive Participant 

for the last time, reach his 60th birthday; and 

(iv) He must have a Retirement Date which is on or 

after his 60th birthday; and 

(v) He must have at least 25 years of Contributory 

Service Credit; and 

(vi) He must not have received payment of any benefit 

from this Pension Fund before January 1, 1987, 

except that, this requirement shall be waived if a 

Pensioner, after his Retirement Date, becomes 

employed by a Contributing Employer and meets 

the requirements of Section 4.14(a). 

(B) A Participant who meets the requirements (1)(A), above, 

shall receive a Contributory Credit Pension in a monthly 

amount determined as follows: 

(i) If his Benefit Class is 15(A), he shall receive a 

benefit according to the following: 

 Age at 25 Years of 30 Years of 

 Retirement Contributory Contributory 

 Date Service Credit Service Credit 

 60 $ 950 $1,050 

 61 950 1,050 

 62 1,050 1,125 

 63 1,050 1,125 

 64 1,050 1,125 

 65 and over 1,125 1,250 

(ii) If his Benefit Class is 15(B), he shall receive a 

benefit according to the following: 

36.1.43
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TM:538126 / 01096280 / 01/01/2015 

 Age at 25 Years of 30 Years of 

 Retirement Contributory Contributory 

 Date Service Credit Service Credit 

 60 $1,000 $1,100 

 61 1,000 1,100 

 62 1,100 1,250 

 63 1,100 1,250 

 64 1,100 1,250 

 65 and over 1,250 1,500 

(2) Benefit Class 15(C):

(A) A Participant shall qualify for a Contributory Credit Pension 

under Benefit Class 15(C), if he meets each of the 

requirements as follows: 

(i) He has, on or after April 1, 1988, at least 5 days or 

one week of Employer Contributions (and not SelfContributions) made on his behalf after that date 

at a rate corresponding to Benefit Class 15(C); and 

(ii) His Benefit Class is 15(C); and 

(iii) He reaches his 57th birthday before becoming an 

Inactive Participant for the last time; and 

(iv) He has a Retirement Date that is on or after his 

57th birthday; and 

(v) He has at least 25 years of Contributory Service 

Credit; and 

(vi) He has not received payment of any benefit from 

this Pension Fund, except that, this requirement 

shall be waived if a Pensioner, after his Retirement 

Date, becomes reemployed by a Contributing 

Employer and meets the requirements of Section 

4.14(a). 

(B) A Participant who meets the requirements of (2)(A), above, 

shall receive a Contributory Credit Pension in a monthly 

amount determined as follows: 

(i) If the Participant stops working on or after April 1, 

1988, he shall receive a benefit according to the 

following: 

36.1.44
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TM:538126 / 01096280 / 01/01/2015 

 With 25 Years of With 30 Years of

 Age at Contributory Contributory

 Retirement Date Service Credit Service Credit

 57 through 59 $ 900 $1,125 

 60 through 61 $1,125 $1,350 

 62 through 64 $1,225 $1,500 

 65 and over $1,375 $1,750 

(ii) If the Participant stops working on or after April 1, 

1989 and had at least 5 days or one week of 

Employer Contributions (and not SelfContributions) made on his behalf after that date 

under a Collective Bargaining Agreement requiring 

Contributions at a rate corresponding to Benefit 

Class 15(C) for the 12 month period preceding his 

Retirement Date, he shall receive a benefit 

according to the following: 

 With 25 Years of With 30 Years of

 Age at Contributory Contributory

 Retirement Date Service Credit Service Credit

 57 through 59 $1,000 $1,250 

 60 through 61 $1,250 $1,600 

 62 through 64 $1,350 $1,750 

 65 and over $1,500 $2,000 

(3) Benefit Class 16:

(A) A Participant shall qualify for a Contributory Credit Pension 

under Benefit Class 16, if he meets each of the 

requirements as follows: 

(i) He has, on or after April 1, 1991, at least 5 days or 

one week of Employer Contributions (and not SelfContributions) made on his behalf at a rate 

corresponding to Benefit Class 16(A) or higher and; 

(aa) His Contributing Employer previously made 

Contributions at a rate corresponding to 

Benefit Class 15(C) or higher and his 

current Benefit Class, determined according 

to Section 3.03(a), is 16(A) or higher; or 

(bb) His Contributing Employer previously made 

Contributions at a rate corresponding to 

either Benefit Class 15(A) or 15(B) but not 

Benefit Class 15(C) or higher, his current 

Benefit Class, determined according to 

Section 3.03(a), is 16(A) or higher and his 

Contributing Employer has been making 

Contributions at a rate corresponding to 

36.1.45
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TM:538126 / 01096280 / 01/01/2015 

Benefit Class 16(A) or higher for at least 12 

months preceding his Retirement Date; or 

(cc) His Benefit Class, determined according to 

Section 3.03(b), is 16(A) or higher; and 

(ii) He is covered by a Collective Bargaining 

Agreement which requires his Contributing 

Employer to begin making Contributions at a rate 

corresponding to at least Benefit Class 16(C) no 

later than 24 months after the date the last 

Contribution is made on his behalf; and 

(iii) He reaches his 57th birthday before becoming an 

Inactive Participant for the last time; and 

(iv) He has a Retirement Date that is on or after his 

57th birthday; and 

(v) He has at least 20 years of Contributory Service 

Credit; and 

(vi) He has not received payment of any benefit from 

this Pension Fund, except that, this requirement 

shall be waived if a Pensioner, after his Retirement 

Date, becomes reemployed by a Contributing 

Employer and meets the requirements of Section 

4.14(a). 

(B) A Participant who meets the requirements of (3)(A), above, 

shall receive a Contributory Credit Pension in a monthly 

amount determined by the following: 

 With With With

 Age at 20 Years of 25 Years of 30 Years of

 Retirement Contributory Contributory Contributory

 Date Credit Credit Credit 

 57 $ 900 $1,200 $2,000 

 58 950 1,300 2,000 

 59 1,000 1,400 2,000 

 60 1,050 1,500 2,000 

 61 1,100 1,600 2,100 

 62 1,200 1,700 2,200 

 63 1,300 1,800 2,300 

 64 1,400 1,900 2,400 

 65 1,500 2,000 2,500 

(4) Benefit Class 17a

(A) A Participant shall qualify for a Contributory Credit Pension 

under Benefit Class 17a, if he meets each of the 

requirements as follows: 

36.1.46
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TM:538126 / 01096280 / 01/01/2015 

(i) He has, on or after August 1, 1993, at least 100 

days or 20 weeks of Employer Contributions (and 

not Self-Contributions) made on his behalf at a 

rate corresponding to Benefit Class 17a; and 

(ii) His Benefit Class is 17a; and 

(iii) He has, excluding any Contributory Service 

Credit he earned from Self-Contributions he 

made for a period preceding January 1, 1994, 

other than a Temporary Medical Absence 

Period (as defined in Section 1.09(b)), at least 25 

years of Contributory Service Credit; and 

(iv) He meets, excluding any Contributory Service 

Credit he earned from Self-Contributions he 

made for a period preceding January 1, 1994, 

other than a Temporary Medical Absence 

Period (as defined in Section 1.09(b)), the 

Contributory Service Credit requirement for the 

benefit amount he wishes to receive; and 

(v) He has not received payment of any benefit from 

this Pension Fund, except that, this requirement 

shall be waived if a Pensioner, after his Retirement 

Date, becomes reemployed by a Contributing 

Employer and meets the requirements of Section 

4.14(a). 

(B) A Participant who meets the requirements of (4)(A), above, 

shall receive a Contributory Credit Pension in a monthly 

amount determined by the following: 

36.1.47
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TM:538126 / 01096280 / 01/01/2015 

YEARS OF CONTRIBUTORY SERVICE CREDIT 

 Age at 

Retirement Date 25 26 27 28 29 30 31 32 33 34 35

 50 1500 1500 1500 1500 1500 2000 2100 2200 2300 2400 2500 

 (and under) 

 51 1500 1500 1500 1500 1500 2000 2100 2200 2300 2400 2500 

 52 1500 1500 1500 1500 1500 2000 2100 2200 2300 2400 2500 

 53 1500 1500 1500 1500 1500 2000 2100 2200 2300 2400 2500 

 54 1500 1500 1500 1500 1500 2000 2100 2200 2300 2400 2500 

 55 1500 1500 1500 1500 1500 2000 2100 2200 2300 2400 2500 

 56 1500 1600 1600 1600 1600 2000 2100 2200 2300 2400 2500 

 57 1500 1600 1700 1700 1700 2000 2100 2200 2300 2400 2500 

 58 1500 1600 1700 1800 1800 2000 2100 2200 2300 2400 2500 

 59 1500 1600 1700 1800 1900 2000 2100 2200 2300 2400 2500 

 60 1500 1600 1700 1800 1900 2000 2100 2200 2300 2400 2500 

 61 1600 1600 1700 1800 1900 2100 2100 2200 2300 2400 2500 

 62 1700 1700 1700 1800 1900 2200 2200 2200 2300 2400 2500 

 63 1800 1800 1800 1800 1900 2300 2300 2300 2300 2400 2500 

 64 1900 1900 1900 1900 1900 2400 2400 2400 2400 2400 2500 

 65 2000 2000 2000 2000 2000 2500 2500 2500 2500 2500 2500 

(5) Benefit Class 17b

(A) A Participant shall qualify for a Contributory Credit Pension 

under Benefit Class 17b, if he meets each of the 

requirements as follows: 

(i) He has, on or after April 1, 1994, at least 10 days or 

2 weeks of Employer Contributions (and not SelfContributions) made on his behalf at a rate 

corresponding to Benefit Class 17b or if he is 

employed as a casual Employee or changes 

Contributing Employers (but not Bargaining Units) 

on or after such date, he has at least 100 days or 

20 weeks of Employer Contributions (and not SelfContributions) made on his behalf at a rate 

corresponding to Benefit Class 17b; and 

36.1.48
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TM:538126 / 01096280 / 01/01/2015 

(ii) His Benefit Class is 17b; and 

(iii) He has, excluding any Contributory Service 

Credit he earned from Self-Contributions he 

made for a period preceding January 1, 1994, 

other than a Temporary Medical Absence 

Period (as defined in Section 1.09(b)), at least 30 

years of Contributory Service Credit, or has 

reached at least age 55 before becoming an 

Inactive Participant, and has, excluding any 

Contributory Service Credit he earned from 

Self-Contributions he made for a period 

preceding January 1, 1994, other than a 

Temporary Medical Absence Period (as defined 

in Section 1.09(b)), at least 25 years of 

Contributory Service Credit; and 

(iv) He meets, excluding any Contributory Service 

Credit he earned from Self-Contributions he 

made for a period preceding January 1, 1994, 

other than a Temporary Medical Absence 

Period (as defined in Section 1.09(b)), the 

Contributory Service Credit requirement for the 

benefit amount he wishes to receive; and 

(v) He has not received payment of any benefit from 

this Pension Fund, except that, this requirement 

shall be waived if a Pensioner, after his Retirement 

Date, becomes reemployed by a Contributing 

Employer and meets the requirements of Section 

4.14(a). 

(B) A Participant who meets the requirements of (5)(A), above, 

shall receive a Contributory Credit Pension in a monthly 

amount determined by the following: 

36.1.49
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TM:538126 / 01096280 / 01/01/2015 

YEARS OF CONTRIBUTORY SERVICE CREDIT 

 Age at 

 Retirement Date 25 26 27 28 29 30 31 32 33 34 35

 50 2500 2600 2700 2800 2900 3000 

(and under) EARLY RETIREMENT PENSION

 51 2500 2600 2700 2800 2900 3000 

 IS PAID FOR THESE AGE AND 

 52 2500 2600 2700 2800 2900 3000 

 SERVICE COMBINATIONS 

 53 2500 2600 2700 2800 2900 3000 

 54 2500 2600 2700 2800 2900 3000 

 55 1500 1500 1500 1500 1500 2500 2600 2700 2800 2900 3000 

 56 1500 1600 1600 1600 1600 2500 2600 2700 2800 2900 3000 

 57 1500 1600 1700 1700 1700 2500 2600 2700 2800 2900 3000 

 58 1500 1600 1700 1800 1800 2500 2600 2700 2800 2900 3000 

 59 1500 1600 1700 1800 1900 2500 2600 2700 2800 2900 3000 

 60 1500 1600 1700 1800 1900 2500 2600 2700 2800 2900 3000 

 61 1600 1600 1700 1800 1900 2500 2600 2700 2800 2900 3000 

 62 1700 1700 1700 1800 1900 2500 2600 2700 2800 2900 3000 

 63 1800 1800 1800 1800 1900 2500 2600 2700 2800 2900 3000 

 64 1900 1900 1900 1900 1900 2500 2600 2700 2800 2900 3000 

 65 2000 2000 2000 2000 2000 2500 2600 2700 2800 2900 3000 

(c) For purposes of determining the amount of his Contributory Credit 

Pension, a Participant may choose to have his age calculated as of any 

date which does not precede his Retirement Date or extend beyond the 

date he becomes an Inactive Participant, except that, a Participant who 

becomes an Inactive Participant prior to his Retirement Date, and who 

does not again become an Active Participant, shall have his age 

determined as of the date he became an Inactive Participant. 

(d) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

Claim Filing Procedures (as described in Section 7.14), the Contributory 

Credit Pension becomes payable to a Participant on the 1st day of the 

month following the month in which his age was calculated according to 

(b), above, except that, a Participant whose Retirement Date follows the 

date on which his age was calculated, shall have his Contributory Credit 

Pension become payable on the 1st day of the month following his 

Retirement Date. 

36.1.50
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TM:538126 / 01096280 / 01/01/2015 

(6) Benefit Class 18

(A) A Participant shall qualify for a Contributory Credit Pension 

under Benefit Class 18, if he meets each of the 

requirements as follows: 

(i) He has, on or after August 1, 1997, at least 10 days 

or 2 weeks of Employer Contributions (and not 

Self-Contributions) made on his behalf at a rate 

corresponding to Benefit Class 18 or, if he is 

employed as a casual Employee or changes 

Contributing Employers (but not Bargaining Units) 

on or after such date, he has at least 100 days or 

20 weeks of Employer Contributions (and not SelfContributions) made on his behalf at a rate 

corresponding to Benefit Class 18; and 

(ii) His Benefit Class is 18; and 

(iii) He meets, excluding any Contributory Service 

Credit he earned from Self-Contributions he 

made for a period preceding January 1, 1994, 

other than a Temporary Medical Absence 

Period (as defined in Section 1.09(b)), the 

Contributory Service Credit requirement for the 

benefit amount he wishes to receive; and 

(iv) He has not received payment of any benefit from 

this Pension Fund, except that, this requirement 

shall be waived if a Pensioner, after his Retirement 

Date, becomes reemployed by a Contributing 

Employer and meets the requirements of Section 

4.14(a). 

(B) A Participant who meets the requirements of (6)(A), above, 

shall receive a Contributory Credit Pension in a monthly 

amount determined by the following: 

YEARS OF CONTRIBUTORY SERVICE CREDIT 

 Age at 20-

Retirement Date 24 25 26 27 28 29 30 31 32 33 34 35

 Any 

 Age - 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 50 650 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 51 700 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 52 750 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 53 800 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 54 850 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

36.1.51
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TM:538126 / 01096280 / 01/01/2015 

YEARS OF CONTRIBUTORY SERVICE CREDIT 

 Age at 20-

Retirement Date 24 25 26 27 28 29 30 31 32 33 34 35

 55 900 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 56 950 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 57 1000 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 58 1050 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 

 59 1100 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 60 1150 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 61 1200 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 62 1300 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 63 1400 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 64 1500 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 65 2000 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

(7) Benefit Class 18+

(A) A Participant shall qualify for Contributory Credit Pension 

under Benefit Class 18+, if he meets each of the 

requirements as follows: 

(i) He has, on or after June 1, 1998, at least 10 days 

or 2 weeks of Employer Contributions (and not 

Self-Contributions) made on his behalf at a rate 

corresponding to Benefit Class 18+ or, if he is 

employed as a casual Employee or changes 

Contributing Employers (but not Bargaining Units) 

on or after such date, he has at least 100 days or 

20 weeks of Employer Contributions (and not SelfContributions) made on his behalf at a rate 

corresponding to Benefit Class 18+; and 

(ii) His Benefit Class is 18+; and 

(iii) He meets excluding any Contributory Service 

Credit he earned from Self-Contributions he 

made for a period preceding January 1, 1994, 

other than a Temporary Medical Absence 

Period (as defined in Section 1.09(b)), the 

Contributory Service Credit requirement for the 

benefit amount he wishes to receive; and 

(iv) He has not received payment of any benefit from 

this Pension Fund, except that, this requirement 

shall be waived if a Pensioner, after his Retirement 

36.1.52
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TM:538126 / 01096280 / 01/01/2015 

Date, becomes reemployed by a Contributing 

Employer and meets the requirements of Section 

4.14(a). 

(B) A Participant who meets the requirements of (7)(A), above, 

shall receive a Contributory Credit Pension in a monthly 

amount determined by the following: 

YEARS OF CONTRIBUTORY SERVICE CREDIT 

 Age at 20-

Retirement Date 24 25 26 27 28 29 30 31 32 33 34 35

 Any 

 Age - 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 50 650 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 51 700 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 52 750 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 53 800 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 54 850 2000 2100 2200 2300 2400 3000 3100 3200 3300 3400 3500 

 55 900 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 56 950 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 57 1000 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 58 1050 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 59 1100 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 60 1150 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 61 1200 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 62 1300 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 63 1400 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 64 1500 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

 65 2000 2500 2600 2700 2800 2900 3000 3100 3200 3300 3400 3500 

(e) The Pension Fund is not liable for benefits based upon this Section 4.04 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

36.1.53
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TM:538126 / 01096280 / 01/01/2015 

Section 4.05 25-AND-OUT PENSION - BENEFIT CLASS 17a, 18 and 18+ ONLY 

(a) The benefit described in this Section 4.05 is preserved, protected 

and limited as of December 31, 2003, to the extent described in this 

subsection (a). Contributory Service Credit for any time period after 

December 31, 2003, will be disregarded, in determining eligibility for and 

the amount of a 25-And-Out Pension, except as otherwise provided in this 

subsection (a). For any Participant who has Contributory Service Credit 

both before and after December 31, 2003, the eligibility and amount of a 

25-And-Out Pension will be determined in accordance with the following 

standards: 

(1) The total of the Participant’s Contributory Service Credit before, 

on and after December 31, 2003, will be included in the 

determination whether the Participant has the minimum 25 years 

of Contributory Service Credit required to qualify for this benefit 

and, if he does, and if he satisfies all other eligibility requirements 

for a 25-And-Out Pension, his monthly share of the applicable 

benefit amount (either $1,500 or $2,000, whichever applies) will 

equal a fraction of that amount, the numerator being the total 

years of his Contributory Service Credit as of December 31, 2003, 

and the denominator being 25 years; and 

(2) The Benefit Class of the Participant, for purposes of a 25-and-Out 

Pension, will be determined as of December 31, 2003, unless any 

of the limited post-2003 exceptions specified in Section 3.01(c) is 

applicable; and 

(3) The Participant will also be entitled to receive, in addition to his 

share of a 25-And-Out Pension, a partial Contribution-Based 

Pension provided by Section 4.03, except that this partial benefit 

will be based solely upon his Contributory Service Credit on and 

after January 1, 2004. 

(b) A Participant shall qualify for a 25-And-Out Pension under Benefit Class 

17a, in a monthly amount of $1,500, if he meets each of the following 

requirements: 

(1) He has, on or after August 1, 1993, at least 100 days or 20 weeks 

of Employer Contributions (and not Self-Contributions) made on 

his behalf under Benefit Class 17a; and 

(2) His Benefit Class is 17a; and 

(3) He has, excluding any Contributory Service Credit he earned 

from Self-Contributions he made for a period preceding 

January 1, 1994, other than a Temporary Medical Absence 

Period (as defined in Section 1.09(b)), at least 25 years of 

Contributory Service Credit; and 

(4) He has not received payment of any benefit from this Pension 

Fund, except that, this requirement shall be waived if a Pensioner, 

after his Retirement Date, becomes reemployed by a Contributing 

Employer and meets the requirements of Section 4.14(a). 

36.1.54
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TM:538126 / 01096280 / 01/01/2015 

(c) A Participant shall qualify for a 25-And-Out Pension under Benefit Class 

18 or 18+, in a monthly amount of $2,000, if he meets each of the 

following requirements: 

(1) He has had at least 10 days or 2 weeks of Employer Contributions 

(and not Self-Contributions) made on his behalf at a rate 

corresponding to Benefit Class 18 or 18+ or, if he is employed as 

a casual Employee or changes Contributing Employers (but not 

Bargaining Units) on or after such date, he has at least 100 days 

or 20 weeks of Employer Contributions (and not SelfContributions) made on his behalf at a rate corresponding to 

Benefit Class 18 or 18+; and 

(2) His Benefit Class is 18 or 18+; and 

(3) He has, excluding any Contributory Service Credit he earned 

from Self-Contributions he made for a period preceding 

January 1, 1994, other than a Temporary Medical Absence 

Period (as defined in Section 1.09(b)), at least 25 years of 

Contributory Service Credit; and 

(4) He has not received payment of any benefit from this Pension 

Fund, except that, this requirement shall be waived if a Pensioner, 

after his Retirement Date, becomes reemployed by a Contributing 

Employer and meets the requirements of Section 4.14(a). 

(d) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

Claim Filing Procedures (as described in Section 7.14), a Participant may 

elect to have his 25-And-Out Pension become payable on the 1st day of 

the month following his Retirement Date. 

(e) A Participant who has stopped working in Covered Service may not elect 

to have his 25-And-Out Pension become payable later than the 1st day of 

the month following his Normal Retirement Date. 

(f) The 25-And-Out Pension a Participant becomes qualified to receive shall 

be his minimum monthly retirement benefit from this Pension Fund. 

(g) The Pension Fund is not liable for benefits based upon this Section 4.05 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

36.1.55
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Section 4.06 30-AND-OUT PENSION - SCHEDULE B BENEFIT ONLY 

(a) The benefit described in this Section 4.06 is preserved, protected 

and limited as of December 31, 2003, to the extent described in this 

subsection (a). Contributory Service Credit for any time period after 

December 31, 2003, will be disregarded, in determining eligibility for and 

the amount of a 30-and-Out Pension, except as otherwise provided in this 

subsection (a). For any Participant who has Contributory Service Credit 

both before and after December 31, 2003, the eligibility and amount of a 

30-And-Out Pension will be determined in accordance with the following 

standards: 

(1) The total of the Participant’s Contributory Service Credit before, 

on and after December 31, 2003, will be included in the 

determination whether the Participant has the minimum 30 years 

of Contributory Service Credit required to qualify for this benefit 

and, if he does, and if he satisfies all other eligibility requirements 

for a 30-And-Out Pension, his monthly share of the applicable 

benefit amount will equal a fraction of that amount, the numerator 

being the total years of his Contributory Service Credit as of 

December 31, 2003, and the denominator being 30 years 

(“applicable benefit amount”, for this calculation, means the 

amount in subsection [c] that is applicable to the Participant); and 

(2) The Benefit Class of the Participant, for purposes of a 30-And-Out 

Pension, will be determined as of December 31, 2003, unless any 

of the limited post-2003 exceptions specified in Section 3.01(c) is 

applicable; and 

(3) The Participant will also be entitled to receive, in addition to his 

share of a 30-And-Out Pension, a partial Contribution-Based 

Pension provided by Section 4.03, except that this partial benefit 

will be based solely upon his Contributory Service Credit on and 

after January 1, 2004. 

(b) A Participant shall qualify for a 30-And-Out Pension if he meets each of 

the following requirements: 

(1) He has at least 30 years of Contributory Service Credit; and 

(2) He has at least 5 days or one week of Contributions made on his 

behalf at Schedule B rates; and 

(3) He has not received payment of any benefit from this Pension 

Fund, except that, this requirement shall be waived if a Pensioner, 

after his Retirement Date, becomes reemployed by a Contributing 

Employer and meets the requirements of Section 4.14(a). 

(c) A Participant who is eligible for a 30-And-Out Pension shall receive a 

benefit in a monthly amount determined as follows: 

(1) He shall receive a 30-And-Out Pension in a monthly amount equal 

to the age 60 Twenty-Year Service Pension corresponding to his 

Benefit Class if his Benefit Class is below 15(A) and he is covered 

by a Collective Bargaining Agreement which contains a 

commitment for Schedule B rates. 

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(2) He shall receive a 30-And-Out Pension in a monthly amount of 

$1,000 if his Benefit Class is 15 or if his Benefit Class is 16(A) or 

higher and he fails to meet the requirements of (3), (4) and (5) 

below. 

(3) He shall receive a 30-And-Out Pension in a monthly amount of 

$2,000 if he meets each of the following requirements: 

(A) He has, on or after April 1, 1991, at least 5 days or one 

week of Employer Contributions (and not SelfContributions) made on his behalf at a rate corresponding 

to Benefit Class 16(A) or higher, and; 

(i) His Contributing Employer previously made 

Contributions at a rate corresponding to Benefit 

Class 15(C) or higher and his current Benefit Class, 

determined according to Section 3.03(a), is 16(A) 

or higher; or 

(ii) His Contributing Employer previously made 

Contributions at a rate corresponding to either 

Benefit Class 15(A) or 15(B) but not Benefit Class 

15(C), his current Benefit Class, determined 

according to Section 3.03(a), is 16(A) or higher and 

his Contributing Employer has been making 

Contributions at a rate corresponding to Benefit 

Class 16(A) or higher for at least 12 months 

preceding his Retirement Date; or 

(iii) His Benefit Class, determined according to Section 

3.03(b), is 16(A) or higher; and 

(B) He is covered by a Collective Bargaining Agreement which 

requires his Contributing Employer to begin making 

Contributions at a rate corresponding to at least Benefit 

Class 16(C) no later than 24 months after the date the last 

Contribution is made on his behalf. 

(4) He shall receive a 30-And-Out Pension in a monthly amount of 

$2,500 if he meets each of the following requirements: 

(A) He has had, on or after April 1, 1994, at least 10 days or 2 

weeks of Employer Contributions (and not SelfContributions) made on his behalf at a rate corresponding 

to Benefit Class 17b or if he is employed as a casual 

Employee or changes Contributing Employers (but not 

Bargaining Units) on or after such date, he has at least 100 

days or 20 weeks of Employer Contributions (and not 

Self-Contributions) made on his behalf at a rate 

corresponding to Benefit Class 17b; and 

(B) His Benefit Class is 17b; and 

(C) He has, excluding any Contributory Service Credit he 

earned from Self-Contributions he made for a period 

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preceding January 1, 1994, other than a Temporary 

Medical Absence Period (as defined in Section 

1.09(b)), at least 30 years of Contributory Service Credit. 

(5) He shall receive a 30-And-Out Pension in a monthly amount of 

$3,000 if he meets each of the following requirements: 

(A) He has had at least 10 days or 2 weeks of Employer 

Contributions (and not Self-Contributions) made on his 

behalf at a rate corresponding to Benefit Class 18 or 18+ 

or, if he is employed as a casual Employee or changes 

Contributing Employers (but not Bargaining Units) on or 

after such date, he has at least 100 days or 20 weeks of 

Employer Contributions (and not Self-Contributions)

made on his behalf at a rate corresponding to Benefit 

Class 18 or 18+; and 

(B) His Benefit Class is 18 or 18+; and 

(C) He has, excluding any Contributory Service Credit he 

earned from Self-Contributions he made for a period 

preceding January 1, 1994, other than a Temporary 

Medical Absence Period (as defined in Section 

1.09(b)), at least 30 years of Contributory Service Credit. 

(d) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

Claim Filing Procedures (as described in Section 7.14), a Participant may 

elect to have his 30-And-Out Pension become payable on the 1st day of 

any month following his Retirement Date. 

(e) A Participant who has stopped working in Covered Service may not elect 

to have his 30-And-Out Pension become payable later than the 1st day of 

the month following his Normal Retirement Date. 

(f) The 30-And-Out Pension a Participant becomes qualified to receive shall 

be his minimum monthly retirement benefit from this Pension Fund. 

(g) The Pension Fund is not liable for benefits based upon this Section 4.06 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

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Section 4.07 VESTED PENSION 

(a) To become eligible for a Vested Pension, a Participant must be a Vested 

Participant and have a Retirement Date preceding January 1, 1987. A 

Vested Participant whose Retirement Date is on or after January 1, 1987 

shall be eligible to receive a Contribution-Based Pension (as defined in 

Section 4.03) in lieu of a Vested Pension. 

(b) The monthly amount of the Vested Pension is determined as follows: 

(1) If the effective date of benefit payments is on or after the Normal 

Retirement Date of the Participant, the monthly amount is equal to 

his Accrued Benefit, as determined by Section 1.01(a). 

(2) If the effective date of benefit payments is before the Normal 

Retirement Date of the Participant, the monthly amount is 

determined by reducing his Accrued Benefit, as determined by 

Section 1.01(a), by 1⁄2 of 1% for each month his effective date of 

benefit payments precedes his 65th birthday; 

(c) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

Claim Filing Procedures (as described in Section 7.14), a Participant may 

elect to have his Vested Pension become payable on the 1st day of any 

month following the later of: 

 (1) his 50th birthday; or 

(2) his Retirement Date. 

(d) The Pension Fund is not liable for benefits based upon this Section 4.07 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 4.08 DEFERRED PENSION 

(a) A Participant who becomes eligible for a Deferred Pension may defer 

payment of his Twenty-Year Service Pension or Early Retirement 

Pension to a later age and receive a greater monthly benefit. 

(b) To become eligible for a Deferred Pension, a Participant must meet one 

of the following requirements at the time he stops working in Covered 

Service or becomes an Inactive Participant. 

(1) he must be eligible for immediate payment of a Twenty-Year 

Service Pension; or 

(2) he must be eligible for immediate payment of an Early Retirement 

Pension and have at least 20 years of Contributory Service Credit. 

(c) The monthly amount of the Deferred Pension is determined by the age of 

the Participant in the month immediately preceding his Deferred 

Retirement Date, and by his Benefit Class on the earlier of: 

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(1) the date he stops working in Covered Service; or 

(2) the date he became an Inactive Participant. 

(d) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

Claim Filing Procedures (as described in Section 7.14), the Deferred 

Pension becomes payable on the Deferred Retirement Date of a 

Participant. 

(e) The Pension Fund is not liable for benefits based upon this Section 4.08 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 4.09 TWENTY-YEAR DEFERRED PENSION - SCHEDULE B BENEFIT ONLY 

(a) A Participant who becomes eligible for a Twenty-Year Deferred Pension 

may defer the payment of his Twenty-Year Service Pension or Early 

Retirement Pension and receive a greater monthly benefit. 

 

(b) To become eligible for a Twenty-Year Deferred Pension, a Participant 

must meet the following requirements at the time he stops working in 

Covered Service or becomes an Inactive Participant. 

(1) (A) he must have had at least one Year of Participation in 

which his Contributing Employer made Employer 

Contributions under Schedule B for members of his 

Bargaining Unit; or 

(B) he must not have had a One-Year Break-in-Service during 

the calendar year immediately preceding the calendar year 

his Contributing Employer began making Employer 

Contributions under Schedule B for members of his 

Bargaining Unit; and 

(2) he must have had at least 20 years of Contributory Service Credit. 

(c) The monthly amount of the Twenty-Year Deferred Pension is determined 

by the age of the Participant in the month immediately preceding his 

Deferred Retirement Date, and by his Benefit Class on the earlier of: 

(1) the date he stopped working in Covered Service; or 

(2) the date he became an Inactive Participant. 

(d) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

Claim Filing Procedures (as described in Section 7.14), the Twenty-Year 

Deferred Pension becomes payable on the Deferred Retirement Date of a 

Participant. 

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(e) The Pension Fund is not liable for benefits based upon this Section 4.09 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 4.10 FORMS OF PAYMENT 

(a) Three forms of payment for retirement pensions are available from the 

Pension Plan. The form of payment affects the monthly amount of the 

retirement pension, and also determines what benefits, if any, shall be 

available after the death of the Participant. 

(b) FORM OF PAYMENT 1 - JOINT AND 50% SURVIVING SPOUSE 

OPTION 

(1) The Joint and 50% Surviving Spouse Option is the normal form of 

payment for retirement pensions and is available if: 

(A) a Pensioner is married on the effective date of his benefit 

payments; and 

(B) he and his spouse have not elected, in writing, to receive 

his retirement pension in any other form of payment. 

(2) The Joint and 50% Surviving Spouse Option provides a lifetime 

retirement pension to a Pensioner reduced to reflect the cost to 

the Pension Fund for this form of payment, and after his death, 

provides 50% of that reduced amount as a lifetime benefit to the 

surviving spouse. For purposes of this form of payment, a 

surviving spouse is the individual to whom the Pensioner is 

married on the effective date of his benefit payments, except as 

otherwise provided in subsection (g)(1)(E) and (F) of this section. 

(3) The reduction factors for the Joint and 50% Surviving Spouse 

Option appear in Appendix A-1. 

(4) A Pensioner whose reduced pension is based upon the Joint and 

50% Surviving Spouse Option, and who is preceded in death by 

his spouse, shall have his retirement pension restored to the 

amount he would have received if he and his spouse had rejected 

the Joint and 50% Surviving Spouse Option. This provision shall 

apply to any Pensioner who, on or after January 1, 1990, is 

eligible to receive his retirement pension under the Joint and 50% 

Surviving Spouse Option and shall go into effect according to the 

following: 

(A) If the date of death of a Pensioner’s spouse is before 

January 1, 1990, his retirement pension shall be restored 

effective January 1, 1990. 

(B) If the date of death of a Pensioner’s spouse is on or 

after January 1, 1990, the Pensioner’s retirement pension 

shall be restored effective the 1st day of the month 

following the month of his spouse’s death. 

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(5) If a Pensioner’s reduced pension is based upon the Joint and 50% 

Surviving Spouse Option, and if that Pensioner’s spouse executes 

a specific written waiver of any right to and interest in the Joint 

and 50% Surviving Spouse Option, and if that waiver is 

incorporated in a court-approved property settlement agreement 

that is part of a judgment or order entered by a court of competent 

jurisdiction in a divorce, marriage dissolution or marital separation 

proceeding, then the Pensioner shall have his retirement pension 

restored to the amount he would have received if he and his 

spouse had rejected the Joint and 50% Surviving Spouse Option. 

This restoration shall be effective the 1st day of the month 

following the month in which the judgment or order is entered, 

except that the restoration will not be applied to benefits paid or 

payable on any date prior to 1992. 

(6) Subject to the Benefits Claim Filing Procedures (as described in 

Section 7.14), benefits payable to a surviving spouse under the 

Joint and 50% Surviving Spouse Option form of payment shall 

become payable on the 1st day of the month following the 

Participant’s death. 

(c) FORM OF PAYMENT 1A -- JOINT AND 75% SURVIVING SPOUSE 

OPTION 

(1) The Joint and 75% Surviving Spouse Option is a form of payment 

for retirement pensions which is an alternative to the Joint and 

50% Surviving Spouse Option and which is available if: 

(A) a Pensioner is married on the effective date of his benefit 

payments; and 

(B) the effective date of the benefit payments of the Pensioner 

is on or after March 1, 2008; and 

(C) there has been an effective waiver by the Pensioner, with 

the consent of his spouse, of the Joint and 50% Surviving 

Spouse Option; and 

(D) the Pensioner, during the applicable election period (as 

defined in subsection [f] [7] [C] of this section), has elected 

the Joint and 75% Surviving Spouse Option and has not 

revoked that election before expiration of that period. 

(2) The Joint and 75% Surviving Spouse Option provides a lifetime 

retirement pension to a Pensioner reduced to reflect the cost to 

the Pension Fund for this form of payment and, after his death, 

provides 75% of that reduced amount as a lifetime benefit to his 

surviving spouse. For purposes of this form of payment, a 

surviving spouse is the individual to whom the Pensioner is 

married on the effective date of his benefit payments, except that, 

if the spouse of the Pensioner as of his retroactive annuity starting 

date (as defined in this section) is no longer his spouse 

determined as of the date on which distribution of his retirement 

pension actually commences, that former spouse is not his 

spouse for purposes of this subsection (c) and is not entitled to a 

QOSA benefit. 

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(3) The reduction factors for the Joint and 75% Surviving Spouse 

Option appear in Appendix A-2. 

(4) A Pensioner whose reduced pension is based upon the Joint and 

75% Surviving Spouse Option, and who is preceded in death by 

his spouse, shall have his retirement pension restored to the 

amount he would have received if he had not elected the Joint and 

75% Surviving Spouse Option, effective as of the 1st day of the 

month following his spouse’s death. 

(5) If a Pensioner’s reduced pension is based upon the Joint and 75% 

Surviving Spouse Option, and if that Pensioner’s spouse executes 

a specific written waiver of any right to and interest in the Joint 

and 75% Surviving Spouse Option, and if that waiver is 

incorporated in a court-approved property settlement agreement 

that is part of a judgment or order entered by a court of competent 

jurisdiction in a divorce, marriage dissolution or marital separation 

proceeding, then the Pensioner shall have his retirement pension 

restored to the amount he would have received if he had not 

elected the Joint and 75% Surviving Spouse Option. This 

restoration shall be effective as of the 1st day of the month 

following the month in which the judgment or order is entered. 

(6) Subject to the Benefits Claim Filing Procedures (as described in 

Section 7.14), benefits payable to a surviving spouse under the 

Joint and 75% Surviving Spouse Option form of payment shall 

become payable on the 1st day of the month following the 

Pensioner’s death. 

(d) FORM OF PAYMENT 2 - LIFETIME ONLY OPTION 

(1) A Participant whose Benefit Class is 3(A) or lower shall, after 

becoming a Pensioner, automatically receive his retirement 

pension benefit under the Lifetime Only Option if: 

(A) he is not married on the effective date of his retirement 

pension benefit payments; or 

(B) he and his spouse have elected in writing, not to receive 

his retirement pension benefits under the Joint and 50% 

Surviving Spouse Option. 

(2) The Lifetime Only Option provides a lifetime retirement pension to 

a Pensioner, and does not, upon his death, provide any monthly 

surviving spouse benefit. 

(3) The Lifetime Only Option does not provide any lump-sum death 

benefit upon the death of a Pensioner who was receiving a 

Contribution-Based Pension or Vested Pension or upon the death 

of his spouse, unless, upon retirement, he had met the 

requirements for an Early Retirement Pension or Twenty-Year 

Deferred Pension. 

(4) Subject to (d)(3), above, the Lifetime Only Option provides a 

$1,000 lump-sum death benefit upon the death of a Pensioner. 

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This $1,000 lump-sum death benefit is payable in equal shares to 

all members of the highest level of survivors as follows: 

(A) Spouse; 

(B) Dependent Children; 

(C) Non-Dependent Children; 

(D) Parents; 

(E) Brothers and Sisters; 

(F) Estate. 

(5) Subject to (d)(3), above, the Lifetime Only Option provides a $500 

lump-sum benefit upon the death of the spouse of a Pensioner. 

This $500 lump-sum benefit is payable to a Pensioner only once 

during his lifetime. 

(e) FORM OF PAYMENT 3 - LIFETIME WITH LIMITED SURVIVING 

SPOUSE OPTION 

(1) A Participant whose Benefit Class is (4) or higher shall, upon 

becoming a Pensioner, automatically receive his retirement 

pension benefit under the Lifetime With Limited Surviving Spouse 

Option if: 

(A) he is not married on the effective date of his retirement 

pension benefit payments; or 

(B) he and his spouse have elected, in writing, not to receive 

his retirement pension benefits under the Joint and 50% 

Surviving Spouse Option. 

(2) The Lifetime With Limited Surviving Spouse Option provides a 

lifetime retirement pension benefit to a Pensioner. 

(3) If a Pensioner receives at least 60 months of retirement pension 

benefit payments, the Lifetime With Limited Surviving Spouse 

Option does not provide any further benefits. 

(4) If a Pensioner does not receive at least 60 months of retirement 

pension benefit payments, the Lifetime With Limited Surviving 

Spouse Option, except in cases where he is receiving a 

Contribution-Based Pension or Vested Pension and, upon 

retirement, had not met the requirements for an Early Retirement 

Pension or Twenty-Year Deferred Pension, provides his surviving 

spouse with the difference in payments resulting when the 

payments received by the Pensioner before his death are 

subtracted from 60. For purposes of this form of payment, the 

surviving spouse of a Pensioner is the individual to whom he is 

married on the date of his death. 

(5) Subject to the Benefits Claim Filing Procedures (as described in 

Section 7.14) any benefits payable to a surviving spouse under 

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the Lifetime With Limited Surviving Spouse Option form of 

payment shall become payable on the 1st day of the month 

following the death of the Pensioner. 

(6) If a Pensioner does not receive at least 60 months of retirement 

pension benefit payments and is not married at the time of his 

death, the Lifetime With Limited Surviving Spouse Option, except 

in cases where he is receiving a Contribution-Based Pension or 

Vested Pension and, upon retirement, had not met the 

requirements for an Early Retirement Pension or Twenty-Year 

Deferred Pension, provides that a $1,000 lump-sum death benefit 

will be payable in equal shares to the members of the highest 

level of survivors as follows: 

(A) Dependent Children; 

(B) Non-Dependent Children; 

(C) Parents; 

(D) Brothers and Sisters; 

(E) Estate. 

(f) ELECTION TO WAIVE QUALIFIED JOINT AND SURVIVOR ANNUITY 

AND/OR TO WAIVE QUALIFIED OPTIONAL SURVIVOR ANNUITY 

(1) Each Participant and Pensioner may elect at any time during the 

applicable election period to waive the qualified joint and survivor 

annuity form of benefit (hereinafter “QJSA benefit”), and, if such a 

waiver is effectively elected, he may elect at any time during the 

applicable election period to waive the qualified optional survivor 

annuity form of benefit (hereinafter “QOSA benefit”). He may also 

revoke such election (to waive the QJSA benefit and/or to waive 

the QOSA benefit) at any time during the applicable election 

period. 

(2) The QJSA benefit is the Joint and 50% Surviving Spouse Option 

described in subsection (b) of this section. The QOSA benefit is 

the Joint and 75% Surviving Spouse Option described in 

subsection (c) of this section. 

(3) An election by a Participant or Pensioner to waive the QJSA 

benefit shall not take effect unless during the applicable election 

period his spouse consents in writing to such waiver election, and 

unless the spouse’s consent acknowledges the effect of such 

waiver election and is witnessed by a notary public. The definition 

of “spouse” is in subsections (f)(7)(D) and (g)(1)(E) and (F) of this 

section. 

(4) The requirements of a spouse’s consent described in subsection 

(f)(3) of this section are not applicable in circumstances which 

establish to the satisfaction of the Pension Fund that the 

Participant or Pensioner is not married or that his spouse cannot 

be located. 

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(5) The Pension Fund shall provide to each Participant and Pensioner 

a written explanation (hereinafter “QJSA-QOSA explanation”) that 

will include: the terms and conditions of the QJSA benefit and the 

QOSA benefit; the right of the Participant or Pensioner to make, 

and the effect of, a timely election to waive the QJSA benefit 

and/or to receive the QOSA benefit; the rights of the spouse of the 

Participant or Pensioner as described in subsection (f)(3) of this 

section; and the right of the Participant or Pensioner to make, and 

the effect of, a timely revocation of his previous waiver of the 

QJSA benefit and/or his previous election to receive the QOSA 

benefit. The QJSA-QOSA explanation shall be written in a manner 

calculated to be understood by the average Participant and 

Pensioner. The QJSA-QOSA explanation shall include, as of the 

annuity starting date of the Participant or Pensioner (or, if 

applicable, his retroactive annuity starting date), a description of 

his QJSA benefit, a description of his QOSA benefit if he elects to 

waive his QJSA benefit, a description of his optional benefit if he 

elects to waive both his QJSA benefit and his QOSA benefit, a 

description of the eligibility conditions for his benefits and a 

description of the financial effects and relative values of his QJSA 

benefit, his QOSA benefit if he elects to waive his QJSA benefit, 

and his optional benefit if he elects to waive both his QJSA benefit 

and his QOSA benefit. The QJSA-QOSA explanation shall be 

provided to each Participant or Pensioner no less than 30 days, 

and no more than 180 days (or a longer interval caused solely by 

administrative delay), before his annuity starting date, except as 

otherwise provided in subsections (f)(6) and (g) of this section. 

(6) The QJSA-QOSA explanation may be provided by the Pension 

Fund to a Participant or Pensioner on a date which is less than 30 

days before his annuity starting date if the following conditions are 

satisfied: 

(A) the QJSA-QOSA explanation must clearly inform the 

Participant or Pensioner that the applicable election period, 

for his election to waive the QJSA benefit, and for his 

election to receive the QOSA benefit, and for his 

revocation of any such prior election, continues until 90 

days after the date on which distribution of his retirement 

pension actually commences; and 

(B) distribution in accordance with an affirmative election to 

waive the QJSA benefit and/or to receive the QOSA 

benefit, or with a revocation of any such prior election, 

cannot commence before expiration of 10 days after the 

date on which the Participant or Pensioner receives the 

QJSA-QOSA explanation. 

(7) The following terms in subsections (f) and (g) of this section shall 

have the following meanings: 

(A) the term “annuity starting date” means the first day of the 

first period (of multiple periods) for which an amount is 

payable to a Pensioner as a retirement pension; 

(B) the term “retroactive annuity starting date” means an 

annuity starting date affirmatively elected by a Participant 

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or Pensioner which occurs on or before the date on which 

the QJSA-QOSA explanation, as required by subsections 

(f)(5) and (f)(6) of this section, is provided to the Participant 

or Pensioner, and to which subsection (g) of this section 

applies; 

(C) the term “applicable election period” (for an election by a 

Participant or Pensioner to waive the QJSA benefit and/or 

to receive the QOSA benefit, and for his revocation of any 

such prior election) means the period which begins 180 

days before the annuity starting date of the Participant or 

Pensioner and ends on the 90th day after the date on 

which distribution of his retirement pension actually 

commences; and 

(D) the “spouse” of a Participant or Pensioner means the 

person (if any) to whom he is married on his annuity 

starting date, except as otherwise provided in subsection 

(g) of this section. 

(g) RETROACTIVE ANNUITY STARTING DATES 

(1) This subsection (g) applies only to retroactive annuity starting 

dates, as defined in subsection (f)(7)(B) of this section, which are 

on and after January 1, 2004. To the extent any Participant or 

Pensioner is permitted to elect to receive a retirement pension 

based upon a retroactive annuity starting date which is on or after 

January 1, 2004, the following terms, conditions and 

requirements are applicable: 

(A) all future periodic payments with respect to a Participant or 

Pensioner who elects a retroactive annuity starting date 

must be the same as the future periodic payments that 

would have been paid to him if his payments had actually 

commenced on the retroactive annuity starting date, and 

he must receive a make-up payment to reflect all missed 

payments for the period from the retroactive annuity 

starting date to the date of the actual make-up payment 

(with an appropriate adjustment for interest from the date 

each missed payment would have been made to the date 

of the actual make-up payment, provided that there is to be 

no such interest adjustment except to the extent that it is 

legally required); 

(B) no Participant or Pensioner will be permitted to elect a 

retroactive annuity starting date that precedes the date 

upon which he could have otherwise started receiving 

benefits; 

(C) the QJSA-QOSA explanation shall be provided to each 

Participant or Pensioner no less than 30 days, and no 

more than 180 days (or a longer interval if caused solely by 

administrative delay), before the date on which distribution 

of his retirement pension actually commences, except that 

the QJSA-QOSA explanation may be provided by the 

Pension Fund to a Participant or Pensioner on a date 

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which is less than 30 days before the date on which 

distribution of his retirement pension actually commences if 

the following conditions are satisfied: 

(i) the QJSA-QOSA explanation must clearly inform 

the Participant or Pensioner that the applicable 

election period, for his election to waive the QJSA 

benefit, and for his election to receive the QOSA 

benefit, and for his revocation of any such prior 

election, continues until 90 days after the date on 

which distribution of his retirement pension actually 

commences; and 

(ii) distribution in accordance with an affirmative 

election to waive the QJSA benefit and/or to 

receive the QOSA benefit, or with a revocation of 

any such prior election, cannot commence before 

expiration of 10 days after the date on which the 

Participant or Pensioner receives the QJSA-QOSA 

explanation; 

(D) the term ‘applicable election period’ (for an election by a 

Participant or Pensioner to waive the QJSA benefit and/or 

to receive the QOSA benefit, and for his revocation of any 

such prior election) means the period which begins 180 

days before the annuity starting date of the Participant or 

Pensioner and ends on the 90th day after the date on 

which distribution of his retirement pension actually 

commences; 

(E) if the spouse of the Participant or Pensioner as of the 

retroactive annuity starting date is no longer his spouse 

determined as of the date on which distribution of his 

retirement pension actually commences, that former 

spouse is not entitled to a QJSA benefit and the consent of 

that former spouse is not needed to waive the QJSA 

benefit unless otherwise required by a qualified domestic 

relations order; and 

(F) the requirements of a spouse’s consent described in 

subsection (f)(3) of this section are applicable to the 

spouse of the Participant or Pensioner determined as of 

the date on which distribution of his retirement pension 

actually commences (including an alternate payee who is 

treated as his spouse based upon a qualified domestic 

relations order), and no election of a retroactive annuity 

starting date shall take effect without consent to the 

election by that spouse (in the manner prescribed by 

subsection [f][3] of this section) if such election will reduce 

the amount of the potential future QJSA benefit which, 

absent such election, would be payable to the spouse. 

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(h) TRANSFER OF LIABILITIES TO THE UPS TRANSFER PLAN 

(1) For purposes of all forms of payments pursuant to this Section 

4.10 and this Pension Plan, the Pension Fund is not liable for 

benefits to the extent such liability has been transferred by the 

Pension Fund pursuant to APPENDIX L of this Pension Plan, 

provided that, in any instance in which the Pension Fund becomes 

responsible as a result of and pursuant to Section 3 of APPENDIX 

L for the payment of a qualified post-retirement joint and survivor 

annuity on and after the Participant’s 65th birthday (or the date 

that would have been the Participant’s 65th birthday if the 

Participant is then deceased), if such annuity was previously 

elected pursuant to and began to be paid by the UPS Transfer 

Plan, the form of the annuity paid by the Pension Fund will be 

either the Joint and 50% Surviving Spouse Option or the Joint and 

75% Surviving Spouse Option (whichever was elected by the 

Participant pursuant to the UPS Transfer Plan), and all such 

payments by the Pension Fund will be determined and governed 

by the terms and provisions of this Section 4.10 and APPENDIX L. 

Section 4.11 BENEFITS UNDER ANOTHER PLAN 

A Participant whose Employee Group was accepted according to the Alternative Policy 

in Appendix G of this Pension Plan, shall have the amount of any Twenty-Year Service 

Pension, Early Retirement Pension, Contributory Credit Pension, 25-And-Out Pension, 

30-And-Out Pension, Deferred Pension or Twenty-Year Deferred Pension he becomes 

eligible to receive from this Pension Plan, reduced by the amount of any benefit he may 

have earned while covered by a prior pension plan maintained by the Contributing 

Employer that became required to make Employer Contributions to this Pension Fund on 

his behalf. 

Section 4.12 CHOICE OF BENEFITS 

(a) Except as otherwise provided in (b), below, only one type of retirement 

pension shall be payable to a Pensioner. Subject to that exception, if a 

Participant is eligible for more than one type of retirement pension, he 

must choose the one he is to receive. That choice, upon being made by a 

Participant, shall be irrevocable, except as provided by the Rules and 

Procedures for Suspension of Benefits (as described in Section 4.13) and 

the Contributory Service After Retirement Date or After Disability (as 

described in Section 4.14), and except in cases where a Participant 

chooses to receive any other benefit for which he is eligible before the 

Pension Fund completes the processing of his claim for any other 

retirement pension he may be eligible to receive. 

(b) For any Participant who has Contributory Service Credit both before and 

after December 31, 2003, and who becomes eligible to receive both a 

partial Contribution-Based Pension based solely upon his Contributory 

Service Credit on and after January 1, 2004, and a retirement benefit in 

accordance with Section 4.04(a) or Section 4.05(a) or Section 4.06(a), the 

initial effective date of both benefits will be the 1st day of the month 

following the Retirement Date of the Participant. 

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Section 4.13 RULES AND PROCEDURES FOR SUSPENSION OF BENEFITS 

This section governs the suspension by the Pension Fund of monthly (and any other 

periodic) benefits payable for any period. Definitions of terms are stated in subsection (g) 

as well as in Article I of this Pension Plan. 

(a) The Pension Fund shall permanently suspend all Periodic Benefit 

Payments of a Pensioner or Disabled Participant during periods of his 

Reemployment to the following extent: 

(1) all Periodic Benefit Payments to a Disabled Participant shall be 

permanently suspended during all periods of his Reemployment 

(even if it is not Restricted Reemployment); 

(2) all Periodic Benefit Payments to a Pensioner shall be permanently 

suspended during all periods of his Restricted Reemployment 

except that, after the 65th birthday or Vested Pension Retirement 

Date of a Pensioner, whichever is later, there shall be no 

suspension in conflict with applicable federal law, including 26 

U.S.C. § 411 and 29 U.S.C. § 1053

; and 

(3) there shall be no suspension of Periodic Benefit Payments of any 

Pensioner or Disabled Participant after April 1 of the year after the 

calendar year in which the Pensioner or Disabled Participant 

attains age 701⁄2, regardless of any Reemployment. 

Any failure of a Pensioner to comply with any disclosure obligation described in 

subsection (b), or with any related disclosure request by the Pension Fund, shall, if the 

Pensioner has been or is engaged in any Reemployment, create a rebuttable 

 



 Applicable federal law, 26 U.S.C. § 411 and 29 U.S.C. § 1053, includes a regulation adopted by 

the Secretary of Labor, 29 CFR § 2530.203-3, which authorizes the permanent suspension by the 

Pension Fund of Periodic Benefit Payments, after a Pensioner’s Vested Pension Retirement Date (age 

65 in the Pension Fund in almost all instances), “for each calendar month, or for each four or five week 

payroll period ending in a calendar month” if during that month, the Pensioner: 

“-Completes 40 or more hours of service ... or 

“-Receives payment for any such hours or service performed on each of 8 or more days 

(separate work shifts) in such month or payroll period...; in 

“ – An industry in which employees covered by the plan were employed 

and accrued benefits under the plan as a result of such employment at 

the time that the payment of benefits commenced or would have 

commenced if the employee had not remained in or returned to 

employment, and 

“ – A trade or craft in which the employee was employed at any time 

under the plan, and 

“ – The geographic area covered by the plan at the time that the payment 

of benefits commenced or would have commenced if the employee had 

not remained in or returned to employment.” 

That applicable law and that regulation are hereby incorporated into this Pension Plan. 

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presumption of an existing factual basis, in accordance with this subsection, for a 

permanent suspension of the Pensioner’s Periodic Benefit Payments during all periods 

of his Reemployment, provided that such presumption will become inoperative if and to 

the extent the presumption is rebutted by clear and convincing evidence or is otherwise 

shown to be unreasonable under the circumstances. Each such permanent suspension 

of Periodic Benefit Payments shall apply not only to the Pensioner or Disabled 

Participant but also to any other potential payee of any part of his suspended Periodic 

Benefit Payments, including any payee pursuant to a qualified domestic relations order 

(such as a former spouse), and including a surviving spouse. Each such permanent 

suspension of Periodic Benefit Payments shall continue in effect until the Pension Fund 

has received what it determines to be both notice and clear and convincing evidence 

that the basis for the permanent suspension is no longer applicable, at which time the 

suspension will be ended and the Periodic Benefit Payments will be resumed on a 

prospective basis only (without any restoration of payments for the period prior to that 

end of the suspension), subject to possible offset pursuant to subsection (e). 

(b) Every Participant, Pensioner and Disabled Participant is obliged, as a 

prerequisite to any receipt of Periodic Benefit Payments, to keep the 

Pension Fund fully and promptly informed of any employment or any 

other performance of services in which he was or is engaged during any 

time period for which he claims or has received Periodic Benefit 

Payments. The Pension Fund may at any time, and as often as is 

reasonable, require appropriate signed authorizations by any Pensioner 

or Disabled Participant to provide the Pension Fund with access to all 

information about his past and present circumstances of any employment 

or any other performance of services, including but not limited to all 

records of any employers and of the Social Security Administration. The 

Pension Fund may also at any time, and as often as is reasonable, 

require appropriate certifications signed by any Pensioner or Disabled 

Participant, and/or appropriate signed responses by any Pensioner or 

Disabled Participant to any requests from the Pension Fund, that relate to 

a determination whether or not he has been and/or is engaged in 

Reemployment or Restricted Reemployment. Any failure of a Pensioner 

or Disabled Participant to comply with any disclosure obligation described 

in this subsection (b), or with any related disclosure request by the 

Pension Fund, shall itself be independent grounds for temporary 

suspension of the Periodic Benefit Payments of the Pensioner or 

Disabled Participant until he complies with his disclosure obligations 

and/or such request to the satisfaction of the Pension Fund, at which 

point his Periodic Benefit Payments will be resumed (including full 

restoration of all payments that had been temporarily suspended) unless 

there is then in effect a permanent suspension of his Periodic Benefit 

Payments in accordance with subsection (a). At the time of any temporary 

suspension of Periodic Benefit Payments in accordance with this 

subsection (b), the Pension Fund shall provide written notice of the 

suspension to the Pensioner or Disabled Participant by first-class mail 

directed to his last known address on any date prior to the initial effective 

date of the suspension, and the notice shall describe the specific reasons 

for the suspension and its initial effective date, and shall inform the 

Pensioner or Disabled Participant of his right to appeal pursuant to 

subsection (d). 

(c) At the time of any permanent suspension of Periodic Benefit Payments in 

accordance with subsection (a), the Pension Fund shall provide written 

notice of the suspension to the Pensioner or Disabled Participant by firstclass mail directed to his last known address on any date prior to the 

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initial effective date of the suspension. The notice shall describe the 

specifics of the Reemployment (including, if applicable, Restricted 

Reemployment) on which the suspension is based, the dates of the 

Reemployment, the initial effective date of the suspension and the right of 

the Pension Fund to restitution (pursuant to subsection [e]) including an 

offset or deduction from post-suspension Periodic Benefit Payments, and 

the notice shall also inform the Pensioner or Disabled Participant of his 

right to appeal pursuant to subsection (d). 

(d) The Benefits Claim and Appeal Procedures of APPENDIX B of this 

Pension Plan shall be applicable to all written requests by a Pensioner or 

Disabled Participant for review of a permanent suspension or a temporary 

suspension of his Periodic Benefit Payments in accordance with 

subsection (a) or subsection (b), and for review of a status determination 

in accordance with subsection (f), except that the initial stage of such 

review shall be conducted by the Benefits Claim Appeals Committee and 

the second stage (if any) of such review shall be conducted by the Board 

of Trustees, provided that the Pensioner or Disabled Participant must 

exhaust both stages of review prior to commencement of any legal action 

with respect to any suspension of his Periodic Benefit Payments or any 

status determination. 

(e) The Pension Fund is entitled to restitution of all Periodic Benefit 

Payments that are distributed to a Pensioner or Disabled Participant for 

any period which is determined by the Pension Fund to be a period of 

Reemployment (including, if applicable, Restricted Reemployment) for 

which the Pensioner or Disabled Participant was not entitled to receive 

such payments. The Pension Fund may obtain that restitution by 

recoupment from any future Periodic Benefit Payments to which the 

Pensioner or Disabled Participant may be entitled for periods after the 

end of a suspension, provided that such recoupment will consist of 100% 

of the gross amount of the first three Periodic Benefit Payments and 25 

percent of the gross amount of each Periodic Benefit Payment thereafter. 

The Pension Fund may also obtain that restitution by any other available 

remedy at law or at equity. 

(f) Every Participant, Pensioner and Disabled Participant is entitled to submit 

a written request to the Pension Fund at any time for a determination 

whether or not specific employment or other specific services constitute 

Reemployment or Restricted Reemployment. Upon receipt of any such 

request, the Pension Fund shall promptly make a determination whether 

or not the specific employment or other specific services constitute 

Reemployment or Restricted Reemployment, and shall promptly provide 

notice of that status determination to the Pensioner or Disabled 

Participant by first-class mail directed to his last known address, which 

notice shall also inform the Pensioner or Disabled Participant of his right 

to appeal pursuant to subsection (d). 

(g) The following definitions are applicable to this Section 4.13 and to all 

other provisions of this Pension Plan: 

(1) Reemployment means and includes any employment, selfemployment, occupation or service of any kind and at any time 

which is a basis for any form of past, present or future wages, 

salary, commissions, profit or other income (including employment 

in a managerial or supervisory position, and including any 

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occupation or service in which there is no employer-employee 

relationship); 

(2) Periodic Benefit Payments means and includes any retirement 

pension benefits payable in accordance with Article IV in monthly 

(or other periodic) amounts during retirement, and Monthly 

Disability Benefits payable in accordance with Section 5.02 during 

total and permanent disability; and 

(3) Restricted Reemployment means and includes any of the 

following, except that, effective as of April 9, 2009, a Pensioner 

age 65 or older, and who for a period of 12 months following his 

Retirement Date has not been engaged in any categories of 

reemployment described below in subsections (A) – (E) that would 

subject him to a suspension of benefits, shall not be deemed to be 

in Restricted Reemployment, regardless of the position or number 

of hours worked: 

(A) Reemployment in a Core Teamster Industry (as defined in 

paragraph 4.13(g)(4)), except that a Pensioner that has 

reached age 65 may work a maximum of 40 hours per 

month in such a position; 

(B) Reemployment by a Contributing Employer (or an 

employer which was a Contributing Employer at any time 

after September 25, 1980), except that a Pensioner that 

has reached age 65 may work a maximum of 40 hours per 

month in such a position; 

(C) Reemployment in any position (or supervising any position) 

that is covered by a Teamster Contract between that 

employer and any affiliate of the International Brotherhood 

of Teamsters, except that a Pensioner that has reached 

age 65 is not subject to this subparagraph (C); 

(D) Reemployment in any position in the same industry in 

which the Pensioner earned Contributory Service Credit 

while covered by the Pension Fund, except that a 

Pensioner that has reached age 60 is not subject to this 

subparagraph (D), and except that a Pensioner that has 

reached age 57 but has not reached age 60 may work a 

maximum of 80 hours per month in such position; or 

(E) Reemployment in any position in the same job 

classification as any other Participant then employed by a 

Contributing Employer located within 100 miles of the 

position, except that a Pensioner that has reached age 60 

is not subject to this subparagraph (E), and except that a 

Pensioner that has reached age 57 but has not reached 

age 60 may work a maximum of 80 hours per month in 

such position. 

(4) Core Teamster Industry means and includes Reemployment in 

any of the following industries: 

(A) trucking and/or freight; 

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(B) small package and/or parcel delivery; 

(C) car haul; 

(D) tank haul; 

(E) warehouse; 

(F) food processing and/or distribution (including grocery, 

dairy, bakery, brewery, and soft drink); and 

(G) building material and/or construction. 

(5) Notwithstanding the provisions of paragraphs 4.13(g)(3) and 

4.13(g)(4), Reemployment with a government agency shall not 

constitute Restricted Reemployment unless such agency is a 

Contributing Employer (or an employer which was a Contributing 

Employer at any time after September 25, 1980). 

(6) Notwithstanding the provisions of subparagraph 4.13(g)(3)(C), and 

only for the purposes of subparagraph 4.13(g)(3)(C), 

Reemployment shall not constitute Restricted Reemployment if 

the Reemployment becomes Restricted Reemployment because 

the Pensioner is in a position (or supervising any position) that 

becomes covered by a Teamster Contract between that employer 

and any affiliate of the International Brotherhood of Teamsters 

subsequent to the beginning of the Pensioner’s Reemployment 

with that employer. 

(7) For purposes of the exception in subparagraphs 4.13(g)(3)(D) and 

the exception in 4.13(g)(3)(E) which allow a Pensioner who is at 

least age 57 but less than age 60 to work a maximum of 80 hours 

a month in such positions, a Pensioner shall not be allowed to 

utilize both the exception in subparagraph 4.13(g)(3)(D) and the 

exception in subparagraph 4.13(g)(3)(E) to exceed a combined 

total of 80 hours per month in such positions. 

(8) If the application of Paragraph 4.13(g)(3) results in a Pensioner 

being found to be in Restricted Reemployment with respect to a 

position that would not have constituted Teamster Industry 

Reemployment under the Plan as defined immediately prior to 

January 1, 2004, then that position shall not constitute Restricted 

Reemployment.

 



Prior to January 1, 2004, paragraph Section 4.13(g)(3) provided: 

(3) Teamster Industry Reemployment means and includes any of the 

following: 

(A) Reemployment in any position by a Contributing Employer 

(or an employer which was a Contributing Employer at any 

time after September 25, 1980); 

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Section 4.14 CONTRIBUTORY SERVICE AFTER RETIREMENT DATE OR AFTER 

DISABILITY 

(a) A Pensioner who becomes reemployed by a Contributing Employer after 

his Retirement Date and who thereafter earns at least one additional year 

of Contributory Service Credit shall, upon retirement, have his retirement 

pension benefit redetermined as follows: 

(1) If, during his period of reemployment, he had less than 250 weeks 

of Contributions made on his behalf, his benefit shall be 

recalculated (under the same Form of Payment as when he last 

retired) as the higher of: 

(A) his Contribution-Based Pension; or 

(B) the retirement pension benefit he originally received. 

(2) If, during his period of reemployment, he had at least 250 weeks 

of Contributions made on his behalf, his benefit shall be 

recalculated as though he never retired and he and his spouse, if 

any, shall be free to choose any applicable Form of Payment for 

receiving his benefit. 

(b) A Pensioner who becomes reemployed by a Contributing Employer after 

his Retirement Date and who thereafter fails to earn at least one 

additional year of Contributory Service Credit shall not be eligible for any 

recalculation of his retirement pension benefit and shall, upon 

reretirement, receive his original benefit under the same Form of 

Payment. 

(c) A Disabled Participant who recovers from his disability and had less than 

250 weeks of Contributory Service Credit from his employment by a 

Contributory Employer between the date of his recovery and his 

Retirement Date shall receive any retirement pension for which he is 

eligible (disregarding any Monthly Disability Benefit he has received), 

provided that, in the calculation of any retirement pension amount, his 

age shall be his age on December 31 of the year (after the date he 

became totally and permanently disabled) in which the amount of his 

actual Vesting Service for that calendar year is less than all minimum 

 

(B) Reemployment by an employer, other than a governmental 

agency in any position covered by a Teamster Contract 

between that employer and any affiliate of the International 

Brotherhood of Teamsters; 

(C) Reemployment (other than governmental employment) in 

any position either in the same industry in which the 

Participant or Pensioner earned any Contributory Service 

Credit while covered by the Pension Fund, or in any other 

industry if the Participant or Pensioner is in the same job 

classification as are other Participants then employed by a 

Contributing Employer located within the same standard 

metropolitan statistical area. 

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Vesting Service amounts specified in Section 1.23(b) for a calendar year, 

and provided further that, if he is eligible for a Contribution-Based 

Pension, Vested Pension, Deferred Pension or Twenty-Year Deferred 

Pension, his age, for purposes of the calculation of the amount of any of 

those benefits (only), shall be his age on his Retirement Date. A 

recovered (former) Disabled Participant who is eligible for a retirement 

pension determined in accordance with the preceding sentence may 

become eligible for a greater retirement pension based upon his Benefit 

Class as determined by the Non-Continuous Contribution Method if he 

has (and includes in his eligibility determination) at least one year but less 

than 250 weeks of Contributory Service Credit from his employment by a 

Contributing Employer between the date of his recovery and his 

Retirement Date. A Disabled Participant who recovers from his disability 

and has at least 250 weeks of Contributory Service Credit from his 

employment by a Contributing Employer between the date of his recovery 

and his Retirement Date shall receive any retirement pension for which 

he is eligible, disregarding any Monthly Disability Benefit he has received. 

(d) The Pension Fund is not liable for benefits based upon this Section 4.14 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 4.15 PERIOD OF BENEFIT DISTRIBUTION 

Except for Participants born before July 1, 1917, the entire benefit and interest of each 

Participant shall be distributed in a period beginning no later than April 1 of the year after 

the calendar year in which he attains age 70-1/2 and ending no later than his death or 

the death of his spouse or other beneficiary eligible for a benefit according to this 

Pension Plan, whichever death is later. For each Participant born before July 1, 1917, 

his entire benefit and interest shall be distributed in a period beginning no later than April 

1 of the year after the calendar year in which his Retirement Date occurs or in which he 

attains age 70-1/2, whichever event is later, and ending no later than his death or the 

death of his spouse or other beneficiary eligible for a benefit according to this Pension 

Plan, whichever death is later. Distributions of all benefits and interests will be made by 

the Pension Fund in a manner consistent with Section 401(a)(9) of the Internal Revenue 

Code and regulations issued pursuant to authority of that section. 

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ARTICLE V DISABILITY BENEFITS 

Section 5.01 DEFINITION OF DISABILITY 

(a) A disability shall be considered total and permanent if a Participant is 

wholly disabled by bodily injury or disease and shall be permanently, 

continuously and wholly prevented by this disability from engaging in any 

occupation and performing any work for wage or profit during the 

remainder of his lifetime. The entire and irrevocable loss of sight in both 

eyes, or the severance of both hands above the wrist, or both feet above 

the ankle, or one hand above the wrist and one foot above the ankle shall 

be recognized by the Board of Trustees as total and permanent disability. 

(b) The Board of Trustees shall accept a Certificate of Social Insurance 

Award under Title II of the Social Security Act as evidence of total and 

permanent disability. 

Section 5.02 MONTHLY DISABILITY BENEFITS 

(a) To become eligible for a Monthly Disability Benefit, a Participant must 

become totally and permanently disabled (as defined in Section 5.01) 

before his 62nd birthday and while he is an Active Participant or within 2 

calendar years after becoming an Inactive Participant, and meet each of 

the following requirements at the time he stops working in Covered 

Service: 

(1) he must have at least 10 years of Service Credit; and 

(2) he must have met the Minimum Contribution Requirement; and 

(3) he must have Contributions made on his behalf at the rates 

required by at least Benefit Class 4 of either Schedule A or 

Schedule B. 

(b) The amount of the Monthly Disability Benefit of a Participant whose 

Benefit Class is any of 4 through 17a and 17b (regardless of his age 

when he became disabled) shall be: 

(1) $150 for a Participant whose effective date of benefit payments 

precedes July 1, 1986; 

(2) $250 for a Participant whose effective date of benefit payments is 

on or after July 1, 1986. 

(c) The amount of the Monthly Disability Benefit of a Participant whose 

Benefit Class is 18 or 18+ on the date on which he becomes disabled, an 

amount which is based upon his age (Age at Disability) on that date, shall 

be: 

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 Age at 

 Disability Amount 

 50 (and younger) $ 650 

 51 700 

 52 750 

 53 800 

 54 850 

 55 900 

 56 950 

 57 (and older) 1,000 

(d) Subject to the Rules and Procedures for Suspension of Benefits (as 

described in Section 4.13), the Contributory Service After Retirement 

Date or After Disability (as described in Section 4.14) and the Benefits 

Claim Filing Procedures (as described in Section 7.14), the Monthly 

Disability Benefit becomes payable to a Disabled Participant on the 1st 

day of the 6th month following the date the Participant became disabled. 

Monthly Disability Benefit payments shall continue to be made to a 

Disabled Participant until the 1st day of the month in which the earliest of 

the following occurs: 

(1) he becomes a Pensioner; or 

(2) he recovers from his disability; or 

(3) he dies. 

(e) Effective July 1, 1986, a Participant eligible to receive a Monthly Disability 

Benefit from this Pension Plan, or any earlier version of this Pension Plan, 

shall receive a $100 increase in the monthly amount of his disability 

benefit (subject to the provisions of Appendix D of this Pension Plan) if: 

(1) his effective date of disability benefit payments precedes July 1, 

1986; and 

(2) he is eligible to continue receiving his disability benefit on July 1, 

1986. 

(f) The Pension Fund is not liable for benefits based upon this Section 5.02 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 5.03 LUMP SUM DISABILITY BENEFITS 

(a) To become eligible for a Lump Sum Disability Benefit, a Participant must 

become totally and permanently disabled (as defined in Section 5.01) on 

or after his 45th birthday, and while he is an Active Participant or within 2 

calendar years after becoming an Inactive Participant, and meet each of 

the following requirements at the time he stops working in Covered 

Service: 

(1) he must have at least 10 years of Service Credit; and 

(2) he must have met the Minimum Contribution Requirement; and 

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TM:538126 / 01096280 / 01/01/2015 

(3) he must not be eligible to receive the Monthly Disability Benefit or, 

if eligible, he chooses not to receive the Monthly Disability Benefit. 

(b) The amount of the Lump Sum Disability Benefit payable to a Disabled 

Participant shall be either: 

(1) the lesser of $3,000 or 50% of the Employer Contributions made 

on behalf of the Disabled Participant if he has had Contributions 

made on his behalf under Schedule B;

(2) the lesser of $2,000 or 50% of the Employer Contributions made 

on behalf of the Disabled Participant if he has had Contributions 

made on his behalf under Schedule A.

(c) The amount of the Lump Sum Disability Benefit determined in (b), above, 

shall be reduced by any amounts previously paid as a Lump Sum 

Disability Benefit. 

(d) The Lump Sum Disability Benefit shall become payable to a Disabled 

Participant on the 1st day of the 6th month following the date he became 

disabled. 

(e) The Pension Fund is not liable for benefits based upon this Section 5.03 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 5.04 50% SURVIVING SPOUSE BENEFIT 

(a) In the event of the death of a Disabled Participant before his Normal 

Retirement Date and while he is married and receiving or eligible to 

receive a Monthly Disability Benefit, his surviving spouse will receive the 

50% Surviving Spouse Benefit provided in Section 6.01, if the conditions 

of that section are satisfied, in an amount determined as if he were a 

Participant but not a Disabled Participant on the date of his death and 

calculated in accordance with Section 5.05(A). 

(b) In the event a Disabled Participant is alive and married on his Normal 

Retirement Date, he and his spouse will be entitled to elect the Joint and 

50% Surviving Spouse Option (based upon a retirement pension and not 

the Monthly Disability Benefit), in accordance with Section 4.10(b) and (f) 

determined as if he were a Participant but not a Disabled Participant on 

his Normal Retirement Date and calculated in accordance with Section 

5.05(A), provided that: 

(1) in such circumstances, the election period of Section 4.10(f) will 

begin 90 days prior to his Normal Retirement Date and extend 

until the 90th day after his Normal Retirement Date; and 

(2) unless the Disabled Participant and his spouse (as of his Normal 

Retirement Date) both elect in writing not to receive the Joint and 

50% Surviving Spouse Option, then, if the Disabled Participant 

dies after his Normal Retirement Date and is survived by that 

spouse, the reduced amount of that surviving spouse’s lifetime 

benefit will be determined as if he had never been a Disabled 

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Participant and as if he had become a Pensioner on his Normal 

Retirement Date (even if there is a continuation of his Monthly 

Disability Benefit between his Normal Retirement Date and his 

death). 

(c) The Pension Fund is not liable for benefits based upon this Section 5.04 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 5.05 CHOICE OF DISABILITY BENEFITS 

Only one type of retirement pension or disability benefit shall be payable to a Disabled 

Participant. If a Disabled Participant is eligible for both a retirement pension and a 

disability benefit, he must elect the benefit he is to receive. The election made by a 

Disabled Participant shall be irrevocable before his Normal Retirement Date, except as 

provided by Section 4.13 (Rules and Procedures for Suspension of Benefits and Section 

4.14 (Contributory Service After Retirement Date or After Disability). On his Normal 

Retirement Date, a Disabled Participant may elect or, if he is married, he and his spouse 

may jointly elect, in writing, one of the following benefits: 

(a) any retirement pension for which he is eligible (disregarding any Monthly 

Disability Benefit he has received), provided that, in the calculation of any 

retirement pension amount, his age shall be his age on December 31 of 

the year (after the date he became totally and permanently disabled) in 

which the amount of his actual Vesting Service for that calendar year is 

less than all minimum Vesting Service amounts specified in Section 

1.23(b) for a calendar year, and provided further that, if he is eligible for a 

Contribution-Based Pension, Vested Pension, Deferred Pension or 

Twenty-Year Deferred Pension, his age, for purposes of the calculation of 

the amount of any of those benefits (only), shall be his age on his Normal 

Retirement Date; 

(b) a continuation of the amount which he had been receiving as a Monthly 

Disability Benefit. 

 

If a Disabled Participant is alive and married on his Normal Retirement Date, he and his 

spouse shall jointly make the above-referenced written benefits election and, if a 

retirement pension (instead of the Monthly Disability Benefit) is elected, he and his wife 

shall also jointly make a written election to receive or not to receive the Joint and 50% 

Surviving Spouse Option, in accordance with Sections 4.10(b) and (f) and 5.04(b). The 

Pension Fund is not liable for benefits based upon this Section 5.05 to the extent such 

liability has been transferred by the Pension Fund pursuant to APPENDIX L of this 

Pension Plan. 

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ARTICLE VI BEFORE RETIREMENT DEATH BENEFITS 

Section 6.01 50% SURVIVING SPOUSE BENEFIT 

(a) For his surviving spouse to become eligible for a 50% Surviving Spouse 

Benefit, a Participant must have met each of the following requirements at 

the time of his death: 

(1) he must have been married; and 

(2) he must have been a Vested Participant or eligible for a TwentyYear Service Pension or Early Retirement Pension. 

(b) The monthly amount of a 50% Surviving Spouse Benefit is 50% of the 

monthly amount a deceased Participant could have received under the 

Joint and 50% Surviving Spouse Option form of payment, and is 

determined as if he had stopped working in Covered Service on the day 

before his death and had retired during the month preceding the “effective 

date of payment” elected by his surviving spouse as described in (c), 

below. 

(c) Subject to the Benefits Claim Filing Procedures (as described in Section 

7.14), the surviving spouse of a deceased Participant may elect an 

effective date of payment which is not earlier than the later of the 1st day 

of the month following the month in which the death of the Participant 

occurs, or the earliest date on which the Participant could have received 

immediate payment of a retirement pension from this Pension Plan if he 

had survived. 

(d) The Pension Fund is not liable for benefits based upon this Section 6.01 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 6.02 60 MONTH SURVIVOR BENEFIT 

(a) For the surviving spouse or dependent child (or dependent children) of a 

Participant who dies before his Retirement Date to become eligible for the 

60 Month Survivor Benefit, the Participant must die while he is an Active 

Participant or within 2 calendar years after becoming an Inactive 

Participant. In addition, the Participant must also have met each of the 

following requirements at the time of his death: 

(1) he must have had at least 20 years of Service Credit; and 

(2) he must have met the Minimum Contribution Requirement; and 

(3) he must be survived by a spouse or dependent child or dependent 

children; and 

(4) he must have been eligible to have his retirement pension 

determined by at least Benefit Class 4 of either Schedule A or 

Schedule B. 

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(b) The monthly amount of the 60 Month Survivor Benefit is the greater of 

$160, or the monthly amount of the retirement pension benefit the 

deceased Participant could have received on the date of his death under 

the Lifetime With Limited Surviving Spouse Option. 

(c) The 60 Month Survivor Benefit is payable to the surviving spouse of a 

deceased Participant. If a deceased Participant is not survived by a 

spouse, then the 60 Month Survivor Benefit is payable to the surviving 

dependent child or in equal shares to the surviving dependent children of 

the deceased Participant. 

(d) For purposes of the 60 Month Survivor Benefit, a dependent child is the 

deceased Participant’s natural or adopted unmarried, dependent child 

who is either under age 23 or is adjudged to be mentally or physically 

incompetent. 

(e) Subject to the Benefits Claim Filing Procedures (as described in Section 

7.14), the 60 Month Survivor Benefit becomes payable to a recipient (or 

recipients) on the 1st day of the month following the month in which the 

death of a Participant occurs. Benefit payments shall continue until 60 

months of benefits are paid to the recipient (or recipients) or, if earlier, the 

death of the recipient (or recipients). 

(f) The Pension Fund is not liable for benefits based upon this Section 6.02 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 6.03 DISABILITY DEATH BENEFIT 

(a) A lump sum Disability Death Benefit of $1,000 is payable if a Disabled 

Participant dies while receiving or while eligible to receive, a Monthly 

Disability Benefit, provided that this Disability Death Benefit is not payable 

if the Benefit Class 18/18+ Death Benefit is payable pursuant to Section 

6.05 or if the payee of this Disability Death Benefit would be the surviving 

spouse of a deceased Disabled Participant and the surviving spouse 

elects to receive a 50% Surviving Spouse Benefit in accordance with 

Section 5.04. 

(b) The Disability Death Benefit is payable in equal shares to all members of 

the highest level of survivors as follows: 

(1) Spouse; 

(2) Dependent Children; 

(3) Non-Dependent Children; 

(4) Parents; 

(5) Brothers and Sisters; 

(6) Estate. 

(c) The Disability Death Benefit provides a $500 lump sum benefit upon the 

death of the spouse of a Disabled Participant who is receiving or eligible 

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to receive, a Monthly Disability Benefit. This $500 lump sum benefit is 

payable to a Disabled Participant only once during his lifetime. 

(d) The Pension Fund is not liable for benefits based upon this Section 6.03 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 6.04 LUMP SUM DEATH BENEFIT 

(a) For a survivor of a deceased Participant to become eligible for the Lump 

Sum Death Benefit, a Participant must have died while he was an Active 

Participant or within 2 calendar years after he became an Inactive 

Participant, provided that this Lump Sum Death Benefit is not payable if 

the Benefit Class 18/18+ Death Benefit is payable pursuant to Section 

6.05. In addition, the Participant must also have met each of the following 

requirements at the time of his death: 

(1) he must have had at least 10 years of Service Credit; 

(2) he must have met the Minimum Contribution Requirement; and 

(3) he must not have received any retirement pension or disability 

benefit from the Pension Fund; and 

(4) his survivors must not have received any other death benefit from 

the Pension Fund. 

(b) The amount of a Lump Sum Death Benefit shall be: 

(1) the lesser of $4,000 or 50% of the Employer Contributions made 

on behalf of a deceased Participant if he had had Contributions 

made on his behalf under Schedule B; or 

(2) the lesser of $2,000 or 50% of the Employer Contributions made 

on behalf of a deceased Participant if he had had Contributions 

made on his behalf under Schedule A.

(c) A Lump Sum Death Benefit is payable in equal shares to all members of 

the highest level of survivors as follows: 

(1) Spouse; 

(2) Dependent Children; 

(3) Non-Dependent Children; 

(4) Parents; 

(5) Brothers and Sisters; 

(6) Estate. 

(d) The Pension Fund is not liable for benefits based upon this Section 6.04 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

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Section 6.05 BENEFIT CLASS 18/18+ DEATH BENEFIT 

(a) A Benefit Class 18/18+ Death Benefit consisting of a $10,000 payment to 

the surviving spouse of a deceased Participant or, if none, to his 

dependent children (if any) in equal shares is payable if the Participant 

met each of the following requirements at the time of his death: 

(1) He has had at least 10 days or 2 weeks of Employer Contributions 

(and not Self-Contributions) made on his behalf at a rate 

corresponding to Benefit Class 18 or 18+ or, if he is employed as 

a casual Employee or changes Contributing Employers (but not 

Bargaining Units) on or after such date, he had at least 100 days 

or 20 weeks of Employer Contributions (and not SelfContributions) made on his behalf at a rate corresponding to 

Benefit Class 18 or 18+; and 

(2) He died while he was an Active Participant or within 2 calendar 

years after he became an Inactive Participant; and 

 

(3) He had at least 10 years of Service Credit; and 

(4) He died prior to his Retirement Date if he was not a Disabled 

Participant or, if he was a Disabled Participant, he died while he 

was receiving a Monthly Disability Benefit and prior to his 65th 

birthday. 

(b) The Benefit Class 18/18+ Death Benefit is payable in addition to any 

survivor benefit payable in accordance with Section 6.01 or 6.02. 

(c) The Pension Fund is not liable for benefits based upon this Section 6.05 

to the extent such liability has been transferred by the Pension Fund 

pursuant to APPENDIX L of this Pension Plan. 

Section 6.06 CHOICE OF SURVIVOR BENEFITS OR DEATH BENEFITS 

Except as otherwise provided in Section 6.05, only one survivor benefit or death benefit 

is payable upon the death of a Participant. If a surviving spouse or other payee is eligible 

for more than one survivor benefit and/or death benefit, a choice must be made by the 

payee as to which single survivor benefit or which single death benefit will be paid, 

provided that a payee eligible to receive a Benefit Class 18/18+ Death Benefit may also 

be eligible to receive a survivor benefit payable in accordance with Section 6.01 or 6.02. 

That choice upon being made shall be irrevocable, except in cases where a choice is 

made to receive a Lump Sum Death Benefit for which the surviving spouse or other 

payee is eligible before the Pension Fund completes the processing of a claim for a 

survivor benefit or another death benefit the surviving spouse or other payee is also 

eligible to receive. The choice of the benefit to be received must be made in writing on 

documents furnished by the Pension Fund. Any such document must be signed by the 

surviving spouse or other payee and witnessed by a notary public. 

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Section 6.07 SPECIAL RULES FOR DEATH OCCURRING DURING QUALIFIED MILITARY 

SERVICE 

(a) In the case of a Participant who dies on or after January 1, 2007 while 

performing Qualified Military Service, the survivors of the Participant are 

entitled to any additional benefits (other than benefit accruals relating to 

the period of Qualified Military Service) provided under the Pension Plan 

had the Participant resumed and then terminated employment on account 

of death. 

(b) For purposes of Section 6.07, the term “Qualified Military Service” means 

any Service in the Uniformed Services by a Participant if such Participant 

is entitled to USERRA reemployment rights provided in accordance with 

Internal Revenue Code § 414(u). 

(c) For purposes of Section 6.07, the term “Service in the Uniformed 

Services” is defined in chapter 43 of title 38, United States Code, which 

includes, but is not limited to the performance of duty on a voluntary or 

involuntary basis in a uniformed service including active duty, active duty 

and inactive duty training, and full-time National Guard duty, for the 

United States Armed Forces (Army, Navy, Air Force, Marine Corps, and 

Coast Guard), the Army National Guard and the Air National Guard, the 

commissioned corps of the Public Health Service and National Oceanic 

and Atmospheric Administration, and any other category of persons 

designated by the President in time of war or national emergency. 

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ARTICLE VII ADMINISTRATION 

Section 7.01 ADMINISTRATION AUTHORITY 

The Board of Trustees has authority to control and manage jointly the operation and 

administration of the Pension Fund and of this Pension Plan in accordance with the 

terms of the Trust Agreement and of this Pension Plan and amendments thereof, 

including the authority to establish and effectuate funding policies and methods 

consistent with the objectives of this Pension Plan, and including the authority provided 

by the Trust Agreement to allocate responsibilities for the operation and administration of 

the Pension Fund and of this Pension Plan. 

Section 7.02 AMENDMENT OF THE PENSION PLAN 

This Pension Plan may be amended by the Board of Trustees at any time and to any 

lawful extent and purpose so long as such amendments comply with applicable 

provisions of the Internal Revenue Code, all other applicable federal laws and 

regulations, the contract articles creating the Pension Fund and the purposes set forth in 

the Trust Agreement. 

Section 7.03 DECISIONS OF BOARD OF TRUSTEES 

All decisions by the Board of Trustees, including all rules and regulations adopted by the 

Board of Trustees, all amendments of the Trust Agreement and this Pension Plan by the 

Board of Trustees and all interpretations by the Board of Trustees of any of said 

documents, shall be binding upon all parties to the Trust Agreement, the Union, each 

Contributing Employer, all individuals claiming benefits pursuant to this Pension Plan or 

any amendment thereof and all other individuals engaging in any transaction with the 

Pension Fund. 

Section 7.04 BENEFITS CLAIM AND APPELLATE PROCEDURES 

The Board of Trustees has adopted procedures to afford a fair and expeditious method 

for the processing of claims for pension and other benefits provided by this Pension 

Plan. APPENDIX B attached to this Pension Plan contains the Benefits Claim and 

Appeal Procedures effective at the present time (subject to possible amendment). 

Compliance with these procedures is a condition precedent to any legal action by a 

claimant with respect to a partial or complete denial of a claim for benefits. 

Section 7.05 RECOVERY OF OVERPAYMENTS 

(a) Any misrepresentation in a claim by a claimant to the Pension Fund for 

pension or other benefits or in the course of a review in accordance with 

the procedures described in Section 7.04 of this Pension Plan, shall 

constitute grounds for adjustment of the claim and of the requested 

benefits, for recovery by the Pension Fund of any benefit payments in 

reliance upon said misrepresentation and for any other equitable or legal 

remedies available to the Pension Fund. 

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(b) Whenever the Pension Fund has made benefit payments exceeding the 

amount determined by the provisions of its Pension Plan, due to a 

mistake, the Board of Trustees shall have a right to recover the excess 

payments. 

Section 7.06 PAYMENT OF BENEFITS FOR INDIVIDUALS UNDER LEGAL DISABILITY OR 

IN SIMILAR MENTAL OR PHYSICAL CONDITION 

In the event benefit payments pursuant to this Pension Plan are payable to an individual 

who is under legal disability, or to an individual who, while not adjudicated to be an 

incompetent, is shown to the satisfaction of the Board of Trustees to be unable, by 

reason of a mental or physical condition, to administer properly such payments, then 

such payments may be paid for the benefit of such individual in such of the following 

ways as the Board of Trustees determines to be appropriate: 

(a) directly to such individual; or 

(b) to the legally appointed guardian or conservator of such individual; or 

(c) to a spouse, parent, brother or sister of such individual for his welfare, 

support or maintenance; or 

(d) to an institution providing care to such individual for his support, 

maintenance and welfare. 

Section 7.07 SPENDTHRIFT CLAUSE 

No right to pension benefits or other benefits provided by this Pension Plan may be 

assigned or alienated in any manner, except as provided in this section and except as 

otherwise required or permitted by law. Upon receipt of written direction from any eligible 

recipient of monthly benefit payments, the Pension Fund will participate in an 

arrangement to make deductions from each monthly benefit payment, as authorized and 

directed by the recipient, and to transfer the amount of each such deduction to the 

Central States, Southeast and Southwest Areas Health and Welfare Fund as the 

recipient’s monthly contribution to retain eligibility for coverage pursuant to the retiree 

benefit plan established by that fund. This deduction-transfer arrangement is effective 

commencing October 1, 1988 and will continue, relative to each such recipient who 

authorizes and directs it, until the Pension Fund receives the recipient’s written 

cancellation of such authority and direction (or the earlier termination of benefits). Any 

authority and direction to the Pension Fund by a recipient of monthly benefit payments, 

to make such deductions and transfers, is revocable at any time by the recipient. 

Section 7.08 ELIGIBILITY VERIFICATION 

Each individual receiving pension or other benefits provided by this Pension Plan shall 

submit to the Pension Fund on request his sworn statement that verifies his continuing 

eligibility to receive such benefits. If such statement is not received by the Pension Fund 

within 60 days after a request therefor is mailed to his last known address, all benefit 

payments shall be suspended until such statement is received and approved by the 

Pension Fund. 

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Section 7.09 TERMINATION OF THE PENSION PLAN 

It is the intention of the Board of Trustees that this Pension Plan shall continue to 

operate in full force and effect, although the Board of Trustees does reserve the power 

and right to terminate this Pension Plan in whole or in part. In the event of full or partial 

termination of this Pension Plan, the rights of all Participants to benefits accrued to the 

date of such full or partial termination, to the extent funded as of such date, shall be 

nonforfeitable. 

Section 7.10 MERGERS 

The Board of Trustees has authority to approve and effect any merger between the 

Pension Fund and another pension fund in accordance with the terms of the Trust 

Agreement and applicable federal law. No participant’s or beneficiary’s accrued benefit 

will be lower immediately after the effective date of any such merger than the benefit 

immediately before that date. 

Section 7.11 CONSTRUCTION 

This Pension Plan is created and administered in the State of Illinois. All questions 

pertaining to the validity of construction of this Pension Plan shall be determined in 

accordance with the laws of the State of Illinois and, to the extent of pre-emption with the 

laws and regulations of the United States. 

Section 7.12 SAVINGS CLAUSE 

If any provisions of this Pension Plan shall be held to be unlawful, or unlawful as to any 

individual or instance, such fact shall not affect adversely any other provision contained 

within the Pension Plan or the application of such provision to any other individual or 

instance unless and until such illegality shall make impossible the administration of this 

Pension Plan. 

Section 7.13 CHANGE OF ADDRESS 

A Pensioner, Disabled Participant or other individual receiving benefit payments who 

fails to notify the Pension Fund of a change of address shall have all benefit payments 

which are undeliverable held without interest unless and until a claim therefor is made. 

Section 7.14 BENEFITS CLAIM FILING PROCEDURES 

(a) The Benefits Claim Filing Procedures (in subsection (b) and (c), below) 

shall be applied to any written claim for benefits (other than Monthly 

Disability Benefits) filed by a Participant, surviving spouse or other 

individual claiming benefits under this Pension Plan for an event (the date 

of a retirement or death) which occurs on or after July 1, 1987. 

(b) A Participant, surviving spouse or any other individual claiming benefits 

under this Pension Plan shall be required to file a written claim for 

benefits (other than Monthly Disability Benefits) with this Pension Fund 

within the 12 month period following the event (retirement or death) for 

which benefits are being claimed. In addition, such a claimant shall also 

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be required to notify the Pension Fund, in writing, and within the 12 month 

period following the date from which he intends his benefit payments to 

begin, that he wishes to begin receiving his benefit UNLESS he has 

already filed a written claim specifying that date. 

(c) If a Participant, surviving spouse or any other individual claiming benefits 

under this Pension Plan fails to comply with the requirements in (b), 

above, he shall, in addition to future benefits, receive benefits only for the 

12 calendar months preceding the month which follows the month in 

which he meets the last applicable requirement in (b), above. 

Section 7.15 MAXIMUM BENEFIT LIMITATIONS 

(a) No benefits payable in accordance with this Pension Plan shall exceed 

applicable maximum benefit limitations established by the Internal 

Revenue Code (‘Code’), including past and future amendments of the 

Code. The compensation limit established by Section 415(b)(1)(B) of the 

Code, which is incorporated by reference in this Pension Plan, as that 

limit applies to the actual compensation of any Vested Participant whose 

Contributory Service is concluded, shall be adjusted by multiplying the 

Participant’s actual compensation limit amount by a fraction, the 

numerator of which is the adjusted maximum dollar limitation (to be 

prescribed by the Secretary of the Treasury pursuant to Section 415 of 

the Code) for the current year and the denominator of which is the 

adjusted maximum dollar limitation for the final year of the Participant’s 

Contributory Service. If a Pensioner is also entitled to benefits from one or 

more defined benefit plans and the required combination of the 

Pensioner’s benefit from the Pension Fund and the other plan or plans 

requires some benefit adjustments to maintain compliance with applicable 

maximum benefit limitations of the Code, the benefit adjustments will be 

made by all such plans and the adjustment of each plan will be based 

upon its proportionate share of the aggregate benefits that would be 

payable by all such plans if such adjustments were not made. 

(b) The term “compensation”, for purposes of this Section 7.15 and of 

Section 415 of the Code, includes those items specified in paragraph 

(d)(2)(i) of 26 CFR 1.415-2 and excludes those items specified in 

paragraph (d)(3) of 26 CFR 1.415-2, if applicable. For limitation years 

beginning on and after January 1, 1998, and for purposes of applying the 

compensation limit of this Section 7.15 and of Section 415 of the Code, 

compensation paid or made available during such limitation years shall 

include any elective deferral as defined in Section 402(g)(3)) of the Code 

as well as any elective amount which is not includible in the gross income 

of the Employee by reason of Section 125 or Section 132(f)(4) or Section 

457 of the Code. 

(c) As a result of an amendment (Public Law No. 107-16, Section 654) of 

Section 415 of the Code that became applicable to the Pension Fund and 

the Pension Plan in the plan year that began on January 1, 2002, the 

compensation limit of Section 415(b)(1)(B) of the Code is not applicable 

to any benefits distributed by the Pension Fund on and after January 1, 

2002. 

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Section 7.16 DIRECT ROLLOVER PAYMENTS TO ELIGIBLE RETIREMENT PLANS 

(a) This Section 7.16 applies to distributions made on or after January 1, 

1993. Notwithstanding any provision of this Pension Plan to the contrary 

that would otherwise limit a distributee’s election under this Section 7.16, 

a distributee may elect, at the time and in the manner prescribed by the 

Board of Trustees, to have an eligible rollover distribution (either the 

entire distribution or a portion no less than $500) paid directly to an 

eligible retirement plan specified by the distributee in a direct rollover. In 

the event of an eligible rollover distribution greater than $1,000, if the 

distributee does not elect either to have such distribution paid directly to 

an eligible retirement plan specified by the distributee in a direct rollover 

or to receive the distribution directly, the Pension Fund will pay the 

distribution in a direct rollover to an individual retirement plan designated 

by the Board of Trustees. 

(b) Definitions: 

(1) Code: Internal Revenue Code. 

(2) Eligible rollover distribution: An eligible rollover distribution is any 

distribution of all or any portion of the balance to the credit of the 

distributee, except that an eligible rollover distribution does not 

include: any distribution that is one of a series of substantially 

equal periodic payments (not less frequently than annually) made 

for the life of the distributee or the joint lives of the distributee and 

the distributee’s designated beneficiary, or for a specified period of 

ten years or more; and any distribution to the extent such 

distribution is required under Section 401(a)(9) of the Code. An 

eligible rollover distribution includes: 

(A) a lump sum benefit that is payable to a Pensioner upon the 

death of the spouse of the Pensioner, in accordance with 

Section 4.10(c)(5) of this Pension Plan; 

(B) each distribution of the balance of the first 60 months of 

retirement pension benefit payments that is payable to the 

surviving spouse of a Pensioner upon the death of the 

Pensioner before receiving 60 months of payments, in 

accordance with Section 4.10(d)(4) of this Pension Plan; 

(C) the Lump Sum Disability Benefit that is payable to a 

Participant (or, if the disabled Participant dies before this 

benefit is paid, to the surviving spouse of the Participant), 

in accordance with Section 5.03 of this Pension Plan; and 

(D) each distribution of the 60-Month Survivor Benefit that is 

payable to the surviving spouse of a Participant who dies 

before his Retirement Date, in accordance with Section 

6.02 of this Pension Plan; and 

(E) the portion of a distribution that consists of after-tax 

employee contributions which are not included in gross 

income, provided that such portion may be paid only to an 

individual retirement account or annuity described in 

section 408(a) or (b) of the Code, or to a qualified trust or 

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to an annuity contract described in section 403(b) of the 

Code that agrees to separately account for amounts so 

transferred, including separately accounting for the portion 

of such distribution which is includible in gross income and 

the portion of such distribution which is not so includible. 

(3) Eligible retirement plan: An eligible retirement plan is any one of 

the following entities which accepts the distributee’s eligible 

rollover distribution: an individual retirement account described in 

Section 408(a) of the Code, an individual retirement annuity 

described in Section 408(b) of the Code, an annuity plan 

described in Section 403(a) of the Code, an annuity contract 

described in Section 403(b) of the Code, a qualified trust 

described in Section 401(a) of the Code, or an eligible plan which 

is both described in Section 457(b) of the Code and maintained by 

an eligible employer defined in Section 457(e)(1)(A) of the Code 

(“a State, political subdivision of a State, and any agency or 

instrumentality of a State or political subdivision of a State”). This 

definition of eligible retirement plan shall also apply in the case of 

a distribution to a surviving spouse of a Participant or Pensioner, 

or to the spouse or former spouse of a Participant or Pensioner 

who is the alternate payee under a qualified domestic relations 

order, as defined in Section 414(p) of the Code. 

(4) Distributee: A distributee includes an Employee or former 

Employee. In addition, the Employee’s or former Employee’s 

surviving spouse, and the Employee’s or former Employee’s 

spouse or former spouse who is the alternate payee under a 

qualified domestic relations order, as defined in Section 414(p) of 

the Code, are distributees with regard to the interest of the spouse 

or former spouse. 

(5) Direct rollover: A direct rollover is a payment by the Pension Fund 

to the eligible retirement plan specified by the distributee. 

(c) Special Rule for Designated Non-Spousal Beneficiary: Effective January 

1, 2010, a Participant’s non-spousal Beneficiary may elect to transfer a 

distribution that would be an eligible rollover distribution if it were made to 

a spousal Beneficiary to an IRA described in section 408(a) or (b) of the 

Code that will be treated as an inherited IRA, within the meaning of 

section 408(d)(3)(C) of the Code, pursuant to a direct rollover. A trust can 

be a designated beneficiary if it meets the requirements of section 

401(a)(9)(E) of the Code. 

(d) Rollover to Roth IRA: Notwithstanding any provision of the Plan to the 

contrary, for distributions made on or after January 1, 2008 (effective 

January 1, 2010 with regard to a non-spousal Beneficiary), a distributee 

or non-spousal Beneficiary may roll over directly all or any portion of his 

eligible rollover distribution to a Roth IRA, subject to the limitations set 

forth in Section 408A of the Code. The Board of Trustees is not 

responsible for assuring that the distributee or non-spousal Beneficiary is 

eligible to make a rollover under this Section. 

36.1.91
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TM:538126 / 01096280 / 01/01/2015 

Section 7.17 ASSET-TRANSFER RULES UNDER SECTION 4234 OF ERISA 

The Pension Plan shall not transfer liabilities to a single-employer plan pursuant to 

Section 4232 of ERISA; accordingly, assets shall not be transferred pursuant to Section 

4234 of ERISA. The preceding sentence shall not apply to any transfer of liabilities 

pursuant to APPENDIX L of this Pension Plan. 

Section 7.18 VALIDITY OF ELECTIONS AND CONSENTS MADE WITH RESPECT TO THE 

UPS/IBT FULL-TIME PENSION PLAN 

Notwithstanding anything to the contrary, any election or spousal consent made under 

the UPS/IBT Full-Time Employee Pension Plan by any Grandfathered Central States 

Pension Plan Participant (as defined in such other plan) shall be given full force and 

effect as an election or spousal consent with respect to any benefits payable under this 

Pension Plan (and shall not be subject to change or revocation by reason of the passage 

of time, change in marital status or any other event after benefits have commenced 

under the UPS/IBT Full-Time Employee Pension Plan). 

Section 7.19 REHABILITATION PLAN: PENSION PROTECTION ACT OF 2006 

In compliance with the Pension Protection Act of 2006 (Pub.L. 109-280), the Board of 

Trustees adopted a rehabilitation plan (which is APPENDIX M of this Pension Plan) on 

March 25, 2008, effective immediately. Benefits, and rights to benefits, described in this 

Pension Plan may be reduced, eliminated and otherwise adjusted at any time to the 

extent provided in APPENDIX M of this Pension Plan, as initially adopted and as may be 

amended at any time, and any such reduction, elimination and other adjustment will be 

retroactively and prospectively applicable and effective to the extent provided in 

APPENDIX M. 

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APPENDIX A-1. ADJUSTMENT FACTORS FOR THE JOINT AND 50% SURVIVING SPOUSE 

OPTION 

Section 1. ANTI-CUTBACK PROVISION 

(a) Relative to any effective date of benefit payments prior to March 1, 2008, 

if the Participant who retires or otherwise becomes eligible for benefits 

from the Pension Plan on or after January 1, 1985, would have been 

eligible for benefits from the Pension Plan in effect on December 31, 

1984, had he retired on December 31, 1984, the Participant, if he elects 

to receive his benefits under the Joint and 50% Surviving Spouse Option 

form of payment, shall be eligible to receive the greater of: 

(1) the amount determined under this Pension Plan using the 

Adjustment Factors provided in Section 2 of this Appendix A-1; 

(2) the amount he could have received if he had retired on December 

31, 1984, using the adjustment factors provided in the Pension 

Plan in effect on that date. 

As used in this Appendix A-1, the phrase “effective date of benefit 

payments” means the first day of the first period for which an amount is 

payable to a Pensioner as a retirement pension (including a “retroactive 

annuity starting date” as defined in Section 4.10 of this Pension Plan). 

(b) Relative to any effective date of benefit payments on or after March 1, 

2008, the Participant, if he elects to receive his benefits under the Joint 

and 50% Surviving Spouse Option form of payment, shall be eligible to 

receive the greater of: 

(1) the amount determined under subsection (a) of this section; 

(2) the amount determined using the Adjustment Factors provided in 

Section 3 of this Appendix A-1. 

Section 2. TABLE OF SEX NEUTRAL ADJUSTMENT FACTORS: BENEFIT PAYMENTS 

INITIALLY EFFECTIVE PRIOR TO MARCH 1, 2008 

The Table below shall be used to calculate the Joint and 50% Surviving Spouse Option 

form of payment if: 

(a) the effective date of benefit payments is after December 31, 1984, and 

prior to March 1, 2008; or 

(b) the Participant had not reached his 55th birthday before his death or 

Retirement Date, but had earned any Contributory Service after August 

18, 1984. 

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APPENDIX A-1, SECTION 2 

Table of Sex Neutral Adjustment Factors 

(age difference is determined by the difference between the 

Participant’s year of birth and the spouse’s year of birth) 

 PARTICIPANT OLDER PARTICIPANT YOUNGER 

 THAN SPOUSE THAN SPOUSE 

AGE DIFFERENCE ADJUSTMENT AGE DIFFERENCE ADJUSTMENT 

 IN YEARS FACTOR IN YEARS FACTOR

 0 .850 0 .850 

 1 .850 1 .850 

 2 .850 2 .850 

 3 .850 3 .850 

 4 .850 4 .850 

 5 .850 5 .850 

 6 .850 6 .850 

 7 .850 7 .850 

 8 .850 8 .850 

 9 .850 9 .850 

 10 .850 10 .850 

 11 .840 11 .870 

 12 .830 12 .890 

 13 .820 13 .910 

 14 .810 14 .930 

 15 .800 15 .950 

 16 .790 16 .950 

 17 .780 17 .950 

 18 .770 18 .950 

 19 .760 19 .950 

 20 or more .750 20 or more .950 

Section 3. TABLE OF SEX NEUTRAL ADJUSTMENT FACTORS: BENEFIT PAYMENTS 

INITIALLY EFFECTIVE ON OR AFTER MARCH 1, 2008 

The Table below shall be used to calculate the Joint and 50% Surviving Spouse Option 

form of payment if the effective date of payments is on or after March 1, 2008. 

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Spouse Age 

Retiree Age 28 29 30 31 32 33 34 35 36 37

28 0.9824 0.9829 0.9835 0.9840 0.9845 0.9851 0.9856 0.9861 0.9866 0.9871

29 0.9808 0.9814 0.9820 0.9826 0.9831 0.9837 0.9843 0.9848 0.9854 0.9859

30 0.9792 0.9798 0.9804 0.9810 0.9816 0.9822 0.9828 0.9834 0.9840 0.9846

31 0.9775 0.9782 0.9788 0.9795 0.9801 0.9808 0.9814 0.9821 0.9827 0.9833

32 0.9758 0.9765 0.9772 0.9778 0.9785 0.9792 0.9799 0.9806 0.9813 0.9819

33 0.9739 0.9746 0.9754 0.9761 0.9768 0.9775 0.9783 0.9790 0.9797 0.9804

34 0.9719 0.9727 0.9734 0.9742 0.9750 0.9757 0.9765 0.9773 0.9780 0.9788

35 0.9698 0.9706 0.9714 0.9722 0.9730 0.9738 0.9746 0.9754 0.9763 0.9771

36 0.9675 0.9684 0.9692 0.9700 0.9709 0.9717 0.9726 0.9735 0.9743 0.9752

37 0.9651 0.9660 0.9668 0.9677 0.9686 0.9695 0.9704 0.9713 0.9722 0.9731

38 0.9625 0.9634 0.9643 0.9652 0.9661 0.9671 0.9680 0.9690 0.9700 0.9709

39 0.9597 0.9606 0.9616 0.9625 0.9635 0.9645 0.9655 0.9665 0.9675 0.9685

40 0.9567 0.9577 0.9587 0.9596 0.9607 0.9617 0.9627 0.9638 0.9649 0.9659

41 0.9535 0.9545 0.9555 0.9565 0.9576 0.9587 0.9597 0.9609 0.9620 0.9631

42 0.9501 0.9511 0.9521 0.9532 0.9543 0.9554 0.9565 0.9577 0.9589 0.9600

43 0.9464 0.9474 0.9485 0.9496 0.9507 0.9519 0.9531 0.9543 0.9555 0.9567

44 0.9425 0.9435 0.9446 0.9458 0.9469 0.9481 0.9493 0.9506 0.9519 0.9531

45 0.9383 0.9393 0.9405 0.9416 0.9428 0.9441 0.9453 0.9466 0.9479 0.9493

46 0.9338 0.9349 0.9360 0.9372 0.9385 0.9397 0.9410 0.9424 0.9437 0.9451

47 0.9289 0.9301 0.9313 0.9325 0.9338 0.9351 0.9364 0.9378 0.9392 0.9406

48 0.9238 0.9250 0.9262 0.9274 0.9287 0.9301 0.9314 0.9329 0.9343 0.9358

49 0.9183 0.9195 0.9207 0.9220 0.9233 0.9247 0.9261 0.9276 0.9291 0.9306

50 0.9124 0.9136 0.9149 0.9162 0.9175 0.9189 0.9204 0.9219 0.9234 0.9250

51 0.9061 0.9073 0.9086 0.9099 0.9113 0.9127 0.9142 0.9158 0.9174 0.9190

52 0.8994 0.9007 0.9020 0.9033 0.9047 0.9062 0.9077 0.9093 0.9109 0.9126

53 0.8923 0.8936 0.8949 0.8963 0.8977 0.8992 0.9007 0.9024 0.9040 0.9057

54 0.8847 0.8860 0.8874 0.8888 0.8902 0.8917 0.8933 0.8950 0.8967 0.8984

55 0.8767 0.8780 0.8794 0.8808 0.8823 0.8838 0.8854 0.8871 0.8888 0.8906

56 0.8683 0.8696 0.8710 0.8724 0.8739 0.8755 0.8771 0.8788 0.8806 0.8824

57 0.8595 0.8608 0.8622 0.8636 0.8652 0.8667 0.8684 0.8701 0.8719 0.8738

58 0.8503 0.8516 0.8530 0.8545 0.8560 0.8576 0.8593 0.8610 0.8628 0.8647

59 0.8406 0.8420 0.8434 0.8448 0.8464 0.8480 0.8497 0.8515 0.8533 0.8552

60 0.8305 0.8318 0.8333 0.8348 0.8363 0.8379 0.8397 0.8414 0.8433 0.8453

61 0.8199 0.8213 0.8227 0.8242 0.8258 0.8274 0.8291 0.8310 0.8328 0.8348

62 0.8090 0.8103 0.8118 0.8133 0.8148 0.8165 0.8182 0.8200 0.8220 0.8240

63 0.7976 0.7989 0.8004 0.8019 0.8035 0.8051 0.8069 0.8087 0.8106 0.8126

64 0.7858 0.7872 0.7886 0.7902 0.7918 0.7934 0.7952 0.7970 0.7990 0.8010

65 0.7737 0.7750 0.7765 0.7780 0.7796 0.7813 0.7830 0.7849 0.7868 0.7889

66 0.7610 0.7624 0.7638 0.7654 0.7670 0.7686 0.7704 0.7723 0.7742 0.7763

67 0.7481 0.7495 0.7509 0.7524 0.7540 0.7557 0.7575 0.7594 0.7613 0.7634

68 0.7348 0.7361 0.7376 0.7391 0.7407 0.7424 0.7441 0.7460 0.7479 0.7500

69 0.7208 0.7222 0.7236 0.7251 0.7267 0.7284 0.7302 0.7320 0.7340 0.7361

70 0.7064 0.7077 0.7092 0.7107 0.7123 0.7139 0.7157 0.7176 0.7195 0.7216

71 0.6914 0.6928 0.6942 0.6957 0.6973 0.6990 0.7007 0.7026 0.7045 0.7066

72 0.6759 0.6772 0.6787 0.6801 0.6817 0.6834 0.6851 0.6870 0.6889 0.6910

73 0.6597 0.6611 0.6625 0.6639 0.6655 0.6672 0.6689 0.6707 0.6726 0.6747

74 0.6429 0.6442 0.6456 0.6471 0.6487 0.6503 0.6520 0.6538 0.6558 0.6578

75 0.6255 0.6269 0.6282 0.6297 0.6312 0.6328 0.6345 0.6364 0.6382 0.6403

76 0.6078 0.6091 0.6104 0.6119 0.6134 0.6150 0.6167 0.6184 0.6203 0.6223

77 0.5894 0.5907 0.5921 0.5935 0.5950 0.5966 0.5982 0.6000 0.6019 0.6038

78 0.5708 0.5721 0.5734 0.5748 0.5763 0.5778 0.5795 0.5812 0.5830 0.5850

79 0.5519 0.5531 0.5544 0.5558 0.5572 0.5588 0.5604 0.5621 0.5639 0.5658

80 0.5327 0.5339 0.5352 0.5365 0.5380 0.5395 0.5411 0.5427 0.5445 0.5464

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Spouse Age 

Retiree Age 38 39 40 41 42 43 44 45 46 47

28 0.9876 0.9881 0.9885 0.9890 0.9894 0.9898 0.9902 0.9906 0.9910 0.9914

29 0.9864 0.9869 0.9874 0.9879 0.9884 0.9889 0.9893 0.9897 0.9902 0.9906

30 0.9852 0.9857 0.9863 0.9868 0.9873 0.9878 0.9883 0.9888 0.9892 0.9897

31 0.9839 0.9845 0.9851 0.9857 0.9862 0.9868 0.9873 0.9878 0.9883 0.9888

32 0.9826 0.9832 0.9839 0.9845 0.9851 0.9857 0.9862 0.9868 0.9874 0.9879

33 0.9811 0.9818 0.9825 0.9832 0.9838 0.9845 0.9851 0.9857 0.9863 0.9869

34 0.9796 0.9803 0.9810 0.9818 0.9825 0.9832 0.9839 0.9845 0.9852 0.9858

35 0.9779 0.9787 0.9795 0.9802 0.9810 0.9818 0.9825 0.9832 0.9839 0.9846

36 0.9760 0.9769 0.9777 0.9786 0.9794 0.9802 0.9810 0.9818 0.9825 0.9833

37 0.9741 0.9750 0.9759 0.9768 0.9777 0.9785 0.9794 0.9802 0.9811 0.9819

38 0.9719 0.9729 0.9738 0.9748 0.9757 0.9767 0.9776 0.9785 0.9794 0.9803

39 0.9696 0.9706 0.9716 0.9726 0.9736 0.9747 0.9756 0.9766 0.9776 0.9785

40 0.9670 0.9681 0.9692 0.9703 0.9714 0.9724 0.9735 0.9745 0.9756 0.9766

41 0.9642 0.9654 0.9665 0.9677 0.9688 0.9700 0.9711 0.9723 0.9734 0.9745

42 0.9612 0.9624 0.9637 0.9649 0.9661 0.9673 0.9685 0.9697 0.9709 0.9721

43 0.9580 0.9592 0.9605 0.9618 0.9631 0.9644 0.9657 0.9670 0.9683 0.9695

44 0.9545 0.9558 0.9571 0.9585 0.9599 0.9612 0.9626 0.9640 0.9653 0.9667

45 0.9507 0.9520 0.9535 0.9549 0.9563 0.9578 0.9592 0.9607 0.9621 0.9636

46 0.9466 0.9480 0.9495 0.9510 0.9525 0.9540 0.9555 0.9571 0.9586 0.9601

47 0.9421 0.9436 0.9452 0.9467 0.9483 0.9499 0.9515 0.9531 0.9548 0.9564

48 0.9374 0.9389 0.9405 0.9421 0.9438 0.9455 0.9472 0.9489 0.9506 0.9523

49 0.9322 0.9338 0.9355 0.9372 0.9389 0.9407 0.9424 0.9442 0.9460 0.9479

50 0.9267 0.9283 0.9301 0.9318 0.9336 0.9354 0.9373 0.9392 0.9411 0.9430

51 0.9207 0.9224 0.9242 0.9260 0.9279 0.9298 0.9317 0.9337 0.9357 0.9377

52 0.9143 0.9161 0.9180 0.9198 0.9218 0.9237 0.9258 0.9278 0.9299 0.9320

53 0.9075 0.9094 0.9113 0.9132 0.9152 0.9172 0.9193 0.9215 0.9236 0.9258

54 0.9002 0.9021 0.9041 0.9061 0.9081 0.9103 0.9124 0.9146 0.9169 0.9192

55 0.8925 0.8944 0.8964 0.8985 0.9006 0.9028 0.9050 0.9073 0.9096 0.9120

56 0.8843 0.8863 0.8883 0.8904 0.8926 0.8948 0.8972 0.8995 0.9019 0.9044

57 0.8757 0.8778 0.8798 0.8820 0.8842 0.8865 0.8889 0.8914 0.8939 0.8964

58 0.8667 0.8688 0.8709 0.8731 0.8754 0.8778 0.8802 0.8827 0.8853 0.8879

59 0.8573 0.8593 0.8615 0.8638 0.8661 0.8685 0.8710 0.8736 0.8763 0.8790

60 0.8473 0.8494 0.8516 0.8539 0.8563 0.8588 0.8614 0.8640 0.8667 0.8695

61 0.8369 0.8390 0.8413 0.8436 0.8460 0.8486 0.8512 0.8539 0.8567 0.8596

62 0.8260 0.8282 0.8305 0.8329 0.8353 0.8379 0.8406 0.8433 0.8462 0.8491

63 0.8148 0.8170 0.8193 0.8217 0.8242 0.8268 0.8295 0.8323 0.8352 0.8382

64 0.8031 0.8053 0.8077 0.8101 0.8126 0.8153 0.8180 0.8209 0.8239 0.8269

65 0.7910 0.7932 0.7956 0.7980 0.8006 0.8033 0.8061 0.8090 0.8120 0.8151

66 0.7784 0.7807 0.7830 0.7855 0.7881 0.7908 0.7936 0.7966 0.7997 0.8029

67 0.7655 0.7678 0.7702 0.7727 0.7753 0.7780 0.7809 0.7839 0.7870 0.7902

68 0.7522 0.7544 0.7568 0.7593 0.7620 0.7647 0.7676 0.7706 0.7738 0.7770

69 0.7382 0.7405 0.7429 0.7454 0.7481 0.7508 0.7537 0.7568 0.7599 0.7633

70 0.7237 0.7260 0.7284 0.7309 0.7336 0.7364 0.7393 0.7424 0.7456 0.7489

71 0.7087 0.7110 0.7134 0.7159 0.7186 0.7214 0.7243 0.7274 0.7306 0.7340

72 0.6931 0.6954 0.6978 0.7003 0.7029 0.7057 0.7087 0.7117 0.7150 0.7184

73 0.6768 0.6791 0.6815 0.6840 0.6866 0.6894 0.6923 0.6954 0.6987 0.7021

74 0.6599 0.6622 0.6645 0.6670 0.6697 0.6724 0.6754 0.6784 0.6817 0.6851

75 0.6424 0.6446 0.6469 0.6494 0.6520 0.6548 0.6577 0.6608 0.6640 0.6674

76 0.6244 0.6266 0.6289 0.6314 0.6340 0.6367 0.6396 0.6427 0.6459 0.6493

77 0.6059 0.6081 0.6104 0.6128 0.6154 0.6181 0.6209 0.6240 0.6272 0.6305

78 0.5870 0.5892 0.5914 0.5938 0.5964 0.5991 0.6019 0.6049 0.6080 0.6114

79 0.5678 0.5699 0.5722 0.5745 0.5770 0.5797 0.5825 0.5854 0.5886 0.5919

80 0.5484 0.5504 0.5526 0.5550 0.5574 0.5600 0.5628 0.5657 0.5688 0.5721

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Spouse Age 

Retiree Age 48 49 50 51 52 53 54 55 56 57

28 0.9917 0.9921 0.9924 0.9927 0.9930 0.9933 0.9935 0.9938 0.9941 0.9943

29 0.9909 0.9913 0.9917 0.9920 0.9923 0.9926 0.9930 0.9932 0.9935 0.9938

30 0.9901 0.9905 0.9909 0.9912 0.9916 0.9920 0.9923 0.9926 0.9929 0.9932

31 0.9893 0.9897 0.9901 0.9906 0.9909 0.9913 0.9917 0.9920 0.9924 0.9927

32 0.9884 0.9889 0.9893 0.9898 0.9902 0.9907 0.9911 0.9914 0.9918 0.9922

33 0.9874 0.9880 0.9885 0.9890 0.9895 0.9899 0.9904 0.9908 0.9912 0.9916

34 0.9864 0.9870 0.9875 0.9881 0.9886 0.9891 0.9896 0.9901 0.9905 0.9909

35 0.9853 0.9859 0.9865 0.9871 0.9877 0.9883 0.9888 0.9893 0.9898 0.9903

36 0.9840 0.9847 0.9854 0.9860 0.9867 0.9873 0.9879 0.9884 0.9890 0.9895

37 0.9826 0.9834 0.9841 0.9849 0.9856 0.9862 0.9869 0.9875 0.9881 0.9887

38 0.9811 0.9820 0.9828 0.9836 0.9843 0.9851 0.9858 0.9864 0.9871 0.9877

39 0.9795 0.9804 0.9812 0.9821 0.9829 0.9837 0.9845 0.9853 0.9860 0.9867

40 0.9776 0.9786 0.9795 0.9805 0.9814 0.9823 0.9831 0.9839 0.9847 0.9855

41 0.9755 0.9766 0.9776 0.9787 0.9796 0.9806 0.9815 0.9824 0.9833 0.9841

42 0.9733 0.9744 0.9755 0.9766 0.9777 0.9787 0.9798 0.9807 0.9817 0.9826

43 0.9708 0.9720 0.9732 0.9744 0.9756 0.9767 0.9778 0.9789 0.9799 0.9809

44 0.9680 0.9693 0.9706 0.9719 0.9732 0.9744 0.9756 0.9768 0.9779 0.9790

45 0.9650 0.9664 0.9678 0.9692 0.9705 0.9719 0.9732 0.9744 0.9757 0.9769

46 0.9617 0.9632 0.9647 0.9662 0.9676 0.9691 0.9705 0.9718 0.9732 0.9745

47 0.9580 0.9596 0.9612 0.9628 0.9644 0.9660 0.9675 0.9690 0.9704 0.9718

48 0.9540 0.9558 0.9575 0.9592 0.9609 0.9625 0.9642 0.9658 0.9673 0.9689

49 0.9497 0.9515 0.9533 0.9551 0.9569 0.9587 0.9605 0.9622 0.9639 0.9656

50 0.9449 0.9468 0.9488 0.9507 0.9526 0.9545 0.9564 0.9583 0.9601 0.9619

51 0.9397 0.9418 0.9438 0.9458 0.9479 0.9499 0.9519 0.9539 0.9559 0.9578

52 0.9341 0.9363 0.9384 0.9406 0.9428 0.9449 0.9471 0.9492 0.9513 0.9534

53 0.9281 0.9303 0.9326 0.9349 0.9371 0.9394 0.9417 0.9440 0.9462 0.9485

54 0.9215 0.9239 0.9262 0.9286 0.9311 0.9335 0.9359 0.9383 0.9407 0.9431

55 0.9144 0.9169 0.9194 0.9219 0.9245 0.9270 0.9296 0.9321 0.9347 0.9372

56 0.9069 0.9095 0.9121 0.9148 0.9174 0.9201 0.9228 0.9255 0.9282 0.9309

57 0.8990 0.9017 0.9044 0.9072 0.9100 0.9128 0.9156 0.9185 0.9213 0.9242

58 0.8907 0.8934 0.8962 0.8991 0.9020 0.9050 0.9079 0.9109 0.9140 0.9170

59 0.8818 0.8847 0.8876 0.8906 0.8936 0.8967 0.8998 0.9029 0.9061 0.9093

60 0.8724 0.8754 0.8784 0.8815 0.8846 0.8878 0.8911 0.8944 0.8977 0.9010

61 0.8625 0.8656 0.8687 0.8719 0.8752 0.8785 0.8819 0.8853 0.8888 0.8922

62 0.8522 0.8553 0.8585 0.8618 0.8652 0.8687 0.8722 0.8757 0.8793 0.8830

63 0.8414 0.8446 0.8479 0.8513 0.8548 0.8583 0.8620 0.8657 0.8694 0.8732

64 0.8301 0.8334 0.8368 0.8403 0.8439 0.8476 0.8513 0.8552 0.8591 0.8630

65 0.8184 0.8218 0.8252 0.8288 0.8325 0.8363 0.8402 0.8441 0.8481 0.8522

66 0.8062 0.8096 0.8131 0.8168 0.8206 0.8245 0.8285 0.8325 0.8367 0.8409

67 0.7936 0.7971 0.8007 0.8044 0.8083 0.8123 0.8164 0.8206 0.8248 0.8292

68 0.7805 0.7840 0.7877 0.7915 0.7955 0.7995 0.8037 0.8080 0.8124 0.8170

69 0.7667 0.7703 0.7741 0.7780 0.7820 0.7861 0.7904 0.7948 0.7993 0.8040

70 0.7524 0.7560 0.7598 0.7638 0.7679 0.7721 0.7765 0.7810 0.7856 0.7904

71 0.7375 0.7412 0.7450 0.7490 0.7532 0.7575 0.7619 0.7665 0.7712 0.7761

72 0.7219 0.7256 0.7295 0.7335 0.7377 0.7421 0.7466 0.7513 0.7561 0.7611

73 0.7056 0.7094 0.7133 0.7173 0.7216 0.7260 0.7306 0.7353 0.7402 0.7453

74 0.6886 0.6924 0.6963 0.7004 0.7047 0.7091 0.7138 0.7186 0.7235 0.7287

75 0.6710 0.6747 0.6787 0.6828 0.6871 0.6916 0.6962 0.7011 0.7061 0.7113

76 0.6528 0.6566 0.6605 0.6646 0.6689 0.6734 0.6781 0.6830 0.6881 0.6934

77 0.6341 0.6378 0.6417 0.6459 0.6502 0.6547 0.6594 0.6643 0.6694 0.6747

78 0.6149 0.6186 0.6225 0.6266 0.6309 0.6354 0.6402 0.6451 0.6502 0.6555

79 0.5954 0.5990 0.6029 0.6070 0.6113 0.6158 0.6205 0.6254 0.6305 0.6359

80 0.5755 0.5792 0.5830 0.5870 0.5913 0.5958 0.6004 0.6053 0.6105 0.6158

36.1.97
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 - 92 -

Spouse Age 

Retiree Age 58 59 60 61 62 63 64 65 66 67

28 0.9945 0.9948 0.9950 0.9952 0.9954 0.9955 0.9957 0.9959 0.9961 0.9962

29 0.9940 0.9943 0.9945 0.9947 0.9949 0.9951 0.9953 0.9955 0.9957 0.9959

30 0.9935 0.9937 0.9940 0.9942 0.9945 0.9947 0.9949 0.9951 0.9953 0.9955

31 0.9930 0.9933 0.9936 0.9938 0.9941 0.9943 0.9945 0.9948 0.9950 0.9952

32 0.9925 0.9928 0.9931 0.9934 0.9937 0.9939 0.9942 0.9944 0.9947 0.9949

33 0.9919 0.9923 0.9926 0.9929 0.9933 0.9935 0.9938 0.9941 0.9943 0.9946

34 0.9914 0.9917 0.9921 0.9925 0.9928 0.9931 0.9934 0.9937 0.9940 0.9942

35 0.9907 0.9911 0.9915 0.9919 0.9923 0.9926 0.9930 0.9933 0.9936 0.9939

36 0.9900 0.9905 0.9909 0.9913 0.9918 0.9921 0.9925 0.9929 0.9932 0.9935

37 0.9892 0.9897 0.9902 0.9907 0.9911 0.9916 0.9920 0.9924 0.9927 0.9931

38 0.9883 0.9889 0.9895 0.9900 0.9905 0.9909 0.9914 0.9918 0.9922 0.9926

39 0.9873 0.9880 0.9886 0.9892 0.9897 0.9902 0.9907 0.9912 0.9916 0.9921

40 0.9862 0.9869 0.9876 0.9882 0.9888 0.9894 0.9900 0.9905 0.9910 0.9915

41 0.9849 0.9857 0.9864 0.9872 0.9878 0.9885 0.9891 0.9897 0.9902 0.9907

42 0.9835 0.9843 0.9852 0.9859 0.9867 0.9874 0.9881 0.9887 0.9893 0.9899

43 0.9819 0.9828 0.9837 0.9846 0.9854 0.9862 0.9869 0.9877 0.9883 0.9890

44 0.9801 0.9811 0.9821 0.9830 0.9839 0.9848 0.9856 0.9864 0.9872 0.9879

45 0.9780 0.9792 0.9802 0.9813 0.9823 0.9833 0.9842 0.9851 0.9859 0.9867

46 0.9758 0.9770 0.9782 0.9793 0.9804 0.9815 0.9825 0.9835 0.9844 0.9853

47 0.9732 0.9746 0.9759 0.9771 0.9783 0.9795 0.9806 0.9817 0.9827 0.9837

48 0.9704 0.9718 0.9733 0.9746 0.9760 0.9772 0.9785 0.9797 0.9808 0.9819

49 0.9672 0.9688 0.9703 0.9718 0.9733 0.9747 0.9760 0.9774 0.9786 0.9798

50 0.9637 0.9654 0.9671 0.9687 0.9703 0.9718 0.9733 0.9747 0.9761 0.9774

51 0.9597 0.9616 0.9634 0.9652 0.9669 0.9686 0.9702 0.9718 0.9733 0.9748

52 0.9554 0.9574 0.9594 0.9613 0.9632 0.9650 0.9668 0.9685 0.9702 0.9718

53 0.9507 0.9528 0.9550 0.9570 0.9591 0.9610 0.9630 0.9648 0.9666 0.9684

54 0.9454 0.9478 0.9501 0.9523 0.9545 0.9566 0.9587 0.9608 0.9627 0.9646

55 0.9397 0.9422 0.9447 0.9471 0.9494 0.9518 0.9540 0.9562 0.9584 0.9605

56 0.9336 0.9362 0.9388 0.9414 0.9440 0.9465 0.9489 0.9513 0.9536 0.9559

57 0.9270 0.9298 0.9326 0.9354 0.9381 0.9408 0.9434 0.9460 0.9485 0.9510

58 0.9200 0.9230 0.9259 0.9289 0.9318 0.9347 0.9375 0.9403 0.9430 0.9457

59 0.9124 0.9156 0.9188 0.9219 0.9250 0.9281 0.9311 0.9341 0.9370 0.9399

60 0.9044 0.9077 0.9111 0.9144 0.9177 0.9210 0.9242 0.9274 0.9305 0.9336

61 0.8958 0.8993 0.9028 0.9063 0.9098 0.9133 0.9168 0.9202 0.9235 0.9268

62 0.8867 0.8904 0.8941 0.8978 0.9015 0.9052 0.9088 0.9125 0.9160 0.9196

63 0.8771 0.8809 0.8848 0.8887 0.8926 0.8965 0.9004 0.9043 0.9081 0.9119

64 0.8670 0.8711 0.8751 0.8792 0.8833 0.8874 0.8915 0.8956 0.8997 0.9037

65 0.8564 0.8606 0.8649 0.8692 0.8735 0.8778 0.8821 0.8864 0.8907 0.8950

66 0.8453 0.8496 0.8541 0.8585 0.8630 0.8676 0.8721 0.8766 0.8812 0.8857

67 0.8337 0.8382 0.8428 0.8475 0.8522 0.8569 0.8617 0.8664 0.8712 0.8760

68 0.8216 0.8263 0.8310 0.8358 0.8407 0.8457 0.8506 0.8556 0.8606 0.8657

69 0.8087 0.8136 0.8185 0.8235 0.8286 0.8337 0.8389 0.8441 0.8493 0.8546

70 0.7952 0.8002 0.8053 0.8105 0.8157 0.8210 0.8264 0.8318 0.8373 0.8428

71 0.7811 0.7862 0.7914 0.7967 0.8022 0.8077 0.8132 0.8189 0.8246 0.8303

72 0.7662 0.7714 0.7768 0.7822 0.7878 0.7935 0.7992 0.8051 0.8110 0.8170

73 0.7505 0.7558 0.7613 0.7669 0.7726 0.7784 0.7844 0.7904 0.7965 0.8028

74 0.7340 0.7394 0.7450 0.7507 0.7566 0.7626 0.7687 0.7749 0.7812 0.7876

75 0.7167 0.7222 0.7279 0.7337 0.7397 0.7458 0.7521 0.7584 0.7650 0.7716

76 0.6988 0.7044 0.7102 0.7161 0.7222 0.7284 0.7348 0.7413 0.7480 0.7548

77 0.6802 0.6859 0.6917 0.6977 0.7039 0.7102 0.7167 0.7234 0.7302 0.7372

78 0.6610 0.6668 0.6727 0.6787 0.6850 0.6914 0.6980 0.7048 0.7117 0.7189

79 0.6414 0.6472 0.6531 0.6592 0.6655 0.6720 0.6787 0.6856 0.6926 0.6999

80 0.6214 0.6271 0.6331 0.6392 0.6456 0.6521 0.6589 0.6658 0.6730 0.6803

36.1.98
TM:538126 / 01096280 / 01/01/2015 Appendix A-1 (Page 7 of 9)

 - 93 -

Spouse Age 

Retiree Age 68 69 70 71 72 73 74 75 76 77

28 0.9964 0.9965 0.9967 0.9968 0.9970 0.9971 0.9973 0.9974 0.9975 0.9976

29 0.9960 0.9962 0.9964 0.9965 0.9967 0.9968 0.9970 0.9971 0.9972 0.9974

30 0.9957 0.9958 0.9960 0.9962 0.9963 0.9965 0.9966 0.9968 0.9969 0.9971

31 0.9954 0.9956 0.9958 0.9959 0.9961 0.9963 0.9964 0.9966 0.9967 0.9969

32 0.9951 0.9953 0.9955 0.9957 0.9959 0.9960 0.9962 0.9964 0.9965 0.9967

33 0.9948 0.9950 0.9952 0.9954 0.9956 0.9958 0.9960 0.9962 0.9963 0.9965

34 0.9945 0.9947 0.9950 0.9952 0.9954 0.9956 0.9958 0.9960 0.9962 0.9963

35 0.9942 0.9944 0.9947 0.9949 0.9951 0.9953 0.9956 0.9958 0.9960 0.9961

36 0.9938 0.9941 0.9944 0.9946 0.9949 0.9951 0.9953 0.9955 0.9958 0.9960

37 0.9934 0.9937 0.9940 0.9943 0.9946 0.9948 0.9951 0.9953 0.9955 0.9958

38 0.9930 0.9933 0.9936 0.9940 0.9943 0.9945 0.9948 0.9951 0.9953 0.9955

39 0.9925 0.9929 0.9932 0.9936 0.9939 0.9942 0.9945 0.9948 0.9950 0.9953

40 0.9919 0.9923 0.9927 0.9931 0.9935 0.9938 0.9941 0.9944 0.9947 0.9950

41 0.9912 0.9917 0.9922 0.9926 0.9930 0.9934 0.9937 0.9941 0.9944 0.9947

42 0.9905 0.9910 0.9915 0.9920 0.9924 0.9929 0.9933 0.9936 0.9940 0.9943

43 0.9896 0.9902 0.9908 0.9913 0.9918 0.9923 0.9927 0.9931 0.9935 0.9939

44 0.9886 0.9893 0.9899 0.9905 0.9910 0.9916 0.9921 0.9925 0.9930 0.9934

45 0.9875 0.9882 0.9889 0.9895 0.9902 0.9908 0.9913 0.9918 0.9923 0.9928

46 0.9862 0.9870 0.9877 0.9885 0.9892 0.9898 0.9905 0.9910 0.9916 0.9921

47 0.9847 0.9856 0.9864 0.9872 0.9880 0.9888 0.9894 0.9901 0.9907 0.9913

48 0.9829 0.9839 0.9849 0.9858 0.9867 0.9875 0.9883 0.9890 0.9897 0.9904

49 0.9810 0.9821 0.9831 0.9842 0.9851 0.9860 0.9869 0.9877 0.9885 0.9893

50 0.9787 0.9800 0.9811 0.9823 0.9833 0.9844 0.9853 0.9863 0.9871 0.9880

51 0.9762 0.9775 0.9788 0.9801 0.9813 0.9824 0.9835 0.9845 0.9855 0.9864

52 0.9733 0.9748 0.9762 0.9776 0.9789 0.9802 0.9814 0.9826 0.9837 0.9847

53 0.9701 0.9717 0.9733 0.9748 0.9763 0.9777 0.9790 0.9803 0.9815 0.9827

54 0.9665 0.9683 0.9700 0.9717 0.9733 0.9749 0.9763 0.9778 0.9791 0.9804

55 0.9625 0.9645 0.9664 0.9682 0.9700 0.9717 0.9733 0.9749 0.9764 0.9778

56 0.9581 0.9602 0.9623 0.9643 0.9663 0.9681 0.9699 0.9717 0.9733 0.9749

57 0.9534 0.9557 0.9580 0.9602 0.9623 0.9643 0.9663 0.9682 0.9701 0.9718

58 0.9482 0.9508 0.9532 0.9556 0.9579 0.9602 0.9624 0.9644 0.9665 0.9684

59 0.9427 0.9454 0.9481 0.9507 0.9532 0.9556 0.9580 0.9603 0.9625 0.9646

60 0.9366 0.9396 0.9425 0.9453 0.9480 0.9507 0.9533 0.9558 0.9582 0.9605

61 0.9301 0.9333 0.9364 0.9394 0.9424 0.9453 0.9481 0.9508 0.9535 0.9560

62 0.9231 0.9265 0.9299 0.9332 0.9364 0.9395 0.9425 0.9455 0.9484 0.9511

63 0.9156 0.9193 0.9229 0.9264 0.9299 0.9333 0.9366 0.9398 0.9429 0.9459

64 0.9077 0.9116 0.9155 0.9193 0.9230 0.9267 0.9302 0.9337 0.9371 0.9404

65 0.8992 0.9034 0.9075 0.9116 0.9156 0.9195 0.9234 0.9271 0.9308 0.9344

66 0.8902 0.8946 0.8991 0.9034 0.9077 0.9119 0.9161 0.9201 0.9241 0.9279

67 0.8807 0.8855 0.8901 0.8948 0.8994 0.9039 0.9083 0.9127 0.9170 0.9211

68 0.8707 0.8757 0.8807 0.8856 0.8905 0.8953 0.9001 0.9048 0.9093 0.9138

69 0.8599 0.8652 0.8704 0.8757 0.8809 0.8860 0.8911 0.8961 0.9011 0.9059

70 0.8484 0.8539 0.8595 0.8650 0.8705 0.8760 0.8814 0.8868 0.8921 0.8973

71 0.8361 0.8420 0.8478 0.8536 0.8595 0.8653 0.8711 0.8768 0.8824 0.8880

72 0.8230 0.8291 0.8353 0.8414 0.8476 0.8537 0.8598 0.8659 0.8719 0.8779

73 0.8091 0.8154 0.8218 0.8282 0.8347 0.8412 0.8477 0.8541 0.8605 0.8668

74 0.7941 0.8007 0.8074 0.8141 0.8209 0.8277 0.8345 0.8413 0.8481 0.8549

75 0.7783 0.7852 0.7921 0.7991 0.8062 0.8133 0.8204 0.8276 0.8348 0.8419

76 0.7617 0.7688 0.7760 0.7832 0.7906 0.7980 0.8055 0.8131 0.8206 0.8281

77 0.7443 0.7516 0.7589 0.7665 0.7741 0.7818 0.7896 0.7975 0.8054 0.8133

78 0.7261 0.7336 0.7412 0.7489 0.7568 0.7648 0.7729 0.7811 0.7894 0.7977

79 0.7073 0.7149 0.7227 0.7306 0.7387 0.7470 0.7554 0.7639 0.7725 0.7812

80 0.6879 0.6956 0.7035 0.7117 0.7200 0.7285 0.7371 0.7459 0.7549 0.7639

36.1.99
TM:538126 / 01096280 / 01/01/2015 Appendix A-1 (Page 8 of 9)

 - 94 -

Spouse Age 

Retiree Age 78 79 80 81 82 83 84 85 86 87

28 0.9978 0.9979 0.9980 0.9981 0.9982 0.9983 0.9984 0.9985 0.9986 0.9987

29 0.9975 0.9976 0.9978 0.9979 0.9980 0.9981 0.9982 0.9983 0.9984 0.9985

30 0.9972 0.9974 0.9975 0.9976 0.9977 0.9978 0.9979 0.9981 0.9981 0.9982

31 0.9970 0.9972 0.9973 0.9974 0.9976 0.9977 0.9978 0.9979 0.9980 0.9981

32 0.9969 0.9970 0.9971 0.9973 0.9974 0.9975 0.9977 0.9978 0.9979 0.9980

33 0.9967 0.9968 0.9970 0.9971 0.9973 0.9974 0.9975 0.9976 0.9978 0.9979

34 0.9965 0.9967 0.9968 0.9970 0.9971 0.9973 0.9974 0.9975 0.9976 0.9978

35 0.9963 0.9965 0.9967 0.9968 0.9970 0.9971 0.9973 0.9974 0.9975 0.9976

36 0.9961 0.9963 0.9965 0.9967 0.9968 0.9970 0.9971 0.9973 0.9974 0.9975

37 0.9960 0.9962 0.9963 0.9965 0.9967 0.9969 0.9970 0.9972 0.9973 0.9974

38 0.9958 0.9960 0.9962 0.9964 0.9966 0.9967 0.9969 0.9970 0.9972 0.9973

39 0.9955 0.9958 0.9960 0.9962 0.9964 0.9966 0.9968 0.9969 0.9971 0.9972

40 0.9953 0.9955 0.9958 0.9960 0.9962 0.9964 0.9966 0.9968 0.9969 0.9971

41 0.9950 0.9953 0.9955 0.9958 0.9960 0.9962 0.9964 0.9966 0.9968 0.9969

42 0.9946 0.9949 0.9952 0.9955 0.9957 0.9960 0.9962 0.9964 0.9966 0.9968

43 0.9942 0.9946 0.9949 0.9952 0.9954 0.9957 0.9959 0.9962 0.9964 0.9966

44 0.9938 0.9941 0.9945 0.9948 0.9951 0.9954 0.9957 0.9959 0.9961 0.9963

45 0.9932 0.9936 0.9940 0.9944 0.9947 0.9950 0.9953 0.9956 0.9959 0.9961

46 0.9926 0.9931 0.9935 0.9939 0.9943 0.9946 0.9950 0.9953 0.9955 0.9958

47 0.9919 0.9924 0.9929 0.9933 0.9937 0.9941 0.9945 0.9948 0.9951 0.9954

48 0.9910 0.9916 0.9921 0.9926 0.9931 0.9936 0.9940 0.9943 0.9947 0.9950

49 0.9900 0.9906 0.9912 0.9918 0.9923 0.9928 0.9933 0.9937 0.9941 0.9945

50 0.9887 0.9895 0.9902 0.9908 0.9914 0.9920 0.9925 0.9930 0.9934 0.9938

51 0.9873 0.9881 0.9889 0.9897 0.9903 0.9910 0.9916 0.9921 0.9926 0.9931

52 0.9857 0.9866 0.9875 0.9883 0.9891 0.9898 0.9905 0.9911 0.9917 0.9922

53 0.9838 0.9849 0.9858 0.9868 0.9876 0.9884 0.9892 0.9899 0.9905 0.9911

54 0.9817 0.9828 0.9839 0.9850 0.9859 0.9868 0.9877 0.9885 0.9892 0.9899

55 0.9792 0.9805 0.9817 0.9829 0.9840 0.9850 0.9859 0.9868 0.9876 0.9884

56 0.9764 0.9779 0.9793 0.9806 0.9818 0.9829 0.9840 0.9850 0.9859 0.9867

57 0.9735 0.9751 0.9766 0.9781 0.9794 0.9807 0.9819 0.9830 0.9840 0.9850

58 0.9702 0.9720 0.9737 0.9753 0.9768 0.9782 0.9795 0.9808 0.9819 0.9830

59 0.9667 0.9686 0.9705 0.9722 0.9739 0.9755 0.9770 0.9783 0.9796 0.9808

60 0.9627 0.9649 0.9669 0.9689 0.9707 0.9725 0.9741 0.9756 0.9770 0.9783

61 0.9584 0.9608 0.9630 0.9652 0.9672 0.9691 0.9709 0.9726 0.9742 0.9756

62 0.9538 0.9564 0.9588 0.9612 0.9634 0.9655 0.9675 0.9693 0.9711 0.9727

63 0.9488 0.9516 0.9543 0.9569 0.9593 0.9616 0.9638 0.9658 0.9677 0.9695

64 0.9435 0.9466 0.9495 0.9523 0.9550 0.9575 0.9599 0.9621 0.9642 0.9661

65 0.9378 0.9411 0.9443 0.9473 0.9503 0.9530 0.9556 0.9581 0.9603 0.9625

66 0.9316 0.9352 0.9387 0.9420 0.9452 0.9482 0.9510 0.9537 0.9562 0.9585

67 0.9251 0.9290 0.9328 0.9364 0.9399 0.9431 0.9462 0.9492 0.9519 0.9544

68 0.9182 0.9224 0.9265 0.9304 0.9341 0.9377 0.9411 0.9443 0.9472 0.9500

69 0.9106 0.9151 0.9195 0.9238 0.9279 0.9317 0.9354 0.9389 0.9421 0.9451

70 0.9023 0.9072 0.9120 0.9166 0.9210 0.9252 0.9292 0.9330 0.9365 0.9398

71 0.8934 0.8987 0.9039 0.9088 0.9136 0.9182 0.9225 0.9266 0.9305 0.9341

72 0.8837 0.8894 0.8949 0.9003 0.9055 0.9104 0.9151 0.9196 0.9238 0.9277

73 0.8731 0.8792 0.8851 0.8909 0.8965 0.9019 0.9070 0.9118 0.9163 0.9206

74 0.8615 0.8680 0.8744 0.8806 0.8866 0.8924 0.8979 0.9032 0.9081 0.9127

75 0.8490 0.8559 0.8627 0.8694 0.8759 0.8821 0.8880 0.8937 0.8990 0.9041

76 0.8356 0.8430 0.8503 0.8574 0.8643 0.8710 0.8774 0.8835 0.8893 0.8947

77 0.8212 0.8290 0.8368 0.8443 0.8517 0.8589 0.8658 0.8723 0.8785 0.8844

78 0.8060 0.8142 0.8224 0.8305 0.8383 0.8460 0.8533 0.8603 0.8670 0.8733

79 0.7899 0.7986 0.8072 0.8157 0.8240 0.8322 0.8400 0.8475 0.8547 0.8614

80 0.7730 0.7821 0.7911 0.8001 0.8089 0.8175 0.8258 0.8338 0.8415 0.8487

36.1.100
TM:538126 / 01096280 / 01/01/2015 Appendix A-1 (Page 9 of 9)

 - 95 -

Spouse Age 

Retiree Age 88 89 90 91 92 93 94 95

28 0.9987 0.9988 0.9989 0.9989 0.9990 0.9990 0.9991 0.9991

29 0.9986 0.9986 0.9987 0.9988 0.9988 0.9989 0.9989 0.9990

30 0.9983 0.9984 0.9985 0.9985 0.9986 0.9987 0.9987 0.9988

31 0.9982 0.9983 0.9984 0.9984 0.9985 0.9986 0.9986 0.9987

32 0.9981 0.9982 0.9983 0.9983 0.9984 0.9985 0.9985 0.9986

33 0.9980 0.9981 0.9981 0.9982 0.9983 0.9984 0.9984 0.9985

34 0.9979 0.9980 0.9980 0.9981 0.9982 0.9983 0.9983 0.9984

35 0.9977 0.9979 0.9979 0.9980 0.9981 0.9982 0.9983 0.9983

36 0.9976 0.9978 0.9979 0.9979 0.9980 0.9981 0.9982 0.9983

37 0.9976 0.9977 0.9978 0.9979 0.9979 0.9980 0.9981 0.9982

38 0.9975 0.9976 0.9977 0.9978 0.9979 0.9980 0.9980 0.9981

39 0.9973 0.9975 0.9976 0.9977 0.9978 0.9979 0.9980 0.9980

40 0.9972 0.9974 0.9975 0.9976 0.9977 0.9978 0.9979 0.9980

41 0.9971 0.9972 0.9974 0.9975 0.9976 0.9977 0.9978 0.9979

42 0.9969 0.9971 0.9972 0.9973 0.9975 0.9976 0.9977 0.9978

43 0.9967 0.9969 0.9971 0.9972 0.9973 0.9974 0.9975 0.9976

44 0.9965 0.9967 0.9969 0.9970 0.9972 0.9973 0.9974 0.9975

45 0.9963 0.9965 0.9967 0.9968 0.9970 0.9971 0.9972 0.9973

46 0.9960 0.9962 0.9964 0.9966 0.9968 0.9969 0.9970 0.9972

47 0.9957 0.9959 0.9961 0.9963 0.9965 0.9967 0.9968 0.9970

48 0.9953 0.9956 0.9958 0.9960 0.9962 0.9964 0.9966 0.9967

49 0.9948 0.9951 0.9954 0.9956 0.9958 0.9961 0.9962 0.9964

50 0.9942 0.9945 0.9949 0.9951 0.9954 0.9956 0.9958 0.9960

51 0.9935 0.9939 0.9942 0.9945 0.9948 0.9951 0.9953 0.9955

52 0.9927 0.9931 0.9935 0.9938 0.9942 0.9945 0.9947 0.9950

53 0.9917 0.9921 0.9926 0.9930 0.9934 0.9937 0.9940 0.9943

54 0.9905 0.9910 0.9915 0.9920 0.9924 0.9928 0.9932 0.9935

55 0.9891 0.9897 0.9903 0.9908 0.9913 0.9917 0.9921 0.9925

56 0.9875 0.9882 0.9889 0.9895 0.9900 0.9905 0.9910 0.9914

57 0.9858 0.9866 0.9874 0.9880 0.9886 0.9892 0.9897 0.9902

58 0.9839 0.9848 0.9857 0.9864 0.9871 0.9877 0.9883 0.9889

59 0.9819 0.9829 0.9838 0.9846 0.9854 0.9861 0.9868 0.9874

60 0.9795 0.9806 0.9817 0.9826 0.9835 0.9843 0.9850 0.9857

61 0.9770 0.9782 0.9793 0.9804 0.9813 0.9822 0.9830 0.9838

62 0.9742 0.9755 0.9768 0.9779 0.9790 0.9800 0.9809 0.9817

63 0.9711 0.9726 0.9740 0.9753 0.9765 0.9775 0.9785 0.9795

64 0.9679 0.9696 0.9711 0.9725 0.9738 0.9750 0.9761 0.9771

65 0.9644 0.9662 0.9679 0.9695 0.9709 0.9722 0.9734 0.9746

66 0.9607 0.9627 0.9645 0.9662 0.9677 0.9692 0.9705 0.9718

67 0.9568 0.9589 0.9609 0.9628 0.9645 0.9661 0.9675 0.9689

68 0.9526 0.9550 0.9571 0.9592 0.9610 0.9628 0.9644 0.9659

69 0.9480 0.9505 0.9529 0.9552 0.9572 0.9591 0.9608 0.9625

70 0.9429 0.9457 0.9483 0.9508 0.9530 0.9551 0.9570 0.9588

71 0.9374 0.9405 0.9434 0.9460 0.9484 0.9507 0.9528 0.9548

72 0.9313 0.9347 0.9378 0.9407 0.9434 0.9458 0.9481 0.9503

73 0.9246 0.9282 0.9316 0.9348 0.9377 0.9404 0.9429 0.9453

74 0.9170 0.9210 0.9248 0.9282 0.9314 0.9343 0.9371 0.9396

75 0.9087 0.9131 0.9171 0.9209 0.9243 0.9275 0.9305 0.9333

76 0.8997 0.9045 0.9088 0.9129 0.9167 0.9202 0.9234 0.9265

77 0.8899 0.8950 0.8997 0.9041 0.9082 0.9120 0.9156 0.9189

78 0.8792 0.8847 0.8899 0.8946 0.8991 0.9032 0.9070 0.9106

79 0.8678 0.8737 0.8792 0.8844 0.8891 0.8936 0.8977 0.9017

80 0.8555 0.8618 0.8678 0.8733 0.8785 0.8833 0.8877 0.8920

36.1.101
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APPENDIX A-2. ADJUSTMENT FACTORS FOR THE JOINT AND 75% SURVIVING SPOUSE 

OPTION 

Section 1. The table below shall be used to calculate the Joint and 75% Surviving Spouse 

Option form of payment if applicable. 

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Spouse Age 

Retiree Age 28 29 30 31 32 33 34 35 36 37

28 0.9738 0.9746 0.9754 0.9762 0.9770 0.9778 0.9785 0.9793 0.9801 0.9808

29 0.9715 0.9724 0.9732 0.9741 0.9749 0.9758 0.9766 0.9774 0.9782 0.9790

30 0.9691 0.9700 0.9709 0.9718 0.9727 0.9736 0.9745 0.9754 0.9762 0.9771

31 0.9667 0.9676 0.9686 0.9695 0.9705 0.9714 0.9724 0.9733 0.9743 0.9752

32 0.9641 0.9651 0.9661 0.9671 0.9681 0.9691 0.9701 0.9711 0.9721 0.9731

33 0.9614 0.9624 0.9635 0.9645 0.9656 0.9667 0.9677 0.9688 0.9699 0.9709

34 0.9585 0.9596 0.9607 0.9618 0.9629 0.9640 0.9652 0.9663 0.9674 0.9685

35 0.9554 0.9565 0.9577 0.9589 0.9600 0.9612 0.9624 0.9636 0.9648 0.9660

36 0.9521 0.9533 0.9545 0.9557 0.9569 0.9582 0.9594 0.9607 0.9620 0.9632

37 0.9486 0.9498 0.9511 0.9523 0.9536 0.9549 0.9562 0.9576 0.9589 0.9602

38 0.9448 0.9461 0.9474 0.9487 0.9501 0.9514 0.9528 0.9542 0.9556 0.9570

39 0.9408 0.9421 0.9435 0.9448 0.9462 0.9477 0.9491 0.9506 0.9520 0.9535

40 0.9365 0.9378 0.9392 0.9407 0.9421 0.9436 0.9451 0.9466 0.9482 0.9497

41 0.9319 0.9333 0.9347 0.9362 0.9377 0.9392 0.9408 0.9424 0.9440 0.9457

42 0.9270 0.9284 0.9299 0.9314 0.9330 0.9346 0.9362 0.9378 0.9395 0.9412

43 0.9217 0.9232 0.9247 0.9263 0.9279 0.9295 0.9312 0.9329 0.9347 0.9365

44 0.9161 0.9176 0.9192 0.9208 0.9224 0.9241 0.9259 0.9277 0.9295 0.9313

45 0.9102 0.9117 0.9133 0.9149 0.9166 0.9184 0.9202 0.9220 0.9239 0.9258

46 0.9038 0.9054 0.9070 0.9087 0.9104 0.9122 0.9141 0.9160 0.9179 0.9199

47 0.8971 0.8987 0.9003 0.9020 0.9038 0.9057 0.9075 0.9095 0.9115 0.9135

48 0.8899 0.8915 0.8932 0.8949 0.8968 0.8986 0.9006 0.9026 0.9046 0.9067

49 0.8822 0.8839 0.8856 0.8874 0.8892 0.8911 0.8931 0.8951 0.8973 0.8994

50 0.8741 0.8758 0.8775 0.8793 0.8812 0.8831 0.8851 0.8872 0.8894 0.8916

51 0.8654 0.8671 0.8689 0.8707 0.8726 0.8746 0.8766 0.8788 0.8810 0.8832

52 0.8563 0.8580 0.8598 0.8617 0.8636 0.8656 0.8677 0.8698 0.8721 0.8744

53 0.8467 0.8484 0.8502 0.8521 0.8540 0.8560 0.8582 0.8603 0.8626 0.8650

54 0.8365 0.8382 0.8400 0.8419 0.8439 0.8459 0.8481 0.8503 0.8526 0.8550

55 0.8258 0.8275 0.8293 0.8312 0.8332 0.8353 0.8374 0.8397 0.8420 0.8444

56 0.8146 0.8164 0.8182 0.8201 0.8221 0.8241 0.8263 0.8286 0.8309 0.8334

57 0.8031 0.8048 0.8066 0.8085 0.8105 0.8126 0.8148 0.8171 0.8194 0.8219

58 0.7910 0.7928 0.7946 0.7965 0.7985 0.8006 0.8028 0.8051 0.8075 0.8100

59 0.7786 0.7803 0.7821 0.7840 0.7860 0.7881 0.7903 0.7926 0.7950 0.7975

60 0.7656 0.7673 0.7691 0.7710 0.7730 0.7751 0.7773 0.7796 0.7820 0.7846

61 0.7522 0.7539 0.7557 0.7576 0.7596 0.7617 0.7639 0.7662 0.7686 0.7711

62 0.7384 0.7401 0.7419 0.7438 0.7458 0.7479 0.7501 0.7524 0.7548 0.7573

63 0.7243 0.7260 0.7277 0.7296 0.7316 0.7336 0.7358 0.7381 0.7405 0.7430

64 0.7098 0.7115 0.7133 0.7151 0.7171 0.7191 0.7213 0.7236 0.7260 0.7285

65 0.6950 0.6967 0.6984 0.7002 0.7022 0.7042 0.7064 0.7086 0.7110 0.7135

66 0.6798 0.6815 0.6832 0.6850 0.6869 0.6889 0.6911 0.6933 0.6957 0.6982

67 0.6644 0.6661 0.6678 0.6696 0.6715 0.6735 0.6756 0.6778 0.6801 0.6826

68 0.6487 0.6503 0.6520 0.6538 0.6557 0.6576 0.6597 0.6619 0.6642 0.6667

69 0.6325 0.6341 0.6358 0.6375 0.6394 0.6413 0.6434 0.6456 0.6478 0.6502

70 0.6160 0.6175 0.6191 0.6209 0.6227 0.6246 0.6266 0.6288 0.6310 0.6334

71 0.5990 0.6006 0.6022 0.6039 0.6056 0.6075 0.6095 0.6116 0.6138 0.6162

72 0.5816 0.5831 0.5847 0.5864 0.5881 0.5900 0.5919 0.5940 0.5962 0.5985

73 0.5638 0.5653 0.5668 0.5684 0.5701 0.5720 0.5739 0.5759 0.5780 0.5803

74 0.5455 0.5470 0.5485 0.5501 0.5517 0.5535 0.5554 0.5574 0.5595 0.5617

75 0.5269 0.5283 0.5298 0.5313 0.5330 0.5347 0.5365 0.5384 0.5405 0.5426

76 0.5081 0.5095 0.5109 0.5124 0.5140 0.5157 0.5175 0.5194 0.5214 0.5235

77 0.4891 0.4904 0.4918 0.4932 0.4948 0.4964 0.4982 0.5000 0.5019 0.5040

78 0.4700 0.4712 0.4726 0.4740 0.4755 0.4771 0.4788 0.4806 0.4824 0.4844

79 0.4509 0.4521 0.4534 0.4548 0.4562 0.4578 0.4594 0.4611 0.4630 0.4649

80 0.4318 0.4330 0.4343 0.4356 0.4370 0.4385 0.4401 0.4417 0.4435 0.4454

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Spouse Age 

Retiree Age 38 39 40 41 42 43 44 45 46 47

28 0.9815 0.9822 0.9829 0.9835 0.9842 0.9848 0.9854 0.9860 0.9866 0.9871

29 0.9798 0.9805 0.9813 0.9820 0.9827 0.9834 0.9840 0.9847 0.9853 0.9859

30 0.9779 0.9787 0.9795 0.9803 0.9811 0.9818 0.9825 0.9832 0.9839 0.9846

31 0.9761 0.9770 0.9778 0.9787 0.9795 0.9803 0.9811 0.9818 0.9826 0.9833

32 0.9741 0.9750 0.9760 0.9769 0.9778 0.9787 0.9795 0.9803 0.9811 0.9819

33 0.9720 0.9730 0.9740 0.9750 0.9759 0.9769 0.9778 0.9787 0.9796 0.9804

34 0.9697 0.9707 0.9718 0.9729 0.9739 0.9750 0.9760 0.9769 0.9779 0.9788

35 0.9672 0.9683 0.9695 0.9706 0.9718 0.9729 0.9740 0.9750 0.9761 0.9771

36 0.9645 0.9657 0.9670 0.9682 0.9694 0.9706 0.9718 0.9729 0.9740 0.9751

37 0.9616 0.9629 0.9642 0.9656 0.9668 0.9681 0.9694 0.9706 0.9718 0.9730

38 0.9584 0.9599 0.9613 0.9627 0.9640 0.9654 0.9668 0.9681 0.9694 0.9707

39 0.9550 0.9565 0.9580 0.9595 0.9610 0.9625 0.9639 0.9653 0.9668 0.9681

40 0.9513 0.9529 0.9545 0.9561 0.9576 0.9592 0.9608 0.9623 0.9638 0.9653

41 0.9473 0.9490 0.9506 0.9523 0.9540 0.9556 0.9573 0.9589 0.9606 0.9622

42 0.9430 0.9447 0.9465 0.9482 0.9500 0.9518 0.9535 0.9553 0.9570 0.9587

43 0.9383 0.9401 0.9419 0.9438 0.9457 0.9475 0.9494 0.9513 0.9531 0.9550

44 0.9332 0.9351 0.9370 0.9390 0.9410 0.9429 0.9449 0.9469 0.9489 0.9508

45 0.9278 0.9298 0.9318 0.9338 0.9359 0.9380 0.9400 0.9421 0.9442 0.9463

46 0.9219 0.9240 0.9261 0.9282 0.9304 0.9326 0.9347 0.9370 0.9392 0.9414

47 0.9156 0.9178 0.9200 0.9222 0.9244 0.9267 0.9290 0.9313 0.9337 0.9360

48 0.9089 0.9111 0.9134 0.9157 0.9180 0.9204 0.9228 0.9252 0.9277 0.9301

49 0.9016 0.9039 0.9063 0.9086 0.9111 0.9136 0.9161 0.9186 0.9212 0.9238

50 0.8939 0.8962 0.8986 0.9011 0.9036 0.9062 0.9088 0.9115 0.9141 0.9169

51 0.8856 0.8880 0.8905 0.8930 0.8956 0.8983 0.9010 0.9037 0.9065 0.9094

52 0.8768 0.8792 0.8818 0.8844 0.8871 0.8898 0.8926 0.8955 0.8984 0.9013

53 0.8674 0.8699 0.8725 0.8752 0.8780 0.8808 0.8837 0.8866 0.8896 0.8927

54 0.8575 0.8601 0.8627 0.8654 0.8683 0.8712 0.8741 0.8772 0.8803 0.8835

55 0.8470 0.8496 0.8523 0.8551 0.8579 0.8609 0.8640 0.8671 0.8703 0.8736

56 0.8359 0.8386 0.8413 0.8442 0.8471 0.8502 0.8533 0.8565 0.8598 0.8632

57 0.8245 0.8272 0.8300 0.8329 0.8359 0.8389 0.8421 0.8454 0.8488 0.8523

58 0.8126 0.8153 0.8181 0.8210 0.8241 0.8272 0.8305 0.8338 0.8373 0.8408

59 0.8001 0.8029 0.8057 0.8087 0.8118 0.8150 0.8183 0.8217 0.8252 0.8288

60 0.7872 0.7900 0.7928 0.7958 0.7989 0.8022 0.8055 0.8090 0.8126 0.8163

61 0.7738 0.7765 0.7794 0.7824 0.7856 0.7888 0.7922 0.7957 0.7994 0.8032

62 0.7599 0.7627 0.7656 0.7686 0.7718 0.7751 0.7785 0.7821 0.7857 0.7896

63 0.7457 0.7485 0.7514 0.7544 0.7576 0.7609 0.7643 0.7679 0.7716 0.7755

64 0.7311 0.7339 0.7368 0.7398 0.7430 0.7463 0.7498 0.7534 0.7572 0.7611

65 0.7162 0.7189 0.7218 0.7248 0.7280 0.7313 0.7348 0.7385 0.7422 0.7462

66 0.7008 0.7035 0.7064 0.7094 0.7126 0.7159 0.7194 0.7231 0.7269 0.7308

67 0.6852 0.6879 0.6908 0.6938 0.6970 0.7003 0.7038 0.7074 0.7112 0.7152

68 0.6692 0.6719 0.6748 0.6778 0.6809 0.6842 0.6877 0.6913 0.6951 0.6991

69 0.6528 0.6555 0.6583 0.6612 0.6644 0.6676 0.6711 0.6747 0.6785 0.6825

70 0.6359 0.6386 0.6413 0.6443 0.6474 0.6506 0.6540 0.6576 0.6614 0.6654

71 0.6187 0.6213 0.6240 0.6269 0.6300 0.6332 0.6366 0.6401 0.6439 0.6478

72 0.6009 0.6035 0.6062 0.6090 0.6120 0.6152 0.6186 0.6221 0.6258 0.6297

73 0.5827 0.5852 0.5878 0.5907 0.5936 0.5967 0.6000 0.6035 0.6072 0.6110

74 0.5640 0.5665 0.5691 0.5718 0.5747 0.5778 0.5810 0.5845 0.5881 0.5919

75 0.5449 0.5473 0.5499 0.5526 0.5554 0.5584 0.5616 0.5650 0.5685 0.5722

76 0.5257 0.5280 0.5305 0.5331 0.5359 0.5389 0.5420 0.5453 0.5487 0.5524

77 0.5061 0.5084 0.5108 0.5134 0.5161 0.5190 0.5220 0.5252 0.5286 0.5322

78 0.4865 0.4888 0.4911 0.4936 0.4962 0.4990 0.5020 0.5051 0.5084 0.5119

79 0.4669 0.4691 0.4713 0.4738 0.4763 0.4790 0.4819 0.4849 0.4882 0.4916

80 0.4473 0.4494 0.4516 0.4540 0.4564 0.4591 0.4618 0.4648 0.4679 0.4712

36.1.104
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Spouse Age 

Retiree Age 48 49 50 51 52 53 54 55 56 57

28 0.9876 0.9881 0.9886 0.9891 0.9895 0.9899 0.9904 0.9907 0.9911 0.9915

29 0.9865 0.9870 0.9875 0.9881 0.9885 0.9890 0.9895 0.9899 0.9903 0.9907

30 0.9852 0.9858 0.9864 0.9869 0.9875 0.9880 0.9885 0.9889 0.9894 0.9898

31 0.9840 0.9846 0.9853 0.9859 0.9865 0.9871 0.9876 0.9881 0.9886 0.9891

32 0.9827 0.9834 0.9841 0.9848 0.9854 0.9860 0.9866 0.9872 0.9878 0.9883

33 0.9813 0.9821 0.9828 0.9836 0.9843 0.9850 0.9856 0.9862 0.9868 0.9874

34 0.9797 0.9806 0.9814 0.9822 0.9830 0.9838 0.9845 0.9852 0.9859 0.9865

35 0.9780 0.9790 0.9799 0.9808 0.9817 0.9825 0.9833 0.9840 0.9848 0.9855

36 0.9762 0.9772 0.9782 0.9792 0.9802 0.9811 0.9819 0.9828 0.9836 0.9843

37 0.9742 0.9753 0.9764 0.9775 0.9785 0.9795 0.9804 0.9814 0.9822 0.9831

38 0.9720 0.9732 0.9744 0.9755 0.9767 0.9777 0.9788 0.9798 0.9808 0.9817

39 0.9695 0.9708 0.9721 0.9734 0.9746 0.9758 0.9769 0.9780 0.9791 0.9801

40 0.9668 0.9682 0.9696 0.9710 0.9723 0.9736 0.9749 0.9761 0.9772 0.9784

41 0.9638 0.9653 0.9668 0.9683 0.9698 0.9712 0.9725 0.9739 0.9751 0.9764

42 0.9604 0.9621 0.9637 0.9654 0.9669 0.9685 0.9699 0.9714 0.9728 0.9741

43 0.9568 0.9586 0.9603 0.9621 0.9638 0.9654 0.9671 0.9686 0.9702 0.9716

44 0.9528 0.9547 0.9566 0.9585 0.9603 0.9621 0.9638 0.9656 0.9672 0.9688

45 0.9484 0.9504 0.9525 0.9545 0.9565 0.9584 0.9603 0.9621 0.9639 0.9657

46 0.9436 0.9458 0.9479 0.9501 0.9522 0.9543 0.9564 0.9584 0.9603 0.9622

47 0.9383 0.9407 0.9430 0.9453 0.9475 0.9498 0.9520 0.9542 0.9563 0.9583

48 0.9326 0.9351 0.9375 0.9400 0.9424 0.9448 0.9472 0.9495 0.9518 0.9540

49 0.9264 0.9290 0.9316 0.9342 0.9368 0.9393 0.9419 0.9444 0.9468 0.9492

50 0.9196 0.9223 0.9251 0.9278 0.9306 0.9333 0.9360 0.9387 0.9413 0.9439

51 0.9122 0.9151 0.9180 0.9209 0.9238 0.9267 0.9296 0.9324 0.9353 0.9380

52 0.9043 0.9074 0.9104 0.9135 0.9165 0.9196 0.9226 0.9257 0.9287 0.9317

53 0.8958 0.8990 0.9022 0.9054 0.9086 0.9118 0.9151 0.9183 0.9215 0.9246

54 0.8867 0.8900 0.8933 0.8967 0.9000 0.9034 0.9068 0.9102 0.9136 0.9170

55 0.8769 0.8803 0.8838 0.8873 0.8908 0.8944 0.8980 0.9015 0.9051 0.9087

56 0.8666 0.8701 0.8737 0.8774 0.8810 0.8848 0.8885 0.8923 0.8960 0.8998

57 0.8558 0.8595 0.8632 0.8669 0.8708 0.8746 0.8786 0.8825 0.8865 0.8904

58 0.8445 0.8482 0.8520 0.8559 0.8599 0.8639 0.8680 0.8721 0.8763 0.8804

59 0.8326 0.8364 0.8403 0.8444 0.8485 0.8526 0.8568 0.8611 0.8654 0.8698

60 0.8201 0.8240 0.8281 0.8322 0.8364 0.8407 0.8451 0.8495 0.8540 0.8585

61 0.8071 0.8111 0.8152 0.8194 0.8237 0.8282 0.8327 0.8373 0.8419 0.8466

62 0.7935 0.7976 0.8018 0.8061 0.8106 0.8151 0.8198 0.8245 0.8293 0.8342

63 0.7795 0.7837 0.7879 0.7924 0.7969 0.8015 0.8063 0.8112 0.8161 0.8212

64 0.7652 0.7694 0.7737 0.7782 0.7828 0.7876 0.7924 0.7974 0.8025 0.8077

65 0.7503 0.7545 0.7589 0.7635 0.7682 0.7730 0.7780 0.7831 0.7883 0.7936

66 0.7349 0.7392 0.7437 0.7483 0.7530 0.7580 0.7630 0.7682 0.7735 0.7790

67 0.7193 0.7236 0.7281 0.7328 0.7376 0.7426 0.7477 0.7530 0.7584 0.7640

68 0.7033 0.7076 0.7121 0.7168 0.7217 0.7267 0.7319 0.7373 0.7428 0.7485

69 0.6866 0.6910 0.6955 0.7002 0.7051 0.7102 0.7154 0.7209 0.7265 0.7322

70 0.6695 0.6739 0.6784 0.6831 0.6880 0.6931 0.6984 0.7039 0.7095 0.7154

71 0.6519 0.6563 0.6608 0.6655 0.6704 0.6755 0.6809 0.6864 0.6921 0.6980

72 0.6338 0.6381 0.6426 0.6473 0.6522 0.6573 0.6627 0.6682 0.6739 0.6799

73 0.6151 0.6194 0.6238 0.6285 0.6334 0.6385 0.6438 0.6494 0.6551 0.6611

74 0.5959 0.6001 0.6045 0.6092 0.6140 0.6191 0.6244 0.6299 0.6357 0.6416

75 0.5762 0.5803 0.5847 0.5893 0.5941 0.5992 0.6044 0.6099 0.6156 0.6216

76 0.5563 0.5604 0.5647 0.5692 0.5739 0.5789 0.5841 0.5896 0.5953 0.6012

77 0.5360 0.5400 0.5442 0.5487 0.5534 0.5583 0.5634 0.5688 0.5744 0.5803

78 0.5156 0.5195 0.5237 0.5280 0.5326 0.5375 0.5425 0.5478 0.5534 0.5592

79 0.4952 0.4990 0.5031 0.5073 0.5118 0.5165 0.5215 0.5267 0.5322 0.5379

80 0.4747 0.4785 0.4824 0.4866 0.4910 0.4956 0.5005 0.5056 0.5109 0.5166

36.1.105
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- 100 -

Spouse Age 

Retiree Age 58 59 60 61 62 63 64 65 66 67

28 0.9918 0.9921 0.9925 0.9928 0.9931 0.9933 0.9936 0.9939 0.9941 0.9944

29 0.9911 0.9914 0.9918 0.9921 0.9924 0.9927 0.9930 0.9933 0.9936 0.9938

30 0.9902 0.9906 0.9910 0.9914 0.9917 0.9920 0.9924 0.9927 0.9930 0.9932

31 0.9895 0.9900 0.9904 0.9908 0.9911 0.9915 0.9918 0.9922 0.9925 0.9928

32 0.9888 0.9893 0.9897 0.9901 0.9905 0.9909 0.9913 0.9917 0.9920 0.9923

33 0.9880 0.9885 0.9890 0.9895 0.9899 0.9903 0.9908 0.9911 0.9915 0.9919

34 0.9871 0.9877 0.9882 0.9887 0.9892 0.9897 0.9902 0.9906 0.9910 0.9914

35 0.9861 0.9868 0.9874 0.9879 0.9885 0.9890 0.9895 0.9900 0.9904 0.9909

36 0.9851 0.9858 0.9864 0.9871 0.9877 0.9883 0.9888 0.9893 0.9898 0.9903

37 0.9839 0.9847 0.9854 0.9861 0.9868 0.9874 0.9880 0.9886 0.9891 0.9897

38 0.9826 0.9834 0.9843 0.9850 0.9858 0.9865 0.9871 0.9878 0.9884 0.9890

39 0.9811 0.9821 0.9830 0.9838 0.9846 0.9854 0.9862 0.9869 0.9875 0.9882

40 0.9794 0.9805 0.9815 0.9824 0.9833 0.9842 0.9850 0.9858 0.9865 0.9872

41 0.9776 0.9787 0.9798 0.9808 0.9818 0.9828 0.9837 0.9846 0.9854 0.9862

42 0.9754 0.9767 0.9779 0.9791 0.9802 0.9812 0.9822 0.9832 0.9841 0.9850

43 0.9731 0.9744 0.9758 0.9770 0.9783 0.9794 0.9805 0.9816 0.9826 0.9836

44 0.9704 0.9719 0.9734 0.9748 0.9761 0.9774 0.9786 0.9798 0.9809 0.9820

45 0.9674 0.9691 0.9707 0.9722 0.9737 0.9751 0.9764 0.9778 0.9790 0.9802

46 0.9641 0.9659 0.9676 0.9693 0.9709 0.9725 0.9740 0.9754 0.9768 0.9781

47 0.9604 0.9623 0.9642 0.9661 0.9678 0.9696 0.9712 0.9728 0.9743 0.9758

48 0.9562 0.9583 0.9604 0.9624 0.9644 0.9662 0.9681 0.9698 0.9715 0.9731

49 0.9516 0.9539 0.9562 0.9583 0.9605 0.9625 0.9645 0.9664 0.9683 0.9700

50 0.9465 0.9490 0.9514 0.9538 0.9561 0.9583 0.9605 0.9626 0.9646 0.9665

51 0.9408 0.9435 0.9461 0.9487 0.9512 0.9536 0.9560 0.9582 0.9605 0.9626

52 0.9346 0.9375 0.9403 0.9431 0.9458 0.9484 0.9510 0.9535 0.9559 0.9582

53 0.9278 0.9309 0.9339 0.9369 0.9398 0.9427 0.9455 0.9482 0.9508 0.9533

54 0.9203 0.9236 0.9269 0.9301 0.9332 0.9363 0.9393 0.9423 0.9451 0.9479

55 0.9122 0.9158 0.9192 0.9227 0.9260 0.9293 0.9326 0.9357 0.9388 0.9418

56 0.9036 0.9073 0.9110 0.9146 0.9182 0.9218 0.9253 0.9287 0.9320 0.9353

57 0.8944 0.8983 0.9022 0.9061 0.9100 0.9138 0.9175 0.9211 0.9247 0.9282

58 0.8846 0.8887 0.8929 0.8970 0.9011 0.9051 0.9091 0.9130 0.9169 0.9206

59 0.8742 0.8785 0.8829 0.8873 0.8916 0.8959 0.9001 0.9043 0.9084 0.9124

60 0.8631 0.8677 0.8723 0.8768 0.8814 0.8859 0.8904 0.8949 0.8993 0.9036

61 0.8514 0.8562 0.8610 0.8658 0.8706 0.8754 0.8801 0.8848 0.8895 0.8941

62 0.8391 0.8441 0.8491 0.8541 0.8592 0.8642 0.8692 0.8742 0.8791 0.8840

63 0.8263 0.8314 0.8367 0.8419 0.8472 0.8524 0.8577 0.8630 0.8682 0.8734

64 0.8130 0.8183 0.8237 0.8292 0.8347 0.8402 0.8457 0.8512 0.8567 0.8622

65 0.7990 0.8046 0.8101 0.8158 0.8215 0.8272 0.8330 0.8388 0.8446 0.8503

66 0.7846 0.7902 0.7960 0.8018 0.8077 0.8137 0.8197 0.8257 0.8318 0.8378

67 0.7697 0.7755 0.7814 0.7874 0.7935 0.7997 0.8059 0.8122 0.8185 0.8248

68 0.7543 0.7602 0.7663 0.7724 0.7787 0.7851 0.7915 0.7980 0.8046 0.8112

69 0.7381 0.7442 0.7504 0.7567 0.7631 0.7697 0.7763 0.7830 0.7898 0.7967

70 0.7214 0.7275 0.7339 0.7403 0.7469 0.7536 0.7604 0.7673 0.7743 0.7814

71 0.7040 0.7103 0.7167 0.7232 0.7299 0.7368 0.7438 0.7509 0.7581 0.7654

72 0.6860 0.6923 0.6988 0.7054 0.7122 0.7192 0.7263 0.7336 0.7410 0.7485

73 0.6672 0.6736 0.6801 0.6868 0.6937 0.7008 0.7080 0.7154 0.7230 0.7307

74 0.6478 0.6542 0.6607 0.6675 0.6745 0.6816 0.6890 0.6965 0.7042 0.7120

75 0.6277 0.6341 0.6407 0.6475 0.6545 0.6617 0.6691 0.6767 0.6845 0.6925

76 0.6073 0.6137 0.6203 0.6271 0.6341 0.6413 0.6488 0.6564 0.6643 0.6724

77 0.5864 0.5927 0.5993 0.6061 0.6131 0.6203 0.6278 0.6355 0.6434 0.6516

78 0.5652 0.5715 0.5780 0.5848 0.5918 0.5990 0.6064 0.6141 0.6221 0.6303

79 0.5439 0.5501 0.5566 0.5633 0.5702 0.5774 0.5848 0.5925 0.6004 0.6086

80 0.5224 0.5286 0.5349 0.5416 0.5484 0.5555 0.5629 0.5705 0.5784 0.5866

36.1.106
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- 101 -

Spouse Age 

Retiree Age 68 69 70 71 72 73 74 75 76 77

28 0.9946 0.9948 0.9951 0.9953 0.9955 0.9957 0.9959 0.9961 0.9963 0.9965

29 0.9941 0.9943 0.9946 0.9948 0.9950 0.9952 0.9955 0.9957 0.9959 0.9961

30 0.9935 0.9938 0.9940 0.9943 0.9945 0.9947 0.9950 0.9952 0.9954 0.9956

31 0.9931 0.9934 0.9936 0.9939 0.9942 0.9944 0.9947 0.9949 0.9951 0.9953

32 0.9927 0.9930 0.9933 0.9935 0.9938 0.9941 0.9943 0.9946 0.9948 0.9951

33 0.9922 0.9925 0.9929 0.9932 0.9935 0.9937 0.9940 0.9943 0.9945 0.9948

34 0.9918 0.9921 0.9924 0.9928 0.9931 0.9934 0.9937 0.9940 0.9942 0.9945

35 0.9913 0.9916 0.9920 0.9924 0.9927 0.9930 0.9934 0.9937 0.9939 0.9942

36 0.9907 0.9912 0.9916 0.9919 0.9923 0.9927 0.9930 0.9933 0.9936 0.9939

37 0.9901 0.9906 0.9911 0.9915 0.9919 0.9923 0.9926 0.9930 0.9933 0.9936

38 0.9895 0.9900 0.9905 0.9910 0.9914 0.9918 0.9922 0.9926 0.9930 0.9933

39 0.9888 0.9893 0.9899 0.9904 0.9909 0.9913 0.9918 0.9922 0.9926 0.9930

40 0.9879 0.9885 0.9891 0.9897 0.9902 0.9908 0.9912 0.9917 0.9921 0.9925

41 0.9869 0.9876 0.9883 0.9889 0.9895 0.9901 0.9906 0.9911 0.9916 0.9921

42 0.9858 0.9866 0.9873 0.9880 0.9887 0.9893 0.9899 0.9905 0.9910 0.9915

43 0.9845 0.9854 0.9862 0.9870 0.9877 0.9884 0.9891 0.9897 0.9903 0.9909

44 0.9830 0.9840 0.9849 0.9858 0.9866 0.9874 0.9881 0.9888 0.9895 0.9901

45 0.9813 0.9824 0.9834 0.9844 0.9853 0.9862 0.9870 0.9878 0.9885 0.9892

46 0.9794 0.9806 0.9817 0.9828 0.9838 0.9848 0.9857 0.9866 0.9874 0.9882

47 0.9772 0.9785 0.9798 0.9810 0.9821 0.9832 0.9843 0.9852 0.9862 0.9870

48 0.9746 0.9761 0.9775 0.9789 0.9801 0.9814 0.9825 0.9836 0.9847 0.9856

49 0.9717 0.9734 0.9749 0.9764 0.9778 0.9792 0.9805 0.9817 0.9829 0.9840

50 0.9684 0.9702 0.9720 0.9736 0.9752 0.9767 0.9781 0.9795 0.9808 0.9821

51 0.9647 0.9666 0.9686 0.9704 0.9721 0.9738 0.9754 0.9770 0.9784 0.9798

52 0.9605 0.9627 0.9648 0.9668 0.9687 0.9706 0.9724 0.9741 0.9757 0.9772

53 0.9558 0.9582 0.9605 0.9627 0.9649 0.9669 0.9689 0.9708 0.9726 0.9743

54 0.9506 0.9532 0.9557 0.9581 0.9605 0.9628 0.9649 0.9670 0.9690 0.9709

55 0.9448 0.9476 0.9504 0.9530 0.9556 0.9581 0.9605 0.9628 0.9650 0.9671

56 0.9384 0.9415 0.9445 0.9474 0.9502 0.9530 0.9556 0.9581 0.9605 0.9629

57 0.9317 0.9350 0.9383 0.9414 0.9445 0.9475 0.9503 0.9531 0.9558 0.9583

58 0.9243 0.9279 0.9315 0.9349 0.9382 0.9414 0.9446 0.9476 0.9505 0.9533

59 0.9164 0.9203 0.9241 0.9278 0.9314 0.9349 0.9383 0.9416 0.9448 0.9479

60 0.9079 0.9120 0.9161 0.9201 0.9240 0.9278 0.9315 0.9351 0.9386 0.9419

61 0.8987 0.9031 0.9075 0.9118 0.9160 0.9201 0.9241 0.9280 0.9318 0.9354

62 0.8889 0.8937 0.8984 0.9030 0.9075 0.9119 0.9162 0.9204 0.9245 0.9285

63 0.8785 0.8836 0.8886 0.8935 0.8984 0.9031 0.9078 0.9123 0.9167 0.9210

64 0.8676 0.8730 0.8784 0.8836 0.8888 0.8939 0.8989 0.9037 0.9085 0.9131

65 0.8561 0.8618 0.8674 0.8730 0.8785 0.8840 0.8893 0.8946 0.8997 0.9047

66 0.8439 0.8499 0.8559 0.8618 0.8677 0.8734 0.8792 0.8848 0.8903 0.8956

67 0.8312 0.8375 0.8438 0.8501 0.8563 0.8625 0.8685 0.8745 0.8804 0.8862

68 0.8178 0.8244 0.8311 0.8377 0.8443 0.8508 0.8572 0.8636 0.8699 0.8761

69 0.8036 0.8105 0.8175 0.8244 0.8313 0.8382 0.8451 0.8519 0.8586 0.8652

70 0.7886 0.7958 0.8031 0.8103 0.8176 0.8249 0.8321 0.8393 0.8464 0.8534

71 0.7728 0.7803 0.7879 0.7954 0.8031 0.8107 0.8183 0.8259 0.8334 0.8409

72 0.7561 0.7639 0.7717 0.7796 0.7875 0.7955 0.8035 0.8115 0.8194 0.8273

73 0.7385 0.7465 0.7546 0.7627 0.7710 0.7793 0.7877 0.7960 0.8044 0.8127

74 0.7200 0.7282 0.7365 0.7449 0.7534 0.7621 0.7708 0.7795 0.7883 0.7970

75 0.7006 0.7090 0.7175 0.7261 0.7349 0.7438 0.7528 0.7619 0.7711 0.7802

76 0.6807 0.6891 0.6978 0.7067 0.7157 0.7248 0.7341 0.7436 0.7530 0.7626

77 0.6599 0.6685 0.6773 0.6863 0.6955 0.7049 0.7145 0.7242 0.7340 0.7439

78 0.6387 0.6473 0.6562 0.6654 0.6747 0.6843 0.6941 0.7041 0.7142 0.7244

79 0.6170 0.6257 0.6347 0.6439 0.6534 0.6631 0.6731 0.6833 0.6936 0.7042

80 0.5950 0.6037 0.6127 0.6220 0.6315 0.6414 0.6515 0.6618 0.6724 0.6832

36.1.107
TM:538126 / 01096280 / 01/01/2015 Appendix A-2 (Page 7 of 8)

- 102 -

Spouse Age 

Retiree Age 78 79 80 81 82 83 84 85 86 87

28 0.9967 0.9968 0.9970 0.9972 0.9973 0.9975 0.9976 0.9978 0.9979 0.9980

29 0.9963 0.9965 0.9966 0.9968 0.9970 0.9971 0.9973 0.9974 0.9976 0.9977

30 0.9958 0.9960 0.9962 0.9964 0.9966 0.9968 0.9969 0.9971 0.9972 0.9974

31 0.9956 0.9958 0.9960 0.9962 0.9964 0.9965 0.9967 0.9969 0.9970 0.9972

32 0.9953 0.9955 0.9957 0.9959 0.9961 0.9963 0.9965 0.9967 0.9968 0.9970

33 0.9950 0.9953 0.9955 0.9957 0.9959 0.9961 0.9963 0.9965 0.9966 0.9968

34 0.9948 0.9950 0.9952 0.9955 0.9957 0.9959 0.9961 0.9963 0.9965 0.9966

35 0.9945 0.9948 0.9950 0.9952 0.9955 0.9957 0.9959 0.9961 0.9963 0.9965

36 0.9942 0.9945 0.9948 0.9950 0.9953 0.9955 0.9957 0.9959 0.9961 0.9963

37 0.9940 0.9942 0.9945 0.9948 0.9951 0.9953 0.9955 0.9958 0.9960 0.9962

38 0.9937 0.9940 0.9943 0.9946 0.9948 0.9951 0.9953 0.9956 0.9958 0.9960

39 0.9933 0.9937 0.9940 0.9943 0.9946 0.9949 0.9951 0.9954 0.9956 0.9958

40 0.9929 0.9933 0.9937 0.9940 0.9943 0.9946 0.9949 0.9952 0.9954 0.9956

41 0.9925 0.9929 0.9933 0.9936 0.9940 0.9943 0.9946 0.9949 0.9952 0.9954

42 0.9920 0.9924 0.9928 0.9932 0.9936 0.9940 0.9943 0.9946 0.9949 0.9952

43 0.9914 0.9919 0.9923 0.9928 0.9932 0.9936 0.9939 0.9943 0.9946 0.9949

44 0.9907 0.9912 0.9918 0.9922 0.9927 0.9931 0.9935 0.9939 0.9942 0.9945

45 0.9899 0.9905 0.9911 0.9916 0.9921 0.9926 0.9930 0.9934 0.9938 0.9941

46 0.9890 0.9896 0.9903 0.9909 0.9914 0.9920 0.9925 0.9929 0.9933 0.9937

47 0.9879 0.9886 0.9893 0.9900 0.9906 0.9912 0.9918 0.9923 0.9927 0.9932

48 0.9866 0.9874 0.9882 0.9890 0.9897 0.9904 0.9910 0.9915 0.9920 0.9925

49 0.9850 0.9860 0.9869 0.9878 0.9886 0.9893 0.9900 0.9906 0.9912 0.9917

50 0.9832 0.9843 0.9853 0.9863 0.9872 0.9880 0.9888 0.9895 0.9902 0.9908

51 0.9811 0.9823 0.9835 0.9846 0.9856 0.9865 0.9874 0.9882 0.9889 0.9896

52 0.9787 0.9801 0.9814 0.9826 0.9837 0.9848 0.9858 0.9867 0.9875 0.9883

53 0.9759 0.9775 0.9789 0.9803 0.9816 0.9828 0.9839 0.9849 0.9859 0.9867

54 0.9727 0.9744 0.9761 0.9776 0.9791 0.9804 0.9817 0.9828 0.9839 0.9849

55 0.9691 0.9710 0.9728 0.9745 0.9761 0.9777 0.9791 0.9804 0.9816 0.9827

56 0.9651 0.9672 0.9692 0.9711 0.9729 0.9746 0.9762 0.9776 0.9790 0.9802

57 0.9608 0.9631 0.9653 0.9674 0.9694 0.9713 0.9731 0.9747 0.9762 0.9776

58 0.9560 0.9586 0.9610 0.9634 0.9656 0.9677 0.9696 0.9714 0.9731 0.9747

59 0.9508 0.9537 0.9564 0.9589 0.9614 0.9637 0.9658 0.9678 0.9697 0.9714

60 0.9451 0.9482 0.9512 0.9540 0.9567 0.9592 0.9616 0.9639 0.9659 0.9678

61 0.9389 0.9423 0.9456 0.9487 0.9516 0.9544 0.9570 0.9595 0.9617 0.9639

62 0.9323 0.9360 0.9395 0.9429 0.9461 0.9491 0.9520 0.9547 0.9572 0.9596

63 0.9251 0.9291 0.9330 0.9367 0.9402 0.9435 0.9466 0.9496 0.9524 0.9549

64 0.9176 0.9219 0.9261 0.9301 0.9339 0.9376 0.9410 0.9442 0.9472 0.9500

65 0.9095 0.9142 0.9187 0.9230 0.9272 0.9311 0.9349 0.9384 0.9417 0.9447

66 0.9008 0.9059 0.9108 0.9155 0.9200 0.9242 0.9283 0.9321 0.9357 0.9390

67 0.8918 0.8972 0.9025 0.9076 0.9124 0.9171 0.9215 0.9256 0.9295 0.9332

68 0.8821 0.8879 0.8936 0.8991 0.9044 0.9094 0.9142 0.9187 0.9229 0.9268

69 0.8716 0.8779 0.8840 0.8899 0.8956 0.9010 0.9062 0.9110 0.9156 0.9199

70 0.8603 0.8670 0.8736 0.8799 0.8860 0.8919 0.8975 0.9028 0.9077 0.9124

71 0.8482 0.8554 0.8624 0.8692 0.8758 0.8821 0.8881 0.8939 0.8992 0.9043

72 0.8351 0.8428 0.8503 0.8575 0.8646 0.8714 0.8779 0.8840 0.8899 0.8953

73 0.8210 0.8291 0.8371 0.8448 0.8524 0.8597 0.8666 0.8733 0.8796 0.8854

74 0.8057 0.8143 0.8228 0.8310 0.8391 0.8469 0.8544 0.8615 0.8682 0.8746

75 0.7893 0.7984 0.8073 0.8161 0.8247 0.8330 0.8410 0.8486 0.8558 0.8627

76 0.7721 0.7816 0.7910 0.8003 0.8094 0.8182 0.8267 0.8349 0.8426 0.8499

77 0.7538 0.7638 0.7736 0.7834 0.7930 0.8023 0.8113 0.8200 0.8282 0.8361

78 0.7347 0.7450 0.7554 0.7656 0.7756 0.7855 0.7950 0.8042 0.8130 0.8213

79 0.7148 0.7255 0.7362 0.7469 0.7574 0.7677 0.7778 0.7875 0.7968 0.8056

80 0.6942 0.7052 0.7163 0.7274 0.7383 0.7491 0.7597 0.7699 0.7797 0.7890

36.1.108
TM:538126 / 01096280 / 01/01/2015 Appendix A-2 (Page 8 of 8)

- 103 -

Spouse Age 

Retiree Age 88 89 90 91 92 93 94 95

28 0.9981 0.9982 0.9983 0.9984 0.9985 0.9985 0.9986 0.9987

29 0.9978 0.9979 0.9980 0.9981 0.9982 0.9983 0.9984 0.9985

30 0.9975 0.9976 0.9977 0.9978 0.9979 0.9980 0.9981 0.9982

31 0.9973 0.9974 0.9975 0.9977 0.9978 0.9978 0.9979 0.9980

32 0.9971 0.9973 0.9974 0.9975 0.9976 0.9977 0.9978 0.9979

33 0.9970 0.9971 0.9972 0.9973 0.9974 0.9976 0.9976 0.9977

34 0.9968 0.9969 0.9971 0.9972 0.9973 0.9974 0.9975 0.9976

35 0.9966 0.9968 0.9969 0.9971 0.9972 0.9973 0.9974 0.9975

36 0.9965 0.9966 0.9968 0.9969 0.9970 0.9972 0.9973 0.9974

37 0.9963 0.9965 0.9967 0.9968 0.9969 0.9971 0.9972 0.9973

38 0.9962 0.9964 0.9965 0.9967 0.9968 0.9969 0.9971 0.9972

39 0.9960 0.9962 0.9964 0.9965 0.9967 0.9968 0.9969 0.9971

40 0.9958 0.9960 0.9962 0.9964 0.9965 0.9967 0.9968 0.9969

41 0.9956 0.9958 0.9960 0.9962 0.9964 0.9965 0.9967 0.9968

42 0.9954 0.9956 0.9958 0.9960 0.9962 0.9963 0.9965 0.9966

43 0.9951 0.9954 0.9956 0.9958 0.9960 0.9962 0.9963 0.9965

44 0.9948 0.9951 0.9953 0.9955 0.9957 0.9959 0.9961 0.9963

45 0.9944 0.9947 0.9950 0.9952 0.9955 0.9957 0.9959 0.9960

46 0.9940 0.9944 0.9946 0.9949 0.9952 0.9954 0.9956 0.9958

47 0.9935 0.9939 0.9942 0.9945 0.9948 0.9950 0.9953 0.9955

48 0.9929 0.9933 0.9937 0.9940 0.9943 0.9946 0.9949 0.9951

49 0.9922 0.9927 0.9931 0.9934 0.9938 0.9941 0.9944 0.9946

50 0.9913 0.9918 0.9923 0.9927 0.9931 0.9934 0.9938 0.9941

51 0.9903 0.9908 0.9913 0.9918 0.9922 0.9926 0.9930 0.9933

52 0.9890 0.9897 0.9902 0.9908 0.9913 0.9917 0.9921 0.9925

53 0.9875 0.9883 0.9889 0.9895 0.9901 0.9906 0.9911 0.9915

54 0.9858 0.9866 0.9874 0.9881 0.9887 0.9893 0.9898 0.9903

55 0.9837 0.9846 0.9855 0.9863 0.9870 0.9876 0.9883 0.9888

56 0.9814 0.9824 0.9834 0.9843 0.9851 0.9858 0.9865 0.9872

57 0.9789 0.9801 0.9812 0.9821 0.9831 0.9839 0.9847 0.9854

58 0.9761 0.9774 0.9786 0.9798 0.9808 0.9817 0.9826 0.9834

59 0.9730 0.9745 0.9759 0.9771 0.9782 0.9793 0.9803 0.9812

60 0.9696 0.9713 0.9728 0.9741 0.9754 0.9766 0.9777 0.9787

61 0.9658 0.9676 0.9693 0.9708 0.9722 0.9735 0.9748 0.9759

62 0.9617 0.9637 0.9656 0.9673 0.9688 0.9703 0.9716 0.9728

63 0.9573 0.9595 0.9615 0.9634 0.9651 0.9667 0.9682 0.9695

64 0.9526 0.9550 0.9573 0.9593 0.9612 0.9630 0.9646 0.9661

65 0.9476 0.9502 0.9526 0.9549 0.9570 0.9589 0.9607 0.9623

66 0.9421 0.9450 0.9477 0.9501 0.9524 0.9545 0.9564 0.9582

67 0.9365 0.9397 0.9425 0.9452 0.9477 0.9500 0.9521 0.9541

68 0.9305 0.9339 0.9371 0.9400 0.9427 0.9452 0.9475 0.9497

69 0.9239 0.9276 0.9310 0.9342 0.9371 0.9399 0.9424 0.9448

70 0.9167 0.9207 0.9245 0.9279 0.9311 0.9341 0.9368 0.9394

71 0.9090 0.9133 0.9174 0.9211 0.9246 0.9278 0.9308 0.9336

72 0.9004 0.9051 0.9095 0.9136 0.9174 0.9209 0.9242 0.9272

73 0.8909 0.8961 0.9008 0.9053 0.9094 0.9132 0.9167 0.9201

74 0.8805 0.8861 0.8912 0.8960 0.9005 0.9046 0.9085 0.9121

75 0.8691 0.8751 0.8806 0.8858 0.8906 0.8951 0.8993 0.9032

76 0.8568 0.8632 0.8692 0.8748 0.8800 0.8849 0.8894 0.8937

77 0.8434 0.8503 0.8568 0.8628 0.8684 0.8736 0.8785 0.8831

78 0.8291 0.8365 0.8434 0.8498 0.8559 0.8615 0.8667 0.8717

79 0.8139 0.8218 0.8291 0.8360 0.8425 0.8485 0.8541 0.8594

80 0.7978 0.8062 0.8140 0.8213 0.8281 0.8345 0.8405 0.8462

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APPENDIX B. BENEFIT CLAIMS AND APPEALS PROCEDURES 

Section 1. CLAIMS FOR BENEFITS 

(a) All benefit claims must be filed in writing and submitted on claim forms 

authorized by the Pension Fund (“Fund”). Claim forms may be obtained 

from any local union or from the Fund. 

(b) To provide sufficient time for processing a claim for retirement pension 

benefits, a Participant should file a claim form with the Fund at least 6 

months before his Retirement Date. An individual making a claim for 

death benefits or disability benefits should file a claim form as promptly as 

possible after the death or disability occurs. See the Benefits Claim Filing 

Procedures in Section 7.14 of this Pension Plan. 

(c) The Fund, upon its receipt of a written benefit claim form, shall notify the 

claimant of the Fund’s benefit determination within a reasonable period of 

time and, if a claim is wholly or partially denied, not later than 90 days 

after the Fund receives the claim, provided that this period may be 

extended for as much as an additional 90 days if the Fund determines 

that such an extension is necessary due to special circumstances and 

notifies the claimant, prior to the expiration of the initial 90-day period, of 

the circumstances requiring the extension of time and the date by which 

the Fund expects to render the benefit determination. If such an extension 

is necessary due to a failure of the claimant to submit information 

necessary to decide the claim, the notice of extension shall specifically 

describe the required information, and the claimant shall be afforded at 

least 45 days from receipt of the notice within which to provide the 

specified information. 

d) In the event that a time period for notice of any benefit determination by 

the Fund is extended to allow the claimant to submit information 

necessary to decide the claim, the time period for making the benefit 

determination and providing related notice shall be tolled (i.e., not 

counted) from the date on which the notification of the extension is sent to 

the claimant until the date on which the claimant responds to the request 

for additional information. 

(e) Notice of any adverse benefit determination pursuant to this Section shall 

be provided in accordance with Section 2 of this APPENDIX B. 

Section 2. NOTICE OF ADVERSE BENEFIT DETERMINATIONS 

(a) Whenever an adverse benefit determination (as defined in Section 2[b]) is 

made by the Fund, the Fund shall provide the claimant with written (or 

electronic) notice of the determination that shall include statements, in a 

manner calculated to be understood by the claimant, of the following: 

(1) the specific reason or reasons for each adverse benefit 

determination; 

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(2) references to the specific provisions of this Pension Plan on which 

each adverse benefit determination is based; 

(3) a description of any additional material or information necessary 

for the claimant to perfect the claim and an explanation of why 

such material or information is necessary; and 

(4) a description of the Fund’s appellate review procedures and the 

time limitations applicable to those procedures, including a 

statement of the claimant’s right to bring a civil action pursuant to 

Section 502 of the Employee Retirement Income Security Act 

following an adverse benefit determination at the end of appellate 

review by the Fund. 

(b) An “adverse benefit determination”, for all purposes of this APPENDIX B, 

means any of the following: a denial, reduction or termination of, or a 

failure to provide or make payment (in whole or in part) for, a benefit, 

including any such denial, reduction, termination or failure to provide or 

make payment that is based on any exclusion or any limitation of this 

Pension Plan as applied to a claim for benefits, or that is based on a 

determination relative to the question of the claimant’s or any other 

individual’s eligibility. 

Section 3. PROCEDURES DURING APPELLATE REVIEW OF ADVERSE BENEFIT 

DETERMINATIONS 

(a) Whenever an adverse benefit determination is made by the Fund, there 

are two available stages of the Fund’s appellate review of the 

determination, the first stage of which is conducted by the Benefits Claim 

Appeals Committee and the second stage of which is conducted by the 

Trustee Appellate Review Committee. The Benefits Claim Appeals 

Committee shall be composed of one or more employees of the Fund 

appointed to that position by the Executive Director of the Fund, provided 

that the Executive Director retains the authority to terminate any such 

appointment at any time. 

(b) All authority and responsibilities of the Fund’s Board of Trustees with 

respect to appellate review of adverse benefit determinations is delegated 

to a committee of Trustees designated as the Trustee Appellate Review 

Committee. 

(c) The following procedures shall govern the operations of the Trustee 

Appellate Review Committee: 

(1) a quorum of the Trustees at any meeting of the Trustee Appellate 

Review Committee, for the conduct of its business and for all 

benefit determinations on review by that committee, shall be at 

least one Employer Trustee and at least one Employee Trustee 

(all Trustee members of the Board of Trustees are and shall be de 

facto members of the Trustee Appellate Review Committee); 

(2) for each matter voted upon at any meeting of the Trustee 

Appellate Review Committee, the Employee Trustees and the 

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Employer Trustees shall each have the same number of votes 

based upon the larger number (of Employee Trustees or Employer 

Trustees) in attendance, provided that each vote shall be cast as 

the vote of an individual Trustee and not as part of a block, and 

each determination by the Trustee Appellate Review Committee 

shall be based upon a majority vote of those present and voting; 

(3) the meetings of the Trustee Appellate Review Committee shall be 

monthly according to a schedule approved by the Trustees; 

(4) the Trustees who attend and participate in any meeting of the 

Trustee Appellate Review Committee shall be vested, relative to 

all appellate review of adverse benefit determinations, with all 

authority and responsibilities of the Board of Trustees established 

by the Fund’s benefit plan documents, as heretofore and hereafter 

amended, including discretionary and final authority in making 

determinations during all such appellate review; 

(5) the Trustees who attend and participate in any meeting of the 

Trustee Appellate Review Committee shall, in the same meeting, 

constitute and make decisions of the Special Hardship Appeal 

Committee (which decisions shall be recorded in the minutes of 

the meeting of the Trustee Appellate Review Committee), 

pursuant to Section 6(f) of APPENDIX B of the Pension Plan; and 

(6) the records of monthly meetings of the Trustee Appellate Review 

Committee, and of its determinations during appellate review, 

shall be regularly kept and maintained with records of meetings of 

the Board of Trustees. 

(d) At all stages of appellate review of any adverse benefit determination, the 

following procedures shall be enforced: 

(1) the claimant shall be provided an opportunity to submit written 

comments, documents, records and other information relating to 

the claim for benefits; 

(2) the claimant shall be provided, upon request and free of charge, 

reasonable access to, and copies of, all documents, records and 

other information possessed by the Fund and relevant to the 

claimant’s claim for benefits; 

(3) the appellate review shall take into account all comments, 

documents, records and other information submitted by the 

claimant relating to the claim, without regard to whether such 

information was submitted or considered in the initial benefit 

determination; 

(4) the appellate review shall not afford deference to the initial 

adverse benefit determination by the Fund and shall be conducted 

by one or more individuals each of whom shall be an appropriate 

named fiduciary of the Fund who is neither an individual who 

made the adverse benefit determination that is the subject of the 

review nor a subordinate of any such individual; 

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(5) the appellate review shall require that, in deciding an appeal of 

any adverse benefit determination that is based in whole or in part 

on a medical judgment, the appropriate named fiduciary shall 

consult with a health care professional who has appropriate 

training and experience in the field of medicine involved in the 

medical judgment; and 

(6) the appellate review shall require the identification to the claimant 

of any medical or vocational expert whose advice was obtained on 

behalf of the Fund in connection with the claimant’s adverse 

benefit determination, whether or not the advice was relied upon 

in making that determination. 

Section 4. TIME LIMITATIONS FOR APPELLATE REVIEW OF ADVERSE BENEFIT 

DETERMINATIONS 

(a) Whenever an adverse benefit determination (as defined in Section 2[b]) is 

made by the Fund, the claimant may initiate appellate review of the 

determination by submission to the Fund, within 180 days after the 

claimant’s receipt of the Fund’s notice of such determination, of a request 

for appellate review. All requests for appellate review shall be submitted 

to the Fund in writing on forms authorized by the Fund. 

(b) The Fund, upon its receipt of a claimant’s timely written request for 

appellate review of an earlier adverse benefit determination, shall perform 

and complete appellate review, and shall notify the claimant of the 

determinations upon completion of such review, in accordance with the 

following time limitations: 

(1) all appellate review and benefit determinations by the Benefits 

Claim Appeals Committee shall be completed, and the Fund shall 

provide written notice to the claimant of those determinations, no 

later than 30 days after the Fund’s receipt of the claimant’s timely 

written request for appellate review of an adverse benefit 

determination; 

(2) whenever an adverse benefit determination is made by the 

Benefits Claim Appeals Committee at the end of its appellate 

review, the claimant may initiate appellate review by the Trustee 

Appellate Review Committee, by written request to the Fund 

within 180 days after the claimant’s receipt of the Fund’s notice of 

such determination; 

(3) appellate review by the Trustee Appellate Review Committee shall 

allow the claimant to exercise his right to make a personal 

presentation to Trustees (as provided in Section 6[e]), and all 

appellate review and benefit determinations by the Trustee 

Appellate Review Committee shall be completed within a 

reasonable period of time and at a monthly meeting that takes 

place no later than 90 or more days after the Fund receives the 

claimant’s timely written request for appellate review by the 

Trustee Appellate Review Committee (since 29 CFR 2560.503-1[i] 

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extends the aggregate time limit to a first quarterly board meeting 

more than 30 days after the review receipt’s request, or to the 

“third meeting” in “special circumstances ... such as the need to 

hold a hearing”, and since the same subsection allows an 

aggregate 120 days for review in “... special circumstances (such 

as the need to hold a hearing) ...”, this maximum complies with the 

regulation); 

(4) after appellate review and benefit determinations by the Trustee 

Appellate Review Committee, the Fund shall provide written notice 

to the claimant of those determinations by the Trustees no later 

than 5 days after the determinations are made; 

(5) in the event that any time period for any appellate review by the 

Fund of an earlier adverse benefit determination, and for notice of 

the determinations upon completion of such review, is extended 

based upon a failure by the claimant to submit information 

necessary to decide the claim, each time period for the conduct 

and completion of such appellate review, and for making benefit 

determinations, and for providing notice of those determinations, 

relative to the claimant’s claim, shall be tolled (i.e., not counted) 

from the date on which the notification of the extension is sent to 

the claimant until the date on which the claimant responds to the 

request for additional information. 

Section 5. NOTICE OF BENEFIT DETERMINATIONS AFTER APPELLATE REVIEW 

Whenever a benefit determination is made by the Benefits Claim Appeals Committee or 

the Trustees after appellate review, the Fund shall provide the claimant with written (or 

electronic) notice of the determination that shall include statements, in a manner 

calculated to be understood by the claimant, of the following: 

(a) the specific reason or reasons for each adverse benefit determination; 

(b) references to the specific provisions of this Pension Plan on which each 

determination is based; 

(c) a statement that the claimant is entitled to receive, upon request and free 

of charge, reasonable access to, and copies of, all documents, records 

and other information relevant to the claimant’s claim for benefits; and 

(d) a description of the Fund’s appellate review procedures and the time 

limits applicable to such procedures, including a statement of the 

claimant’s right to bring a civil action pursuant to Section 502 of the 

Employee Retirement Income Security Act following an adverse benefit 

determination at the end of appellate review by the Fund. 

Section 6. MISCELLANEOUS PROVISIONS 

(a) Any time limitation specified in this APPENDIX B for a determination 

and/or a notice by the Fund may be waived and/or modified at any time 

on the basis of a request, agreement or consent by the claimant or by an 

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authorized representative of the claimant, including a retroactive waiver 

and/or modification of an applicable time limitation after it has expired. 

(b) Each member of the Benefits Claim Appeals Committee is vested with 

discretionary and final authority in making any determination within the 

scope of this APPENDIX B, except that, upon further appellate review by 

the Trustees after a determination by the Benefits Claim Appeals 

Committee, the prior discretionary and final authority of the Benefits Claim 

Appeals Committee is displaced by the authority of the Trustees, who 

shall not afford deference to any determination by the Benefits Claim 

Appeals Committee. 

(c) The Trustees are vested with discretionary and final authority in making 

any determination within the scope of this APPENDIX B. 

(d) The burden of proof in demonstrating any fact essential to the approval of 

any claim for benefits, including eligibility for any claimed benefit and the 

extent to which a claimed benefit is covered or payable in accordance 

with this Pension Plan, shall at all times be the responsibility of the 

claimant, provided that the Fund will at all times during appellate review of 

an adverse benefit determination provide to the claimant, upon request 

and free of charge, reasonable access to, and copies of, all documents, 

records and other information possessed by the Fund and relevant to the 

claimant’s claim for benefits. 

(e) During appellate review by the Trustees of any adverse benefit 

determination, a claimant may make a personal presentation of his claims 

to the Trustee Appellate Review Committee (either by himself or by his 

authorized representative, or both). 

(f) A Special Hardship Appeal Committee exists in accordance with 

APPENDIX H of this Pension Plan and is composed of Trustees who 

meet on a monthly or other periodic basis and who, as members of such 

committee, are authorized by the Board of Trustees to consider and 

determine matters that include: 

(1) whether any benefits-related relief within the scope of APPENDIX 

H should be granted or denied to any individual; and 

(2) whether any claim of the Pension Fund, based upon Section 4.13, 

to restitution from any individual of Periodic Benefit Payments 

issued during Restricted Reemployment (or other Reemployment) 

should be enforced or waived or compromised. 

Decisions of the Special Hardship Appeal Committee are recorded in minutes of its 

meetings. Whenever an adverse benefit determination is made by the Special Hardship 

Appeal Committee, all terms and provisions of Section 2 through Section 6 of this 

APPENDIX B shall be applicable to such determination, except that the Benefit Claim 

Appeals Committee is not authorized to participate in any requested appellate review of 

that determination. 

(g) It is a condition precedent to any civil action by a claimant or other 

individual to recover benefits covered or payable in accordance with this 

Pension Plan and/or to clarify any individual’s rights to past, present or 

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future benefits covered or payable in accordance with this Pension Plan, 

including any civil action pursuant to Section 502 of the Employee 

Retirement Income Security Act, that the claimant or other individual files 

a benefit claim and initiates and actively pursues appellate review of any 

adverse benefit determination upon any claim, and secures all related 

benefit determinations by the Fund, in accordance with this APPENDIX B, 

prior to the commencement of any civil action. 

 

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APPENDIX C. SCHEDULE A - EARLY RETIREMENT PENSION AMOUNTS 

RETIREMENT AGES 

BENEFIT 

 CLASS 

 56 55 54 53 52 51 50 49 48 47 

 1 $56.40 $52.80 $49.20 $45.60 $42.00 $38.40 $34.80 $31.20 $27.60 $24.00 

 2 84.60 79.20 73.80 68.40 63.00 57.60 52.20 46.80 41.40 36.00 

2A 117.50 110.00 102.50 95.00 87.50 80.00 72.50 65.00 57.50 50.00 

 3 131.60 123.20 114.80 106.40 98.00 89.60 81.20 72.80 64.40 56.00 

3A 159.80 149.60 139.40 129.20 119.00 108.80 98.60 88.40 78.20 68.00 

 4 211.50 198.00 184.50 171.00 157.50 144.00 130.50 117.00 103.50 90.00 

 5 244.40 228.80 213.20 197.60 182.00 166.40 150.80 135.20 119.60 104.00 

 6 267.90 250.80 233.70 216.60 199.50 182.40 165.30 148.20 131.10 114.00 

 7 310.20 290.40 270.60 250.80 231.00 211.20 191.40 171.60 151.80 132.00 

 8 343.10 321.20 299.30 277.40 255.50 233.60 211.70 189.80 167.90 146.00 

 9 376.00 351.00 328.00 304.00 280.00 256.00 232.00 208.00 184.00 160.00 

10 408.90 382.80 356.70 330.60 304.50 278.40 252.30 226.20 200.10 174.00 

11 460.60 431.20 401.80 372.40 343.00 313.60 284.20 254.80 225.40 196.00 

12 540.50 506.00 471.50 437.00 402.50 368.00 333.50 299.00 264.50 230.00 

13 564.00 528.00 492.00 456.00 420.00 384.00 348.00 312.00 276.00 240.00 

14 587.50 550.00 512.50 475.00 437.50 400.00 362.50 325.00 287.50 250.00 

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APPENDIX C. SCHEDULE B - EARLY RETIREMENT PENSION AMOUNTS 

RETIREMENT AGES 

BENEFIT 

 CLASS 

 56 55 54 53 52 51 50 49 48 47 

1 $56.40 $52.80 $49.20 $45.60 $42.00 $38.40 $34.80 $31.20 $27.60 $24.00 

2 84.60 79.20 73.80 68.40 63.00 57.60 52.20 46.80 41.40 36.00 

2A 117.50 110.00 102.50 95.00 87.50 80.00 72.50 65.00 57.50 50.00 

3 131.60 123.20 114.80 106.40 98.00 89.60 81.20 72.80 64.40 56.00 

3A 159.80 149.60 139.40 129.20 119.00 108.80 98.60 88.40 78.20 68.00 

4 211.50 198.00 184.50 171.00 157.50 144.00 130.50 117.00 103.50 90.00 

5 244.40 228.80 213.20 197.60 182.00 166.40 150.80 135.20 119.60 104.00 

6 267.90 250.80 233.70 216.60 199.50 182.40 165.30 148.20 131.10 114.00 

7 310.20 290.40 270.60 250.80 231.00 211.20 191.40 171.60 151.80 132.00 

8 343.10 321.20 299.30 277.40 255.50 233.60 211.70 189.80 167.90 146.00 

9 376.00 352.00 328.00 304.00 280.00 256.00 232.00 208.00 184.00 160.00 

10 408.90 382.80 356.70 330.60 304.50 278.40 252.30 226.20 200.10 174.00 

11 460.60 431.20 401.80 372.40 343.00 313.60 284.20 254.80 225.40 196.00 

12 540.50 506.00 471.50 437.00 402.50 368.00 333.50 299.00 264.50 230.00 

13 564.00 528.00 492.00 456.00 420.00 384.00 348.00 312.00 276.00 240.00 

14 587.50 550.00 512.50 475.00 437.50 400.00 362.50 325.00 287.50 250.00 

15(A) 658.00 616.00 574.00 532.00 490.00 448.00 406.00 364.00 322.00 280.00 

or higher 

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APPENDIX D. PARTIAL PENSIONS 

(a) PREFACE: The following provisions are included to comply with 

requirements of the National Reciprocal Agreement, effective January 1, 

1964, and any other Reciprocal Agreements to which this Pension Fund 

is a party, and apply only to the following benefits: 

(1) Twenty-Year Service Pension; 

(2) Early Retirement Pension; 

(3) Contributory Credit Pension; 

(4) 25-And-Out Pension; 

(5) 30-And-Out Pension; 

(6) Monthly Disability Benefit; 

(7) 50% Surviving Spouse Benefit; and 

(8) 60 Month Survivor Benefit. 

(b) PURPOSE: Partial Pensions are provided under this Pension Plan to a 

Participant or a former Participant who does not have sufficient Service 

Credit to be eligible for any benefits because his years of employment 

were divided between different pension plans or, if eligible, whose 

benefits would be less than the full amount because his employment was 

divided. 

(c) DEFINITIONS 

(1) COMBINED SERVICE CREDIT: The total of an individual’s 

Service Credit under this Pension Plan and Related Service Credit 

together comprise the individual’s Combined Service Credit. An 

individual shall not earn more than one year of Combined Service 

Credit in any calendar year. 

(2) EFFECTIVE DATE: This Appendix D and the payment of partial 

pensions shall be effective on January 1, 1964. 

(3) RELATED SERVICE CREDIT: Service Credit earned and 

maintained by an individual under a Related Plan shall be 

recognized under this Pension Plan as Related Service Credit. 

The Board of Trustees shall determine Service Credit on the basis 

on which Related Service Credit has been earned and credited 

under the Related Plan and certified by the Related Plan to this 

Pension Plan. 

(4) RELATED PLAN: By resolution adopted, the Board of Trustees 

may recognize one or more other pension plans, which have 

executed a Reciprocal Agreement to which this Pension Plan is a 

party, as a Related Plan. 

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(5) TERMINAL PLAN: The Terminal Plan shall be the plan 

associated with the Union which represents the individual at the 

time of, or immediately prior to, his Retirement Date. If an 

individual was not represented by any Union immediately prior to 

his Retirement Date, then the Terminal Plan is the plan to which 

the greatest number of contributions were made on behalf of the 

individual in the 36 consecutive calendar months immediately 

preceding his Retirement Date. 

(d) ELIGIBILITY: An individual shall be eligible for a Partial Pension under 

this Pension Plan if he meets all of the following requirements: 

(1) he would be eligible for any type of pension under this Pension 

Plan (other than a Partial Pension) if his Combined Service Credit 

were treated as Service Credit under this Plan; and 

(2) he has earned, in addition to any other requirements necessary to 

be eligible under (1), above, at least two years of Service Credit in 

this Pension Plan (or a lesser number of years of Service Credit 

as may be specified in any Reciprocal Agreement to which this 

Pension Fund is a party) based on actual employment after he 

became an Employee as defined in Article I, Section 1.14 of this 

Pension Plan; and 

(3) he is found to be (A) eligible for a Partial Pension from a Related 

Plan and (B) eligible for a Partial Pension from the Terminal Plan; 

and 

(4) he is not eligible to receive payment of a pension from a Related 

Plan independent of its provisions for a Partial Pension, except 

that, an individual who is eligible for a pension other than a Partial 

Pension from this Pension Plan or a Related Plan may elect to 

waive the other pension and receive the Partial Pension. 

(e) BREAK-IN-SERVICE: In applying the Break-in-Service rules of this 

Pension Plan, any period for which an individual has earned Related 

Service Credit shall not be used to determine whether there has been a 

period of no Covered Service sufficient to constitute a Break-in-Service. 

(f) ELECTION OF PENSIONS: If an individual is eligible for more than one 

type of pension under this Pension Plan, he may elect the type of pension 

he is to receive. 

(g) PARTIAL PENSION AMOUNT: The amount of the Partial Pension shall 

be determined as follows: 

(1) the amount of the pension for which the individual would be 

eligible under this Pension Plan taking into account his Combined 

Service Credit shall be determined, then 

(2) the amount of Contributory Service Credit earned with this 

Pension Plan shall be divided by the total amount of Contributory 

Service Credit earned by the individual, then 

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(3) the result determined in (2), above, shall be multiplied by the 

pension amount determined in (1), above, and the result shall be 

the Partial Pension amount payable by this Pension Plan. 

(h) PAYMENT OF PARTIAL PENSIONS: The payment of a Partial Pension 

shall be subject to all of the conditions contained in this Pension Plan 

applicable to other types of benefits. 

(i) In the event that any Related Plan, on or after July 20, 2004 liberalizes its 

service credit rules, or takes other action that has the effect of awarding 

service credit with retroactive effect (i.e., with respect to services 

performed in the past or with respect to service credit already granted), in 

a way that imposes unanticipated costs in the Pension Fund if the 

Pension Fund were to recognize such service credit for reciprocal 

pension purposes, the Pension Fund reserves the right to terminate its 

participation in any reciprocal pension agreement to which it is a party 

with such Related Plan. 

(j) The Pension Fund is not liable for benefits based upon this APPENDIX D 

and any Reciprocal Agreement to which the Pension Fund is a party 

(including the National Reciprocal Agreement for Teamster Pension 

Funds) to the extent such liability has been transferred pursuant to 

APPENDIX L of this Pension Plan and the UPS-CSPF Agreement 

described in APPENDIX L. 

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APPENDIX E. RULES AND REGULATIONS PERTAINING TO 

 EMPLOYER WITHDRAWAL LIABILITY 

Section 1. PREAMBLE

This APPENDIX E to the Central States, Southeast and Southwest Areas Pension Plan 

(the “Plan”) sets forth and describes rules and regulations applicable to the 

determination and payment of Employer Withdrawal Liability pursuant to the Employee 

Retirement Income Security Act of 1974 (ERISA), as amended by the Multiemployer 

Pension Plan Amendments Act of 1980 (the “1980 Act”). The term Employer, as used 

herein, shall be defined as in ERISA and trades and businesses under common control 

shall constitute a single Employer as provided under ERISA Section 4001(b). Further, 

the term Employer refers to both Old Employers and New Employers (as defined in 

Sections 2.2(a) and 2.2(b), respectively) unless otherwise indicated. 

Section 2. CALCULATION OF WITHDRAWAL LIABILITY

 

Section 2.1 Effective Date

The amount of the unfunded vested benefits allocable to an Employer who withdraws 

from the Plan on or after October 14, 2011 and who is defined as an “Old Employer” 

under Section 2.2(a) shall be determined in accordance with Section 2.3. The amount of 

the unfunded vested benefits allocable to an Employer who withdraws from the Plan on 

or after October 14, 2011 and who is defined as a “New Employer” under Section 2.2(b) 

shall be determined in accordance with Section 2.4. The amount of unfunded vested 

benefits allocable to an Employer who withdraws from the Plan at any time before 

October 14, 2011 shall be determined in accordance with Section 2 of this Appendix E 

as in effect on October 13, 2011. 

Section 2.2 Definitions

 (a) Old Employer means any Employer who had an obligation to contribute to the 

Plan for any period prior to October 14, 2011 and all other trades or businesses 

under common control with said Employer at any time such that together they 

constituted a single employer within the meaning of Section 4001(b)(1) of ERISA, 

29 U.S.C. § 1301(b)(1), and the regulations promulgated thereunder. The term 

“Old Employer” includes an Employer and all other trades or businesses who 

withdrew from the Plan prior to October 14, 2011. 

 (b) New Employer means any Employer who satisfies either of the conditions set 

forth in paragraphs (1) or (2) below: 

 

 (1) The Employer has never been an Old Employer or a trade or business 

under common control with an Old Employer at any time such that 

together they constituted a single employer within the meaning of Section 

4001(b)(1) of ERISA, 29 U.S.C. § 1301(b)(1), and the regulations 

promulgated thereunder; or 

(2) To the extent the Employer first had an obligation to contribute to the Plan 

before October 14, 2011 or has ever been considered an Old Employer, 

the Employer has completely satisfied all withdrawal liability related to its 

past participation in a lump sum or has provided the Pension Fund with a 

bond issued by a corporate surety company that is an acceptable surety 

for purposes of ERISA section 412, or an amount held in escrow by a 

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bank or similar financial institution satisfactory to the Pension Fund for the 

full amount of the outstanding withdrawal liability. 

(3) An Employer satisfying paragraph (1) of this subsection shall be a New 

Employer on the date its obligation to contribute to the Plan begins. An 

Employer satisfying paragraph (2) of this subsection shall cease being an 

Old Employer and shall become a New Employer on the date all of the 

conditions specified in paragraph (2) are met. 

 (4) An Old Employer who is or may be obligated under Section 4204 of 

ERISA, 29 U.S.C. § 1384, as a seller or purchaser, including without 

limitation the bonding or escrow requirements of Sections 4204(a)(1)(B) 

and 4204(a)(3) of ERISA, 29 U.S.C. §§ 1384(a)(1)(B) and 1384(a)(3), as 

well as the liability provisions of Section 4204(a)(1)(C) and 4204(a)(2), 29 

U.S.C. §§ 1384(a)(1)(C) and 1384(a)(2), remains subject to those 

obligations notwithstanding the fact that the Old Employer becomes a 

New Employer. 

 (c) Modified Presumptive Pool means the pool of assets and associated benefit 

liabilities relating to Contributions from Old Employers. 

 (d) Direct Attribution Pool means the pool of assets and associated benefit 

liabilities relating to New Employer Contributions. 

 (e) New Employer Contributions means contributions made by New Employers 

which are attributable to Participants’ service with such Employer for periods 

during which the Employer qualifies as a New Employer under Section 2.2(b) 

plus contributions made by an Old Employer during the Plan Year in which such 

Old Employer becomes a New Employer. 

 (f) Modified Presumptive Pool Unfunded Vested Benefits means all unfunded 

vested benefits under the Plan minus the Direct Attribution Pool Unfunded 

Vested Benefits minus the sum of all New Employer’s Directly Attributable 

Unfunded Vested Benefits as calculated under Section 2.4(b). 

 (g) Direct Attribution Pool Unfunded Vested Benefits means all unfunded vested 

benefits in the Direct Attribution Pool as calculated in Section 2.4(e). 

(h) Plan Year means the calendar year beginning and including January 1st through 

and including December 31st. 

(i) The definitions applicable to the Appendix E include all definitions stated in 

Article I and other definitions of the Pension Plan, except to the extent those 

definitions are contrary to those expressly stated in this Appendix E. 

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Section 2.3 Calculation of Withdrawal Liability of an Old Employer

 The amount of the unfunded vested benefits allocable to an Old Employer who withdraws from 

the Plan shall be the product of: 

 (a) an amount equal to: 

 (1) the Modified Presumptive Pool Unfunded Vested Benefits as of the end of 

the Plan Year preceding the Plan Year in which the Old Employer 

withdraws; less 

 (2) the sum of the value as of such date of all outstanding claims for 

withdrawal liability of Old Employers which can reasonably be expected to 

be collected, with respect to Old Employers withdrawing before such Plan 

Year; multiplied by 

 (b) a fraction: 

 (1) the numerator of which is the total amount required to be contributed 

under the Plan by the Old Employer for the last 10 Plan Years ending 

before the date on which the Old Employer withdraws; and 

 (2) the denominator of which is the total amount contributed under the Plan 

by all Old Employers for the last 10 Plan Years ending before the date on 

which the Old Employer withdraws, increased by the amount of any Old 

Employer Contributions owed with respect to earlier periods which were 

collected in those Plan Years, and decreased by any amount contributed 

by an Old Employer who withdrew from the Plan during those Plan Years; 

Section 2.4 Calculation of Withdrawal Liability of a New Employer 

 (a) New Employer’s Unfunded Vested Benefit Allocation. The amount of the 

unfunded vested benefits allocable to a New Employer who withdraws from the 

Plan shall be the sum of: 

 

 (1) the New Employer’s Unfunded Vested Benefits Attributable to Its 

Participants’ Service (determined as of the end of the Plan Year 

preceding the Plan Year in which the New Employer withdraws, and as 

described in subsection (b) below); and 

 (2) the New Employer’s Proportionate Share of the Direct Attribution Pool’s 

Unfunded Vested Benefits (determined as of the end of the Plan Year 

preceding the Plan Year in which the New Employer withdraws) as 

described in subsection (f) below. 

 (b) New Employer’s Unfunded Vested Benefits Attributable to Its Participants’ 

Service. A New Employer’s Unfunded Vested Benefits Attributable to Its 

Participants’ Service is equal to the value of nonforfeitable benefits under the 

Plan which are attributable to Participants’ service with such New Employer 

(including service based upon contributions deemed New Employer 

Contributions under Section 2.2(b)) decreased by the New Employer’s Share of 

the Direct Attribution Plan Assets which is allocated to the New Employer under 

Section 2.4(d). The amount equal to the value of nonforfeitable benefits under 

the Plan which are attributable to a Participants’ service with such New Employer 

shall be determined by multiplying the Participant’s nonforfeitable benefits by a 

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fraction the numerator of which is the Participant’s Contributory Service Credit 

earned with such New Employer (including Contributory Service Credit earned 

with an Old Employer during the Plan Year in which such Old Employer becomes 

a New Employer) and the denominator of which is the Participant’s total years of 

Contributory Service Credit earned with all Employers. To the extent that the 

New Employer’s Unfunded Vested Benefits Attributable to Its Participants’ 

Service is less than zero, the New Employer’s Directly Attributable Unfunded 

Vested Benefits shall be deemed to be zero. 

 (c) Direct Attribution Pool Plan Assets. The value of Direct Attribution Pool Plan 

Assets determined under this Section 2.4(c) (a portion of which is to be allocated 

to the New Employer as provided under Section 2.4(d)) is the sum of: all New 

Employer Contributions made for each Plan Year preceding the Plan Year in 

which the New Employer withdraws, plus all withdrawal liability payments made 

by New Employers for withdrawals occurring as New Employers for each Plan 

Year preceding the Plan Year in which the New Employer withdraws, plus 

investment earnings or losses for each Plan Year preceding the Plan Year in 

which the New Employer withdraws attributable as provided under Section 

2.4(c)(1), minus administrative expenses for each Plan Year preceding the Plan 

Year in which the New Employer withdraws attributable as provided under 

Section 2.4(c)(2), minus all benefit payments which are made for each Plan Year 

preceding the Plan Year in which the New Employer withdraws that are 

attributable to service with New Employers as provided under Section 2.4(c)(3). 

 (1) Investment earnings or losses attributable to the Direct Attribution Plan 

Pool Plan Assets shall be calculated for each Plan Year by applying the 

rate of return or loss on all Plan assets for each Plan Year beginning after 

October 14, 2011 and ending with the last day of the Plan Year prior to 

the Plan Year of the New Employer’s withdrawal to the amount of Direct 

Attribution Plan Pool Plan Assets (after the application of paragraphs (2) 

and (3) of this subsection (c)) as of the last day of the Plan Year 

preceding the Plan Year in which the New Employer withdraws. For the 

Plan Year that includes October 14, 2011, the rate of return or loss shall 

be applied proportionate to the period after October 14, 2011 as 

compared to the entire Plan Year. 

 (2) Administrative expenses attributable to the Direct Attribution Pool Plan 

Assets shall be calculated for each Plan Year beginning after October 14, 

2011 and ending with the last day of the Plan Year prior to the Plan Year 

of the New Employer’s withdrawal by multiplying the total Plan 

administrative expenses for a Plan Year by a fraction the numerator of 

which is the total number of Participants whose last Contributory Service 

Credit earned under the Plan as of the last day of the Plan Year was 

earned with a New Employer and the denominator is the total number of 

Participants in the Plan as of the last day of the Plan Year. For the Plan 

Year that includes October 14, 2011, the administrative expenses shall be 

applied proportionate to the period after October 14, 2011 as compared to 

the entire Plan Year. 

(3) Benefit payments that are attributable to service with New Employers 

shall mean the pro rata portion of a Participant’s benefits determined by 

multiplying the benefit payments by a fraction the numerator of which is 

the Participant’s years of Contributory Service Credit earned with New 

Employers (including a Participant’s Contributory Service Credit with an 

Old Employer during the Plan Year in which such Participant’s Old 

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Employer becomes a New Employer) and the denominator of which is the 

Participant’s total years of Contributory Service Credit earned with all 

Employers. 

 (d) New Employer’s Share of Direct Attribution Pool Plan Assets. The New 

Employer’s Share of Direct Attribution Pool Plan Assets shall be determined by 

multiplying the value of the Direct Attribution Pool Plan Assets determined under 

Section 2.4(c) by the fractions in subparagraphs (d)(1) and (d)(2) of this 

subsection - 

 (1) The first fraction – 

(i) the numerator of which is the value of nonforfeitable 

benefits (including such benefits attributable to 

contributions deemed New Employer Contributions under 

Section 2.2(b)) which are attributable to Participants’ 

service with all New Employers who have an obligation to 

contribute under the Plan in the Plan Year preceding the 

Plan Year in which the New Employer withdraws, and 

(ii) the denominator of which is the value of all nonforfeitable 

benefits (including such benefits attributable to 

contributions deemed New Employer Contributions under 

Section 2.2(b)) attributable to all New Employers under the 

Plan; and 

(2) The second fraction – 

(i) the numerator of which is the value of the nonforfeitable 

benefits (including such benefits attributable to 

contributions deemed New Employer Contributions under 

Section 2.2(b)) which are attributable to the New Employer, 

and 

(ii) the denominator of which is the value of the nonforfeitable 

benefits (including such benefits attributable to 

contributions deemed New Employer Contributions under 

Section 2.2(b)) which are attributable to service with all 

New Employers who have an obligation to contribute under 

the Plan in the Plan Year preceding the Plan Year in which 

the New Employer withdraws. 

 (e) Direct Attribution Pool’s Unfunded Vested Benefits. The amount of the Direct 

Attribution Pool’s Unfunded Vested Benefits for a Plan Year preceding the Plan 

Year in which a New Employer withdraws is equal to: 

 (1) an amount equal to – 

(i) The value of all nonforfeitable benefits attributable to 

service with all New Employers (including such benefits 

attributable to contributions deemed New Employer 

Contributions under Section 2.2(b)) under the Plan at the 

end of such Plan Year; reduced by 

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 (ii) The value of nonforfeitable benefits under the Plan at the 

end of such Plan Year which are attributable to 

Participants’ service with New Employers (including such 

benefits attributable to contributions deemed New 

Employer Contributions under Section 2.2(b)) who have an 

obligation to contribute under the Plan for such Plan Year; 

reduced by 

 (2) an amount equal to – 

(i) The value of the Direct Attribution Pool Plan Assets as of 

the end of such Plan Year as determined under Section 

2.4(c), reduced by 

(ii) The value of the Direct Attribution Pool Plan Assets as of 

the end of such Plan Year as determined under Section 

2.4(c) multiplied by the fraction in Section 2.4(d)(1); 

reduced by 

 (3) The value of all outstanding claims for withdrawal liability which 

can reasonably be expected to be collected with respect to New 

Employers withdrawing before the Plan Year preceding the Plan 

Year in which the New Employer withdraws. 

If the Direct Attribution Pool’s Unfunded Vested Benefits is less than zero, it shall 

be deemed to be zero. 

 (f) New Employer’s Proportionate Share of the Direct Attribution Pool’s 

Unfunded Vested Benefits. The New Employer’s Proportionate Share of the 

Direct Attribution Pool Unfunded Vested Benefits described in Section 2.4(a)(2) 

for a Plan Year is the amount determined under Section 2.4(e) multiplied by a 

fraction- 

 (1) the numerator of which is the value of the nonforfeitable benefits 

(including such benefits attributable to contributions deemed New 

Employer Contributions under Section 2.2(b)) which are attributable to the 

New Employer, and 

(2) the denominator of which is the value of the nonforfeitable benefits 

(including such benefits attributable to contributions deemed New 

Employer Contributions under Section 2.2(b)) which are attributable to 

service with all New Employers who have an obligation to contribute 

under the Plan in the Plan Year preceding the Plan Year in which the 

New Employer withdraws. 

Section 2.5 Effect of Complete Withdrawal of All Old Employers 

If all Old Employers completely withdraw from the Pension Fund, the Direct Attribution 

Pool and the Modified Presumptive Pool shall be discontinued and the amount of 

unfunded vested benefits allocable to an Employer that withdraws from the Pension 

Fund at any time beginning with the first day of the Plan Year in which all Old Employers 

cease to be obligated to contribute to the Fund shall be determined in accordance with 

Section 2 of this Appendix E as in effect on October 13, 2011 (the “Pre-2011 

Methodology”). 

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Section 2.6 Effect of Complete Withdrawal of All New Employers

If in any Plan Year all New Employers completely withdraw from the Pension Fund, the 

Direct Attribution Pool and the Modified Presumptive Pool shall be discontinued and the 

amount of unfunded vested benefits allocable to an Employer that withdraws in the 

following Plan Year shall be determined in accordance with Section 2 of this Appendix E 

as in effect on October 13, 2011 (the “Pre-2011 Methodology”). 

Section 2.7 Allocation of Reallocation Liability in the Event of Mass Withdrawal 

 In the event that, within the meaning of ERISA§ 4219(c)(1)(D), every Employer 

withdraws from the Plan or substantially all Employers withdraw from the Plan pursuant 

to an arrangement to withdraw (thus triggering a “Mass Withdrawal”), any Employers 

who are subject to Mass Withdrawal reallocation liability within the meaning of 29 C.F.R. 

§ 4219.2(b)(2): 

(a) Shall have their initial allocable share of such reallocation liability determined as 

follows: 

 Initial allocable share. Except as otherwise provided in subsection (c) below, an 

Employer’s initial allocable share shall be equal to the product of the plan’s 

unfunded vested benefits to be reallocated, multiplied by a fraction-- 

(1) The numerator of which is the sum of the Employer’s initial withdrawal 

liability and the Employer’s redetermination liability, if any; and 

(2) The denominator of which is the sum of all initial withdrawal liabilities and 

all the redetermination liabilities of all Employers liable for reallocation 

liability; and 

(b) Shall have their allocation of unassessable amounts determined as follows: 

Allocation of unassessable amounts. If after computing each Employer’s initial 

allocable share of unfunded vested benefits related to the Mass Withdrawal, the 

Trustees determine that any portion of an Employer’s initial allocable share is 

unassessable as withdrawal liability because of the limitations in ERISA § 4225, 

the Trustees shall allocate any such unassessable amounts among all other 

liable Employers. This allocation shall be done by prorating the unassessable 

amounts on the basis of each such Employer’s initial allocable share. No 

Employer shall be liable for unfunded vested benefits allocated under subsection 

(a) or this subsection (b) to another Employer that are determined to be 

unassessable or uncollectible subsequent to the Trustees’ demand for payment 

of reallocation liability. 

(c) Special rule for certain Employers with no or reduced initial withdrawal 

liability due to application of the free-look or de minimis rules. If an 

Employer has no initial withdrawal liability because of the application of the freelook rule in ERISA § 4210, then, in computing the fraction prescribed in 

subsection (b), the Plan shall use the Employer’s allocable share of unfunded 

vested benefits, determined under ERISA § 4211 at the time of the Employer’s 

withdrawal and adjusted in accordance with ERISA § 4225, if applicable. If an 

Employer’s initial withdrawal liability was reduced pursuant to ERISA § 4209 (a) 

or (b) and the Employer is not liable for de minimis amounts, then, in computing 

the fraction prescribed in subsection (b), the Plan shall use the Employer’s 

allocable share of unfunded vested benefits, determined under ERISA § 4211 at 

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the time of the Employer’s withdrawal and adjusted in accordance with ERISA § 

4225, if applicable. 

(d) Special rule for determining the Initial withdrawal liability of certain New 

Employers. 

(1) In the event of a Mass Withdrawal occurring on or before the end of the 

second full Plan year after the date on which a New Employer has 

qualified for New Employer status by meeting the requirements of Para. 

2.2(b)(2) of this Appendix E and satisfying its withdrawal liability related to 

its past participation in the Plan, such New Employer’s initial withdrawal 

liability (for purposes of any allocations of reallocation liability to be made 

under subsection (a), (b) and (c) of this section 2.7) shall be equal to the 

greater of (A) the amount of withdrawal liability that the Employer is 

deemed to have satisfied in order to qualify as a New Employer, and (B) 

the New Employer’s initial withdrawal liability upon its actual withdrawal 

from the Plan in connection with such Mass Withdrawal. 

(2) In the event of a Mass Withdrawal occurring after the end of the second 

full Plan year after the date on which a New Employer has qualified for 

New Employer status by meeting the requirements of Para. 2.2(b)(2) of 

this Appendix E and satisfying its withdrawal liability related to its past 

participation in the Plan, any such New Employer’s initial withdrawal 

liability (for purposes of any allocations of reallocation liability to be made 

under subsection (a), (b) and (c) of this section 2.7) shall be equal to the 

amount (if any) of the New Employer’s initial withdrawal liability upon its 

actual withdrawal from the Plan in connection with such Mass Withdrawal. 

Section 2.8 Trustee Determinations 

The determinations pursuant to Section 2 of this Appendix E and Section 4202 of ERISA 

shall be based upon authorization by the Board of Trustees, except that any such 

determination may be initially authorized between board meetings by action of at least 

one Employer Trustee and at least one Employee Trustee (which action is to be 

recorded in a written document) provided such action is ratified by the Board of Trustees 

at its next meeting. 

Section 3. SPECIAL RULES WITH RESPECT TO EMPLOYER CONTRIBUTIONS

For purposes of determining the denominator defined at Sections 2.3(b)(2), 2.4(d)(2), 

2.4(e)(3)(ii), and 2.4(f)(2), the amount of Employer Contributions “made” or “contributed” with 

respect to a Plan Year shall be based upon the amount of Employer Contributions reported on 

the Form 5500 filed by the Plan for such Plan Year. 

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Section 4. ACTUARIAL ASSUMPTIONS

The actuarial assumptions used to determine the unfunded vested benefits of the Plan shall be 

determined by the Plan actuary based on his/her best estimate and in accordance with ERISA § 

4213. 

Section 5. PAYMENT OF WITHDRAWAL LIABILITY

 (a) The amount of payment shall be calculated as follows: 

(1) Except as provided in (2) and (4) below, and in (c) and (d) below; the Employer 

shall pay the amount determined under Section 2 of this Appendix E 

appropriately adjusted for partial withdrawal and de minimis reductions of 

$50,000 or less as provided in ERISA Sections 4206 and 4209(a), over the 

period of years required to amortize the amount in level annual payments 

determined under (3) below, calculated as if the first payment were made on the 

first day of the Plan year following the Plan Year in which the withdrawal occurs 

and as if each subsequent payment were made on the first day of each 

subsequent Plan Year. Such amortization period shall be determined based on 

actuarial assumptions used in the most recent actuarial valuation of the Plan. 

(2) If the amortization period described in (1) above exceeds 20 years, the liability of 

the Employer shall be limited to the first 20 annual payments determined in (3) 

below. 

(3) Except as provided in (5) below, the amount of each annual payment shall be the 

product of: 

 (A) the average number of weeks of contributions for the three consecutive 

Plan Years, during the 10 consecutive Plan Years ending before the date 

of withdrawal, in which the Employer had an obligation to contribute to the 

Plan for the greatest number of weeks of contributions; and 

(B) the highest contribution rate at which the Employer had an obligation to 

contribute to the Plan during the 10 Plan Years ending with the Plan Year 

in which the withdrawal occurs. 

 (4) In the event of a withdrawal of all or substantially all Employers which contribute 

to the Plan (as described in Section 4219(c)(1)(D) of ERISA) (2) above shall not 

apply, and total unfunded vested benefits shall be allocated among all such 

Employers according to regulations established by the Pension Benefit Guaranty 

Corporation (the “PBGC”). 

 (5) As described in Section 4219(c)(1)(E) of ERISA, the amount of annual payment 

may be adjusted in the event of a partial withdrawal. 

(b) Withdrawal liability shall be payable monthly, according to the schedule determined by 

the Trustees. Payment of withdrawal liability shall commence no later than 60 days after 

demand is made therefore by the Trustees. 

(c) An Employer shall be entitled to prepay his withdrawal liability and accrued interest 

without penalty. 

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(d) Non-payment by an Employer of any amounts due shall not relieve any other Employer 

from its obligation to make payment. In addition to any other remedies to which the 

parties may be entitled, an Employer shall be obligated to pay interest on withdrawal 

liability owed to the Fund from the date when the payment was due to the date when the 

payment is made together with all expenses of collection incurred by the Trustees, 

including but not limited to attorneys’ fees and such fees for late payment as the 

Trustees determine and as permitted by law. The interest payable by an Employer, in 

accordance with the preceding sentence, shall be computed and charged to the 

Employer at an annualized interest rate equal to two percent (2%) plus the prime interest 

rate established by JPMorgan Chase Bank, NA (New York, New York) for the fifteenth 

(15th) day of the month for which the interest is charged. Any judgment against an 

Employer for withdrawal liability payments owed to this Fund, shall include the greater of 

(a) a doubling of interest computed and charged in accordance with this section or (b) 

single interest computed and charged in accordance with this section plus liquidated 

damages in the amount of 20% of the unpaid withdrawal liability payments. The interest 

rate after entry of a judgment against an Employer for withdrawal liability shall be due 

from the date the judgment is entered until the date of payment, shall be computed and 

charged to the Employer on the entire judgment balance at an annualized interest rate 

equal to two percent (2%) plus the prime interest rate established by JPMorgan Chase 

Bank, NA (New York, New York) for the fifteenth (15th) day of the month for which the 

interest is charged and shall be compounded annually. 

(e) In the event of a default, the outstanding amount of the withdrawal liability shall 

immediately become due and payable. A default occurs if: 

(1) the Employer fails to make, when due, any payments of withdrawal liability, if 

such failure is not cured within 60 days after such Employer receives written 

notification from the Fund of such failure; or 

(2) the Trustees, in their discretion, deem the Fund insecure as a result of any of the 

following events with respect to the Employer: 

(A) the Employer’s insolvency, or any assignment by the Employer for the 

benefit of creditors, or the Employer’s calling of a meeting of creditors for 

the purpose of offering a composition or extension to such creditors, or 

the Employer’s appointment of a committee of creditors or liquidating 

agent, or the Employer’s offer of a composition or extension to creditors, 

(B) the Employer’s failure or inability to pay its debts as they become due; 

 (C) the commencement of any proceedings by or against the Employer (with 

or without the Employer’s consent) pursuant to any bankruptcy or 

insolvency laws or any laws relating to the relief of debtors, or the 

readjustment, composition or extension of indebtedness, or to the 

liquidation, receivership, dissolution or reorganization of debtors; 

(D) the withdrawal, revocation or suspension, by any governmental or judicial 

entity or by any national securities exchange or association, of any 

charter, license, authorization, or registration required by the Employer in 

the conduct of its business; 

 (E) the cessation of all or substantially all of an Employer’s operations, or the 

liquidation of all or substantially all of an Employer’s assets; 

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 (F) the existence of a delinquency in any amount owed to the Pension Fund 

including, without limitation, the payment of contributions or prior 

withdrawal liability; or 

(G) any other event or circumstance which in the judgment of the Trustees 

materially impairs the Employer’s credit worthiness or the Employer’s 

ability to pay its withdrawal liability when due. 

Section 6. RESOLUTION OF DISPUTES

Any dispute concerning whether a complete or partial withdrawal has occurred, concerning the 

amount and/or payment of any withdrawal liability or any other matter pertaining to ERISA 

Sections 4201 through 4129 and ERISA Section 4225 will be resolved in the following manner: 

(a) REVIEW BY THE FUND: If, within ninety (90) days after an Employer receives a 

notice and demand for payment of withdrawal liability from the Fund, such 

Employer in writing to the Fund (i) requests a review of any specific matter 

relating to the determination of such liability and the schedule of payments, (ii) 

identifies any inaccuracy in the determination of the amount of the unfunded 

vested benefits allocable to the Employer, or (iii) furnishes any additional relevant 

information to the Fund, a review may be conducted by the Withdrawal Liability 

Review Committee. The Withdrawal Liability Review Committee consists of 

members of Staff of the Fund selected by the Executive Director of the Fund. The 

Withdrawal Liability Review Committee is responsible for the review of any 

matter pertaining to withdrawal liability which is timely made and the 

recommendation for decisions on such matters to the Trustees. This Committee 

acts by a majority of its members present and voting in making recommendations 

regarding the action which the Trustees may follow in determining questions of 

withdrawal liability. The decision of the Trustees may be communicated in writing 

to the Employer including the basis for the decision and the reason(s) for any 

change in the determination of an Employer’s liability or schedule for liability 

payments. 

(b) ARBITRATION: Within 60 days following the earlier of receipt of a written 

decision from the Trustees in accordance with subparagraph (a) above, or 120 

days after an Employer has made a timely written request for a review of such 

withdrawal liability matters specified above, either the Employer or the Fund may 

initiate an arbitration proceeding as provided herein. 

(1) Manner of Initiation: Arbitration is initiated by written notice to the Chicago 

Regional Office of the American Arbitration Association (“AAA”) with 

copies to the Fund (or if initiated by the Fund to the Employer) and the 

bargaining representative (if any) of the affected employees of the 

Employer. Such arbitration will be conducted, except as otherwise 

provided in these rules, in accordance with the “Multiemployer Pension 

Plan Arbitration Rules” (the “AAA Rules”) administered by the AAA. The 

initial filing fee is to be paid by the party initiating the arbitration 

proceeding. Arbitration is timely initiated if received by the AAA along with 

the initial filing fee within the time period prescribed by ERISA Section 

4221(a)(1). 

(2) Venue: All arbitrations under this Section shall be conducted in Chicago, 

Illinois. Any actions pursuant to ERISA §4221(b)(2), 29 U.S.C. 

§1401(b)(2), to enforce, vacate or modify any awards entered in such 

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arbitrations shall be filed in the United States District Court for the 

Northern District of Illinois, Eastern Division. 

(3) Preliminary Statements: The Employer shall file with the AAA and serve 

upon the Fund at least 21 days prior to the hearing a Preliminary 

Statement. The Plan shall file with the AAA and serve upon the Employer 

a responsive Preliminary Statement at least seven days prior to the 

hearing. Each preliminary statement shall contain: (1) a statement of the 

factual and legal contentions of the party with respect to each of the 

issues before the arbitrator; (2) a list identifying the name, address, and 

occupation of each witness to be called by the party at the hearing and a 

specific description of the matters upon which the witness will testify; (3) a 

list describing each exhibit which the party will offer in evidence; and (4) a 

statement of the relief sought by the party. 

(c) LITIGATION: Section 43(c) of the AAA Rules shall not apply. Within 30 days after 

the issuance of a final award by an arbitrator in accordance with these 

procedures, any party to such arbitration proceeding may bring an action in an 

appropriate United States district court to enforce, modify, or vacate the 

arbitration award, in accordance with ERISA Sections 4221 and 4301. 

Section 7. CONSTRUCTION INDUSTRY EXEMPTION

ERISA section 4203(b) shall apply to those Employers described in ERISA section 4203(b)(1). 

Section 8. FIVE-YEAR FREE LOOK RULE

(a) Pursuant to ERISA Section 4210, 29 U.S.C. §1390, an employer who withdraws from 

the Plan in a complete or partial withdrawal is not liable to the Plan if the Employer: 

(1) first had an obligation to contribute to the Plan after September 26, 1980; 

(2) had an obligation to contribute to the Plan for no more than 5 consecutive plan 

years preceding the date of its withdrawal; 

(3) was required to make contributions to the Plan for each such plan year in an 

amount equal to less than 2 percent of the sum of all employer contributions 

made to the Plan for each such year as reported on the Form 5500 filed by the 

Plan for each such year; and 

(4) has never avoided withdrawal liability because of the application of this Section 8 

of Appendix E. 

(b) Paragraph (a) of this section shall apply to an Employer with respect to the plan only if - 

(1) the plan is not a plan which primarily covers employees in the building and 

construction industry; 

(2) the plan makes this exception applicable (as it has in paragraph (a) of this 

section); 

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(3) the plan provides (as it does in Appendix G, section (a)(5)) that the reduction 

under §411(a)(3)(E) of the Internal Revenue Code of 1954 applies with respect to 

the employees of the Employer; and 

(4) the ratio of the assets of the plan for the plan year preceding the first plan year 

for which the Employer was required to contribute to the plan to the benefit 

payments made during that plan year was at least 8 to 1. 

Section 9. ADJUSTMENT OF LIABILITY FOR WITHDRAWAL SUBSEQUENT TO PARTIAL 

WITHDRAWAL

The amount of credit an Employer receives for payment of a prior year’s partial withdrawal 

liability is determined in accordance with applicable regulations (29 CFR §4206). Pursuant to 29 

CFR §4206, the amortization period defined at 29 CFR §4206.9 shall be ten years. A New 

Employer shall not be entitled to credit for any prior withdrawal liability incurred as an Old 

Employer. 

Section 10. NO REDUCTION OR WAIVER OF LIABILITY FOR NEW EMPLOYER

An Employer shall not be entitled to a reduction or waiver of withdrawal liability under 

ERISA sections 4207 or 4208 based upon the payment of withdrawal liability as an Old 

Employer for its resumption or continuation of participation in the Pension Fund as a 

New Employer. 

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APPENDIX F. RULES PERTAINING TO HOURLY RATES FOR CONSTRUCTION INDUSTRY 

PARTICIPANTS 

Section 1. CONSTRUCTION AND BUILDING MATERIALS INDUSTRY 

 DEFINED 

The construction or building materials industry for purposes of this Appendix shall be 

defined as all Contributing Employers in the construction industry relating to the 

contracting or subcontracting of work to be done at the site of the construction, 

alteration, painting, or repair of a building, structure, highway, excavation, or other work, 

and(or) whose principal business is the supply and(or) transportation to and from such 

job sites of material, equipment or supplies to be utilized by an employee performing 

such construction work. 

The definition in the preceding paragraph applies only for the purpose of this Appendix F 

and does not apply for any other purpose including, without limitation, the definition of 

“building and construction industry” for purposes of ERISA § 4203 (b). 

Section 2. HOURLY CONTRIBUTION OBLIGATION 

(a) Any Collective Bargaining Agreement between a Union and a 

Contributing Employer in the construction or building materials industry 

with an effective date on or after September 1, 1985 may require hourly 

Contributions as set forth in (b) below. 

(b) SCHEDULE B OF BENEFIT CLASSES AND REQUIRED MINIMUM 

HOURLY CONTRIBUTION RATES

 Maximum 

 Twenty-Year Service 

 Pension Benefits 

 Employer Hourly 

 Benefit Ages Contribution 

 Class 57 58 59 60 65 Plus Rates 

 to 

 64 

 14 625 625 625 775 775 $1.75 

15 

 (A) 700 750 800 900 900 $1.90 

(B) 700 750 800 900 900 $2.05 

(C) 700 750 800 900 900 $2.20 

 16 

 (A) 700 750 800 900 1100 $2.45 

(B) 700 750 800 900 1100 $2.55 

(C) 700 750 800 900 1100 $2.65 

 17a 

 (A) 700 750 800 900 1100 $2.85 

(B) 700 750 800 900 1100 $3.15 

(C) 700 750 800 900 1100 $3.40 

(D) 700 750 800 900 1100 $3.70 

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 Maximum 

 Twenty-Year Service 

 Pension Benefits 

 Employer Hourly 

 Benefit Ages Contribution 

 Class 57 58 59 60 65 Plus Rates 

 to 

 64 

 17b 

 (A) 700 750 800 900 1100 $2.85 

(B) 700 750 800 900 1100 $3.15 

(C) 700 750 800 900 1100 $3.45 

(D) 700 750 800 900 1100 $3.90 

 18 

 (A) 700 750 800 900 1100 $3.80* 

(A) 700 750 800 900 1100 $3.90* 

(B) 700 750 800 900 1100 $4.25 

(C) 700 750 800 900 1100 $4.70 

(D) 700 750 800 900 1100 $4.95 

(E) 700 750 800 900 1100 $5.20 

 18+ 

 (A) 700 750 800 900 1100 $4.40 

(B) 700 750 800 900 1100 $4.85 

(C) 700 750 800 900 1100 $5.10 

(D) 700 750 800 900 1100 $5.35 

Benefit Class 18+ of a Participant must be based upon the Continuous 

Contribution Method and not upon the Non-Continuous Contribution 

Method or any other method. 

* If the Bargaining Unit is moving from Benefit Class 17a to Benefit Class 18, the hourly 

contribution rate for the first year is $3.80; otherwise it is $3.90. 

(c) If a Collective Bargaining Agreement requires a Contributing Employer to 

make hourly Contributions, then an hourly Contribution is required to be 

made on an Employee’s behalf for each hour that he performs one Hour 

of Service. 

(d) If a Collective Bargaining Agreement requires a Contributing Employer to 

make hourly Contributions, then an Employee shall earn one hour of 

Contributory Service for each hour of Contributions required to be made 

on his behalf. 

(e) If a Collective Bargaining Agreement requires a Contributing Employer to 

make hourly Contributions, then an Employee shall earn one hour of 

Vesting Service for each hour of Contributions required to be made on his 

behalf. 

(f) Self-Contributions made under Article I, Section 1.08 for periods during 

which the Collective Bargaining Agreement covering the Employee 

requires hourly Contributions shall be limited to 40 hours of SelfContributions per week. 

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Section 3. RULES FOR DETERMINING SERVICE CREDIT WHEN HOURLY 

 CONTRIBUTIONS ARE REQUIRED 

(a) For purposes of Article I, Section 1.10, 30 hours of Contributions required 

to be made on behalf of a Participant shall be considered equivalent to 

one week of Contributions. 

(b) For any calendar year during which a Participant has had an hour of 

Contributions required to be made on his behalf, the number of hours of 

Vesting Service due to employment under a Collective Bargaining 

Agreement requiring hourly Contributions during such year divided by 600 

shall be added to the sum determined in Article I, Section 1.40 for the 

purpose of determining whether he has had a Year of Participation. 

(c) For any calendar year during which a Participant has had an hour of 

Contributions required to be made on his behalf and during which he has 

at least a Year of Participation, the number of hours of Contributory 

Service during such year divided by 1,200 shall be added to the sum 

determined in Article I, Section 1.10(a)(2)(B) for the purpose of 

determining his Contributory Service Credit for that year. 

(d) For any calendar year during which a Participant has had an hour of 

Contributions required to be made on his behalf, the number of hours of 

Vesting Service due to employment under a Collective Bargaining 

Agreement requiring hourly Contributions during such year divided by 300 

shall be added to the sum determined in Article I, Section 1.23(b) for the 

purpose of determining whether he has had a One-Year Break-in-Service. 

(e) For any calendar year during which a Participant has had an hour of 

Contributions required to be made on his behalf, the number of hours of 

Vesting Service due to employment under a Collective Bargaining 

Agreement requiring hourly Contributions during such year divided by 600 

shall be added to the sum determined in Article I, Section 1.37 for the 

purpose of determining whether he has earned a Vesting Service Year. 

Section 4. DETERMINATION OF THE BENEFIT CLASS OF A PARTICIPANT 

 WITH HOURLY CONTRIBUTIONS 

(a) Continuous Contribution Method: The Benefit Class of a Participant who 

has had Continuous Contributions during his last 5 calendar years shall 

be the Benefit Class corresponding to the rate of his last weekly 

Continuous Contribution, his last daily Continuous Contribution in effect 

for at least his last 5 days of Contributory Service, or his last hourly 

Continuous Contribution in effect for at least his last 30 hours of 

Contributory Service. 

(b) Non-Continuous Contribution Method: The Benefit Class of a Participant 

who has not had Continuous Contributions shall be determined by the 

Non-Continuous Contribution Method described in Article III, Section 

3.03(b). For the purpose of determining a Participant’s Benefit Class 

under the Non-Continuous Contribution Method, 30 hours of 

Contributions shall be equivalent to one week of Contributions and the 

dollar amount shall be the equivalent weekly Contribution. 

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APPENDIX G. ACCEPTANCE POLICIES FOR BARGAINING UNITS 

The Acceptance Policies in this Appendix G have been adopted by the Board of 

Trustees for Bargaining Units that have not had prior coverage under this Pension Fund. 

These policies make it possible for a Bargaining Unit Employee who has never been 

covered by a Collective Bargaining Agreement (as defined in Article I, Section 1.06) to 

earn Vesting Service, Non-Contributory Service Credit and Contributory Service Credit 

for his past employment with the Contributing Employer that begins making 

Contributions on his behalf. 

(a) GENERAL POLICY APPLICABLE TO A BARGAINING UNIT: 

A Bargaining Unit may be accepted under this General Policy subject to 

the following conditions: 

(1) BENEFIT CLASS: The Bargaining Unit must be covered by a 

Collective Bargaining Agreement requiring Employer Contributions 

at any Benefit Class under Schedule B. 

(2) AGE AND SERVICE OF EMPLOYEES: The Employees in the 

Bargaining Unit may be any age and have any number of years of 

past employment with the Contributing Employer that becomes 

required to make Employer Contributions to the Pension Fund on 

their behalf. 

(3) EARNING VESTING SERVICE AND NON-CONTRIBUTORY 

SERVICE CREDIT FOR PAST EMPLOYMENT: An Employee 

who is a member of a Bargaining Unit on the “Effective Date of 

Acceptance” (as hereinafter defined), shall earn Vesting Service 

and Non-Contributory Service Credit for his periods of past 

employment according to the following: 

(A) he shall earn Vesting Service for all of his continuous past 

employment with the Contributing Employer that begins 

making Contributions on behalf of the Employees in his 

Bargaining Unit; and 

(B) he shall earn Non-Contributory Service Credit according to 

Article I, Section 1.22(c) for all of his employment with the 

Contributing Employer that begins making Contributions on 

behalf of the Employees in his Bargaining Unit, unless 

such employment was as a manager, supervisor, business 

partner, sole proprietor or business owner with supervisor 

authority. The “Effective Date of Acceptance” of a 

Bargaining Unit is the date Contributions to the Pension 

Fund begin on behalf of Employees who are members of a 

Bargaining Unit accepted under this policy or the 

Alternative Policy in (b), below. 

(C) Non-Contributory Service Credit earned according to 

(a)(3)(B), above, shall be subject to the limitations in Article 

I, Section 1.20(a)(4). 

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An Employee who is on lay-off, sick leave or authorized 

leave of absence on the Effective Date of Acceptance of 

his Bargaining Unit under this policy, shall be eligible to 

earn Vesting Service and Non-Contributory Service Credit 

according to the above. 

(4) EARNING VESTING SERVICE AND CONTRIBUTORY SERVICE 

CREDIT FOR FUTURE EMPLOYMENT: An Employee who is a 

member of a Bargaining Unit accepted under this policy, shall 

earn Vesting Service and Contributory Service Credit for periods 

of future employment according to the benefit eligibility provisions 

of the Pension Plan. 

(5) CANCELLATION OF VESTING SERVICE AND NONCONTRIBUTORY SERVICE CREDIT EARNED: In the event a 

Bargaining Unit either voluntarily or involuntarily withdraws from 

the Pension Fund during the “Five-Year Free Look” period defined 

in Section 8 of Appendix E, the Vesting Service and NonContributory Service Credit earned by an Employee under (a)(3), 

above, shall be canceled. After the “Five-Year Free Look” period 

expires, the provisions of Article I, Section 1.38 shall be applied in 

the event of a Voluntary Withdrawal. 

(6) BENEFIT ELIGIBILITY: The benefit eligibility rules of the Pension 

Plan, including the Break-in-Service rules, shall be used to 

determine whether an Employee in a Bargaining Unit accepted 

under this policy receives any benefit from the Pension Fund, and 

the Forms of Payment provisions of the Pension Plan shall be 

used to determine the manner in which any benefit to be received 

shall be paid. 

(b) ALTERNATIVE POLICY APPLICABLE TO A BARGAINING UNIT THAT 

HAD PRIOR PENSION PLAN COVERAGE FOR ITS MEMBERS: A 

Bargaining Unit whose members have been covered by another pension 

plan may be accepted under this Alternative Policy rather than the 

General Policy stated above, subject to the following conditions: 

(1) BENEFIT CLASS: The Employees in the Bargaining Unit must be 

covered by a Collective Bargaining Agreement requiring Employer 

Contributions under a Schedule B Benefit Class that provides 

benefits comparable to the benefits payable to them by the prior 

pension plan. 

(2) AGE AND SERVICE OF EMPLOYEES: The Bargaining Unit must 

consist of less than 20% of Employees who are at an age greater 

than 55 with 15 or more years of past employment with the 

Contributing Employer that becomes required to make Employer 

Contributions to the Pension Fund on their behalf. 

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(3) EARNING VESTING SERVICE, NON-CONTRIBUTORY 

SERVICE CREDIT AND CONTRIBUTORY SERVICE CREDIT 

FOR PAST EMPLOYMENT: An Employee who is a member of a 

Bargaining Unit on the “Effective Date of Acceptance” (as defined 

in (a)(3), above), shall earn Vesting Service, Non-Contributory 

Service Credit and Contributory Service Credit for periods of past 

employment according to the following: 

(A) he shall earn Vesting Service for all of his continuous past 

employment with the Contributing Employer that begins 

making Contributions on behalf of the Employees in his 

Bargaining Unit; and 

(B) he shall earn Non-Contributory Service Credit according to 

Article I, Section 1.22(c) of the Pension Plan for all of his 

employment with the Contributing Employer required to 

make Contributions on behalf of the Employees in his 

Bargaining Unit, except that, no Non-Contributory Service 

Credit will be earned for: 

(i) employment as a manager, supervisor, business 

partner, sole proprietor or business owner with 

supervisory authority; or 

(ii) employment for which he earns Contributory 

Service Credit according to (b)(3)(C), below. 

(C) he shall earn Contributory Service Credit under this 

Pension Plan for any contributory service credit he had 

earned under the prior pension plan if he had become a 

participant vested under the prior pension plan. 

Non-Contributory Service Credit earned according to 

(b)(3)(B), above, shall be subject to the limitations in Article 

I, Section 1.20(a)(4) of the Pension Plan. 

An Employee who is on lay-off, sick leave, or authorized leave of absence 

on the Effective Date of Acceptance of his Bargaining Unit under this 

policy, shall be eligible to earn Vesting Service, Non-Contributory Service 

Credit and Contributory Service Credit according to the above. 

(4) EARNING VESTING SERVICE AND CONTRIBUTORY SERVICE 

CREDIT FOR FUTURE EMPLOYMENT: An Employee who is a 

member of a Bargaining Unit accepted under this policy, shall 

earn Vesting Service and Contributory Service Credit for periods 

of future employment according to the benefit eligibility provision 

of the Pension Plan. 

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(5) CANCELLATION OF VESTING SERVICE, NONCONTRIBUTORY SERVICE CREDIT AND CONTRIBUTORY 

SERVICE CREDIT EARNED: In the event a Bargaining Unit 

accepted under this policy either voluntarily or involuntarily 

withdraws from the Pension Fund during the “Five-Year Free 

Look” period defined in Section 8 of Appendix E, the Vesting 

Service, Non-Contributory Service Credit and Contributory Service 

Credit earned by an Employee under (b)(3), above, shall be 

canceled. After the “Five-Year Free Look” period expires, the 

provisions of Article I, Section 1.38 shall be applied in the event of 

a Voluntary Withdrawal. 

(6) BENEFIT ELIGIBILITY: The benefit eligibility rules of the Pension 

Plan, including the Break-in-Service rules, shall be used to 

determine whether an Employee who is a member of a Bargaining 

Unit accepted under this policy receives any benefit from the 

Pension Fund, and the Forms of Payment provisions of the 

Pension Plan shall be used to determine the manner in which any 

benefit to be received shall be paid, except that: 

(A) The Twenty-Year Service Pension, Early Retirement 

Pension, Deferred Pension and Twenty-Year Deferred 

Pension shall be reduced by the amount of any benefit 

payable under the prior pension plan. 

(B) The eligibility requirements for the Contributory Credit 

Pension, 25-And-Out Pension and 30-And-Out Pension 

shall also include the condition that at least 1⁄2 of the 

Contributory Service Credit needed for these benefits be 

earned after the Effective Date of Acceptance of a 

Bargaining Unit under this policy. These benefits shall also 

be reduced by the amount of any benefit payable under 

the prior pension plan. 

(c) POLICY UNDER WHICH VESTING SERVICE, NON-CONTRIBUTORY 

SERVICE CREDIT AND CONTRIBUTORY SERVICE CREDIT WILL BE 

RECOGNIZED: Any Vesting Service, Non-Contributory Service Credit 

and Contributory Service Credit being claimed by an Employee in a 

Bargaining Unit accepted under the provisions of this Appendix G, must 

be reported to the Pension Fund at the time the Bargaining Unit petitions 

for acceptance. Only an Employee who is a member of a Bargaining Unit 

on the Effective Date of Acceptance shall be eligible to have Vesting 

Service, Non-Contributory Service Credit and Contributory Service Credit 

recognized by the Pension Fund according to the provisions of this 

Appendix G. An Employee who is hired or rehired and becomes a 

member of a Bargaining Unit after its Effective Date of Acceptance shall 

not be eligible to claim any Vesting Service, Non-Contributory Service 

Credit or Contributory Service Credit under this Appendix G. 

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APPENDIX H. THE SPECIAL ELIGIBILITY APPENDIX 

During 1987, a settlement was finalized in a class action lawsuit (Dutchak, Brock and 

Sullivan v. Fitzsimmons) that had been pending in the United States District Court in 

Chicago. This Appendix H adds a series of amendments to the Pension Plan to comply 

with this settlement. In general, the provisions of this Appendix H make the federal law 

requirements of the Employee Retirement Income Security Act of 1974 (ERISA), 

retroactive to February 1, 1955 (the inception of the Pension Fund) so as to cover any 

Participant or former Participant. The purpose of this Appendix H is to set forth the 

special eligibility amendments that apply to those who are affected by this settlement. 

These special eligibility amendments supersede any other provisions of this Pension 

Plan to the extent they are in conflict with those provisions. 

(a) If any Participant is entitled to benefits under any provisions of the 

Pension Plan other than these amendments, those other benefits must be 

paid in full and set off against any benefit payable because of the 

amendments. This will not result in a decrease in the total benefit to which 

any Participant is entitled. 

(b) Prior to ERISA, which became law in 1974, the Fund did not provide any 

form of vested benefits; that is (with one exception), no Participant was 

guaranteed a benefit unless the Participant had met all eligibility criteria at 

the time of the Participant’s retirement. The ERISA rules, in general, 

provide a benefit to every Participant with 10 years of contributions made 

or required to be made to the Pension Fund not interrupted by a Break-inService (absence from contributory coverage) regardless whether the 

Participant subsequently left the Pension Fund for any period of time, 

however long, before retiring. As a result of these amendments, any 

Participant who has ever had 10 years of contributions made or required 

to be made to the Pension Fund on his behalf may receive a Vested 

Pension calculated under the ERISA mandated formula. Specifically, 

under these amendments, any Participant who is eligible to retire before 

December 31, 2015, will be entitled to choose either the benefits for 

which that Participant qualifies under the Pension Plan as it existed 

before these amendments became effective or, in the alternative, to 

receive a Vested Pension based upon all contributions required to be 

made to the Pension Fund on behalf of the Participant since 1955 (not 

counting certain non-contributory service as defined in the Pension Plan) 

if the Participant has received 10 Vesting Service Years (as defined in the 

Pension Plan), regardless whether at least 3 of those years were received 

after December 31, 1970 and regardless whether he was a Participant as 

defined by the Pension Plan. 

(c) Under the earlier pension plans, a Participant could have a Break-inService, and lose Service Credit if he left the Pension Fund for 2 to 5 

years, regardless whether he returned to coverage at a later date. The 

Break could cause the loss of a Participant’s entire pension. These 

amendments, however, will be subject to the ERISA Break-in-Service 

rules, which permit a Participant to regain all Service Credit if he returns 

to the Pension Fund in less years than he was originally in the Fund, 

regardless whether the Covered Service, Service Credit and Vesting 

Service occurred at any time after February 1, 1955. In all cases, the 

Break-in-Service rule which is most advantageous to the Participant will 

be applied in determining his eligibility for any benefit. 

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(d) Service in a different fund which has reciprocity with the Pension Fund, or 

in another pension plan established by collective bargaining with an 

International Brotherhood of Teamsters affiliate which this Pension Fund 

does not have a reciprocal agreement, will not constitute a Break-inService regardless whether it is treated as Service Credit in this Pension 

Fund for purposes of the Pension Plan for employment covered by 

another pension plan. This amendment will remain in effect until 

December 31, 2015. 

(e) At present, the Pension Fund normally pays disability benefits on the 

same schedule as Social Security Disability Benefits; starting the 1st day 

of the month after 5 full calendar months of total disability. The present 

rules, however, delay such payments (and do not pay for the period of 

such delay) if a Participant does not file his claim for disability benefits 

during this 5 month period, so that a tardy filing will cause denial of 

benefits for any time prior to the 3rd month after such late claim. As a 

result of these amendments, the tardy filing rule will be waived so that the 

first monthly payment of a Disability Pension Benefit for any Participant 

disabled between the effective date of this amendment and December 31, 

2015, will become due on the 1st day of the month after such Participant 

has been disabled for 5 full calendar months (and is otherwise eligible for 

a benefit under the Pension Plan). 

(f) Each participant receiving a Disability Pension Benefit of $100 as of 

October 15, 1981, will receive a $10 increase in his monthly payments 

effective retroactively to November 1, 1981 and to and including 

December 31, 2015, so long as that Participant is otherwise eligible under 

the Pension Plan. If the Disability Pension Benefit is increased above 

$150 before December 31, 2015, the eligible Participant will receive that 

increased benefit plus $15 per month, until December 31, 2015, at which 

time all additional payments made under this amendment will terminate 

totally. 

(g) A Special Hardship Appeal Committee will be created, composed of one 

Union Trustee and one Employer Trustee. This Committee will meet at 

least once each calendar quarter and may meet more often at its 

discretion. For each hardship claim presented, the Committee will attempt 

to reach fair and internally consistent decisions and will keep files which 

will include a summary of the basis of the claim and the Committee’s 

findings and disposition of the claim. In addition, the Committee will 

maintain an index to all such files. These records will be available for 

inspection by any Participant or his attorney. The procedure for review of 

a claim by the Special Hardship Appeal Committee will be the same as 

that for review by the Board of Trustees as described in the Pension Plan, 

except to the extent that procedure is inconsistent with the procedure 

provided in this amendment. 

(h) The Special Hardship Appeal Committee will review appeals by and grant 

benefits to any Participant who does not qualify for benefits under the 

Pension Plan in cases where substantial justice requires deviation from 

the specific eligibility rules of the Pension Plan; these cases must 

substantially conform to circumstances in which: 

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(1) the Participant would have been eligible for benefits but for written 

misinformation provided by the Pension Fund or its Employees; 

(2) the Participant would have been eligible for benefits but for 

inadequate or tardy release of information about the Pension 

Fund’s eligibility rules or his status under these rules; 

(3) the Participant has at least 20 years of Covered Service on or 

after his 47th birthday, was not an active Employee on his 50th 

birthday, and demonstrated confusion as to the application of 

Pension Plan rules to those circumstances by having made a 

reasonably contemporaneous claim for benefits; 

(i) Any benefits payable to a Participant or former Participant becoming 

eligible under the terms of these amendments which have a present value 

(as computed by the Pension Fund’s actuary) of $2,500 or less at the 

time the benefits become effective, may (if the Pension Fund elects) be 

paid in lump-sum equivalent to the amount of that present value. 

(j) Any payment which would have been made to a deceased Participant 

under the amendments if not for the Participant’s death, will be payable to 

the estate of the deceased Participant or those of the Participant’s heirs 

as may be determined by the Pension Fund. Any payment of death 

benefits to which any person would be entitled under the amendments will 

be made to the person who would have been entitled to a death benefit at 

the time of the death of the Participant. 

(k) These amendments are enacted pursuant to the settlement and will 

expire and cease being effective on December 31, 2015, however, a 

Participant who is entitled to receive benefits other than the disability 

pension provided by the amendments will continue to receive those 

benefits for the remainder of his life, subject to other eligibility rules of the 

Pension Plan. Subject to any limitations of ERISA or any other applicable 

legal requirements, the Board of Trustees reserves the right to amend the 

Pension Plan to suspend or eliminate any of the benefits required by the 

amendments if the lawsuits are reopened or revived by court order in a 

way which challenges the general principles of the amendments and the 

settlement upon which they are based. 

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APPENDIX I. MEDICAL BENEFITS ACCOUNTS 

Section 1. PREAMBLE 

This Appendix I is added to the Pension Plan by the Board of Trustees, effective on and 

after June 1, 1999, in order to establish a basis for benefits to be payable by the Pension 

Fund in accordance with Section 401(h) of the Internal Revenue Code, which currently 

provides that “a pension or annuity plan may provide for the payment of benefits for 

sickness, accident, hospitalization, and medical expenses of retired employees, their 

spouses and their dependents” if certain conditions are satisfied. 

Section 2. DEFINITIONS 

The definitions applicable to this Appendix I include all definitions stated in Article I and 

other provisions of the Pension Plan, as heretofore and hereafter amended, and the 

following: 

(a) “Eligible Medical Beneficiary” means any person (1) who is a 

Pensioner receiving monthly retirement pension benefits from the 

Pension Fund or the Spouse of such a Pensioner and (2) who is eligible 

to receive Medical Benefits in accordance with a Medical Benefits 

Account; and 

(b) “Health and Welfare Fund” means Central States, Southeast and 

Southwest Areas Health and Welfare Fund; and 

(c) “Medical Benefits” means those benefits which are specified in a 

Medical Benefits Account; and 

(d) “Medical Benefits Account” means a plan established by the Board of 

Trustees to provide benefits in accordance with Section 401(h) of the 

Internal Revenue Code, provided that the terms and provisions of each 

such separate plan shall be specified in a resolution adopted by the 

Board of Trustees; and 

(e) “Spouse” means any person (1) who is married to a Pensioner in a 

legally recognized civil or religious ceremony or (2) who is a party to a 

common-law marriage with a Pensioner in a jurisdiction in which 

common-law marriages are recognized to be valid, provided that the 

Pension Fund receives evidence confirming that all prerequisites to the 

validity of a common-law marriage, in that jurisdiction, have been 

satisfied. 

Section 3. MEDICAL BENEFITS ACCOUNTS 

(a) The Board of Trustees amends the Pension Plan by the addition of this 

Appendix I, effective on and after June 1, 1999, as the basis for Medical 

Benefits to be payable by the Pension Fund in accordance with separate 

Medical Benefits Accounts, the terms and provisions of each such 

separate account to be specified in a resolution adopted by the Board of 

Trustees. 

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(b) The funding for the payment of all Medical Benefits in accordance with 

Medical Benefits Accounts shall be derived entirely from Contributions 

payable by Contributing Employers in accordance with Collective 

Bargaining Agreements and from investment earnings. 

(c) The terms and provisions of the Pension Plan relating to plan 

administration, including Article VII and Appendix B, are incorporated by 

reference into, and shall be applicable to, this Appendix I. 

(d) The Health and Welfare Fund shall provide administrative services in 

disbursing Medical Benefits in accordance with Medical Benefits 

Accounts, in exchange for which the Health and Welfare Fund shall 

receive reasonable compensation from the Pension Fund in amounts 

sufficient to reimburse the Health and Welfare Fund for the costs it incurs 

in providing such services. 

 

(e) Medical Benefits Account 18+ is established, effective on and after June 

1, 1999, and is based upon the following terms and provisions: 

(1) the funding for the payment of all Medical Benefits in accordance 

with Medical Benefits Account 18+ shall be derived entirely from a 

portion of the Contributions that are payable by Contributing 

Employers in accordance with Collective Bargaining Agreements 

that specify Benefit Class 18+ Contribution rates (and from 

investment earnings), provided that the portion of those 

Contributions allocable to Medical Benefits Account 18+ shall be 

limited to $6.00 per weekly Contribution or $1.20 per daily 

contribution or $.15 per hourly Contribution, and provided further 

that the Pension Fund shall not be obligated to fund Medical 

Benefits except to the extent of such specified portion of 

Contributions and investment earnings thereon; and 

(2) the Medical Benefits that will be payable to an Eligible Medical 

Beneficiary in accordance with Medical Benefits Account 18+ will 

be equal to the Prescription Drug Benefit which is specified (as of 

June 1, 1999) in the Retiree Plan Document of the Health and 

Welfare Fund, the terms and exclusions of which are hereby 

incorporated by reference, provided that the Pension Fund will pay 

80% of covered Prescription Drug Benefit charges, and provided 

further that such payments by the Pension Fund will be limited to 

$1,000 per Eligible Medical Beneficiary in each calendar year, and 

provided further that the terms, limitations and exclusions of 

Medical Benefits payable in accordance with Medical Benefits 

Account 18+ may be amended by the Board of Trustees at any 

time and to any lawful extent and purpose; and 

(3) Medical Benefits in accordance with Medical Benefits Account 18+ 

will be payable to a Pensioner receiving monthly retirement 

benefits from the Pension Fund (only during periods in which such 

monthly benefits are payable), and to the Spouse of such a 

Pensioner, if:

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(A) the Pensioner meets each of the requirements of Section 

4.04(d)(7) and qualifies for a Contributory Credit Pension 

under Benefit Class 18+; and 

(B) the Pensioner has at least 20 years of Contributory Service 

Credit; and 

(C) the Pensioner’s Retirement Date is during the period from 

the initial effective date through the expiration date of a 

Collective Bargaining Agreement which covers members of 

his Bargaining Unit and which provides for Employer 

Contributions at a rate corresponding to Benefit Class 18+; 

provided that such Medical Benefits will be payable only on and 

after the 65th birthday of a Pensioner or Spouse. 

Section 4. MISCELLANEOUS 

In order to comply with the Internal Revenue Code, administration of each Medical 

Benefits Account shall comply with the following requirements: 

(a) all Medical Benefits shall be subordinate to the retirement pension 

benefits provided by and in accordance with the Pension Plan, provided 

that the aggregate actual Contributions allocated to Medical Benefits 

Accounts (when added to aggregate actual Contributions allocable to life 

insurance protection provided by and in accordance with the Pension 

Plan) shall not exceed 25% of all actual Contributions to the Pension 

Fund (other than Contributions allocated to the funding of past service 

credits) after the date on which a Medical Benefit Account is first 

established by the Pension Fund; and 

(b) a separate account shall be established and maintained with respect to 

Contributions allocated to each Medical Benefits Account, provided that 

this separate account requirement is for recordkeeping purposes only and 

that the funds allocated to Medical Benefits Accounts will be collectively 

invested with funds set aside for retirement purposes without identification 

of which investment properties are allocable to each account, and 

provided further that the investment earnings attributable to Medical 

Benefits Accounts must be allocated to each such account in a 

reasonable manner; and 

(c) each Contributing Employer, at or before the time he remits any 

Contribution to the Pension Fund of which part is to be allocated to a 

Medical Benefits Account, must designate the portion of the Contribution 

that is allocable to a Medical Benefits Account, and all Contributions by 

Contributing Employers to Medical Benefits Accounts must be reasonable 

and ascertainable; and 

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(d) it shall be impossible, at any time prior to the satisfaction of all liabilities 

under the Pension Plan to provide Medical Benefits, for any part of the 

corpus or income of a Medical Benefits Account (as recorded in a 

separate account) to be used for, or diverted to, any purpose other than 

the providing of such Medical Benefits (within the taxable year or 

thereafter), provided that it is permissible to apply corpus and/or income 

of a Medical Benefits Account to the payment of necessary or appropriate 

expenses of administering a Medical Benefits Account; and 

(e) in the event the interest of an Eligible Medical Beneficiary in a Medical 

Benefits Account is forfeited prior to termination of the account, an 

amount equal to the amount of the forfeiture shall be applied as soon as 

possible to reduce Contributions to fund Medical Benefits payable in 

accordance with the account; and 

(f) in the case of any Pensioner who is a “key employee” (meaning a person 

who, at any time during the plan year or any preceding plan year during 

which Contributions were made to the Pension Fund on his or her behalf, 

was a “key employee” as defined in Section 416[i] of the Internal Revenue 

Code as heretofore or hereafter amended), a separate account shall be 

established and maintained for Medical Benefits payable on behalf of 

such Pensioner and his or her Spouse, and such Medical Benefits (for 

any plan year in which the person is a “key employee”) shall be payable 

for such Pensioner and his or her Spouse only from such separate 

account; and 

(g) upon the satisfaction of all liabilities under the Pension Plan to provide 

Medical Benefits from a Medical Benefits Account, all of the corpus and 

income remaining in the Medical Benefits Account (as recorded in a 

separate account) shall be credited or refunded to the Contributing 

Employers whose Contributions funded the account, provided that such 

credits or refunds shall be limited to entities which are then Contributing 

Employers. 

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APPENDIX J-1. GROCERY WAREHOUSE PLAN A 

Section 1. PREAMBLE 

This Appendix J-1 is added to the Pension Plan by the Board of Trustees, effective on 

and after January 1, 2000, in order to establish the basis for the initial participation in the 

Pension Plan, after that date, of certain newly hired Employees of Contributing 

Employers which are Grocery Warehouse Employers. A principal objective of this 

Appendix J-1 is to fortify the contribution base of the Pension Fund by attracting certain 

additional Contributing Employers and Participants and by enabling certain existing 

Contributing Employers to continue their participation in the Pension Fund. The terms 

and provisions of this Appendix J-1 are available only to those Contributing Employers 

(and Participants employed by them) whose participation in this Grocery Warehouse 

Plan is expressly authorized and approved by the Trustees. (This Appendix J-1 is 

inapplicable to any Collective Bargaining Agreement [including any renewal or extension 

of an earlier Collective Bargaining Agreement] that is initially effective in a period that 

begins on or after July 1, 2006. If the expiration date of a Collective Bargaining 

Agreement of a Grocery Warehouse Employer was on or after July 1, 2006, and the 

agreement is amended to provide an expiration date prior to July 1, 2006, the amended 

agreement will not be accepted by the Pension Fund and this Appendix J-1 will be 

inapplicable to the amended agreement after its pre-amendment expiration date. See

Appendix J-2 of the Pension Plan.) 

Section 2. DEFINITIONS 

The definitions applicable to this Appendix J-1 include all definitions stated in Article I 

and other provisions of the Pension Plan, as heretofore and hereafter amended, and the 

following: 

(a) “Grocery Warehouse Employer” means a Contributing Employer which is 

bound by the terms of a Teamster Contract and which is engaged in 

grocery warehouse operations. The Trustees of the Pension Fund are 

vested with discretionary and final authority in determining whether or not 

a specific Contributing Employer is a Grocery Warehouse Employer and 

each such determination shall be binding upon that Contributing 

Employer, all other Contributing Employers and all Participants and 

beneficiaries of the Pension Fund. 

(b) “Grocery Warehouse Employee”, within the scope and for purposes of 

this Appendix J-1, means a Participant (1) who is employed by a Grocery 

Warehouse Employer, (2) whose employment is limited to grocery 

warehouse operations and (3) whose initial employment by his Grocery 

Warehouse Employer begins during the period from January 1, 2000, 

through the date of the first expiration on or after July 1, 2006, of a 

Collective Bargaining Agreement (including any renewal or extension of 

an earlier agreement) of his Grocery Warehouse Employer. (“Grocery 

Warehouse Employee” does not include any employee who performs 

truck driving and/or other non-warehouse services for his Grocery 

Warehouse Employer.) The Trustees of the Pension Fund are vested with 

discretionary and final authority in determining whether or not a specific 

Participant is a Grocery Warehouse Employee and each such 

determination shall be binding upon that Participant, his Contributing 

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Employer, all other Contributing Employers and all Participants and 

beneficiaries of the Pension Fund. 

Section 3. AUTHORIZED LESS-THAN-100% EMPLOYER CONTRIBUTIONS (AND 

CONTRIBUTORY SERVICE CREDIT) DURING INITIAL EMPLOYMENT OF 

GROCERY WAREHOUSE EMPLOYEES 

(a) Each Grocery Warehouse Employer shall be authorized and obligated to 

remit Employer Contributions on behalf of each Grocery Warehouse 

Employee it first employs on a date that is on or after January 1, 2000, 

and prior to July 1, 2006, beginning no later than the Contribution Start 

Date of that employee (as determined pursuant to this subsection), at no 

less than the following percentage of the Contribution Rates specified in 

Section 3.01(d) of the Pension Plan: 

(1) 20% throughout the first 12-month period after the Contribution 

Start Date; and 

(2) 40% throughout the second 12-month period after the Contribution 

Start Date; and 

(3) 60% throughout the third 12-month period after the Contribution 

Start Date; and 

(4) 80% throughout the fourth 12-month period after the Contribution 

Start Date; and 

(5) 100% on and after the fourth anniversary of the Contribution Start 

Date. 

For each Grocery Warehouse Employer whose initial Collective Bargaining 

Agreement providing for the above-described phased-in Employer Contributions 

is first effective on a date after March 31, 2005, the Contribution Start Date of 

each Grocery Warehouse Employee it first employs during or after the term of 

that agreement shall be the 31st calendar day after such employment begins. For 

each Grocery Warehouse Employer whose initial Collective Bargaining 

Agreement providing for the above-described phased-in Employer Contributions 

was first effective before April 1, 2005, the Contribution Start Date of each 

Grocery Warehouse Employee it first employs on or after January 1, 2000, shall 

be no later than the date of that employee’s initial completion of 1,000 Hours of 

Service in a 12-month period based upon his compensated employment by that 

Grocery Warehouse Employer, provided that, for each renewal or extension of a 

Collective Bargaining Agreement of such Grocery Warehouse Employer that is 

first effective on or after April 1, 2005, the Contribution Start Date of each 

Grocery Warehouse Employee it first employs during or after the term of that 

renewed or extended agreement shall be the 31st calendar day after such 

employment begins. 

(b) Any Collective Bargaining Agreement that provides for a schedule of 

phased-in Employer Contributions over a maximum 48-month period as 

authorized by (a), supra, shall specify the full Contribution Rate to which 

each percentage is applicable and shall separately specify the amount 

and duration of each such percentage. 

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(c) Any Participant on whose behalf Employer Contributions are owed at less 

than 100% of the applicable Contribution Rate(s) during the first 48 

months after his Contribution Start Date, pursuant to (a) and (b), supra, 

shall, during that same period, earn full Contributory Service for the 

purposes of both calculating a Year of Participation and preventing a 

One-Year Break-in-Service (and a Break-in-Service) as if the Participant’s 

Employer Contributions were owed at 100% (rather than partial 

percentages) of the full Contribution Rate(s), provided that only the same 

partial percentages of Contributory Service will be included in calculating 

Contributory Service Credit. 

(d) Any Participant on whose behalf Employer Contributions are owed at less 

than 100% of the applicable Contribution Rate(s) during the first 48 

months after his Contribution Start Date, pursuant to (a) and (b), supra, 

shall earn full Vesting Service throughout that period as if the Participant’s 

Employer Contributions were owed at 100% (rather than partial 

percentages) of the full Contribution Rate(s). 

(e) Any Participant on whose behalf Employer Contributions are owed at less 

than 100% of the applicable Contribution Rate(s) during the first 48 

months after his Contribution Start Date, pursuant to (a) and (b), supra, 

shall be limited to the same partial amount of Contributory Service Credit 

during that 48-month period (for example, if the Participant’s Employer 

Contributions are owed at 20%, 40%, 60% and 80% of the full 

Contribution Rate[s], respectfully, during the first four 12-month periods 

after his Contribution Start Date, he will be entitled to Contributory Service 

Credit limited to the same corresponding percentage of each week, day 

or other partial period within each such 12-month period), and shall be 

limited to the same partial periods of Contributions solely for the purposes 

of calculating Continuous Contributions and calculating the amount of 

reemployment of a recovered (former) Disabled Participant or a 

reemployed Pensioner that may be credited toward the 250-week 

minimum provided in Section 4.14. 

(f) The terms and provisions of this Appendix J-1 shall be applied to each 

newly hired Grocery Warehouse Employee without taking into account 

any of his prior employment, except employment by the same Grocery 

Warehouse Employer. Each Grocery Warehouse Employer may owe 

partial rather than full Employer Contributions on behalf of each of its 

Grocery Warehouse Employees, during only the first 48 months after an 

employee’s first Contribution Start Date during his initial employment by 

that Grocery Warehouse Employer, to the extent authorized by this 

Appendix J-1 (even if its employment of that employee is not continuous 

throughout that 48-month period). 

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APPENDIX J-2. GROCERY WAREHOUSE PLAN B 

Section 1. PREAMBLE 

This Appendix J-2 is added to the Pension Plan by the Board of Trustees, effective on 

and after July 1, 2006, in order to establish the basis for the initial participation in the 

Pension Plan, after that date, of certain newly hired Employees of Contributing 

Employers which are Grocery Warehouse Employers. A principal objective of this 

Appendix J-2 is to fortify the contribution base of the Pension Fund by attracting certain 

additional Contributing Employers and Participants and by enabling certain existing 

Contributing Employers to continue their participation in the Pension Fund. The terms 

and provisions of this Appendix J-2 are available only to those Contributing Employers 

(and Participants employed by them) whose participation in this Grocery Warehouse 

Plan is expressly authorized and approved by the Trustees. 

Section 2. DEFINITIONS 

The definitions applicable to this Appendix J-2 include all definitions stated in Article I 

and other provisions of the Pension Plan, as heretofore and hereafter amended, and the 

following: 

(a) “Grocery Warehouse Employer” means a Contributing Employer which is 

bound by the terms of a Teamster Contract and which is engaged in 

grocery warehouse operations. The Trustees of the Pension Fund are 

vested with discretionary and final authority in determining whether or not 

a specific Contributing Employer is a Grocery Warehouse Employer and 

each such determination shall be binding upon that Contributing 

Employer, all other Contributing Employers and all Participants and 

beneficiaries of the Pension Fund. 

(b) “Grocery Warehouse Employee”, within the scope and for purposes of 

this Appendix J-2, means a Participant (1) who is employed by a Grocery 

Warehouse Employer, (2) whose employment is limited to grocery 

warehouse operations and (3) whose initial employment by his Grocery 

Warehouse Employer begins on or after the inception date of the first 

Collective Bargaining Agreement of his Grocery Warehouse Employer 

(including any renewal or extension of an earlier agreement) that 

becomes effective on or after July 1, 2006. (“Grocery Warehouse 

Employee” does not include any employee who performs truck driving 

and/or other non-warehouse services for his Grocery Warehouse 

Employer.) The Trustees of the Pension Fund are vested with 

discretionary and final authority in determining whether or not a specific 

Participant is a Grocery Warehouse Employee and each such 

determination shall be binding upon that Participant, his Contributing 

Employer, all other Contributing Employers and all Participants and 

beneficiaries of the Pension Fund. (A Participant who, as of June 30, 

2006, is a “Grocery Warehouse Employee” within the scope and for 

purposes of Appendix J-1, and whose first Contribution Start Date for 

Appendix J-1 purposes was after June 30, 2002, may prospectively be 

reclassified as a “Grocery Warehouse Employee” within the scope and 

purposes of this Appendix J-2, but only for the remainder of the first 48 

months after his first Contribution Start Date for Appendix J-1 purposes, 

provided that any such reclassification is contingent on prior approval by 

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the Trustees of a corresponding amendment to his Contributing 

Employer’s Collective Bargaining Agreement [the Trustees are vested 

with discretionary and final authority in determining whether or not to 

approve such an amendment].) 

Section 3. AUTHORIZED LESS-THAN-100% EMPLOYER CONTRIBUTIONS (AND 

CONTRIBUTORY SERVICE CREDIT) DURING INITIAL EMPLOYMENT OF 

GROCERY WAREHOUSE EMPLOYEES 

(a) Each Grocery Warehouse Employer shall be authorized and obligated to 

remit Employer Contributions on behalf of each Grocery Warehouse 

Employee it first employs on or after July 1, 2006, beginning no later than 

the Contribution Start Date of that employee (as determined pursuant to 

this subsection), at no less than the following percentage of the 

Contribution Rates specified in Section 3.01(d) of the Pension Plan: 

(1) 50% throughout the first 36-month period after the Contribution 

Start Date; and 

(2) 100% on and after the third anniversary of the Contribution Start 

Date. 

For each Grocery Warehouse Employer whose initial Collective Bargaining 

Agreement providing for the above-described phased-in Employer Contributions 

is first effective on a date on or after July 1, 2006, the Contribution Start Date of 

each Grocery Warehouse Employee it first employs on or after that date shall be 

the 31st calendar day after such employment begins. 

(b) Any Collective Bargaining Agreement that provides for a schedule of 

phased-in Employer Contributions over a maximum 36-month period as 

authorized by (a), supra, shall specify the full Contribution Rate to which 

the 50% percentage is applicable and shall specify the amount and 

duration of the 50% obligation. 

(c) Any Participant on whose behalf Employer Contributions are owed at 

50% of the applicable Contribution Rate(s) during the first 36 months after 

his Contribution Start Date, pursuant to (a) and (b) supra, shall, during 

that same period, earn full Contributory Service for the purposes of both 

calculating a Year of Participation and preventing a One-Year Break-inService (and a Break-in-Service) as if the Participant’s Employer 

Contributions were owed at 100% (rather than 50%) of the full 

Contribution Rate(s). 

(d) Any Participant on whose behalf Employer Contributions are owed at 

50% of the applicable Contribution Rate(s) during the first 36 months after 

his Contribution Start Date, pursuant to (a) and (b), supra, shall earn full 

Vesting Service throughout that period as if the Participant’s Employer 

Contributions were owed at 100% (rather than 50%) of the full 

Contribution Rate(s). 

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(e) Any Participant on whose behalf Employer Contributions are owed at 

50% of the applicable Contribution Rate(s) during the first 36 months after 

his Contribution Start Date, pursuant to (a) and (b), supra, shall earn full 

Contributory Service Credit throughout that period as if the Participant’s 

Employer Contributions were owed at 100% (rather than 50%) of the full 

Contribution Rate(s) and, during that same 36-month period, 100% of the 

total weeks of Contributions will be included in any calculations of 

Continuous Contributions (Section 3.02) and of the amount of 

reemployment of a recovered (former) Disabled Participant or a 

reemployed Pensioner that may be credited toward the 250-week 

minimum provided in Section 4.14. 

(f) The terms and provisions of this Appendix J-2 shall be applied to each 

newly hired Grocery Warehouse Employee without taking into account 

any of his prior employment, except employment by the same Grocery 

Warehouse Employer. Each Grocery Warehouse Employer may owe 

50% rather than full Employer Contributions on behalf of each of its 

Grocery Warehouse Employees for only the first 36 months after an 

employee’s first Contribution Start Date that occurs during his initial 

employment by that Grocery Warehouse Employer, and only to the extent 

authorized by this Appendix J-2 (even if its employment of that employee 

is not continuous throughout that 36-month period). 

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APPENDIX K-1. MINIMUM EMPLOYER CONTRIBUTION REQUIREMENTS 

Section 1. PREAMBLE 

This Appendix K-1 is added to the Pension Plan by the Board of Trustees, effective on 

and after November 8, 2005, in order to enable the Pension Fund to comply with 

minimum funding standards imposed by federal law. The Pension Fund is required to 

comply with minimum funding standards established by Section 302 of ERISA, 29 

U.S.C. § 1082, and Section 412 of the Internal Revenue Code, 26 U.S.C. § 412. A letter 

from Internal Revenue Service (“IRS”) dated July 13, 2005, to Thomas C. Nyhan, 

Executive Director of the Pension Fund, states in part (emphasis added): 

“This letter constitutes notice that your request for a 10-year extension for 

amortizing the unfunded liabilities described in section 412 (b) (2) (B) of 

the Internal Revenue Code (‘Code’) and section 302 (b) (2) (B) of the 

Employee Retirement Income Security Act of 1974 (‘ERISA’), has been 

approved subject to the following conditions:” 

* * * * * 

“... If any one of these conditions is not satisfied, the approval to 

extend the amortization periods for amortizing the unfunded 

liabilities would be retroactively null and void.” 

The Trustees have received recommendations, information and expert advice that 

addition of this Appendix K-1 to the Pension Plan will be a reasonable measure to 

enable the Pension Fund to comply with the required conditions of the above-referenced 

IRS letter dated July 13, 2005, to prevent a deficiency in the Pension Fund’s funding 

standard account and to comply with minimum funding standards imposed by ERISA 

and the Internal Revenue Code. 

Section 2. DEFINITIONS 

The definitions applicable to this Appendix K-1 include all definitions stated in Article I 

and other provisions of the Pension Plan. 

Section 3. MINIMUM EMPLOYER CONTRIBUTION REQUIREMENTS 

Every Collective Bargaining Agreement which required Employer Contributions to the 

Pension Fund as of November 8, 2005, and which as of that date was scheduled to 

expire between that date and December 31, 2006, and which is renewed for periods 

beyond its expiration shall require each Contributing Employer bound by that renewal 

agreement to make increased Employer Contributions to the Pension Fund at 

Contribution rates at least equal to the following requirements (with exceptions specified 

in Section 4)1

: 

 

 As used in the Appendix K-1, “Current” means the final Employer Contribution rate for the 

highest Benefit Class negotiated in the Collective Bargaining Agreement expiring between November 8, 

2005, and December 31, 2006; “Rate/Wk” means Weekly Employer Contribution Rates; “Rate/Day” 

means Daily Employer Contribution Rates; and “Rate/Hr” means Hourly Employer Contribution Rates. 

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Schedule A (Benefit Class 1-14): 

Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk 

 1 $ 5.00 $ 5.40 $ 5.80 $ 6.20 $ 6.60 $ 7.10 

 2 7.00 7.50 8.00 8.60 9.20 9.80 

 2A 9.00 9.60 10.30 11.30 11.80 12.60 

 3 11.00 11.80 12.60 13.50 14.40 15.40 

 3A 13.00 13.90 14.90 15.90 17.00 18.20 

 4 16.00 17.10 18.30 19.60 21.00 22.50 

 5 18.50 19.80 21.20 22.70 24.30 26.00 

 6 21.00 22.50 24.10 25.80 27.60 29.50 

 7 24.00 25.70 27.50 29.40 31.50 33.70 

 8 27.00 28.90 30.90 33.10 35.40 37.90 

 9 30.00 32.10 34.30 36.70 39.30 42.10 

 10 33.00 35.30 37.80 40.40 43.20 46.20 

 11 37.00 39.60 42.40 45.40 48.60 52.00 

 12 41.00 43.90 47.00 50.30 53.80 57.60 

 13 46.00 49.20 52.60 56.30 60.20 64.40 

 14 51.00 54.60 58.40 62.50 66.90 71.60 

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Schedule B (Benefit Class 1-14) 

Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk 

 1 $ 6.00 $ 6.40 $ 6.80 $ 7.30 $ 7.80 $ 8.30 

 2 8.00 8.60 9.20 9.80 10.50 11.20 

 2A 10.00 10.70 11.40 12.20 13.10 14.00 

 3 12.00 12.80 13.70 14.70 15.70 16.80 

 3A 15.00 16.10 17.20 18.40 19.70 21.10 

 4 18.00 19.30 20.70 22.10 23.60 25.30 

 5 21.00 22.50 24.10 25.80 27.60 29.50 

 6 24.00 25.70 27.50 29.40 31.50 33.70 

 7 27.00 28.90 30.90 33.10 35.40 37.90 

 8 30.00 32.10 34.30 36.70 39.30 42.10 

 9 33.00 35.30 37.80 40.40 43.20 46.20 

 10 36.00 38.50 41.20 44.10 47.20 50.50 

 11 40.00 42.80 45.80 49.00 52.40 56.10 

 12 44.00 47.10 50.40 53.90 57.70 61.70 

 13 49.00 52.40 56.10 60.00 64.20 68.70 

 14 55.00 58.90 63.00 67.40 72.10 77.10 

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Schedule B (Benefit Class 15[A] through 18+) 

Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk 

 15A $ 61.00 $ 65.30 $ 69.90 $ 74.80 $ 80.00 $ 85.60 

 15B 65.00 69.60 74.50 79.70 85.30 91.30 

 15C 69.00 73.80 79.00 84.50 90.40 96.70 

 16 85.00 91.00 97.40 104.20 111.50 119.30 

 17A 118.00 126.30 135.10 144.60 154.70 165.50 

 17B 124.00 132.70 142.00 151.90 162.50 173.90 

 18 166.00 177.60 190.00 203.30 217.50 232.70 

 18+ 180.00 192.20 205.20 219.10 234.00 250.00 

Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Day Rate/Day Rate/Day Rate/Day Rate/Day Rate/Day 

 15A $13.00 $13.90 $14.90 $15.90 $17.00 $18.20 

 15B 13.80 14.80 15.80 16.90 18.10 19.40 

 15C 14.60 15.60 16.70 17.90 19.20 20.50 

 16 17.80 19.00 20.30 21.70 23.20 24.80 

 17A 24.40 26.10 27.90 29.90 32.00 34.20 

 17B 25.60 27.40 29.30 31.40 33.60 36.00 

 18 34.00 36.40 38.90 41.60 44.50 47.60 

 18+ 36.80 39.30 42.00 44.90 48.00 51.30 

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Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Hr Rate/Hr Rate/Hr Rate/Hr Rate/Hr Rate/Hr 

 15A $1.90 $2.00 $2.10 $2.20 $2.40 $2.60 

 15B 2.05 2.20 2.40 2.60 2.80 3.00 

 15C 2.20 2.40 2.60 2.80 3.00 3.20 

 16 2.65 2.80 3.00 3.20 3.40 3.60 

 17A 3.70 4.00 4.30 4.60 4.90 5.20 

 17B 3.90 4.20 4.50 4.80 5.10 5.50 

 18 5.20 5.60 6.00 6.40 6.80 7.30 

Section 4. EXCEPTIONS 

The terms and requirements of Section 3 of this Appendix K-1 will not be applicable to 

any Collective Bargaining Agreement expiring between November 8, 2005, and 

December 31, 2006, if the expiration date of the agreement is prior to January 1, 2006, 

and the renewal of the agreement is ratified prior to January 1, 2006, provided that the 

renewal Collective Bargaining Agreement must be received by the Pension Fund prior to 

July 1, 2006, in order to qualify for the exception described in this sentence. 

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APPENDIX K-2. MINIMUM EMPLOYER CONTRIBUTION REQUIREMENTS 

(NOVEMBER 8, 2006 UPDATE) 

Section 1. PREAMBLE 

This Appendix K-2 is added to the Pension Plan by the Board of Trustees, effective on 

and after November 8, 2006, in order to enable the Pension Fund to comply with 

minimum funding standards imposed by federal law. The Pension Fund is required to 

comply with minimum funding standards established by Section 302 of ERISA, 29 

U.S.C. § 1082, and Section 412 of the Internal Revenue Code, 26 U.S.C. § 412. A letter 

from Internal Revenue Service (“IRS”) dated July 13 2005, to Thomas C. Nyhan, 

Executive Director of the Pension Fund, states in part (emphasis added): 

“This letter constitutes that your request for a 10-year extension for 

amortizing the unfunded liabilities described in section 412(b)(2)(B) of the 

Internal Revenue Code (‘Code’) and section 302(b)(2)(B) of the Employee 

Retirement Income Security Act of 1974 (‘ERISA’), has been approved 

subject to the following conditions:” 

* * * * * 

“... If any one of these conditions is not satisfied, the approval to 

extend the amortization periods for amortizing the unfunded 

liabilities would be retroactively null and void.” 

The Trustees have received recommendations, information and expert advice that 

addition of this Appendix K-2 to the Pension Plan will be a reasonable measure to 

enable the Pension Fund to comply with the required conditions of the above-referenced 

IRS letter dated July 13, 2005, to prevent a deficiency in the Pension Fund’s funding 

standard account and to comply with minimum funding standards imposed by ERISA 

and the Internal Revenue Code. 

Section 2. DEFINITIONS 

The definitions applicable to this Appendix K-2 include all definitions stated in Article I 

and other provisions of the Pension Plan. 

Section 3. MINIMUM EMPLOYER CONTRIBUTION REQUIREMENTS 

Every Collective Bargaining Agreement requiring Employer Contributions to the Pension 

Fund as of January 1, 2007, and scheduled to expire between that date and December 

31, 2007, which is renewed for periods beyond its expiration, shall require each 

Contributing Employer bound by that renewal agreement to make increased Employer 

Contributions to the Pension Fund at Contribution rates at least equal to the following 

requirements

: 

 



 As used in the Appendix K-1, “Current” means the final Employer Contribution rate for the 

highest Benefit Class negotiated in the Collective Bargaining Agreement expiring between January 1, 

2007, and December 31, 2007; “Rate/Wk” means Weekly Employer Contribution Rates; “Rate/Day” 

means Daily Employer Contribution Rates; and “Rate/Hr” means Hourly Employer Contribution Rates. 

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Schedule A (Benefit Class 1-14): 

Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk 

 1 $ 5.00 $ 5.40 $ 5.80 $ 6.30 $ 6.80 $ 7.30 

 2 7.00 7.60 8.20 8.90 9.60 10.40 

 2A 9.00 9.70 10.50 11.30 12.20 13.20 

 3 11.00 11.90 12.90 13.90 15.00 16.20 

 3A 13.00 14.00 15.10 16.30 17.60 19.00 

 4 16.00 17.30 18.70 20.20 21.80 23.50 

 5 18.50 20.00 21.60 23.30 25.20 27.20 

 6 21.00 22.70 24.50 26.50 28.60 30.90 

 7 24.00 25.90 28.00 30.20 32.60 35.20 

 8 27.00 29.20 31.50 34.00 36.70 39.60 

 9 30.00 32.40 35.00 37.80 40.80 44.10 

 10 33.00 35.60 38.40 41.50 44.80 48.40 

 11 37.00 40.00 43.20 46.70 50.40 54.40 

 12 41.00 44.30 47.80 51.60 55.70 60.20 

 13 46.00 49.70 53.70 58.00 62.60 67.60 

 14 51.00 55.10 59.50 64.30 69.40 75.00 

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Schedule B (Benefit Class 1-14) 

Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk 

 1 $ 6.00 $ 6.50 $ 7.00 $ 7.60 $ 8.20 $ 8.90 

 2 8.00 8.60 9.30 10.00 10.80 11.70 

 2A 10.00 10.80 11.70 12.60 13.60 14.70 

 3 12.00 13.00 14.00 15.10 16.30 17.60 

 3A 15.00 16.20 17.50 18.90 20.40 22.00 

 4 18.00 19.40 21.00 22.70 24.50 26.50 

 5 21.00 22.70 24.50 26.50 28.60 30.90 

 6 24.00 25.90 28.00 30.20 32.60 35.20 

 7 27.00 29.20 31.50 34.00 36.70 39.60 

 8 30.00 32.40 35.00 37.80 40.80 44.10 

 9 33.00 35.60 38.40 41.50 44.80 48.40 

 10 36.00 38.90 42.00 45.40 49.00 52.90 

 11 40.00 43.20 46.70 50.40 54.40 58.80 

 12 44.00 47.50 51.30 55.40 59.80 64.60 

 13 49.00 52.90 57.10 61.70 66.60 71.90 

 14 55.00 59.40 64.20 69.30 74.80 80.80 

Schedule B (Benefit Class 15[A] through 18+) 

Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk Rate/Wk 

 15A $ 61.00 $ 65.90 $ 71.20 $ 76.90 $ 83.10 $ 89.80 

 15B 65.00 70.20 75.80 81.90 88.50 95.60 

 15C 69.00 74.50 80.50 86.90 93.90 101.40 

 16 85.00 91.80 99.10 107.00 115.60 124.80 

 17a 118.00 127.40 137.60 148.60 160.50 173.30 

 17b 124.00 133.90 144.60 156.20 168.70 182.20 

 18 166.00 179.30 193.60 209.10 225.80 243.90 

 18+ 180.00 193.90 208.90 225.10 242.60 261.50 

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Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Day Rate/Day Rate/Day Rate/Day Rate/Day Rate/Day 

 15A $ 13.00 $ 14.00 $ 15.10 $ 16.30 $ 17.60 $ 19.00 

 15B 13.80 14.90 16.10 17.40 18.80 20.30 

 15C 14.60 15.80 17.10 18.50 20.00 21.60 

 16 17.80 19.20 20.70 22.40 24.20 26.10 

 17a 24.40 26.40 28.50 30.80 33.30 36.00 

 17b 25.60 27.60 29.80 32.20 34.80 37.60 

 18 34.00 36.70 39.60 42.80 46.20 49.90 

 18+ 36.80 39.70 42.80 46.10 49.70 53.60 

Benefit Current Year 1 Year 2 Year 3 Year 4 Year 5 

 Class Rate/Hr Rate/Hr Rate/Hr Rate/Hr Rate/Hr Rate/Hr 

 15A $ 1.90 $ 2.10 $ 2.30 $ 2.50 $ 2.70 $ 2.90 

 15B 2.05 2.20 2.40 2.60 2.80 3.00 

 15C 2.20 2.40 2.60 2.80 3.00 3.20 

 16 2.65 2.90 3.10 3.30 3.60 3.90 

 17a 3.70 4.00 4.30 4.60 5.00 5.40 

 17b 3.90 4.20 4.50 4.90 5.30 5.70 

 18 5.20 5.60 6.00 6.50 7.00 7.60 

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APPENDIX L. TRANSFER OF LIABILITIES TO THE UPS TRANSFER PLAN 

 

Section 1. PREAMBLE 

This Appendix L is added to the Pension Plan (“this Pension Plan”) by the Board of 

Trustees, effective on and after January 1, 2008, in accordance with certain rights, 

obligations, terms and provisions in an agreement signed and effective on September 

30, 2007, between United Parcel Service, Inc. and the Trustees of the Pension Fund. 

Section 2. DEFINITIONS 

The definitions applicable to this Appendix L include all definitions stated in Article I and 

other provisions of this Pension Plan, as heretofore and hereafter amended, and the 

following: 

(a) “Accrued Benefit Payable at Age 65” means the Accrued Benefit of a 

Participant under this Pension Plan, as determined and calculated in 

accordance with this Pension Plan (as stated on December 26, 2007), 

both (1) that has been earned as of December 26, 2007 (including 

post-retirement death benefits payable to a surviving spouse that are part 

of a survivor annuity form of benefit, pursuant to Section 4.10 of this 

Pension Plan), and (2) that will be or would have been payable from 

and/or after the first day of the month following the 65th birthday of a 

Participant who is a member of the UPS Transfer Group if the Participant 

as of December 26, 2007, had sustained a Break-in-Service (as defined 

in Section 1.05[a] of this Pension Plan) and there had been no transfer of 

liabilities of the Pension Fund to the UPS Transfer Plan pursuant to the 

UPS-CSPF Agreement. 

(b) “CSPF Participant Not in Pay Status” means a Participant who both (1) 

as of January 1, 2008, was not a Pensioner as defined in Section 1.25 of 

this Pension Plan and (2) as of January 1, 2008, had not submitted to the 

Pension Fund a valid and bona fide application (that had been received 

by the Pension Fund before January 1, 2008) to become a Pensioner and 

to commence to receive retirement benefit payments from the Pension 

Fund on a date before January 1, 2008. 

(c) “Non-Retired UPS Participant” means each individual who both (1) as 

of January 1, 2008, was a CSPF Participant Not in Pay Status and (2) 

either (A) as of January 1, 2008, was both employed by the UPS 

Employer and not employed by any other employer that was then a 

Contributing Employer (as defined in Section 1.07 of this Pension Plan) or 

(B) as of the last Hour of Service (as defined in Section 1.17 of this 

Pension Plan) earned by the individual under the Pension Fund prior to 

January 1, 2008, was employed by the UPS Employer. 

(d) “UPS-CSPF Agreement” means an agreement which was signed and 

effective on September 30, 2007, between United Parcel Service, Inc. 

and the Trustees of the Pension Fund, which agreement is entitled 

“SPIN-OFF AND WITHDRAWAL LIABILITY AGREEMENT AND 

RELEASE”. 

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(e) “UPS Employer” means a group consisting of United Parcel Service, 

Inc., and all other trades and businesses under common control with 

United Parcel Service, Inc. as described in section 4001(b)(1) of the 

Employee Retirement Income Security Act of 1974, as amended, and 

each entity that is a member of that group. 

(f) “UPS Transfer Group” means the Non-Retired UPS Participants, the 

liabilities for whose rights to benefits from the Pension Fund were, are 

and will be transferred from the Pension Fund to the UPS Transfer Plan 

pursuant to the UPS-CSPF Agreement. 

(g) “UPS Transfer Plan” means the plan or plans maintained by the UPS 

Employer to which liabilities of the Pension Fund were, are and will be 

transferred pursuant to the UPS-CSPF Agreement. 

Section 3. TRANSFER OF LIABILITIES 

(a) The Board of Trustees amends this Pension Plan by the addition of this 

APPENDIX L, effective on and after January 1, 2008, to effectuate and 

evidence a complete transfer of liabilities from the Pension Fund to the 

UPS Transfer Plan on that date to the extent that such transfer of 

liabilities is contemplated by and in accordance with the UPS-CSPF 

Agreement. 

(b) Effective on and after January 1, 2008, all liabilities of the Pension Fund 

for any and all benefits that the Pension Fund would have paid at any 

time on and after January 1, 2008, to any Participants who are members 

of the UPS Transfer Group and to any other individuals to the extent that 

their benefits from the Pension Fund would have been based upon 

Service Credit (as defined in this Pension Plan) of Participants who are 

members of the UPS Transfer Group, including retirement, survivor, 

death, disability and all other benefits of any kind, are transferred from the 

Pension Fund to the UPS Transfer Plan, except: 

(1) relative to every Participant who is a member of the UPS Transfer 

Group and is alive on the Participant’s 65th birthday that is on a date 

after January 1, 2008, whether or not the Participant is employed on 

that 65th birthday and whether or not the Participant has retired as of 

that 65th birthday, the Pension Fund will be responsible to pay the 

Accrued Benefit Payable at Age 65 to that Participant beginning on 

the first day of the next month after that 65th birthday, provided that: 

(A) the amount of the monthly benefits payable by the 

Pension Fund will be calculated on the basis of a 

Retirement Date on the Participant’s 65th birthday, 

provided that there will be no reduction if the 

Participant actually retired and began to receive a 

retirement pension from the UPS Transfer Plan prior to 

that date, and provided further that such amount will be 

no greater than the amount of monthly benefits being 

paid by the UPS Transfer Plan as of the date on which 

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benefits are first payable by the Pension Fund pursuant 

to this subsection (b); and 

(B) if the Participant is married on a retirement date prior to 

the Participant’s 65th birthday and is receiving a 

retirement pension from the UPS Transfer Plan as of 

that 65th birthday, the Participant’s binding and 

effective election to receive or waive a qualified 

post-retirement joint and survivor annuity (“JSO 

benefit”) from the UPS Transfer Plan will be irrevocable 

and will be binding upon the Pension Fund, the 

Participant and the Participant’s spouse on and after 

the Participant’s 65th birthday, and the monthly benefits 

payable by the Pension Fund, if the Participant’s 

election was to receive a JSO benefit from the UPS 

Transfer Plan, will be in the form of a JSO benefit 

payable pursuant to Section 4.10 of this Pension Plan, 

reduced by adjustment factors for that benefit as stated 

in this Pension Plan, provided further that only the 

individual who was the Participant’s spouse on the date 

on which distribution of a retirement pension from the 

UPS Transfer Plan to the Participant commenced will 

be considered by the Pension Fund to be the 

Participant’s spouse for JSO benefit purposes (and 

only that individual will be eligible to receive a JSO 

benefit, calculated according to this Pension Plan, if 

that individual survives the retired Participant); and 

(C) if, on the Participant’s retirement date prior to the 

Participant’s 65th birthday, either the Participant is not 

married or the Participant is married and makes a 

binding and effective election to waive the JSO benefit 

from the UPS Transfer Plan with consent by the 

Participant’s spouse, and the Participant is receiving a 

retirement pension from the UPS Transfer Plan on that 

65th birthday, the monthly benefits payable by the 

Pension Fund will be continued for the lifetime of the 

Participant and there will be no JSO benefit payable by 

the Pension Fund; and 

(2) relative to every Participant who is a member of the UPS Transfer 

Group and who dies on a date that is after January 1, 2008, and 

prior to the date that would have been the Participant’s 65th

birthday, if the Participant was married on a retirement date prior 

to the Participant’s 65th birthday and elected to receive a qualified 

post-retirement joint and survivor annuity (“JSO benefit”) from the 

UPS Transfer Plan, and if the Participant’s surviving spouse 

(determined as of the date on which distribution of a retirement 

pension from the UPS Transfer Plan commenced) is receiving 

monthly JSO benefits from the UPS Transfer Plan that 

commenced after the Participant’s death and are still being paid 

on the date that would have been the Participant’s 65th birthday, 

the Pension Fund will be responsible to pay the surviving spouse’s 

share of the Participant’s Accrued Benefit Payable at Age 65 to 

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that surviving spouse beginning on the first day of the next month 

after what would have been the Participant’s 65th birthday, 

calculated in the form of a JSO benefit payable pursuant to 

Section 4.10 of this Pension Plan, reduced by adjustment factors 

for that benefit as stated in this Pension Plan, provided that there 

will be no reduction based upon the Participant’s earlier retirement 

age and receipt of a retirement pension from the UPS Transfer 

Plan prior to the Participant’s 65th birthday, and further provided 

that such amount will be no greater than the amount of monthly 

benefits being paid by the UPS Transfer Plan as of the date on 

which benefits are first payable by the Pension Fund pursuant to 

this subsection (b). 

Relative to every Participant who is a member of the UPS Transfer Group 

and who dies on a date that is after January 1, 2008, and prior to the date 

that would have been the Participant’s 65th birthday, if the Participant 

never retired and never began to receive a retirement pension from the 

UPS Transfer Plan before his death, the Pension Fund will not be 

responsible to pay any benefits to the Participant’s surviving spouse or to 

any other individual as a result of the death of the Participant. 

(c) Effective on and after January 1, 2008, all liabilities of the Pension Fund 

for all benefit rights of Non-Retired UPS Participants (whether payable 

before or after age 65), payable at any time on and after January 1, 2008, 

to the extent those liabilities are based upon the National Reciprocal 

Agreement for Teamster Pension Funds, are transferred from the 

Pension Fund to the UPS Transfer Plan. 

(d) No assets will be transferred from the Pension Fund to the UPS Transfer 

Plan. All liabilities transferred from the Pension Fund to the UPS Transfer 

Plan pursuant to the UPS-CSPF Agreement will immediately cease to be 

liabilities of the Pension Fund and will be immediately assumed by the 

UPS Transfer Plan. The Pension Fund will have no responsibility for 

payment of any liabilities transferred from the Pension Fund to the UPS 

Transfer Plan pursuant to the UPS-CSPF Agreement. 

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APPENDIX M-1. REHABILITATION PLAN 

 

Section 1. PREAMBLE AND DEFINITIONS. 

This Appendix M-1 is added to the Pension Plan effective on and after March 26, 2008 in 

order to comply with the requirements of the Pension Protection Act of 2006 (“PPA”). 

The Central States, Southeast and Southwest Areas Pension Fund (the “Fund”) was 

certified on March 24, 2008 by its actuary to be in “critical status” (sometimes referred to 

as the “red zone”) under the PPA. The Fund’s Board of Trustees, as the plan sponsor of 

a “critical status” pension plan, is charged under the PPA with developing a 

“rehabilitation plan” designed to improve the financial condition of the Fund in 

accordance with the standards set forth in the PPA. That is the purpose of this 

Rehabilitation Plan. 

Under the PPA, a rehabilitation plan must include one or more schedules showing 

revised benefit structures, revised contributions, or both, which, if adopted by the parties 

obligated under agreements participating in the pension plan, may reasonably be 

expected to enable the Fund to emerge from critical status in accordance with the 

rehabilitation plan. The PPA also provides that one of the rehabilitation plan schedules of 

benefits and contributions shall be designated the “default” schedule. The default 

schedule must assume that there are no increases in contributions under the plan other 

than the increases necessary to emerge from critical status after future benefit accruals 

and other benefits have been reduced to the maximum extent permitted by law. The 

PPA also creates certain categories of “adjustable benefits” which may be reduced or 

eliminated dependent upon the outcome of bargaining over the rehabilitation plan 

schedules and dependent on the exercise of certain flexibility and discretion conferred 

upon the Board of Trustees by the PPA. Adjustable benefits that may be affected in this 

manner include post-retirement death benefits, early retirement benefits or retirementtype subsidies, and generally any benefit that would be payable prior to normal 

retirement age (age 65 benefits under the Fund’s Plan Document – or, as discussed 

below, a Contribution Based Benefit actuarially reduced to be equivalent to an age 65 

benefit). 

Unless otherwise indicated, all capitalized terms herein shall have the definitions and 

meanings assigned to them in the Fund’s Pension Plan Document. 

Section 2. SCHEDULES OF CONTRIBUTIONS AND BENEFITS. 

With the PPA requirements outlined above in mind, the Fund’s Board of Trustees hereby 

provides the following PPA Schedules to the parties charged with bargaining over 

agreements requiring contributions to the Fund. 

 A. PRIMARY SCHEDULE (PRESERVES ALL CURRENT BENEFITS). 

 1. Benefits 

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers are in 

compliance with this Primary Schedule, there will be no change in benefit 

formulas, levels or payment options in effect on January 1, 2008. 

However, subject to the notice requirements of the PPA and other 

applicable law, any Bargaining Units (and any non-Bargaining Unit 

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employee groups participating in the Fund) whose Contributing 

Employers incur a Rehabilitation Plan Withdrawal on or after March 26, 

2008 shall have their Adjustable Benefits listed in Section 2(F) below 

eliminated or reduced to the extent indicated in Subsection B(1) below. 

 2. Contributions 

Compliance with the Primary Schedule requires annually compounded 

contribution rate increases effective immediately after the expiration of the 

Collective Bargaining Agreement (or other agreement requiring 

contributions to the Fund) and each agreement anniversary date (or 

reallocation anniversary, where applicable) during the term of the new 

bargaining agreement to the extent indicated below, depending on the 

year that the new agreement is effective (as shown below). Note that all 

contribution rate increases are annually compounded on the total 

contribution rate (including any reallocations of employee benefit 

contributions or agreed mid-contract contribution increases) immediately 

prior to the increase. 

 Pre-2006 agreements: 7% per year 

(beginning with 2006 agreement 

 anniversary or reallocation dates) 

 2006 agreements: 7% per year 

 2007 agreements: 8% per year 

 2008 agreements: 8% per year 

 2009 agreements: 8% per year 

The required annual rate increase may be provided through annual 

allocations to pension contributions of general and aggregate employee 

benefit contribution increases that were negotiated at the outset of an 

agreement, but were not specifically allocated to pension contributions 

until subsequent contract years. The Primary Schedule requires 8% per 

year contribution rate increases for the first 5 years, 6% per year 

contribution rate increases for the next 3 years and 4% per year 

contribution rate increases each year thereafter for 2008 agreements 

under the Primary Schedule and comparable rate increases over time for 

all other agreements under the Primary Schedule (see Exhibit A). 

 B. DEFAULT SCHEDULE. 

 1. Benefits 

With regard to Bargaining Units (and any non- Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers agree to 

comply with this Default Schedule [or who become subject to the Default 

Schedule due to a failure to achieve an agreement to accept one of the 

Rehabilitation Plan Schedules within the time frame specified under 

ERISA § 305(e)(3)(C)], the benefit formulas, levels, and payment options 

in effect on January 1, 2008 will remain in effect except for the following, 

upon the effective date that the Default Schedule applies to the 

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Bargaining Unit (or to any non-Bargaining Unit employee groups 

participating in the Fund): 

 Adjustable Benefits listed in Section 2(F) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of 

contributions (the Contribution-Based Pension) remains in 

effect, with the modification that the Contribution Based 

Pension monthly benefit payable at age 65 is reduced by 

1⁄2% per month for each month prior to age 65 at the time 

of retirement, with a minimum retirement age of 57. 

 2. Contributions 

Compliance with the Default Schedule consists of annually compounded 

contribution rate increases of 4% effective immediately after the 

expiration of the Collective Bargaining Agreement (or other agreement 

requiring contributions to the Fund) and each anniversary thereof during 

the term of the agreement. 

3. Effect of agreement to or imposition of Default Schedule. 

(i) If a Contributing Employer agrees to the Default Schedule with 

respect to a particular Bargaining Unit, the Fund will not accept 

any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, 

except as determined by the Board of Trustees in their sole 

discretion.

(ii) If a Contributing Employer becomes subject to the Default 

Schedule by operation of ERISA Section 305(e)(3)(C), because 

the bargaining parties have failed to adopt either of the Schedules 

compliant with this Rehabilitation Plan within 180 days of the 

expiration of their prior Collective Bargaining Agreement, the Fund 

will then accept a Collective Bargaining Agreement that is 

compliant with the Primary Schedule described in this 

Rehabilitation Plan, provided that such new Collective Bargaining 

Agreement provides for Primary Schedule contribution rates that 

are retroactive to the expiration date of the last Collective 

Bargaining Agreement that covered the affected Bargaining Unit.

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C. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER 

 INCURRING A REHABILITATION PLAN WITHDRAWAL. 

Subject to the provisos indicated in the final clauses of this Subsection C, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(F)) 

shall be eliminated or reduced (to the same extent indicated in Subsection B(1) 

above) with respect to Participants whose benefit commencement date [within 

the meaning of ERISA § 305(i)(10)] with the Fund is on or after April 8, 2008, 

and: 

(1) whose last Hour of Service prior to January 1, 2008 was earned while 

employed by United Parcel Service, Inc. (“UPS”), or with any trades or 

businesses at any time under common control with UPS, within the 

meaning of ERISA § 4001(b)(1); or

(2) who (i) has earned or earns an Hour of Service while employed with a 

Contributing Employer (or any predecessor or successor entity) that at 

any time on or after March 26, 2008 incurs a Rehabilitation Plan 

Withdrawal (see Section 2(G) below), and (ii) whose last year of 

Contributory Service Credit prior to the Rehabilitation Plan Withdrawal 

was earned while a member of a Bargaining Unit (or any predecessor or 

successor Bargaining Unit) ultimately incurring such Withdrawal. 

Provided, however, that any Pensioner otherwise subject to the elimination of 

Adjustable Benefits, due to a Rehabilitation Plan Withdrawal pursuant Subsection 

C(2) above, who has a benefit commencement date [within the meaning of 

ERISA § 305(i)(10)] one year or more prior to the earlier of: (i) the date of such 

Rehabilitation Plan Withdrawal or (ii) the date of the expiration of the last 

Collective Bargaining Agreement requiring Employer Contributions under the 

Primary Schedule prior to such Withdrawal, shall not be subject to the elimination 

of Adjustable Benefits provided that the Pensioner does not engage in Restricted 

Reemployment at any time subsequent to the benefit commencement date. 

And provided further that the spouse of any Participant otherwise subject to the 

elimination of Adjustable Benefits, due to a Rehabilitation Plan Withdrawal 

pursuant to Subsection C(2) above, shall not incur a loss of Adjustable Benefits 

with respect to any Surviving Spouse Benefits for which such spouse has a 

benefit commencement date [within the meaning of ERISA Section 305(i)(10)] 

prior to the date of the Rehabilitation Plan Withdrawal. 

D. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO BECOMES 

SUBJECT TO THE DEFAULT SCHEDULE. 

Subject to the provisos indicated in the final clauses of this Subsection D, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(F)) 

shall be eliminated or reduced (to the same extent indicated in Subsection B(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and: 

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Default Schedule 

described herein; and 

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(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Default Schedule was earned while a member of 

a Bargaining Unit (or any predecessor or successor Bargaining Unit) that 

ultimately became subject to the Default Schedule. 

Provided, however, that any Pensioner otherwise subject to the elimination of 

Adjustable Benefits, due to his Contributing Employer becoming subject to the 

Default Schedule pursuant to this Subsection D, who has a benefit 

commencement date [within the meaning of ERISA § 305(i)(10)] one year or 

more prior to the Contributing Employer becoming subject to the Default 

Schedule, shall not be subject to the elimination of Adjustable Benefits provided 

that the Pensioner does not engage in Restricted Reemployment at any time 

subsequent to the benefit commencement date. 

And provided further that the spouse of any Participant otherwise subject to the 

elimination of Adjustable Benefits, due to his Contributing Employer becoming 

subject to the Default Schedule pursuant this Subsection D, shall not incur a loss 

of Adjustable Benefits with respect to any Surviving Spouse Benefits for which 

such spouse has a benefit commencement date [within the meaning of ERISA 

Section 305(i)(10)] prior to the date on which the Contributing Employer became 

subject to the Default Schedule. 

E. RESTORATION OF ADJUSTED BENEFITS. 

Any Participant who incurs a benefit adjustment or elimination under the terms of 

Sections 2(A), 2(B), 2(C) or 2(D) above may have those affected benefits 

restored if, subsequent to the event causing the benefit adjustment, the 

Participant: 

(1) in the case of benefit adjustment caused by a Rehabilitation Plan 

Withdrawal (see Section 2(G) below), permanently ceases all 

employment with, and performance of services in any capacity for, the 

Contributing Employer (and any successors or trades or businesses 

under common control with such Employer within the meaning of ERISA 

§ 4001(b)(1)) within 60 days of the occurrence of such Rehabilitation Plan 

Withdrawal; and 

(2) in any case, subsequently earns one year of Contributory Service Credit 

with a Contributing Employer while that Employer is in compliance with 

the Primary Schedule described herein. 

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 F. ADJUSTABLE BENEFITS.

As used herein, Adjustable Benefits shall mean and include: 

(1) Any right to receive a Retirement Pension Benefit (Pension Plan, Article 

IV) prior to age 65 [including without limitation any pre-age 65 benefits 

that would otherwise be payable as (i) a Twenty Year Service Pension 

(Pension Plan § 4.01); (ii) a Contributory Credit Pension (Pension Plan § 

4.04); (iii) a Vested Pension (Pension Plan § 4.07); (iv) a Deferred 

Pension (Pension Plan § 4.08); or (v) a Twenty-Year Deferred Pension 

(Pension Plan § 4.09)]. 

(2) Early retirement benefit or retirement-type subsidies [including without 

limitation (i) an Early Retirement Pension (Pension Plan Section 4.02); (ii) 

a 25-And-Out Pension (Pension Plan Section 4.05); or a 30-And-Out 

Pension (Pension Plan Section 4.06)]. 

(3) All Disability Benefits not yet in pay status (Pension Plan, Article V). 

(4) Before Retirement Death Benefits (Pension Plan, Article VI) other than 

the 50% surviving spouse benefit. 

(5) Post-retirement death benefits that are not part of the annuity form of 

payment. 

(6) All Partial Pensions (Pension Plan, Appendix D), to the extent any such 

pension is tied to one or more of the Adjustable Benefits listed above. 

(7) All Contribution-Based Pensions (Pension Plan § 4.03) except that, 

assuming the Participant meets all other requirements for receiving a 

Contribution-Based Pension, the Contribution-Based Pension is payable 

at age 65 reduced by 1⁄2% per month for each month prior to age 65 at the 

time of retirement with a minimum retirement age of 57. Such minimum 

retirement age shall not apply if the Participant retired prior to age 57 

before the Participant’s Adjustable Benefits were eliminated or reduced. 

In such circumstance, the Participant shall be entitled to receive the 

Contribution-Based Pension reduced by 1⁄2% per month for each month 

prior to age 65 at the time of retirement. 

(8) To the extent not already included in paragraphs (1) – (7) above, the 

following categories of benefits listed and defined as “adjustable benefits” 

under ERISA § 305(e)(8)(iv): 

(i) benefits, rights, and features under the plan, including postretirement death benefits, 60-month guarantees, disability benefits 

not yet in pay status, and similar benefits, 

(ii) any early retirement benefit or retirement-type subsidy (within the 

meaning of ERISA section 204(g)(2)(A)) and any benefit payment 

option (other than the qualified joint and survivor annuity), and 

(iii) benefit increases that would not be eligible for a guarantee under 

ERISA Section 4022A on the first day of the Fund’s initial critical 

year under the PPA because the increases were adopted (or, if 

later, took effect) less than 60 months before such first day. 

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Provided, however, that except as provided in subparagraph (8)(iii) above, nothing in this 

paragraph shall be construed to reduce the level of a Participant’s accrued benefit 

payable at normal retirement. 

G. REHABILITATION PLAN WITHDRAWAL. 

Subject to the discretionary authority of the Board of Trustees indicated in the 

final clause of this Section 2(G), a “Rehabilitation Plan Withdrawal” occurs on the 

date a Contributing Employer is no longer required to make Employer 

Contributions to the Pension Fund under one or more of its Collective Bargaining 

Agreements as a result of actions by members of a Bargaining Unit (or its 

representatives) or the Contributing Employer, which actions include, but are not 

limited to the following: 

(1) decertification or other removal of the Union as a bargaining agent; 

(2) ratification or other acceptance of a Collective Bargaining Agreement 

which permits withdrawal of the Bargaining Unit, in whole or in part, from 

the Pension Plan; 

(3) administrative termination of the Contributing Employer with respect to 

any or all of its Collective Bargaining Agreements due to: (i) a violation of 

the Fund’s rules with respect to the terms of a Collective Bargaining 

Agreement [including, without limitation, a provision providing for a split 

bargaining unit]; or (ii) a violation of any other Fund rule or policy 

[including, without limitation, practices or arrangements that result in 

adverse selection]; 

(4) any transaction or other event [including without limitation, a merger, 

consolidation, division, asset sale (other than an asset sale complying 

with ERISA § 4204), liquidation, dissolution, joint venture, outsourcing, 

subcontracting] whereby all or a portion of the operations for which the 

Contributing Employer has an obligation to contribute are continued 

(whether by the Contributing Employer or by another party) in whole or in 

part without maintaining the obligation to contribute to the Fund under the 

same or better terms (including, for example, as to number of participants 

and contribution rate) as existed before the transaction. 

Provided, however, that with respect to the circumstances described in 

Subparas. (3)(ii) or (4) above, the Board of Trustees shall have full discretionary 

authority to consider, weigh and balance the following factors in determining 

whether a Rehabilitation Plan Withdrawal has occurred: 

(i) the extent to which the affected Bargaining Unit or its bargaining 

representative participated in or controlled, or could have controlled or 

prevented, through bargaining, grievance procedures, NLRB 

proceedings, litigation or other means, the cessation of Employer 

Contributions; 

(ii) the extent to which the affected Bargaining Unit benefited, directly or 

indirectly, from the cessation of Employer Contributions; 

(iii) the extent to which the affected Bargaining Unit, or its bargaining 

representative, resisted or attempted to resist, or acquiesced in, the 

cessation of Employer Contributions; 

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(iv) the extent to which the affected Bargaining Unit, or any of its members, 

become engaged as employees or independent contractors in the service 

of operations that were or are in whole or in part a successor of the 

operations of the Contributing Employer who incurred the cessation of 

Employer Contributions; and 

(v) the extent of the hardship that might be incurred by members of the 

affected Bargaining Unit by the elimination of Adjustable Benefits. 

Section 3. REHABILITATION PLAN STANDARDS AND OBJECTIVES. 

The Schedules of Contributions and Benefits discussed above have been formulated by 

the Fund’s Board of Trustees as reasonable measures which, under reasonable 

actuarial assumptions, are designed and projected to -- 

 Meet the increasingly stringent requirements of the amortization extension 

granted to the Fund by the Internal Revenue Service (IRS) in July 2005. The 

requirements include a funded ratio and a required minimum credit balance 

requirement (see attached Exhibit B) (pertinent portions of IRS amortization 

extension). 

 Enable the Fund to emerge from critical status in approximately the year 2028. 

The annual standards for meeting the requirements of the Rehabilitation Plan are as 

follows: 

 The annual actuarial valuation for the Fund shows that, as of the valuation date, 

the Fund satisfies the annual funding ratio and required credit balance conditions 

contained in the IRS amortization extension approval letter. 

 Actuarial projections updated for each year show, based on reasonable 

assumptions, that under the Rehabilitation Plan and its schedules (as amended 

and updated from time to time) the Fund will continue to satisfy the increasingly 

more stringent IRS amortization extension requirements. 

 Actuarial projections updated for each year show, based on reasonable 

assumptions, that under the Rehabilitation Plan and its schedules (or as 

amended from time to time) the Fund is expected to emerge from Critical Status. 

The Board of Trustees recognize that actual experience may differ from their 

reasonable assumptions, and therefore the exact year of emergence may be 

difficult to predict. 

Section 4. ALTERNATIVES CONSIDERED BY THE TRUSTEES. 

The Board of Trustees considered numerous alternatives (including combinations of 

contribution rate increases and benefit adjustments) that would satisfy the amortization 

extension conditions and might enable the Fund to emerge from Critical Status either by 

the end of ten year PPA Rehabilitation Period (which begins on January 1, 2011 and 

ends on December 31, 2020). Some of the alternatives considered were determined to 

be unreasonable measures. The various default and alternative schedules considered 

included the following: 

Schedules considered by the Board of Trustees to emerge by the end of the 

Rehabilitation Period on December 31, 2020 

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Schedule Benefit Reductions Contribution Rate Increases 

Default Immediate maximum Critical Status benefit cuts 

for all participants to the extent permitted by law 15% per year until emergence in 

2021 (plus an additional 1.6% 

annual increase for Benefit 

Classes 14 and below) 

Alternative 1 Maintain current benefits 17% per year until emergence in 

2021 

Alternative 2 On the second anniversary of the new bargaining 

agreement, reduce the future benefit accrual rate 

from 1% of contributions payable at age 62 to 1% 

of contributions at payable at age 65 

16% per year until emergence in 

2021 

The Board of Trustees concluded that utilizing any and all possible measures to emerge 

from Critical Status by the end of the 10-year presumptive Rehabilitation Period 

described in ERISA section 305(e)(4) would be unreasonable and would involve 

considerable risk to the Fund and Fund participants. In particular, the Board of Trustees 

concluded that the continued existence of the Fund and the Trustees’ ability to maintain 

and improve the Fund’s funded status in accordance with the terms of the IRS approved 

amortization extension would be jeopardized by any attempt to emerge from critical 

status by the end of the presumptive 10-year Rehabilitation Period. 

As shown above, emergence by the end of the presumptive 10 year Rehabilitation 

Period could require double-digit annual contribution rate increases. For example, the 

daily contribution rate would generally have to grow from $52 to over $300. Therefore, 

the Trustees concluded that annual contribution rate increases above the 8%/6%/4% 

level in the Primary Schedule were not reasonable and could trigger mass withdrawals 

and significant losses to the Fund and the participants. 

In the last several years, the Trustees have implemented numerous measures to 

improve the Fund’s funding. These have included: 

 Reducing the benefit accrual rate from 2% of contributions to 1% of contributions; 

 Protecting the “and-out” and early retirement benefits while freezing them at their 

year-end 2003 levels; 

 Obtaining agreements from the major bargaining parties to reallocate about $400 

million per year of benefit contributions to the Pension Fund; 

 Obtaining the amortization extension with its IRS-imposed conditions; and 

 Requiring as a condition of continued participation in the Fund that new bargaining 

agreements in the last several years include significant annual contribution rate 

increases. 

The Board of Trustees determined that mandating additional significant benefit cuts, or 

mandating contribution rate increases at levels beyond those required in recent years, 

would substantially accelerate the rate at which employers would withdraw from the 

Fund, in large part because the Union could conclude that it would be in its members’ 

best interest to agree to withdrawals. 

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EXHIBIT A 

Primary Schedule: Contribution Rate Increases By Bargaining Agreement Year 

(all rate increases are to be compounded annually) 

Calendar Year of 

Contribution 

Rate Increase 

Year of New Bargaining Agreement 

2006 2007 2008 2009 

2006 7% 

2007 7% 8% 

2008 7% 8% 8% 

2009 7% 8% 8% 8% 

2010 7% 8% 8% 8% 

2011 6% 8% 8% 8% 

2012 5% 6% 8% 8% 

2013 4% 4% 6% 8% 

2014 4% 4% 6% 8% 

2015 4% 4% 6% 8% 

2016 4% 4% 4% 6% 

2017 4% 4% 4% 4% 

2018 4% 4% 4% 4% 

2019 4% 4% 4% 4% 

2020 4% 4% 4% 4% 

2021 4% 4% 4% 4% 

2022 4% 4% 4% 4% 

2023 4% 4% 4% 4% 

2024 4% 4% 4% 4% 

2025 4% 4% 4% 4% 

2026 4% 4% 4% 4% 

2027 4% 4% 4% 4% 

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EXHIBIT B 

Significant Index No. 0412.00-00 

 200620024

DEPARTMENT OF THE TREASURY

INTERNAL REVENUE SERVICE 

WASHINGTON, D.C. 20224 

 TAX EXEMPT AND 

GOVERNMENT ENTITIES 

 DIVISION 

FEB 22 2006 

 SE:T:EP:RA:T:A2

In re: 

 Fund = 

 Industry = 

This letter constitutes notice that your request for a 10-year extension for amortizing the unfunded 

liabilities described in section 412(b)(2)(B) of the Internal Revenue Code (“Code”) and section 

302(b)(2)(B) of the Employee Retirement Income Security Act of 1974 (“ERISA”), has been approved 

subject to the following conditions: 

(1) A credit balance is maintained such that the credit balance is at least as large as the 

accumulation (at the plan’s valuation rate) of the amortized (at the Plan’s valuation rate over 

a period of 15 years) differences between the amortization payments of the extended bases 

(amortized at the section 6621(b) rate) and the amortization payments of such bases had 

such bases been extended and amortized at the Plan’s valuation rate; 

(2) The Plan’s funded ratio, calculated by dividing the market value of Plan assets as of the 

Plan’s valuation date by the Plan’s actuarial accrued liability (computed using the unit credit 

method and the Plan assumptions as of January 1, 2004), is: 

(a) no less than 59% for each valuation date from January 1, 2005, through January 1, 

2011, inclusive; 

(b) no less than 60% as of January 1, 2012 and as of January 1, 2013; 

(c) no less than 61% as of January 1, 2014, and as of January 1, 2015; 

(d) no less than 62% as of January 1, 2016; 

 200620024

2 

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(e) for each valuation date subsequent to January 1, 2016, no less than 1% greater than 

the floor funded ratio as of the previous valuation date. (For example, because the 

floor funded ratio as of January 1, 2016, is 62%, the funded ratio must be at least 

63% as of January 1, 2017, and 64% as of January 1, 2018); and 

(3) For each plan year that the extension remains in effect, starting with the plan year beginning 

January 1, 2004, a copy of the actuarial valuation report for each plan year will be provided 

to this office by September 15 of the following calendar year at the address below: 

Your authorized representative agreed to these conditions in a letter dated July 13, 2005. If any one of 

these conditions is not satisfied, the approval to extend the amortization periods for amortizing the 

unfunded liabilities would be retroactively null and void. However, the Service will consider 

modifications of these conditions especially in the event that unforeseen circumstances beyond the 

control of the Fund cause the actual experience of the Plan to fail the funded ratio condition. An 

example of such an unforeseen circumstance would include a market fluctuation affecting the value of 

the Plan’s assets. Of course, any request for a modification is considered another ruling request and 

would be subject to an additional user fee. 

The extensions of the amortization periods of the unfunded liabilities of the Plan have been granted in 

accordance with section 412(e) of the Code and section 304(a) of ERISA. Section 412(e) of the Code 

and section 304(a) of ERISA authorize the Secretary to extend the period of time required to amortize 

any unfunded liability (described in section 412(b)(2)(B) of the Code and section 302(b)(2)(B) of ERISA) 

of a plan for a period of time (not in excess of 10 years) if the Secretary determines that such extension 

would carry out the purposes of ERISA and would provide adequate protection for participants under 

the plan and their beneficiaries and if the Secretary determines that the failure to permit such extension 

would (1) result in (A) a substantial risk to the voluntary continuation of the plan, or (B) a substantial 

curtailment of pension benefit levels or employee compensation, and (2) be adverse to the interests of 

plan participants in the aggregate. 

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APPENDIX M-2. REHABILITATION PLAN (INCLUDING 2010 UPDATE) 

 

 

Section 1. PREAMBLE AND DEFINITIONS. 

An amended Appendix M was added to the Pension Plan effective on and after 

December 31, 2010 in order to update the Rehabilitation Plan in compliance with the 

requirements of the Pension Protection Act of 2006 (“PPA”). This Appendix M-2 is added 

to the Pension Plan in order to incorporate effective as of May 17, 2011, the Distressed 

Employer Schedule provisions (Section 2(C) and 2(F) below) into the Rehabilitation 

Plan. 

The Central States, Southeast and Southwest Areas Pension Fund (the “Fund”) was 

initially certified on March 24, 2008 by its actuary to be in “critical status” (sometimes 

referred to as the “red zone”) under the PPA; the Fund’s actuary has also certified the 

Fund to be in critical status for the 2009 and 2010 plan years. The Fund’s Board of 

Trustees, as the plan sponsor of a “critical status” pension plan, is charged under the 

PPA with developing a “rehabilitation plan” designed to improve the financial condition of 

the Fund in accordance with the standards set forth in the PPA, and with annually 

updating the rehabilitation plan. Although for plan year 2009 the Fund was exempt from 

the update requirement, pursuant to an election under the Worker Retiree and Employer 

Recovery Act of 2008, for plan year 2010 the PPA provisions concerning the 

rehabilitation plan update process are applicable to the Fund. The purpose of this 

updated Rehabilitation Plan is to comply with those PPA provisions. 

Under the PPA, a rehabilitation plan, including annual updates to the plan, must include 

one or more schedules showing revised benefit structures, revised contributions, or both, 

which, if adopted by the parties obligated under agreements participating in the pension 

plan, may reasonably be expected to enable the Fund to emerge from critical status in 

accordance with the rehabilitation plan. The PPA also provides that one of the 

rehabilitation plan schedules of benefits and contributions shall be designated the 

“default” schedule. The default schedule must assume that there are no increases in 

contributions under the plan other than the increases necessary to emerge from critical 

status after future benefit accruals and other benefits have been reduced to the 

maximum extent permitted by law. The PPA also creates certain categories of 

“adjustable benefits” which may be reduced or eliminated dependent upon the outcome 

of bargaining over the rehabilitation plan schedules and dependent on the exercise of 

certain flexibility and discretion conferred upon the Board of Trustees by the PPA. 

Adjustable benefits that may be affected in this manner include post-retirement death 

benefits, early retirement benefits or retirement-type subsidies, and generally any benefit 

that would be payable prior to normal retirement age (age 65 benefits under the Fund’s 

Plan Document – or, as discussed below, a Contribution Based Benefit actuarially 

reduced to be equivalent to an age 65 benefit). As noted, the PPA also requires annual 

updates of the rehabilitation plan. 

Unless otherwise indicated, all capitalized terms herein shall have the definitions and 

meanings assigned to them in the Fund’s Pension Plan Document. 

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Section 2. SCHEDULES OF CONTRIBUTIONS AND BENEFITS. 

With the PPA requirements outlined above in mind, the Fund’s Board of Trustees hereby 

provides the following PPA Schedules to the parties charged with bargaining over 

agreements requiring contributions to the Fund. 

A. PRIMARY SCHEDULE (EXCEPT AS NOTED, PRESERVES ALL CURRENT 

BENEFITS). 

1. Benefits 

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers are in 

compliance with this Primary Schedule, there will be no change in benefit 

formulas, levels or payment options in effect on January 1, 2008, except 

that as provided in Section 2(J) below, Participants who (i) have not 

submitted a retirement application on or before July 1, 2011 and (ii) do 

not have a benefit commencement date [within the meaning of ERISA § 

305(i)(10)] on or before July 1, 2011, will not be granted a Retirement 

Date prior to their 57th birthday and will not be eligible to receive 

retirement benefit payments of any type until after achieving age 57. 

Further, subject to the notice requirements of the PPA and other 

applicable law, any Bargaining Units (and any non-Bargaining Unit 

employee groups participating in the Fund) whose Contributing 

Employers incur a Rehabilitation Plan Withdrawal on or after March 26, 

2008 shall have their Adjustable Benefits listed in Section H below 

eliminated or reduced to the extent indicated in Subsection B(1) below. 

2. Contributions 

Compliance with the Primary Schedule requires annually compounded 

contribution rate increases in accordance with Exhibit A effective 

immediately after the expiration of the Collective Bargaining Agreement 

(or other agreement requiring contributions to the Fund) and each 

agreement anniversary date (or reallocation anniversary, where 

applicable) during the term of the new bargaining agreement to the extent 

indicated in Exhibit A, depending on the year that the new agreement is 

effective. Note that all contribution rate increases are annually 

compounded on the total contribution rate (including any reallocations of 

employee benefit contributions or agreed mid-contract contribution 

increases) immediately prior to the increase. 

The required annual rate increase may be provided through annual 

allocations to pension contributions of general and aggregate employee 

benefit contribution increases that were negotiated at the outset of an 

agreement, but were not specifically allocated to pension contributions 

until subsequent contract years. The Primary Schedule requires 8% per 

year contribution rate increases for the first 5 years, 6% per year 

contribution rate increases for the next 3 years and 4% per year 

contribution rate increases each year thereafter for 2008 agreements 

under the Primary Schedule and comparable rate increases over time for 

all other agreements under the Primary Schedule (see Exhibit A). 

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Provided, however, that absent further amendment to this rehabilitation 

plan, as of June 1, 2011, any Collective Bargaining Agreement requiring 

contributions of (1) $348 per week for each full-time employee with 

respect to Participants covered by the National Master Automobile 

Transporter Agreement, and (2) $342 per week for each full-time 

employee with respect to all other Participants, will be deemed to be in 

compliance with the Primary Schedule without the need for additional 

annual rate increases. 

 B. DEFAULT SCHEDULE. 

1. Benefits 

With regard to Bargaining Units (and any non- Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers agree to 

comply with this Default Schedule [or who become subject to the Default 

Schedule due to a failure to achieve an agreement to accept one of the 

Rehabilitation Plan Schedules within the time frame specified under 

ERISA § 305(e)(3)(C)], the benefit formulas, levels, and payment options 

in effect on January 1, 2008 will remain in effect except for the following, 

upon the effective date that the Default Schedule applies to the 

Bargaining Unit (or to any non-Bargaining Unit employee groups 

participating in the Fund): 

 Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of 

contributions (the Contribution-Based Pension) remains in 

effect, with the modification that the Contribution Based 

Pension monthly benefit payable at age 65 is reduced by 

1⁄2% per month for each month prior to age 65 with a 

minimum retirement age of 57, except that, for Participants 

who (i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) do not have a benefit 

commencement date [within the meaning of ERISA § 

305(i)(10)] on or before July 1, 2011, the Contribution 

Based Pension monthly benefit payable at age 65 shall be 

reduced to an actuarially equivalent benefit in accordance 

with the Schedule attached as Exhibit B with a minimum 

retirement age of 57.

2. Contributions 

Compliance with the Default Schedule consists of annually compounded 

contribution rate increases of 4% effective immediately after the 

expiration of the Collective Bargaining Agreement (or other agreement 

requiring contributions to the Fund) and each anniversary thereof during 

the term of the agreement. 

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3. Effect of agreement to or imposition of Default Schedule. 

(i) If a Contributing Employer agrees to the Default Schedule with 

respect to a particular Bargaining Unit, the Fund will not accept 

any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, 

except as determined by the Board of Trustees in their sole 

discretion.

(ii) If a Contributing Employer becomes subject to the Default 

Schedule by operation of ERISA Section 305(e)(3)(C), because 

the bargaining parties have failed to adopt either of the Schedules 

compliant with this Rehabilitation Plan within 180 days of the 

expiration of their prior Collective Bargaining Agreement, the Fund 

will then accept a Collective Bargaining Agreement that is 

compliant with the Primary Schedule described in this 

Rehabilitation Plan, provided that such new Collective Bargaining 

Agreement provides for Primary Schedule contribution rates that 

are retroactive to the expiration date of the last Collective 

Bargaining Agreement that covered the affected Bargaining Unit. 

C. DISTRESSED EMPLOYER SCHEDULE. 

 1. Benefits 

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers and 

contribution rates have been specifically accepted and approved by the 

Board of Trustees as satisfying the Qualifications for the Distressed 

Employer Schedule (as set forth in Section 2(C)(2) below), the benefit 

formulas, levels, and payment options in effect on January 1, 2008 will 

remain in effect except for the following, upon the effective date that the 

Distressed Employer Schedule applies to the Bargaining Unit (or to any 

non-Bargaining Unit employee group participating in the Fund) that is 

accepted by the Board of Trustees as qualifying under the Distressed 

Employer Schedule: 

 Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of 

contributions (the Contribution-Based Pension) remains in 

effect, with the modification that the Contribution Based 

Pension monthly benefit payable at age 65 is reduced by 

1⁄2% per month for each month prior to age 65 with a 

minimum retirement age of 57, except that, for Participants 

who (i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) have not achieved a 

Retirement Date on or before July 1, 2011, the 

Contribution Based Pension monthly benefit payable at 

age 65 shall be reduced to an actuarially equivalent benefit 

in accordance with the Schedule attached as Exhibit B with 

a minimum retirement age of 57, and except that any 

Participant who (i) has achieved a minimum age of 55 as 

of the date of the Distressed Employer’s termination of 

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participation in the Fund (see Section 2(C)(2) below) and 

(ii) has accrued a minimum of 25 years credit towards a 

Contributory Credit Pension or an And-Out Pension as of 

that date (see Pension Plan §§ 4.04, 4.05 and 4.06), shall 

be entitled to retain his eligibility for (but not gain further 

credit towards) any such Pension, provided that any such 

Participant has a minimum retirement age of 62.

 2. Contributions and Qualifications for the Distressed Employer 

 Schedule. 

The Board of Trustees may deem a Collective Bargaining Agreement with 

contribution rates not in compliance with either the Primary Schedule or 

the Default Schedule to be in compliance with and subject to the 

Distressed Employer Schedule, if in the Board of Trustees’ sole 

discretion, the Board determines that the Contributing Employer meets 

each of the following qualifications: 

(i) the common stock of the Employer or its parent corporation (or 

other affiliate under 80% or more common control with the 

Employer) is publicly traded and registered pursuant to the 

securities laws of the United States; 

(ii) the Employer has previously incurred a termination of its 

participation in the Fund due to an inability to remain current in its 

Contribution obligations, and the Employer was in terminated 

status immediately prior to executing the Agreement sought to be 

qualified under the Distressed Employer Schedule; 

(iii) during the last ten years in which the Employer participated in the 

Fund prior to its termination, it had paid contributions to the Fund 

on behalf of at least 1,000 full-time employees per month (or had, 

including part-time employees, paid contributions on behalf of the 

equivalent of at least 1,000 full-time employees per month for the 

specified ten year period); 

(iv) the Employer submits to a review of its financial condition and 

operations by the Fund’s Staff and outside expert and consultants, 

and agrees to reimburse the Fund for all fees and expenses 

incurred by the Fund in this review (including, but not limited to, 

reimbursement to the Fund for the time devoted by the Fund’s 

Staff to any such review, with this reimbursement to be made at 

market rates for comparable services performed by Fund’s Staff); 

(v) on the basis of this financial and operational review, it appears 

that the Employer is not able to contribute to the Fund at a higher 

rate than is indicated in the Collective Bargaining Agreement 

proposed for acceptance under the Distressed Employer 

Schedule, and that acceptance of the proposed Agreement is in 

the best interest of the Fund under all the circumstances and 

advances the goals of this Rehabilitation Plan; and 

(vi) the Employer provides the Fund with first lien collateral in any and 

all unencumbered assets to the fullest extent it is able in order to 

fully secure (i) any delinquent or deferred Contribution obligations 

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owed to the Fund, (ii) the Employer’s obligation to make current 

and future pension contributions to the Fund, and (iii) any future 

withdrawal liability potentially incurred by the Employer (with the 

amount of such potential withdrawal liability to be determined 

based on estimates to be provided by the Fund). 

3. Effect of agreement to or imposition of the Distressed Employer 

 Schedule. 

If a Contributing Employer becomes subject to the Distressed Employer 

Schedule with respect to a particular Bargaining Unit, the Fund will not 

accept any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, except as 

determined by the Board of Trustees in their sole discretion.

D. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER 

 INCURRING A REHABILITATION PLAN WITHDRAWAL. 

Subject to the provisos indicated in the final clauses of this Subsection D, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Subsection B(1) 

above) with respect to Participants whose benefit commencement date [within 

the meaning of ERISA § 305(i)(10)] with the Fund is on or after April 8, 2008, 

and: 

(1) whose last Hour of Service prior to January 1, 2008 was earned while 

employed by United Parcel Service, Inc. (“UPS”), or with any trades or 

businesses at any time under common control with UPS, within the 

meaning of ERISA § 4001(b)(1); or

 (2) who (i) has earned or earns an Hour of Service while employed with a 

Contributing Employer (or any predecessor or successor entity) that at 

any time on or after March 26, 2008 incurs a Rehabilitation Plan 

Withdrawal (see Section 2(I) below), and (ii) whose last year of 

Contributory Service Credit prior to the Rehabilitation Plan Withdrawal 

was earned while a member of a Bargaining Unit (or any predecessor or 

successor Bargaining Unit) ultimately incurring such Withdrawal. 

Provided, however, that any Pensioner otherwise subject to the elimination of 

Adjustable Benefits, due to a Rehabilitation Plan Withdrawal pursuant Subsection 

D(2) above, who has a benefit commencement date [within the meaning of 

ERISA § 305(i)(10)] one year or more prior to the earlier of: (i) the date of such 

Rehabilitation Plan Withdrawal or (ii) the date of the expiration of the last 

Collective Bargaining Agreement requiring Employer Contributions under the 

Primary Schedule prior to such Withdrawal, shall not be subject to the elimination 

of Adjustable Benefits provided that the Pensioner does not engage in Restricted 

Reemployment at any time subsequent to the benefit commencement date. 

And provided further that the spouse of any Participant otherwise subject to the 

elimination of Adjustable Benefits, due to a Rehabilitation Plan Withdrawal 

pursuant to Subsection D(2) above, shall not incur a loss of Adjustable Benefits 

with respect to any Surviving Spouse Benefits for which such spouse has a 

benefit commencement date [within the meaning of ERISA Section 305(i)(10)] 

prior to the date of the Rehabilitation Plan Withdrawal. 

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E. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO BECOMES 

SUBJECT TO THE DEFAULT SCHEDULE. 

Subject to the provisos indicated in the final clauses of this Subsection E, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Subsection B(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and: 

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Default Schedule 

described herein; and 

(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Default Schedule was earned while a member of 

a Bargaining Unit (or any predecessor or successor Bargaining Unit) that 

ultimately became subject to the Default Schedule. 

Provided, however, that any Pensioner otherwise subject to the elimination of 

Adjustable Benefits, due to his Contributing Employer becoming subject to the 

Default Schedule pursuant to this Subsection E, who has a benefit 

commencement date [within the meaning of ERISA § 305(i)(10)] one year or 

more prior to the Contributing Employer becoming subject to the Default 

Schedule, shall not be subject to the elimination of Adjustable Benefits provided 

that the Pensioner does not engage in Restricted Reemployment at any time 

subsequent to the benefit commencement date. 

And provided further that the spouse of any Participant otherwise subject to the 

elimination of Adjustable Benefits, due to his Contributing Employer becoming 

subject to the Default Schedule pursuant this Subsection E, shall not incur a loss 

of Adjustable Benefits with respect to any Surviving Spouse Benefits for which 

such spouse has a benefit commencement date [within the meaning of ERISA 

Section 305(i)(10)] prior to the date on which the Contributing Employer became 

subject to the Default Schedule. 

F. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO BECOMES 

SUBJECT TO THE DISTRESSED EMPLOYER SCHEDULE. 

Subject to the provisos indicated in the final clauses of this Subsection F, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (with the exception indicated in Subsection C(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and: 

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Distressed Employer 

Schedule described herein; and 

(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Distressed Employer Schedule was earned while 

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a member of a Bargaining Unit (or any predecessor or successor 

Bargaining Unit) that ultimately became subject to the Distressed 

Employer Schedule. 

Provided, however, that any Pensioner otherwise subject to the reduction in 

Adjustable Benefits indicated in the Distressed Employer Schedule, due to his 

Contributing Employer becoming subject to that Schedule pursuant to this 

Subsection F, who has a benefit commencement date [within the meaning of 

ERISA Section 305(i)(10)] one year or more prior to the Contributing Employer 

becoming subject to the Distressed Employer Schedule, shall not be subject to 

the reduction of Adjustable Benefits otherwise mandated by the Distressed 

Employer Schedule provided that the Pensioner does not engage in Restricted 

Reemployment at any time subsequent to the benefit commencement date, and 

provided further that with respect to Bargaining Units that become subject to the 

Distressed Employer Schedule on or prior to June 1, 2011, no Pensioners with 

Retirement Dates prior to September 24, 2010 shall be subject to such 

Distressed Employer Schedule benefit reduction. 

And provided further that the spouse of any Participant otherwise subject to the 

reduction of Adjustable Benefits, due to his Contributing Employer becoming 

subject to the Distressed Employer Schedule pursuant to this Subsection F, shall 

not incur a loss of Adjustable Benefits with respect to any Surviving Spouse 

Benefits for which such surviving spouse has a benefit commencement date 

[within the meaning of ERISA Section 305(i)(10)] prior to the date on which the 

Contributing Employer became subject to the Distressed Employer Schedule, 

and provided further in any event that with respect to Bargaining Units that 

become subject to the Distressed Employer Schedule on or prior to June 1, 

2011, no spouse shall be subject to such Distressed Employer Schedule benefit 

reduction if the Participant’s death occurred prior to September 24, 2010. 

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G. RESTORATION OF ADJUSTED BENEFITS. 

Any Participant who incurs a benefit adjustment or elimination under the terms of 

Sections 2(A), 2(B), 2(C), 2(D), 2(E) or 2(F) above may have those affected 

benefits restored if, subsequent to the event causing the benefit adjustment, the 

Participant: 

(1) in the case of benefit adjustment caused by a Rehabilitation Plan 

Withdrawal (see Section 2(I) below), permanently ceases all employment 

with, and performance of services in any capacity for, the Contributing 

Employer (and any successors or trades or businesses under common 

control with such Employer within the meaning of ERISA § 4001(b)(1)) 

within 60 days of the occurrence of such Rehabilitation Plan Withdrawal; 

and 

(2) in any case, subsequently earns one year of Contributory Service Credit 

with a Contributing Employer while that Employer is in compliance with 

the Primary Schedule described herein. 

 H. ADJUSTABLE BENEFITS.

As used herein, Adjustable Benefits shall mean and include: 

(1) Any right to receive a Retirement Pension Benefit (Pension Plan, Article 

IV) prior to age 65 [including without limitation any pre-age 65 benefits 

that would otherwise be payable as (i) a Twenty Year Service Pension 

(Pension Plan § 4.01); (ii) a Contributory Credit Pension (Pension Plan § 

4.04); (iii) a Vested Pension (Pension Plan § 4.07); (iv) a Deferred 

Pension (Pension Plan § 4.08); or (v) a Twenty-Year Deferred Pension 

(Pension Plan § 4.09)]. 

(2) Early retirement benefit or retirement-type subsidies [including without 

limitation (i) an Early Retirement Pension (Pension Plan Section 4.02); (ii)

a 25-And-Out Pension (Pension Plan Section 4.05); or a 30-And-Out 

Pension (Pension Plan Section 4.06)]. 

(3) All Disability Benefits not yet in pay status (Pension Plan, Article V). 

(4) Before Retirement Death Benefits (Pension Plan, Article VI) other than 

the 50% surviving spouse benefit. 

(5) Post-retirement death benefits that are not part of the annuity form of 

payment. 

(6) All Partial Pensions (Pension Plan, Appendix D), to the extent any such 

pension is tied to one or more of the Adjustable Benefits listed above. 

(7) All Contribution-Based Pensions (Pension Plan § 4.03) except that, 

assuming the Participant meets all other requirements for receiving a 

Contribution-Based Pension, the Contribution-Based Pension is payable 

at age 65 reduced by 1⁄2% per month for each month prior to age 65 at the 

time of retirement with a minimum retirement age of 57. Such minimum 

retirement age shall not apply if the Participant retired prior to age 57 

before the Participant’s Adjustable Benefits were eliminated or reduced. 

In such circumstance, the Participant shall be entitled to receive the 

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Contribution-Based Pension reduced by 1⁄2% per month for each month 

prior to age 65 at the time of retirement. Provided, however, for 

Participants who (i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) do not have a benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] on or before July 1, 2011, the 

reductions in the Contribution-Based Pensions payable at age 65 

referenced in this subparagraph (7) shall be based on actuarial 

equivalence in accordance with the Schedule attached as Exhibit B 

hereto. 

(8) To the extent not already included in paragraphs (1) – (7) above, the 

following categories of benefits listed and defined as “adjustable benefits” 

under ERISA § 305(e)(8)(iv): 

(i) benefits, rights, and features under the plan, including postretirement death benefits, 60-month guarantees, disability benefits 

not yet in pay status, and similar benefits, 

(ii) any early retirement benefit or retirement-type subsidy (within the 

meaning of ERISA section 204(g)(2)(A)) and any benefit payment 

option (other than the qualified joint and survivor annuity), and 

(iii) benefit increases that would not be eligible for a guarantee under 

ERISA Section 4022A on the first day of the Fund’s initial critical 

year under the PPA because the increases were adopted (or, if 

later, took effect) less than 60 months before such first day. 

Provided, however, that except as provided in subparagraph (8)(iii) above, nothing in this 

paragraph shall be construed to reduce the level of a Participant’s accrued benefit 

payable at normal retirement. 

I. REHABILITATION PLAN WITHDRAWAL. 

Subject to the discretionary authority of the Board of Trustees indicated in the 

final clause of this Section 2(I), a “Rehabilitation Plan Withdrawal” occurs on the 

date a Contributing Employer (a) is no longer required to make Employer 

Contributions to the Pension Fund under one or more of its Collective Bargaining 

Agreements, or (b) undergoes a significant reduction in its obligation to make 

Employer Contributions resulting from outsourcing or subcontracting work 

covered by the applicable Collective Bargaining Agreement(s), as a result of 

actions by members of a Bargaining Unit (or its representatives) or the 

Contributing Employer, which actions include, but are not limited to the following: 

(1) decertification or other removal of the Union as a bargaining agent; 

(2) ratification or other acceptance of a Collective Bargaining Agreement 

which permits withdrawal of the Bargaining Unit, in whole or in part, from 

the Pension Plan; 

(3) administrative termination of the Contributing Employer with respect to 

any or all of its Collective Bargaining Agreements due to: (i) a violation of 

the Fund’s rules with respect to the terms of a Collective Bargaining 

Agreement [including, without limitation, a provision providing for a split 

bargaining unit]; or (ii) a violation of any other Fund rule or policy 

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[including, without limitation, practices or arrangements that result in 

adverse selection]; 

(4) any transaction or other event [including without limitation, a merger, 

consolidation, division, asset sale (other than an asset sale complying 

with ERISA § 4204), liquidation, dissolution, joint venture, outsourcing, 

subcontracting] whereby all or a portion of the operations for which the 

Contributing Employer has an obligation to contribute are continued 

(whether by the Contributing Employer or by another party) in whole or in 

part without maintaining the obligation to contribute to the Fund under the 

same or better terms (including, for example, as to number of participants 

and contribution rate) as existed before the transaction; 

Provided, however, that with respect to the circumstances described in 

Subparas. (3)(ii) or (4) above, the Board of Trustees shall have full discretionary 

authority to consider, weigh and balance the following factors in determining 

whether a Rehabilitation Plan Withdrawal has occurred: 

(i) the extent to which the affected Bargaining Unit or its bargaining 

representative participated in or controlled, or could have controlled or 

prevented, through bargaining, grievance procedures, NLRB 

proceedings, litigation or other means, the cessation of Employer 

Contributions; 

(ii) the extent to which the affected Bargaining Unit benefited, directly or 

indirectly, from the cessation of Employer Contributions; 

(iii) the extent to which the affected Bargaining Unit, or its bargaining 

representative, resisted or attempted to resist, or acquiesced in, the 

cessation of Employer Contributions; 

(iv) the extent to which the affected Bargaining Unit, or any of its members, 

become engaged as employees or independent contractors in the service 

of operations that were or are in whole or in part a successor of the 

operations of the Contributing Employer who incurred the cessation of 

Employer Contributions; and 

(v) the extent of the hardship that might be incurred by members of the 

affected Bargaining Unit by the elimination of Adjustable Benefits. 

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J. BENEFIT ADJUSTMENTS APPLICABLE TO ALL PARTICIPANTS 

(INCLUDING INACTIVE VESTED PARTICIPANTS) WHO HAVE NOT 

SUBMITTED A RETIREMENT APPLICATION ON OR BEFORE JULY 1, 2011 

AND DO NOT HAVE A BENEFIT COMMENCEMENT ON OR BEFORE THAT 

DATE. 

Minimum Retirement Age 57. 

Participants who (i) have not submitted a retirement application on or before July 

1, 2011 and (ii) do not have a benefit commencement date [within the meaning of 

ERISA § 305(i)(10)] on or before July 1, 2011, will not be granted a Retirement 

Date prior to their 57th birthday and will not be eligible to receive retirement 

benefit payments of any type until after achieving age 57. 

Section 3. REHABILITATION PLAN STANDARDS AND OBJECTIVES. 

The Schedules of Contributions and Benefits discussed above have been formulated by 

the Fund’s Board of Trustees as reasonable measures which, under reasonable 

actuarial assumptions, are designed and projected to forestall the possible insolvency of 

the Fund prior to 2023. Projections of insolvency may vary from year to year as actual 

experience may differ from assumptions. 

The Trustees recognize the possibility that actual experience could be less favorable 

than the reasonable assumptions used for the Rehabilitation Plan on an annual basis. 

Consequently, the annual standards for meeting the requirements of the Rehabilitation 

Plan are as follows: 

 Actuarial projections updated for each year show, based on reasonable 

assumptions, that under the Rehabilitation Plan and its schedules (as amended 

and updated from time to time) the Fund will forestall its possible insolvency prior

to 2021. 

Section 4. ALTERNATIVES CONSIDERED BY THE TRUSTEES. 

The Board of Trustees considered numerous alternatives [including combinations of 

contribution rate increases (and other updates to the schedules of contribution rates in 

light of the experience of the Fund) and benefit adjustments] that might enable the Fund 

to emerge from Critical Status either by the end of ten year PPA Rehabilitation Period 

(which begins on January 1, 2011 and ends on December 31, 2020), or to forestall 

possible insolvency indefinitely (beyond the date referenced above under the “Standards 

and Objectives” heading). Some of the alternatives considered were determined to be 

unreasonable measures. The various default and alternative schedules considered 

included the following: 

Schedules considered by the Board of Trustees in formulating an initial 2008 

rehabilitation plan that might permit the Fund to emerge by the end of the Rehabilitation 

Period on December 31, 2020: 

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Schedule Benefit Reductions Contribution Rate Increases 

Default Immediate maximum Critical Status benefit cuts 

for all participants to the extent permitted by law 

15% per year until emergence in 

2021 (plus an additional 1.6% 

annual increase for Benefit 

Classes 14 and below) 

Alternative 1 Maintain current benefits 17% per year until emergence in 

2021 

Alternative 2 

On the second anniversary of the new bargaining 

agreement, reduce the future benefit accrual rate 

from 1% of contributions payable at age 62 to 1% 

of contributions at payable at age 65 

16% per year until emergence in 

2021 

In formulating the Fund’s initial rehabilitation plan in 2008, the Board of Trustees 

concluded that utilizing any and all possible measures to emerge from Critical Status by 

the end of the 10-year presumptive Rehabilitation Period described in ERISA section 

305(e)(4), would be unreasonable and would involve considerable risk to the Fund and 

Fund participants. In particular, the Board of Trustees concluded that the continued 

existence of the Fund and the Trustees’ ability to maintain and improve the Fund’s 

funded status in accordance with the terms of the IRS approved amortization extension 

would be jeopardized by any attempt to emerge from critical status by the end of the 

presumptive 10-year Rehabilitation Period. 

As shown above, based on January 1, 2008 valuation data, the emergence by the end of 

the presumptive 10 year Rehabilitation Period would require double-digit annual 

contribution rate increases. For example, the daily contribution rate would generally have 

to grow from $52 to over $300. Therefore, the Trustees concluded in 2008 that annual 

contribution rate increases above the 8%/6%/4% level in the Primary Schedule were not 

reasonable and could trigger mass withdrawals and significant losses to the Fund and 

the participants. 

During the process of updating the rehabilitation plan in 2010, the Trustees concluded 

that in light of current valuation data, the experience of the Fund and projections, the 

option available to the Fund under ERISA Section 305(e)(3)(ii) was to pursue reasonable 

measures to forestall a possible insolvency. The Trustees also concluded during the 

2010 update process that requiring annual contribution increases above the level 

described in the Primary Schedule would not be reasonable and would likely accelerate 

a possible insolvency of the Fund rather than forestall it. 

In recent years, the Trustees have implemented numerous measures to improve the 

Fund’s funding. These have included: 

 Reducing the benefit accrual rate from 2% of contributions to 1% of contributions; 

 Protecting the “and-out” and early retirement benefits while freezing them at their 

year-end 2003 levels; 

 Obtaining agreements from the major bargaining parties to reallocate about $400 

million per year of benefit contributions to the Pension Fund; 

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 Obtaining an amortization extension from the Internal Revenue Service in 2005, and 

seeking a waiver of the conditions of that extension in 2009 in light of anticipated 

investment losses resulting from the 2008 collapse of the financial markets; 

 Requiring as a condition of continued participation in the Fund that new bargaining 

agreements in the last several years include significant annual contribution rate 

increases; and 

 Providing information to Congress and federal agencies with respect to legislative or 

regulatory proposals that appear to assist in addressing the funding challenges 

confronting the Fund. 

The Board of Trustees determined that mandating additional significant benefit cuts 

(beyond those provided in this updated rehabilitation plan), or mandating contribution 

rate increases at levels beyond those required in recent years, would substantially 

accelerate the rate at which employers would withdraw from the Fund, in large part 

because the Union could conclude that it would be in its members’ best interest to agree 

to withdrawals. The Board of Trustees also determined that this acceleration of employer 

withdrawals would, in turn, accelerate the Fund’s insolvency and would be 

counterproductive to the Trustees’ effort to forestall insolvency. 

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EXHIBIT A 

Primary Schedule: Contribution Rate Increases By Bargaining Agreement Year 

(all rate increases are to be compounded annually) 

Calendar Year of 

Contribution 

Rate Increase 

Year of Initial Bargaining Agreement Conforming to Primary Schedule 

2006 & Earlier 2007 2008 2009 & Later 

2006 7% 

2007 7% 8% 

2008 7% 8% 8% 

2009 7% 8% 8% 8% 

2010 7% 8% 8% 8% 

2011 6% 8% 8% 8% 

2012 5% 6% 8% 8% 

2013 4% 4% 6% 8% 

2014 4% 4% 6% 8% 

2015 4% 4% 6% 8% 

2016 4% 4% 4% 6% 

2017 4% 4% 4% 4% 

2018 4% 4% 4% 4% 

2019 4% 4% 4% 4% 

2020 4% 4% 4% 4% 

2021 4% 4% 4% 4% 

2022 4% 4% 4% 4% 

2023 4% 4% 4% 4% 

2024 4% 4% 4% 4% 

2025 4% 4% 4% 4% 

2026 4% 4% 4% 4% 

2027 4% 4% 4% 4% 

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EXHIBIT B 

Schedule for Actuarial Reduction of Age 65 Benefits 

(applicable to Default Schedule and Rehabilitation Plan 

Withdrawal benefit adjustments for Participants who 

(i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) do not have a benefit commencement 

date [within the meaning of ERISA § 305(i)(10)] on or before July 1, 2011) 

 Percent of Age 65 Benefit Based on 

 Age Actuarial Equivalence 

 65 100% 

 64 90% 

 63 81% 

 62 74% 

 61 67% 

 60 61% 

 59 55% 

 58 50% 

 57 46% 

 

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APPENDIX M-3. REHABILITATION PLAN (INCLUDING 2011 UPDATE) 

 

 

Section 1. PREAMBLE AND DEFINITIONS. 

An amended Appendix M was added to the Pension Plan effective on and after 

December 31, 2010 in order to update the Rehabilitation Plan in compliance with the 

requirements of the Pension Protection Act of 2006 (“PPA”). Appendix M-2 was added to 

the Pension Plan in order to incorporate effective as of May 17, 2011, the Distressed 

Employer Schedule provisions (Section 2(C) and 2(F) below) into the Rehabilitation 

Plan. 

This Appendix M-3 is added to the Pension Plan effective on and after December 31, 

2011 in order to update the Rehabilitation Plan in compliance with the requirements of 

the PPA. 

The Central States, Southeast and Southwest Areas Pension Fund (the “Fund”) was 

initially certified on March 24, 2008 by its actuary to be in “critical status” (sometimes 

referred to as the “red zone”) under the PPA; the Fund’s actuary has also certified the 

Fund to be in critical status for the 2009 and 2010 plan years. The Fund’s Board of 

Trustees, as the plan sponsor of a “critical status” pension plan, is charged under the 

PPA with developing a “rehabilitation plan” designed to improve the financial condition of 

the Fund in accordance with the standards set forth in the PPA, and with annually 

updating the rehabilitation plan. Although for plan year 2009 the Fund was exempt from 

the update requirement, pursuant to an election under the Worker Retiree and Employer 

Recovery Act of 2008, for subsequent plan years the PPA provisions concerning the 

rehabilitation plan update process are applicable to the Fund. The purpose of this 

updated Rehabilitation Plan is to comply with those PPA provisions. 

Under the PPA, a rehabilitation plan, including annual updates to the plan, must include 

one or more schedules showing revised benefit structures, revised contributions, or both, 

which, if adopted by the parties obligated under agreements participating in the pension 

plan, may reasonably be expected to enable the Fund to emerge from critical status in 

accordance with the rehabilitation plan. The PPA also provides that one of the 

rehabilitation plan schedules of benefits and contributions shall be designated the 

“default” schedule. The default schedule must assume that there are no increases in 

contributions under the plan other than the increases necessary to emerge from critical 

status after future benefit accruals and other benefits have been reduced to the 

maximum extent permitted by law. The PPA also creates certain categories of 

“adjustable benefits” which may be reduced or eliminated dependent upon the outcome 

of bargaining over the rehabilitation plan schedules and dependent on the exercise of 

certain flexibility and discretion conferred upon the Board of Trustees by the PPA. 

Adjustable benefits that may be affected in this manner include post-retirement death 

benefits, early retirement benefits or retirement-type subsidies, and generally any benefit 

that would be payable prior to normal retirement age (age 65 benefits under the Fund’s 

Plan Document – or, as discussed below, a Contribution Based Benefit actuarially 

reduced to be equivalent to an age 65 benefit). As noted, the PPA also requires annual 

updates of the rehabilitation plan. 

Unless otherwise indicated, all capitalized terms herein shall have the definitions and 

meanings assigned to them in the Fund’s Pension Plan Document. 

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Section 2. SCHEDULES OF CONTRIBUTIONS AND BENEFITS. 

With the PPA requirements outlined above in mind, the Fund’s Board of Trustees hereby 

provides the following PPA Schedules to the parties charged with bargaining over 

agreements requiring contributions to the Fund. 

A. PRIMARY SCHEDULE (EXCEPT AS NOTED, PRESERVES ALL CURRENT 

BENEFITS). 

1. Benefits 

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers are in 

compliance with this Primary Schedule, there will be no change in benefit 

formulas, levels or payment options in effect on January 1, 2008, except 

that as provided in Section 2(J) below, Participants who (i) have not 

submitted a retirement application on or before July 1, 2011 and (ii) do 

not have a benefit commencement date [within the meaning of ERISA § 

305(i)(10)] on or before July 1, 2011, will not be granted a Retirement 

Date prior to their 57th birthday and will not be eligible to receive 

retirement benefit payments of any type until after achieving age 57. 

Further, subject to the notice requirements of the PPA and other 

applicable law, any Bargaining Units (and any non-Bargaining Unit 

employee groups participating in the Fund) whose Contributing 

Employers incur a Rehabilitation Plan Withdrawal on or after March 26, 

2008 shall have their Adjustable Benefits listed in Section 2(H) below 

eliminated or reduced to the extent indicated in Section 2(B)(1) below. 

2. Contributions 

Compliance with the Primary Schedule requires annually compounded 

contribution rate increases in accordance with Exhibit A effective 

immediately after the expiration of the Collective Bargaining Agreement 

(or other agreement requiring contributions to the Fund) and each 

agreement anniversary date (or reallocation anniversary, where 

applicable) during the term of the new bargaining agreement to the extent 

indicated in Exhibit A, depending on the year that the new agreement is 

effective. Note that all contribution rate increases are annually 

compounded on the total contribution rate (including any reallocations of 

employee benefit contributions or agreed mid-contract contribution 

increases) immediately prior to the increase. 

The required annual rate increase may be provided through annual 

allocations to pension contributions of general and aggregate employee 

benefit contribution increases that were negotiated at the outset of an 

agreement, but were not specifically allocated to pension contributions 

until subsequent contract years. The Primary Schedule requires 8% per 

year contribution rate increases for the first 5 years, 6% per year 

contribution rate increases for the next 3 years and 4% per year 

contribution rate increases each year thereafter for 2008 agreements 

under the Primary Schedule and comparable rate increases over time for 

all other agreements under the Primary Schedule (see Exhibit A). 

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Provided, however, that absent further amendment to this rehabilitation 

plan, as of June 1, 2011, any Collective Bargaining Agreement requiring 

contributions of (1) $348 per week for each full-time employee with 

respect to Participants covered by the National Master Automobile 

Transporter Agreement, and (2) $342 per week for each full-time 

employee with respect to all other Participants, will be deemed to be in 

compliance with the Primary Schedule without the need for additional 

annual rate increases. 

 B. DEFAULT SCHEDULE. 

1. Benefits 

With regard to Bargaining Units (and any non- Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers agree to 

comply with this Default Schedule [or who become subject to the Default 

Schedule due to a failure to achieve an agreement to accept one of the 

Rehabilitation Plan Schedules within the time frame specified under 

ERISA § 305(e)(3)(C)], the benefit formulas, levels, and payment options 

in effect on January 1, 2008 will remain in effect except for the following, 

upon the effective date that the Default Schedule applies to the 

Bargaining Unit (or to any non-Bargaining Unit employee groups 

participating in the Fund): 

 Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of 

contributions (the Contribution-Based Pension) remains in 

effect, with the modification that the Contribution Based 

Pension monthly benefit payable at age 65 is reduced by 

1⁄2% per month for each month prior to age 65 with a 

minimum retirement age of 57, except that, for Participants 

who (i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) do not have a benefit 

commencement date [within the meaning of ERISA § 

305(i)(10)] on or before July 1, 2011, the Contribution 

Based Pension monthly benefit payable at age 65 shall be 

reduced to an actuarially equivalent benefit in accordance 

with the Schedule attached as Exhibit B with a minimum 

retirement age of 57.

2. Contributions 

Compliance with the Default Schedule consists of annually compounded 

contribution rate increases of 4% effective immediately after the 

expiration of the Collective Bargaining Agreement (or other agreement 

requiring contributions to the Fund) and each anniversary thereof during 

the term of the agreement. 

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3. Effect of agreement to or imposition of Default Schedule. 

(i) If a Contributing Employer agrees to the Default Schedule with 

respect to a particular Bargaining Unit, the Fund will not accept 

any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, 

except as determined by the Board of Trustees in their sole 

discretion.

(ii) If a Contributing Employer becomes subject to the Default 

Schedule by operation of ERISA Section 305(e)(3)(C), because 

the bargaining parties have failed to adopt either of the Schedules 

compliant with this Rehabilitation Plan within 180 days of the 

expiration of their prior Collective Bargaining Agreement, the Fund 

will then accept a Collective Bargaining Agreement that is 

compliant with the Primary Schedule described in this 

Rehabilitation Plan, provided that such new Collective Bargaining 

Agreement provides for Primary Schedule contribution rates that 

are retroactive to the expiration date of the last Collective 

Bargaining Agreement that covered the affected Bargaining Unit. 

C. DISTRESSED EMPLOYER SCHEDULE. 

 1. Benefits 

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers and 

contribution rates have been specifically accepted and approved by the 

Board of Trustees as satisfying the Qualifications for the Distressed 

Employer Schedule (as set forth in Section 2(C)(2) below), the benefit 

formulas, levels, and payment options in effect on January 1, 2008 will 

remain in effect except for the following, upon the effective date that the 

Distressed Employer Schedule applies to the Bargaining Unit (or to any 

non-Bargaining Unit employee group participating in the Fund) that is 

accepted by the Board of Trustees as qualifying under the Distressed 

Employer Schedule: 

 Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of 

contributions (the Contribution-Based Pension) remains in 

effect, with the modification that the Contribution Based 

Pension monthly benefit payable at age 65 is reduced by 

1⁄2% per month for each month prior to age 65 with a 

minimum retirement age of 57, except that, for Participants 

who (i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) have not achieved a 

Retirement Date on or before July 1, 2011, the 

Contribution Based Pension monthly benefit payable at 

age 65 shall be reduced to an actuarially equivalent benefit 

in accordance with the Schedule attached as Exhibit B with 

a minimum retirement age of 57, and except that any 

Participant who (i) has achieved a minimum age of 55 as 

of the date of the Distressed Employer’s termination of 

participation in the Fund (see Section 2(C)(2) below) and 

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(ii) has accrued a minimum of 25 years credit towards a 

Contributory Credit Pension or an And-Out Pension as of 

that date (see Pension Plan §§ 4.04, 4.05 and 4.06), shall 

be entitled to retain his eligibility for (but not gain further 

credit towards) any such Pension, provided that any such 

Participant has a minimum retirement age of 62.

 2. Contributions and Qualifications for the Distressed Employer 

 Schedule. 

The Board of Trustees may deem a Collective Bargaining Agreement with 

contribution rates not in compliance with either the Primary Schedule or 

the Default Schedule to be in compliance with and subject to the 

Distressed Employer Schedule, if in the Board of Trustees’ sole 

discretion, the Board determines that the Contributing Employer meets 

each of the following qualifications: 

(i) the common stock of the Employer or its parent corporation (or 

other affiliate under 80% or more common control with the 

Employer) is publicly traded and registered pursuant to the 

securities laws of the United States; 

(ii) the Employer has previously incurred a termination of its 

participation in the Fund due to an inability to remain current in its 

Contribution obligations, and the Employer was in terminated 

status immediately prior to executing the Agreement sought to be 

qualified under the Distressed Employer Schedule; 

(iii) during the last ten years in which the Employer participated in the 

Fund prior to its termination, it had paid contributions to the Fund 

on behalf of at least 1,000 full-time employees per month (or had, 

including part-time employees, paid contributions on behalf of the 

equivalent of at least 1,000 full-time employees per month for the 

specified ten year period); 

(iv) the Employer submits to a review of its financial condition and 

operations by the Fund’s Staff and outside expert and consultants, 

and agrees to reimburse the Fund for all fees and expenses 

incurred by the Fund in this review (including, but not limited to, 

reimbursement to the Fund for the time devoted by the Fund’s 

Staff to any such review, with this reimbursement to be made at 

market rates for comparable services performed by Fund’s Staff); 

(v) on the basis of this financial and operational review, it appears 

that the Employer is not able to contribute to the Fund at a higher 

rate than is indicated in the Collective Bargaining Agreement 

proposed for acceptance under the Distressed Employer 

Schedule, and that acceptance of the proposed Agreement is in 

the best interest of the Fund under all the circumstances and 

advances the goals of this Rehabilitation Plan; and 

(vi) the Employer provides the Fund with first lien collateral in any and 

all unencumbered assets to the fullest extent it is able in order to 

fully secure (i) any delinquent or deferred Contribution obligations 

owed to the Fund, (ii) the Employer’s obligation to make current 

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and future pension contributions to the Fund, and (iii) any future 

withdrawal liability potentially incurred by the Employer (with the 

amount of such potential withdrawal liability to be determined 

based on estimates to be provided by the Fund). 

3. Effect of agreement to or imposition of the Distressed Employer 

Schedule. 

If a Contributing Employer becomes subject to the Distressed Employer 

Schedule with respect to a particular Bargaining Unit, the Fund will not 

accept any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, except as 

determined by the Board of Trustees in their sole discretion.

D. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER 

 INCURRING A REHABILITATION PLAN WITHDRAWAL. 

Subject to the provisos indicated in the final clauses of this Subsection D, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Subsection B(1) 

above) with respect to Participants whose benefit commencement date [within 

the meaning of ERISA § 305(i)(10)] with the Fund is on or after April 8, 2008, 

and: 

(1) whose last Hour of Service prior to January 1, 2008 was earned while 

employed by United Parcel Service, Inc. (“UPS”), or with any trades or 

businesses at any time under common control with UPS, within the 

meaning of ERISA § 4001(b)(1); or

(2) who (i) has earned or earns an Hour of Service while employed with a 

Contributing Employer (or any predecessor or successor entity) that at 

any time on or after March 26, 2008 incurs a Rehabilitation Plan 

Withdrawal (see Section 2.I below), and (ii) whose last year of 

Contributory Service Credit prior to the Rehabilitation Plan Withdrawal 

was earned while a member of a Bargaining Unit (or any predecessor or 

successor Bargaining Unit) ultimately incurring such Withdrawal. 

Proviso 1: Provided, however, that any Pensioner otherwise subject to the 

elimination of Adjustable Benefits, due to a Rehabilitation Plan Withdrawal 

pursuant Section 2(D)(2) above, who has a benefit commencement date [within 

the meaning of ERISA § 305(i)(10)] one year or more prior to the earlier of: (i) the 

date of such Rehabilitation Plan Withdrawal or (ii) the date of the expiration of the 

last Collective Bargaining Agreement requiring Employer Contributions under the 

Primary Schedule prior to such Withdrawal, shall not be subject to the elimination 

of Adjustable Benefits provided that the Pensioner does not engage in Restricted 

Reemployment at any time subsequent to the benefit commencement date. 

Proviso 2: And provided further that in the event of a Rehabilitation Plan 

Withdrawal resulting from an administrative termination of a Contributing 

Employer as referenced in Section 2(I)(3)(ii) below, the Board of Trustees shall 

have full discretionary authority (A) to decline to apply the elimination of 

Adjustable Benefits to Participants otherwise affected by a Rehabilitation Plan 

Withdrawal of this type who have submitted a pension application naming a 

Retirement Date to the Fund on or before the date selected by the Trustees as 

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the effective date of the administrative termination which ended the Employer’s 

obligation to contribute to the Pension Fund, and (B) to decline to apply the 

requirement of Section 2(G) below that a Participant incurring a benefit 

adjustment due to Rehabilitation Plan Withdrawal must cease employment with 

and the performance of services for the withdrawn Employer within 60 days of 

the Rehabilitation Plan Withdrawal in order to eventually qualify for a restoration 

of benefits; in exercising their discretionary authority under this Proviso 2, the 

Board of Trustees shall consider, weigh and balance the following factors: 

(i) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination were aware of, participated in or 

controlled, or could have controlled or prevented, through 

bargaining, grievance procedures, NLRB proceedings, litigation or 

other means, the circumstances that led to the administrative 

termination of the Employer; 

(ii) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination benefited, directly or indirectly from the 

cessation of Employer Contributions or from the circumstances 

that led to the administrative termination of the Employer; 

(iii) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination resisted or attempted to alter, or 

acquiesced in, the circumstances that led to the administrative 

termination of the Employer; 

(iv) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination have become engaged as employees 

or independent contractors in the service of operations that were 

or are in whole or in part a successor of the operations of the 

Employer that has undergone the administrative termination; and 

(v) the extent of the hardship that might be incurred by any actively 

employed members of the affected Bargaining Unit or by any 

members who submitted a retirement application prior to the 

effective date of the administrative termination due to the 

elimination of Adjustable Benefits. 

Proviso 3: And provided further that the spouse of any Participant otherwise 

subject to the elimination of Adjustable Benefits, due to a Rehabilitation Plan 

Withdrawal pursuant to Subsection D(2) above, shall not incur a loss of 

Adjustable Benefits with respect to any Surviving Spouse Benefits for which such 

spouse has a benefit commencement date [within the meaning of ERISA Section 

305(i)(10)] prior to the date of the Rehabilitation Plan Withdrawal. 

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E. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO BECOMES 

SUBJECT TO THE DEFAULT SCHEDULE. 

Subject to the provisos indicated in the final clauses of this Subsection E, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Section B(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and: 

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Default Schedule 

described herein; and 

(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Default Schedule was earned while a member of 

a Bargaining Unit (or any predecessor or successor Bargaining Unit) that 

ultimately became subject to the Default Schedule. 

Proviso 1: Provided, however, that any Pensioner otherwise subject to the 

elimination of Adjustable Benefits, due to his Contributing Employer becoming 

subject to the Default Schedule pursuant to this Subsection E, who has a benefit 

commencement date [within the meaning of ERISA § 305(i)(10)] one year or 

more prior to the Contributing Employer becoming subject to the Default 

Schedule, shall not be subject to the elimination of Adjustable Benefits provided 

that the Pensioner does not engage in Restricted Reemployment at any time 

subsequent to the benefit commencement date. 

Proviso 2: And provided further that the spouse of any Participant otherwise 

subject to the elimination of Adjustable Benefits, due to his Contributing 

Employer becoming subject to the Default Schedule pursuant this Subsection E, 

shall not incur a loss of Adjustable Benefits with respect to any Surviving Spouse 

Benefits for which such spouse has a benefit commencement date [within the 

meaning of ERISA Section 305(i)(10)] prior to the date on which the Contributing 

Employer became subject to the Default Schedule. 

F. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO BECOMES 

SUBJECT TO THE DISTRESSED EMPLOYER SCHEDULE. 

Subject to the provisos indicated in the final clauses of this Subsection F, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (with the exception indicated in Section 2(C)(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and: 

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Distressed Employer 

Schedule described herein; and 

(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Distressed Employer Schedule was earned while 

a member of a Bargaining Unit (or any predecessor or successor 

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Bargaining Unit) that ultimately became subject to the Distressed 

Employer Schedule. 

Proviso 1: Provided, however, that any Pensioner otherwise subject to the 

reduction in Adjustable Benefits indicated in the Distressed Employer Schedule, 

due to his Contributing Employer becoming subject to that Schedule pursuant to 

this Subsection F, who has a benefit commencement date [within the meaning of 

ERISA Section 305(i)(10)] one year or more prior to the Contributing Employer 

becoming subject to the Distressed Employer Schedule, shall not be subject to 

the reduction of Adjustable Benefits otherwise mandated by the Distressed 

Employer Schedule provided that the Pensioner does not engage in Restricted 

Reemployment at any time subsequent to the benefit commencement date, and 

provided further that with respect to Bargaining Units that become subject to the 

Distressed Employer Schedule on or prior to June 1, 2011, no Pensioners with 

Retirement Dates prior to September 24, 2010 shall be subject to such 

Distressed Employer Schedule benefit reduction. 

Proviso 2: And provided further that the spouse of any Participant otherwise 

subject to the reduction of Adjustable Benefits, due to his Contributing Employer 

becoming subject to the Distressed Employer Schedule pursuant to this 

Subsection F, shall not incur a loss of Adjustable Benefits with respect to any 

Surviving Spouse Benefits for which such surviving spouse has a benefit 

commencement date [within the meaning of ERISA Section 305(i)(10)] prior to 

the date on which the Contributing Employer became subject to the Distressed 

Employer Schedule, and provided further in any event that with respect to 

Bargaining Units that become subject to the Distressed Employer Schedule on or 

prior to June 1, 2011, no spouse shall be subject to such Distressed Employer 

Schedule benefit reduction if the Participant’s death occurred prior to September 

24, 2010. 

G. RESTORATION OF ADJUSTED BENEFITS. 

Any Participant who incurs a benefit adjustment or elimination under the terms of 

Sections 2(A), 2(B), 2(C), 2(D), 2(E) or 2(F) above may have those affected 

benefits restored if, subsequent to the event causing the benefit adjustment, the 

Participant: 

(1) in the case of benefit adjustment caused by a Rehabilitation Plan 

Withdrawal (see Section 2(I) below), permanently ceases all employment 

with, and performance of services in any capacity for, the Contributing 

Employer (and any successors or trades or businesses under common 

control with such Employer within the meaning of ERISA § 4001(b)(1)) 

within 60 days of the occurrence of such Rehabilitation Plan Withdrawal; 

and 

(2) in any case, subsequently earns one year of Contributory Service Credit 

with a Contributing Employer while that Employer is in compliance with 

the Primary Schedule described herein. 

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 H. ADJUSTABLE BENEFITS.

As used herein, Adjustable Benefits shall mean and include: 

(1) Any right to receive a Retirement Pension Benefit (Pension Plan, Article 

IV) prior to age 65 [including without limitation any pre-age 65 benefits 

that would otherwise be payable as (i) a Twenty Year Service Pension 

(Pension Plan § 4.01); (ii) a Contributory Credit Pension (Pension Plan § 

4.04); (iii) a Vested Pension (Pension Plan § 4.07); (iv) a Deferred 

Pension (Pension Plan § 4.08); or (v) a Twenty-Year Deferred Pension 

(Pension Plan § 4.09)]. 

(2) Early retirement benefit or retirement-type subsidies [including without 

limitation (i) an Early Retirement Pension (Pension Plan Section 4.02); (ii)

a 25-And-Out Pension (Pension Plan Section 4.05); or a 30-And-Out 

Pension (Pension Plan Section 4.06)]. 

(3) All Disability Benefits not yet in pay status (Pension Plan, Article V). 

(4) Before Retirement Death Benefits (Pension Plan, Article VI) other than 

the 50% surviving spouse benefit. 

(5) Post-retirement death benefits that are not part of the annuity form of 

payment. 

(6) All Partial Pensions (Pension Plan, Appendix D), to the extent any such 

pension is tied to one or more of the Adjustable Benefits listed above. 

(7) All Contribution-Based Pensions (Pension Plan § 4.03) except that, 

assuming the Participant meets all other requirements for receiving a 

Contribution-Based Pension, the Contribution-Based Pension is payable 

at age 65 reduced by 1⁄2% per month for each month prior to age 65 at the 

time of retirement with a minimum retirement age of 57. Such minimum 

retirement age shall not apply if the Participant retired prior to age 57 

before the Participant’s Adjustable Benefits were eliminated or reduced. 

In such circumstance, the Participant shall be entitled to receive the 

Contribution-Based Pension reduced by 1⁄2% per month for each month 

prior to age 65 at the time of retirement. Provided, however, for 

Participants who (i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) do not have a benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] on or before July 1, 2011, the 

reductions in the Contribution-Based Pensions payable at age 65 

referenced in this subparagraph (7) shall be based on actuarial 

equivalence in accordance with the Schedule attached as Exhibit B 

hereto. 

(8) To the extent not already included in paragraphs (1) – (7) above, the 

following categories of benefits listed and defined as “adjustable benefits” 

under ERISA § 305(e)(8)(iv): 

(i) benefits, rights, and features under the plan, including postretirement death benefits, 60-month guarantees, disability benefits 

not yet in pay status, and similar benefits, 

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(ii) any early retirement benefit or retirement-type subsidy (within the 

meaning of ERISA Section 204(g)(2)(A)) and any benefit payment 

option (other than the qualified joint and survivor annuity), and 

(iii) benefit increases that would not be eligible for a guarantee under 

ERISA Section 4022A on the first day of the Fund’s initial critical 

year under the PPA because the increases were adopted (or, if 

later, took effect) less than 60 months before such first day. 

Provided, however, that except as provided in subparagraph (8)(iii) above, nothing in this 

paragraph shall be construed to reduce the level of a Participant’s accrued benefit 

payable at normal retirement. 

I. REHABILITATION PLAN WITHDRAWAL. 

Subject to the discretionary authority of the Board of Trustees indicated in the 

final clause of this Subsection I, a “Rehabilitation Plan Withdrawal” occurs on the 

date a Contributing Employer (a) is no longer required to make Employer 

Contributions to the Pension Fund under one or more of its Collective Bargaining 

Agreements, or (b) undergoes a significant reduction in its obligation to make 

Employer Contributions resulting from outsourcing or subcontracting work 

covered by the applicable Collective Bargaining Agreement(s), as a result of 

actions by members of a Bargaining Unit (or its representatives) or the 

Contributing Employer, which actions include, but are not limited to the following: 

(1) decertification or other removal of the Union as a bargaining agent; 

(2) ratification or other acceptance of a Collective Bargaining Agreement 

which permits withdrawal of the Bargaining Unit, in whole or in part, from 

the Pension Plan; 

(3) administrative termination of the Contributing Employer with respect to 

any or all of its Collective Bargaining Agreements due to: (i) a violation of 

the Fund’s rules with respect to the terms of a Collective Bargaining 

Agreement [including, without limitation, a provision providing for a split 

bargaining unit]; or (ii) a violation of any other Fund rule or policy 

[including, without limitation, practices or arrangements that result in 

adverse selection]; 

(4) any transaction or other event [including without limitation, a merger, 

consolidation, division, asset sale (other than an asset sale complying 

with ERISA § 4204), liquidation, dissolution, joint venture, outsourcing, 

subcontracting] whereby all or a portion of the operations for which the 

Contributing Employer has an obligation to contribute are continued 

(whether by the Contributing Employer or by another party) in whole or in 

part without maintaining the obligation to contribute to the Fund under the 

same or better terms (including, for example, as to number of participants 

and contribution rate) as existed before the transaction; 

Provided, however, that with respect to the circumstances described in 

Subparagraphs. (3)(ii) or (4) above, the Board of Trustees shall have full 

discretionary authority to consider, weigh and balance the following factors in 

determining whether a Rehabilitation Plan Withdrawal has occurred: 

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(i) the extent to which the affected Bargaining Unit or its bargaining 

representative participated in or controlled, or could have controlled or 

prevented, through bargaining, grievance procedures, NLRB 

proceedings, litigation or other means, the cessation of Employer 

Contributions; 

(ii) the extent to which the affected Bargaining Unit benefited, directly or 

indirectly, from the cessation of Employer Contributions; 

(iii) the extent to which the affected Bargaining Unit, or its bargaining 

representative, resisted or attempted to resist, or acquiesced in, the 

cessation of Employer Contributions; 

(iv) the extent to which the affected Bargaining Unit, or any of its members, 

become engaged as employees or independent contractors in the service 

of operations that were or are in whole or in part a successor of the 

operations of the Contributing Employer who incurred the cessation of 

Employer Contributions; and 

(v) the extent of the hardship that might be incurred by members of the 

affected Bargaining Unit by the elimination of Adjustable Benefits. 

J. BENEFIT ADJUSTMENTS APPLICABLE TO ALL 

PARTICIPANTS (INCLUDING INACTIVE VESTED 

 PARTICIPANTS) WHO HAVE NOT SUBMITTED A 

RETIREMENT APPLICATION ON OR BEFORE JULY 1, 2011 

AND DO NOT HAVE A BENEFIT COMMENCEMENT ON OR 

BEFORE THAT DATE. 

Minimum Retirement Age 57. 

Participants who (i) have not submitted a retirement application on or before July 

1, 2011 and (ii) do not have a benefit commencement date [within the meaning of 

ERISA § 305(i)(10)] on or before July 1, 2011, will not be granted a Retirement 

Date prior to their 57th birthday and will not be eligible to receive retirement 

benefit payments of any type until after achieving age 57. 

Section 3. REHABILITATION PLAN STANDARDS AND OBJECTIVES. 

The Schedules of Contributions and Benefits discussed above have been formulated by 

the Fund’s Board of Trustees as reasonable measures which, under reasonable 

actuarial assumptions, are designed and projected to forestall the possible insolvency of 

the Fund prior to 2023. Projections of insolvency may vary from year to year as actual 

experience may differ from assumptions. 

The Trustees recognize the possibility that actual experience could be less favorable 

than the reasonable assumptions used for the Rehabilitation Plan on an annual basis. 

Consequently, the annual standards for meeting the requirements of the Rehabilitation 

Plan are as follows: 

 Actuarial projections updated for each year show, based on reasonable 

assumptions, that under the Rehabilitation Plan and its schedules (as amended 

36.1.207
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TM:538126 / 01096280 / 01/01/2015 Appendix M-3 (Page 13 of 17)

and updated from time to time) the Fund will forestall its possible insolvency prior

to 2021. 

Section 4. ALTERNATIVES CONSIDERED BY THE TRUSTEES. 

The Board of Trustees considered numerous alternatives [including combinations of 

contribution rate increases (and other updates to the schedules of contribution rates in 

light of the experience of the Fund) and benefit adjustments] that might enable the Fund 

to emerge from Critical Status either by the end of ten year PPA Rehabilitation Period 

(which began on January 1, 2011 and ends on December 31, 2020), or to forestall 

possible insolvency indefinitely (beyond the date referenced above under the “Standards 

and Objectives” heading). Some of the alternatives considered were determined to be 

unreasonable measures. The various default and alternative schedules considered 

included the following: 

Schedules considered by the Board of Trustees in formulating an initial 2008 

rehabilitation plan that might permit the Fund to emerge by the end of the Rehabilitation 

Period on December 31, 2020: 

Schedule Benefit Reductions Contribution Rate Increases 

Default Immediate maximum Critical Status benefit cuts 

for all participants to the extent permitted by law 15% per year until emergence 

in 2021 (plus an additional 1.6% 

annual increase for Benefit 

Classes 14 and below) 

Alternative 1 Maintain current benefits 17% per year until emergence in 

2021 

Alternative 2 On the second anniversary of the new bargaining 

agreement, reduce the future benefit accrual rate 

from 1% of contributions payable at age 62 to 1% 

of contributions at payable at age 65 

16% per year until emergence in 

2021 

36.1.208
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TM:538126 / 01096280 / 01/01/2015 Appendix M-3 (Page 14 of 17)

In formulating the Fund’s initial rehabilitation plan in 2008, the Board of Trustees 

concluded that utilizing any and all possible measures to emerge from Critical Status by 

the end of the 10-year presumptive Rehabilitation Period described in ERISA Section 

305(e)(4), would be unreasonable and would involve considerable risk to the Fund and 

Fund participants. In particular, the Board of Trustees concluded that the continued 

existence of the Fund and the Trustees’ ability to maintain and improve the Fund’s 

funded status in accordance with the terms of the IRS approved amortization extension 

would be jeopardized by any attempt to emerge from critical status by the end of the 

presumptive 10-year Rehabilitation Period. 

As shown above, based on January 1, 2008 valuation data, the emergence by the end of 

the presumptive 10 year Rehabilitation Period would require double-digit annual 

contribution rate increases. For example, the daily contribution rate would generally have 

to grow from $52 to over $300. Therefore, the Trustees concluded in 2008 that annual 

contribution rate increases above the 8%/6%/4% level in the Primary Schedule were not 

reasonable and could trigger mass withdrawals and significant losses to the Fund and 

the participants. 

During the process of updating the rehabilitation plan in 2010, and again in 2011, the 

Trustees concluded that in light of current valuation data, the experience of the Fund and 

projections, the option available to the Fund under ERISA Section 305(e)(3)(ii) was to 

pursue reasonable measures to forestall a possible insolvency. The Trustees also 

concluded during the 2010 and 2011 update process that requiring annual contribution 

increases above the level described in the Primary Schedule would not be reasonable 

and would likely accelerate a possible insolvency of the Fund rather than forestall it. 

In recent years, prior to Plan/calendar year 2011, the Trustees have implemented 

numerous measures to improve the Fund’s funding. These have included: 

 Reducing the benefit accrual rate from 2% of contributions to 1% of contributions; 

 Protecting the “and-out” and early retirement benefits while freezing them at their 

year-end 2003 levels; 

 Obtaining agreements from the major bargaining parties to reallocate about $400 

million per year of benefit contributions to the Pension Fund; 

 Obtaining an amortization extension from the Internal Revenue Service in 2005, and 

seeking a waiver of the conditions of that extension in 2009 in light of anticipated 

investment losses resulting from the 2008 collapse of the financial markets; 

 Requiring as a condition of continued participation in the Fund that new bargaining 

agreements in the last several years include significant annual contribution rate 

increases; and 

 Providing information to Congress and federal agencies with respect to legislative or 

regulatory proposals that appear to assist in addressing the funding challenges 

confronting the Fund. 

And specifically during the Plan/calendar year 2011, the Trustees have, in addition to 

continuing with the implementation of the measures listed above, implemented the 

following measures to improve the Fund’s funding: 

36.1.209
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TM:538126 / 01096280 / 01/01/2015 Appendix M-3 (Page 15 of 17)

 Approved a Distressed Employer Schedule as part of the Fund’s Rehabilitation 

Plan. Pursuant to this Schedule, YRC, Inc. and its affiliate USF Holland, Inc., two 

distressed (but historically significant) Contributing Employers whose 

participation in the Fund the Trustees had been terminated by the Board of 

Trustees in July 2009 due to chronic contribution delinquencies, were permitted 

to resume Contributions at a rate lower than would have been permitted under 

the pre-2011 Rehabilitation Plan Schedules. The Trustees determined that this 

Contribution rate was the highest these Employers could pay without unduly 

risking their insolvency and dissolution. Therefore, the Trustees permitted these 

Employers to resume contributions in June 2011 at these lower rates under a 

newly approved Distressed Employer Schedule; this Schedule significantly 

adjusted the benefits of the affected Bargaining Unit members, and helped 

assure that despite the lower Contribution rates, the continued participation of 

these Employers would improve the Fund’s funding. 

 Adopted a new withdrawal liability method, and obtained approval of that method 

by the Pension Benefit Guaranty Corporation, under which new Contributing 

Employers, and existing Contributing Employers who satisfy their withdrawal 

liability under the Fund’s historic (pre-2011) withdrawal liability method (i.e., the 

“modified presumptive method”), will have any future withdrawal liability 

determined under the “direct attribution” method. Under direct attribution method, 

the Trustees believe that a Contributing Employer’s potential exposure to future 

withdrawal is virtually eliminated. The Trustees believe that this new “hybrid” 

method will be attractive to some Contributing Employers who wish to continue to 

participate in the Fund, but may be concerned about the potential for future 

growth of their estimated withdrawal liability as calculated under the Fund’s prior 

(pre-2011) withdrawal liability method. This, in turn, will tend to improve the 

Fund’s funding position as Employers who might otherwise withdraw from the 

Fund are encouraged to continue to participate. 

The Board of Trustees determined that mandating additional significant benefit cuts 

(beyond those provided in this updated rehabilitation plan), or mandating contribution 

rate increases at levels beyond those required in recent years, would substantially 

accelerate the rate at which employers would withdraw from the Fund, in large part 

because the Union could conclude that it would be in its members’ best interest to agree 

to withdrawals. The Board of Trustees also determined that this acceleration of employer 

withdrawals would, in turn, accelerate the Fund’s insolvency and would be 

counterproductive to the Trustees’ effort to forestall insolvency. 

36.1.210
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TM:538126 / 01096280 / 01/01/2015 Appendix M-3 (Page 16 of 17)

EXHIBIT A 

Primary Schedule: Contribution Rate Increases By Bargaining Agreement Year 

(all rate increases are to be compounded annually) 

Calendar Year of 

Contribution 

Rate Increase 

Year of Initial Bargaining Agreement Conforming to Primary Schedule 

2006 & 

Earlier 2007 2008 2009 2010 2011 2012 

2006 7% 

2007 7% 8% 

2008 7% 8% 8% 

2009 7% 8% 8% 8% 

2010 7% 8% 8% 8% 8% 

2011 6% 8% 8% 8% 8% 8% 

2012 5% 6% 8% 8% 8% 8% 8% 

2013 4% 4% 6% 8% 8% 8% 8% 

2014 4% 4% 6% 8% 8% 8% 8% 

2015 4% 4% 6% 8% 8% 8% 8% 

2016 4% 4% 4% 6% 8% 8% 8% 

2017 4% 4% 4% 4% 6% 8% 8% 

2018 4% 4% 4% 4% 4% 6% 8% 

2019 4% 4% 4% 4% 4% 4% 6% 

2020 4% 4% 4% 4% 4% 4% 4% 

2021 4% 4% 4% 4% 4% 4% 4% 

2022 4% 4% 4% 4% 4% 4% 4% 

2023 4% 4% 4% 4% 4% 4% 4% 

2024 4% 4% 4% 4% 4% 4% 4% 

2025 4% 4% 4% 4% 4% 4% 4% 

2026 4% 4% 4% 4% 4% 4% 4% 

2027 4% 4% 4% 4% 4% 4% 4% 

36.1.211
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TM:538126 / 01096280 / 01/01/2015 Appendix M-3 (Page 17 of 17)

EXHIBIT B 

Schedule for Actuarial Reduction of Age 65 Benefits 

(applicable to Default Schedule and Rehabilitation Plan 

Withdrawal benefit adjustments for Participants who 

(i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) do not have a benefit commencement 

date [within the meaning of ERISA § 305(i)(10)] on or before July 1, 2011) 

 Percent of Age 65 Benefit Based on 

 Age Actuarial Equivalence 

 65 100% 

 64 90% 

 63 81% 

 62 74% 

 61 67% 

 60 61% 

 59 55% 

 58 50% 

 57 46% 

36.1.212
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 1 of 19)

APPENDIX M-4. REHABILITATION PLAN (INCLUDING 2012 UPDATE) 

Section 1. PREAMBLE AND DEFINITIONS. 

 Appendix M comprising the Rehabilitation Plan was added to the Pension Plan effective 

on and after March 26, 2008, and has been amended from time to time since then. 

 This Appendix M-4 is added to the Pension Plan effective on and after December 31, 

2012 in order to update the Rehabilitation Plan in compliance with the requirements of 

the Pension Protection Act of 2006 (“PPA”). 

 The Central States, Southeast and Southwest Areas Pension Fund (the “Fund”) was 

initially certified on March 24, 2008 by its actuary to be in “critical status” (sometimes 

referred to as the “red zone”) under the PPA: the Fund’s actuary has also certified the 

Fund to be in critical status in March of each subsequent year through March 2012. The 

Fund’s Board of Trustees, as the plan sponsor of a “critical status” pension plan, is 

charged under the PPA with developing a “rehabilitation plan” designed to improve the 

financial condition of the Fund in accordance with the standards set forth in the PPA, 

and with annually updating the rehabilitation plan. Although for plan year 2009 the Fund 

was exempt from the update requirement, pursuant to an election under the Worker 

Retiree and Employer Recovery Act of 2008, for subsequent plan years the PPA 

provisions concerning the rehabilitation plan update process are applicable to the Fund. 

The purpose of this updated Rehabilitation Plan is to comply with those PPA provisions. 

 Under the PPA, a rehabilitation plan, including annual updates to the plan, must include 

one or more schedules showing revised benefit structures, revised contributions, or both, 

which, if adopted by the parties obligated under agreements participating in the pension 

plan, may reasonably be expected to enable the Fund to emerge from critical status in 

accordance with the rehabilitation plan. The PPA also provides that one of the 

rehabilitation plan schedules of benefits and contributions shall be designated the 

“default” schedule. The default schedule must assume that there are no increases in 

contributions under the plan other than the increases necessary to emerge from critical 

status after future benefit accruals and other benefits have been reduced to the 

maximum extent permitted by law. The PPA also creates certain categories of 

“adjustable benefits” which may be reduced or eliminated dependent upon the outcome 

of bargaining over the rehabilitation plan schedules and dependent on the exercise of 

certain flexibility and discretion conferred upon the Board of Trustees by the PPA 

Adjustable benefits that may be affected in this manner include post-retirement death 

benefits, early retirement benefits or retirement-type subsidies, and generally any benefit 

that would be payable prior to normal retirement age (age 65 benefits under the Fund’s 

Plan Document - or, as discussed below, a Contribution Based Benefit actuarially 

reduced to be equivalent to an age 65 benefit). As noted, the PPA also requires annual 

updates of the rehabilitation plan. 

 Unless otherwise indicated, all capitalized terms herein shall have the definitions and 

meanings assigned to them in the Fund’s Pension Plan Document. 

36.1.213
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 2 of 19)

Section 2. SCHEDULES OF CONTRIBUTIONS AND BENEFITS. 

 With the PPA requirements outlined above in mind, the Fund’s Board of Trustees 

hereby provides the following PPA Schedules to the parties charged with bargaining 

over agreements requiring contributions to the Fund.

A. PRIMARY SCHEDULE (EXCEPT AS NOTED, PRESERVES 

ALL CURRENT BENEFITS).

1. Benefits

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers are in 

compliance with this Primary Schedule, there will be no change in benefit 

formulas, levels or payment options in effect on January 1, 2008, except 

that as provided in Section 2(J) below, Participants who (i) have not 

submitted a retirement application on or before July 1, 2011 and (ii) do 

not have a benefit commencement date (within the meaning of ERISA § 

305(i)(10)) on or before July 1, 2011, will not be granted a Retirement 

Date prior to their 57th birthday and will not be eligible to receive 

retirement benefit payments of any type until after achieving age 57.

Further, subject to the notice requirements of the PPA and other 

applicable law, any Bargaining Units (and any non-Bargaining Unit 

employee groups participating in the Fund) whose Contributing 

Employers incur a Rehabilitation Plan Withdrawal on or after March 26, 

2008 shall have their Adjustable Benefits listed in Section 2(H) below 

eliminated or reduced to the extent indicated in Section 2(B)(1) below.

2. Contributions

Compliance with the Primary Schedule requires annually compounded 

contribution rate increases in accordance with Exhibit A effective 

immediately after the expiration of the Collective Bargaining Agreement 

(or other agreement requiring contributions to the Fund) and each 

agreement anniversary date (or reallocation anniversary, where 

applicable) during the term of the new bargaining agreement to the 

extent indicated in Exhibit A, depending on the year that the new 

agreement is effective. Note that all contribution rate increases are 

annually compounded on the total contribution rate (including any 

reallocations of employee benefit contributions or agreed mid-contract 

contribution increases) immediately prior to the increase.

The required annual rate increase may be provided through annual 

allocations to pension contributions of general and aggregate employee 

benefit contribution increases that were negotiated at the outset of an 

agreement, but were not specifically allocated to pension contributions 

until subsequent contract years. The Primary Schedule requires 8% per 

year contribution rate increases for the first 5 years, 6% per year 

contribution rate increases for the next 3 years and 4% per year 

contribution rate increases each year thereafter for 2008 agreements 

under the Primary Schedule and comparable rate increases over time for 

all other agreements under the Primary Schedule (see Exhibit A).

36.1.214
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 3 of 19)

Provided, however, that absent further amendment to this rehabilitation 

plan, as of June 1, 2011, any Collective Bargaining Agreement requiring 

contributions of (1) $348 per week for each full-time employee with 

respect to Participants covered by the National Master Automobile 

Transporter Agreement, and (2) $342 per week for each full-time 

employee with respect to all other Participants, will be deemed to be in 

compliance with the Primary Schedule without the need for additional 

annual rate increases. 

Provided further that any Employer that qualifies as a New Employer 

under § 2.2(b) of Appendix E of the Pension Plan will be deemed, as of 

the date it qualifies as a New Employer, to be in compliance with the 

Primary Schedule without the need for additional contribution rate 

increases. 

B. DEFAULT SCHEDULE.

1. Benefits

With regard to Bargaining Units (and any non- Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers agree to 

comply with this Default Schedule [or who become subject to the Default 

Schedule due to a failure to achieve an agreement to accept one of the 

Rehabilitation Plan Schedules within the time frame specified under 

ERISA § 305(e)(3)(C)], the benefit formulas, levels, and payment options 

in effect on January 1, 2008 will remain in effect except for the following, 

upon the effective date that the Default Schedule applies to the 

Bargaining Unit (or to any non-Bargaining Unit employee groups 

participating in the Fund):

• Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of contributions 

(the Contribution-Based Pension) remains in effect, with the 

modification that the Contribution Based Pension monthly 

benefit payable at age 65 is reduced by 1/2% per month for 

each month prior to age 65 with a minimum retirement age of 

57, except that, for Participants who (i) have not submitted a 

retirement application on or before July 1, 2011 and (ii) do 

not have a benefit commencement date [within the meaning 

of ERISA § 305(i)(10)] on or before July 1, 2011, the 

Contribution Based Pension monthly benefit payable at age 

65 shall be reduced to an actuarially equivalent benefit in 

accordance with the Schedule attached as Exhibit B with a 

minimum retirement age of 57.

2. Contributions

 Compliance with the Default Schedule consists of annually compounded 

contribution rate increases of 4% effective immediately after the 

expiration of the Collective Bargaining Agreement (or other agreement 

requiring contributions to the Fund) and each anniversary thereof during 

the term of the agreement. 

36.1.215
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 4 of 19)

3. Effect of agreement to or imposition of Default Schedule.

(i) If a Contributing Employer agrees to the Default Schedule with 

respect to a particular Bargaining Unit, the Fund will not accept 

any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, 

except as determined by the Board of Trustees in their sole 

discretion.

(ii) If a Contributing Employer becomes subject to the Default 

Schedule by operation of ERISA Section 305(e)(3)(C), because 

the bargaining parties have failed to adopt either of the 

Schedules compliant with this Rehabilitation Plan within 180 days 

of the expiration of their prior Collective Bargaining Agreement, 

the Fund will then accept a Collective Bargaining Agreement that 

is compliant with the Primary Schedule described in this 

Rehabilitation Plan, provided that such new Collective Bargaining 

Agreement provides for Primary Schedule contribution rates that 

are retroactive to the expiration date of the last Collective 

Bargaining Agreement that covered the affected Bargaining Unit.

C. DISTRESSED EMPLOYER SCHEDULE.

1. Benefits

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers and 

contribution rates have been specifically accepted and approved by the 

Board of Trustees as satisfying the Qualifications for the Distressed 

Employer Schedule (as set forth in Section 2(C)(2) below), the benefit 

formulas, levels, and payment options in effect on January 1, 2008 will 

remain in effect except for the following, upon the effective date that the 

Distressed Employer Schedule applies to the Bargaining Unit (or to any 

non-Bargaining Unit employee group participating in the Fund) that is 

accepted by the Board of Trustees as qualifying under the Distressed 

Employer Schedule:

• Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of contributions 

(the Contribution-Based Pension) remains in effect, with the 

modification that the Contribution Based Pension monthly 

benefit payable at age 65 is reduced by 1⁄2% per month for 

each month prior to age 65 with a minimum retirement age of 

57, except that, for Participants who (i) have not submitted a 

retirement application on or before July 1, 2011 and (ii) have 

not achieved a Retirement Date on or before July 1, 2011, 

the Contribution Based Pension monthly benefit payable at 

age 65 shall be reduced to an actuarially equivalent benefit in 

accordance with the Schedule attached as Exhibit B with a 

minimum retirement age of 57, and except that any 

Participant who (i) has achieved a minimum age of 55 as of 

the date of the Distressed Employer’s termination of 

participation in the Fund (see Section 2(C)(2) below) and (ii) 

36.1.216
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 5 of 19)

has accrued a minimum of 25 years credit towards a 

Contributory Credit Pension or an And-Out Pension as of that 

date (see Pension Plan §§ 4.04, 4.05 and 4.06), shall be 

entitled to retain his eligibility for (but not gain further credit 

towards) any such Pension, provided that any such 

Participant has a minimum retirement age of 62.

2. Contributions and Qualifications for the Distressed 

Employer Schedule.

The Board of Trustees may deem a Collective Bargaining Agreement 

with contribution rates not in compliance with either the Primary 

Schedule or the Default Schedule to be in compliance with and subject 

to the Distressed Employer Schedule, if in the Board of Trustees’ sole 

discretion, the Board determines that the Contributing Employer meets 

each of the following qualifications:

(i) the common stock of the Employer or its parent corporation (or 

other affiliate under 80% or more common control with the 

Employer) is publicly traded and registered pursuant to the 

securities laws of the United States; 

(ii) the Employer has previously incurred a termination of its 

participation in the Fund due to an inability to remain current in 

its Contribution obligations, and the Employer was in terminated 

status immediately prior to executing the Agreement sought to 

be qualified under the Distressed Employer Schedule; 

(iii) during the last ten years in which the Employer participated in 

the Fund prior to its termination, it had paid contributions to the 

Fund on behalf of at least 1,000 full-time employees per month 

(or had, including part-time employees, paid contributions on 

behalf of the equivalent of at least 1,000 full-time employees 

per month for the specified ten year period); 

(iv) the Employer submits to a review of its financial condition and 

operations by the Fund’s Staff and outside expert and 

consultants, and agrees to reimburse the Fund for all fees and 

expenses incurred by the Fund in this review (including, but not 

limited to, reimbursement to the Fund for the time devoted by the 

Fund’s Staff to any such review, with this reimbursement to be 

made at market rates for comparable services performed by 

Fund’s Staff);

(v) on the basis of this financial and operational review, it appears 

that the Employer is not able to contribute to the Fund at a higher 

rate than is indicated in the Collective Bargaining Agreement 

proposed for acceptance under the Distressed Employer 

Schedule, and that acceptance of the proposed Agreement is in 

the best interest of the Fund under all the circumstances and 

advances the goals of this Rehabilitation Plan; and

(vi) the Employer provides the Fund with first lien collateral in any 

and all unencumbered assets to the fullest extent it is able in 

36.1.217
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 6 of 19)

order to fully secure (i) any delinquent or deferred Contribution 

obligations owed to the Fund, (ii) the Employer’s obligation to 

make current and future pension contributions to the Fund, and 

(iii) any future withdrawal liability potentially incurred by the 

Employer (with the amount of such potential withdrawal liability to 

be determined based on estimates to be provided by the Fund).

3. Effect of agreement to or imposition of the Distressed 

Employer Schedule.

If a Contributing Employer becomes subject to the Distressed Employer 

Schedule with respect to a particular Bargaining Unit, the Fund will not 

accept any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, except 

as determined by the Board of Trustees in their sole discretion.

36.1.218
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 7 of 19)

D. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO 

HAVE EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER 

INCURRING A REHABILITATION PLAN WITHDRAWAL.

Subject to the provisos indicated in the final clauses of this Subsection D, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Subsection B(1) 

above) with respect to Participants whose benefit commencement date [within 

the meaning of ERISA § 305(i)(10)] with the Fund is on or after April 8, 2008, 

and:

(1) whose last Hour of Service prior to January 1, 2008 was earned while 

employed by United Parcel Service, Inc. (“UPS”), or with any trades or 

businesses at any time under common control with UPS, within the 

meaning of ERISA § 4001(b)(1); or

(2) who (i) has earned or earns an Hour of Service while employed with a 

Contributing Employer (or any predecessor or successor entity) that at 

any time on or after March 26, 2008 incurs a Rehabilitation Plan 

Withdrawal (see Section 2(I) below), and (ii) whose last year of 

Contributory Service Credit prior to the Rehabilitation Plan Withdrawal 

was earned while a member of a Bargaining Unit (or any predecessor or 

successor Bargaining Unit) ultimately incurring such Withdrawal.

Proviso 1: Provided, however, that any Pensioner otherwise subject to the 

elimination of Adjustable Benefits, due to a Rehabilitation Plan Withdrawal 

pursuant Section 2(D)(2) above, who has a benefit commencement date [within 

the meaning of ERISA § 305(i)(10)) one year or more prior to the earlier of: (i) 

the date of such Rehabilitation Plan Withdrawal or (ii) the date of the expiration 

of the last Collective Bargaining Agreement requiring Employer Contributions 

under the Primary Schedule prior to such Withdrawal, shall not be subject to the 

elimination of Adjustable Benefits provided that the Pensioner does not engage 

in Restricted Reemployment at any time subsequent to the benefit 

commencement date.

Proviso 2: And provided further that in the event of a Rehabilitation Plan 

Withdrawal resulting from an administrative termination of a Contributing 

Employer as referenced in Section 2(I)(3)(ii) below, the Board of Trustees shall 

have full discretionary authority (A) to decline to apply the elimination of 

Adjustable Benefits to Participants otherwise affected by a Rehabilitation Plan 

Withdrawal of this type who have submitted a pension application naming a 

Retirement Date to the Fund on or before the date selected by the Trustees as 

the effective date of the administrative termination which ended the Employer’s 

obligation to contribute to the Pension Fund, and (B) to decline to apply the 

requirement of Section 2(G) below that a Participant incurring a benefit 

adjustment due to Rehabilitation Plan Withdrawal must cease employment with 

and the performance of services for the withdrawn Employer within 60 days of 

the Rehabilitation Plan Withdrawal in order to eventually qualify for a restoration 

of benefits; in exercising their discretionary authority under this Proviso 2, the 

Board of Trustees shall consider, weigh and balance the following factors:

(i) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

36.1.219
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 8 of 19)

administrative termination were aware of, participated in or 

controlled, or could have controlled or prevented, through 

bargaining, grievance procedures, NLRB proceedings, litigation 

or other means, the circumstances that led to the administrative 

termination of the Employer;

(ii) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination benefited, directly or indirectly from the 

cessation of Employer Contributions or from the circumstances 

that led to the administrative termination of the Employer;

(iii) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination resisted or attempted to alter, or 

acquiesced in, the circumstances that led to the administrative 

termination of the Employer;

(iv) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination have become engaged as employees 

or independent contractors in the service of operations that were 

or are in whole or in part a successor of the operations of the 

Employer that has undergone the administrative termination; and

(v) the extent of the hardship that might be incurred by any actively 

employed members of the affected Bargaining Unit or by any 

members who submitted a retirement application prior to the 

effective date of the administrative termination due to the 

elimination of Adjustable Benefits.

Proviso 3: And provided further that the spouse of any Participant otherwise 

subject to the elimination of Adjustable Benefits, due to a Rehabilitation Plan 

Withdrawal pursuant to Subsection D(2) above, shall not incur a loss of 

Adjustable Benefits with respect to any Surviving Spouse Benefits for which 

such spouse has a benefit commencement date [within the meaning of ERISA 

Section 305(i)(10)] prior to the date of the Rehabilitation Plan Withdrawal.

36.1.220
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 9 of 19)

E. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO 

BECOMES SUBJECT TO THE DEFAULT SCHEDULE.

Subject to the provisos indicated in the final clauses of this Subsection E, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Section 8(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and:

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Default Schedule 

described herein; and

(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Default Schedule was earned while a member of 

a Bargaining Unit (or any predecessor or successor Bargaining Unit) that 

ultimately became subject to the Default Schedule.

Proviso 1: Provided, however. that any Pensioner otherwise subject to the 

elimination of Adjustable Benefits, due to his Contributing Employer becoming 

subject to the Default Schedule pursuant to this Subsection E, who has a benefit 

commencement date [within the meaning of ERISA § 305(i)(10)] one year or 

more prior to the Contributing Employer becoming subject to the Default 

Schedule, shall not be subject to the elimination of Adjustable Benefits provided 

that the Pensioner does not engage in Restricted Reemployment at any time 

subsequent to the benefit commencement date.

Proviso 2: And provided further that the spouse of any Participant otherwise 

subject to the elimination of Adjustable Benefits, due to his Contributing 

Employer becoming subject to the Default Schedule pursuant this Subsection E. 

shall not incur a loss of Adjustable Benefits with respect to any Surviving Spouse 

Benefits for which such spouse has a benefit commencement date [within the 

meaning of ERISA Section 305(i)(10)) prior to the date on which the Contributing 

Employer became subject to the Default Schedule.

F. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO 

BECOMES SUBJECT TO THE DISTRESSED EMPLOYER SCHEDULE.

Subject to the provisos indicated in the final clauses of this Subsection F. 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (with the exception indicated in Section 2(C)(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and:

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Distressed 

Employer Schedule described herein; and

(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Distressed Employer Schedule was earned 

36.1.221
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while a member of a Bargaining Unit (or any predecessor or successor 

Bargaining Unit) that ultimately became subject to the Distressed 

Employer Schedule.

Proviso 1: Provided, however, that any Pensioner otherwise subject to the 

reduction in Adjustable Benefits indicated in the Distressed Employer Schedule, 

due to his Contributing Employer becoming subject to that Schedule pursuant to 

this Subsection F, who has a benefit commencement date [within the meaning 

of ERISA Section 305(i)(10)) one year or more prior to the Contributing 

Employer becoming subject to the Distressed Employer Schedule, shall not be 

subject to the reduction of Adjustable Benefits otherwise mandated by the 

Distressed Employer Schedule provided that the Pensioner does not engage in 

Restricted Reemployment at any time subsequent to the benefit 

commencement date, and provided further that with respect to Bargaining Units 

that become subject to the Distressed Employer Schedule on or prior to June 1, 

2011, no Pensioners with Retirement Dates prior to September 24, 2010 shall 

be subject to such Distressed Employer Schedule benefit reduction.

Proviso 2: And provided further that the spouse of any Participant otherwise 

subject to the reduction of Adjustable Benefits. due to his Contributing Employer 

becoming subject to the Distressed Employer Schedule pursuant to this 

Subsection F, shall not incur a loss of Adjustable Benefits with respect to any 

Surviving Spouse Benefits for which such surviving spouse has a benefit 

commencement date [within the meaning of ERISA Section 305(i)(10)] prior to 

the date on which the Contributing Employer became subject to the Distressed 

Employer Schedule, and provided further in any event that with respect to 

Bargaining Units that become subject to the Distressed Employer Schedule on 

or prior to June 1, 2011, no spouse shall be subject to such Distressed 

Employer Schedule benefit reduction if the Participant’s death occurred prior to 

September 24, 2010.

G. RESTORATION OF ADJUSTED BENEFITS.

Any Participant who incurs a benefit adjustment or elimination under the terms 

of Sections 2(A), 2(B), 2(C), 2(D), 2(E) or 2(F) above may have those affected 

benefits restored if, subsequent to the event causing the benefit adjustment, the 

Participant:

(1) in the case of benefit adjustment caused by a Rehabilitation Plan 

Withdrawal (see Section 2(I) below), permanently ceases all employment 

with, and performance of services in any capacity for, the Contributing 

Employer (and any successors or trades or businesses under common 

control with such Employer within the meaning of ERISA § 4001(b)(1)) 

within 60 days of the occurrence of such Rehabilitation Plan Withdrawal; 

and

(2) in any case, subsequently earns one year of Contributory Service Credit 

with a Contributing Employer while that Employer is in compliance with 

the Primary Schedule described herein.

H. ADJUSTABLE BENEFITS.

As used herein, Adjustable Benefits shall mean and include:

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(1) Any right to receive a Retirement Pension Benefit (Pension Plan, Article 

IV) prior to age 65 [including without limitation any pre-age 65 benefits 

that would otherwise be payable as (i) a Twenty Year Service Pension 

(Pension Plan § 4.01); (ii) a Contributory Credit Pension (Pension Plan § 

4.04); (iii) a Vested Pension (Pension Plan§ 4.07); (iv) a Deferred 

Pension (Pension Plan§ 4.08); or (v) a Twenty-Year Deferred Pension 

(Pension Plan § 4.09)].

(2) Early retirement benefit or retirement-type subsidies [including without 

limitation (i) an Early Retirement Pension (Pension Plan Section 4.02); 

(ii) a 25-And-Out Pension (Pension Plan Section 4.05); or a 30-And-Out 

Pension (Pension Plan Section 4.06)].

(3) All Disability Benefits not yet in pay status (Pension Plan, Article V).

(4) Before Retirement Death Benefits (Pension Plan, Article VI) other than 

the 50% surviving spouse benefit.

(5) Post-retirement death benefits that are not part of the annuity form of 

payment.

(6) All Partial Pensions (Pension Plan, Appendix D), to the extent any such 

pension is tied to one or more of the Adjustable Benefits listed above.

(7) All Contribution-Based Pensions (Pension Plan § 4.03) except that, 

assuming the Participant meets all other requirements for receiving a 

Contribution-Based Pension, the Contribution-Based Pension is payable 

at age 65 reduced by 1/2% per month for each month prior to age 65 at 

the time of retirement with a minimum retirement age of 57. Such 

minimum retirement age shall not apply if the Participant retired prior to 

age 57 before the Participant’s Adjustable Benefits were eliminated or 

reduced. In such circumstance, the Participant shall be entitled to receive 

the Contribution-Based Pension reduced by 1/2% per month for each 

month prior to age 65 at the time of retirement. Provided, however, for 

Participants who (i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) do not have a benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] on or before July 1, 2011, the 

reductions in the Contribution-Based Pensions payable at age 65 

referenced in this subparagraph (7) shall be based on actuarial 

equivalence in accordance with the Schedule attached as Exhibit B 

hereto.

(8) To the extent not already included in paragraphs (1) - (7) above, the 

following categories of benefits listed and defined as “adjustable 

benefits” under ERISA§ 305(e)(8)(iv): 

(i) benefits, rights, and features under the plan, including postretirement death benefits, 60-month guarantees, disability 

benefits not yet in pay status, and similar benefits, 

(ii) any early retirement benefit or retirement-type subsidy (within the 

meaning of ERISA Section 204(g)(2)(A)) and any benefit payment 

option (other than the qualified joint and survivor annuity), and

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(iii) benefit increases that would not be eligible for a guarantee under 

ERISA Section 4022A on the first day of the Fund’s initial critical 

year under the PPA because the increases were adopted (or, if 

later, took effect) less than 60 months before such first day.

Provided, however, that except as provided in subparagraph (8)(iii) above, nothing in 

this paragraph shall be construed to reduce the level of a Participant’s accrued benefit 

payable at normal retirement.

I. REHABILITATION PLAN WITHDRAWAL

Subject to the discretionary authority of the Board of Trustees indicated in the 

final clause of this Subsection I, a “Rehabilitation Plan Withdrawal” occurs on 

the date a Contributing Employer (a) is no longer required to make Employer 

Contributions to the Pension Fund under one or more of its Collective 

Bargaining Agreements, or (b) undergoes a significant reduction in its obligation 

to make Employer Contributions resulting from outsourcing or subcontracting 

work covered by the applicable Collective Bargaining Agreement(s), as a result 

of actions by members of a Bargaining Unit (or its representatives) or the 

Contributing Employer, which actions include, but are not limited to the 

following:

(1) decertification or other removal of the Union as a bargaining agent;

(2) ratification or other acceptance of a Collective Bargaining Agreement 

which permits withdrawal of the Bargaining Unit, in whole or in part, from 

the Pension Plan;

(3) administrative termination of the Contributing Employer with respect to 

any or all of its Collective Bargaining Agreements due to: (i) a violation of 

the Fund’s rules with respect to the terms of a Collective Bargaining 

Agreement (including, without limitation, a provision providing for a split 

bargaining unit]; or (ii) a violation of any other Fund rule or policy 

[including, without limitation, practices or arrangements that result in 

adverse selection];

(4) any transaction or other event (including without limitation, a merger, 

consolidation, division, asset sale (other than an asset sale complying 

with ERISA § 4204), liquidation, dissolution, joint venture, outsourcing, 

subcontracting] whereby all or a portion of the operations for which the 

Contributing Employer has an obligation to contribute are continued 

(whether by the Contributing Employer or by another party) in whole or in 

part without maintaining the obligation to contribute to the Fund under 

the same or better terms (including, for example, as to number of 

participants and contribution rate) as existed before the transaction;

Provided, however, that with respect to the circumstances described in 

Subparagraphs. (3)(ii) or (4) above, the Board of Trustees shall have full 

discretionary authority to consider, weigh and balance the following factors in 

determining whether a Rehabilitation Plan Withdrawal has occurred:

(i) the extent to which the affected Bargaining Unit or its bargaining 

representative participated in or controlled, or could have 

controlled or prevented, through bargaining, grievance 

36.1.224
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 13 of 19)

procedures, NLRB proceedings, litigation or other means, the 

cessation of Employer Contributions;

(ii) the extent to which the affected Bargaining Unit benefited, 

directly or indirectly, from the cessation of Employer 

Contributions;

(iii) the extent to which the affected Bargaining Unit, or its bargaining 

representative, resisted or attempted to resist, or acquiesced in, 

the cessation of Employer Contributions;

(iv) the extent to which the affected Bargaining Unit, or any of its 

members, become engaged as employees or independent 

contractors in the service of operations that were or are in whole 

or in part a successor of the operations of the Contributing 

Employer who incurred the cessation of Employer Contributions; 

and

(v) the extent of the hardship that might be incurred by members of 

the affected Bargaining Unit by the elimination of Adjustable 

Benefits.

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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 14 of 19)

J. BENEFIT ADJUSTMENTS APPLICABLE TO ALL PARTICIPANTS 

(INCLUDING INACTIVE VESTED PARTICIPANTS) WHO HAVE NOT 

SUBMITTED A RETIREMENT APPLICATION ON OR BEFORE JULY 1, 

2011 AND DO NOT HAVE A BENEFIT COMMENCEMENT ON OR 

BEFORE THAT DATE.

Minimum Retirement Age 57.

Participants who (i) have not submitted a retirement application on or before 

July 1, 2011 and (ii) do not have a benefit commencement date [within the 

meaning of ERISA § 305(i)(10)] on or before July 1, 2011, will not be granted a 

Retirement Date prior to their 57th birthday and will not be eligible to receive 

retirement benefit payments of any type until after achieving age 57. 

Section 3. REHABILITATION PLAN STANDARDS AND OBJECTIVES.

The Schedules of Contributions and Benefits discussed above have been 

formulated by the Fund’s Board of Trustees as reasonable measures which, under 

reasonable actuarial assumptions, are designed and projected to forestall the 

possible insolvency of the Fund prior to 2023. Projections of insolvency may vary 

from year to year as actual experience may differ from assumptions.

The Trustees recognize the possibility that actual experience could be less 

favorable than the reasonable assumptions used for the Rehabilitation Plan on an 

annual basis. Consequently, the annual standards for meeting the requirements of 

the Rehabilitation Plan are as follows:

• Actuarial projections updated for each year show, based on reasonable 

assumptions, that under the Rehabilitation Plan and its schedules (as 

amended and updated from time to time) the Fund will forestall its possible 

insolvency prior to 2021.

Section 4. ALTERNATIVES CONSIDERED BY THE TRUSTEES.

The Board of Trustees considered numerous alternatives [including combinations 

of contribution rate increases (and other updates to the schedules of contribution 

rates in light of the experience of the Fund) and benefit adjustments] that might 

enable the Fund to emerge from Critical Status either by the end of ten year PPA 

Rehabilitation Period (which began on January 1, 2011 and ends on December 31, 

2020), or to forestall possible insolvency indefinitely (beyond the date referenced 

above under the “Standards and Objectives” heading). Some of the alternatives 

considered were determined to be unreasonable measures. The various default 

and alternative schedules considered included the following:

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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 15 of 19)

Schedules considered by the Board of Trustees in formulating an initial 2008 

rehabilitation plan that might permit the Fund to emerge by the end of the 

Rehabilitation Period on December 31. 2020:

Schedule Benefit Reductions Contribution Rate Increases

Default Immediate maximum Critical Status benefit cuts 

for all participants to the extent permitted by law

15% per year until emergence 

in 2021 (plus an additional 

1.6% annual increase for 

Benefit Classes 14 and below) 

Alternative 1 Maintain current benefits 17% per year until emergence 

in 2021

Alternative 2 On the second anniversary of the new bargaining 

agreement, reduce the future benefit accrual rate 

from 1% of contributions payable at age 62 to 1% 

of contributions at payable at age 65

16% per year until emergence in 

2021

In formulating the Fund’s initial rehabilitation plan in 2008, the Board of Trustees 

concluded that utilizing any and all possible measures to emerge from Critical Status by 

the end of the 10-year presumptive Rehabilitation Period described in ERISA Section 

305(e)(4), would be unreasonable and would involve considerable risk to the Fund and 

Fund participants. In particular, the Board of Trustees concluded that the continued 

existence of the Fund and the Trustees’ ability to maintain and improve the Fund’s 

funded status in accordance with the terms of the IRS approved amortization extension 

would be jeopardized by any attempt to emerge from critical status by the end of the 

presumptive 10-year Rehabilitation Period.

As shown above, based on January 1, 2008 valuation data, the emergence by the end 

of the presumptive 10 year Rehabilitation Period would require double-digit annual 

contribution rate increases. For example, the daily contribution rate would generally 

have to grow from $52 to over $300. Therefore, the Trustees concluded in 2008 that 

annual contribution rate increases above the 8%/6%/4% level in the Primary Schedule 

were not reasonable and could trigger mass withdrawals and significant losses to the 

Fund and the participants.

During the process of updating the Rehabilitation Plan in 2010, 2011 and 2012, the 

Trustees concluded that in light of current valuation data, the experience of the Fund 

and projections, the option available to the Fund under ERISA Section 305(e)(3)(ii) was 

to pursue reasonable measures to forestall a possible insolvency. The Trustees also 

concluded during the 2010, 2011 and 2012 update process that requiring annual 

contribution increases above the level described in the Primary Schedule would not be 

reasonable and would likely accelerate a possible insolvency of the Fund rather than 

forestall it. 

In recent years, prior to Plan/calendar year 2012, the Trustees have implemented 

numerous measures to improve the Fund’s funding. These have included:

• Reducing the benefit accrual rate from 2% of contributions to 1% of 

contributions;

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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 16 of 19)

• Protecting the “and-out” and early retirement benefits while freezing them at 

their year-end 2003 levels;

• Obtaining agreements from the major bargaining parties to reallocate significant 

amounts of annual benefit contributions to the Pension Fund;

• Obtaining an amortization extension from the Internal Revenue Service in 2005, 

and seeking a waiver of the conditions of that extension in 2009 in light of 

investment losses resulting from the weakness in financial in recent years;

• Requiring as a condition of continued participation in the Fund that new 

bargaining agreements in the last several years include significant annual 

contribution rate increases; 

• Providing information to Congress and federal agencies with respect to 

legislative or regulatory proposals that appear to assist in addressing the funding 

challenges confronting the Fund;

• Approving a Distressed Employer Schedule as part of the Fund’s Rehabilitation 

Plan under which YRC, Inc. and its affiliate USF Holland, Inc., two distressed 

(but historically significant) Contributing Employers, resumed Contributions in 

June 2011 at rates lower than would have been permitted under previous (pre2011) Rehabilitation Plan Schedules; this Distressed Employer Schedule 

significantly adjusted the benefits of the affected Bargaining Unit members, and 

helped assure that despite the lower Contribution rates, the continued 

participation of these Employers would tend to improve overall pension funding; 

and

• Adopting a new withdrawal liability method, and obtaining approval of that 

method by the Pension Benefit Guaranty Corporation, under which new 

Contributing Employers, and existing Contributing Employers who satisfy their 

withdrawal liability under the Fund’s historic (pre-2011) withdrawal liability 

method (i.e., the “modified presumptive method”), will have any future 

withdrawal liability determined under the “direct attribution” method; the Trustees 

believe that this “hybrid” method will be attractive to some Contributing 

Employers who wish to continue to participate in the Fund, but may be 

concerned about the potential for future growth of their estimated withdrawal 

liability as calculated under the Fund’s prior (pre-2011) withdrawal liability 

method, and that this, in turn, will encourage continued participation in the Fund 

and tend to improve overall pension funding.

And specifically during 2012, the Trustees continued to implement the funding 

improvement measures listed above, and also amended the Primary Schedule of the 

Rehabilitation Plan to permit Contributing Employers, who satisfy their existing 

withdrawal liability and qualify as New Employers eligible for the direct attribution 

method under the hybrid method, to comply with the Primary Schedule without the need 

for the contribution rate increases otherwise required under the Primary Schedule. The 

Trustees determined that this amendment to the Rehabilitation Plan will encourage 

existing Contributing Employers to satisfy their existing withdrawal liability and to 

continue their participation in the Fund as New Employers under the hybrid method; the 

Trustees determined that the New Employers’ participation on these terms would tend 

to improve overall pension funding. 

36.1.228
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 17 of 19)

As part of their responsibility to consider updates to the Rehabilitation Plan for Plan 

Year 2012, the Board of Trustees also determined that mandating additional significant 

benefit cuts (beyond those provided in this updated Rehabilitation Plan), or (as noted) 

mandating contribution rate increases at levels beyond those required in recent years, 

would substantially accelerate the rate at which employers would withdraw from the 

Fund, in large part because the Union could conclude that it would be in its members’ 

best interest to agree to withdrawals. The Board of Trustees also determined that this 

acceleration of employer withdrawals would, in turn, be counterproductive to the 

Trustees’ effort to forestall possible insolvency.

36.1.229
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 18 of 19)

Exhibit A 

Primary Schedule: Contribution Rate Increases By Bargaining Agreement Year 

(all rate increases are to be compounded annually) 

Calendar Year 

of Contribution 

Rate Increase

Year of Initial Bargaining Agreement Conforming to Primary Schedule

2006 & 

Earlier 2007 2008 2009 2010 2011 2012 2013

2006 7% 

2007 7% 8% 

2008 7% 8% 8% 

2009 7% 8% 8% 8% 

2010 7% 8% 8% 8% 8% 

2011 6% 8% 8% 8% 8% 8% 

2012 5% 6% 8% 8% 8% 8% 8%

2013 4% 4% 6% 8% 8% 8% 8% 8%

2014 4% 4% 6% 8% 8% 8% 8% 8%

2015 4% 4% 6% 8% 8% 8% 8% 8%

2016 4% 4% 4% 6% 8% 8% 8% 8%

2017 4% 4% 4% 4% 6% 8% 8% 8%

2018 4% 4% 4% 4% 4% 6% 8% 8%

2019 4% 4% 4% 4% 4% 4% 6% 8%

2020 4% 4% 4% 4% 4% 4% 4% 6%

2021 4% 4% 4% 4% 4% 4% 4% 4%

2022 4% 4% 4% 4% 4% 4% 4% 4%

2023 4% 4% 4% 4% 4% 4% 4% 4%

2024 4% 4% 4% 4% 4% 4% 4% 4%

2025 4% 4% 4% 4% 4% 4% 4% 4%

2026 4% 4% 4% 4% 4% 4% 4% 4%

2027 4% 4% 4% 4% 4% 4% 4% 4%

36.1.230
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TM:538126 / 01096280 / 01/01/2015 Appendix M-4 (Page 19 of 19)

EXHIBIT B

Schedule for Actuarial Reduction of Age 65 Benefits

(applicable to Default Schedule and Rehabilitation Plan 

Withdrawal benefit adjustments for Participants who 

(i) have not submitted a retirement application on or

before July 1, 2011 and (ii) do not have a benefit commencement 

 date [within the meaning of ERISA§ 305(i)(10)] on or before July 1, 2011)

 Percent of Age 65 Benefit Based on

 Age Actuarial Equivalence

65 100%

64 90%

63 81%

62 74%

61 67%

60 61%

59 55%

58 50%

57 46%

36.1.231
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TM:538126 / 01096280 / 01/01/2015 Appendix M-5 (Page 1 of 17)

APPENDIX M-5. REHABILITATION PLAN (INCLUDING 2013 UPDATE) 

Section 1. PREAMBLE AND DEFINITIONS. 

 Appendix M comprising the Rehabilitation Plan was added to the Pension Plan effective 

on and after March 26, 2008, and has been amended from time to time since then. 

 This Appendix M-5 is added to the Pension Plan effective on and after December 31, 

2013 in order to update the Rehabilitation Plan in compliance with the requirements of 

the Pension Protection Act of 2006 (“PPA”). 

 The Central States, Southeast and Southwest Areas Pension Fund (the “Fund”) was 

initially certified on March 24, 2008 by its actuary to be in “critical status” (sometimes 

referred to as the “red zone”) under the PPA: the Fund’s actuary has also certified the 

Fund to be in critical status in March of each subsequent year through March 2013. The 

Fund’s Board of Trustees, as the plan sponsor of a “critical status” pension plan, is 

charged under the PPA with developing a “rehabilitation plan” designed to improve the 

financial condition of the Fund in accordance with the standards set forth in the PPA, 

and with annually updating the rehabilitation plan. Although for plan year 2009 the Fund 

was exempt from the update requirement, pursuant to an election under the Worker 

Retiree and Employer Recovery Act of 2008, for subsequent plan years the PPA 

provisions concerning the rehabilitation plan update process are applicable to the Fund. 

The purpose of this updated Rehabilitation Plan is to comply with those PPA provisions. 

 Under the PPA, a rehabilitation plan, including annual updates to the plan, must include 

one or more schedules showing revised benefit structures, revised contributions, or both, 

which, if adopted by the parties obligated under agreements participating in the pension 

plan, may reasonably be expected to enable the Fund to emerge from critical status in 

accordance with the rehabilitation plan. The PPA also provides that one of the 

rehabilitation plan schedules of benefits and contributions shall be designated the 

“default” schedule. The default schedule must assume that there are no increases in 

contributions under the plan other than the increases necessary to emerge from critical 

status after future benefit accruals and other benefits have been reduced to the 

maximum extent permitted by law. The PPA also creates certain categories of 

“adjustable benefits” which may be reduced or eliminated dependent upon the outcome 

of bargaining over the rehabilitation plan schedules and dependent on the exercise of 

certain flexibility and discretion conferred upon the Board of Trustees by the PPA. 

Adjustable benefits that may be affected in this manner include post-retirement death 

benefits, early retirement benefits or retirement-type subsidies, and generally any benefit 

that would be payable prior to normal retirement age (age 65 benefits under the Fund’s 

Plan Document - or, as discussed below, a Contribution Based Benefit actuarially 

reduced to be equivalent to an age 65 benefit). As noted, the PPA also requires annual 

updates of the rehabilitation plan. 

 Unless otherwise indicated, all capitalized terms herein shall have the definitions and 

meanings assigned to them in the Fund’s Pension Plan Document. 

36.1.232
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Section 2. SCHEDULES OF CONTRIBUTIONS AND BENEFITS. 

 With the PPA requirements outlined above in mind, the Fund’s Board of Trustees 

hereby provides the following PPA Schedules to the parties charged with bargaining 

over agreements requiring contributions to the Fund.

A. PRIMARY SCHEDULE (EXCEPT AS NOTED, PRESERVES 

ALL CURRENT BENEFITS).

1. Benefits

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers are in 

compliance with this Primary Schedule, there will be no change in benefit 

formulas, levels or payment options in effect on January 1, 2008, except 

that as provided in Section 2(J) below, Participants who (i) have not 

submitted a retirement application on or before July 1, 2011 and (ii) do 

not have a benefit commencement date (within the meaning of ERISA § 

305(i)(10)) on or before July 1, 2011, will not be granted a Retirement 

Date prior to their 57th birthday and will not be eligible to receive 

retirement benefit payments of any type until after achieving age 57.

Further, subject to the notice requirements of the PPA and other 

applicable law, any Bargaining Units (and any non-Bargaining Unit 

employee groups participating in the Fund) whose Contributing 

Employers incur a Rehabilitation Plan Withdrawal on or after March 26, 

2008 shall have their Adjustable Benefits listed in Section 2(H) below 

eliminated or reduced to the extent indicated in Section 2(B)(1) below.

2. Contributions

Compliance with the Primary Schedule requires annually compounded 

contribution rate increases in accordance with Exhibit A effective 

immediately after the expiration of the Collective Bargaining Agreement 

(or other agreement requiring contributions to the Fund) and each 

agreement anniversary date (or reallocation anniversary, where 

applicable) during the term of the new bargaining agreement to the 

extent indicated in Exhibit A, depending on the year that the new 

agreement is effective. Note that all contribution rate increases are 

annually compounded on the total contribution rate (including any 

reallocations of employee benefit contributions or agreed mid-contract 

contribution increases) immediately prior to the increase.

The required annual rate increase may be provided through annual 

allocations to pension contributions of general and aggregate employee 

benefit contribution increases that were negotiated at the outset of an 

agreement, but were not specifically allocated to pension contributions 

until subsequent contract years. The Primary Schedule requires 8% per 

year contribution rate increases for the first 5 years, 6% per year 

contribution rate increases for the next 3 years and 4% per year 

contribution rate increases each year thereafter for 2008 agreements 

under the Primary Schedule and comparable rate increases over time for 

all other agreements under the Primary Schedule (see Exhibit A).

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TM:538126 / 01096280 / 01/01/2015 Appendix M-5 (Page 3 of 17)

Provided, however, that absent further amendment to this rehabilitation 

plan, as of June 1, 2011, any Collective Bargaining Agreement requiring 

contributions of (1) $348 per week for each full-time employee with 

respect to Participants covered by the National Master Automobile 

Transporter Agreement, and (2) $342 per week for each full-time 

employee with respect to all other Participants, will be deemed to be in 

compliance with the Primary Schedule without the need for additional 

annual rate increases. 

Provided further that any Employer that qualifies as a New Employer 

under § 2.2(b) of Appendix E of the Pension Plan will be deemed, as of 

the date it qualifies as a New Employer, to be in compliance with the 

Primary Schedule without the need for additional contribution rate 

increases. 

B. DEFAULT SCHEDULE.

1. Benefits

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers agree to 

comply with this Default Schedule [or who become subject to the Default 

Schedule due to a failure to achieve an agreement to accept one of the 

Rehabilitation Plan Schedules within the time frame specified under 

ERISA § 305(e)(3)(C)], the benefit formulas, levels, and payment options 

in effect on January 1, 2008 will remain in effect except for the following, 

upon the effective date that the Default Schedule applies to the 

Bargaining Unit (or to any non-Bargaining Unit employee groups 

participating in the Fund):

• Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of contributions 

(the Contribution-Based Pension) remains in effect, with the 

modification that the Contribution Based Pension monthly 

benefit payable at age 65 is reduced by 1/2% per month for 

each month prior to age 65 with a minimum retirement age of 

57, except that, for Participants who (i) have not submitted a 

retirement application on or before July 1, 2011 and (ii) do 

not have a benefit commencement date [within the meaning 

of ERISA § 305(i)(10)] on or before July 1, 2011, the 

Contribution Based Pension monthly benefit payable at age 

65 shall be reduced to an actuarially equivalent benefit in 

accordance with the Schedule attached as Exhibit B with a 

minimum retirement age of 57.

2. Contributions

 Compliance with the Default Schedule consists of annually compounded 

contribution rate increases of 4% effective immediately after the 

expiration of the Collective Bargaining Agreement (or other agreement 

requiring contributions to the Fund) and each anniversary thereof during 

the term of the agreement. 

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3. Effect of agreement to or imposition of Default Schedule.

(i) If a Contributing Employer agrees to the Default Schedule with 

respect to a particular Bargaining Unit, the Fund will not accept 

any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, 

except as determined by the Board of Trustees in their sole 

discretion.

(ii) If a Contributing Employer becomes subject to the Default 

Schedule by operation of ERISA Section 305(e)(3)(C), because 

the bargaining parties have failed to adopt either of the 

Schedules compliant with this Rehabilitation Plan within 180 days 

of the expiration of their prior Collective Bargaining Agreement, 

the Fund will then accept a Collective Bargaining Agreement that 

is compliant with the Primary Schedule described in this 

Rehabilitation Plan, provided that such new Collective Bargaining 

Agreement provides for Primary Schedule contribution rates that 

are retroactive to the expiration date of the last Collective 

Bargaining Agreement that covered the affected Bargaining Unit.

C. DISTRESSED EMPLOYER SCHEDULE.

1. Benefits

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers and 

contribution rates have been specifically accepted and approved by the 

Board of Trustees as satisfying the Qualifications for the Distressed 

Employer Schedule (as set forth in Section 2(C)(2) below), the benefit 

formulas, levels, and payment options in effect on January 1, 2008 will 

remain in effect except for the following, upon the effective date that the 

Distressed Employer Schedule applies to the Bargaining Unit (or to any 

non-Bargaining Unit employee group participating in the Fund) that is 

accepted by the Board of Trustees as qualifying under the Distressed 

Employer Schedule:

• Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of contributions 

(the Contribution-Based Pension) remains in effect, with the 

modification that the Contribution Based Pension monthly 

benefit payable at age 65 is reduced by 1⁄2% per month for 

each month prior to age 65 with a minimum retirement age of 

57, except that, for Participants who (i) have not submitted a 

retirement application on or before July 1, 2011 and (ii) have 

not achieved a Retirement Date on or before July 1, 2011, 

the Contribution Based Pension monthly benefit payable at 

age 65 shall be reduced to an actuarially equivalent benefit in 

accordance with the Schedule attached as Exhibit B with a 

minimum retirement age of 57, and except that any 

Participant who (i) has achieved a minimum age of 55 as of 

the date of the Distressed Employer’s termination of 

participation in the Fund (see Section 2(C)(2) below) and (ii) 

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has accrued a minimum of 25 years credit towards a 

Contributory Credit Pension or an And-Out Pension as of that 

date (see Pension Plan §§ 4.04, 4.05 and 4.06), shall be 

entitled to retain his eligibility for (but not gain further credit 

towards) any such Pension, provided that any such 

Participant has a minimum retirement age of 62.

2. Contributions and Qualifications for the Distressed 

Employer Schedule.

The Board of Trustees may deem a Collective Bargaining Agreement 

with contribution rates not in compliance with either the Primary 

Schedule or the Default Schedule to be in compliance with and subject 

to the Distressed Employer Schedule, if in the Board of Trustees’ sole 

discretion, the Board determines that the Contributing Employer meets 

each of the following qualifications:

(i) the common stock of the Employer or its parent corporation (or 

other affiliate under 80% or more common control with the 

Employer) is publicly traded and registered pursuant to the 

securities laws of the United States; 

(ii) the Employer has previously incurred a termination of its 

participation in the Fund due to an inability to remain current in 

its Contribution obligations, and the Employer was in terminated 

status immediately prior to executing the Agreement sought to 

be qualified under the Distressed Employer Schedule; 

(iii) during the last ten years in which the Employer participated in 

the Fund prior to its termination, it had paid contributions to the 

Fund on behalf of at least 1,000 full-time employees per month 

(or had, including part-time employees, paid contributions on 

behalf of the equivalent of at least 1,000 full-time employees 

per month for the specified ten year period); 

(iv) the Employer submits to a review of its financial condition and 

operations by the Fund’s Staff and outside expert and 

consultants, and agrees to reimburse the Fund for all fees and 

expenses incurred by the Fund in this review (including, but not 

limited to, reimbursement to the Fund for the time devoted by the 

Fund’s Staff to any such review, with this reimbursement to be 

made at market rates for comparable services performed by 

Fund’s Staff);

(v) on the basis of this financial and operational review, it appears 

that the Employer is not able to contribute to the Fund at a higher 

rate than is indicated in the Collective Bargaining Agreement 

proposed for acceptance under the Distressed Employer 

Schedule, and that acceptance of the proposed Agreement is in 

the best interest of the Fund under all the circumstances and 

advances the goals of this Rehabilitation Plan; and

(vi) the Employer provides the Fund with first lien collateral in any 

and all unencumbered assets to the fullest extent it is able in 

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order to fully secure (i) any delinquent or deferred Contribution 

obligations owed to the Fund, (ii) the Employer’s obligation to 

make current and future pension contributions to the Fund, and 

(iii) any future withdrawal liability potentially incurred by the 

Employer (with the amount of such potential withdrawal liability to 

be determined based on estimates to be provided by the Fund).

3. Effect of agreement to or imposition of the Distressed 

Employer Schedule.

If a Contributing Employer becomes subject to the Distressed Employer 

Schedule with respect to a particular Bargaining Unit, the Fund will not 

accept any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, except 

as determined by the Board of Trustees in their sole discretion.

D. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO 

HAVE EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER 

INCURRING A REHABILITATION PLAN WITHDRAWAL.

Subject to the provisos indicated in the final clauses of this Subsection D, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Subsection B(1) 

above) with respect to Participants whose benefit commencement date [within 

the meaning of ERISA § 305(i)(10)] with the Fund is on or after April 8, 2008, 

and:

(1) whose last Hour of Service prior to January 1, 2008 was earned while 

employed by United Parcel Service, Inc. (“UPS”), or with any trades or 

businesses at any time under common control with UPS, within the 

meaning of ERISA § 4001(b)(1); or

(2) who (i) has earned or earns an Hour of Service while employed with a 

Contributing Employer (or any predecessor or successor entity) that at 

any time on or after March 26, 2008 incurs a Rehabilitation Plan 

Withdrawal (see Section 2(I) below), and (ii) whose last year of 

Contributory Service Credit prior to the Rehabilitation Plan Withdrawal 

was earned while a member of a Bargaining Unit (or any predecessor or 

successor Bargaining Unit) ultimately incurring such Withdrawal.

Proviso 1: Provided, however, that any Pensioner otherwise subject to the 

elimination of Adjustable Benefits, due to a Rehabilitation Plan Withdrawal 

pursuant Section 2(D)(2) above, who has a benefit commencement date [within 

the meaning of ERISA § 305(i)(10)] one year or more prior to the earlier of: (i) 

the date of such Rehabilitation Plan Withdrawal or (ii) the date of the expiration 

of the last Collective Bargaining Agreement requiring Employer Contributions 

under the Primary Schedule prior to such Withdrawal, shall not be subject to the 

elimination of Adjustable Benefits provided that the Pensioner does not engage 

in Restricted Reemployment at any time subsequent to the benefit 

commencement date.

Proviso 2: And provided further that in the event of a Rehabilitation Plan 

Withdrawal resulting from an administrative termination of a Contributing 

Employer as referenced in Section 2(I)(3)(ii) below, the Board of Trustees shall 

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have full discretionary authority (A) to decline to apply the elimination of 

Adjustable Benefits to Participants otherwise affected by a Rehabilitation Plan 

Withdrawal of this type who have submitted a pension application naming a 

Retirement Date to the Fund on or before the date selected by the Trustees as 

the effective date of the administrative termination which ended the Employer’s 

obligation to contribute to the Pension Fund, and (B) to decline to apply the 

requirement of Section 2(G) below that a Participant incurring a benefit 

adjustment due to Rehabilitation Plan Withdrawal must cease employment with 

and the performance of services for the withdrawn Employer within 60 days of 

the Rehabilitation Plan Withdrawal in order to eventually qualify for a restoration 

of benefits; in exercising their discretionary authority under this Proviso 2, the 

Board of Trustees shall consider, weigh and balance the following factors:

(i) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination were aware of, participated in or 

controlled, or could have controlled or prevented, through 

bargaining, grievance procedures, NLRB proceedings, litigation 

or other means, the circumstances that led to the administrative 

termination of the Employer;

(ii) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination benefited, directly or indirectly from the 

cessation of Employer Contributions or from the circumstances 

that led to the administrative termination of the Employer;

(iii) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination resisted or attempted to alter, or 

acquiesced in, the circumstances that led to the administrative 

termination of the Employer;

(iv) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination have become engaged as employees 

or independent contractors in the service of operations that were 

or are in whole or in part a successor of the operations of the 

Employer that has undergone the administrative termination; and

(v) the extent of the hardship that might be incurred by any actively 

employed members of the affected Bargaining Unit or by any 

members who submitted a retirement application prior to the 

effective date of the administrative termination due to the 

elimination of Adjustable Benefits.

Proviso 3: And provided further that the spouse of any Participant otherwise 

subject to the elimination of Adjustable Benefits, due to a Rehabilitation Plan 

Withdrawal pursuant to Subsection D(2) above, shall not incur a loss of 

Adjustable Benefits with respect to any Surviving Spouse Benefits for which 

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such spouse has a benefit commencement date [within the meaning of ERISA 

Section 305(i)(10)] prior to the date of the Rehabilitation Plan Withdrawal.

E. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO 

BECOMES SUBJECT TO THE DEFAULT SCHEDULE.

Subject to the provisos indicated in the final clauses of this Subsection E, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Section B(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and:

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Default Schedule 

described herein; and

(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Default Schedule was earned while a member of 

a Bargaining Unit (or any predecessor or successor Bargaining Unit) that 

ultimately became subject to the Default Schedule.

Proviso 1: Provided, however. that any Pensioner otherwise subject to the 

elimination of Adjustable Benefits, due to his Contributing Employer becoming 

subject to the Default Schedule pursuant to this Subsection E, who has a benefit 

commencement date [within the meaning of ERISA § 305(i)(10)] one year or 

more prior to the Contributing Employer becoming subject to the Default 

Schedule, shall not be subject to the elimination of Adjustable Benefits provided 

that the Pensioner does not engage in Restricted Reemployment at any time 

subsequent to the benefit commencement date.

Proviso 2: And provided further that the spouse of any Participant otherwise 

subject to the elimination of Adjustable Benefits, due to his Contributing 

Employer becoming subject to the Default Schedule pursuant this Subsection E. 

shall not incur a loss of Adjustable Benefits with respect to any Surviving Spouse 

Benefits for which such spouse has a benefit commencement date [within the 

meaning of ERISA Section 305(i)(10)] prior to the date on which the Contributing 

Employer became subject to the Default Schedule.

F. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO 

BECOMES SUBJECT TO THE DISTRESSED EMPLOYER SCHEDULE.

Subject to the provisos indicated in the final clauses of this Subsection F, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (with the exception indicated in Section 2(C)(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and:

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Distressed 

Employer Schedule described herein; and

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(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Distressed Employer Schedule was earned 

while a member of a Bargaining Unit (or any predecessor or successor 

Bargaining Unit) that ultimately became subject to the Distressed 

Employer Schedule.

Proviso 1: Provided, however, that any Pensioner otherwise subject to the 

reduction in Adjustable Benefits indicated in the Distressed Employer Schedule, 

due to his Contributing Employer becoming subject to that Schedule pursuant to 

this Subsection F, who has a benefit commencement date [within the meaning 

of ERISA Section 305(i)(10)] one year or more prior to the Contributing 

Employer becoming subject to the Distressed Employer Schedule, shall not be 

subject to the reduction of Adjustable Benefits otherwise mandated by the 

Distressed Employer Schedule provided that the Pensioner does not engage in 

Restricted Reemployment at any time subsequent to the benefit 

commencement date, and provided further that with respect to Bargaining Units 

that become subject to the Distressed Employer Schedule on or prior to June 1, 

2011, no Pensioners with Retirement Dates prior to September 24, 2010 shall 

be subject to such Distressed Employer Schedule benefit reduction.

Proviso 2: And provided further that the spouse of any Participant otherwise 

subject to the reduction of Adjustable Benefits. due to his Contributing Employer 

becoming subject to the Distressed Employer Schedule pursuant to this 

Subsection F, shall not incur a loss of Adjustable Benefits with respect to any 

Surviving Spouse Benefits for which such surviving spouse has a benefit 

commencement date [within the meaning of ERISA Section 305(i)(10)] prior to 

the date on which the Contributing Employer became subject to the Distressed 

Employer Schedule, and provided further in any event that with respect to 

Bargaining Units that become subject to the Distressed Employer Schedule on 

or prior to June 1, 2011, no spouse shall be subject to such Distressed 

Employer Schedule benefit reduction if the Participant’s death occurred prior to 

September 24, 2010.

G. RESTORATION OF ADJUSTED BENEFITS.

Any Participant who incurs a benefit adjustment or elimination under the terms 

of Sections 2(A), 2(B), 2(C), 2(D), 2(E) or 2(F) above may have those affected 

benefits restored if, subsequent to the event causing the benefit adjustment, the 

Participant:

(1) in the case of benefit adjustment caused by a Rehabilitation Plan 

Withdrawal (see Section 2(I) below), permanently ceases all employment 

with, and performance of services in any capacity for, the Contributing 

Employer (and any successors or trades or businesses under common 

control with such Employer within the meaning of ERISA § 4001(b)(1)) 

within 60 days of the occurrence of such Rehabilitation Plan Withdrawal; 

and

(2) in any case, subsequently earns one year of Contributory Service Credit 

with a Contributing Employer while that Employer is in compliance with 

the Primary Schedule described herein.

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H. ADJUSTABLE BENEFITS.

As used herein, Adjustable Benefits shall mean and include:

(1) Any right to receive a Retirement Pension Benefit (Pension Plan, Article 

IV) prior to age 65 [including without limitation any pre-age 65 benefits 

that would otherwise be payable as (i) a Twenty Year Service Pension 

(Pension Plan § 4.01); (ii) a Contributory Credit Pension (Pension Plan § 

4.04); (iii) a Vested Pension (Pension Plan § 4.07); (iv) a Deferred 

Pension (Pension Plan § 4.08); or (v) a Twenty-Year Deferred Pension 

(Pension Plan § 4.09)].

(2) Early retirement benefit or retirement-type subsidies [including without 

limitation (i) an Early Retirement Pension (Pension Plan § 4.02); (ii) a 25-

And-Out Pension (Pension Plan § 4.05); or a 30-And-Out Pension 

(Pension Plan § 4.06)].

(3) All Disability Benefits not yet in pay status (Pension Plan, Article V).

(4) Before Retirement Death Benefits (Pension Plan, Article VI) other than 

the 50% surviving spouse benefit.

(5) Post-retirement death benefits that are not part of the annuity form of 

payment.

(6) All Partial Pensions (Pension Plan, Appendix D), to the extent any such 

pension is tied to one or more of the Adjustable Benefits listed above.

(7) All Contribution-Based Pensions (Pension Plan § 4.03) except that, 

assuming the Participant meets all other requirements for receiving a 

Contribution-Based Pension, the Contribution-Based Pension is payable 

at age 65 reduced by 1/2% per month for each month prior to age 65 at 

the time of retirement with a minimum retirement age of 57. Such 

minimum retirement age shall not apply if the Participant retired prior to 

age 57 before the Participant’s Adjustable Benefits were eliminated or 

reduced. In such circumstance, the Participant shall be entitled to receive 

the Contribution-Based Pension reduced by 1/2% per month for each 

month prior to age 65 at the time of retirement. Provided, however, for 

Participants who (i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) do not have a benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] on or before July 1, 2011, the 

reductions in the Contribution-Based Pensions payable at age 65 

referenced in this subparagraph (7) shall be based on actuarial 

equivalence in accordance with the Schedule attached as Exhibit B 

hereto.

(8) To the extent not already included in paragraphs (1) - (7) above, the 

following categories of benefits listed and defined as “adjustable 

benefits” under ERISA§ 305(e)(8)(iv): 

(i) benefits, rights, and features under the plan, including postretirement death benefits, 60-month guarantees, disability 

benefits not yet in pay status, and similar benefits, 

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(ii) any early retirement benefit or retirement-type subsidy (within the 

meaning of ERISA Section 204(g)(2)(A)) and any benefit payment 

option (other than the qualified joint and survivor annuity), and

(iii) benefit increases that would not be eligible for a guarantee under 

ERISA Section 4022A on the first day of the Fund’s initial critical 

year under the PPA because the increases were adopted (or, if 

later, took effect) less than 60 months before such first day.

Provided, however, that except as provided in subparagraph (8)(iii) above, nothing in 

this paragraph shall be construed to reduce the level of a Participant’s accrued benefit 

payable at normal retirement.

I. REHABILITATION PLAN WITHDRAWAL

Subject to the discretionary authority of the Board of Trustees indicated in the 

final clause of this Subsection I, a “Rehabilitation Plan Withdrawal” occurs on 

the date a Contributing Employer (a) is no longer required to make Employer 

Contributions to the Pension Fund under one or more of its Collective 

Bargaining Agreements, or (b) undergoes a significant reduction in its obligation 

to make Employer Contributions resulting from outsourcing or subcontracting 

work covered by the applicable Collective Bargaining Agreement(s), as a result 

of actions by members of a Bargaining Unit (or its representatives) or the 

Contributing Employer, which actions include, but are not limited to the 

following:

(1) decertification or other removal of the Union as a bargaining agent;

(2) ratification or other acceptance of a Collective Bargaining Agreement 

which permits withdrawal of the Bargaining Unit, in whole or in part, from 

the Pension Plan;

(3) administrative termination of the Contributing Employer with respect to 

any or all of its Collective Bargaining Agreements due to: (i) a violation of 

the Fund’s rules with respect to the terms of a Collective Bargaining 

Agreement (including, without limitation, a provision providing for a split 

bargaining unit); or (ii) a violation of any other Fund rule or policy 

(including, without limitation, practices or arrangements that result in 

adverse selection);

(4) any transaction or other event (including, without limitation, a merger, 

consolidation, division, asset sale (other than an asset sale complying 

with ERISA § 4204), liquidation, dissolution, joint venture, outsourcing, 

subcontracting) whereby all or a portion of the operations for which the 

Contributing Employer has an obligation to contribute are continued 

(whether by the Contributing Employer or by another party) in whole or in 

part without maintaining the obligation to contribute to the Fund under 

the same or better terms (including, for example, as to number of 

participants and contribution rate) as existed before the transaction;

Provided, however, that with respect to the circumstances described in 

Subparagraphs. (3)(ii) or (4) above, the Board of Trustees shall have full 

discretionary authority to consider, weigh and balance the following factors in 

determining whether a Rehabilitation Plan Withdrawal has occurred:

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(i) the extent to which the affected Bargaining Unit or its bargaining 

representative participated in or controlled, or could have 

controlled or prevented, through bargaining, grievance 

procedures, NLRB proceedings, litigation or other means, the 

cessation of Employer Contributions;

(ii) the extent to which the affected Bargaining Unit benefited, 

directly or indirectly, from the cessation of Employer 

Contributions;

(iii) the extent to which the affected Bargaining Unit, or its bargaining 

representative, resisted or attempted to resist, or acquiesced in, 

the cessation of Employer Contributions;

(iv) the extent to which the affected Bargaining Unit, or any of its 

members, become engaged as employees or independent 

contractors in the service of operations that were or are in whole 

or in part a successor of the operations of the Contributing 

Employer who incurred the cessation of Employer Contributions; 

and

(v) the extent of the hardship that might be incurred by members of 

the affected Bargaining Unit by the elimination of Adjustable 

Benefits.

J. BENEFIT ADJUSTMENTS APPLICABLE TO ALL PARTICIPANTS 

(INCLUDING INACTIVE VESTED PARTICIPANTS) WHO HAVE NOT 

SUBMITTED A RETIREMENT APPLICATION ON OR BEFORE JULY 1, 

2011 AND DO NOT HAVE A BENEFIT COMMENCEMENT ON OR 

BEFORE THAT DATE.

Minimum Retirement Age 57.

Participants who (i) have not submitted a retirement application on or before 

July 1, 2011 and (ii) do not have a benefit commencement date [within the 

meaning of ERISA § 305(i)(10)] on or before July 1, 2011, will not be granted a 

Retirement Date prior to their 57th birthday and will not be eligible to receive 

retirement benefit payments of any type until after achieving age 57. 

Section 3. REHABILITATION PLAN STANDARDS AND OBJECTIVES.

The Schedules of Contributions and Benefits discussed above have been 

formulated by the Fund’s Board of Trustees as reasonable measures which, under 

reasonable actuarial assumptions, are designed and projected to forestall the 

possible insolvency of the Fund prior to 2026. Projections of insolvency may vary 

from year to year as actual experience may differ from assumptions.

The Trustees recognize the possibility that actual experience could be less 

favorable than the reasonable assumptions used for the Rehabilitation Plan on an 

annual basis. Consequently, the annual standards for meeting the requirements of 

the Rehabilitation Plan are as follows:

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• Actuarial projections updated for each year show, based on reasonable 

assumptions, that under the Rehabilitation Plan and its schedules (as 

amended and updated from time to time) the Fund will forestall its possible 

insolvency prior to 2023.

Section 4. ALTERNATIVES CONSIDERED BY THE TRUSTEES.

The Board of Trustees considered numerous alternatives [including combinations 

of contribution rate increases (and other updates to the schedules of contribution 

rates in light of the experience of the Fund) and benefit adjustments] that might 

enable the Fund to emerge from Critical Status either by the end of ten year PPA 

Rehabilitation Period (which began on January 1, 2011 and ends on December 31, 

2020), or to forestall possible insolvency indefinitely (beyond the date referenced 

above under the “Standards and Objectives” heading). Some of the alternatives 

considered were determined to be unreasonable measures. The various default 

and alternative schedules considered included the following:

Schedules considered by the Board of Trustees in formulating an initial 2008 

rehabilitation plan that might permit the Fund to emerge by the end of the 

Rehabilitation Period on December 31. 2020:

Schedule Benefit Reductions Contribution Rate Increases

Default Immediate maximum Critical Status benefit cuts 

for all participants to the extent permitted by law

15% per year until emergence 

in 2021 (plus an additional 

1.6% annual increase for 

Benefit Classes 14 and below) 

Alternative 1 Maintain current benefits 17% per year until emergence 

in 2021

Alternative 2 On the second anniversary of the new bargaining 

agreement, reduce the future benefit accrual rate 

from 1% of contributions payable at age 62 to 1% 

of contributions at payable at age 65

16% per year until emergence in

2021

In formulating the Fund’s initial rehabilitation plan in 2008, the Board of Trustees 

concluded that utilizing any and all possible measures to emerge from Critical Status by 

the end of the 10-year presumptive Rehabilitation Period described in ERISA Section 

305(e)(4), would be unreasonable and would involve considerable risk to the Fund and 

Fund participants. In particular, the Board of Trustees concluded that the continued 

existence of the Fund and the Trustees’ ability to maintain and improve the Fund’s 

funded status in accordance with the terms of the IRS approved amortization extension 

would be jeopardized by any attempt to emerge from critical status by the end of the 

presumptive 10-year Rehabilitation Period.

As shown above, based on January 1, 2008 valuation data, the emergence by the end 

of the presumptive 10 year Rehabilitation Period would require double-digit annual 

contribution rate increases. For example, the daily contribution rate would generally 

have to grow from $52 to over $300. Therefore, the Trustees concluded in 2008 that 

annual contribution rate increases above the 8%/6%/4% level in the Primary Schedule 

were not reasonable and could trigger mass withdrawals and significant losses to the 

Fund and the participants.

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During the process of updating the Rehabilitation Plan in 2010, 2011, 2012 and 2013 

the Trustees concluded that in light of current valuation data available in each of those 

years, the experience of the Fund and projections, the option available to the Fund 

under ERISA Section 305(e)(3)(ii) was to pursue reasonable measures to forestall a 

possible insolvency. The Trustees also concluded during the 2010, 2011, 2012 and 

2013 update process that requiring annual contribution increases above the level 

described in the Primary Schedule would not be reasonable and would likely accelerate 

a possible insolvency of the Fund rather than forestall it. 

In recent years, prior to Plan/calendar year 2013, the Trustees have implemented (and, 

where applicable, have continued to implement) numerous measures to improve the 

Fund’s funding. These have included:

• Reducing the benefit accrual rate from 2% of contributions to 1% of 

contributions;

• Protecting the “and-out” and early retirement benefits while freezing them at 

their year-end 2003 levels;

• Obtaining agreements from the major bargaining parties to reallocate significant 

amounts of annual benefit contributions to the Pension Fund;

• Obtaining an amortization extension from the Internal Revenue Service in 2005, 

and seeking a waiver of the conditions of that extension in 2009 in light of 

investment losses resulting from the weakness in financial markets in recent 

years;

• Requiring as a condition of continued participation in the Fund that new 

bargaining agreements in the last several years include significant annual 

contribution rate increases; 

• Providing information to Congress and federal agencies with respect to 

legislative or regulatory proposals that appear to assist in addressing the funding 

challenges confronting the Fund;

• Approving a Distressed Employer Schedule as part of the Fund’s Rehabilitation 

Plan under which YRC, Inc. and its affiliate USF Holland, Inc., two distressed 

(but historically significant) Contributing Employers, resumed Contributions in 

June 2011 at rates lower than would have been permitted under previous (pre2011) Rehabilitation Plan Schedules; this Distressed Employer Schedule 

significantly adjusted the benefits of the affected Bargaining Unit members, and 

helped assure that despite the lower Contribution rates, the continued 

participation of these Employers would tend to improve overall pension funding; 

and

• Adopting a new withdrawal liability method, and obtaining approval of that 

method by the Pension Benefit Guaranty Corporation, under which new 

Contributing Employers, and existing Contributing Employers who satisfy their 

withdrawal liability under the Fund’s historic (pre-2011) withdrawal liability 

method (i.e., the “modified presumptive method”), will have any future 

withdrawal liability determined under the “direct attribution” method; the Trustees 

believe that this “hybrid” method will be attractive to some Contributing 

Employers who wish to continue to participate in the Fund, but may be 

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concerned about the potential for future growth of their estimated withdrawal 

liability as calculated under the Fund’s prior (pre-2011) withdrawal liability 

method, and that this, in turn, will encourage continued participation in the Fund 

and tend to improve overall pension funding.

• Amending the Primary Schedule of the Rehabilitation Plan to permit Contributing 

Employers, who satisfy their existing withdrawal liability and qualify as New 

Employers eligible for the direct attribution method under the hybrid method, to 

comply with the Primary Schedule without the need for the contribution rate 

increases otherwise required under the Primary Schedule. The Trustees 

determined that this amendment to the Rehabilitation Plan will encourage 

existing Contributing Employers to satisfy their existing withdrawal liability and to 

continue their participation in the Fund as New Employers under the hybrid 

method; the Trustees determined that the New Employers’ participation on these 

terms would tend to improve overall pension funding.

As part of their responsibility to consider updates to the Rehabilitation Plan for Plan 

Year 2013, the Board of Trustees also determined that mandating additional significant 

benefit cuts (beyond those provided in this updated Rehabilitation Plan), or (as noted) 

mandating contribution rate increases at levels beyond those required in recent years, 

would substantially accelerate the rate at which employers would withdraw from the 

Fund, in large part because the Union could conclude that it would be in its members’ 

best interest to agree to withdrawals. The Board of Trustees also determined that this 

acceleration of employer withdrawals would, in turn, be counterproductive to the 

Trustees’ effort to forestall possible insolvency.

36.1.246
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TM:538126 / 01096280 / 01/01/2015 Appendix M-5 (Page 16 of 17)

Exhibit A 

Primary Schedule: Contribution Rate Increases By Bargaining Agreement Year 

(all rate increases are to be compounded annually) 

Calendar Year 

of Contribution 

Rate Increase

 

Year of initial Bargaining Agreement Conforming to Primary Schedule 

2006 & 

Earlier 2007 2008 2009 2010 2011 2012 2013 2014 

2006 7% 

2007 7% 8% 

2008 7% 8% 8% 

2009 7% 8% 8% 8% 

2010 7% 8% 8% 8% 8% 

2011 6% 8% 8% 8% 8% 8% 

2012 5% 6% 8% 8% 8% 8% 8% 

2013 4% 4% 6% 8% 8% 8% 8% 8% 

2014 4% 4% 6% 8% 8% 8% 8% 8% 8% 

2015 4% 4% 6% 8% 8% 8% 8% 8% 8% 

2016 4% 4% 4% 6% 8% 8% 8% 8% 8% 

2017 4% 4% 4% 4% 6% 8% 8% 8% 8% 

2018 4% 4% 4% 4% 4% 6% 8% 8% 8% 

2019 4% 4% 4% 4% 4% 4% 6% 8% 8% 

2020 4% 4% 4% 4% 4% 4% 4% 6% 8% 

2021 4% 4% 4% 4% 4% 4% 4% 4% 6% 

2022 4% 4% 4% 4% 4% 4% 4% 4% 4% 

2023 4% 4% 4% 4% 4% 4% 4% 4% 4% 

2024 4% 4% 4% 4% 4% 4% 4% 4% 4% 

2025 4% 4% 4% 4% 4% 4% 4% 4% 4% 

2026 4% 4% 4% 4% 4% 4% 4% 4% 4% 

2027 4% 4% 4% 4% 4% 4% 4% 4% 4% 

36.1.247
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TM:538126 / 01096280 / 01/01/2015 Appendix M-5 (Page 17 of 17)

EXHIBIT B

Schedule for Actuarial Reduction of Age 65 Benefits

(Applicable to Default Schedule and Rehabilitation Plan 

Withdrawal benefit adjustments for Participants who 

(i) have not submitted a retirement application on or

before July 1, 2011 and (ii) do not have a benefit commencement 

date [within the meaning of ERISA§ 305(i)(10)] on or before July 1, 2011)

 Percent of Age 65 Benefit Based on

 Age Actuarial Equivalence

65 100%

64 90%

63 81%

62 74%

61 67%

60 61%

59 55%

58 50%

57 46%

36.1.248
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 1 of 17)

APPENDIX M-6. REHABILITATION PLAN (INCLUDING 2014 UPDATE) 

Section 1. PREAMBLE AND DEFINITIONS. 

 Appendix M comprising the Rehabilitation Plan was added to the Pension Plan effective 

on and after March 26, 2008, and has been amended from time to time since then. 

 This Appendix M-6 is added to the Pension Plan effective on and after December 31, 

2014 in order to update the Rehabilitation Plan in compliance with the requirements of 

the Pension Protection Act of 2006 (“PPA”). 

 The Central States, Southeast and Southwest Areas Pension Fund (the “Fund”) was 

initially certified on March 24, 2008 by its actuary to be in “critical status” (sometimes 

referred to as the “red zone”) under the PPA: the Fund’s actuary has also certified the 

Fund to be in critical status in March of each subsequent year through March 201. The 

Fund’s Board of Trustees, as the plan sponsor of a “critical status” pension plan, is 

charged under the PPA with developing a “rehabilitation plan” designed to improve the 

financial condition of the Fund in accordance with the standards set forth in the PPA, 

and with annually updating the rehabilitation plan. Although for plan year 2009 the Fund 

was exempt from the update requirement, pursuant to an election under the Worker 

Retiree and Employer Recovery Act of 2008, for subsequent plan years the PPA 

provisions concerning the rehabilitation plan update process are applicable to the Fund. 

The purpose of this updated Rehabilitation Plan is to comply with those PPA provisions. 

 Under the PPA, a rehabilitation plan, including annual updates to the plan, must include 

one or more schedules showing revised benefit structures, revised contributions, or both, 

which, if adopted by the parties obligated under agreements participating in the pension 

plan, may reasonably be expected to enable the Fund to emerge from critical status in 

accordance with the rehabilitation plan. The PPA also provides that one of the 

rehabilitation plan schedules of benefits and contributions shall be designated the 

“default” schedule. The default schedule must assume that there are no increases in 

contributions under the plan other than the increases necessary to emerge from critical 

status after future benefit accruals and other benefits have been reduced to the 

maximum extent permitted by law. The PPA also creates certain categories of 

“adjustable benefits” which may be reduced or eliminated dependent upon the outcome 

of bargaining over the rehabilitation plan schedules and dependent on the exercise of 

certain flexibility and discretion conferred upon the Board of Trustees by the PPA. 

Adjustable benefits that may be affected in this manner include post-retirement death 

benefits, early retirement benefits or retirement-type subsidies, and generally any benefit 

that would be payable prior to normal retirement age (age 65 benefits under the Fund’s 

Plan Document - or, as discussed below, a Contribution Based Benefit actuarially 

reduced to be equivalent to an age 65 benefit). As noted, the PPA also requires annual 

updates of the rehabilitation plan. 

 Unless otherwise indicated, all capitalized terms herein shall have the definitions and 

meanings assigned to them in the Fund’s Pension Plan Document. 

36.1.249
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 2 of 17)

Section 2. SCHEDULES OF CONTRIBUTIONS AND BENEFITS. 

 With the PPA requirements outlined above in mind, the Fund’s Board of Trustees 

hereby provides the following PPA Schedules to the parties charged with bargaining 

over agreements requiring contributions to the Fund.

B. PRIMARY SCHEDULE (EXCEPT AS NOTED, PRESERVES 

ALL CURRENT BENEFITS).

1. Benefits

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers are in 

compliance with this Primary Schedule, there will be no change in benefit 

formulas, levels or payment options in effect on January 1, 2008, except 

that as provided in Section 2(J) below, Participants who (i) have not 

submitted a retirement application on or before July 1, 2011 and (ii) do 

not have a benefit commencement date (within the meaning of ERISA § 

305(i)(10)) on or before July 1, 2011, will not be granted a Retirement 

Date prior to their 57th birthday and will not be eligible to receive 

retirement benefit payments of any type until after achieving age 57.

Further, subject to the notice requirements of the PPA and other 

applicable law, any Bargaining Units (and any non-Bargaining Unit 

employee groups participating in the Fund) whose Contributing 

Employers incur a Rehabilitation Plan Withdrawal on or after March 26, 

2008 shall have their Adjustable Benefits listed in Section 2(H) below 

eliminated or reduced to the extent indicated in Section 2(B)(1) below.

2. Contributions

Compliance with the Primary Schedule requires annually compounded 

contribution rate increases in accordance with Exhibit A effective 

immediately after the expiration of the Collective Bargaining Agreement 

(or other agreement requiring contributions to the Fund) and each 

agreement anniversary date (or reallocation anniversary, where 

applicable) during the term of the new bargaining agreement to the 

extent indicated in Exhibit A, depending on the year that the new 

agreement is effective. Note that all contribution rate increases are 

annually compounded on the total contribution rate (including any 

reallocations of employee benefit contributions or agreed mid-contract 

contribution increases) immediately prior to the increase.

The required annual rate increase may be provided through annual 

allocations to pension contributions of general and aggregate employee 

benefit contribution increases that were negotiated at the outset of an 

agreement, but were not specifically allocated to pension contributions 

until subsequent contract years. The Primary Schedule requires 8% per 

year contribution rate increases for the first 5 years, 6% per year 

contribution rate increases for the next 3 years and 4% per year 

contribution rate increases each year thereafter for 2008 agreements 

under the Primary Schedule and comparable rate increases over time for 

all other agreements under the Primary Schedule (see Exhibit A).

36.1.250
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 3 of 17)

Provided, however, that absent further amendment to this rehabilitation 

plan, as of June 1, 2011, any Collective Bargaining Agreement requiring 

contributions of (1) $348 per week for each full-time employee with 

respect to Participants covered by the National Master Automobile 

Transporter Agreement, and (2) $342 per week for each full-time 

employee with respect to all other Participants, will be deemed to be in 

compliance with the Primary Schedule without the need for additional 

annual rate increases. 

Provided further that any Employer that qualifies as a New Employer 

under § 2.2(b) of Appendix E of the Pension Plan will be deemed, as of 

the date it qualifies as a New Employer, to be in compliance with the 

Primary Schedule without the need for additional contribution rate 

increases. 

B. DEFAULT SCHEDULE.

1. Benefits

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers agree to 

comply with this Default Schedule [or who become subject to the Default 

Schedule due to a failure to achieve an agreement to accept one of the 

Rehabilitation Plan Schedules within the time frame specified under 

ERISA § 305(e)(3)(C)], the benefit formulas, levels, and payment options 

in effect on January 1, 2008 will remain in effect except for the following, 

upon the effective date that the Default Schedule applies to the 

Bargaining Unit (or to any non-Bargaining Unit employee groups 

participating in the Fund):

• Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of contributions 

(the Contribution-Based Pension) remains in effect, with the 

modification that the Contribution Based Pension monthly 

benefit payable at age 65 is reduced by 1/2% per month for 

each month prior to age 65 with a minimum retirement age of 

57, except that, for Participants who (i) have not submitted a 

retirement application on or before July 1, 2011 and (ii) do 

not have a benefit commencement date [within the meaning 

of ERISA § 305(i)(10)] on or before July 1, 2011, the 

Contribution Based Pension monthly benefit payable at age 

65 shall be reduced to an actuarially equivalent benefit in 

accordance with the Schedule attached as Exhibit B with a 

minimum retirement age of 57.

2. Contributions

 Compliance with the Default Schedule consists of annually compounded 

contribution rate increases of 4% effective immediately after the 

expiration of the Collective Bargaining Agreement (or other agreement 

requiring contributions to the Fund) and each anniversary thereof during 

the term of the agreement. 

36.1.251
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 4 of 17)

3. Effect of agreement to or imposition of Default Schedule.

(i) If a Contributing Employer agrees to the Default Schedule with 

respect to a particular Bargaining Unit, the Fund will not accept 

any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, 

except as determined by the Board of Trustees in their sole 

discretion.

(ii) If a Contributing Employer becomes subject to the Default 

Schedule by operation of ERISA Section 305(e)(3)(C), because 

the bargaining parties have failed to adopt either of the 

Schedules compliant with this Rehabilitation Plan within 180 days 

of the expiration of their prior Collective Bargaining Agreement, 

the Fund will then accept a Collective Bargaining Agreement that 

is compliant with the Primary Schedule described in this 

Rehabilitation Plan, provided that such new Collective Bargaining 

Agreement provides for Primary Schedule contribution rates that 

are retroactive to the expiration date of the last Collective 

Bargaining Agreement that covered the affected Bargaining Unit.

C. DISTRESSED EMPLOYER SCHEDULE.

1. Benefits

With regard to Bargaining Units (and any non-Bargaining Unit employee 

groups participating in the Fund) whose Contributing Employers and 

contribution rates have been specifically accepted and approved by the 

Board of Trustees as satisfying the Qualifications for the Distressed 

Employer Schedule (as set forth in Section 2(C)(2) below), the benefit 

formulas, levels, and payment options in effect on January 1, 2008 will 

remain in effect except for the following, upon the effective date that the 

Distressed Employer Schedule applies to the Bargaining Unit (or to any 

non-Bargaining Unit employee group participating in the Fund) that is 

accepted by the Board of Trustees as qualifying under the Distressed 

Employer Schedule:

• Adjustable Benefits listed in Section 2(H) below are 

eliminated or reduced to the maximum extent permitted by 

law, but the future benefit accrual rate of 1% of contributions 

(the Contribution-Based Pension) remains in effect, with the 

modification that the Contribution Based Pension monthly 

benefit payable at age 65 is reduced by 1⁄2% per month for 

each month prior to age 65 with a minimum retirement age of 

57, except that, for Participants who (i) have not submitted a 

retirement application on or before July 1, 2011 and (ii) have 

not achieved a Retirement Date on or before July 1, 2011, 

the Contribution Based Pension monthly benefit payable at 

age 65 shall be reduced to an actuarially equivalent benefit in 

accordance with the Schedule attached as Exhibit B with a 

minimum retirement age of 57, and except that any 

Participant who (i) has achieved a minimum age of 55 as of 

the date of the Distressed Employer’s termination of 

participation in the Fund (see Section 2(C)(2) below) and (ii) 

36.1.252
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 5 of 17)

has accrued a minimum of 25 years credit towards a 

Contributory Credit Pension or an And-Out Pension as of that 

date (see Pension Plan §§ 4.04, 4.05 and 4.06), shall be 

entitled to retain his eligibility for (but not gain further credit 

towards) any such Pension, provided that any such 

Participant has a minimum retirement age of 62.

3. Contributions and Qualifications for the Distressed 

Employer Schedule.

The Board of Trustees may deem a Collective Bargaining Agreement 

with contribution rates not in compliance with either the Primary 

Schedule or the Default Schedule to be in compliance with and subject 

to the Distressed Employer Schedule, if in the Board of Trustees’ sole 

discretion, the Board determines that the Contributing Employer meets 

each of the following qualifications:

(i) the common stock of the Employer or its parent corporation (or 

other affiliate under 80% or more common control with the 

Employer) is publicly traded and registered pursuant to the 

securities laws of the United States; 

(ii) the Employer has previously incurred a termination of its 

participation in the Fund due to an inability to remain current in 

its Contribution obligations, and the Employer was in terminated 

status immediately prior to executing the Agreement sought to 

be qualified under the Distressed Employer Schedule; 

(iii) during the last ten years in which the Employer participated in 

the Fund prior to its termination, it had paid contributions to the 

Fund on behalf of at least 1,000 full-time employees per month 

(or had, including part-time employees, paid contributions on 

behalf of the equivalent of at least 1,000 full-time employees 

per month for the specified ten year period); 

(iv) the Employer submits to a review of its financial condition and 

operations by the Fund’s Staff and outside expert and 

consultants, and agrees to reimburse the Fund for all fees and 

expenses incurred by the Fund in this review (including, but not 

limited to, reimbursement to the Fund for the time devoted by the 

Fund’s Staff to any such review, with this reimbursement to be 

made at market rates for comparable services performed by 

Fund’s Staff);

(v) on the basis of this financial and operational review, it appears 

that the Employer is not able to contribute to the Fund at a higher 

rate than is indicated in the Collective Bargaining Agreement 

proposed for acceptance under the Distressed Employer 

Schedule, and that acceptance of the proposed Agreement is in 

the best interest of the Fund under all the circumstances and 

advances the goals of this Rehabilitation Plan; and

(vi) the Employer provides the Fund with first lien collateral in any 

and all unencumbered assets to the fullest extent it is able in 

36.1.253
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 6 of 17)

order to fully secure (i) any delinquent or deferred Contribution 

obligations owed to the Fund, (ii) the Employer’s obligation to 

make current and future pension contributions to the Fund, and 

(iii) any future withdrawal liability potentially incurred by the 

Employer (with the amount of such potential withdrawal liability to 

be determined based on estimates to be provided by the Fund).

3. Effect of agreement to or imposition of the Distressed 

Employer Schedule.

If a Contributing Employer becomes subject to the Distressed Employer 

Schedule with respect to a particular Bargaining Unit, the Fund will not 

accept any subsequent Collective Bargaining Agreements covering that 

Bargaining Unit which are compliant with the Primary Schedule, except 

as determined by the Board of Trustees in their sole discretion.

D. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO 

HAVE EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER 

INCURRING A REHABILITATION PLAN WITHDRAWAL.

Subject to the provisos indicated in the final clauses of this Subsection D, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Subsection B(1) 

above) with respect to Participants whose benefit commencement date [within 

the meaning of ERISA § 305(i)(10)] with the Fund is on or after April 8, 2008, 

and:

(1) whose last Hour of Service prior to January 1, 2008 was earned while 

employed by United Parcel Service, Inc. (“UPS”), or with any trades or 

businesses at any time under common control with UPS, within the 

meaning of ERISA § 4001(b)(1); or 

(2) who (i) has earned or earns an Hour of Service while employed with a 

Contributing Employer (or any predecessor or successor entity) that at 

any time on or after March 26, 2008 incurs a Rehabilitation Plan 

Withdrawal (see Section 2(I) below), and (ii) whose last year of 

Contributory Service Credit prior to the Rehabilitation Plan Withdrawal 

was earned while a member of a Bargaining Unit (or any predecessor or 

successor Bargaining Unit) ultimately incurring such Withdrawal.

Proviso 1: Provided, however, that any Pensioner otherwise subject to the 

elimination of Adjustable Benefits, due to a Rehabilitation Plan Withdrawal 

pursuant Section 2(D)(2) above, who has a benefit commencement date [within 

the meaning of ERISA § 305(i)(10)] one year or more prior to the earlier of: (i) 

the date of such Rehabilitation Plan Withdrawal or (ii) the date of the expiration 

of the last Collective Bargaining Agreement requiring Employer Contributions 

under the Primary Schedule prior to such Withdrawal, shall not be subject to the 

elimination of Adjustable Benefits provided that the Pensioner does not engage 

in Restricted Reemployment at any time subsequent to the benefit 

commencement date.

Proviso 2: And provided further that in the event of a Rehabilitation Plan 

Withdrawal resulting from an administrative termination of a Contributing 

Employer as referenced in Section 2(I)(3)(ii) below, the Board of Trustees shall 

36.1.254
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 7 of 17)

have full discretionary authority (A) to decline to apply the elimination of 

Adjustable Benefits to Participants otherwise affected by a Rehabilitation Plan 

Withdrawal of this type who have submitted a pension application naming a 

Retirement Date to the Fund on or before the date selected by the Trustees as 

the effective date of the administrative termination which ended the Employer’s 

obligation to contribute to the Pension Fund, and (B) to decline to apply the 

requirement of Section 2(G) below that a Participant incurring a benefit 

adjustment due to Rehabilitation Plan Withdrawal must cease employment with 

and the performance of services for the withdrawn Employer within 60 days of 

the Rehabilitation Plan Withdrawal in order to eventually qualify for a restoration 

of benefits; in exercising their discretionary authority under this Proviso 2, the 

Board of Trustees shall consider, weigh and balance the following factors:

(i) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination were aware of, participated in or 

controlled, or could have controlled or prevented, through 

bargaining, grievance procedures, NLRB proceedings, litigation 

or other means, the circumstances that led to the administrative 

termination of the Employer;

(ii) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination benefited, directly or indirectly from the 

cessation of Employer Contributions or from the circumstances 

that led to the administrative termination of the Employer;

(iii) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination resisted or attempted to alter, or 

acquiesced in, the circumstances that led to the administrative 

termination of the Employer;

(iv) the extent to which any actively employed members of the 

affected Bargaining Unit or any members who submitted a 

retirement application prior to the effective date of the 

administrative termination have become engaged as employees 

or independent contractors in the service of operations that were 

or are in whole or in part a successor of the operations of the 

Employer that has undergone the administrative termination; and

(v) the extent of the hardship that might be incurred by any actively 

employed members of the affected Bargaining Unit or by any 

members who submitted a retirement application prior to the 

effective date of the administrative termination due to the 

elimination of Adjustable Benefits.

Proviso 3: And provided further that the spouse of any Participant otherwise 

subject to the elimination of Adjustable Benefits, due to a Rehabilitation Plan 

Withdrawal pursuant to Subsection D(2) above, shall not incur a loss of 

Adjustable Benefits with respect to any Surviving Spouse Benefits for which 

36.1.255
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 8 of 17)

such spouse has a benefit commencement date [within the meaning of ERISA 

Section 305(i)(10)] prior to the date of the Rehabilitation Plan Withdrawal.

E. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO 

BECOMES SUBJECT TO THE DEFAULT SCHEDULE.

Subject to the provisos indicated in the final clauses of this Subsection E, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (to the same extent indicated in Section B(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and:

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

becomes subject (by agreement or otherwise) to the Default Schedule 

described herein; and

(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Default Schedule was earned while a member of 

a Bargaining Unit (or any predecessor or successor Bargaining Unit) that 

ultimately became subject to the Default Schedule.

Proviso 1: Provided, however. that any Pensioner otherwise subject to the 

elimination of Adjustable Benefits, due to his Contributing Employer becoming 

subject to the Default Schedule pursuant to this Subsection E, who has a benefit 

commencement date [within the meaning of ERISA § 305(i)(10)] one year or 

more prior to the Contributing Employer becoming subject to the Default 

Schedule, shall not be subject to the elimination of Adjustable Benefits provided 

that the Pensioner does not engage in Restricted Reemployment at any time 

subsequent to the benefit commencement date.

Proviso 2: And provided further that the spouse of any Participant otherwise 

subject to the elimination of Adjustable Benefits, due to his Contributing 

Employer becoming subject to the Default Schedule pursuant this Subsection E. 

shall not incur a loss of Adjustable Benefits with respect to any Surviving Spouse 

Benefits for which such spouse has a benefit commencement date [within the 

meaning of ERISA Section 305(i)(10)] prior to the date on which the Contributing 

Employer became subject to the Default Schedule.

F. ADJUSTMENT OF BENEFITS OF CERTAIN PARTICIPANTS WHO HAVE 

EARNED CONTRIBUTORY SERVICE WITH AN EMPLOYER WHO 

BECOMES SUBJECT TO THE DISTRESSED EMPLOYER SCHEDULE.

Subject to the provisos indicated in the final clauses of this Subsection F, 

effective March 26, 2008, all Adjustable Benefits (listed below in Section 2(H)) 

shall be eliminated or reduced (with the exception indicated in Section 2(C)(1) 

above) with respect to any Participants whose benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] is on or after April 8, 2008, and:

(1) who have earned any Contributory Service Credit with a Contributing 

Employer (or any predecessor or successor entity) that at any time 

36.1.256
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 9 of 17)

becomes subject (by agreement or otherwise) to the Distressed 

Employer Schedule described herein; and

(2) whose last year of Contributory Service Credit prior to the Employer’s 

becoming subject to the Distressed Employer Schedule was earned 

while a member of a Bargaining Unit (or any predecessor or successor 

Bargaining Unit) that ultimately became subject to the Distressed 

Employer Schedule.

Proviso 1: Provided, however, that any Pensioner otherwise subject to the 

reduction in Adjustable Benefits indicated in the Distressed Employer Schedule, 

due to his Contributing Employer becoming subject to that Schedule pursuant to 

this Subsection F, who has a benefit commencement date [within the meaning 

of ERISA Section 305(i)(10)] one year or more prior to the Contributing 

Employer becoming subject to the Distressed Employer Schedule, shall not be 

subject to the reduction of Adjustable Benefits otherwise mandated by the 

Distressed Employer Schedule provided that the Pensioner does not engage in 

Restricted Reemployment at any time subsequent to the benefit 

commencement date, and provided further that with respect to Bargaining Units 

that become subject to the Distressed Employer Schedule on or prior to June 1, 

2011, no Pensioners with Retirement Dates prior to September 24, 2010 shall 

be subject to such Distressed Employer Schedule benefit reduction.

Proviso 2: And provided further that the spouse of any Participant otherwise 

subject to the reduction of Adjustable Benefits. due to his Contributing Employer 

becoming subject to the Distressed Employer Schedule pursuant to this 

Subsection F, shall not incur a loss of Adjustable Benefits with respect to any 

Surviving Spouse Benefits for which such surviving spouse has a benefit 

commencement date [within the meaning of ERISA Section 305(i)(10)] prior to 

the date on which the Contributing Employer became subject to the Distressed 

Employer Schedule, and provided further in any event that with respect to 

Bargaining Units that become subject to the Distressed Employer Schedule on 

or prior to June 1, 2011, no spouse shall be subject to such Distressed 

Employer Schedule benefit reduction if the Participant’s death occurred prior to 

September 24, 2010.

G. RESTORATION OF ADJUSTED BENEFITS.

Any Participant who incurs a benefit adjustment or elimination under the terms 

of Sections 2(A), 2(B), 2(C), 2(D), 2(E) or 2(F) above may have those affected 

benefits restored if, subsequent to the event causing the benefit adjustment, the 

Participant:

(1) in the case of benefit adjustment caused by a Rehabilitation Plan 

Withdrawal (see Section 2(I) below), permanently ceases all employment 

with, and performance of services in any capacity for, the Contributing 

Employer (and any successors or trades or businesses under common 

control with such Employer within the meaning of ERISA § 4001(b)(1)) 

within 60 days of the occurrence of such Rehabilitation Plan Withdrawal; 

and

(2) in any case, subsequently earns one year of Contributory Service Credit 

with a Contributing Employer while that Employer is in compliance with 

the Primary Schedule described herein.

36.1.257
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 10 of 17)

H. ADJUSTABLE BENEFITS.

As used herein, Adjustable Benefits shall mean and include:

(1) Any right to receive a Retirement Pension Benefit (Pension Plan, Article 

IV) prior to age 65 [including without limitation any pre-age 65 benefits 

that would otherwise be payable as (i) a Twenty Year Service Pension 

(Pension Plan § 4.01); (ii) a Contributory Credit Pension (Pension Plan § 

4.04); (iii) a Vested Pension (Pension Plan § 4.07); (iv) a Deferred 

Pension (Pension Plan § 4.08); or (v) a Twenty-Year Deferred Pension 

(Pension Plan § 4.09)].

(2) Early retirement benefit or retirement-type subsidies [including without 

limitation (i) an Early Retirement Pension (Pension Plan § 4.02); (ii) a 25-

And-Out Pension (Pension Plan § 4.05); or a 30-And-Out Pension 

(Pension Plan § 4.06)].

(3) All Disability Benefits not yet in pay status (Pension Plan, Article V).

(4) Before Retirement Death Benefits (Pension Plan, Article VI) other than 

the 50% surviving spouse benefit.

(5) Post-retirement death benefits that are not part of the annuity form of 

payment.

(6) All Partial Pensions (Pension Plan, Appendix D), to the extent any such 

pension is tied to one or more of the Adjustable Benefits listed above.

(7) All Contribution-Based Pensions (Pension Plan § 4.03) except that, 

assuming the Participant meets all other requirements for receiving a 

Contribution-Based Pension, the Contribution-Based Pension is payable 

at age 65 reduced by 1/2% per month for each month prior to age 65 at 

the time of retirement with a minimum retirement age of 57. Such 

minimum retirement age shall not apply if the Participant retired prior to 

age 57 before the Participant’s Adjustable Benefits were eliminated or 

reduced. In such circumstance, the Participant shall be entitled to receive 

the Contribution-Based Pension reduced by 1/2% per month for each 

month prior to age 65 at the time of retirement. Provided, however, for 

Participants who (i) have not submitted a retirement application on or 

before July 1, 2011 and (ii) do not have a benefit commencement date 

[within the meaning of ERISA § 305(i)(10)] on or before July 1, 2011, the 

reductions in the Contribution-Based Pensions payable at age 65 

referenced in this subparagraph (7) shall be based on actuarial 

equivalence in accordance with the Schedule attached as Exhibit B 

hereto.

(8) To the extent not already included in paragraphs (1) - (7) above, the 

following categories of benefits listed and defined as “adjustable 

benefits” under ERISA§ 305(e)(8)(iv): 

36.1.258
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 11 of 17)

(i) benefits, rights, and features under the plan, including postretirement death benefits, 60-month guarantees, disability 

benefits not yet in pay status, and similar benefits, 

(ii) any early retirement benefit or retirement-type subsidy (within the 

meaning of ERISA Section 204(g)(2)(A)) and any benefit payment 

option (other than the qualified joint and survivor annuity), and

(iii) benefit increases that would not be eligible for a guarantee under 

ERISA Section 4022A on the first day of the Fund’s initial critical 

year under the PPA because the increases were adopted (or, if 

later, took effect) less than 60 months before such first day.

Provided, however, that except as provided in subparagraph (8)(iii) above, nothing in 

this paragraph shall be construed to reduce the level of a Participant’s accrued benefit 

payable at normal retirement.

I. REHABILITATION PLAN WITHDRAWAL

Subject to the discretionary authority of the Board of Trustees indicated in the 

final clause of this Subsection I, a “Rehabilitation Plan Withdrawal” occurs on 

the date a Contributing Employer (a) is no longer required to make Employer 

Contributions to the Pension Fund under one or more of its Collective 

Bargaining Agreements, or (b) undergoes a significant reduction in its obligation 

to make Employer Contributions resulting from outsourcing or subcontracting 

work covered by the applicable Collective Bargaining Agreement(s), as a result 

of actions by members of a Bargaining Unit (or its representatives) or the 

Contributing Employer, which actions include, but are not limited to the 

following:

(1) decertification or other removal of the Union as a bargaining agent;

(2) ratification or other acceptance of a Collective Bargaining Agreement 

which permits withdrawal of the Bargaining Unit, in whole or in part, from 

the Pension Plan;

(3) administrative termination of the Contributing Employer with respect to 

any or all of its Collective Bargaining Agreements due to: (i) a violation of 

the Fund’s rules with respect to the terms of a Collective Bargaining 

Agreement (including, without limitation, a provision providing for a split 

bargaining unit); or (ii) a violation of any other Fund rule or policy 

(including, without limitation, practices or arrangements that result in 

adverse selection);

(4) any transaction or other event (including, without limitation, a merger, 

consolidation, division, asset sale (other than an asset sale complying 

with ERISA § 4204), liquidation, dissolution, joint venture, outsourcing, 

subcontracting) whereby all or a portion of the operations for which the 

Contributing Employer has an obligation to contribute are continued 

(whether by the Contributing Employer or by another party) in whole or in 

part without maintaining the obligation to contribute to the Fund under 

the same or better terms (including, for example, as to number of 

participants and contribution rate) as existed before the transaction;

36.1.259
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 12 of 17)

Provided, however, that with respect to the circumstances described in 

Subparagraphs. (3)(ii) or (4) above, the Board of Trustees shall have full 

discretionary authority to consider, weigh and balance the following factors in 

determining whether a Rehabilitation Plan Withdrawal has occurred:

(i) the extent to which the affected Bargaining Unit or its bargaining 

representative participated in or controlled, or could have 

controlled or prevented, through bargaining, grievance 

procedures, NLRB proceedings, litigation or other means, the 

cessation of Employer Contributions;

(ii) the extent to which the affected Bargaining Unit benefited, 

directly or indirectly, from the cessation of Employer 

Contributions;

(iii) the extent to which the affected Bargaining Unit, or its bargaining 

representative, resisted or attempted to resist, or acquiesced in, 

the cessation of Employer Contributions;

(iv) the extent to which the affected Bargaining Unit, or any of its 

members, become engaged as employees or independent 

contractors in the service of operations that were or are in whole 

or in part a successor of the operations of the Contributing 

Employer who incurred the cessation of Employer Contributions; 

and

(v) the extent of the hardship that might be incurred by members of 

the affected Bargaining Unit by the elimination of Adjustable 

Benefits.

J. BENEFIT ADJUSTMENTS APPLICABLE TO ALL PARTICIPANTS 

(INCLUDING INACTIVE VESTED PARTICIPANTS) WHO HAVE NOT 

SUBMITTED A RETIREMENT APPLICATION ON OR BEFORE JULY 1, 

2011 AND DO NOT HAVE A BENEFIT COMMENCEMENT ON OR 

BEFORE THAT DATE.

Minimum Retirement Age 57.

Participants who (i) have not submitted a retirement application on or before 

July 1, 2011 and (ii) do not have a benefit commencement date [within the 

meaning of ERISA § 305(i)(10)] on or before July 1, 2011, will not be granted a 

Retirement Date prior to their 57th birthday and will not be eligible to receive 

retirement benefit payments of any type until after achieving age 57. 

Section 3. REHABILITATION PLAN STANDARDS AND OBJECTIVES.

The Schedules of Contributions and Benefits discussed above have been 

formulated by the Fund’s Board of Trustees as reasonable measures which, under 

reasonable actuarial assumptions, are designed and projected to forestall the 

possible insolvency of the Fund prior to 2026. Projections of insolvency may vary 

from year to year as actual experience may differ from assumptions.

36.1.260
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 13 of 17)

The Trustees recognize the possibility that actual experience could be less 

favorable than the reasonable assumptions used for the Rehabilitation Plan on an 

annual basis. Consequently, the annual standards for meeting the requirements of 

the Rehabilitation Plan are as follows:

• Actuarial projections updated for each year show, based on reasonable 

assumptions, that under the Rehabilitation Plan and its schedules (as 

amended and updated from time to time) the Fund will forestall its possible 

insolvency prior to 2023.

Section 4. ALTERNATIVES CONSIDERED BY THE TRUSTEES.

The Board of Trustees considered numerous alternatives [including combinations 

of contribution rate increases (and other updates to the schedules of contribution 

rates in light of the experience of the Fund) and benefit adjustments] that might 

enable the Fund to emerge from Critical Status either by the end of ten year PPA 

Rehabilitation Period (which began on January 1, 2011 and ends on December 31, 

2020), or to forestall possible insolvency indefinitely (beyond the date referenced 

above under the “Standards and Objectives” heading). Some of the alternatives 

considered were determined to be unreasonable measures. The various default 

and alternative schedules considered included the following:

Schedules considered by the Board of Trustees in formulating an initial 2008 

rehabilitation plan that might permit the Fund to emerge by the end of the 

Rehabilitation Period on December 31. 2020:

Schedule Benefit Reductions Contribution Rate Increases

Default Immediate maximum Critical Status benefit cuts 

for all participants to the extent permitted by law

15% per year until emergence 

in 2021 (plus an additional 

1.6% annual increase for 

Benefit Classes 14 and below) 

Alternative 1 Maintain current benefits 17% per year until emergence 

in 2021

Alternative 2 On the second anniversary of the new bargaining 

agreement, reduce the future benefit accrual rate 

from 1% of contributions payable at age 62 to 1% 

of contributions at payable at age 65

16% per year until emergence in 

2021

In formulating the Fund’s initial rehabilitation plan in 2008, the Board of Trustees 

concluded that utilizing any and all possible measures to emerge from Critical Status by 

the end of the 10-year presumptive Rehabilitation Period described in ERISA Section 

305(e)(4), would be unreasonable and would involve considerable risk to the Fund and 

Fund participants. In particular, the Board of Trustees concluded that the continued 

existence of the Fund and the Trustees’ ability to maintain and improve the Fund’s 

funded status in accordance with the terms of the IRS approved amortization extension 

would be jeopardized by any attempt to emerge from critical status by the end of the 

presumptive 10-year Rehabilitation Period.

36.1.261
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 14 of 17)

As shown above, based on January 1, 2008 valuation data, the emergence by the end 

of the presumptive 10 year Rehabilitation Period would require double-digit annual 

contribution rate increases. For example, the daily contribution rate would generally 

have to grow from $52 to over $300. Therefore, the Trustees concluded in 2008 that 

annual contribution rate increases above the 8%/6%/4% level in the Primary Schedule 

were not reasonable and could trigger mass withdrawals and significant losses to the 

Fund and the participants.

During the process of updating the Rehabilitation Plan in through the Trustees 

concluded that in light of current valuation data available in each of those years, the 

experience of the Fund and projections, the option available to the Fund under ERISA 

Section 305(e)(3)(ii) was to pursue reasonable measures to forestall a possible 

insolvency. The Trustees also concluded during the 2010 - 2014 update processes that 

requiring annual contribution increases above the level described in the Primary 

Schedule would not be reasonable and would likely accelerate a possible insolvency of 

the Fund rather than forestall it. 

In recent years, prior to Plan/calendar year 2014, the Trustees have implemented (and, 

where applicable, have continued to implement) numerous measures to improve the 

Fund’s funding. These have included:

• Reducing the benefit accrual rate from 2% of contributions to 1% of 

contributions;

• Protecting the “and-out” and early retirement benefits while freezing them at 

their year-end 2003 levels;

• Obtaining agreements from the major bargaining parties to reallocate significant 

amounts of annual benefit contributions to the Pension Fund;

• Obtaining an amortization extension from the Internal Revenue Service in 2005, 

and seeking a waiver of the conditions of that extension in 2009 in light of 

investment losses resulting from the weakness in financial markets in recent 

years;

• Requiring as a condition of continued participation in the Fund that new 

bargaining agreements in the last several years include significant annual 

contribution rate increases; 

• Providing information to Congress and federal agencies with respect to 

legislative or regulatory proposals that appear to assist in addressing the funding 

challenges confronting the Fund;

• Approving a Distressed Employer Schedule as part of the Fund’s Rehabilitation 

Plan under which YRC, Inc. and its affiliate USF Holland, Inc., two distressed 

(but historically significant) Contributing Employers, resumed Contributions in 

June 2011 at rates lower than would have been permitted under previous (pre2011) Rehabilitation Plan Schedules; this Distressed Employer Schedule 

significantly adjusted the benefits of the affected Bargaining Unit members, and 

helped assure that despite the lower Contribution rates, the continued 

participation of these Employers would tend to improve overall pension funding; 

and

36.1.262
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 15 of 17)

• Adopting a new withdrawal liability method, and obtaining approval of that 

method by the Pension Benefit Guaranty Corporation, under which new 

Contributing Employers, and existing Contributing Employers who satisfy their 

withdrawal liability under the Fund’s historic (pre-2011) withdrawal liability 

method (i.e., the “modified presumptive method”), will have any future 

withdrawal liability determined under the “direct attribution” method; the Trustees 

believe that this “hybrid” method will be attractive to some Contributing 

Employers who wish to continue to participate in the Fund, but may be 

concerned about the potential for future growth of their estimated withdrawal 

liability as calculated under the Fund’s prior (pre-2011) withdrawal liability 

method, and that this, in turn, will encourage continued participation in the Fund 

and tend to improve overall pension funding.

• Amending the Primary Schedule of the Rehabilitation Plan to permit Contributing 

Employers, who satisfy their existing withdrawal liability and qualify as New 

Employers eligible for the direct attribution method under the hybrid method, to 

comply with the Primary Schedule without the need for the contribution rate 

increases otherwise required under the Primary Schedule. The Trustees 

determined that this amendment to the Rehabilitation Plan will encourage 

existing Contributing Employers to satisfy their existing withdrawal liability and to 

continue their participation in the Fund as New Employers under the hybrid 

method; the Trustees determined that the New Employers’ participation on these 

terms would tend to improve overall pension funding.

As part of their responsibility to consider updates to the Rehabilitation Plan for Plan 

Year 2014, the Board of Trustees also determined that mandating additional significant 

benefit cuts (beyond those provided in this updated Rehabilitation Plan), or (as noted) 

mandating contribution rate increases at levels beyond those required in recent years, 

would substantially accelerate the rate at which employers would withdraw from the 

Fund, in large part because the Union could conclude that it would be in its members’ 

best interest to agree to withdrawals. The Board of Trustees also determined that this 

acceleration of employer withdrawals would, in turn, be counterproductive to the 

Trustees’ effort to forestall possible insolvency.

36.1.263
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 16 of 17)

Exhibit A 

Primary Schedule: Contribution Rate Increases By Bargaining Agreement Year 

(all rate increases are to be compounded annually) 

Calendar 

Year of 

Contribution 

Rate 

 

Year of initial Bargaining Agreement Conforming to Primary Schedule 

2006 

& 

Earlier

2007 2008 2009 2010 2011 2012 2013 2014 2015 

2006 7% 

2007 7% 8% 

2008 7% 8% 8% 

2009 7% 8% 8% 8% 

2010 7% 8% 8% 8% 8% 

2011 6% 8% 8% 8% 8% 8% 

2012 5% 6% 8% 8% 8% 8% 8% 

2013 4% 4% 6% 8% 8% 8% 8% 8% 

2014 4% 4% 6% 8% 8% 8% 8% 8% 8% 

2015 4% 4% 6% 8% 8% 8% 8% 8% 8% 8% 

2016 4% 4% 4% 6% 8% 8% 8% 8% 8% 8% 

2017 4% 4% 4% 4% 6% 8% 8% 8% 8% 8% 

2018 4% 4% 4% 4% 4% 6% 8% 8% 8% 8% 

2019 4% 4% 4% 4% 4% 4% 6% 8% 8% 8% 

2020 4% 4% 4% 4% 4% 4% 4% 6% 8% 8% 

2021 4% 4% 4% 4% 4% 4% 4% 4% 6% 8% 

2022 4% 4% 4% 4% 4% 4% 4% 4% 4% 6% 

2023 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 

2024 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 

2025 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 

2026 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 

2027 4% 4% 4% 4% 4% 4% 4% 4% 4% 4% 

36.1.264
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 TM:538126 / 01096280 / 01/01/2015 Appendix M-6 (Page 17 of 17)

EXHIBIT B

Schedule for Actuarial Reduction of Age 65 Benefits

(Applicable to Default Schedule and Rehabilitation Plan 

Withdrawal benefit adjustments for Participants who 

(i) have not submitted a retirement application on or

before July 1, 2011 and (ii) do not have a benefit commencement 

date [within the meaning of ERISA§ 305(i)(10)] on or before July 1, 2011)

 Percent of Age 65 Benefit Based on

 Age Actuarial Equivalence

65 100%

64 90%

63 81%

62 74%

61 67%

60 61%

59 55%

58 50%

57 46%

36.1.265
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 TM:538126 / 01096280 / 01/01/2015 Appendix N (Page 1 of 3)

APPENDIX N. PUERTO RICO PROVISIONS 

Section 1. PREAMBLE 

This Appendix N is added to the Pension Plan (this “Pension Plan”) by the Board of 

Trustees, effective on or after January 1, 2014. The provisions of this Appendix N shall 

apply solely with respect to Participants who are employed by a Contributing Employer that 

is engaged in business in the Commonwealth of Puerto Rico (a “Puerto Rico Employer”) and 

who are bona fide residents of the Commonwealth of Puerto Rico or who perform labor or 

services primarily within the Commonwealth of Puerto Rico, regardless of residence for 

other purposes (the “Puerto Rico Participants”). With respect to the Puerto Rico Participants, 

the Board of Trustees intends the Plan to qualify, effective January 1, 2011, under Section 

1081.01(a) of the Puerto Rico Internal Revenue Code of 2011, as amended from time to 

time (the “2011 PR Code”), such that benefits provided hereunder, prior to distribution, are 

not currently taxable to the Puerto Rico Participant, the Puerto Rico Employers are entitled 

to a deduction for Puerto Rico tax purposes, and the Puerto Rico Participants may enjoy any 

preferential tax treatment available under the 2011 PR Code for rollovers from and to, and 

distributions from a Puerto Rico tax qualified retirement plan. The provisions of this 

Appendix N are generally effective January 1, 2014 unless provided otherwise. 

Notwithstanding anything herein to the contrary, no Puerto Rico Participant's Accrued 

Benefit as of December 31, 2011, shall be reduced because of this Appendix N. 

Notwithstanding the foregoing, solely for Puerto Rico tax qualification purposes and solely 

with respect to the Puerto Rico Participants, this Appendix N is effective as of January 1, 

2011, unless otherwise provided in this Appendix N. 

Section 2. TYPE OF PLAN 

Effective January 1, 2011, the Board of Trustees intends that the Plan (including the trust 

agreement forming a part thereof), as applied to Puerto Rico Participants, be a defined 

benefit plan for the exclusive benefit of its Employees or their Beneficiaries as provided for 

in Section 1081.01(a) of the 2011 PR Code, and is to be interpreted and administered in a 

manner consistent with that intent. With respect to the Puerto Rico Participants, the Plan will 

at all times be maintained and administered in accordance with any applicable laws and 

regulations of the Commonwealth of Puerto Rico in connection with contributions and 

accrual of benefits related to the Puerto Rico Participants, unless contrary to the applicable 

provisions of the Code or ERISA. 

Section 3. AFFILIATE 

Effective for Plan Years beginning on or after January 1, 2012, for purposes of the 

qualification requirements and the non-discrimination and coverage testing provisions of 

Sections 1081.01(a) of the 2011 PR Code, the term “Affiliate” means the employers that are 

corporations and business organizations which together with a Puerto Rico Employer are 

members of a controlled group of corporations, or organizations under common control, or 

of affiliated service groups, as such terms are defined in Sections 1081.01(a)(14)(B) and 

1010.04 of the 2011 PR Code. For purposes of determining whether or not a person is an 

employee of the controlled group and the period of employment of such person, each entity 

(other than the Puerto Rico Employer) shall be considered an Affiliate only for such period or 

periods during which such entity is a member of a controlled group or under common 

control. 

36.1.266
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 TM:538126 / 01096280 / 01/01/2015 Appendix N (Page 2 of 3)

Section 4. PUERTO RICO COMPENSATION 

Notwithstanding any provision of the Plan to the contrary, only with respect to a Puerto Rico 

Participant, a Puerto Rico Participant’s Compensation shall include contributions made on 

behalf of the Puerto Rico Participant by his/her Puerto Rico Employer that are not currently 

includible in the Puerto Rico Participant’s gross income by reason of the application of 

Sections 1081.01(b)(1) and (d)(5). Notwithstanding the foregoing, effective for Plan Years 

beginning on or after January 1, 2012, a Puerto Rico Participant's Compensation shall not 

exceed the applicable annual compensation limit for any Plan Year determined under 

Section 1081.01(a)(12) of the 2011 PR Code. 

Section 5. MAXIMUM BENEFIT LIMITATION 

Notwithstanding any provision of the Plan to the contrary, only with respect to a Puerto Rico 

Participant, effective for Plan Years beginning on or after January 1, 2012, the amount of a 

Puerto Rico Participant's Annual Benefit, including the right to any optional benefit provided 

under the Plan, credited to a Puerto Rico Participant for any Limitation Year shall not exceed 

the applicable annual limit provided in Section 1081.01(a)(11) of the 2011 PR Code (i.e., for 

2012, the lesser of (i) $200,000 (expressed as a straight life annuity with no ancillary 

benefits) or (ii) one hundred percent of the Participant’s average highest Compensation for a 

period not exceeding three years). For the purpose of this Section 5, all Puerto Rico tax 

qualified defined benefit plans maintained by the Puerto Rico Employer shall be treated as 

one defined benefit plan. 

Section 6. DIRECT ROLLOVER PAYMENTS 

Notwithstanding any provision of the Plan to the contrary, only with respect to a Puerto Rico 

Participant, a Puerto Rico Participant may elect, at the time and in the manner prescribed by 

the Board of Trustees, to have all or part of a lump-sum distribution received from the Plan 

on account of separation from service or the termination of the Plan paid directly in a direct 

rollover to a “Puerto Rico Eligible Retirement Plan” (as defined below) that accepts the 

Puerto Rico Participant’s Eligible Rollover Distribution (as defined in Section 7.16(b)(2) of 

the Plan). For purposes of this Section 6, the term “Puerto Rico Eligible Retirement Plan” 

means a qualified trust described in Section 1081.01(a) of the 2011 PR Code and an 

individual retirement account or annuity described in Sections 1081.02(a) and (b) of the 

2011 PR Code, respectively, that accepts the Puerto Rico Participant’s Eligible Rollover 

Distribution. Notwithstanding the foregoing, in order for such Eligible Rollover Distribution 

not to be subject to both applicable US and Puerto Rico income tax withholdings and to 

defer taxation under both the Code and the 2011 PR Code, such Puerto Rico Participant’s 

benefit must be distributed in the form of a direct rollover distribution to a trust that is tax 

qualified under both Code Section 401(a) and 2011 PR Code Section 1081.01(a), at the 

time of the rollover distribution. 

Section 7. PUERTO RICO EMPLOYER CONTRIBUTIONS 

Only with respect to a Puerto Rico Participant, each contribution made by a Puerto Rico 

Employer to the Plan with respect to a Puerto Rico Participant is expressly conditioned on 

the deductibility of such contribution under the 2011 PR Code, for the taxable year for which 

it is contributed. If the Puerto Rico Department of the Treasury disallows the deduction, or if 

the contribution was made by a mistake of fact, to the extent permissible under ERISA and 

the Code, such contributions shall be returned to the Puerto Rico Employer within one (1) 

36.1.267
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 TM:538126 / 01096280 / 01/01/2015 Appendix N (Page 3 of 3)

year after the disallowance of the deduction (to the extent disallowed), or after the payment 

of the contribution, respectively. 

Section 8. PAYMENT OF CONTRIBUTIONS 

Contributions to the Plan by a Puerto Rico Employer with respect to the Puerto Rico 

Participants shall be paid to the Trustee not later than the due date for filing the Puerto Rico 

Employer’s Puerto Rico income tax return for the taxable year in which such payroll period 

falls, including any extension thereof. 

Section 9. HIGHLY COMPENSATED EMPLOYEES 

Solely for qualification purposes under the 2011 PR Code, a Highly Compensated Employee 

means, with respect to a Plan Year: 

(i) is an officer (as defined by applicable regulations) of a Puerto Rico Employer; or 

(ii) at any time during the calendar year ending with or within the Plan Year or the 

preceding calendar year ending with or within the Plan Year was a 5% owner of a 

Puerto Rico Employer; or 

(iii) for the preceding calendar year had Compensation in excess of the applicable dollar 

amount provided under Section 1081.01(d)(3)(E)(iii)(IV) of the 2011 PR Code. 

The term “Puerto Rico Highly Compensated Employee” also includes any former Employee 

of a Puerto Rico Employer eligible to participate in the Plan who separated from service (or 

has a deemed separation from service) prior to the Plan Year, performs no service for the 

Employer during the Plan Year, and was a Puerto Rico Highly Compensated Employee for 

the separation year.

Section 10. PLAN MERGER, CONSOLIDATION OR TRANSFER 

Any merger or consolidation of the Plan with, or transfer in whole or in part of the assets and 

liabilities of the Trust to, another trust as applied to a Puerto Rico Participant under the Plan 

will be limited to the extent such other plan and trust are qualified under Section 1081.01(a) 

of the 2011 PR Code. 

Section 11. GOVERNING LAW 

Only with respect to the Puerto Rico Participants and the Puerto Rico Employers, it is the 

intent that the Plan be administered, governed and construed according to the Code and 

ERISA unless this Appendix N applies. 

Section 12. USE OF TERMS 

Unless otherwise indicated and unless the context clearly indicates otherwise, terms defined 

in the Plan will also apply to terms used in this Appendix N. All terms and provisions of the 

Plan shall apply to this Appendix N, except that where the terms and provisions of the Plan 

and this Appendix N conflict, the terms and provisions of this Appendix N shall govern, 

unless contrary to the applicable provisions of the Code or ERISA. 

36.1.268
F:69376 / 11/16/11

TRUST AGREEMENT

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS

PENSION FUND

AS AMENDED THROUGH NOVEMBER 8, 2011

36.2.1
F:69376 / 11/16/11 -1-

REVISED AND AMENDED TRUST AGREEMENT FOR

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND

This AGREEMENT and DECLARATION of TRUST, made and entered into

this sixteenth day of March, 1955 by and between CENTRAL CONFERENCE

OF TEAMSTERS, SOUTHERN CONFERENCE OF TEAMSTERS, and their

affiliated Local Unions, hereinafter referred to collectively as

the "UNION", and the SOUTHERN MOTOR CARRIERS LABOR RELATIONS

ASSOCIATION; MOTOR CARRIERS EMPLOYERS CONFERENCE - CENTRAL STATES;

CARTAGE EMPLOYERS MANAGEMENT ASSOCIATION; CLEVELAND DRAYMEN

ASSOCIATION, INC.; and NORTHERN OHIO MOTOR TRUCK ASSOCIATION, INC.;

for and on behalf of themselves, their constituent members, and

such other Employers who are or may become parties hereto,

hereinafter collectively referred to as the "EMPLOYER", and the

individual Trustees, hereinafter referred to as the "TRUSTEES",

selected as hereinafter described, accepting the Trust obligations

herein declared:

W I T N E S S E T H:

WHEREAS, the Union and the Employer believe that it is in the

best interest of the Employees of such Employer represented by the

Union, and the families and dependents of such Employees, to

provide for retirement benefits and for that purpose to establish

a Trust Fund as hereinafter provided; and

WHEREAS, the Union and the Employer have heretofore entered

into collective bargaining agreements under the terms of which it

is provided that the Employer shall contribute certain agreed-upon

sums of money therein set forth to a Pension Fund, which shall be

known as the CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION

FUND; and

WHEREAS, Employee Trustees and Employer Trustees have been

designated as the Trustees of the Trust in accordance with the

provisions of such Agreement.

NOW THEREFORE, for and in consideration of the premises and of

the mutual covenants and agreements herein contained, the Union and

the Employer hereby accept and adopt all of the provisions herein

contained, and the Trustees declare that they will receive and hold

the contributions and any other money or property which may come

into their hands as Trustees (all such contributions, money and

property being hereinafter referred to as "the Trust Fund"), with

the powers and duties, uses, and purposes as hereinafter set forth,

to-wit:

36.2.2
F:69376 / 11/16/11 -2-

ARTICLE I

DEFINITION OF TERMS

Sec. 1. Employer - The term "Employer" as used herein shall

mean any employer who is bound by a collective bargaining agreement

with the Union, or any employer not presently a party to such

collective bargaining agreement who satisfies the requirements for

participation as established by the Trustees and agrees to be bound

by this Agreement.

Sec. 2. Union - The term "Union" as used herein shall mean

those Local Unions which the Board of Trustees determines to have

been the affiliated Local Unions of the Central Conference of

Teamsters and the Southern Conference of Teamsters when those two

conferences were dissolved in or around June, 1994, and such other

unions as the Trustees may agree upon, provided that all such

determinations by the Board of Trustees shall be binding upon all

participants and beneficiaries of the Fund and upon all other

entities having or claiming any interest in the Fund.

Sec. 3. Employee - The term "Employee" as used herein shall

include:

(a) A person who is employed under the terms and conditions

of a collective bargaining agreement entered into between

an Employer as herein defined and a Union as herein

defined, and on whose behalf payments are required by

such collective bargaining agreement or applicable law to

be made to the Fund by the Employer; or

(b) All persons employed by the Union, upon being proposed by

the Union and after acceptance by the Trustees; and as to

such Union personnel the Union shall be considered an

Employer solely for the purposes of contributions within

the meaning of this Agreement and Declaration of the

Trust and shall, on behalf of such personnel, make

payments to the Trust at the times and at the rate of

payment equal to that made by any other Employer who is

a party to the Trust for the same benefits; or

(c) All persons employed by the Central States, Southeast and

Southwest Areas Pension Fund or Central States, Southeast

and Southwest Areas Health and Welfare Fund upon

acceptance by the Trustees; and as to such Trust

personnel the Trustees shall be deemed an Employer,

solely for the purpose of contributions, within the

meaning of this Agreement and Declaration of Trust and

shall, on behalf of such personnel, make payments to the

Trust at the times and at the rate of payment equal to

that made by any other Employer who is a party to the

Trust for the same benefits.

(d) All persons who are Trustees of Central States, Southeast

and Southwest Areas Pension Fund or Central States,

36.2.3
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Southeast and Southwest Areas Health and Welfare Fund

upon acceptance by the Trustees, as hereinafter defined;

and on behalf of such persons who are Trustees, their

Employers shall make or be presently required to make

contributions to the Trust at the times and at the rate

of payment equal to that required by any other Employer

who is a party to the Trust for the same benefits.

(e) In all instances the common law test or the applicable

statutory definition of master-servant relationship shall

control employee status;

(f) The continuation of employee status once established

shall be subject to such reasonable rules as the Trustees

may adopt according to law.

Sec. 4. Trustees - The term "Trustees" or "Board" as used

herein shall mean the Trustees designated in this Agreement and

Declaration of Trust together with their successors designated and

appointed in accordance with the terms of this Agreement.

Sec. 5. Trust Fund or Fund - The term "Trust Fund" or "Fund"

as used herein shall refer to all property of whatever nature which

shall be in said Trust created by this Agreement.

Sec. 6. Employer Contributions - The term "Employer

Contributions" as used herein shall mean payments made by Employers

to the Trust Fund herein created.

ARTICLE II

CREATION OF TRUST FUND AND BOARD OF TRUSTEES

Sec. 1. Designation - The Union and the Employer hereby

create and establish, with the Trustees herein provided for, a

Trust to be known as the Central States, Southeast and Southwest

Areas Pension Fund which shall be comprised of assets derived from

Employer Contributions made pursuant to the collective bargaining

agreement between the parties (plus any additional sum or sums from

Employer Contributions which may hereafter be agreed upon by the

Employers and the Union set forth in written collective bargaining

agreements), together with all insurance and annuity contracts

(including dividends, refunds, or other sums payable to the

Trustees on account of such insurance and annuity contracts) and

all investments made and held by the Trustees on account of such

insurance and annuity contracts, all investments made and held by

the Trustees, all moneys received by the Trustees as contributions

or as income from investments made and held by the Trustees or

otherwise, and any other property received and held by the Trustees

for the uses, purposes, and trusts set forth in this Agreement and

Declaration of Trust, where any of the foregoing is derived from

the Employer Contributions.

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Sec. 2. Board of Trustees - There is hereby created a Board

of Trustees consisting of four persons representative of the

Employers and four persons representative of the Employees.

The appointment of each of the four Employer Trustees that was

made prior to September 16, 2009, and that is still in effect on

September 16, 2009, shall remain in effect until expiration of the

term of office of such Trustee, except in the event of vacancy or

removal during the term of office. In the event of a vacancy or

removal occurring during a term of office in effect on September

16, 2009, the nominating authority (if applicable) and appointing

authority for a Successor Trustee shall be vested in, and exercised

by, the nominating authority (if applicable) and appointing

authority that otherwise applies to such position upon the

expiration of such term of office.

Upon expiration of the term of office of an Employer Trustee

on March 31, 2010 (and on March 31 of every fifth year after each

such year), the authority and responsibility to appoint such

Employer Trustee to serve for a five-year term of office that will

commence on April 1, 2010 (and on April 1 of every fifth year after

such year) shall be vested in, and exercised by majority action by,

the other Employer Trustees then serving as Trustees, and the

Successor Trustees of those Employer Trustees.

Upon expiration of the term of office of an Employer Trustee

on March 31, 2011 (and on March 31 of every fifth year after each

such year), The Association of Food and Dairy Retailers,

Wholesalers and Manufacturers shall nominate an Employer Trustee to

serve for a five-year term of office that will commence on April 1,

2011 (and on April 1 of every fifth year after such year). The

power to approve said nominee for appointment shall be vested in,

and exercised through majority action by, the other Employer

Trustees then serving as Trustees, and the Successor Trustees of

those Employer Trustees.

Upon expiration of the term of office of an Employer Trustee

on March 31, 2012 (and on March 31 of every fifth year after each

such year), ABF Freight System, Inc. shall nominate an Employer

Trustee to serve for a five-year term of office that will commence

on April 1, 2012 (and on April 1 of every fifth year after such

year). The power to approve said nominee for appointment shall be

vested in, and exercised through majority action by, the other

Employer Trustees then serving as Trustees, and the Successor

Trustees of those Employer Trustees.

Upon expiration of the term of office of an Employer Trustee

on March 31, 2013 (and on March 31 of every fifth year after each

such year), the authority and responsibility to appoint such

Employer Trustee to serve for a five-year term of office that will

commence on April 1, 2013 (and on April 1 of every fifth year after

such year) shall be vested in, and exercised by majority action by,

the other Employer Trustees then serving as Trustees, and the

Successor Trustees of those Employer Trustees.

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The Employee Trustee shall be appointed, on behalf and as

representative of the Union, by the Central Trustee Appointment

Board and the Southern Trustee Appointment Board, each as

appointing authority, for terms of office hereinafter specified in

this Section 2 of Article II of this Agreement. 

In accordance with prior amendments of this Agreement, the

term of office of each Trustee is a five-year period, subject to

reappointment of the same Trustee or appointment of another Trustee

by the appointing entity for that Trustee position at the end of

such five-year period, and also subject to appointment of a

Successor Trustee pursuant to this Agreement in the event of a

vacancy during a five-year term of office.

Upon expiration of the term of office of an Employee Trustee

on March 31 of each of 2009, 2010 and 2012 (and on March 31 of

every fifth year after each such year), the Central Trustee

Appointment Board shall appoint an Employee Trustee to serve for a

five-year term of office that will commence, respectively, on

April 1 of 2009, 2010 and 2012 (and on April 1 of every fifth year

after each such year), which appointment will be made in accordance

with procedures established by the Board of Trustees. Upon

expiration of the term of office of an Employee Trustee on

March 31, 2011 (and on March 31 of every fifth year after 2011),

the Southern Trustee Appointment Board shall appoint an Employee

Trustee to serve for a five-year term of office that will commence

on April 1, 2011 (and on April 1 of every fifth year after 2011),

which appointment will be made in accordance with procedures

established by the Board of Trustees. The authority and

responsibility of the Central Trustee Appointment Board and the

Southern Trustee Appointment Board, including procedures for

appointment of the members of each such board and procedures for

each such board’s appointment of Employee Trustees, shall be

established by the Board of Trustees (with appropriate

abstentions), which shall be solely authorized and responsible to

determine with finality whether or not any individual has been duly

appointed as a member of the Central Trustee Appointment Board or

the Southern Trustee Appointment Board in accordance with such

procedures, to determine with finality whether or not any Employee

Trustee has been duly designated and appointed in accordance with

such procedures and to determine with finality the binding

interpretation and/or resolution of all questions, objections,

challenges and disputes that relate to application of such

procedures.

Sec. 3. Term of Trustees - Each Trustee shall serve until

expiration of his term of office established in accordance with

Section 2 of Article II of this Agreement or until, on a date prior

to expiration of his term of office, he shall die, become incapable

of acting hereunder, resign, become disqualified for the position

under applicable law or under Section 9 of Article XIV of this

Agreement, or be removed as herein provided.

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Sec. 4. Manner of Acting in Event of Deadlock - In the event

a deadlock develops between the Employer and Employee Trustees, or

between the Trustees, the Trustees shall appoint a neutral party

empowered to break such deadlock within a reasonable length of

time. Such neutral party may be appointed in advance of any such

deadlock. In the event the Trustees are unable to agree upon a

neutral party, or in the event such neutral party is unable to act,

either the Employer or the Employee Trustees may petition the

District Court of the United States for the Northern District of

Illinois, Eastern Division, for appointment of a neutral person, as

provided in Section 302(c) of the Labor Management Relations Act of

1947, as amended.

Sec. 5. Vacancy in Board of Trustees - In case of vacancies

by death, legal incapacity, resignation or otherwise of the

Employer Trustees or Employee Trustees, a successor thereto shall

be appointed as provided in Article II, Section 2 hereof. Any

Trustee or Trustees shall have the right to resign on written

notice to the remaining Trustees, and to the Executive Director;

said notice shall specify the effective date of such resignation,

which shall be no later than fifteen (15) days after said notice is

received by the Executive Director, except that said resignation

shall in any event become effective no later than appointment of,

and acceptance of appointment by, a Successor Trustee, in

accordance with Article II, Section 7 of this Agreement.

Sec. 6. Removal of Trustees - Any Employer Trustee may be

removed, with cause, at any time by the entity or group that has

the authority under Article II, Section 2 hereof to appoint such

Employer Trustee, and, in the event of such removal of any Employer

Trustee, the entity or group removing such Trustee shall appoint a

Successor Trustee. Any Employee Trustee may be removed, with

cause, at any time by the board (either the Central Trustee

Appointment Board or the Southern Trustee Appointment Board) which,

in accordance with Section 2 of Article II of this Agreement, is

the appointing authority upon any vacancy in, or term expiration

of, the Employee Trustee position then held by the Employee Trustee

being removed. The Trustees shall also have the authority and duty

to act to remove a Trustee holding office in violation of law.

Sec. 7. Designation of Successor Trustee - In the event of a

vacancy under either Section 5 or Section 6 above, the Successor

Trustee shall be designated in writing by the appointing authority,

and such Successor Trustee shall accept such appointment in writing

in a form satisfactory to the Trustees. The term of office of any

Successor Trustee appointed during an unexpired term of his

predecessor Trustee shall be the remainder of that unexpired term.

Both the designation and acceptance shall be filed with the

Executive Director of the Fund.

Sec. 8. Limitation of Liability of Trustees - No Trustee

shall be liable or responsible for any acts or defaults of any coTrustee, any other fiduciary, any party-in-interest or any other

person except in accordance with applicable law.

36.2.7
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Sec. 9. Office of the Fund - The sole and principal office of

the Fund shall be in Rosemont, Illinois, for the transaction of

business of the Fund, the exact location of which is to be made

known to the parties interested in such Fund. At such office, and

at such other places as may be required by law, there shall be

maintained all, or any of, the books and records pertaining to the

Fund and its administration.

Sec. 10. No One is Agent Without Written Authority - No

individual or person may act as agent for the Fund unless

specifically authorized in writing by the Trustees. No Employer or

Union nor any representative of any Employer or Union, in such

capacity, is authorized to interpret the Pension Plan, nor can any

such person act as agent of the Trustees. Only the Board of

Trustees is authorized to interpret the Pension Plan within the

scope of its authority.

ARTICLE III

CONTRIBUTIONS AND COLLECTIONS

Sec. 1. Amount of Contributions - Each Employer shall remit

continuing and prompt contributions to the Trust Fund as required

by the applicable collective bargaining agreement to which the

Employer is a party, applicable law and all rules and requirements

for participation by Employers in the Fund as established and

interpreted by the Trustees in accordance with their authority.

The Trustees are authorized to reject any collective bargaining

agreement, participation agreement and/or terminate the

participation of an Employer (and all contributions from the

Employer) whenever they determine either that the agreement is

unlawful and/or inconsistent with any rule or requirement for

participation by Employers in the Fund and/or that the Employer is

engaged in one or more practices or arrangements that threaten to

cause economic harm to, and/or impairment of the actuarial

soundness of, the Fund (including but not limited to any

arrangement in which the Employer is obligated to make

contributions to the Trust Fund on behalf of some but not all of

the Employer's bargaining unit employees, and any arrangement in

which the Employer is obligated to make contributions to the Trust

Fund at different contribution rates for different groups of the

Employer's bargaining unit employees). Any such rejection and/or

termination by the Trustees of a collective bargaining agreement

shall be effective as of the date determined by the Trustees (which

effective date may be retroactive to the initial date of the term

of the rejected agreement) and shall result in the termination of

the Employer and all Employees of the Employer from further

participation in the Fund on and after such effective date. Upon

execution of each new or successive collective bargaining

agreement, including but not limited to interim agreements and

memoranda of understanding between the parties, each Employer shall

promptly submit such contract by certified mail to the:

36.2.8
F:69376 / 11/16/11 -8-

Contracts Department

Central States, Southeast and

 Southwest Areas Pension Fund

9377 West Higgins Road

Rosemont, Illinois 60018-4938.

Any agreement or understanding between the parties that in any way

alters or affects the Employer's contribution obligation as set

forth in the collective bargaining agreement shall be submitted

promptly to the Fund in the same manner as the collective

bargaining agreement; any such agreement or understanding between

the parties that has not been disclosed to the Fund as required by

this paragraph shall not be binding on the Trustees and shall not

affect the terms of the collective bargaining agreement which alone

shall be enforceable. Except as provided in this Section, Section

7(b) of Article III and Section 20 of Article IV, the obligation to

make such contributions shall continue (and cannot be retroactively

reduced or eliminated) after termination of the collective

bargaining agreement until the date the Fund receives a) a signed

contract that eliminates or reduces the duty to contribute to the

Fund or b) written notification that the Employer has lawfully

implemented a proposal to withdraw from the Fund or reduce its

contributions at the above-specified address. The obligation to

make such contributions shall continue during periods when the

collective bargaining agreement is being negotiated, but such

contributions shall not be required in case of strike after

contract termination, unless the parties mutually agree otherwise.

Sec. 2. Time of Payment - The Trustees shall, by regulation,

fix the time for payment of contributions and shall send a copy of

such regulations to each Employer required to contribute.

Sec. 3. Receipt of Payment and Other Property of Trust - The

Trustees are hereby designated as the persons to receive the

payments heretofore or hereafter made by the Employers to the Trust

Fund, and the Trustees are hereby vested with all right, title and

interest in and to such moneys and all interest accrued thereon,

and are authorized to receive and be paid the same. The Trustees

agree to receive all such payments, deposits, moneys, insurance and

annuity contracts, and other assets and properties described or

referred to in Article II and this Article, and to hold same in

Trust hereunder for the uses and purposes of the Trust herein

created.

Sec. 4. Collections and Enforcement of Payment - The

Trustees, or such committee of the Trustees as the Board of

Trustees shall appoint, or the Executive Director when directed by

such committee or by the Trustees, shall have the power to demand

and collect the contributions of the Employers to the Fund. Said

Board of Trustees shall take such steps, including the institution

and prosecution of, and intervention in, any legal proceedings as

the Trustees in their discretion deem in the best interest of the

Fund to effectuate the collection or preservation of contributions

or other amounts which may be owed to the Trust Fund, without

36.2.9
F:69376 / 11/16/11 -9-

prejudice, however, to the rights of the Union to take whatever

steps which may be deemed necessary for such purpose. The Trustees

are authorized to receive all Employer Contributions and apply such

contributions in the best interest of the Fund. Nothing herein

shall give any Employer the right to designate how any

contributions shall be applied.

Sec. 5. Production of Records - Each Employer shall promptly

furnish to the Trustees, upon reasonable demand, the names and

current addresses of its Employees, their Social Security numbers,

the hours worked by each Employee and past industry employment

history in its files and such other information as the Trustees may

reasonably require in connection with the administration of the

Trust. The Trustees may, by their representatives, examine the

pertinent records of each Employer at the Employer's place of

business whenever such examination is deemed necessary or advisable

by the Trustees in connection with the proper administration of the

Trust. All Employers shall annually furnish to the Trustees, if

requested by them, a statement showing whether:

(a) the organization is a corporation and the names of all of

its officers;

(b) if not a corporation, a certificate stating that it is

either a partnership or an individual proprietorship and

the names of the partners or the name of the individual

proprietor.

The Union will comply with any reasonable request of the

Trustees to examine those records of the Union which may indicate

the employment record of any Employee whose status is in dispute.

Sec. 6. Whenever the Trustees exercise their authority to

reject a collective bargaining agreement, participation agreement

and/or terminate the participation of an Employer and effect the

termination of the Employer and all Employees of the Employer from

further participation in the Fund on and after an effective date

determined by the Trustees, and there is related litigation to

which the Trustees (or any of the Trustees) and/or the Fund and the

Employer are parties (regardless of which entity or entities

commenced the litigation), the Trustees and the Fund, at the

conclusion of the litigation by judgment or settlement (except by

a judgment that in effect invalidates the Trustees' rejection of

the collective bargaining agreement, participation agreement and/or

termination of participation), shall be entitled to recover from

the Employer a payment in the amount of the attorneys' fees and

litigation costs incurred by the Trustees and/or the Fund in the

course of the litigation. In addition, the Employer shall be

liable for any attorneys’ fees and costs in any litigation or

arbitration filed by the Fund or filed by or initiated by the

Employer (including declaratory judgment actions) in which the Fund

prevails, including but not limited to suits or arbitrations

relating to withdrawal liability, delinquent contribution payments

or contribution refunds, audit demands and any retaliation claims

36.2.10
F:69376 / 11/16/11 -10-

(including retaliation claims under §510 of ERISA). The duty

imposed upon an Employer to pay fees and costs applies to a

declaratory judgment action as well as a suit brought by an

Employer that is dismissed for any reason with or without prejudice

including cases dismissed for improper venue or lack of subject

matter or personal jurisdiction.

Sec. 7.

(a) An Employer is obliged to contribute to the Fund for the

entire term of any collective bargaining agreement

accepted by the Fund on the terms stated in that

collective bargaining agreement, except as provided in

subpart (b) of this Section 7 and Section 20 of Article

IV of this Agreement.

(b) An Employer’s obligation to contribute to the Fund will

immediately cease in the event the Union loses its status

as bargaining representative of the employee through an

NLRB election or valid disclaimer of interest by the

Union. In the event the Union loses its representative

status through an NLRB election, the duty to contribute

shall cease on the day the election results are certified

by the NLRB. This provision shall supersede any contrary

provision in any agreement, including any collective

bargaining agreement, participation agreement, this

Agreement and the certification clause of the Fund’s

billing forms.

Sec. 8. The remedy of the termination of an Employer’s

participation set forth in Article III, Section 1 and Article IV,

Section 20 is not the Fund’s exclusive remedy in the event of a

violation of the Fund’s adverse selection rule. The Fund shall

also be entitled to collect additional contributions from an

Employer that violates the Fund’s adverse selection rule in an

amount equal to the contributions that would have been paid to the

Fund but for the adverse selection rule violation. The

contributions paid under this section shall be treated as

contributions required to be made for the purposes of computing

withdrawal liability under 29 U.S.C. §§ 1381-1451 and contribution

base units on any contributions paid under this section shall be

calculated by dividing the amount paid under this section by the

applicable contribution rate.

ARTICLE IV

POWERS AND DUTIES OF TRUSTEES

Sec. 1. The Trustees shall have authority to control and

manage the operation and administration of the Trust in accordance

with applicable law.

Sec. 2. The Trustees shall hold, manage, care for, and

protect the Trust Fund and collect the income therefrom and

contributions thereto, except to the extent that any of these

36.2.11
F:69376 / 11/16/11 -11-

functions or responsibilities are assigned to another entity or

entities pursuant to any provision of this Article.

Sec. 3.

(a) The Trustees appoint Northern Trust Global Advisors, Inc.

(hereinafter identified as “Northern Trust”) as a Named

Fiduciary of the Fund as defined in Section 402 of the

Employee Retirement Income Security Act of 1974, with

such rights, powers, authority, duties and

responsibilities as are stated in an agreement with such

Named Fiduciary (hereinafter identified as a “Named

Fiduciary Agreement”), an agreement which was entered by

the Trustees with Northern Trust as of April 1, 2005, and

as are stated in a Consent Decree (hereinafter identified

as “the Consent Decree”) entered September 22, 1982, as

that agreement and the Consent Decree were heretofore and

are hereafter amended. The appointment of Northern Trust

as a Named Fiduciary of the Fund shall remain effective

until termination or resignation in accordance with the

Named Fiduciary Agreement to which Northern Trust is a

party.

(b) Assets of the Fund, in addition to those assets for which

Northern Trust is responsible as a Named Fiduciary of the

Fund, shall include assets allocated to and managed in

the Passive Fixed-Income Index Account (“Passive FixedIncome Index Account”) established and maintained in

accordance with Section II.E. of the Consent Decree as

amended effective June 1, 2003, in the Passive Equity

Index Account (“Passive Equity Index Account”)

established and maintained in accordance with Section

II.F. of the Consent Decree as amended effective

November 20, 2007 and in the Passive EAFE Index Account

established and maintained in accordance with Section

II.G. of the Consent Decree, as amended effective June

25, 2010 (collectively the “Index Accounts”). All assets

of the Fund in the Index Accounts shall be managed by one

or more investment managers, as defined in Section 3(38)

of the Employee Retirement Income Security Act of 1974,

each such investment manager to be appointed by the

Trustees upon court approval of the appointment.

(c) Each investment manager appointed by Northern Trust in

its capacity as a Named Fiduciary of the Fund, and each

investment manager for the Index Accounts appointed by

the Trustees upon court approval of the appointment,

shall have the power and authority, in its sole

discretion, to invest and reinvest the principal and

income of the Trust Fund, delegated to it for management,

in such securities, common and preferred stock,

mortgages, notes, real estate or other property as shall

be permissible investments in accordance with applicable

law and agreements, including the specific terms and

36.2.12
F:69376 / 11/16/11 -12-

conditions of its agreement as an investment manager of

the Fund, and may sell or otherwise dispose of such

securities or property at any time and from time to time

as it determines to be in accordance with its fiduciary

obligations.

(d) With respect to all assets of the Fund, except those

assets which are then subject to the exercise by Northern

Trust of its rights, powers, authority, duties and

responsibilities as a Named Fiduciary of the Fund, and

except those assets which are then managed in the Index

Accounts, the Trustees shall have the power, in their

sole discretion, to invest and reinvest all or any part

of the Trust Fund in such securities and other property

as shall be permissible investments by them in accordance

with applicable law, and may sell or otherwise dispose of

such securities or other property at any time and from

time to time as they determine to be in accordance with

their fiduciary obligations.

(e) The overall investment policy objective of the Fund is to

invest and manage the assets of the Trust Fund in a

prudent and conservative yet productive manner, in order

to enhance the ability of the Fund to meet its

obligations to participants and beneficiaries. Subject

to the overall investment policy objective of the Fund,

Northern Trust shall develop the short-term and long-term

investment objectives and policies of the Fund for the

assets of the Fund for which it is responsible, in

accordance with the Consent Decree, after consultation

with the Trustees and with appropriate regard for the

actuarial requirements of the Fund. The investment

policy statement for the Index Accounts will be

established by the Trustees upon approval by the court.

(f) Northern Trust shall have the power and authority, in its

sole discretion, to invest and reinvest all or any part

of the assets of the Trust Fund for which it is

responsible in the following group trust, selected and

designated by it and maintained as a domestic trust in

the United States: Barclays Global Investors, N.A.

Investment Funds for Employee Benefit Trusts, which is

maintained by Barclays Global Investors, N.A. To the

extent Northern Trust invests any part of the Trust Fund

in that group trust, the group trust is and will be

adopted as part of the Fund and the trust instrument of

such group trust and any amendments of that instrument

are and will be incorporated in this Agreement, provided

that such trust is and continues to be a tax-exempt

organization under Section 501(a) of the Internal Revenue

Code.

Sec. 4. With respect to all assets of the Fund, except those

assets which are then subject to the exercise by Northern Trust of

36.2.13
F:69376 / 11/16/11 -13-

its rights, powers, authority, duties and responsibilities as a

Named Fiduciary of the Fund, and except those assets which are then

managed in the Index Accounts, any part of the Trust Fund which is

not invested shall be deposited by the Trustees in such depository

or depositories as the Trustees shall from time to time select and

any such deposit or deposits, or disbursements therefrom, shall be

made in the name of the Trust in the manner designated by the

Trustees and upon the signature(s) designated by the Trustees.

Sec. 5. The Trustees shall keep true and accurate books of

account and a record of all their transactions.

Sec. 6. The Trustees shall engage one or more independent

qualified public accountants and enrolled actuaries to perform all

services required by and in accordance with applicable law and such

other services as the Trustees deem necessary.

Sec. 7. The Trustees, to the extent permitted by applicable

law, shall incur no liability in acting upon any instrument,

application, notice, request, signed letter, telegram, or other

paper or document believed by them to be genuine and to contain a

true statement of facts, and to be signed by the proper person.

Sec. 8. Any Trustee, to the extent permitted by applicable

law, may rely upon any instrument in writing purporting to have

been signed by a majority of the Trustees as conclusive evidence of

the fact that a majority of the Trustees have taken the action

stated to have been taken in such instrument.

Sec. 9. The Trustees are hereby authorized to formulate and

promulgate any and all necessary rules and regulations which they

deem necessary or desirable to facilitate the proper administration

of the Trust, provided the same are not inconsistent with the terms

of the Agreement, and the Articles in the Central States, Southeast

and Southwest Areas Agreements creating the Pension Fund. All

rules and regulations adopted by action of the Trustees for the

administration of the Trust Fund shall be binding upon all parties

hereto, all parties dealing with the Trust, and all persons

claiming any benefits hereunder. The Trustees are vested with

discretionary and final authority in adopting rules and regulations

for the administration of the Trust Fund.

Sec. 10. Any Successor Trustee appointed in accordance with

the provisions of this Agreement, upon accepting in writing the

terms of this Trust, in a form satisfactory to the Trustees, shall

be vested with all of the rights, powers and duties of his

predecessor.

36.2.14
F:69376 / 11/16/11 -14-

Sec. 11.

(a) The Trustees may assign, from time to time, various

administrative matters to such committees and

subcommittees of Trustees, or to such other individuals

or organizations, as they may deem necessary or

appropriate in their sole discretion. The Trustees may

also assign and delegate, from time to time, specified

trustee responsibilities to committees and subcommittees

of Trustees, as they deem necessary or appropriate in

their sole discretion. Committees and subcommittees of

Trustees shall consist of an equal number of Employer and

Employee Trustees.

(b) The Trustees may establish a Public Advisory Board

consisting of four (4) persons, two (2) to be designated

by a majority of the Employer Trustees and two (2) to be

designated by a majority of the Employee Trustees. Such

Public Advisory Board, if established, shall act solely

in an advisory and consultant capacity and shall not have

or exercise any fiduciary powers, responsibilities or

duties. None of the members of said Board, individually

or collectively, shall have or exercise any discretionary

authority or discretionary control respecting management

of the Fund, or have or exercise any authority or control

respecting management or disposition of any assets of the

Fund, or render any investment advice for any fee or

other consideration, or have or exercise any

discretionary authority or discretionary responsibility

in the administration of the Fund. The Trustees shall

establish procedures for submission of matters to the

Public Advisory Board, if established, for advice and

consultation by said Board. Any payment of compensation

and expenses for members of said Board shall be

determined by the Trustees.

(c) The Trustees shall appoint an Executive Director, who

shall, subject to the directions of the Trustees with

respect thereto, be responsible to the Trustees and/or

any committee thereof for coordinating the administration

of the Fund's assets, office and personnel, for the

coordination and administration of accounting and

actuarial services, for the preparation of all reports

and other documents required to be filed or issued in

accordance with law, for the performance of ministerial

duties in conformance therewith, and for such other

duties duly assigned to him by action of the Trustees.

The Executive Director shall be the custodian of the

documents and other records of the Fund. To the extent

this subsection is contrary to or inconsistent with a

Named Fiduciary Agreement, in its description of

authority and responsibilities of the Executive Director,

this subsection shall be inapplicable.

36.2.15
F:69376 / 11/16/11 -15-

(d) There shall exist an internal audit division of the Fund,

for review of administrative expenditures, benefit

disbursements and the allocation of income between

investments, administration and benefits, and for such

other responsibilities as may be assigned by the

Executive Director.

Sec. 12. No party dealing with the Trustees shall be

obligated:

(a) to see the application to the trust purposes, herein

stated, of any money or property belonging to the Trust

Fund, or

(b) to see that the terms of this Agreement have been

complied with, or

(c) to inquire into the necessity or expediency of any act of

the Trustees.

Every instrument executed by the Trustees shall be

conclusive evidence in favor of every person relying

thereon:

(1) that at the time of the delivery of said instrument

the Trust was in full force and effect,

(2) that the instrument was executed in accordance

with the terms and conditions of this Agreement,

and

(3) that the Trustees were duly authorized and

empowered to execute the instrument.

Sec. 13. The Trustees shall, by regulation, establish rules

relating to payments of contributions by Employers for Employees

during periods of such Employees' illness or disability and related

matters but not contrary to applicable collective bargaining

agreements.

Sec. 14. The Trustees are hereby empowered, in addition to

such other powers as are set forth herein or conferred by law:

(a) To enter into any and all contracts and agreements for

carrying out the terms of this Agreement and Declaration

of Trust and for the administration of the Trust Fund,

and to do all acts as they, in their discretion, may deem

necessary or advisable, and such contracts and agreements

and acts shall be binding and conclusive on the parties

hereto and on the Employees involved.

(b) To keep property and securities registered in the names

of the Trustees or in the name of any other individual or

entity duly designated by the Trustees.

36.2.16
F:69376 / 11/16/11 -16-

(c) To establish and accumulate as part of the Trust Fund a

reserve or reserves, adequate, in the opinion of the

Trustees and in accordance with applicable law, to carry

out the purposes of such Trust.

(d) To pay out of the funds of the Trust all real and

personal property taxes, income taxes, and other taxes of

any and all kinds levied or assessed under existing or

future laws upon or in respect to the Trust Fund, or any

money, property, or securities forming a part thereof.

(e) To do all acts, whether or not expressly authorized

herein, which the Trustees may deem necessary or proper

for the protection of the property held hereunder.

(f) To sell, exchange, lease, convey, mortgage or dispose of

any property, whether real or personal, at any time

forming a part of the Trust Fund upon such terms as they

may deem proper, and to execute and deliver any and all

instruments of conveyance, lease, mortgage and transfer

in connection therewith, except that the powers

enumerated in this subsection shall not be exercisable by

the Trustees with respect to those assets of the Fund as

are then subject to the exercise by Northern Trust of its

rights, powers, authority, duties and responsibilities as

a Named Fiduciary of the Fund, or those assets which are

then managed in the Index Accounts.

Sec. 15. The Trustees shall be entitled to receive reasonable

compensation for services rendered, and the reimbursement of

expenses properly and actually incurred, in the performance of

their duties to the Fund; except that no Trustee who already

receives full-time pay from an Employer or an association of

Employers or from the Union shall receive compensation from the

Fund, except for reimbursement of expenses properly and actually

incurred.

Sec. 16. The Trustees shall use and apply the Trust Fund for

the following purposes:

(a) To pay or provide for -

(1) the payment of all reasonable and necessary

expenses of collecting the contributions and

administering the affairs of this Trust, including

the employment of such administrative, legal,

actuarial, expert, and clerical assistance as may

be reasonably necessary,

(2) the purchasing, owning or leasing of such premises

as may be necessary for the operation of the

affairs of the Trust, and

36.2.17
F:69376 / 11/16/11 -17-

(3) the purchase or leasing of such materials,

supplies and equipment as the Trustees, in their

discretion, find necessary or appropriate to the

performance of their duties.

(b) To pay or provide for the payment of retirement and

related benefits to eligible Employees in accordance with

the terms, provisions and conditions of the Pension Plan

to be formulated and agreed upon hereunder by the

Trustees.

Sec. 17. The Trustees, by majority action, shall have the

power to construe the provisions of this Agreement and the terms

and regulations of the Pension Plan; and any construction adopted

by the Trustees in good faith shall be binding upon the Union,

Employees and Employers. The Trustees are vested with

discretionary and final authority in construing plan documents of

the Pension Fund.

Sec. 18. The Trustees, by resolution, shall provide for

fidelity bonds, in such amounts as they may determine, for their

employees and for the Trustees, the cost of which shall be paid by

the Fund. The Trustees may purchase insurance coverage to protect

the Fund from liability arising out of any error or omission of any

Trustee or employee of the Trust, in accordance with applicable

law, the cost of which policy shall be paid by the Fund.

Sec. 19. The Trustees shall provide participants and

beneficiaries such information as is required by law.

Sec. 20. The Trustees are authorized to reject any collective

bargaining agreement, participation agreement and/or terminate the

participation of an Employer (and all contributions from the

Employer) whenever they determine either that the agreement is

unlawful and/or inconsistent with any rule or requirement for

participation by Employers in the Fund and/or that the Employer is

engaged in one or more practices or arrangements that threaten to

cause economic harm to, and/or impairment of the actuarial

soundness of, the Fund (including but not limited to any

arrangement in which the Employer is obligated to make

contributions to the Trust Fund on behalf of some but not all of

the Employer's bargaining unit employees, and any arrangement in

which the Employer is obligated to make contributions to the Trust

Fund at different contribution rates for different groups of the

Employer's bargaining unit employees). Any such rejection and/or

termination by the Trustees of a collective bargaining agreement

shall be effective as of the date determined by the Trustees (which

effective date may be retroactive to the initial date of the term

of the rejected agreement) and shall result in the termination of

the Employer and all Employees of the Employer from further

participation in the Fund on and after such effective date.

36.2.18
F:69376 / 11/16/11 -18-

ARTICLE V

CONTROVERSIES AND DISPUTES

Sec. 1. In any controversy, claim, demand, suit at law, or

other proceeding between any participant, beneficiary, or any other

person and the Trustees, the Trustees shall be entitled to rely

upon any facts appearing in the records of the Trustees, any

instruments on file with the Trustees, with the Union or with the

Employers, any facts certified to the Trustees by the Union or the

Employers, any facts which are of public record, and any other

evidence pertinent to the issue involved.

Sec. 2. All questions or controversies, of whatsoever

character, arising in any manner or between any parties or persons

in connection with the Fund or the operation thereof, whether as to

any claim for any benefits preferred by any participant,

beneficiary, or any other person, or whether as to the construction

of the language or meaning of the rules and regulations adopted by

the Trustees or of this instrument, or as to any writing, decision,

instrument or accounts in connection with the operation of the

Trust Fund or otherwise, shall be submitted to the Trustees, or to

a committee of Trustees, and the decision of the Trustees or of

such committee thereof shall be binding upon all parties or persons

dealing with the Fund or claiming any benefit thereunder. The

Trustees are vested with discretionary and final authority in

making all such decisions, including Trustee decisions upon claims

for benefits by participants and beneficiaries of the Pension Fund

and other claimants, and including Trustee decisions construing

plan documents of the Pension Fund. To the extent this section is

contrary to or inconsistent with a Named Fiduciary Agreement, this

section shall be inapplicable.

Sec. 3. The Trustees may, in their sole discretion,

compromise or settle any claim or controversy in such manner as

they think best, and any decision made by the Trustees in

compromise or settlement of a claim or controversy, or any

compromise or settlement agreement entered into by the Trustees,

shall be conclusive and binding on all parties interested in this

Trust. To the extent this section is contrary to or inconsistent

with a Named Fiduciary Agreement, this section shall be

inapplicable.

ARTICLE VI

OPERATION OF BOARD OF TRUSTEES

Sec. 1. Officers - The Board of Trustees shall at each

meeting designate a presiding Chairman. The Chairmanship shall be

rotated between the Employee Trustees and the Employer Trustees.

Sec. 2. Quorum - A quorum of the Trustees for the transaction

of business, except as otherwise specifically provided herein,

shall consist of at least four Trustees, two of whom shall be

representative of the Employers and two of whom shall be

36.2.19
F:69376 / 11/16/11 -19-

representative of the Employees. A quorum of a committee shall

consist of a majority of the members thereof. Upon each matter

voted upon at any meeting of the Trustees, the Employee Trustees

and the Employer Trustees shall each have the same number of votes

based upon the larger number of Employee or Employer Trustees in

attendance, as the case may be; provided, however, that the vote or

votes cast by each such Trustee shall be cast as an individual

Trustee and not as a part of a block. All actions of the Trustees

at meetings shall be by majority vote of those present and voting,

a quorum being present. No Trustee may vote by proxy.

Sec. 3. Records of Trustee Action - The Trustees shall make

and maintain a record of the actions of the Trustees taken at any

meeting thereof. Any action, which may be taken at a meeting of

the Trustees, may be taken without a meeting of the Trustees if a

consent in writing, setting forth the action so taken, should be

distributed to all of the Trustees and should be signed by five of

the Trustees, said written consent evidencing the substance of the

action of the Trustees so taken.

Sec. 4. Reports - All reports required by law to be signed by

one or more Trustees shall be signed by all of the Trustees,

provided that all of the Trustees may appoint in writing one or

more of their number to sign such report on behalf of the Trustees.

Sec. 5. Power to Act in Case of Vacancy - No vacancy or

vacancies in the Board of Trustees shall impair the power of the

remaining Trustees, acting in the manner provided by this

Agreement, to administer the affairs of the Trust notwithstanding

the existence of such vacancy or vacancies.

Sec. 6. Expenses - All proper and necessary expenses incurred

by any former or incumbent Trustee, including costs of defense in

litigation arising out of the Trusteeship of this Fund, and also

including costs incurred by any former or incumbent Trustee in

providing testimony or information about administration of this

Fund in any investigation, trial or other proceeding, shall be paid

out of the Trust Fund, as a matter of right of any such former or

incumbent Trustee, to the extent permitted by applicable law. As

used in the preceding sentence, the term "costs" includes, but is

not limited to, reasonable attorneys' fees.

Sec. 7. Meetings - Regular meetings of the Board of Trustees

shall be held in the months of January, March, May, July, September

and November on such days as the Trustees determine. Any two (2)

Trustees may request a meeting of the Trustees at any time by

notifying the Executive Director, who shall arrange the time and

place thereof. Written notices of meetings may be delivered in

person, by mail, or by telegram. Meetings of the Trustees may also

be held at any time without notice if all the Trustees consent

thereto.

36.2.20
F:69376 / 11/16/11 -20-

ARTICLE VII

ESTABLISHMENT OF PENSION PLAN

Sec. 1. Formulation of Plan - The Trustees shall formulate a

Pension Plan for the payment of such retirement pension benefits,

permanent disability pension benefits, death benefits, and related

benefits, as are feasible. Such Pension Plan shall at all times

comply with all applicable federal statutes and regulations and

with the provisions of this Trust Agreement. The Trustees shall

not be under any obligation to pay any pension if the payment of

such pension will result in loss of the Fund's tax-exempt status

under the then applicable Internal Revenue Code and any regulations

or rulings issued pursuant thereto. The Trustees shall draft

procedures, regulations, and conditions for the operation of the

Pension Plan, including, by way of illustration and not limitation:

conditions of eligibility for covered Employees, procedures for

claiming benefits, schedules of type and amount of benefits to be

paid, and procedures for the distribution of benefits. The

Trustees may also provide for the payment of partial pensions, and

may enter into agreements with trustees of other pension plans

which conform to the applicable sections of the then applicable

Internal Revenue Code for purposes of tax deductions, for the

reciprocal recognition of service credits and payments of pension

benefits based upon such service credits.

Sec. 2. Amendment of Plan - The Pension Plan may be amended

by the Trustees from time to time, provided that such amendments

comply with the applicable sections of the then applicable Internal

Revenue Code, all applicable federal statutes and regulations, the

contract articles creating the Pension Fund, and the purposes set

forth in this Agreement. Additionally and not by way of

limitation, the Trustees may amend the Pension Plan, in future, or

retroactively, where they deem it necessary to maintain the

continuation of the Fund's tax-exempt status or to preserve

compliance with the then applicable Internal Revenue Code,

applicable federal statutes, and any regulations or rulings issued

with respect thereto. A copy of each amendment of the Pension Plan

shall be adopted and filed by the Trustees as part of the records

and minutes of the Trustees, and one copy thereof shall be

distributed to the Union and to each Employer or Employer group

signatory to this Trust Agreement.

ARTICLE VIII

SPENDTHRIFT CLAUSE

All benefit payments to participants or beneficiaries, if and

when such payments shall become due, shall, except as to persons

under legal disability, or as provided in this section and in

Article IX, be paid to such participants or beneficiaries in person

and shall not be grantable, transferable, or otherwise assignable

in anticipation of payment thereof, in whole or in part, by the

voluntary or involuntary acts of any such participants or

beneficiaries, or by operation of law, and shall not be liable or

36.2.21
F:69376 / 11/16/11 -21-

taken for any obligation of such participants or beneficiaries.

Upon receipt of written direction from any eligible recipient of

monthly benefit payments, the Pension Fund will participate in an

arrangement to make deductions from each monthly benefit payment,

as authorized and directed by the recipient, and to transfer the

amount of each such deduction to the Central States, Southeast and

Southwest Areas Health and Welfare Fund as the recipient's monthly

contribution to retain eligibility for coverage pursuant to the

retiree benefit plan established by that fund. This deductiontransfer arrangement is effective commencing October 1, 1988 and

will continue, relative to each such recipient who authorizes and

directs it, until the Pension Fund receives the recipient's written

cancellation of such authority and direction (or the earlier

termination of benefits). Any authority and direction to the

Pension Fund by a recipient of monthly benefit payments, to make

such deductions and transfers, is revocable at any time by the

recipient.

ARTICLE IX

PAYMENTS TO PERSONS UNDER LEGAL DISABILITY

In case any benefit payments hereunder become payable to a

person under legal disability, or to a person not adjudicated

incompetent but, by reason of mental or physical disability, in the

opinion of the Trustees, is unable to administer properly such

payments, then such payments may be paid out by the Trustees for

the benefit of such person in such of the following ways as they

think best, and the Trustees shall have no duty or obligation to

see that the payments are used or applied for the purpose or

purposes for which paid:

(a) directly to any such person;

(b) to the legally appointed guardian or conservator of such

person;

(c) to any spouse, parent, brother, or sister of such person

for his welfare, support and maintenance;

(d) by the Trustees using such payments directly for the

support, maintenance and welfare of any such person.

ARTICLE X

AMENDMENT OF AGREEMENT

It is anticipated that in the administration of this Trust

conditions may arise that are not foreseen at the time of the

execution of this Agreement, and it is the intention of the parties

that the power of amendment, which is hereinafter given, be

exercised in order to carry out the provisions of this Trust, among

which is to pay the largest benefits possible, which are consistent

with the number of participants becoming and likely to become

36.2.22
F:69376 / 11/16/11 -22-

eligible for such payments, the amounts of funds which are

available and which will probably become available, and the

following of sound actuarial practice. Therefore, the power is

given to the Trustees to amend this Agreement by majority vote, at

any time and from time to time, and all parties to the Trust, and

all persons claiming an interest thereunder, shall be bound

thereby, and no participant, Employee member, beneficiary, or any

other person shall have any vested interest or right in the Trust

Fund or in any payment from the Trust Fund, except as provided by

law. The Trustees have full authority to amend, repeal, add to, or

take away any right of payment, retroactively or otherwise, that

they deem proper for the preservation of this Trust; provided,

however, in no event shall the Trust Fund be used for any purpose

other than the purposes set forth in this Trust Agreement, and for

the purposes of paying the necessary expenses incurred in the

administration of this Trust. All amendments to this Agreement

shall comply with applicable sections of the Internal Revenue Code,

other applicable federal statutes and the Contract Articles

creating the Pension Fund.

ARTICLE XI

TERMINATION OF TRUST

Sec. 1. This Trust shall cease and terminate upon the

happening of any one or more of the following events:

(a) In the event the Trust Fund shall be, in the opinion of

the Trustees, inadequate to carry out the intent and

purposes of this Agreement, or to meet the payments due

or to become due under this Agreement to persons already

drawing benefits.

(b) In the event there are no individuals living who can

qualify as Employees hereunder.

Sec. 2. In the event this Trust shall terminate for any of

the reasons set forth in Section 1 of this Article XI, the Trustees

shall allocate the Trust Fund among participants and beneficiaries

of the Pension Plan in the following order:

(a) First, to that portion of each individual's accrued

benefit which is derived from the participant's

contributions to the Pension Plan. (b) Second, in the case of benefits payable as an annuity -

(1) In the case of the benefit of a participant or

beneficiary which was in pay status as of the

beginning of the 3-year period ending on the

termination date of the Pension Plan, to each such

benefit based on the provisions of the Pension

Plan (as in effect during the 5-year period ending

36.2.23
F:69376 / 11/16/11 -23-

on such date) under which such benefit would be

the least.

(2) In the case of a participant's or beneficiary's

benefit which would have been in pay status as of

the beginning of the 3-year period ending on the

termination date of the Pension Plan if the

participant had retired prior to the beginning of

the 3-year period and if his benefits had

commenced (in the normal form of an annuity under

the Pension Plan) as of the beginning of such

period, to each such benefit based on the

provisions of the Pension Plan (as in effect

during the 5-year period ending on such date)

under which such benefit would be the least.

For the purpose of subparagraph (1) the lowest benefit in

pay status during a 3-year period shall be considered the

benefit in pay status for such period.

(c) Third, to all other nonforfeitable benefits (other than

benefits becoming nonforfeitable solely on account of

termination of the Pension Plan) subject to the

limitation that such nonforfeitable benefits shall not

have an actuarial value which exceeds the actuarial value

of a monthly benefit in the form of a life annuity

commencing at age 65 equal to the lesser of -

(1) his average monthly gross income from his Employer

during the 5 consecutive calendar year period

during which his gross income from that Employer

was greater than during any other such period with

that Employer, or

(2) $750 multiplied by a fraction, the numerator of

which is the contribution and benefit base

(determined under Section 230 of the Social

Security Act) in effect at the time the Pension

Plan terminates and the denominator of which is

such contribution and benefit base in effect in

calendar year 1974.

(d) Fourth, to all other nonforfeitable benefits under the

Pension Plan.

(e) Fifth, to all other benefits under the Pension Plan.

(f) If the assets available for allocation under any priority

category (other than 2 (d) and 2 (e) above) are

insufficient to satisfy in full the benefits of all

individuals, the assets shall be allocated pro rata among

such individuals on the basis of the present value as of

the termination date of their respective benefits. To

the extent funded, the rights of all participants to

36.2.24
F:69376 / 11/16/11 -24-

benefits accrued as of the date of termination are

nonforfeitable.

ARTICLE XII

EXTENSION OF PLAN

Sec. 1. Extension of Trust - The Trustees are authorized to

extend the coverage of this Agreement and Trust to such other

Employers and Employees as the Trustees shall agree upon, provided

such Employers and Employees are required to conform to the terms

and conditions of this Trust and to make the same rate of payments

required of the Employers herein, for the same benefits.

Sec. 2. Reciprocity Agreements - The Trustees shall be

authorized to enter into reciprocity agreements with other labor

organizations and other pension funds in which such labor

organizations participate.

Sec. 3. Merger - The Trustees shall have the power to merge

with any other fund established for similar purposes as this Fund,

under terms and conditions mutually agreeable to the respective

Boards of Trustees. No participant's or beneficiary's accrued

benefit will be lower immediately after the effective date of any

such merger than the benefit immediately before that date.

ARTICLE XIII

VESTING OF RIGHTS

The Trustees shall establish standards for the vesting of

benefits which conform to no less than the minimum standards

required by law. No Employee or other person shall have any vested

interest or right in the Trust Fund except as provided by the

Trustees in conformance with applicable law.

ARTICLE XIV

MISCELLANEOUS

Sec. 1. The Trustees will issue a credit for contributions

that have been billed to an Employer if (1) the related work

history was reported by mistake of fact or law (other than a

mistake about plan qualification or tax-exempt status pursuant to

the Internal Revenue Code) as determined by the Trustees and (2)

the request for credit is received within ten years after the

related work history was billed. If an Employer no longer has an

obligation to contribute to the Fund and has satisfied his

withdrawal liability assessment, the Trustees will refund

contributions paid by an Employer to the Trust if (1) such

contributions were made by a mistake of fact or law (other than a

mistake about plan qualification or tax-exempt status pursuant to

the Internal Revenue Code) as determined by the Trustees and (2)

application therefor is received within ten years after payment of

36.2.25
F:69376 / 11/16/11 -25-

the contributions. An Employer shall not have a right to a refund

of contributions made more than ten years prior to his application

therefor. The amount to be returned to the Employer, by credit or

refund, is the excess of the amount contributed or paid over the

amount that would have been contributed or paid had no mistake been

made (this amount is the excess contribution or overpayment).

Interest or earnings attributable to an excess contribution shall

not be returned to the Employer, and any losses attributable to an

excess contribution must reduce the amount returned to the

Employer. For purposes of the previous sentence, plan-wide

investment experience may be applied to the excess contribution in

calculating losses. In no event shall Employers, directly or

indirectly, participate in the disposition of the Trust Fund or

receive any benefits from the Trust Fund.

Sec. 2. The Union or the Employer may, at any time, demand of

the Trustees an accounting with respect to any and all accounts

upon agreement to pay necessary expenses thereof. The Trustees

shall be entitled, at any time, to have a judicial settlement of

their accounts and judicial determination of any questions in

connection with the administration or distribution thereof. Any

Trustee who has resigned, been removed from office, or not been

reappointed shall execute all instruments necessary to transfer the

Trust Fund.

Sec. 3. In the event any question or dispute shall arise as

to the proper person or persons to whom any payments shall be made

hereunder, the Trustees may withhold such payment until an

adjudication of such question or dispute, satisfactory to the

Trustees, in their sole discretion, shall have been made, or the

Trustees shall have been adequately indemnified against loss to

their satisfaction.

Sec. 4. Non-payment by an Employer of any moneys due shall

not relieve any other Employer from its obligation to make payment.

In addition to any other remedies to which the parties may be

entitled, an Employer shall be obligated to pay interest on any

contributions, withdrawal liability and/or other moneys due to the

Trustees from the date when the payment was due to the date when

the payment is made, together with all expenses of collection

incurred by the Trustees, including, but not limited to, attorneys'

fees and such fees for late payment as the Trustees determine and

as permitted by law. The interest payable by an Employer with

respect to past due contributions and/or other money (other than

withdrawal liability) prior to the entry of a judgment, shall be

computed and charged to the Employer (a) at an annualized interest

rate equal to two percent (2%) plus the prime interest rate

established by JPMorgan Chase Bank, NA for the fifteenth (15th) day

of the month for which the interest is charged, or (b) at an

annualized interest rate of 7.5% (whichever is greater). The prejudgment interest payable by an employer with respect to past due

withdrawal liability shall be computed and charged to the Employer

at an annualized interest rate equal to two percent (2%) plus the

prime interest rate established by JPMorgan Chase Bank, NA for the

36.2.26
F:69376 / 11/16/11 -26-

fifteenth (15th) day of the month for which the interest is

charged. Any judgment against an Employer for contributions and/or

withdrawal liability owed to this Fund shall include the greater of

(a) a doubling of the interest computed and charged in accordance

with this section or (b) single interest computed and charged in

accordance with this section plus liquidated damages in the amount

of 20% of the unpaid contributions and/or withdrawal liability.

The interest rate after entry of a judgment against an Employer for

contributions and/or other amounts due (other than withdrawal

liability) shall be due from the date the judgment is entered until

the date of payment, shall be computed and charged to the Employer

on the entire judgment balance (a) at an annualized interest rate

equal to two percent (2%) plus the prime interest rate established

by JPMorgan Chase Bank, NA for the fifteenth (15th) day of the

month for which the interest is charged, or (b) at an annualized

interest rate of 7.5% (whichever is greater), and such interest

shall be compounded annually. The interest rate after entry of a

judgment against an employer for withdrawal liability shall be due

from the date the judgment is entered until the date of payment,

shall be computed and charged to the Employer on the entire

judgment balance at an annualized interest rate equal to two

percent (2%) plus the prime interest rate established by JPMorgan

Chase Bank, NA for the fifteenth (15th) day of the month for which

the interest is charged, and such interest shall be compounded

annually.

Sec. 5. Where used in this Agreement, words in the masculine

shall be read and construed as in the feminine, and words in the

singular shall be read and construed as though used in the plural,

in all cases where such construction would so apply.

Sec. 6. The Article titles are included solely for convenience

and shall, in no event, be construed to affect or modify any part

of the provisions of this Agreement or be construed as part

thereof.

Sec. 7. This Agreement shall in all respects be construed

according to and governed by the laws of the State of Illinois,

including but not limited to the laws applicable to the rate of

interest in the State of Illinois, except as such laws may be

preempted by the laws and regulations of the United States. In all

actions taken by the Trustees to enforce the terms of this Trust

Agreement, including but not limited to actions to collect

delinquent contributions from employers or to conduct audits of

contributing employers' records as authorized by Article III of

this Agreement, the ten-year Statute of Limitations applicable to

actions on written contracts in the State of Illinois shall apply,

provided that the limitations period for any such action shall not

begin to accrue until the date upon which the Trustees and the Fund

receive actual notice of the cause of action, claim and liability

to which the limitations period is applicable. Each Employer shall

accurately and completely report the work history of its eligible

Employees and shall not report anyone who is not an Employee and

shall not report any Employee for any period contributions are not

36.2.27
F:69376 / 11/16/11 -27-

due under the terms of the agreements that have been disclosed to

the Fund. In the event an Employer’s reporting error (including

errors of commission and omission) causes the Fund to pay benefits

that are not owed under the Plan, the Employer agrees to reimburse

the Fund the amount of the benefit payment plus interest at the

rate set forth in Section 4 of this Article, less the amount of the

erroneous contribution paid by the Employer.

Sec. 8. The method of computation of any employer withdrawal

liability imposed by the Multiemployer Pension Plan Amendments Act

of 1980 and payable to the Trust Fund shall be as set forth in

Appendix E to the Pension Plan as may be amended from time to time.

Sec. 9. No person shall serve, or be permitted to serve, as

an administrator, fiduciary, officer, trustee, custodian, counsel,

agent, employee, adviser, provider of goods or services or

consultant of the Fund, or as its representative in any capacity,

or to serve in any capacity that involves decision making authority

or custody or control of the moneys, funds or assets of the Fund,

if such person has been convicted of: robbery, bribery, extortion,

embezzlement, fraud, grand larceny, burglary, arson, a felony

violation of Federal or State law involving substances defined in

section 802(6) of title 21 of the United States Code (hereinafter

referred to as the "Code"), murder, rape, kidnapping, perjury,

assault with intent to kill, any crime described in section

80a-9(a)(1) of title 15 of the Code, a violation of any provision

of the Employee Retirement Income Security Act of 1974, a violation

of section 186 of title 29 of the Code, a violation of chapter 63

of title 18 of the Code, a violation of sections 874, 1027, 1503,

1505, 1506, 1510, 1951 or 1954 of title 18 of the Code, a violation

of the Labor-Management Reporting and Disclosure Act of 1959, or

any felony involving abuse or misuse of such person's labor

organization or employee benefit plan position or employment; or 

conspiracy to commit any such crimes; or attempt to commit any such

crimes, or a crime in which any of the foregoing crimes is an

element; or a misdemeanor involving a breach of fiduciary

responsibility. Upon conviction of any of the crimes described in

the preceding sentence, such person shall immediately be

disqualified from serving the Fund in any capacity described in the

preceding sentence, and any such service shall immediately be

terminated; provided that, upon final reversal of such conviction,

such person, unless otherwise ineligible, shall thereafter be

eligible to serve the Fund; and provided further that this

disqualification shall continue in effect until ten (10) years

after such conviction or after the end of imprisonment on such

conviction, whichever is the later, unless, prior to the end of

such ten-year period, in the case of a person so convicted or

imprisoned, (a) his citizenship rights, having been revoked as a

result of such conviction, have been fully restored, or (b) the

United States Parole Commission, pursuant to applicable law,

determines that such person's service would not be contrary to the

best interests of the Fund.

36.2.28
F:69376 / 11/16/11 -28-

Sec. 10. Each Employer and Union (including former

participating Employers and Unions) consents to personal

jurisdiction and venue in the United States District Court for the

Northern District of Illinois, Eastern Division, with respect to

any suit filed by the Fund in that forum of any nature (including

suits involving fringe benefit contributions, withdrawal liability

or a demand for any audit) and agrees that said forum is the most

convenient forum for such suit. Any lawsuit brought by an Employer

or Union or a former participating Employer or Union challenging

any action or decision of the Trustees or the Fund of any nature,

including but not limited to suits challenging the assessment or

collection of withdrawal liability, a contribution billing, a

decision to terminate the participation of an Employer (or refusal

to accept an Employer or a labor agreement) or a decision with

respect to a contribution refund request, must be filed only in the

United States District Court for the Northern District of Illinois,

Eastern Division, and it is agreed that said forum is the most

convenient forum for the lawsuit. Any lawsuit brought by a

participant or beneficiary of the Fund or a former participant or

beneficiary of the Fund which involves in whole or in part a

challenge to a decision of the Trustees to terminate the

participation of an Employer or Union (or refusal to accept an

Employer, Union or a labor agreement) must be filed in the United

States District Court for the Northern District of Illinois,

Eastern Division, and it is agreed that said forum is the most

convenient forum for the lawsuit.

Sec. 11. A participating Employer shall be bound by the

provisions of this Agreement and the obligations imposed by this

Agreement shall survive the termination of the Employer’s

participation in the Fund.

Sec. 12. An Employer shall be required to pay audit fees and

audit costs if litigation is required to obtain access to any

records that are requested in connection with an audit and/or if

litigation is required to collect additional billings that result

from the audit. Audit fees will be calculated at the market rate

for the metropolitan Chicago area.

ARTICLE XV

BENEFICIAL RIGHTS

No Employer or Union, or Employees, shall have any right,

title or interest in or to the Trust Fund or any part thereof other

than vesting under the Pension Plan except in accordance with

applicable law. There shall be no pro rata or other distribution

of any of the assets of the Fund as a result of any Union, Employer

or group of Employees of Employers ceasing their participation in

this Fund for any purpose or reason, except as required by law.

36.2.29
F:69376 / 11/16/11 -29-

ARTICLE XVI

SAVINGS CLAUSE

Should any provision of this Declaration of Trust be held to

be unlawful, or unlawful as to any person or instance, such fact

shall not adversely effect the other provisions herein contained or

the application of such provision to any other person or instance,

unless such illegality shall make impossible the functioning of the

Pension Plan. No Trustee shall be held liable for any act done or

performed in pursuance of any provision hereof prior to the time

such act or provision shall be held unlawful by a court of

competent jurisdiction.

36.2.30
F:69376 / 11/16/11 -iAPPENDIX

INDEX OF ALL AMENDMENTS TO THE TRUST AGREEMENT OF

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND

ADOPTED AFTER DECEMBER 12, 1974, AND

PRIOR TO NOVEMBER 8, 2011

Article Section Date of Trustees' Meeting

 (Minute Item No. ) 

Preamble,

3rd "Whereas"

clause October 11, 1976 (Item No. 5).

 

I 2 October 11, 1976 (Item No. 5); and

October 19, 1994 (Item No. 40).

I 3 July 18, 1979 (Item No. 51).

II 2 October 11, 1976 (Item No. 5);

August 15, 1979 (Item No. 70);

October 18-19, 1982 (Item No. 8);

March 17-18, 1983 (Item No. 31);

April 19-20, 1983 (Item No. 28);

August 19-20, 1986 (Item No. 32);

December 19, 1988 (Item No. 24);

February 16, 1993 (Item No. 23);

October 19, 1994 (Item No. 40); 

March 30, 1998 (Item No. 12); 

February 22, 2005 (Item No. 34);

December 13, 2007 (Item No. 8); and

September 16, 2009 (Item No. 21).

II 3 October 18-19, 1982 (Item No. 8); 

and April 19-20, 1983 (Item No. 31).

II 5 October 11, 1976 (Item No. 5).

II 6 March 17-18, 1983 (Item No. 31); 

October 19, 1994 (Item No. 40);

February 22, 2005 (Item No. 34); and

September 16, 2009 (Item No. 21).

II 7 March 17-18, 1983 (Item No. 31).

III 1 May 26-27, 1987 (Item No. 34);

December 19, 1997 (Item No. 36); and

September 21, 2006 (Item No. 8).

III 4 April 20-21, 1982 (Item No. 18).

III 5 January 19, 2000 (Item No. 10).

36.2.31
Article Section Date of Trustees' Meeting

 (Minute Item No. ) 

F:69376 / 11/16/11 -iiIII 6 November 13, 1997 (Item No. 12); and

September 21, 2006 (Item No. 8).

III 7 January 18, 2005 (Item No. 8).

 III 8 May 17, 2011 (Item No. 10).

IV 2 September 15, 1977 (Item No. 31).

IV 3 September 15, 1977 (Item No. 31); 

November 16, 1977 (Item No. 27);

November 16-17, 1983 (Item No. 18);

December 15, 1986 (Item No. 17);

February 16-17, 1987 (Item No. 16);

April 21-22, 1987 (Item No. 16); 

September 26-27, 1988 (Item No. 14);

October 26-27, 1989 (Item No. 25;

July 16-17, 1990 (Item No. 11);

July 21, 1992 (Item No. 8); 

November 30, 1993 (Item No. 12);

November 19, 1998 (Item No. 14);

May 19, 1999 (Item No. 16);

October 20, 1999 (Item No. 17);

May 21, 2003 (Item No. 36); 

September 16, 2003 (Item No. 13); 

May 17, 2005 (Item No. 13); and

November 13, 2007 (Item No. 14);

December 13, 2007 (Item No. 11); and

November 8, 2011 (Item No. 18).

IV 4 September 15, 1977 (Item No. 31); 

November 17, 1983 (Item No. 18);

November 19, 1998 (Item No. 14);

May 19, 1999 (Item No. 16);

October 20, 1999 (Item No. 17); 

May 21, 2003 (Item No. 36); May 17,

2005 (Item No. 13); November 13, 2007

(Item No. 14); December 13, 2007

(Item No. 11); and November 8, 2011

(Item No. 18).

IV 9 March 23, 1989 (Item No. 22).

IV 11 October 11, 1976 (Item No. 5);

September 15, 1977 (Item No. 31);

March 16, 1978 (Item No. 20);

November 16-17, 1983 (Item No. 18);

and November 19, 1998 (Item No. 14).

IV 14 September 15, 1977 (Item No. 31); 

November 16-17, 1983 (Item No. 18);

36.2.32
Article Section Date of Trustees' Meeting

 (Minute Item No. ) 

F:69376 / 11/16/11 -iiiNovember 19, 1998 (Item No. 14);

May 19, 1999 (Item No. 16);

October 20, 1999 (Item No. 17); 

May 21, 2003 (Item No. 36); 

November 13, 2007 (Item No. 14); 

December 13, 2007 (Item No. 11); and

November 8, 2011 (Item No. 18).

IV 15 March 18-19, 1980 (Item No. 41).

IV 17 March 23, 1989 (Item No. 22).

IV 20 December 19, 1997 (Item No. 36); and

September 21, 2006 (Item No. 8).

V 2 October 11, 1976 (Item No. 5);

September 15, 1977 (Item No. 31);

November 16-17, 1983 (Item No. 18); 

March 23, 1989 (Item No. 22);

November 19, 1998 (Item No. 14); and

September 21, 2006 (Item No. 8).

V 3 September 15, 1977 (Item No. 31); 

November 16-17, 1983 (Item No. 18);

and November 19, 1998 (Item No. 14).

VI 2 September 19, 1979 (Item No. 60); 

July 14, 1998 (Item No. 8); and

December 13, 2007 (Item No. 8).

VI 3 June 19-21, 1980 (Item No. 23);

July 14, 1998 (Item No. 8); and

December 13, 2007 (Item No. 8).

VI 6 October 11, 1976 (Item No. 5).

VI 7 October 11, 1976 (Item No. 5); 

November 16, 1976 (Item Nos. 28 and 

32); and January 18, 2006 (Item 

No. 10).

VIII October 11, 1976 (Item No. 5); and

July 21, 1988 (Item No. 23).

XII 1 February 18-20, 1981 (Item No. 36).

XII 2 February 18-20, 1981 (Item No. 36).

XII 3 February 18-20, 1981 (Item No. 36);

and May 30, 1986 (Item No. 29).

36.2.33
Article Section Date of Trustees' Meeting

 (Minute Item No. ) 

F:69376 / 11/16/11 -ivXIV 1 December 16-17, 1980 (Item No. 81);

April 23-24, 1986 (Item No. 42); and

November 20, 2002 (Item No. 11).

XIV 4 January 17-19, 1980 (Item No. 26);

October 21-22, 1980 (Item No. 47);

March 16-17, 1982 (Item No. 39);

July 20-21, 1982 (Item No. 27);

January 17-18, 1989 (Item No. 32);

and July 23, 1997 (Item No. 15); and

February 9, 2010 (Item No. 9).

XIV 7 March 24, 1985 (Item No. 30);

November 20, 2002 (Item No. 11); and

September 21, 2006 (Item No. 8).

XIV 8 June 21, 1978 (Item No. 33); January

20-21, 1981 (Item No. 23); and

November 8, 2011 (Item No. 18).

XIV 9 October 18-19, 1982 (Item No. 8).

XIV 10 December 10, 2003 (Item No. 8).

XIV 11 September 21, 2006 (Item No. 8).

XIV 12 September 21, 2006 (Item No. 8).

36.2.34

Central States, Southeast and Southwest Areas Pension Plan 

 

ABOUT THIS BOOKLET...

This booklet tells you about the Central States, Southeast and Southwest Areas Pension Plan and the 

benefits you or your survivors may be eligible to receive if you are a Participant of this Plan. Great care has 

been taken to make this booklet an accurate and comprehensive information source. All information in this 

booklet, however, is subject to the terms of the actual Pension Plan document, which is the final written 

authority on all matters about the Plan. Only the Board of Trustees is authorized to interpret the Pension Plan 

and this booklet. No employer or union or any representative of any employer or union is authorized to 

interpret the Plan. 

If you are a Participant in the Pension Plan, the Plan’s web site, www.centralstates.org, will give you more 

specific information about the benefits you may have earned so far. For actively employed Participants, it will 

also calculate estimates of future benefits if you keep working for the same contributing employer.

IMPORTANTE: Este folleto contiene un sumario en ingles de sus derechos y beneficios bajo 

el Plan. Si usted tiene dificultad en entender cualquier parte de este folleto, favor de llamar a 

nuestro telefono gratis, 1-800-323-5000, si prefiere por manera de correspondencia, favor de 

enviarala a Central States, Southeast and Southwest Areas Pension Fund, P.O. Box 5109, 

Des Plaines, Illinois 60017-5109. 

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION PLAN 

is a jointly administered, defined benefit employee benefit plan. 

EXECUTIVE DIRECTOR: Thomas C. Nyhan 

ADDRESS OF ADMINISTRATIVE OFFICE: 9377 West Higgins Road 

 Rosemont, Illinois 60018-4938 

ADDRESS FOR CORRESPONDENCE: P.O. Box 5109 

 Des Plaines, IL 60017-5109 

TELEPHONE NUMBER: Toll-Free Participant Services: 1-800-323-5000

 General Administrative Office: 1-847-518-9800 

INTERNET WEB SITE: www.centralstates.org 

EMPLOYER IDENTIFICATION NUMBER: 36-6044243 

PLAN NUMBER: 001 

PLAN YEAR: January 1 through December 31 

 EMPLOYEE TRUSTEES EMPLOYER TRUSTEES

 CHARLES A. WHOBREY ARTHUR H. BUNTE, JR. 

 JERRY YOUNGER GARY F. CALDWELL 

 GEORGE J. WESTLEY RONALD DeSTEFANO 

 MARVIN KROPP GREG R. MAY 

The agent for service of legal process is Thomas C. Nyhan, Executive Director, Central States, Southeast and 

Southwest Areas Pension Fund, at the address shown above. 

36.3.2
Summary Plan Description Benefit Classes 1 to 14 

1 www.centralstates.org 

Retirement Benefits 

Types of Benefits...................................................................................................2 

Contribution-Based Pension..................................................................................2 

Contributory Credit Pension (30-And-Out Pension) ..............................................5 

Twenty-Year Service Pension ...............................................................................7 

Deferred Pension...................................................................................................8 

Payment Options 

With JSO Coverage...............................................................................................9 

Without JSO Coverage..........................................................................................9 

Qualified Domestic Relations Order (QDRO)......................................................10 

Before Retirement Death Benefits 

50% Surviving Spouse Benefit ............................................................................11 

60-Month Benefit .................................................................................................11 

Lump-Sum Death Benefit ....................................................................................12 

Death Benefits Before Retirement ......................................................................12 

Disability Benefits 

Monthly Disability Benefit ....................................................................................13 

$500 Lump-Sum Spouse Death Benefit..............................................................14 

Lump-Sum Disability Benefit ...............................................................................14 

Partial Pensions ............................................................................................................15 

Reemployment after Retirement..................................................................................16 

Filing for Benefits..........................................................................................................19 

Terms and Definitions 

Becoming a Participant........................................................................................21 

Employer Contributions .......................................................................................21 

Self-Contributions................................................................................................21 

Contributory Credit ..............................................................................................22 

Non-Contributory Credit.......................................................................................22 

Military Credit.......................................................................................................23 

Vesting Service....................................................................................................23 

Breaks in Service.................................................................................................24 

Benefit Class .......................................................................................................25 

Retirement Date ..................................................................................................26 

Voluntary Withdrawal...........................................................................................26 

Rehabilitation Plan........................................................................................................27 

General Information 

Plan Administration..............................................................................................29 

Your Rights under ERISA....................................................................................29 

Termination of the Plan .......................................................................................30 

Class Action Settlement ...............................................................................................31 

Appendix........................................................................................................................33 

Table of Contents 

36.3.3
Central States, Southeast and Southwest Areas Pension Plan 

2 

RETIREMENT 

BENEFITS 

If you have been a Participant of this Pension Plan 

for a while, you may already be familiar with many of 

the terms that are used in the next few pages. If you 

are new to the Plan you may first want to read the 

Terms and Definitions section. That section 

explains the terms which are important to 

understanding your benefits. 

TYPES OF BENEFITS 

The Pension Plan provides 4 types of retirement 

benefits: 

• Contribution-Based Pension

• Contributory Credit Pension (30-And-Out Pension)

• Twenty-Year Service Pension

• Deferred Pension

Each retirement benefit has its own rules. You can 

receive only one retirement benefit from this Plan. If 

you qualify for more than one benefit you will be paid 

the highest benefit to which you are entitled. 

Your retirement benefit is not subject to a Social 

Security offset. Any benefits you receive from this 

Plan are separate from and in addition to any Social 

Security benefits you may receive. 

CONTRIBUTION-BASED PENSION 

The Contribution-Based Pension is based on all 

Contributions paid on your behalf while you are a 

Participant in the Pension Plan. 

CONTRIBUTION-BASED PENSION 

REQUIREMENT 

There is only one requirement for the ContributionBased Pension. You must have at least 5 years of 

Vesting Service. If you do not have any Employer 

Contributions on or after January 1, 1999, you must 

have 10 years of Vesting Service. 

CONTRIBUTION-BASED PENSION AMOUNT 

The amount of your monthly Contribution-Based 

Pension is based on the total amount of all 

Contributions paid to the Plan on your behalf. The 

monthly benefit you earn is calculated by adding the 

following 3 amounts: 

AMOUNT 1 

Post-2003 Contributions 

The total amount of all Employer Contributions paid 

on your behalf from January 1, 2004, forward is 

multiplied by 1%. 

 

AMOUNT 2 

Contributions from 1986 through 2003 

The total amount of all Contributions paid on your 

behalf from January 1, 1986 to December 31, 2003, 

is multiplied by 2%. 

AMOUNT 3 

Contributions before 1986 

The amount earned for any pre-1986 Contributions 

is determined by a formula, based on your Benefit 

Class and Contributory Credit as of December 31, 

1985, as defined in the Pension Plan. If the last time 

you earned Contributions was before 1986, the 

Contribution-Based Pension was referred to as the 

Vested Pension. 

Your Contribution-Based Pension is the total of 

Amounts 1, 2, and 3. 

If you begin receiving your pension benefit 

payments after July 1, 2011, you must be at 

least age 57 to receive your pension benefit. 

IMPORTANT: If your Employer incurred a Rehabilitation Plan Withdrawal or is 

paying contributions on either the Default Schedule or a Distressed Employer 

Schedule, your pension benefits may be impacted. Please refer to the section 

entitled “Rehabilitation Plan.” 

36.3.4

Central States, Southeast and Southwest Areas Pension Plan 

4 

WHEN IS THE BENEFIT PAYABLE? 

The Plan’s Normal Retirement Age for the 

Contribution-Based Pension is 65 or, if later, after 

you have earned 5 years of Vesting Service. The 

Contribution-Based Pension is payable in full upon 

retirement at age 65, or in full at age 62 if you have 

at least 20 years of Credit. You may elect to take 

your Contribution-Based Pension before age 65 (or 

before age 62 with 20 years of Credit) with a 

reduction of 6% per year (0.5% per month) for each 

year your Retirement Date precedes either your 62nd

or 65th birthday. If you begin receiving your pension 

benefit payments after July 1, 2011, you must be at 

least age 57 when you retire. 

Remember that every dollar paid on your behalf 

increases your Contribution-Based Pension, and the 

higher the Contribution rate and the more 

Contributions you earn, the greater your 

Contribution-Based Pension will be. In addition, the 

older you are when you retire (up to age 65 or 62, 

depending on whether you have at least 20 years of 

Credit), the higher your monthly benefit will be. 

All future negotiated increases in contribution rates 

will be used in calculating the Post-2003 portion of 

the Contribution-Based Pension. 

Contribution-Based Pension 

Early Retirement Reductions 

Use this chart to determine the amount of the 

Contribution-Based Pension reduction for retirement 

before age 65 (with less than 20 years of Credit) or 

before age 62 (with at least 20 years of Credit). 

Contribution-Based Pension 

Early Retirement Factors

Examples: 

Irene has less than 20 years of Credit and her 

unreduced Contribution-Based Pension is $358.20 at 

age 65. If she retires at age 61, Irene’s benefit would 

be $272.23 ($358.20 times 0.76). 

Rick has at least 20 years of Credit and his 

unreduced Contribution-Based Pension is $645.52 at 

age 62. If he retires at age 59, Rick’s benefit would 

be $529.33 ($645.52 times 0.82). 

Age

5-19 

Years

20+ 

Years

65+ 1.00 1.00

64 0.94 1.00

63 0.88 1.00

62 0.82 1.00

61 0.76 0.94

60 0.70 0.88

59 0.64 0.82

58 0.58 0.76

57 0.52 0.70

In the previous Example, the Contribution-Based 

Pension is $220.40 per month, payable upon 

retirement at age 65 because Phil has less than 20 

years of Credit. For retirement at age 63, the amount 

would be $193.95 ($220.40 times 0.88). 

NOTE: If you qualify for a Vested Pension 

(because you did not earn any Contributions 

after 1985) instead of a Contribution-Based 

Pension, then your benefit is payable in full for 

retirement at age 65 even if you have 20 years of 

Credit. 

36.3.6
Summary Plan Description Benefit Classes 1 to 14 

5 www.centralstates.org 

CONTRIBUTORY CREDIT PENSION 

(30-AND-OUT PENSION) 

The Contributory Credit Pension, also known as the 

30-And-Out Pension, is based on your years of 

Contributory Credit, your Benefit Class, your age at 

retirement, and the Contributions you earned after 

2003. Non-Contributory Credit is not considered. 

CONTRIBUTORY CREDIT PENSION 

REQUIREMENTS 

To qualify for a Contributory Credit Pension you 

must have earned at least 30 years of Contributory 

Credit (some of which must be before 2004) and 

you must have earned at least 1 week or 5 days of 

Employer Contributions under Schedule B of the 

Benefit Class Rate Chart. 

CONTRIBUTORY CREDIT PENSION AMOUNT 

The amount of your Contributory Credit Pension 

depends on the following: 

• your established Benefit Class,

• the total number of years of Contributory 

Credit you earned as of your Retirement 

Date,

• the number of years of Contributory Credit 

you earned as of December 31, 2003 

(known as your Pre-2004 Contributory 

Credit), and

• any additional benefits you earn after 

December 31, 2003 (known as your Post2003 Benefit).

The amount of your Contributory Credit Pension is 

calculated by adding your Pre-2004 Contributory 

Credit Pension, as of December 31, 2003, to your 

Post-2003 Benefit, following these 4 steps: 

Step 1: 

Your Pre-2004 Percentage is calculated by dividing 

your Pre-2004 Contributory Credit (the number of 

years of Contributory Credit you earned as of 

December 31, 2003) by 30. 

Step 2: 

Your Pre-2004 Contributory Credit Pension is 

calculated by multiplying the Base Contributory 

Credit Pension by the Pre-2004 Percentage from 

Step 1 (up to 100%). 

Step 3: 

Your Post-2003 Benefit is calculated by multiplying 

the total Contributions paid on your behalf after 

December 31, 2003 by 1%. If you age at retirement 

is less than 62, your Post-2003 Benefit will be 

reduced by 6% per year (0.5% per month). 

Step 4: 

Your final Contributory Credit Pension is calculated 

by adding your Pre-2004 Contributory Credit 

Pension from Step 2 to your Post-2003 Benefit from 

Step 3. 

Note that beginning January 1, 2004, any additional 

future benefits you earn (the Post-2003 Benefit) will 

be based on 1% of the Contributions paid on your 

behalf after December 31, 2003. 

BASE CONTRIBUTORY CREDIT PENSION 

Benefit Class Base Amount 

1 $ 60.00 

2 $ 90.00 

2A $125.00 

3 $170.00 

3A $210.00 

4 $275.00 

5 $315.00 

6 $350.00 

7 $400.00 

8 $445.00 

9 $485.00 

10 $530.00 

11 $595.00 

12 $675.00 

13 $725.00 

14 $775.00 

To determine whether your Employer has 

submitted Contributions under Schedule B, 

please contact the Plan.

36.3.7


Central States, Southeast and Southwest Areas Pension Plan 

8 

DEFERRED PENSION 

Deferred Pensions are benefits that you can delay 

receiving to a later age to get a higher monthly 

benefit. The amount of your Deferred Pension is 

based on your Benefit Class and your age at 

retirement using the Twenty-Year Service Pension 

Benefit Amounts chart on the previous page. 

DEFERRED PENSION REQUIREMENTS

To earn a Deferred Pension you must: 

• Reach age 57 before you have a One-Year 

Break and have at least 20 years of total Credit, 

of which at least 10 years is Contributory Credit; 

 or

• Reach age 50 before you have a One-Year 

Break and have at least 20 years of Contributory 

Credit; 

 or

• Have at least 30 years of total Credit, of which at 

least 20 years are Contributory Credit; 

 or 

• Have at least 20 years of Contributory Credit 

and at least 20 weeks of Employer Contributions 

in a Plan Year under Schedule B of the Benefit 

Class Rate Chart. 

To determine whether your Employer has 

submitted Contributions under Schedule B, 

please contact the Plan.

If you begin receiving your pension benefit 

payments after July 1, 2011, you must be at 

least age 57 to receive your pension benefit. 

Example: 

Amy was a Participant in the Plan from age 37 to age 

57 during the years 1991 through 2010. She earned 

20 years of Contributory Credit and established 

Benefit Class 14. Although Amy could retire and 

receive a benefit as early as age 57 ($625 per 

month), she chose instead to defer her retirement to 

age 60 to receive a higher benefit of $775 per month. 

She is eligible for the age 60 amount of $775 because 

she met the Deferred Pension requirement. 

Note: If Amy’s age-adjusted Contribution-Based 

Pension happens to be greater than $775, she will 

receive that higher benefit instead of the Deferred 

Pension. 

DEFERRED PENSION AMOUNT

The amount of your Deferred Pension is based on 

your Benefit Class and your age at retirement using 

the Twenty-Year Service Pension Benefit Amounts 

chart on the previous page. The Deferred Pension 

cannot be paid before age 57. 

36.3.10





Central States, Southeast and Southwest Areas Pension Plan 

14 

If you do not have a spouse on the date of your 

death, the only benefit payable is the $1,000 Death 

Benefit. 

If you die while receiving a Monthly Disability Benefit 

and after reaching age 65, the $1,000 Death Benefit 

is payable to your spouse or other eligible payee as 

indicated above. 

$500 LUMP-SUM SPOUSE 

DEATH BENEFIT 

If your spouse dies while you are receiving a Monthly 

Disability Benefit, you will be paid a one-time $500 

Lump-Sum Death Benefit. 

LUMP-SUM DISABILITY BENEFIT 

The Lump-Sum Disability Benefit is a one-time 

benefit of $3,000 which may be payable instead of

the Monthly Disability Benefit, if you are disabled 

after reaching age 45. (The amount is $2,000 if you 

only earned Employer Contributions under Schedule 

A of the Benefit Class Rate Chart). 

You can qualify for a Lump-Sum Disability Benefit if: 

• You become totally and permanently disabled on 

or after your 45th birthday, and before you have 

3 or more One-Year Breaks in a row; and

• As of the date you become disabled you have 10 

or more years of Credit.

• If, after recovery from your disability, you 

earn at least one year of Contributory 

Service Credit but have less than 250 weeks 

of Contributions paid on your behalf, your 

retirement benefit will be determined in the 

same manner as in the preceding paragraph. 

However, if your additional contributions 

enable you to establish a higher Benefit 

Class, we will use your higher Benefit Class 

when we determine your retirement benefit.

• If, after recovery from your disability, you 

have at least 250 weeks of Contributions 

paid on your behalf, any retirement benefit 

you are eligible to receive will be determined 

as though you had never received a Monthly 

Disability Benefit.

DEATH WHILE RECEIVING A MONTHLY 

DISABILITY BENEFIT 

If you die while receiving a Monthly Disability Benefit 

and before age 65, your spouse will be entitled to 

choose between the following: 

50% Surviving Spouse Benefit based on any 

retirement benefit you were eligible to receive on 

the date of your death if you are at least age 57 

when you die. If you are under age 57, benefit 

payments cannot begin until the month following 

the month in which you would have reached age 

57. For the Contribution-Based Pension or a 

Deferred Pension, the benefit amount will be 

based on your age at the date of your death (or 

any later date chosen by your spouse). For a 

Twenty-Year Service Pension or Contributory 

Credit Pension, the amount will be based on your 

age as of December 31 of the first year after the 

date you became totally and permanently 

disabled and in which you had less than 10 

weeks of Contributions; 

 or

$1,000 Death Benefit This benefit will be paid to 

the first of the following:

• Your current spouse

• Your dependent children

• Your non-dependent children

• Your parents

• Your brothers and sisters

• Your estate

Note: If you recover from a total and permanent 

disability and you are eligible for any type of 

retirement benefit, payment of the retirement 

benefit cannot begin until you are at least age 57 

if those payments begin after July 1, 2011. 

To determine whether your Employer has 

submitted Contributions only under Schedule A, 

please contact the Plan.

36.3.16



Central States, Southeast and Southwest Areas Pension Plan 

18 

WHAT HAPPENS TO YOUR BENEFIT AMOUNT IF 

YOU EARN ADDITIONAL CONTRIBUTORY 

CREDIT AFTER RETIRING? 

If you return to Contributory Service after retiring, 

when you retire again your benefit amount will be 

recalculated according to the following: 

• If you earn less than one additional year of 

Contributory Credit, your benefit amount will not 

be re-calculated and when you retire again you 

will receive your original benefit.

• If you have at least one year of Contributory 

Credit but less than 250 weeks of additional 

Contributions, you will receive the benefit you 

originally received or, if higher, your 

Contribution-Based Pension based on your age 

at your original Retirement Date.

• If you have at least one (1) year of Contributory 

Credit and at least 250 weeks of additional 

Contributions in five (5) or more calendar years, 

your benefit amount will be re-calculated as 

though you had never retired. 

Note: Your Payment Option (JSO) can be 

changed only if you return to work and have at 

least 250 additional weeks of Contributions paid 

on your behalf. 

36.3.20
Summary Plan Description Benefit Classes 1 to 14 

19 www.centralstates.org 

• your benefit amount payable based on 

your Retirement Date is less than the 

benefit amount payable based on the 

date that the Fund receives your written 

notice of your retirement; and

• you elect JSO coverage.

For purposes of electing JSO coverage, you must be 

married to the same person on both your retroactive 

Retirement Date and the date that your application is 

approved. 

VERIFYING ELIGIBILITY BEFORE YOU RETIRE 

You can verify if you are eligible for benefits before 

your planned Retirement Date by using the Plan’s 

web site. Alternatively, you can write the Plan a letter 

asking for confirmation of your status. Be sure to 

include your 9-digit member identification number, 

name, address, birth date, employment history and 

local union number(s). We will tell you how much 

credit you have earned so far and let you know if you 

are eligible for benefits. If we need any information 

from you, we will let you know. 

WHAT TO DO IF YOUR CLAIM IS DENIED 

The Plan has an appeals procedure you may follow 

if all or part of your claim is denied. You must go 

through the appeals procedure before starting any 

legal action. The appeals procedure involves the 

following: 

• A review of your claim by the Benefits Claim 

Appeals Committee. 

• If you disagree with the decision you 

received, you may request a review of your 

claim by the Trustee Appellate Review 

Committee. If you choose, you may make a 

personal presentation of your appeal at their 

next available regularly scheduled meeting.

These Committees will act according to the 

following: 

• If you do not meet the eligibility requirements, 

your claim will be denied. A decision to deny 

a claim for benefits is based on the eligibility 

rules of the Plan and all available verified 

information.

• If all or part of your claim is denied, you will 

be notified of the decision by mail. The letter 

will state why your claim was denied and will 

reference the section(s) of the Plan used in 

determining the reason for that denial.

FILING FOR BENEFITS

To receive benefits you must file an application. You 

can get an application for benefits at your local union 

office, by writing to the Plan, or through the Plan’s 

web site. If at all possible, do not retire before your 

eligibility for benefits has been confirmed. You 

should file your application for retirement benefits 

several months before you want to retire. Do not, 

however, complete and send your JSO election form 

until you are within 180 days of your Retirement 

Date. 

For a disability benefit, file an application for benefits 

as soon as possible after you become disabled. 

An application for any death benefit should be filed 

as soon as possible after your death. 

WHAT INFORMATION SHOULD YOU INCLUDE 

WITH AN APPLICATION? 

The information included with an application is 

different for each benefit. The information needed is 

stated on each application form. 

If your benefits are required to be divided as a result 

of a divorce, you should submit a copy of your 

divorce decree and a Qualified Domestic Relations 

Order which defines the terms of the distribution. 

Please refer to the Plan’s web site for further 

information. 

12-MONTH PAYMENT LIMIT 

The Plan will pay no more than 12 months of 

retroactive retirement or survivor benefit payments

when benefits begin. The 12-month payment limit 

does not apply to the Monthly Disability Benefit. 

If you elect a retroactive Retirement Date, then your 

spouse must consent to your retroactive Retirement 

Date (by signing a form sent by the Plan) if both of 

the following apply: 

You must terminate your employment and receive 

all compensation from an employer that contributes 

to the Plan on or before your Retirement Date. If 

you are working for a non-contributing employer, 

you must also terminate your employment and 

receive all compensation unless you have received 

written notification from the Plan that your 

employment is not disqualifying Restricted 

Reemployment.

36.3.21
Central States, Southeast and Southwest Areas Pension Plan 

20 

• The letter will also tell you what additional 

information you need to submit for your claim 

to be considered further. It is your 

responsibility to get additional information and 

verification needed to support your claim.

SOME THINGS TO KNOW ABOUT THE 

APPEALS PROCESS 

• You must use the appeal forms supplied by the 

Plan. Failure to do so may delay the processing 

of your appeal. You may write the Plan to 

request an appeal form, or print one from the 

Plan’s web site.

• You must submit your appeal within 180 days 

after you receive the Plan’s notice of denial.

• Typically, your appeal will be heard by the 

Benefits Claim Appeals Committee within 30 

days of receipt by the Plan. You may waive this 

limit in order to allow the Plan more time to 

conduct research or for you to provide additional 

information.

• Typically, your request for a review by the 

Trustee Appellate Review Committee will be 

heard within 90 days.

• Failure to provide information necessary to 

decide your claim will automatically extend the 

period allowed for appellate review.

Misrepresentation of Facts: 

If you omit information, or furnish false or 

misleading information to the Plan, the Board 

of Trustees can take measures, including legal 

action, to recover any benefits you are not 

eligible to receive.

36.3.22
Summary Plan Description Benefit Classes 1 to 14 

21 www.centralstates.org 

TERMS AND 

DEFINITIONS

BECOMING A PARTICIPANT 

To earn a benefit from the Pension Plan, you must 

first become a Participant by working for an 

Employer that submits Contributions to the Plan on 

your behalf. You become a Participant if you have at 

least 20 weekly, 75 daily, or 600 hourly Contributions 

paid on your behalf within the first 12 months of your 

employment, or in any calendar year after that. 

Becoming a Participant does not necessarily mean 

you will qualify for benefits. To qualify for benefits, 

you must earn a minimum amount of Vesting 

Service. To keep the Vesting Service you earn, you 

must remain a Participant to avoid having what is 

called a Break in Service. 

EMPLOYER CONTRIBUTIONS

Benefits are funded by Employer Contributions to 

the Pension Plan. The amount of Contributions your 

Employer submits on your behalf is specified by your 

collective bargaining agreement. No portion of your 

union dues is submitted to the Plan. 

SELF-CONTRIBUTIONS 

In some cases you can submit a limited amount of 

Contributions to the Plan on your own behalf. These 

voluntary, optional Contributions are called SelfContributions. You can submit Self-Contributions 

only for periods of absence before January 1, 1994,

and only for periods of sick leave (because of illness 

or injury), layoff, strike or approved leave of absence 

during which you remained on your Employer’s 

seniority list. You might want to submit SelfContributions to avoid a One-Year Break or a Break 

in Service, to earn additional Contributory Credit, or 

to earn Vesting Service. You will be allowed to 

submit a limited amount of Self-Contributions if: 

• You submit enough Self-Contributions so 

that you have at least 20 weeks, 75 days, or 

600 hours of Contributions in the calendar 

year for which the Self-Contributions are 

submitted, and 

• You submit Self-Contributions at the same 

rates your Employer was required to pay 

under your collective bargaining agreement; 

and 

• You follow the Plan’s procedures for 

submitting Self-Contributions, including the 

payment of interest from the earliest date of 

the period of the Self-Contributions to the 

date you submit them. The interest rate you 

pay is the same rate charged to Employers 

that do not pay their Contributions on a 

timely basis.

In the event of your death, your spouse can submit 

Self-Contributions for your periods of absence which 

precede your date of death, following the same rules 

listed above. 

If you decide to submit Self-Contributions, write to 

the Plan at the address listed at the beginning of this 

booklet. Be sure to include your 9-digit member 

identification number, list the time period for which 

you would like to submit Self-Contributions, and 

provide the reason for and documentation of your 

absence. Be prepared to provide proof of your 

employment status during that absence. You will be 

sent information about the total cost of your SelfContributions, including interest, and instructions 

regarding payment. In general, Self-Contributions 

are not refundable. If, however, you submit SelfContributions and ultimately do not qualify for any 

benefit from the Plan, you may write and request 

that your Self-Contributions be returned. Any refund 

to which you are entitled will include interest 

compounded annually. 

Caution 

You cannot be a Participant if you are a 

manager, supervisor, business partner, sole 

proprietor, or business owner with supervisory 

authority, or if you are self-employed. 

Remember... 

You can submit Self-Contributions only for 

periods before 1994 and only if you remained 

on the Employer’s seniority list during your 

absence. 

36.3.23


Central States, Southeast and Southwest Areas Pension Plan 

24 

HOW VESTING SERVICE AND CONTRIBUTORY 

CREDIT ARE DIFFERENT 

Vesting Service determines whether you earn the 

right to a benefit. Contributory Credit affects the 

amount and the type of any eventual benefit you may 

earn. To earn a year of Vesting Service you need 20 

weeks or 75 days or 600 hours of Contributions, but 

a year of Contributory Credit requires 40 weeks or 

180 days or 1,200 hours of Contributions. This 

means you can accumulate Vesting Service more 

quickly than Contributory Credit, as in this example: 

WEEKS PAID / VESTING SERVICE / 

CONTRIBUTORY CREDIT

In the above example, the Participant is Vested 

because he has 5 Vesting Service Years (and 

because he had Contributions paid on his behalf 

after December 31, 1998). However, he has only 

4.175 years of Contributory Credit. He has earned a 

Contribution-Based Pension because he is Vested, 

and he has accumulated 4.175 years of Contributory 

Credit toward other potential benefits. 

IMPORTANT NOTE ABOUT BECOMING VESTED 

When you become Vested, you are protected from 

having a Break in Service that would cause you to 

lose the Credit and Vesting Service you have 

earned, but you are not protected from having a 

One-Year Break. A One-Year Break may affect how 

your benefit amount is determined because it will 

affect your Benefit Class and/or your Qualifying Age,

and 3 or more One-Year Breaks in a row will make 

you or your survivors ineligible for certain disability 

and death benefits. So, even if you are Vested, you 

should understand the Break in Service rules. 

Weeks 

Paid

Vesting 

Service

Contributory 

Credit

2015 40 1 year 1.000 year 

2014 27 1 year 0.675 year 

2013 52 1 year 1.000 year 

2012 7 0 year 0.000 year 

2011 47 1 year 1.000 year 

2010 20 1 year 0.500 year 

Total 5 years 4.175 years 

BREAKS IN SERVICE

There are two kinds of Breaks in Service: a OneYear Break and a Break in Service. Although having 

a One-Year Break may affect the amount of your 

benefit, it is not as serious as having a Break in 

Service, which causes you to lose all your Credit and 

Vesting Service. 

ONE-YEAR BREAK 

A One-Year Break is a calendar year with less than 

10 weeks (or 37 days for years after 1984, or 45 

days for years before 1985, or 300 hours) of 

Contributions, or 450 hours of Vesting Service for 

Continuous Employment. In general, however, any 

period of time during which you are sick, injured or 

on an approved strike will not count against you in 

determining whether you have had a One-Year 

Break. 

Your benefit amount may be affected if the last 250 

weeks (or 1,250 days) of Contributions paid on your 

behalf before December 31, 2003, or the date you 

retire, are interrupted by a One-Year Break. If this 

happens, your Benefit Class and/or your Qualifying 

Age can be affected, which may affect your benefit 

amount. 

WHAT IS A BREAK IN SERVICE? 

A Break in Service, which occurs when you have a 

number of One-Year Breaks in a row, causes you to 

lose all your Credit and Vesting Service. You can 

have a Break in Service only if you are not yet 

Vested. 

WHEN DO YOU HAVE A BREAK IN SERVICE? 

If you are not yet Vested, you have a Break in 

Service if you have the greater of: 

• 5 or more One-Year Breaks in a row, or 

• a number of One-Year Breaks in a row that 

equals or exceeds the number of years of 

Vesting Service you had prior to those One-Year 

Breaks. 

Note: If you are not Vested and your series of 

consecutive One-Year Breaks began before 

1976, then different Break in Service rules apply, 

and you should contact the Fund for further 

information. 

36.3.26

Central States, Southeast and Southwest Areas Pension Plan 

26 

VOLUNTARY WITHDRAWAL 

A Voluntary Withdrawal is serious because it can result 

in the loss of all Non-Contributory Credit you may have 

been eligible to receive, and possibly the loss of 

additional benefits as described below. 

If you are not yet Vested, you can also eventually lose 

your Contributory Credit unless you again become a 

Participant before having a Break in Service. 

A Voluntary Withdrawal occurs if your Employer stops 

submitting Contributions to the Plan on your behalf for 

either of these reasons: 

• Your employee group decertifies from or 

removes your local union as its 

bargaining representative; or

• Your employee group ratifies or accepts a 

collective bargaining agreement which no 

longer requires your Employer to 

continue making Contributions to the Plan 

on behalf of you and the other members 

of your employee group.

WHAT HAPPENS BECAUSE OF A VOLUNTARY 

WITHDRAWAL? 

If you are a member of an employee group involved in 

a Voluntary Withdrawal, you will permanently lose all 

Non-Contributory Credit. You can avoid the loss of your 

Non-Contributory Credit only if you stop working for 

that Employer before the last day of the 6th calendar 

month following the date of the Voluntary Withdrawal, 

or if the employee group again becomes covered by a 

collective bargaining agreement requiring Contributions 

to the Plan before the last day of the 18th calendar 

month following the date of the Voluntary Withdrawal. 

• If your Benefit Class as of December 31, 2003, was 

based on the Average Rate, your Benefit Class will 

continue to be based on the Average Rate. If you 

changed bargaining units after December 31, 2003, 

or if the most recent Employer Rate no longer applies 

to you, your Benefit Class will also be based on the 

Average Rate. 

Using the Average Rate, your Benefit Class is allowed 

to increase, but it is limited to the highest Benefit Class 

you earned on or before December 31, 2003. 

RETIREMENT DATE 

Your Retirement Date is the date you stop working in 

Covered Service, receive all compensation due you 

from your Employer, and terminate your employment. 

A Participant eligible for a retirement pension may 

receive benefit payments on the 1st day of the month 

following his Retirement Date. 

At the time of retirement, both you and your Employer 

will need to complete a Retirement Declaration Form 

verifying your last day worked. The Retirement 

Declaration Form must be completed and returned to 

the Fund before any benefits can be paid by the Fund. 

Note: You can still increase your Benefit 

Class for purposes of a Twenty-Year Service 

Pension or a Deferred Pension. 

A Voluntary Withdrawal may also cause the loss of 

additional benefits. A Voluntary Withdrawal may also 

be considered a Rehabilitation Plan Withdrawal. If 

your last Contributing Employer to the Central States 

Pension Fund incurs a Rehabilitation Plan Withdrawal, 

your “Adjustable Benefits” will be eliminated. 

Further information can be found in the next 

section: REHABILITATION PLAN. 

36.3.28
Summary Plan Description Benefit Classes 1 to 14 

27 www.centralstates.org 

REHABILITATION PLAN 

Under the terms of the Pension Protection Act of 2006 

(“PPA”), a pension plan is required to adopt a 

Rehabilitation Plan if the pension plan is in critical 

status as defined under the PPA. The Pension Fund 

was certified to be in critical status and established a 

Rehabilitation Plan in 2008 and updates have been 

made since that time. 

The Rehabilitation Plan offers two schedules of 

benefits that bargaining parties (your employer and 

local union) can negotiate to continue participation in 

the Pension Fund. In addition, the Rehabilitation Plan 

also addresses the impact of the withdrawal of a 

Contributing Employer from the Fund. 

First, let’s look at the Rehabilitation Plan Schedules 

and then at Rehabilitation Plan Withdrawals. The 

full Rehabilitation Plan is available in the Pension Plan 

Document (Appendix M) which can be found on the 

Fund’s web site or obtained by calling the Fund. 

REHABILITATION PLAN SCHEDULES 

Under the Rehabilitation Plan, the bargaining parties 

can choose either the Primary or Default Schedule: 

• The Primary Schedule allows Participants to 

retain their eligibility for the benefits that they 

were previously eligible to receive. 

• The Default Schedule results in the loss of 

Adjustable Benefits (described in the section 

entitled “Adjustable Benefits”). 

The Default Schedule is applied when the bargaining 

parties agree to the Default Schedule, or when the 

bargaining parties fail to reach an agreement on a 

schedule within 180 days after the expiration of the 

collective bargaining agreement. 

Under the Default Schedule, a Participant remains 

eligible only for the Contribution-Based Pension 

payable in full at age 65 or to an actuarially equivalent 

benefit with a minimum retirement age of 57 — see the 

“Actuarial Equivalence Table.” 

A Participant becomes subject to the Default Schedule 

and the loss of Adjustable Benefits if the Participant’s 

benefit commencement date is on or after April 8, 

2008, and: 

(1) the Participant has earned Contributory 

Service Credit with a Contributing Employer 

(or predecessor / successor entity) that at any 

time becomes subject to the Default 

Schedule; and 

(2) the Participant’s last year of Contributory 

Service Credit prior to the Employer 

becoming subject to the Default Schedule 

was earned while a member of a Bargaining 

Unit (or predecessor / successor Bargaining 

Unit) that ultimately became subject to the 

Default Schedule. 

A Participant whose benefit commencement date is 

one year or more prior to the Contributing Employer 

becoming subject to the Default Schedule is not 

subject to the elimination of Adjustable Benefits 

provided that the Pensioner does not engage in 

Restricted Reemployment at any time subsequent to 

the benefit commencement date. 

A third schedule, the Distressed Employer Schedule, is 

explained in the “Special Rules” section. 

REHABILITATION PLAN WITHDRAWALS

A Rehabilitation Plan Withdrawal (“RPW”) occurs on 

the date a Contributing Employer: 

(1) is no longer required to make Employer 

Contributions to the Pension Fund under 

one or more of its Collective Bargaining 

Agreements; 

(2) undergoes a significant reduction in its 

obligation to make Employer Contributions 

resulting from outsourcing or 

subcontracting work covered by the 

applicable Collective Bargaining 

Agreement(s) as a result of actions by 

members of a Bargaining Unit (or its 

representatives) or the Contributing 

Employer; 

(3) is administratively terminated with respect 

to any or all of its Collective Bargaining 

Agreements due to (a) a violation of the 

Plan’s rules with respect to the terms of a 

Collective Bargaining Agreement; or (b) 

any other violation of the Plan’s rules; or 

(4) any transaction where all or a portion of the 

operations for which the Contributing 

Employer has an obligation to contribute 

are continued in whole or in part without 

maintaining the obligation to contribute to 

the Plan. In certain circumstances, the 

Trustees may decline to apply the 

elimination of adjustable benefits to a 

Participant that has submitted a retirement 

application and named a Retirement Date 

prior to the effective date of the RPW. 

An RPW results in the loss of Adjustable Benefits. 

Under an RPW, a Participant remains eligible for only 

the Contribution-Based Pension payable in full for 

retirement at age 65 or to an actuarially equivalent 

benefit with a minimum retirement age of 57 — see the 

Actuarial Equivalence Table. 

36.3.29

Summary Plan Description Benefit Classes 1 to 14 

29 www.centralstates.org 

GENERAL 

INFORMATION

PLAN ADMINISTRATION 

The Board of Trustees makes the rules and 

regulations to administer the Plan. The Plan gives the 

Board of Trustees the discretionary and final authority 

in making all decisions, including decisions on claims 

for benefits and decisions interpreting Plan documents 

of the Fund. By amendment, the Board of Trustees 

may change the terms, conditions or benefits of the 

Plan. Only the Trustees can make a final decision 

regarding any question, interpretation or application of 

any part of the Plan. 

REQUIRED BEGINNING DATE OF YOUR 

BENEFITS 

If you were born on or after July 1, 1917, we will begin 

paying you any benefits you are entitled to receive 

from the Plan no later than April 1 of the year 

immediately following the calendar year in which you 

reach age 70-1/2. This rule applies even if you have 

not retired as of that date. 

ASSIGNMENT OF BENEFITS 

For the protection of you and your survivor or 

survivors, your benefits under the Plan cannot be 

assigned and are not subject to garnishment or 

attachment, except as authorized by law. This means 

that, in most cases, we cannot send your benefits to a 

creditor on your behalf. 

We may, however, be directed to pay a part of your 

benefits to your spouse, former spouse or dependent 

child under the terms of a Qualified Domestic 

Relations Order (QDRO) as described under the 

Payment Options section of this book. 

If you are getting a divorce, you should contact the 

Plan or visit the Plan’s web site for more information. 

YOUR RIGHTS UNDER ERISA 

As a participant in the Plan you are entitled to certain 

rights and protections under the Employee Retirement 

Income Security Act of 1974 (ERISA). ERISA provides 

that all plan participants shall be entitled to: 

Receive Information About Your Plan and Benefits

• Examine, without charge, at the plan 

administrator's office and at other specified 

locations, such as worksites and union halls, all 

documents governing the plan, including 

insurance contracts and collective bargaining 

agreements, and a copy of the latest annual 

report (Form 5500 Series) filed by the plan with 

the U.S. Department of Labor and available at the 

Public Disclosure Room of the Employee Benefits 

Security Administration.

• Obtain, upon written request to the plan 

administrator, copies of documents governing the 

operation of the plan, including insurance 

contracts and collective bargaining agreements, 

and copies of the latest annual report (Form 5500 

Series) and updated summary plan description. 

The administrator may make a reasonable charge 

for the copies.

• Receive an annual funding notice. The plan 

administrator is required by law to furnish each 

participant with a copy of this annual funding 

notice.

• Obtain a statement telling you whether you have a 

right to receive a pension at normal retirement age 

(age 65) and if so, what your benefits would be at 

normal retirement age if you stop working under 

the plan now. If you do not have a right to a 

pension, the statement will tell you how many 

more years you have to work to get a right to a 

pension. This statement must be requested in 

writing and is not required to be given more than 

once every twelve (12) months. The plan must 

provide the statement free of charge.

Prudent Actions by Plan Fiduciaries 

In addition to creating rights for plan participants, 

ERISA imposes duties upon the people who are 

responsible for the operation of the employee benefit 

plan. The people who operate your plan, called 

“fiduciaries” of the plan, have a duty to do so 

prudently and in the interest of you and other plan 

participants and beneficiaries. No one, including your 

employer, your union, or any other person, may fire 

you or otherwise discriminate against you in any way 

to prevent you from obtaining a pension benefit or 

exercising your rights under ERISA. 

Enforce Your Rights 

If your claim for a pension benefit is denied or 

ignored, in whole or in part, you have a right to know 

why this was done, to obtain copies of documents 

relating to the decision without charge, and to appeal 

any denial, all within certain time schedules. 

Under ERISA, there are steps you can take to 

enforce the above rights. For instance, if you request 

a copy of plan documents or the latest annual report 

from the plan and do not receive them within 30 

days, you may file suit in a Federal court. In such a 

case, the court may require the plan administrator to 

provide the materials and pay you up to $110 a day 

until you receive the materials, unless the materials 

were not sent because of reasons beyond the 

control of the administrator. If you have a claim for 

benefits which is denied or ignored, in whole or in 

36.3.31
Central States, Southeast and Southwest Areas Pension Plan 

30 

part, you may file suit in a state or Federal court. In 

addition, if you disagree with the plan's decision or 

lack thereof concerning the qualified status of a 

domestic relations order or a medical child support 

order, you may file suit in Federal court. If it should 

happen that plan fiduciaries misuse the plan's money, 

or if you are discriminated against for asserting your 

rights, you may seek assistance from the U.S. 

Department of Labor, or you may file suit in a Federal 

court. The court will decide who should pay court 

costs and legal fees. If you are successful the court 

may order the person you have sued to pay these 

costs and fees. If you lose, the court may order you to 

pay these costs and fees, for example, if it finds your 

claim is frivolous. 

Assistance with Your Questions 

If you have any questions about your plan, you should 

contact the plan administrator. If you have any 

questions about this statement or about your rights 

under ERISA, or if you need assistance in obtaining 

documents from the plan administrator, you should 

contact the nearest office of the Employee Benefits 

Security Administration, U.S. Department of Labor, 

listed in your telephone directory, or the Division of 

Technical Assistance and Inquiries, Employee 

Benefits Security Administration, U.S. Department of 

Labor, 200 Constitution Avenue N.W., Washington, 

DC 20210. You may also obtain certain publications 

about your rights and responsibilities under ERISA by 

calling the publications hotline of the Employee 

Benefits Security Administration. 

TERMINATION OF THE PLAN 

The Board of Trustees fully intends to continue the 

Plan indefinitely. To protect against any unforeseen 

situations, however, the Board of Trustees reserves 

the right to change the Plan. If necessary, the Board 

of Trustees can terminate the Plan. If it does 

become necessary to terminate the Plan, the net 

assets of the Plan will be allocated to Participants 

and beneficiaries of the Plan in the manner specified 

by ERISA and according to the Trust Agreement. 

PENSION BENEFIT GUARANTY CORPORATION 

Your pension benefits under this multiemployer plan 

are insured by the Pension Benefit Guaranty 

Corporation (PBGC), a federal insurance agency. A 

multiemployer plan is a collectively bargained 

pension arrangement involving two or more 

unrelated employers, usually in a common industry. 

Under the multiemployer plan program, the PBGC 

provides financial assistance through loans to plans 

that are insolvent. A multiemployer plan is 

considered insolvent if the plan is unable to pay 

benefits (at least equal to the PBGC's guaranteed 

benefit limit) when due. 

The maximum benefit that the PBGC guarantees is 

set by law. Under the multiemployer program, the 

PBGC guarantee 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. The PBGC's maximum guarantee limit is $35.75 

per month times a participant's years of service. For 

example, the maximum annual guarantee for a 

retiree with 30 years of service would be $12,870.00. 

The PBGC guarantee generally covers: (1) Normal 

and early retirement benefits; (2) disability benefits if 

you become disabled before the plan becomes 

insolvent; and (3) certain benefits for your survivors. 

The PBGC guarantee generally does not cover: (1) 

Benefits greater than the maximum guaranteed 

amount set by law; (2) benefit increases and new 

benefits based on plan provisions that have been in 

place for fewer than 5 years at the earlier of: (i) The 

date the plan terminates or (ii) the time the plan 

becomes insolvent; (3) benefits that are not vested 

because you have not worked long enough; (4) 

benefits for which you have not met all of the 

requirements at the time the plan becomes insolvent; 

and (5) non-pension benefits, such as health 

insurance, life insurance, certain death benefits, 

vacation pay, and severance pay. 

For more information about the PBGC and the 

benefits it guarantees, ask your plan administrator or 

contact the PBGC’s Technical Assistance Division, 

1200 K Street, N.W. Suite 930, Washington, DC 

20005-4026 or call 202-326-4000 (not a toll-free 

number). TTY/TDD users may call the federal relay 

service toll-free at 1-800-877-8339 and ask to be 

connected to 202-326-4000. Additional information 

about the PBGC's pension insurance program is 

available through the PBGC's web site on the 

Internet at http://www.pbgc.gov. 

36.3.32
Summary Plan Description Benefit Classes 1 to 14 

31 www.centralstates.org 

CLASS ACTION 

SETTLEMENT

In late 1987, a court-approved settlement was 

finalized in a class action lawsuit (Dutchak and 

Sullivan) which for many years had been pending in 

United States District Court in Chicago. Distribution 

of pension benefits based upon this settlement 

began in early 1988 and will continue until 

December 31, 2015 (and, as to monthly lifetime 

pensions based on the settlement, other than 

disability pensions, until the post-2015 death of the 

pensioner or survivor). Material terms and conditions 

of the class action settlement, insofar as it modifies 

the Plan, are summarized in the following. 

VESTED PENSION (CONTRIBUTION-BASED 

PENSION) 

This benefit was introduced in 1976 to comply with 

ERISA. For most Participants who terminated 

Participation before 1999, this benefit requires 10 

years of Vesting Service, including three (3) years 

after 1970. The settlement rolls back the clock and 

permits the 10 years of Vesting Service to occur at 

any time (except that pre-1965 Continuous 

Employment without Employer Contributions is 

disregarded). 

BREAK IN SERVICE 

The settlement also rolls back the clock in 

determining loss of Credit because of a Break in 

Service (“Break”). While the basic Break rules are 

not changed, the settlement provides that a 

Participant is entitled to the Break rule that is both 

relevant and most advantageous to his 

circumstances. The time element of a Break in 

Service is unchanged by the settlement: 

• 5 consecutive One-Year Breaks before April 

1, 1969; or 

• 3 consecutive One-Year Breaks between 

April 1, 1969 and December 31, 1975; or 

• 5 consecutive One-Year Breaks after 1975.

Regardless of the time frame of the One-Year 

Breaks, the Participant will not sustain a Break in 

Service unless and until the total of his consecutive 

One-Year Breaks equals or exceeds the total of his 

years of Vesting Service (since his latest Break in 

Service, if any). 

The Plan has long exempted service in any other 

pension plan with which the Plan has a reciprocal 

agreement from the calculation of a Break-inService; the settlement extends this exemption to 

any other “pension plan established by collective 

bargaining” of a labor organization affiliated with the 

International Brotherhood of Teamsters. Such 

service will not result in any Combined Credit, 

because of the absence of a reciprocal agreement, 

but the time of service will be disregarded for Break 

in Service purposes. 

BREAK IN SERVICE: EFFECT OF LATE FILING 

OF BENEFITS CLAIMS (“FROZEN BENEFIT 

RULE”) 

This summary also re-publishes a 1971 Plan 

interpretation which, independent of (but fully 

preserved by) the settlement, protects a Participant 

from any subsequent Break in Service (“Break”) with 

respect to certain pension benefits in which he 

already has vested rights (i.e., has satisfied 

minimum age, service, contribution and other 

eligibility prerequisites) when his Credit or Covered 

Service (Covered Employment) ends, whatever that 

date may be. Once the Participant's benefits claim 

is received by the Plan, even if it is after the time in 

which a Break would have occurred, the Break is 

disregarded and the clock is rolled back to examine 

the Participant's eligibility at the end of his Covered 

Service (Covered Employment). If he is eligible for a 

Twenty Year Service Pension, Early Retirement 

Pension, Contributory Credit Pension, or a Monthly 

Disability Benefit as of that earlier date, it is payable 

to the Participant beginning in the month after his 

Retirement Date or in the 6th month after his total 

and permanent disability begins, as the case may be 

(unless there is a suspension of benefits because of 

Restricted Reemployment). If the Participant 

sustains a total and permanent disability or dies after 

his Covered Service (Covered Employment) ends 

but before he sustains a Break, then upon proper 

application either the Monthly Disability Benefit or an 

appropriate survivor pension will be payable, 

provided that all eligibility requirements are met. 

MONTHLY DISABILITY BENEFIT 

The settlement also rolls back the clock in 

determining the commencement date for payment of 

Monthly Disability Benefits. Until 1976 the general 

commencement date - the 6th month after the total 

and permanent disability begins - was postponed 

until, if later, the 3rd month after the Plan received 

“due proof of such disability.” That “due proof” 

limitation was permanently removed in the 1976 

amendment of the Plan, which applied only to post1975 disabilities. The settlement removes the “due 

proof” limitation with respect to disabilities that 

began prior to 1976. The settlement also provides 

$10 and $15 increases in the amount of the Monthly 

Disability Benefit. 

36.3.33







GUIDE TO

YOUR PENSION PLAN

Summary Plan Description of the

Central States, Southeast and Southwest Areas

Pension Plan

For Participants in Benefit Classes 15 and Higher 

This Summary Plan Description is not intended for any Participant who is 

not retired as of January 1, 2008, and whose last Hour of Service prior to 

January 1, 2008, was earned while employed by United Parcel Service, 

Inc. (“UPS”), or for Participants under a Benefit Class lower than Benefit 

Class 15. These Participants should contact the Fund for their respective 

Summary Plan Description. 

36.4.1
Central States, Southeast and Southwest Areas Pension Plan 

 

ABOUT THIS BOOKLET...

This booklet tells you about the Central States, Southeast and Southwest Areas Pension Plan and the 

benefits you or your survivors may be eligible to receive if you are a Participant of this Plan. Great care has 

been taken to make this booklet an accurate and comprehensive information source. All information in this 

booklet, however, is subject to the terms of the actual Pension Plan document, which is the final written 

authority on all matters about the Plan. Only the Board of Trustees is authorized to interpret the Pension Plan 

and this booklet. No employer or union or any representative of any employer or union is authorized to 

interpret the Plan. 

If you are a Participant in the Pension Plan, the Plan’s web site, www.centralstates.org, will give you more 

specific information about the benefits you may have earned so far. For actively employed Participants, it will 

also calculate estimates of future benefits if you keep working for the same contributing employer.

IMPORTANTE: Este folleto contiene un sumario en ingles de sus derechos y beneficios bajo 

el Plan. Si usted tiene dificultad en entender cualquier parte de este folleto, favor de llamar a 

nuestro telefono gratis, 1-800-323-5000, si prefiere por manera de correspondencia, favor de 

enviarala a Central States, Southeast and Southwest Areas Pension Fund, P.O. Box 5109, 

Des Plaines, Illinois 60017-5109. 

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION PLAN 

is a jointly administered, defined benefit employee benefit plan. 

EXECUTIVE DIRECTOR: Thomas C. Nyhan 

ADDRESS OF ADMINISTRATIVE OFFICE: 9377 West Higgins Road 

 Rosemont, Illinois 60018-4938 

ADDRESS FOR CORRESPONDENCE: P.O. Box 5109 

 Des Plaines, IL 60017-5109 

TELEPHONE NUMBER: Toll-Free Participant Services: 1-800-323-5000

 General Administrative Office: 1-847-518-9800 

INTERNET WEB SITE: www.centralstates.org 

EMPLOYER IDENTIFICATION NUMBER: 36-6044243 

PLAN NUMBER: 001 

PLAN YEAR: January 1 through December 31 

 EMPLOYEE TRUSTEES EMPLOYER TRUSTEES

 CHARLES A. WHOBREY ARTHUR H. BUNTE, JR. 

 JERRY YOUNGER GARY F. CALDWELL 

 GEORGE J. WESTLEY RONALD DeSTEFANO 

 MARVIN KROPP GREG R. MAY 

The agent for service of legal process is Thomas C. Nyhan, Executive Director, Central States, Southeast and 

Southwest Areas Pension Fund, at the address shown above. 

36.4.2
Summary Plan Description Benefit Classes 15 and Higher 

www.centralstates.org 1 

Retirement Benefits 

Types of Benefits................................................................................................... 2 

Contribution-Based Pension.................................................................................. 2 

Contributory Credit Pension .................................................................................. 5 

Twenty-Year Service Pension............................................................................. 10 

Deferred Pension ................................................................................................ 10 

Payment Options 

With JSO Coverage............................................................................................. 11 

Without JSO Coverage........................................................................................ 11 

Qualified Domestic Relations Order (QDRO)...................................................... 12 

Before Retirement Death Benefits 

50% Surviving Spouse Benefit............................................................................ 13 

60-Month Benefit................................................................................................. 13 

Lump-Sum Death Benefit.................................................................................... 14 

Benefit Class 18/18+ $10,000 Death Benefit ...................................................... 14 

Death Benefits Before Retirement ...................................................................... 14 

Disability Benefits 

Monthly Disability Benefit .................................................................................... 15 

$500 Lump-Sum Spouse Death Benefit.............................................................. 16 

Lump-Sum Disability Benefit ............................................................................... 16 

Partial Pensions ............................................................................................................ 17 

Age 65 Retiree Prescription Drug Benefit................................................................... 18 

Reemployment after Retirement.................................................................................. 19 

Filing for Benefits ......................................................................................................... 22 

Terms and Definitions 

Becoming a Participant ....................................................................................... 24 

Employer Contributions....................................................................................... 24 

Self-Contributions................................................................................................ 24 

Contributory Credit .............................................................................................. 25 

Non-Contributory Credit ...................................................................................... 25 

Military Credit ...................................................................................................... 26 

Vesting Service ................................................................................................... 26 

Breaks in Service ................................................................................................ 27 

Benefit Class ....................................................................................................... 28 

Retirement Date .................................................................................................. 29 

Voluntary Withdrawal .......................................................................................... 29 

Rehabilitation Plan........................................................................................................ 30 

General Information 

Plan Administration ............................................................................................. 32 

Your Rights under ERISA.................................................................................... 32 

Termination of the Plan ....................................................................................... 33 

Class Action Settlement............................................................................................... 34 

Appendix........................................................................................................................ 36 

Table of Contents 

36.4.3
Central States, Southeast and Southwest Areas Pension Plan 

2 

RETIREMENT 

BENEFITS 

If you have been a Participant of this Pension Plan 

for a while, you may already be familiar with many of 

the terms that are used in the next few pages. If you 

are new to the Plan you may first want to read the 

Terms and Definitions section. That section 

explains the terms which are important to 

understanding your benefits. 

TYPES OF BENEFITS 

The Pension Plan provides 4 types of retirement 

benefits: 

• Contribution-Based Pension

• Contributory Credit Pension

• Twenty-Year Service Pension

• Deferred Pension

Each retirement benefit has its own rules. You can 

receive only one retirement benefit from this Plan. If 

you qualify for more than one benefit you will be paid 

the highest benefit to which you are entitled. 

Your retirement benefit is not subject to a Social 

Security offset. Any benefits you receive from this 

Plan are separate from and in addition to any Social 

Security benefits you may receive. 

CONTRIBUTION-BASED PENSION 

The Contribution-Based Pension is based on all 

Contributions paid on your behalf while you are a 

Participant in the Pension Plan. 

CONTRIBUTION-BASED PENSION 

REQUIREMENT 

There is only one requirement for the ContributionBased Pension. You must have at least 5 years of 

Vesting Service. If you do not have any Employer 

Contributions on or after January 1, 1999, you must 

have 10 years of Vesting Service. 

CONTRIBUTION-BASED PENSION AMOUNT 

The amount of your monthly Contribution-Based 

Pension is based on the total amount of all 

Contributions paid to the Plan on your behalf. The 

monthly benefit you earn is calculated by adding the 

following 3 amounts: 

AMOUNT 1 

Post-2003 Contributions 

The total amount of all Employer Contributions paid 

on your behalf from January 1, 2004, forward is 

multiplied by 1%. 

 

AMOUNT 2 

Contributions from 1986 through 2003 

The total amount of all Contributions paid on your 

behalf from January 1, 1986 to December 31, 2003, 

is multiplied by 2%. 

AMOUNT 3 

Contributions before 1986 

The amount earned for any pre-1986 Contributions is 

determined by a formula, based on your Benefit 

Class and Contributory Credit as of December 31, 

1985, as defined in the Pension Plan. If the last time 

you earned Contributions was before 1986, the 

Contribution-Based Pension was referred to as the 

Vested Pension. 

Your Contribution-Based Pension is the total of 

Amounts 1, 2, and 3. 

If you begin receiving your pension 

benefit payments after July 1, 2011, 

you must be at least age 57 to receive 

your pension benefit. 

IMPORTANT: If your Employer incurred a Rehabilitation Plan Withdrawal or is 

paying contributions on either the Default Schedule or a Distressed Employer 

Schedule, your pension benefits may be impacted. Please refer to the section 

entitled “Rehabilitation Plan.” 

36.4.4
Summary Plan Description Benefit Classes 15 and Higher 

www.centralstates.org 3 

Example 1: 

Phil has Contributions paid on his behalf at various rates over an 8 year period: 

 

 Amount 1: 

 2006 - 52 weeks at $214 per week = $11,128 

 2005 - 52 weeks at $190 per week = $ 9,880 

 2004 - 52 weeks at $180 per week = $ 9,360

 $30,368 x 1% = $303.68

 Amount 2: 

 2003 - 47 weeks at $166 per week = $ 7,802 

 2002 - 43 weeks at $158 per week = $ 6,794 

 2001 - 37 weeks at $158 per week = $ 5,846 

 2000 - 40 weeks at $150 per week = $ 6,000 

 1999 - 49 weeks at $136 per week = $ 6,664

 $33,106 x 2% = $662.12 

 

Amount 3: No Contributions before 1986 = $ 0.00 

 

Benefit Amount: $303.68 + $662.12 + $0.00 = $965.80

 

After 8 years of Employer Contributions to the Pension Plan, Phil has earned a Contribution-Based 

Pension of $965.80 per month, payable in full upon retirement at age 65. 

Example 2: 

Ann is hired at the beginning of 2006 and will have 20 years of Contributions paid on her behalf, all 

at the rate of $214 per week: 

 Amount 1: 

 2006 through 2025 

 52 weeks at $214 per week x 20 years x 1% = $2,225.60

 Amount 2: 

 No Contributions between 1986 and 2003 = $ 0.00 

 Amount 3: 

 No Contributions before 1986 = $ 0.00 

 

 Benefit Amount: $2,225.60 + $0.00 + $0.00 = $2,225.60

 

After 20 years of Employer Contributions to the Pension Plan, Ann has earned a ContributionBased Pension of $2,225.60 per month, payable in full upon retirement at age 62. 

CALCULATING THE CONTRIBUTION-BASED PENSION 

36.4.5



Summary Plan Description Benefit Classes 15 and Higher 

www.centralstates.org 7 

Step 1:

Joe’s years of Pre-2004 Contributory Credit are 

the number of years of Contributory Credit Joe had 

as of December 31, 2003. 

Joe’s total years of Contributory Credit are the 

number of years of Contributory Credit he had as 

of his Retirement Date. 

Joe’s Pre-2004 Contributory Credit Percentage is 

the result of dividing the first number by the 

second number. 

Example

Joe had 21 years of Contributory Credit as of December 31, 2003. He works 9 more years (2004 through 

2012) and retires with 30 years of Contributory Credit at the end of 2013, at age 61. His established 

Benefit Class is 18, and his employer’s pension Contribution rates are as indicated below: 

Step 1:

21 years as of December 31, 2003 

 

30 years of Total Contributory Credit 

21

 30 = .7000 = 70.00%

Step 2:

Multiply the Pre-2004 Contributory Credit 

Percentage by the Base Contributory Credit 

Pension which is the value taken from the chart on 

the following page that applies to Joe’s Benefit 

Class, Qualifying Age and total years of 

Contributory Credit. 

Step 3:

Joe’s Post-2003 Benefit is the total of 

Contributions paid on his behalf after December 

31, 2003, multiplied by 1%. 

The Post-2003 Benefit is 

payable in full at age 62. If 

you retire less then age 62, 

your Post-2003 Benefit will be 

reduced by the Early 

Retirement Factor (6% for 

each year under age 62). 

Since Joe is retiring at age 61, 

his Post 2003 Benefit is 

multiplied by the age 61 Early 

Retirement Factor of .94. 

Step 4: 

Simply add the amounts from Step 2 and Step 3 to 

determine the benefit amount that Joe is eligible to 

receive at age 61. 

Step 3:

2004: 260 days x $34.00 = $ 8,840.00 

 2005: 260 days x $38.80 = $ 10,088.00 

 2006: 260 days x $43.60 = $ 11,336.00 

 2007: 260 days x $48.40 = $ 12,584.00 

 2008: 260 days x $51.60 = $ 13,416.00 

 2009: 260 days x $56.00 = $ 14,560.00 

 2010: 260 days x $62.40 = $ 16,224.00 

 2011: 260 days x $68.40 = $ 17,784.00 

 2012: 260 days x $68.40 = $ 17,784.00

 Total: $122,616.00 

 $122,616.00 x 1% = $ 1,226.16 payable at age 62

 Age 61 Early Reduction Factor x .94 

 $1,152.59 payable at age 61

Step 4:

 $2,100.00 + $1,152.59 = $3,252.59 

per month

If you begin receiving your pension benefit payments after July 1, 

2011, you must be at least age 57 to receive your pension benefit. 

Step 2:

 70.00% x 3000.00 = $2,100.00

EARLY RETIREMENT 

FACTORS 

Age Factor

62+ 1.00

61 0.94

60 0.88

59 0.82

58 0.76

57 0.70

Refer to chart on 

following page 

36.4.9

Summary Plan Description Benefit Classes 15 and Higher 

www.centralstates.org 9 

CONTRIBUTORY CREDIT PENSION REMINDERS: 

• For all Contributory Credit Pension charts, you must use your Qualifying Age. Your 

Qualifying Age is the earlier of your age on your Retirement Date or your age on 

December 31 of the first year in which you have less than 10 weeks or 37 days or 300 

hours of Contributions. 

• If you begin receiving your pension benefit payments after July 1, 2011, you must be at 

least age 57 when you retire, even if you satisfy the Qualifying Age requirement for the 

Contributory Credit Pension. 

www.centralstates.org 

Remember that if you are a Participant, the easiest way to estimate the amount 

of your pension is to visit the Plan’s web site. 

If you are an Active Participant and plan on remaining with the same Employer, 

the web site also lets you project your future retirement benefit by indicating how 

many more years you plan on working and the age at which you plan to retire. 

This amount is only an estimate based on your current contribution rate and your 

reported work history. 

Please visit: www.centralstates.org

36.4.11






Central States, Southeast and Southwest Areas Pension Plan 

16 

spouse). For a Twenty-Year Service Pension or 

Contributory Credit Pension, the amount will be 

based on your age as of December 31 of the first 

year after the date you became totally and 

permanently disabled and in which you had less than 

10 weeks of Contributions; or

$1,000 Death Benefit This benefit will be paid to the 

first of the following:

• Your current spouse

• Your dependent children

• Your non-dependent children

• Your parents

• Your brothers and sisters

• Your estate

If you do not have a spouse on the date of your 

death, the only benefit payable is the $1,000 Death 

Benefit. 

Note: If you had at least 10 years of Credit and die 

before age 65 while receiving a Monthly Disability 

Benefit, the Benefit Class 18/18+ $10,000 Death 

Benefit may be payable in addition to the 50% 

Surviving Spouse Benefit if you satisfy the Benefit 

Class 18/18+ contribution requirement (as described 

in the Pension Plan). If the Benefit Class 18/18+ 

$10,000 Death Benefit is paid, then the $1,000 

Death Benefit is not payable. 

If you die while receiving a Monthly Disability Benefit 

and after reaching age 65, the $1,000 Death Benefit 

is payable to your spouse or other eligible payee as 

indicated above. 

$500 LUMP-SUM SPOUSE 

DEATH BENEFIT 

If your spouse dies while you are receiving a Monthly 

Disability Benefit, you will be paid a one-time $500 

Lump-Sum Death Benefit. 

LUMP-SUM DISABILITY BENEFIT 

The Lump-Sum Disability Benefit is a one-time 

benefit of $3,000 which may be payable instead of

the Monthly Disability Benefit. You can qualify for a 

Lump-Sum Disability Benefit if: 

• You become totally and permanently 

disabled on or after your 45th birthday, and 

before you have 3 or more One-Year 

Breaks in a row; and

• As of the date you become disabled you 

have 10 or more years of Credit.

RECOVERY FROM DISABILITY 

Please contact the Fund if you recover from your 

total and permanent disability prior to your 65th 

birthday and no longer qualify to continue receiving 

your Monthly Disability Benefit. Your eligibility for 

retirement benefits from the Plan will be determined 

by the following: 

• If you do not earn additional Contributory 

Credit but qualify for a Contribution-Based 

Pension or Deferred Pension when you 

retire, your amount will be based on your age 

on the date of your retirement. For a TwentyYear Service Pension or Contributory Credit 

Pension, the amount will be based on your 

age as of December 31 of the first year after 

the date you became totally and permanently 

disabled and in which you had less than 10 

weeks of Contributions paid on your behalf.

• If, after recovery from your disability, you 

earn at least one year of Contributory 

Service Credit but have less than 250 weeks 

of Contributions paid on your behalf, your 

retirement benefit will be determined in the 

same manner as in the preceding paragraph. 

However, if your additional contributions 

enable you to establish a higher Benefit 

Class, we will use your higher Benefit Class 

when we determine your retirement benefit.

• If, after recovery from your disability, you 

have at least 250 weeks of Contributions 

paid on your behalf, any retirement benefit 

you are eligible to receive will be determined 

as though you had never received a Monthly 

Disability Benefit.

DEATH WHILE RECEIVING A MONTHLY 

DISABILITY BENEFIT 

If you die while receiving a Monthly Disability Benefit 

and before age 65, your spouse will be entitled to 

choose between the following: 

50% Surviving Spouse Benefit based on any 

retirement benefit you were eligible to receive on the 

date of your death if you are at least age 57 when 

you die. If you are under age 57, benefit payments 

cannot begin until the month following the month in 

which you would have reached age 57. For the 

Contribution-Based Pension or a Deferred Pension, 

the benefit amount will be based on your age at the 

date of your death (or any later date chosen by your 

Note: If you recover from a total and permanent 

disability and you are eligible for any type of 

retirement benefit, payment of the retirement benefit 

cannot begin until you are at least age 57 if those 

payments begin after July 1, 2011. 

36.4.18

Central States, Southeast and Southwest Areas Pension Plan 

18 

SPECIAL PRESCRIPTION DRUG CARD 

When you become eligible for the Age 65 Retiree 

Prescription Drug Benefit you will receive a 

prescription card and an informational package 

further explaining the benefits. Be sure to keep the 

Plan informed of any address changes after you 

retire and start receiving benefits. 

COORDINATION WITH MEDICARE PART D 

PRESCRIPTION DRUG BENEFIT 

For individuals who participate in both this Plan 

and the Medicare Prescription Drug Benefit, this 

Plan will coordinate benefits on a secondary basis 

with Medicare. Maximum benefits payable by this 

Plan remain at $1,000 per person per year. 

 

Unforeseeable factors, such as inadequate 

funding or a change in the Medicare program, may 

require the Board of Trustees to modify or 

terminate the program. Future availability of the 

program is dependent on continuing Contributions 

from Employers contributing under Benefit Class 

18+. The collective bargaining agreement of the 

contributing Employer from which you retired must 

continue to provide the necessary funding for the 

Age 65 Retiree Prescription Drug Benefit. 

AGE 65 RETIREE 

PRESCRIPTION 

DRUG BENEFIT

FOR PARTICIPANTS IN BENEFIT CLASS 18+ 

ONLY 

The Pension Plan provides a special Age 65 

Prescription Drug Benefit (a Medical Benefits 

Account under Section 401(h) of the Internal 

Revenue Code) that applies only to Retirees who 

established Benefit Class 18+ and whose Employer 

pays the contribution necessary for this benefit. 

ELIGIBILITY REQUIREMENTS OF THE AGE 65 

PRESCRIPTION DRUG BENEFIT 

To receive the Age 65 Prescription Drug Benefit you 

must satisfy these requirements: 

• You must have at least 20 years of 

Contributory Credit; and

• You must qualify for a Contributory Credit 

Pension based on Benefit Class 18+; and

• At the time of your retirement your last 

Employer must be submitting Contributions 

at the Benefit Class 18+ level; and

• You must earn at least 2 weeks or 10 days of 

Class 18+ Contributions after June 1, 1999.

WHAT THE BENEFIT PROVIDES 

For eligible Benefit Class 18+ Retirees and spouses 

who are 65 or older, the Age 65 Retiree Prescription 

Drug Benefit provides: 

• a 20% co-payment by the Retiree or spouse 

at the time of prescription purchase, with the 

remaining 80% to be paid by the Pension 

Fund; and

• a maximum benefit of $1,000 per calendar 

year for the Retiree and $1,000 per 

calendar year for the spouse.

WHAT PRESCRIPTIONS ARE COVERED? 

Although most prescriptions are covered, certain 

prescriptions are not covered, such as cosmetic aids, 

dietary supplements, drugs available over-thecounter, and lifestyle-enhancing drugs (e.g. Viagra). 

Generic equivalents of brand name drugs are 

required, if available. In all cases the Health and 

Welfare Plan will determine for the Pension Plan 

which prescription drugs are covered. 

NOTE: There is no guarantee of continuing 

benefits under this this program. 

36.4.20


Summary Plan Description Benefit Classes 15 and Higher 

www.centralstates.org 21 

WHAT HAPPENS TO YOUR BENEFIT AMOUNT IF 

YOU EARN ADDITIONAL CONTRIBUTORY 

CREDIT AFTER RETIRING? 

If you return to Contributory Service after retiring, 

when you retire again your benefit amount will be 

recalculated according to the following: 

• If you earn less than one additional year of 

Contributory Credit, your benefit amount will not 

be re-calculated and when you retire again you 

will receive your original benefit.

• If you have at least one year of Contributory 

Credit but less than 250 weeks of additional 

Contributions, you will receive the benefit you 

originally received or, if higher, your 

Contribution-Based Pension based on your age 

at your original Retirement Date.

• If you have at least one (1) year of Contributory 

Credit and at least 250 weeks of additional 

Contributions in five (5) or more calendar years, 

your benefit amount will be re-calculated as 

though you had never retired. 

Note: Your Payment Option (JSO) can be changed 

only if you return to work and have at least 250 

additional weeks of Contributions paid on your 

behalf. 

36.4.23
Central States, Southeast and Southwest Areas Pension Plan 

22 

• your benefit amount payable based on 

your Retirement Date is less than the 

benefit amount payable based on the 

date that the Fund receives your written 

notice of your retirement; and

• you elect JSO coverage.

For purposes of electing JSO coverage, you must be 

married to the same person on both your retroactive 

Retirement Date and the date that your application is 

approved. 

VERIFYING ELIGIBILITY BEFORE YOU RETIRE 

You can verify if you are eligible for benefits before 

your planned Retirement Date by using the Plan’s 

web site. Alternatively, you can write the Plan a letter 

asking for confirmation of your status. Be sure to 

include your 9-digit member identification number, 

name, address, birth date, employment history and 

local union number(s). We will tell you how much 

credit you have earned so far and let you know if you 

are eligible for benefits. If we need any information 

from you, we will let you know. 

WHAT TO DO IF YOUR CLAIM IS DENIED 

The Plan has an appeals procedure you may follow if 

all or part of your claim is denied. You must go 

through the appeals procedure before starting any 

legal action. The appeals procedure involves the 

following: 

• A review of your claim by the Benefits Claim 

Appeals Committee. 

• If you disagree with the decision you 

received, you may request a review of your 

claim by the Trustee Appellate Review 

Committee. If you choose, you may make a 

personal presentation of your appeal at their 

next available regularly scheduled meeting.

These Committees will act according to the following: 

• If you do not meet the eligibility requirements, 

your claim will be denied. A decision to deny 

a claim for benefits is based on the eligibility 

rules of the Plan and all available verified 

information.

• If all or part of your claim is denied, you will 

be notified of the decision by mail. The letter 

will state why your claim was denied and will 

reference the section(s) of the Plan used in 

determining the reason for that denial.

FILING FOR BENEFITS

To receive benefits you must file an application. You 

can get an application for benefits at your local union 

office, by writing to the Plan, or through the Plan’s 

web site. If at all possible, do not retire before your 

eligibility for benefits has been confirmed. You 

should file your application for retirement benefits 

several months before you want to retire. Do not, 

however, complete and send your JSO election form 

until you are within 180 days of your Retirement 

Date. 

For a disability benefit, file an application for benefits 

as soon as possible after you become disabled. 

An application for any death benefit should be filed 

as soon as possible after your death. 

WHAT INFORMATION SHOULD YOU INCLUDE 

WITH AN APPLICATION? 

The information included with an application is 

different for each benefit. The information needed is 

stated on each application form. 

If your benefits are required to be divided as a result 

of a divorce, you should submit a copy of your 

divorce decree and a Qualified Domestic Relations 

Order which defines the terms of the distribution. 

Please refer to the Plan’s web site for further 

information. 

12-MONTH PAYMENT LIMIT 

The Plan will pay no more than 12 months of 

retroactive retirement or survivor benefit payments

when benefits begin. The 12-month payment limit 

does not apply to the Monthly Disability Benefit. 

If you elect a retroactive Retirement Date, then your 

spouse must consent to your retroactive Retirement 

Date (by signing a form sent by the Plan) if both of 

the following apply: 

You must terminate your employment and receive all 

compensation from an employer that contributes to the 

Plan on or before your Retirement Date. If you are 

working for a non-contributing employer, you must also 

terminate your employment and receive all 

compensation unless you have received written 

notification from the Plan that your employment is not 

disqualifying Restricted Reemployment.

36.4.24
Summary Plan Description Benefit Classes 15 and Higher 

www.centralstates.org 23 

• The letter will also tell you what additional 

information you need to submit for your claim 

to be considered further. It is your 

responsibility to get additional information and 

verification needed to support your claim.

SOME THINGS TO KNOW ABOUT THE 

APPEALS PROCESS 

• You must use the appeal forms supplied by the 

Plan. Failure to do so may delay the processing 

of your appeal. You may write the Plan to 

request an appeal form, or print one from the 

Plan’s web site.

• You must submit your appeal within 180 days 

after you receive the Plan’s notice of denial.

• Typically, your appeal will be heard by the 

Benefits Claim Appeals Committee within 30 

days of receipt by the Plan. You may waive this 

limit in order to allow the Plan more time to 

conduct research or for you to provide additional 

information.

• Typically, your request for a review by the 

Trustee Appellate Review Committee will be 

heard within 90 days.

• Failure to provide information necessary to 

decide your claim will automatically extend the 

period allowed for appellate review.

Misrepresentation of Facts: 

If you omit information, or furnish false or 

misleading information to the Plan, the Board 

of Trustees can take measures, including legal 

action, to recover any benefits you are not 

eligible to receive.

36.4.25
Central States, Southeast and Southwest Areas Pension Plan 

24 

TERMS AND 

DEFINITIONS

BECOMING A PARTICIPANT 

To earn a benefit from the Pension Plan, you must 

first become a Participant by working for an 

Employer that submits Contributions to the Plan on 

your behalf. You become a Participant if you have at 

least 20 weekly, 75 daily, or 600 hourly Contributions 

paid on your behalf within the first 12 months of your 

employment, or in any calendar year after that. 

Becoming a Participant does not necessarily mean 

you will qualify for benefits. To qualify for benefits, 

you must earn a minimum amount of Vesting 

Service. To keep the Vesting Service you earn, you 

must remain a Participant to avoid having what is 

called a Break in Service. 

EMPLOYER CONTRIBUTIONS

Benefits are funded by Employer Contributions to the 

Pension Plan. The amount of Contributions your 

Employer submits on your behalf is specified by your 

collective bargaining agreement. No portion of your 

union dues is submitted to the Plan. 

SELF-CONTRIBUTIONS 

In some cases you can submit a limited amount of 

Contributions to the Plan on your own behalf. These 

voluntary, optional Contributions are called SelfContributions. You can submit Self-Contributions 

only for periods of absence before January 1, 1994,

and only for periods of sick leave (because of illness 

or injury), layoff, strike or approved leave of absence 

during which you remained on your Employer’s 

seniority list. You might want to submit SelfContributions to avoid a One-Year Break or a Break 

in Service, to earn additional Contributory Credit, or 

to earn Vesting Service. You will be allowed to 

submit a limited amount of Self-Contributions if: 

• You submit enough Self-Contributions so 

that you have at least 20 weeks, 75 days, or 

600 hours of Contributions in the calendar 

year for which the Self-Contributions are 

submitted, and 

• You submit Self-Contributions at the same 

rates your Employer was required to pay 

under your collective bargaining agreement; 

and 

• You follow the Plan’s procedures for 

submitting Self-Contributions, including the 

payment of interest from the earliest date of 

the period of the Self-Contributions to the 

date you submit them. (The interest rate you 

pay is the same rate charged to Employers 

that do not pay their Contributions on a 

timely basis.)

In the event of your death, your spouse can submit 

Self-Contributions for your periods of absence which 

precede your date of death, following the same rules 

listed above. 

If you decide to submit Self-Contributions, write to 

the Plan at the address listed at the beginning of this 

booklet. Be sure to include your 9-digit member 

identification number, list the time period for which 

you would like to submit Self-Contributions, and 

provide the reason for and documentation of your 

absence. Be prepared to provide proof of your 

employment status during that absence. You will be 

sent information about the total cost of your SelfContributions, including interest, and instructions 

regarding payment. In general, Self-Contributions 

are not refundable. If, however, you submit SelfContributions and ultimately do not qualify for any 

benefit from the Plan, you may write and request that 

your Self-Contributions be returned. Any refund to 

which you are entitled will include interest 

compounded annually. 

SELF-CONTRIBUTION RESTRICTION

With the exceptions noted below, Self-Contributions 

submitted for periods before January 1, 1994, will not 

be counted for any Contributory Credit Pension 

under Benefit Classes 17A, 17B, 18, or 18+. This 

means that if you rely on pre-1994 Self-Contributions 

to become eligible for a benefit, your benefit amount 

will be based on a Benefit Class no higher than 16 

even though you may have established a higher 

Benefit Class. 

Caution 

You cannot be a Participant if you are a manager, 

supervisor, business partner, sole proprietor, or 

business owner with supervisory authority, or if you 

are self-employed. 

Remember... 

You can submit Self-Contributions only for periods 

before 1994 and only if you remained on the 

Employer’s seniority list during your absence. 

36.4.26
Summary Plan Description Benefit Classes 15 and Higher 

www.centralstates.org 25 

NON-CONTRIBUTORY CREDIT

Non-Contributory Credit (also known as NonContributory Service Credit) may be important to 

you, but only if you retire with less than 20 years of 

Contributory Credit and if you became a Participant 

before April 1, 1985. Non-Contributory Credit is 

Credit you may earn from any Teamster or 

Teamster-like employment you had before you 

became a Participant. You may earn NonContributory Credit if your employment was in one of 

these categories: 

• Your work was covered by a Teamster 

collective bargaining agreement; or

• Your work was not covered by a 

Teamster collective bargaining 

agreement, but your job classification in 

your industry was normally covered by 

Teamster bargaining agreements in the 

same local metropolitan area during the 

period of your employment; or

• Your work eventually became covered by 

a collective bargaining agreement 

requiring Employer Contributions on your 

behalf, even though Contributions were 

not required at the start of your 

employment (This category may apply 

even if you became a Participant on or 

after April 1, 1985.); or

• Your work required usual Teamster skills 

in a traditional Teamster industry (such 

as driving a truck or loading a truck).

You earn Non-Contributory Credit according to the 

number of hours worked per year. For 1,000 or more 

hours of employment in a calendar year, one year of 

credit is granted. One-half year of credit is granted 

for 500-999 hours of employment. No credit is 

granted for less than 500 hours of employment in a 

year. 

Non-Contributory Credit may help you establish 20 

years of total Credit for the Twenty-Year Service 

Pension, or to enable you to receive an unreduced 

Contribution-Based Pension at age 62, rather than 

age 65. Non-Contributory Credit cannot be used, 

however, to establish eligibility for the Contributory 

Credit Pension. 

EXCEPTIONS TO THE RESTRICTION

You may count a limited number of SelfContributions for periods prior to January 1, 1994 

toward a Contributory Credit Pension under Benefit 

Classes 17A, 17B, 18 or 18+ if they were paid for a 

period of illness or injury: 

• You can count up to 6 weekly or 30 daily 

Self-Contributions for a sick leave for a 

non-work related illness or injury.

• You can count up to a maximum of 1 year 

of Contributory Credit based on SelfContributions if you were receiving 

Workers Compensation benefit payments 

during the absence.

CONTRIBUTORY CREDIT

Contributory Credit (also known as Contributory 

Service Credit) is Credit you earn from the 

Contributions paid on your behalf by your Employer 

(or Self-Contributions you may have been allowed to 

submit). You earn Contributory Credit on a calendar 

year basis according to the following: 

All Weekly rates before 1976 

0-19 weeks No Credit 

20-34 weeks 0.500 year credit 

35 or more weeks 1.00 year credit 

All Weekly rates after 1975 

0-19 weeks No credit 

20-39 weeks Weeks / 40 

40 or more weeks 1.000 year credit 

All Daily rates before 1985 (Casual) 

0-89 days No Credit 

90-179 days Days / 180 

180 or more days 1.000 year credit 

All Daily rates after 1984 

0-74 days No credit 

75-179 days Days / 180 

180 or more days 1.000 year credit 

0-599 hours No credit 

600-1,199 hours Hours / 1,200 

1,200 or more hours 1.000 year credit 

All Hourly Rates 

Examples:

For 148 days of Contributions in 2001, your Contributory 

Credit would be 0.822 (148 divided by 180). 

For 37 weeks of Contributions in 1998, your Contributory 

Credit would be 0.925 (37 divided by 40). 

Note: You can earn Non-Contributory Credit only 

up to the amount of your Contributory Credit. (No 

more than one-half of your total Credit can be 

Non-Contributory Credit.) 

36.4.27
Central States, Southeast and Southwest Areas Pension Plan 

26 

MILITARY CREDIT 

Under certain conditions you may earn Military Credit 

for your active duty in the Armed Forces of the 

United States. You may earn up to 5 years of Military 

Credit that counts as Contributory Credit if all of the 

following conditions are met: 

a) You entered the Armed Forces of the United 

States while working for an Employer that 

was making Contributions to the Plan, or 

started making Contributions to the Plan 

while you were in the Armed Forces; and

b) You would have had Employer 

Contributions paid to the Plan on your 

behalf had you not entered the Armed 

Forces; and

c) After your service in the Armed Forces, you 

promptly (within 90 days) applied to return 

to work with the same Employer that 

employed you when your service began. 

 

If your service in the Armed Forces does not qualify 

as Contributory Credit, it may possibly qualify as 

Non-Contributory Credit. 

VESTING SERVICE 

Vesting establishes a right to a benefit from the Plan. 

When you become Vested, you cannot lose your 

right to a benefit. But if you leave the Plan before you 

are Vested, the number of years of Vesting Service 

you have determines whether you can have a Break 

in Service - which causes you to lose all Credit you 

have already earned. To become Vested, you must 

first earn Vesting Service. 

HOW VESTING SERVICE IS EARNED 

You earn one year of Vesting Service for each 

calendar year during which you have at least 20 

weeks, 75 days (90 days before 1985), or 600 hours 

of Contributions paid on your behalf. 

HOW YOU BECOME VESTED 

You become Vested once you have: 

• 5 years of Vesting Service (if you have any 

Employer Contributions after December 31, 

1998); or

• 10 years of Vesting Service (if you do not 

have any Employer Contributions after 

December 31, 1998)

Being Vested entitles you to receive, at a minimum, 

the Contribution-Based Pension upon retirement. 

In some cases, you can also earn Vesting Service 

for employment without Contributions if it is 

Continuous Employment. Continuous Employment is 

uninterrupted employment with the same contributing 

Employer, either immediately before or immediately 

after Contributions were paid to the Plan on your 

behalf, and while Contributions are made for other 

employees of that Employer. One year of Vesting 

Service is earned for each calendar year during 

which you had 900 or more hours of Continuous 

Employment. To explain Continuous Employment, 

here is an example: 

Example: 

Jack works for 4 years as a truck driver. Jack has at 

least 20 weeks of Contributions paid on his behalf 

each year by his Employer. Jack, therefore, has 

earned 4 years of Vesting Service. 

Beginning with his 5th year of employment, Jack 

gets promoted to management and Contributions 

are no longer required to be paid to the Plan for him. 

Jack stays in management for 1 year and then quits. 

The year Jack spent in management is counted as 

Vesting Service because his promotion was directly 

from the bargaining unit and, while Jack was in 

management, his Employer still paid Contributions to 

the Plan for the other drivers who were not 

promoted. 

Jack, therefore, has 5 years of Vesting Service - but 

the amount of his Contribution-Based Pension would 

be based only on the 4 years of Contributions paid 

to the Plan. 

This Participant will become Vested after 20 weeks 

of Contributions are paid on his behalf in 2015. 

Year Weeks 

Paid 

Vesting 

Service 

2015 20 1 year 

2014 40 1 year 

2013 23 1 year 

2012 52 1 year 

2011 48 1 year 

2010 17 0 year 

 5 years 

Example 

36.4.28


Summary Plan Description Benefit Classes 15 and Higher 

www.centralstates.org 29 

• If your Benefit Class as of December 31, 2003, was 

based on the Average Rate, your Benefit Class will 

continue to be based on the Average Rate. If you 

changed bargaining units after December 31, 2003, 

or if the most recent Employer Rate no longer applies 

to you, your Benefit Class will also be based on the 

Average Rate. 

Using the Average Rate, your Benefit Class is allowed 

to increase, but it is limited to the highest Benefit Class 

you earned on or before December 31, 2003. 

RETIREMENT DATE 

Your Retirement Date is the date you stop working in 

Covered Service, receive all compensation due you 

from your Employer, and terminate your employment. 

A Participant eligible for a retirement pension may 

receive benefit payments on the 1st day of the month 

following his Retirement Date. 

At the time of retirement, both you and your Employer 

will need to complete a Retirement Declaration Form 

verifying your last day worked. The Retirement 

Declaration Form must be completed and returned to 

the Fund before any benefits can be paid by the Fund. 

VOLUNTARY WITHDRAWAL 

A Voluntary Withdrawal is serious because it can result 

in the loss of all Non-Contributory Credit you may have 

been eligible to receive, and possibly the loss of 

additional benefits as described below. 

If you are not yet Vested, you can also eventually lose 

your Contributory Credit unless you again become a 

Participant before having a Break in Service. 

A Voluntary Withdrawal occurs if your Employer stops 

submitting Contributions to the Plan on your behalf for 

either of these reasons: 

• Your employee group decertifies from or 

removes your local union as its 

bargaining representative; or

• Your employee group ratifies or accepts a 

collective bargaining agreement which no 

longer requires your Employer to 

continue making Contributions to the Plan 

on behalf of you and the other members 

of your employee group.

What happens because of a Voluntary Withdrawal? 

If you are a member of an employee group involved in 

a Voluntary Withdrawal, you will permanently lose all 

Non-Contributory Credit. You can avoid the loss of your 

Non-Contributory Credit only if you stop working for 

that Employer before the last day of the 6th calendar 

month following the date of the Voluntary Withdrawal, 

or if the employee group again becomes covered by a 

collective bargaining agreement requiring Contributions 

to the Plan before the last day of the 18th calendar 

month following the date of the Voluntary Withdrawal. 

A Voluntary Withdrawal may also cause the loss of 

additional benefits. A Voluntary Withdrawal may also 

be considered a Rehabilitation Plan Withdrawal. If 

your last Contributing Employer to the Central States 

Pension Fund incurs a Rehabilitation Plan Withdrawal, 

your “Adjustable Benefits” will be eliminated. 

Further information can be found in the next 

section: REHABILITATION PLAN. 

Note: You can still increase your Benefit Class 

for purposes of a Twenty-Year Service Pension 

or a Deferred Pension. 

36.4.31
Central States, Southeast and Southwest Areas Pension Plan 

30 

REHABILITATION PLAN 

Under the terms of the Pension Protection Act of 2006 

(“PPA”), a pension plan is required to adopt a 

Rehabilitation Plan if the pension plan is in critical 

status as defined under the PPA. The Pension Fund 

was certified to be in critical status and established a 

Rehabilitation Plan in 2008 and updates have been 

made since that time. 

The Rehabilitation Plan offers two schedules of 

benefits that bargaining parties (your employer and 

local union) can negotiate to continue participation in 

the Pension Fund. In addition, the Rehabilitation Plan 

also addresses the impact of the withdrawal of a 

Contributing Employer from the Fund. 

First, let’s look at the Rehabilitation Plan Schedules 

and then at Rehabilitation Plan Withdrawals. The 

full Rehabilitation Plan is available in the Pension Plan 

Document (Appendix M) which can be found on the 

Fund’s web site or obtained by calling the Fund. 

Rehabilitation Plan Schedules 

Under the Rehabilitation Plan, the bargaining parties 

can choose either the Primary or Default Schedule: 

• The Primary Schedule allows Participants to 

retain their eligibility for the benefits that they 

were previously eligible to receive. 

• The Default Schedule results in the loss of 

Adjustable Benefits (described in the section 

entitled “Adjustable Benefits”). 

The Default Schedule is applied when the bargaining 

parties agree to the Default Schedule, or when the 

bargaining parties fail to reach an agreement on a 

schedule within 180 days after the expiration of the 

collective bargaining agreement. 

Under the Default Schedule, a Participant remains 

eligible only for the Contribution-Based Pension 

payable in full at age 65 or to an actuarially equivalent 

benefit with a minimum retirement age of 57 — see the 

“Actuarial Equivalence Table.” 

A Participant becomes subject to the Default Schedule 

and the loss of Adjustable Benefits if the Participant’s 

benefit commencement date is on or after April 8, 

2008, and: 

(1) the Participant has earned Contributory 

Service Credit with a Contributing Employer 

(or predecessor / successor entity) that at any 

time becomes subject to the Default 

Schedule; and 

(2) the Participant’s last year of Contributory 

Service Credit prior to the Employer becoming 

subject to the Default Schedule was earned 

while a member of a Bargaining Unit (or 

predecessor / successor Bargaining Unit) that 

ultimately became subject to the Default 

Schedule. 

A Participant whose benefit commencement date is 

one year or more prior to the Contributing Employer 

becoming subject to the Default Schedule is not 

subject to the elimination of Adjustable Benefits 

provided that the Pensioner does not engage in 

Restricted Reemployment at any time subsequent to 

the benefit commencement date. 

A third schedule, the Distressed Employer Schedule, is 

explained in the “Special Rules” section. 

Rehabilitation Plan Withdrawals

A Rehabilitation Plan Withdrawal (“RPW”) occurs on 

the date a Contributing Employer: 

(1) is no longer required to make Employer 

Contributions to the Pension Fund under 

one or more of its Collective Bargaining 

Agreements; 

(2) undergoes a significant reduction in its 

obligation to make Employer Contributions 

resulting from outsourcing or subcontracting 

work covered by the applicable Collective 

Bargaining Agreement(s) as a result of 

actions by members of a Bargaining Unit 

(or its representatives) or the Contributing 

Employer; 

(3) is administratively terminated with respect 

to any or all of its Collective Bargaining 

Agreements due to (a) a violation of the 

Plan’s rules with respect to the terms of a 

Collective Bargaining Agreement; or (b) any 

other violation of the Plan’s rules; or 

(4) any transaction where all or a portion of the 

operations for which the Contributing 

Employer has an obligation to contribute 

are continued in whole or in part without 

maintaining the obligation to contribute to 

the Plan. In certain circumstances, the 

Trustees may decline to apply the 

elimination of adjustable benefits to a 

Participant that has submitted a retirement 

application and named a Retirement Date 

prior to the effective date of the RPW. 

An RPW results in the loss of Adjustable Benefits. 

Under an RPW, a Participant remains eligible for only 

the Contribution-Based Pension payable in full for 

retirement at age 65 or to an actuarially equivalent 

benefit with a minimum retirement age of 57 — see the 

Actuarial Equivalence Table. 

36.4.32

Central States, Southeast and Southwest Areas Pension Plan 

32 

GENERAL 

INFORMATION

PLAN ADMINISTRATION 

The Board of Trustees makes the rules and 

regulations to administer the Plan. The Plan gives the 

Board of Trustees the discretionary and final authority 

in making all decisions, including decisions on claims 

for benefits and decisions interpreting Plan documents 

of the Fund. By amendment, the Board of Trustees 

may change the terms, conditions or benefits of the 

Plan. Only the Trustees can make a final decision 

regarding any question, interpretation or application of 

any part of the Plan. 

REQUIRED BEGINNING DATE OF YOUR BENEFITS 

If you were born on or after July 1, 1917, we will begin 

paying you any benefits you are entitled to receive 

from the Plan no later than April 1 of the year 

immediately following the calendar year in which you 

reach age 70-1/2. This rule applies even if you have 

not retired as of that date. 

ASSIGNMENT OF BENEFITS 

For the protection of you and your survivor or 

survivors, your benefits under the Plan cannot be 

assigned and are not subject to garnishment or 

attachment, except as authorized by law. This means 

that, in most cases, we cannot send your benefits to a 

creditor on your behalf. 

We may, however, be directed to pay a part of your 

benefits to your spouse, former spouse or dependent 

child under the terms of a Qualified Domestic 

Relations Order (QDRO) as described under the 

Payment Options section of this book. 

If you are getting a divorce, you should contact the 

Plan or visit the Plan’s web site for more information. 

YOUR RIGHTS UNDER ERISA 

As a participant in the Plan you are entitled to certain 

rights and protections under the Employee Retirement 

Income Security Act of 1974 (ERISA). ERISA provides 

that all plan participants shall be entitled to: 

Receive Information About Your Plan and Benefits

• Examine, without charge, at the plan 

administrator's office and at other specified 

locations, such as worksites and union halls, all 

documents governing the plan, including 

insurance contracts and collective bargaining 

agreements, and a copy of the latest annual report 

(Form 5500 Series) filed by the plan with the U.S. 

Department of Labor and available at the Public 

Disclosure Room of the Employee Benefits 

Security Administration.

• Obtain, upon written request to the plan 

administrator, copies of documents governing the 

operation of the plan, including insurance 

contracts and collective bargaining agreements, 

and copies of the latest annual report (Form 5500 

Series) and updated summary plan description. 

The administrator may make a reasonable charge 

for the copies.

• Receive an annual funding notice. The plan 

administrator is required by law to furnish each 

participant with a copy of this annual funding 

notice.

• Obtain a statement telling you whether you have a 

right to receive a pension at normal retirement age 

(age 65) and if so, what your benefits would be at 

normal retirement age if you stop working under 

the plan now. If you do not have a right to a 

pension, the statement will tell you how many 

more years you have to work to get a right to a 

pension. This statement must be requested in 

writing and is not required to be given more than 

once every twelve (12) months. The plan must 

provide the statement free of charge.

Prudent Actions by Plan Fiduciaries 

In addition to creating rights for plan participants, 

ERISA imposes duties upon the people who are 

responsible for the operation of the employee benefit 

plan. The people who operate your plan, called 

“fiduciaries” of the plan, have a duty to do so 

prudently and in the interest of you and other plan 

participants and beneficiaries. No one, including your 

employer, your union, or any other person, may fire 

you or otherwise discriminate against you in any way 

to prevent you from obtaining a pension benefit or 

exercising your rights under ERISA. 

Enforce Your Rights 

If your claim for a pension benefit is denied or 

ignored, in whole or in part, you have a right to know 

why this was done, to obtain copies of documents 

relating to the decision without charge, and to appeal 

any denial, all within certain time schedules. 

Under ERISA, there are steps you can take to 

enforce the above rights. For instance, if you request 

a copy of plan documents or the latest annual report 

from the plan and do not receive them within 30 days, 

you may file suit in a Federal court. In such a case, 

the court may require the plan administrator to 

provide the materials and pay you up to $110 a day 

until you receive the materials, unless the materials 

were not sent because of reasons beyond the control 

of the administrator. If you have a claim for benefits 

which is denied or ignored, in whole or in part, you 

may file suit in a state or Federal court. In addition, if 

you disagree with the plan's decision or lack thereof 

36.4.34
Summary Plan Description Benefit Classes 15 and Higher 

www.centralstates.org 33 

concerning the qualified status of a domestic relations 

order or a medical child support order, you may file 

suit in Federal court. If it should happen that plan 

fiduciaries misuse the plan's money, or if you are 

discriminated against for asserting your rights, you 

may seek assistance from the U.S. Department of 

Labor, or you may file suit in a Federal court. The 

court will decide who should pay court costs and legal 

fees. If you are successful the court may order the 

person you have sued to pay these costs and fees. If 

you lose, the court may order you to pay these costs 

and fees, for example, if it finds your claim is frivolous. 

Assistance with Your Questions 

If you have any questions about your plan, you should 

contact the plan administrator. If you have any 

questions about this statement or about your rights 

under ERISA, or if you need assistance in obtaining 

documents from the plan administrator, you should 

contact the nearest office of the Employee Benefits 

Security Administration, U.S. Department of Labor, 

listed in your telephone directory, or the Division of 

Technical Assistance and Inquiries, Employee 

Benefits Security Administration, U.S. Department of 

Labor, 200 Constitution Avenue N.W., Washington, 

DC 20210. You may also obtain certain publications 

about your rights and responsibilities under ERISA by 

calling the publications hotline of the Employee 

Benefits Security Administration. 

TERMINATION OF THE PLAN 

The Board of Trustees fully intends to continue the 

Plan indefinitely. To protect against any unforeseen 

situations, however, the Board of Trustees reserves 

the right to change the Plan. If necessary, the Board 

of Trustees can terminate the Plan. If it does become 

necessary to terminate the Plan, the net assets of 

the Plan will be allocated to Participants and 

beneficiaries of the Plan in the manner specified by 

ERISA and according to the Trust Agreement. 

PENSION BENEFIT GUARANTY CORPORATION 

Your pension benefits under this multiemployer plan 

are insured by the Pension Benefit Guaranty 

Corporation (PBGC), a federal insurance agency. A 

multiemployer plan is a collectively bargained 

pension arrangement involving two or more 

unrelated employers, usually in a common industry. 

Under the multiemployer plan program, the PBGC 

provides financial assistance through loans to plans 

that are insolvent. A multiemployer plan is 

considered insolvent if the plan is unable to pay 

benefits (at least equal to the PBGC's guaranteed 

benefit limit) when due. 

The maximum benefit that the PBGC guarantees is 

set by law. Under the multiemployer program, the 

PBGC guarantee 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. The PBGC's maximum guarantee limit is $35.75 

per month times a participant's years of service. For 

example, the maximum annual guarantee for a 

retiree with 30 years of service would be $12,870.00. 

The PBGC guarantee generally covers: (1) Normal 

and early retirement benefits; (2) disability benefits if 

you become disabled before the plan becomes 

insolvent; and (3) certain benefits for your survivors. 

The PBGC guarantee generally does not cover: (1) 

Benefits greater than the maximum guaranteed 

amount set by law; (2) benefit increases and new 

benefits based on plan provisions that have been in 

place for fewer than 5 years at the earlier of: (i) The 

date the plan terminates or (ii) the time the plan 

becomes insolvent; (3) benefits that are not vested 

because you have not worked long enough; (4) 

benefits for which you have not met all of the 

requirements at the time the plan becomes insolvent; 

and (5) non-pension benefits, such as health 

insurance, life insurance, certain death benefits, 

vacation pay, and severance pay. 

For more information about the PBGC and the 

benefits it guarantees, ask your plan administrator or 

contact the PBGC’s Technical Assistance Division, 

1200 K Street, N.W. Suite 930, Washington, DC 

20005-4026 or call 202-326-4000 (not a toll-free 

number). TTY/TDD users may call the federal relay 

service toll-free at 1-800-877-8339 and ask to be 

connected to 202-326-4000. Additional information 

about the PBGC's pension insurance program is 

available through the PBGC's web site on the 

Internet at http://www.pbgc.gov. 

36.4.35
Central States, Southeast and Southwest Areas Pension Plan 

34 

CLASS ACTION 

SETTLEMENT

In late 1987, a court-approved settlement was 

finalized in a class action lawsuit (Dutchak and 

Sullivan) which for many years had been pending in 

United States District Court in Chicago. Distribution 

of pension benefits based upon this settlement 

began in early 1988 and will continue until December 

31, 2015 (and, as to monthly lifetime pensions based 

on the settlement, other than disability pensions, until 

the post-2015 death of the pensioner or survivor). 

Material terms and conditions of the class action 

settlement, insofar as it modifies the Plan, are 

summarized in the following. 

VESTED PENSION (CONTRIBUTION-BASED 

PENSION) 

This benefit was introduced in 1976 to comply with 

ERISA. For most Participants who terminated 

Participation before 1999, this benefit requires 10 

years of Vesting Service, including three (3) years 

after 1970. The settlement rolls back the clock and 

permits the 10 years of Vesting Service to occur at 

any time (except that pre-1965 Continuous 

Employment without Employer Contributions is 

disregarded). 

BREAK IN SERVICE 

The settlement also rolls back the clock in 

determining loss of Credit because of a Break in 

Service (“Break”). While the basic Break rules are 

not changed, the settlement provides that a 

Participant is entitled to the Break rule that is both 

relevant and most advantageous to his 

circumstances. The time element of a Break in 

Service is unchanged by the settlement: 

• 5 consecutive One-Year Breaks before April 

1, 1969; or 

• 3 consecutive One-Year Breaks between 

April 1, 1969 and December 31, 1975; or 

• 5 consecutive One-Year Breaks after 1975.

Regardless of the time frame of the One-Year 

Breaks, the Participant will not sustain a Break in 

Service unless and until the total of his consecutive 

One-Year Breaks equals or exceeds the total of his 

years of Vesting Service (since his latest Break in 

Service, if any). 

The Plan has long exempted service in any other 

pension plan with which the Plan has a reciprocal 

agreement from the calculation of a Break-inService; the settlement extends this exemption to 

any other “pension plan established by collective 

bargaining” of a labor organization affiliated with the 

International Brotherhood of Teamsters. Such 

service will not result in any Combined Credit, 

because of the absence of a reciprocal agreement, 

but the time of service will be disregarded for Break 

in Service purposes. 

BREAK IN SERVICE: EFFECT OF LATE FILING 

OF BENEFITS CLAIMS (“FROZEN BENEFIT 

RULE”) 

This summary also re-publishes a 1971 Plan 

interpretation which, independent of (but fully 

preserved by) the settlement, protects a Participant 

from any subsequent Break in Service (“Break”) with 

respect to certain pension benefits in which he 

already has vested rights (i.e., has satisfied 

minimum age, service, contribution and other 

eligibility prerequisites) when his Credit or Covered 

Service (Covered Employment) ends, whatever that 

date may be. Once the Participant's benefits claim is 

received by the Plan, even if it is after the time in 

which a Break would have occurred, the Break is 

disregarded and the clock is rolled back to examine 

the Participant's eligibility at the end of his Covered 

Service (Covered Employment). If he is eligible for a 

Twenty Year Service Pension, Early Retirement 

Pension, Contributory Credit Pension, or a Monthly 

Disability Benefit as of that earlier date, it is payable 

to the Participant beginning in the month after his 

Retirement Date or in the 6th month after his total 

and permanent disability begins, as the case may be 

(unless there is a suspension of benefits because of 

Restricted Reemployment). If the Participant 

sustains a total and permanent disability or dies after 

his Covered Service (Covered Employment) ends 

but before he sustains a Break, then upon proper 

application either the Monthly Disability Benefit or an 

appropriate survivor pension will be payable, 

provided that all eligibility requirements are met. 

MONTHLY DISABILITY BENEFIT 

The settlement also rolls back the clock in 

determining the commencement date for payment of 

Monthly Disability Benefits. Until 1976 the general 

commencement date - the 6th month after the total 

and permanent disability begins - was postponed 

until, if later, the 3rd month after the Plan received 

“due proof of such disability.” That “due proof” 

limitation was permanently removed in the 1976 

amendment of the Plan, which applied only to post1975 disabilities. The settlement removes the “due 

proof” limitation with respect to disabilities that began 

prior to 1976. The settlement also provides $10 and 

$15 increases in the amount of the Monthly Disability 

Benefit. 

36.4.36






Summary Plan Description Benefit Classes 15 and Higher 

 Online help... 

If you are a Participant in the Plan, you can visit the Plan’s web site to obtain an estimate of the 

retirement benefit you may have earned so far. 

www.centralstates.org

The information in this booklet reflects all Plan amendments through October 1, 2012. 

Amendments enacted after that date may impact the information in this booklet. 

IMPORTANTE: Este folleto contiene un sumario en ingles de sus derechos y beneficios bajo el Plan. 

Si usted tiene dificultad en entender cualquier parte de este folleto, favor de llamar a nuestro telefono 

gratis, 1-800-323-5000, si prefiere por manera de correspondencia, favor de enviarala a Central States, 

Southeast and Southwest Areas Pension Fund, P.O. Box 5109, Des Plaines, Illinois 60017-5109. 

This Summary Plan Description is not intended for any Participant who is not retired 

as of January 1, 2008, and whose last Hour of Service prior to January 1, 2008, was 

earned while employed by United Parcel Service, Inc. (“UPS”), or for Participants 

under a Benefit Class lower than Benefit Class 15. These Participants should 

contact the Fund for their respective Summary Plan Description. 

QUESTIONS? 

If you have any questions which you feel are not fully answered by this booklet, you should call us toll-free at 

1-800-323-5000. Our Participant Services Department will make every effort to provide you with accurate and 

complete information. As noted above, however, only the Fund’s Board of Trustees has the authority to make final 

decisions about the Pension Plan and this booklet. Alternatively, you may write to: 

Central States, Southeast and 

Southwest Areas Pension Fund 

P.O. Box 5109 

Des Plaines, IL 60017-5109 

Please provide your 9-digit member identification number whenever you call or write. 

36.4.43

GUIDE TO

YOUR PENSION PLAN

Summary Plan Description of the

Central States, Southeast and Southwest Areas

Pension Plan

This Summary Plan Description is intended only for 

Central States Pension Plan participants whose last 

Hour of Service prior to January 1, 2008, was earned 

while employed by United Parcel Service, Inc. (“UPS”) 

and who were not pensioners as of December 31, 2007. 

36.5.1
Central States, Southeast and Southwest Areas Pension Plan 

IMPORTANTE: Este folleto contiene un sumario en ingles de sus derechos y beneficios bajo 

el Plan. Si usted tiene dificultad en entender cualquier parte de este folleto, favor de llamar a 

nuestro telefono gratis, 1-800-323-5000, si prefiere por manera de correspondencia, favor de 

enviarala a Central States, Southeast and Southwest Areas Pension Fund, P.O. Box 5109, 

Des Plaines, Illinois 60017-5109. 

ABOUT THIS BOOKLET...

This booklet tells you about the Central States, Southeast and Southwest Areas Pension Plan (Central States 

Pension Plan) and the benefits you or your survivors may be eligible to receive if you are a Participant of this Central 

States Pension Plan. Great care has been taken to make this booklet an accurate and comprehensive information 

source. All information in this booklet, however, is subject to the terms of the actual Central States Pension Plan 

document, which is the final written authority on all matters about the Central States Pension Plan. Only the Board of 

Trustees is authorized to interpret the Central States Pension Plan and this booklet. No employer or union or any 

representative of any employer or union is authorized to interpret the Central States Pension Plan. 

Additional information, as well as the full Central States Pension Plan document, can also be found on our web site: 

www.centralstates.org 

QUESTIONS? 

If you have any questions which you feel are not fully answered by this booklet, you should call us toll-free at 

1-800-323-5000. Our Participant Services Department will make every effort to provide you with accurate and 

complete information. As noted above, however, only the Central States Pension Plan’s Board of Trustees has the 

authority to make final decisions about the Central States Pension Plan and this booklet. Or you may write to: 

 

 Central States, Southeast and 

 Southwest Areas Pension Fund 

 P.O. Box 5109 

 Des Plaines, IL 60017-5109 

Please provide your 9-digit member identification number whenever you call or write. 

This booklet does not address the benefits provided by the UPS/IBT Full-Time Employee Pension Plan (UPS/

IBT Plan). For information on the UPS/IBT Plan, please contact: 

UPS/IBT Full-Time Employee Pension Plan 

55 Glenlake Parkway, NE 

Atlanta, GA 30328 

(800) 643-4442 

E-mail: retirementdept@ups.com 

Website: www.ibtupspensionfund.ups.com 

This Summary Plan Description is intended only for Central States Pension Plan 

participants whose last Hour of Service prior to January 1, 2008, was earned while 

employed by United Parcel Service, Inc. (“UPS”) and who were not pensioners as 

of December 31, 2007.

36.5.2
Summary Plan Description 

www.centralstates.org 1 

Filing for Benefits....................................................................................... 2 

Retirement Benefit 

Contribution-Based Pension............................................................. 3

Payment Options 

With JSO Coverage.......................................................................... 4

Without JSO Coverage..................................................................... 4 

What is a QDRO............................................................................... 5

Terms and Definitions 

Becoming a Participant..................................................................... 6

Employer Contributions .................................................................... 6

Self-Contributions............................................................................. 6

Contributory Credit ........................................................................... 7

Military Credit.................................................................................... 7

Vesting Service................................................................................. 7

Breaks in Service.............................................................................. 8 

Rehabilitation Plan..................................................................................... 9 

Class Action Settlement ............................................................................ 9

Appeals Procedures................................................................................. 11

General Information 

Plan Administration......................................................................... 12

Your Rights Under ERISA .............................................................. 12

Termination of the Plan .................................................................. 13

Table of Contents 

CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND 

is a jointly administered, defined benefit employee benefit plan. 

EXECUTIVE DIRECTOR: Thomas C. Nyhan 

ADDRESS OF ADMINISTRATIVE OFFICE: 9377 West Higgins Road 

 Rosemont, Illinois 60018 

ADDRESS FOR CORRESPONDENCE: P.O. Box 5109 

 Des Plaines, IL 60017-5109 

TELEPHONE NUMBER: Toll-Free Participant Services: 1-800-323-5000

 General Administrative Office: 1-847-518-9800 

 

INTERNET WEB SITE: www.centralstates.org 

EMPLOYER IDENTIFICATION NUMBER: 36-6044243 

PLAN NUMBER: 001 

PLAN YEAR: January 1 through December 31 

 EMPLOYEE TRUSTEES EMPLOYER TRUSTEES

 

 CHARLES A. WHOBREY ARTHUR H. BUNTE, JR. 

 JERRY YOUNGER GARY F. CALDWELL 

 GEORGE J. WESTLEY RONALD DeSTEFANO 

 MARVIN KROPP GREG R. MAY 

The agent for service of legal process is Thomas C. Nyhan, Executive Director, Central States, Southeast and 

Southwest Areas Pension Fund, at the administrative office address shown above. 

36.5.3

Summary Plan Description 

www.centralstates.org 3 

RETIREMENT 

BENEFIT 

The Central States Pension Plan works together with 

the UPS/IBT Plan to provide you a total retirement 

benefit based on your years of service in both plans. 

While these plans work together to provide you with 

a complete benefit, this booklet addresses the 

benefit payments from the Central States Pension 

Plan only. 

All pre-age 65 benefits for UPS employees retiring 

after December 31, 2007, will be determined and 

paid by the UPS/IBT Plan. When you reach age 65 

(the Normal Retirement Date under both plans), 

Central States will begin paying you the lesser of the 

benefit paid by the UPS/IBT Plan or your 

Contribution-Based Pension (Accrued Benefit) that 

you earned with Central States Pension Plan as of 

December 31, 2007. Additional benefits may also be 

due from the UPS/IBT Plan, and if so, they will be 

paid separately by that plan. 

Your retirement benefit from Central States is not 

subject to a Social Security offset and is separate 

from any benefits you are eligible for from the Social 

Security Administration.

CONTRIBUTION-BASED PENSION 

(ACCRUED BENEFIT) 

The Contribution-Based Pension is based on all 

Contributions paid on your behalf while you were a 

Participant in the Central States Pension Plan. 

CONTRIBUTION-BASED PENSION 

REQUIREMENT 

You must have at least 5 years of Vesting Service. If 

you do not have Employer Contributions on or after 

January 1, 1999, you must have 10 years of Vesting 

Service. 

CONTRIBUTION-BASED PENSION AMOUNT 

The amount of your monthly Contribution-Based 

Pension is based on the total amount of all 

Contributions paid to the Plan on your behalf. The 

monthly benefit you earn is calculated by adding the 

following 3 amounts: 

AMOUNT 1 

Post-2003 Contributions 

The total amount of all Contributions paid on 

your behalf from January 1, 2004 through 

December 31, 2007, is multiplied by 1%. 

AMOUNT 2 

Contributions from 1986 through 2003 

The total amount of all Contributions paid on 

your behalf from January 1, 1986 to 

December 31, 2003, is multiplied by 2%. 

AMOUNT 3 

Contributions before 1986 

The amount earned for any pre-1986 

Contributions is determined by a formula, 

based on your Benefit Class and Contributory 

Credit as of December 31, 1985, as defined in 

the Pension Plan. If the last time you earned 

contributions was before 1986, the 

Contribution-Based Pension was referred to 

as the Vested Pension. 

Your Contribution-Based Pension is the total of 

Amounts 1, 2, and 3. 

WHEN IS THE BENEFIT PAYABLE FROM THE 

CENTRAL STATES PENSION PLAN? 

The benefit is payable at age 65 or your retirement 

date, whichever is later. 

36.5.5
Central States, Southeast and Southwest Areas Pension Plan 

4 

WHAT HAPPENS AFTER A DIVORCE? 

If you go through a divorce after you have begun 

receiving benefit payments with JSO coverage in 

effect, your benefit reduction will remain in effect and 

the spouse from whom you are divorced will remain 

eligible to receive the elected JSO spousal benefit 

after your death - unless she or he signs a written 

waiver of any right to any interest in the JSO coverage. 

To be effective, the waiver must be incorporated into a 

court approved property settlement agreement that is 

part of a judgment or order entered by a court of 

competent jurisdiction. Upon receiving the judgment or 

order, the Plan will restore your benefit to the amount 

you would have received if JSO coverage had not 

been elected. The restoration will go into effect on the 

first of the month following the month in which the 

judgment or order is entered by the court. 

WITHOUT JSO COVERAGE 

When you retire and you and your spouse decide 

against JSO coverage (or if you are not married when 

you retire), whether a death benefit is payable 

depends on the type of retirement benefit you were 

eligible to receive. 

If you retired with less than 20 years of Credit or if you 

had 20 or more years of Credit but qualified only for a 

Contribution-Based Pension, no death benefits of any 

kind are payable when you die. 

If you qualified for a for a Twenty-Year Service 

Pension, Deferred Pension, or Contributory Credit 

Pension (even if you received a Contribution-Based 

Pension because the amount may have been 

greater), one of the following will apply upon your 

death: 

• If you are married and die before you receive 60 

monthly benefit payments from either or both 

plans, your surviving spouse will receive the 

balance of the first 60 payments in the same 

amount you were receiving. 

• If you are not married and die before you receive 

60 monthly benefit payments from either or both 

plans, a $1,000 Lump-Sum Death Benefit will be 

paid to the first of the following: 

• Your dependent children 

• Your non-dependent children 

• Your parents 

• Your brothers and sisters 

• Your estate 

• If you die after receiving 60 or more monthly 

benefit payments from either or both plans, no 

death benefits of any kind are payable when you 

die. 

PAYMENT OPTIONS

The payment option you and your spouse choose with 

the UPS/IBT Plan affects the amount of your monthly 

retirement benefit, and also what, if any, benefits may 

be available to your spouse after your death. 

If you are married, you and your spouse must decide 

whether to take your benefits under one of the Joint 

and Surviving Spouse Options (we will call them JSO

for the remainder of this booklet). You cannot receive 

any benefits until you and your spouse make this 

decision in writing. 

The decision you and your spouse make regarding 

JSO coverage must be in writing on the election form 

provided by the UPS/IBT Plan, which you file with your 

application for benefits with that Plan. 

WITH JSO COVERAGE 

The JSO provides your spouse with a lifetime benefit if 

you die first. To help cover the cost of providing your 

spouse with a lifetime survivor benefit, the monthly 

retirement benefit you receive is reduced using an 

adjustment factor based on your age and your 

spouse’s age when you retire. Then, after your death, 

your spouse will receive either 50% or 75% of your 

reduced benefit as her or his lifetime benefit. 

Your spouse’s benefit begins on the first day of the 

month after your death. Your spouse can remarry after 

your death and continue to receive the monthly 

benefit. 

If you begin receiving retirement benefits with JSO 

coverage, are later divorced or widowed, and then 

remarry - your new spouse will not be eligible for any 

benefits when you die. 

HOW MUCH IS MY BENEFIT REDUCED? 

With JSO coverage, your monthly retirement benefit is 

reduced using the UPS/IBT Plan’s adjustment factor 

which applies to you and your spouse. 

WHAT IF YOUR SPOUSE DIES FIRST? 

If your spouse dies before you and you send the UPS/

IBT Plan a copy of the death certificate, your benefit 

will be “restored” to the amount you would have 

received if, when you retired, you and your spouse had 

decided against JSO coverage. The increase in your 

benefit goes into effect the month after your spouse's 

death. 

36.5.6
Summary Plan Description 

www.centralstates.org 5 

WHAT IS A QDRO? 

A Qualified Domestic Relations Order (“QDRO”) is a 

legal order issued as part of a divorce or legal 

separation which assigns a portion of your retirement 

benefit to an “Alternate Payee” (defined as your 

spouse, former spouse, minor child or other 

dependent). The legal order must be a Domestic 

Relations Order (or “DRO”) which is defined as a 

judgment, decree or order (including the approval of 

a property settlement agreement) that (i) relates to 

the provision of child support, alimony payments, or 

marital property rights of an Alternate Payee, and (ii) 

is made pursuant to a State domestic relations law. 

A DRO does not automatically require the Central 

States Pension Plan to create or recognize an 

Alternate Payee’s right to retirement benefits; to do 

this, the DRO must be determined to be “qualified.” It 

is important to note that the Central States Pension 

Plan will not write your QDRO; this must be done by 

you or your attorney. To assist you in this process, 

the Central States Pension Plan and UPS/IBT Plan 

have prepared a joint model QDRO and QDRO 

Procedures which describe how your retirement 

benefits can be divided. 

Importantly, on an after January 1, 2008, the Central 

States Pension Plan will honor any QDRO which is 

approved by the UPS/IBT Plan. QDROs received 

and approved by the Central States Pension Plan 

before 2008 will be deemed to apply to the UPS/IBT 

Plan in a manner which is identical to the order 

which was submitted to and approved by the Central 

States Pension Plan, and they will be administered in 

a manner consistent with administrative procedures 

adopted by both plans. 

To obtain a benefit estimate, or a copy of the model 

QDRO and QDRO Procedures, you may go to the 

online link identified below or submit a written 

request to: 

UPS/IBT Full-Time Employee Pension Plan 

55 Glenlake Parkway, NE 

Atlanta, GA 30328 

Phone: (800) 643-4442 

E-mail: retirementdept@ups.com 

Website: www.ibtupspensionfund.ups.com 

(Model QDRO’s are available on the website) 

In the same way that payment of all or a portion of 

your retirement benefit will be coordinated between 

the two plans (with pre-age 65 payments being made 

by the UPS/IBT Plan and post-age 65 payments 

being made by both plans, as applicable), so will the 

Alternate Payee’s. This means that the division of 

your retirement benefit can be a little complicated, 

but the joint model QDRO and QDRO Procedures 

will guide you and your attorney through the process. 

36.5.7



Summary Plan Description 

www.centralstates.org 9 

CLASS ACTION 

SETTLEMENT

In late 1987, a court-approved settlement was 

finalized in a class action lawsuit (Dutchak and 

Sullivan) which for many years had been pending in 

United States District Court in Chicago. Distribution of 

pension benefits based upon this settlement began in 

early 1988 and will continue until December 31, 2015 

(and, as to monthly lifetime pensions based on the 

settlement, other than disability pensions, until the 

post-2015 death of the pensioner or survivor). 

Material terms and conditions of the class action 

settlement, insofar as it modifies the Plan, are 

summarized in the following. 

VESTED PENSION (CONTRIBUTORY-BASED 

PENSION) 

This benefit was introduced in 1976 to comply with 

ERISA. For most Participants who terminated 

Participation before 1999, this benefit requires 10 

years of Vesting Service, including 3 after 1970. The 

settlement rolls back the clock and permits the 10 

years of Vesting Service to occur at any time (except 

that pre-1965 Continuous Employment without 

Employer Contributions is disregarded). 

BREAK IN SERVICE 

The settlement also rolls back the clock in 

determining loss of Credit because of a Break in 

Service (“Break”). While the basic Break rules are not 

changed, the settlement provides that a Participant is 

entitled to the Break rule that is both relevant and 

most advantageous to his circumstances. The time 

element of a Break in Service is unchanged by the 

settlement: 

• 5 consecutive One-Year Breaks before April 1, 

1969; or 

• 3 consecutive One-Year Breaks between April 

1, 1969 and December 31, 1975; or 

• 5 consecutive One-Year Breaks after 1975.

Regardless of the time frame of the One-Year 

Breaks, the Participant will not sustain a Break in 

Service unless and until the total of his consecutive 

One-Year Breaks equals or exceeds the total of his 

years of Vesting Service (since his latest Break in 

Service, if any). 

REHABILITATION PLAN 

Under the terms of the Pension Protection Act of 

2006 (“PPA”), a pension plan is required to adopt a 

Rehabilitation Plan if the pension plan is in critical 

status as defined under the PPA. The Central States 

Pension Plan was certified to be in critical status and 

established a Rehabilitation Plan in 2008 and 

updates have been made since that time. 

Under the Rehabilitation Plan, any participant whose 

last Hour of Service prior to January 1, 2008, was 

earned while employed by United Parcel Service, Inc. 

(“UPS”), or any trades or businesses under common 

control with UPS, shall not be entitled to Adjustable 

Benefits unless such participant’s benefit 

commencement date was prior to January 1, 2008. 

Further, such participant’s benefits are subject to the 

UPS-CSPF Agreement that transferred certain 

benefit obligations to UPS. 

ADJUSTABLE BENEFITS 

The term “Adjustable Benefits” includes, but is not 

limited to, the following benefits: 

(1) A Retirement Pension Benefit prior to age 65 

including: the Twenty Year Service Pension, 

Contributory Credit Pension; Vested Pension; 

Deferred Pension; or Twenty-Year Deferred 

Pension; 

(2) Early retirement benefit or retirement-type 

subsidies including: the Early Retirement 

Pension; 25-And-Out Pension; or 30-And-Out 

Pension; 

(3) All Disability Benefits not yet in pay status; 

(4) Before Retirement Death Benefits other than 

the 50% surviving spouse benefit; 

(5) Post-retirement death benefits that are not 

part of the annuity form of payment; 

(6) All Partial Pensions to the extent any such 

pension is tied to one or more of the 

Adjustable Benefits listed above; and 

(7) All Contribution-Based Pensions payable 

prior to age 65. 

The full Central States Rehabilitation Plan is 

available in the Central States Pension Plan 

Document (Appendix M) which can be found on the 

Plan’s web site or obtained by calling the Plan. 

36.5.11
Central States, Southeast and Southwest Areas Pension Plan 

10 

The Plan has long exempted service in any other 

pension plan with which the Plan has a reciprocal 

agreement from the calculation of a Break-in-Service; 

the settlement extends this exemption to any other 

“pension plan established by collective bargaining” of 

a labor organization affiliated with the International 

Brotherhood of Teamsters. Such service will not 

result in any Combined Credit, because of the 

absence of a reciprocal agreement, but the time of 

service will be disregarded for Break in Service 

purposes. 

BREAK IN SERVICE: EFFECT OF LATE FILING 

BENEFITS CLAIMS (“FROZEN BENEFIT RULE”) 

This summary also re-publishes a 1971 Plan 

interpretation which, independent of (but fully 

preserved by) the settlement, protects a Participant 

from any subsequent Break in Service (“Break”) with 

respect to certain pension benefits in which he 

already has vested rights (i.e., has satisfied minimum 

age, service, contribution and other eligibility 

prerequisites) when his Credit or Covered Service 

(Covered Employment) ends, whatever that date may 

be. Once the Participant's benefits claim is received 

by the Plan, even if it is after the time in which a 

Break would have occurred, the Break is 

disregarded and the clock is rolled back to examine 

the Participant's eligibility at the end of his Covered 

Service (Covered Employment). If he is eligible for a 

Twenty Year Service Pension, Early Retirement 

Pension, Contributory Credit Pension, or a Monthly 

Disability Benefit as of that earlier date, it is payable to 

the Participant beginning in the month after his 

Retirement Date or in the 6th month after his total and 

permanent disability begins, as the case may be 

(unless there is a suspension of benefits because of 

Restricted Reemployment). If the Participant sustains 

a total and permanent disability or dies after his 

Covered Service (Covered Employment) ends but 

before he sustains a Break, then upon proper 

application either the Monthly Disability Benefit or an 

appropriate survivor pension will be payable, provided 

that all eligibility requirements are met. 

SPECIAL HARDSHIP APPEAL COMMITTEE 

The settlement establishes a Special Hardship Appeal 

Committee of Trustees, which supplements the 

administrative appeal procedures of the Plan and 

which is responsible for reviewing appeals and 

granting benefits in cases in which the Trustees 

determine both that substantial justice warrants 

deviation from specific eligibility criteria of the Plan 

and that one of the following circumstances has been 

shown: 

• the Participant demonstrates that his failure to 

become eligible for a particular pension 

benefit is the result of either written 

misinformation from a Plan employee or 

inadequate or tardy dissemination of 

Information about the Plan's terms and 

conditions of benefit eligibility or about his 

particular eligibility status; or

• the Participant demonstrates that (a) he is 

entitled to at least 20 years of Credit on or 

after his 47th birthday (Credited Service), (b) 

his Covered Service (Covered Employment) 

ended prior to his 50th birthday, and (c) he 

demonstrated confusion as to the application 

of Plan rules to his circumstances by his 

reasonably contemporaneous application for 

benefits.

MISCELLANEOUS SETTLEMENT FEATURES 

The previously summarized terms and conditions of 

the class action settlement are amplified by a number 

of additional features. All of the following provisions 

apply only to settlement-based pension payments, i.e. 

the benefit amount that is based solely and entirely on 

the settlement: 

Retroactivity 

The periods of settlement-based pension payments 

are retroactive as well as prospective, as if the 

settlement was in effect all along, rolling back the 

payment clock to the first date on which the 

Participant (if the settlement had been in effect) could 

have begun to receive settlement-based pension 

benefits. 

Waiver of Late Filing 

The general limitation of 12 months of retroactive 

pension payments if a Participant or other claimant 

fails to file his benefits claim in a timely fashion is 

waived for all settlement-based pension benefits. The 

Plan will honor valid settlement-based claims until 

December 31, 2015, and will make full retroactive 

payments to the extent appropriate in the 

circumstances. 

Payment for Periods of Non-Retirement 

The general provisions of the Plan which prohibit 

retirement pension payments during employment prior 

to retirement and during re-employment after 

retirement are inapplicable, insofar as retroactive 

settlement-based pension benefits are concerned, if 

and to the extent an eligible Participant demonstrates 

that such employment or reemployment was the result 

of a refusal or denial by the Plan to grant eligibility. 

36.5.12
Summary Plan Description 

www.centralstates.org 11 

Interest on Retroactive Payments 

To the extent settlement-based pension payments are 

retroactive (i.e., are based upon a date prior to the 

actual payment), the Plan will also pay simple interest, 

from the retroactive date to the actual payment date, 

at a 6% annual interest rate (there is no interest 

accrual after February 15, 1988, on settlement claims 

received after that date). 

Payments to Heirs and Estates 

Recognizing that many Participants and survivors 

entitled to settlement-based pension payments would 

be deceased when the court-approved settlement was 

finalized (in late 1987), the settlement provides that 

“[a]ny payment which would have been made to a 

deceased claimant under the provisions hereof were it 

not for the claimant's death, shall be payable to the 

estate of such deceased claimant or to such of his 

heirs as may be determined by the Plan.” The Plan 

has established procedures to verify that settlement 

benefits based upon decedents' rights are distributed 

in accordance with last wills and state intestate 

property inheritance laws. 

APPEALS PROCESS 

WHAT TO DO IF YOUR CENTRAL STATES CLAIM 

IS DENIED 

The Plan has an appeals procedure you may follow if 

all or part of your claim is denied by the Central States 

Pension Plan. You must go through the appeals 

procedure before starting any legal action. The 

appeals procedure involves the following: 

• A review of your claim by the Benefits Claim 

Appeals Committee; and, if you disagree with the 

decision you received, you may request,

• A review of your claim by the Trustee Appellate 

Review Committee. If you choose, you may 

make a personal presentation of your appeal at 

their next available regularly scheduled meeting.

These Committees will act according to the following: 

• If you do not meet the eligibility requirements, 

your claim will be denied. A decision to deny a 

claim for benefits is based on the eligibility rules 

of the Plan and all available verified information. 

• If all or part of your claim is denied, you will be 

notified of the decision by mail. The letter will 

state why your claim was denied and will 

reference the section(s) of the Plan which were 

the reason for that denial. 

• The letter will also tell you what additional 

information may be needed for your claim to be 

considered further. It is your responsibility to get 

additional information and verification needed to 

support your claim. 

SOME THINGS TO KNOW ABOUT THE APPEALS 

PROCESS: 

• You must use the appeal forms supplied by the 

Plan. Failure to do so may delay the 

processing of your appeal. You may write the 

Plan to request an appeal form, or print one 

from the Plan’s web site. 

• You must submit your appeal within 180 days 

after you receive the Plan’s notice of denial. 

• Typically, your appeal will be heard by the 

Benefits Claim Appeals Committee within 30 

days of the Plan’s receipt. You may waive this 

limit in order to allow the Plan more time to 

conduct research or for you to provide additional 

information. 

• Typically, your request for a review by the 

Trustee Appellate Review Committee will be 

heard within 90 days. 

• Failure to provide information necessary to 

decide your claim will automatically extend the 

periods allowed for appellate review. 

36.5.13
Central States, Southeast and Southwest Areas Pension Plan 

12 

GENERAL 

INFORMATION

PLAN ADMINISTRATION 

The Board of Trustees makes the rules and 

regulations to administer the Plan. The Plan gives the 

Board of Trustees the discretionary and final authority 

in making all decisions, including decisions on claims 

for benefits and decisions interpreting plan 

documents of the Plan. By amendment, the Board of 

Trustees may change the terms, conditions or 

benefits of the Plan. Only the Trustees can make a 

final decision regarding any question, interpretation or 

application of any part of the Plan. 

REQUIRED BEGINNING DATE OF YOUR 

BENEFITS 

If you were born on or after July 1, 1917, we will 

begin paying you any benefits you are entitled to 

receive from the Plan no later than April 1 of the year 

immediately following the calendar year in which you 

reach age 70-1/2. This rule applies even if you have 

not retired as of that date. 

ASSIGNMENT OF BENEFITS 

For the protection of you and your survivor or 

survivors, your benefits under the Plan cannot be 

assigned and are not subject to garnishment or 

attachment, except as authorized by law. This means 

that, in most cases, we cannot send your benefits to 

a creditor on your behalf. 

We may, however, be directed to pay a part of your 

benefits to your spouse, former spouse or dependent 

child under the terms of a Qualified Domestic 

Relations Order, (QDRO), as described under the 

Payment Options section of this booklet. 

If you are getting a divorce, you should contact the 

UPS/IBT Plan. 

YOUR RIGHTS UNDER ERISA 

As a participant in the Plan you are entitled to certain 

rights and protections under the Employee 

Retirement Income Security Act of 1974 (ERISA). 

ERISA provides that all plan participants are entitled 

to: 

Receive Information About Your Plan and Benefits:

• Examine, without charge, at the plan 

administrator's office and at other specified 

locations, such as worksites and union halls, all 

documents governing the plan, including 

insurance contracts and collective bargaining 

agreements, and a copy of the latest annual 

report (Form 5500 Series) filed by the plan with 

the U.S. Department of Labor and available at 

the Public Disclosure Room of the Employee 

Benefits Security Administration.

• Obtain, upon written request to the plan 

administrator, copies of documents governing the 

operation of the plan, including insurance 

contracts and collective bargaining agreements, 

and copies of the latest annual report (Form 5500 

Series) and updated summary plan description. 

The administrator may make a reasonable 

charge for the copies.

• Receive an annual funding notice. The plan 

administrator is required by law to furnish each 

participant with a copy of this annual funding 

notice.

• Obtain a statement telling you whether you have 

a right to receive a pension at normal retirement 

age (age 65) and if so, what your benefits would 

be at normal retirement age if you stop working 

under the plan now. If you do not have a right to 

a pension, the statement will tell you how many 

more years you have to work to get a right to a 

pension. This statement must be requested in 

writing and is not required to be given more than 

once every twelve (12) months. The plan must 

provide the statement free of charge.

Prudent actions by Plan Fiduciaries 

In addition to creating rights for plan participants, 

ERISA imposes duties upon the people who are 

responsible for the operation of the employee benefit 

plan. The people who operate your plan, called 

“fiduciaries” of the plan, have a duty to do so 

prudently and in the interest of you and other plan 

participants and beneficiaries. No one, including your 

employer, your union, or any other person, may fire 

you or otherwise discriminate against you in any way 

to prevent you from obtaining a pension benefit or 

exercising your rights under ERISA. 

Enforce Your Rights 

If your claim for a pension benefit is denied or 

ignored, in whole or in part, you have a right to know 

why this was done, to obtain copies of documents 

relating to the decision without charge, and to appeal 

any denial, all within certain time schedules. 

Under ERISA, there are steps you can take to 

enforce the above rights. For instance, if you request 

a copy of plan documents or the latest annual report 

from the plan and do not receive them within 30 days, 

you may file suit in a Federal court. In such a case, 

the court may require the plan administrator to 

provide the materials and pay you up to $110 a day 

until you receive the materials, unless the materials 

were not sent because of reasons beyond the control 

of the administrator. If you have a claim for benefits 

36.5.14
Summary Plan Description 

www.centralstates.org 13 

which is denied or ignored, in whole or in part, you 

may file suit in a state or Federal court. In addition, if 

you disagree with the plan's decision or lack thereof 

concerning the qualified status of a domestic relations 

order or a medical child support order, you may file 

suit in Federal court. If it should happen that plan 

fiduciaries misuse the plan's money, or if you are 

discriminated against for asserting your rights, you 

may seek assistance from the U.S. Department of 

Labor, or you may file suit in a Federal court. The 

court will decide who should pay court costs and legal 

fees. If you are successful the court may order the 

person you have sued to pay these costs and fees. If 

you lose, the court may order you to pay these costs 

and fees, for example, if it finds your claim is 

frivolous. 

Assistance with Your Questions 

If you have any questions about your plan, you 

should contact the plan administrator. If you have any 

questions about this statement or about your rights 

under ERISA, or if you need assistance in obtaining 

documents from the plan administrator, you should 

contact the nearest office of the Employee Benefits 

Security Administration, U.S. Department of Labor, 

listed in your telephone directory, or the Division of 

Technical Assistance and Inquiries, Employee 

Benefits Security Administration, U.S. Department of 

Labor, 200 Constitution Avenue N.W., Washington, 

DC 20210. You may also obtain certain publications 

about your rights and responsibilities under ERISA by 

calling the publications hotline of the Employee 

Benefits Security Administration. 

TERMINATION OF THE PLAN 

The Board of Trustees fully intends to continue the 

Plan indefinitely. To protect against any unforeseen 

situations, however, the Board of Trustees reserves 

the right to change the Plan. If necessary, the Board 

of Trustees can terminate the Plan, as well. If it does 

become necessary to terminate the Plan, the net 

assets of the Plan will be allocated to Participants 

and beneficiaries of the Plan in the manner specified 

by ERISA and according to the Trust Agreement. 

PENSION BENEFIT GUARANTY CORPORATION 

Your pension benefits under this multiemployer plan 

are insured by the Pension Benefit Guaranty 

Corporation (PBGC), a federal insurance agency. A 

multiemployer plan is a collectively bargained 

pension arrangement involving two or more unrelated 

employers, usually in a common industry. 

Under the multiemployer plan program, the PBGC 

provides financial assistance through loans to plans 

that are insolvent. A multiemployer plan is considered 

insolvent if the plan is unable to pay benefits (at least 

equal to the PBGC's guaranteed benefit limit) when 

due. 

The maximum benefit that the PBGC guarantees is 

set by law. Under the multiemployer program, the 

PBGC guarantee 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. The PBGC's maximum guarantee limit is $35.75 

per month times a participant's years of service. For 

example, the maximum annual guarantee for a retiree 

with 30 years of service would be $12,870.00. 

The PBGC guarantee generally covers: (1) Normal 

and early retirement benefits; (2) disability benefits if 

you become disabled before the plan becomes 

insolvent; and (3) certain benefits for your survivors. 

The PBGC guarantee generally does not cover: 

(1) Benefits greater than the maximum guaranteed 

amount set by law; (2) benefit increases and new 

benefits based on plan provisions that have been in 

place for fewer than 5 years at the earlier of: (i) The 

date the plan terminates or (ii) the time the plan 

becomes insolvent; (3) benefits that are not vested 

because you have not worked long enough; (4) 

benefits for which you have not met all of the 

requirements at the time the plan becomes insolvent; 

and (5) non-pension benefits, such as health 

insurance, life insurance, certain death benefits, 

vacation pay, and severance pay. 

For more information about the PBGC and the 

benefits it guarantees, ask your plan administrator or 

contact the PBGC’s Technical Assistance Division, 

1200 K Street, N.W. Suite 930, Washington, DC 

20005-4026 or call 202-326-4000 (not a toll-free 

number). TTY/TDD users may call the federal relay 

service toll-free at 1-800-877-8339 and ask to be 

connected to 202-326-4000. Additional information 

about the PBGC's pension insurance program is 

available through the PBGC's web site on the Internet 

at http://www.pbgc.gov. 

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