APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

II. REHABILITATION PLAN

Since the Fund was certified on July 27, 2011 by its actuary as being in “Critical Status” as de-
fined by the PPA, the Fund’s Board of Trustees was required under the PPA to develop a “Reha-
bilitation Plan,” which was to be designed to improve the financial condition of the Fund over
time in accordance with standards set forth in the PPA. In order to comply with this statutory
mandate, the Board of Trustees of the Fund adopted a Rehabilitation Plan, which was effective
May 1, 2012.

Under the PPA, the Rehabilitation Plan had to include one (1) or more schedules showing re-
vised benefit structures, revised contributions, or both, which, if adopted by the Board of Trus-
tees and agreed upon by the bargaining parties, would reasonably be expected to enable the Fund
to emerge from Critical Status by the end of the Fund’s rehabilitation period, or where that is not
reasonable, to emerge from Critical Status at a later time.

The PPA also provides that one of the Rehabilitation Plan’s schedules of benefits and contribu-
tions had to be designated as being the “default” schedule. Under the PPA, the default schedule
had to consist of (i) the reduction of all future benefit accruals to the extent permitted by law, (ii)
the elimination of all adjustable benefits and, to the extent necessary, (iii) an increase in contri-
bution rates, which, taken together, are projected to allow the Fund to emerge from Critical Sta-
tus by the end of the Fund’s rehabilitation period.

Consistent with these standards, the Board of Trustees adopted the following schedules for the
Rehabilitation Plan:

1. DEFAULT SCHEDULE

Under the Default Schedule, since under Section 432(e)(5) of the Internal Revenue Code benefit
accruals under the Default Schedule may not be reduced below a monthly benefit payable as a
single life annuity commencing at Normal Retirement Age equal to one (1%) percent of the con-
tributions required to made on behalf of a Participant, or, the accrual applicable to the Participant
on the first day of the initial critical Plan Year, the Default Schedule does not contain any reduc-
tion or elimination of benefits, but only contains an increase in the hourly contribution rate.

The changes described in the Default Schedule will be implemented upon the earlier of:

a. the effective date of a collective bargaining agreement that adopts a contribution
schedule that contains terms consistent with this Default Schedule, or

b. 180 days after the expiration date of a collective bargaining agreement providing
for contributions under the Plan that was in effect on March 25, 2011, if by such
date the Bargaining Parties have failed to adopt a contribution schedule that con-
tains terms consistent with this Default Schedule, the Preferred Schedule or the
Alternative Schedule.

CM94:00204


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

termined as if those non-collectively participants were covered under such employer's first to ex-
pire collective bargaining agreement that was in effect when the Plan entered critical status.

Annual Standards and Updating of Rehabilitation Plan
Pursuant to the PPA, the Plan has adopted the following procedures:

The Plan's actuary shall conduct an annual review of the Rehabilitation Plan and the schedules
thereto.

The Plan's actuary shall report to the Trustees the results of its annual review.

In consultation with the Plan's actuary, the Trustees shall update annually the Rehabilitation Plan
and the contribution rates contained in its Schedules to reflect the experience of the Plan.

Notwithstanding the foregoing, schedules of contribution rates provided by the Trustees and re-
lied upon by Bargaining Parties in negotiating a collective bargaining agreement shall remain in
effect for the duration of that collective bargaining agreement. Collective bargaining agreements
that are entered, renewed or extended after the date of any changes to the Rehabilitation Plan will
be subject to the Rehabilitation Plan then in effect at the time of such entry, renewal or exten-
sion.

PLASTERERS AND CEMENT MASONS LOCAL NO. 94 PENSION FUND

AMENDED REHABILITATION PLAN
I. INTRODUCTION

The Pension Protection Act of 2006 (“PPA”) requires the Board of Trustees of a multiemployer
pension plan that has been certified by its actuary as being in critical status to develop a Reha-
bilitation Plan that is intended to enable to the plan to emerge from critical status by the end of
the Rehabilitation Period.

In response to the Critical Status Certification, the Board of Trustees of the Plasterers and Ce-
ment Masons Local No. 94 Pension Fund (“the Fund”) adopted a Rehabilitation Plan on March
25, 2011 to comply with the requirements of the PPA. The Rehabilitation Plan was designed so
that the Fund could emerge from critical status within the 10 year statutory period provided for
by the PPA.

Since the Fund’s Rehabilitation Plan was adopted, the economic conditions in the building and

construction trades have not improved and in fact have continued to decline. Additionally, the
world investment markets have not improved. In an effort to offset the impact of the decline in

CM94:00198


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

to emerge from Critical Status within the 10 year statutory period anticipated by the initial Reha-
bilitation Plan. On July 20, 2011, the Fund’s Actuary issued a certification that the Fund would
continue in Critical Status for the Plan Year beginning May 1, 2011.

Based on the foregoing, the Trustees have concluded that the Fund could not reasonably be ex-
pected to emerge from Critical Status by the end of the rehabilitation period.

IV. ALTERNATIVES CONSIDERED BY THE FUND’S TRUSTEES

The Fund’s Trustees devoted a considerable amount of time and attention to considering the ad-
vantages and disadvantages of the alternatives that would enable the Fund to emerge from Criti-
cal Status by the end of the 10-year rehabilitation period. Some of the alternatives that were con-
sidered by the Fund’s Trustees would have required unsupportable annual increases in all em-
ployer contribution rates to emerge from Critical Status by the end of the 10-year rehabilitation
period. The Trustees concluded that in view of the economic challenges facing the building and
construction industry, the prospect of these compound increases would cause the remaining par-
ticipating employers either to flee from the Fund or become unable to continue in business and
further undermine the Fund’s stability.

After considering each of these alternatives, the Fund’s Trustees concluded that each would be

unreasonable and would involve considerable risk to the long-term health (and even viability) of
the Fund.

The Fund’s Trustees further determined that, based on reasonable actuarial assumptions and up-
on exhaustion of all reasonable measures, it would be unreasonable to conclude that the Fund
would emerge from Critical Status. The Trustees reached this conclusion after consulting with
the Fund’s Actuary, and taking into account the economic condition of the building and con-
struction industry covered by the Fund. Accordingly, under the PPA, the Board of Trustees is
required to amend its Rehabilitation Plan and take reasonable measures to forestall the Fund’s
insolvency date.

In reaching this conclusion, the Fund’s Trustees considered the near-impossibility of emerging
from Critical Status at the end of the 10-year rehabilitation period in view of the significant in-
vestment losses suffered by the Fund over the plan year ended on April 30, 2008. The collapse of
the financial markets in 2008 resulted in the Fund’s experiencing the worst investment losses in
its 50-year history. The collapse of the building and construction industry resulted from the col-
lapse of the financial markets in 2008.

In addition, the magnitude of the employer contribution increases needed to satisfy the require-
ments for a 10-year rehabilitation plan would almost certainly result in lower negotiated wages
for participants and/or decreased employer contributions to other benefit plans covering these
participants (such as the plan providing their health benefit coverage). If participants perceive a
significant decrease in value in their total overall compensation—including wages, pension bene-
fits and health benefits—the Fund’s Trustees concluded that they would be likely to encourage

CM94:00208


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

b. $45.00 per month per year of Credited Service after April 30, 1982, with a
maximum of 35 years of Credited Service.
10. Effective May 1, 1992, for those who retire after that date who work and earn 300
hours of Credited Service after May 1, 1991, the amount of the monthly Employee-Only Pension
benefit shall be the total of:

a. $10.00 per month per year of Credited Service prior to May 1, 1982, and

b. $47.50 per month per year of Credited Service after April 30, 1982, with a
maximum of 35 years of Credited Service.

ll. Effective May 1, 1993, for those who retire after that date who work and earn 300
hours of Credited Service after that date, the amount of the monthly Employee Only Pension
benefit shall be the total of:

a. $10.00 per month per year of Credited Service prior to May 1, 1982, and

b. $50.00 per month per year of Credited Service after April 30, 1982, with a
maximum of 35 years of Credited Service.

12. Effective May 1, 1994, the amount of the monthly Employee-Only Pension Bene-
fit for Participants retiring after that date having earned 300 Hours of Covered Employment after
May 1, 1993, shall be the total of:

a. $10.00 for each year of Credited Service prior to May 1, 1982, and

b. $55.00 for each year of Credited Service after April 30, 1982, with a max-
imum of 35 years of Credited Service.

13. Effective May 1, 1995, the amount of the monthly Employee-Only Pension Bene-
fit for Participants retiring after that date having earned 300 Hours of Covered Employment after
May 1, 1995, shall be the total of:

a. $10.00 for each year of Credited Service prior to May 1, 1982, and

b. $60.00 for each year of Credited Service after April 30, 1982, with a max-
imum of 35 years of Credited Service.

14, Effective January 1, 1998, the amount of the monthly Employee-Only Pension
Benefit for Active Participants retiring on or after January 1, 1998, shall be the total of:

a. $10.00 for each year of Credited Service prior to May 1, 1982, and

CM94:00189


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

This date is referred to below as the "Default Schedule Implementation Date."

Once the Default Schedule is implemented with respect to a particular employer (and its employ-
ees), the Trustees shall only accept a subsequent collective bargaining agreement covering such
bargaining unit employees that contains terms consistent with the Preferred Schedule or an Al-
ternative Schedule then in effect. The benefits of participants that are subject to the Default
Schedule may be restored to the extent provided in the Preferred Schedule or an Alternative
Schedule, if they later become subject to such Schedule.

Employers to whom the Default Schedule does not apply remain subject to the surcharges im-
posed under the PPA until such time as they adopt provisions in their collective bargaining
agreements that contain terms consistent with this Default Schedule, or are party to a collective
bargaining agreement that contains provisions consistent with the Preferred Schedule or an Al-
ternative Schedule.

Reduction in Rate of Future Benefit Accruals

Because of the limitations imposed by Section 432(e)(5) of the Internal Revenue Code, the De-
fault Schedule does not contain any reduction in the rate of future benefit accruals.

Reduction or Elimination of Adjustable Benefits

Because of the limitations imposed by Section 432(e)(5) of the Internal Revenue Code, the De-
fault Schedule does not contain any reduction and/or elimination of adjustable benefits.

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $15.15 per hour.

2. PREFERRED SCHEDULE

The changes described in this Preferred Schedule will be implemented on the effective date of a
collective bargaining agreement that adopts a contribution schedule that contains terms con-
sistent with this Preferred Schedule. This date is referred to below as the "Preferred Schedule
Effective Date."

Employers to whom the Preferred Schedule does not apply remain subject to the surcharges im-
posed under the PPA until such time as they are party to a collective bargaining agreement that
contains terms consistent with such Preferred Schedule, an Alternative Schedule, or they become
subject to the Default Schedule.

CM94:00205


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

his/her Eligible Spouse will receive a death benefit in a form of a delayed monthly
pension. The monthly pension benefit to the Participant’s Eligible Spouse will
begin when the Participant would have reached age 55 and 15 years of Credited
Service. The rate per month for each year of service shall be fifty (50%) percent
of the amount such Participant would have received had he/she retired on his/her
5s" birthday and elected a Husband-Wife 50% Pension, with an Early Retirement
reduction.

(3) Such benefit shall commence after approval of an application by the
Board, effective on the first day of the month following the Participant’s sh
birthday.

(4) The death benefit will terminate on the first day of the month in which
the Eligible Spouse dies.

Amend Section 4.03(G), to read as follows:

(G) — Early Retirement Pension - The Forms, Amounts, Options and Duration of
the Early Retirement Pension shall be as set forth in Section 4.02 and 4.03, with the fol-
lowing modifications:

(5) The Participant's Employee-Only Pension shall be reduced by 1/200"
for each full month which his/her early retirement date precedes his/her Normal

Retirement Date. The other forms of pension shall be actuarial reductions of the
amount thus calculated.

(6) The Early Retirement Pension shall commence on the later of retire-
ment, completion of age and service requirements, Section 4.01(B), or approval of
the Participant's application.

(7) The election or revocation of election or re-election of an optional
form of Early Retirement Pension may be made during the election period preced-
ing the commencement of an Early Retirement Pension.

Amend Appendix B by adding Paragraph 19, to read as follows:

19. Effective May 1, 2013, the amount of the monthly Employee-Only Pen-
sion Benefit for Active Participants retiring on or after May 1, 2013, shall be the total of:

a. $10.00 for each year of Credited Service prior to May 1, 1982, and
b. $77.50 for each year of Credited Service after April 30, 1982; and

c. $33.00 for each year of Credited Service after May 1, 2013.

CM94:00211


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $11.75 per hour.

4, ALTERNATIVE SCHEDULE TWO

The changes described in this Alternative Schedule Two will take effect upon the effective date
of a collective bargaining agreement that contains terms that are consistent with this Alternative
Schedule.

Employers to whom the Alternative Schedule Two does not apply remain subject to the sur-
charges imposed under the PPA until such time as they are party to a collective bargaining
agreement that contains terms consistent with such Alternative Schedule Two, the Preferred
Schedule, Alternative Schedule One, or they become subject to the Default Schedule.

Future Benefit Accruals

The future benefit accruals of any employee whose employer is subject to the Alternative Sched-
ule Two will be reduced from $77.50 to $0.00.

Reduction or Elimination of Adjustable Benefits

The Preferred Schedule requires the elimination of the following benefits: Five-year guarantee
option; ten-year guarantee option; pop-up husband-wife pension; husband-wife 75% pension;
husband-wife 100% pension; disability benefits (if not yet in pay status); subsidized early retire-
ment pension; and subsidized qualified pre-retirement survivor annuity. The reduction and/or
elimination of adjustable benefits described in this Preferred Schedule shall be effective as of and
implemented on the Preferred Schedule Effective Date.

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $11.25 per hour.

Ill. AMENDED REHABILITATION PLAN

Subsequent to March 25, 2011, the Board of Trustees found that the economic conditions in the
building and construction trades have not improved and in fact have continued to decline. Addi-
tionally, the world investment markets had not improved. In an effort to offset the impact of the
decline in the economy and investment markets, the Board of Trustees of the Fund, on May 31,
2011, elected to adopt certain funding relief available to the Fund under the Pension Relief Act
of 2010. Although the relief obtained from the Pension Relief act of 2010 did help to improve
the Fund’s funding status, this improvement was not sufficient to allow the Fund to be projected

CM94:00207


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

b. 180 days after the expiration date of a collective bargaining agreement providing
for contributions under the Fund that was in effect on March 25, 2011, if by such
date the Bargaining Parties have failed to adopt a contribution schedule that con-
tains terms consistent with this Default Schedule.

This date is referred to below as the “Default Schedule Implementation Date.”

Once the Default Schedule is implemented with respect to a particular employer (and its employ-
ees), the Trustees shall only accept a subsequent collective bargaining agreement covering such
bargaining unit employees that contains terms consistent with the Default Schedule then in ef-
fect.

Employers to whom the Default Schedule does not apply remain subject to the surcharges im-
posed under the PPA until such time as they adopt provisions in their collective bargaining
agreements that contain terms consistent with this Default Schedule.

Reduction in Rate of Future Benefit Accruals

Because of the limitations imposed by Section 432(e)(5) of the Internal Revenue Code, the De-
fault Schedule does not contain any reduction in the rate of future benefit accruals.

Reduction or Elimination of Adjustable Benefits

Because of the limitations imposed by Section 432(e)(5) of the Internal Revenue Code, the De-
fault Schedule does not contain any reduction and/or elimination of adjustable benefits.

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $9.10 per hour.

Non-Collectively Bargained Participants Under the Amended Rehabilitation Plan

In the case of an employer that contributes to the Fund on behalf of collectively bargained and
non-collectively bargained participants, the contributions for, and the benefits provided to, the
non-collectively bargained employees, including surcharges on those contributions, shall be de-
termined as if those non-collectively participants were covered under such employer’s first to
expire collective bargaining agreement that was in effect when the Fund entered critical status.

Annual Standards and Updating of Amended Rehabilitation Plan

Pursuant to the PPA, the Fund has adopted the following procedures:

CM94:00202


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

The Board has the sole and absolute power, authority and discretion to amend, construe and ap-
ply the provisions of this Rehabilitation Plan including the Schedules. Unless otherwise indicat-
ed, all capitalized terms used in these Schedules shall have the definitions and meanings assigned
to them in the Fund's Rules and Regulations.

II. EFFECTIVE DATES

This Plan was adopted on March 25, 2011. The schedule of benefits and contribution rate re-
quirements described in this Plan apply to Participants covered under collective bargaining
agreements and participation agreements that are renewed or extended after March 25, 2011.

Pursuant to the PPA, the Trustees must review the Plan on an annual basis and may update the
Plan to reflect future investment market conditions, participation levels in the Fund, percentage
of Participants covered under the Preferred Schedule, legislative or regulatory action with respect
to PPA compliance and other factors that may have a material impact on such future Rehabilita-
tion Plan. Therefore, collective bargaining agreements and participation agreements that are re-
newed or extended after March 25, 2011 will be subject to the Plan as amended at the time of
such renewal or extension.

Il. SCHEDULES OF CONTRIBUTION AND BENEFIT LEVELS

The Board of Trustees of the Fund mandates the following Preferred, Default and Alternative
Schedules to the parties charged with bargaining over agreements requiring contributions to the
Fund. Subject to the sole discretion of the Trustees, a schedule is deemed adopted when the Trus-
tees determine that a collective bargaining agreement ("CBA") or other agreement requiring con-
tributions to the Fund includes terms consistent with the requirements of a Schedule in the Reha-
bilitation Plan.

1. DEFAULT SCHEDULE

Under the Default Schedule, since under Section 432(e)(5) of the Internal Revenue Code benefit
accruals under the Default Schedule may not be reduced below a monthly benefit payable as a
single life annuity commencing at Normal Retirement Age equal to one (1%) percent of the con-
tributions required to made on behalf of a Participant, or, the accrual applicable to the Participant
on the first day of the initial critical Plan Year, the Default Schedule does not contain any reduc-
tion or elimination of benefits, but only contains an increase in the hourly contribution rate.

The changes described in the Default Schedule will be implemented upon the earlier of:

a. the effective date of a collective bargaining agreement that adopts a contribution
schedule that contains terms consistent with this Default Schedule, or

b. 180 days after the expiration date of a collective bargaining agreement providing
for contributions under the Plan that was in effect on March 25, 2011, if by such

CM94:00194


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

III. SCHEDULES

In the first year of the Rehabilitation Plan, one schedule must be a “default schedule” that identi-
fies reductions in benefits (subject to some minimum benefits) necessary to achieve the applica-
ble benchmarks, and includes only those contribution increases necessary, after these reductions,
to permit the Plan to emerge from critical status on a timely basis.

The March 25, 2011 Rehabilitation Plan contained a “default schedule,” a Preferred schedule,
and two Alternative schedules with varying reductions in benefits and increases in contributions
necessary to achieve the applicable benchmarks. The March 25, 2011 Rehabilitation Plan antici-
pated that the Fund would emerge from Critical Status within the 10 year Rehabilitation Period.

Subsequent to March 25, 2011, the Board of Trustees found that the economic conditions in the
building and construction trades had not improved and in fact had continued to decline. In an
effort to offset the impact of the decline in the economy and investment markets, the Board of
Trustees, on May 31, 2011, elected to adopt certain funding relief available to the Fund under the
Pension Relief Act of 2010. Although the relief obtained from the Pension Relief Act of 2010
did help to improve the measure of the Plan’s progress toward meeting its benchmarks, , this
improvement was not sufficient to allow the Fund to be projected to emerge from Critical Status
within the 10 year Rehabilitation Period.

The Trustees decided to amend the Rehabilitation Plan on October 21, 2011, after determining
that, based on reasonable actuarial assumptions and upon exhaustion of all reasonable measures,
it would be unreasonable to conclude that the Fund would emerge from Critical Status. The Trus-
tees reached this conclusion after consulting with the Fund’s Actuary, and taking into account
the economic condition of the building and construction industry covered by the Fund. In reach-
ing this conclusion, the Fund’s Trustees considered the near-impossibility of emerging from Crit-
ical Status at the end of the 10-year rehabilitation period in view of the significant investment
losses suffered by the Fund over the plan year ended on April 30, 2008. The collapse of the fi-
nancial markets in 2008 resulted in the Fund’s experiencing the worst investment losses in its 50-
year history. The collapse of the building and construction industry resulted from the collapse of
the financial markets in 2008. In addition, the magnitude of the employer contribution increases
needed to satisfy the requirements for a 10-year rehabilitation plan would almost certainly result
in lower negotiated wages for participants and/or decreased employer contributions to other ben-
efit plans covering these participants (such as the plan providing their health benefit coverage). If
participants perceive a significant decrease in value in their total overall compensation—
including wages, pension benefits and health benefits—the Fund’s Trustees concluded that they
would be likely to encourage their employers to withdraw from the Fund. Thus, the Fund’s Trus-
tees concluded that a further reduction in benefits would be inconsistent with the goal of present-
ing a viable plan with ongoing value to active participants. Such action could also lead to in-
creased employer withdrawals or reductions in contributions, as the collective bargaining parties
would see less benefit to ongoing participation. The objective of the October 21, 2011 Rehabili-
tation Plan was to delay any plan insolvency so that potential improvements in investment return

CM94:00214


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

APPENDIX C
PLASTERERS AND CEMENT MASONS LOCAL NO. 94 PENSION FUND
FUNDING IMPROVEMENT PLAN(S) AND/OR REHABILITATION PLAN(S)

NO-ACTION FUNDING IMPROVEMENT PLAN OF THE
PLASTERERS AND CEMENT MASONS LOCAL NO. 94 PENSION FUND

To: Local No. 592 of the Operative Plasterers and Cement Masons and the Keystone Contrac-
tors Association

On August 22, 2008, the Board of Trustees of the Plasterers and Cement Masons Local
No. 94 Pension Fund sent to you the Fund’s Notice of Endangered Status.

In the Notice you were informed that, as a result of action taken by you in the form of
providing for an increased rate of contributions to the Fund under the collective bargaining
agreement between Local No. 592 of the Operative Plasterers and Cement Masons and the Key-
stone Contractors Association effective May 1, 2008, the Fund’s actuary has determined that the
Fund has effectively adopted a No-Action Funding Improvement Plan that satisfies the require-
ments of the Pension Protection Act of 2006. As a result of the increase in the amount of contri-
butions to the Fund, the funding level of the Fund during the Funding Improvement Period is es-
timated to increase from its current funding percentage of 76% to 98%.

As required by the Pension Protection Act, the Board of Trustees and the Fund’s actuary
must continue to review the Fund’s funding status. The Fund’s funding status must be reviewed

and certified by the actuary annually, and notices must be provided to you each year while the
Fund is in Endangered Status.

It is important to keep in mind that there are several variables beyond the control of the
Board of Trustees that the Fund’s advisors are monitoring—including investment market vola-
tility, and changes in employment levels and/or the number of contributing employers—which
could affect the Fund’s future funding status and the Board of Trustees’ recommended corrective
actions in the future. Depending on what occurs with respect to these variables, the Board of
Trustees may be required to take some additional action in order to maintain the Funding Im-
provement Plan.

NOTICE OF ELECTION TO FREEZE THE PLASTERERS AND CEMENT
MASONS LOCAL NO. 94 PENSION FUND’S FUNDING STATUS
FOR THE FUND’S 2009 PLAN YEAR

To: All Participants, Union, Contributing Employers, Pension Benefit Guaranty Corporation
(PBGC), and United States Department of Labor (DOL)

CM94:00191


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

b. $68.00 for each year of Credited Service after April 30, 1982.

15. Each Pensioner and beneficiary of a Pensioner who is receiving benefits as of
March 1, 1999, shall be entitled to a one-time supplemental benefit payment of $350.00.

16. Effective January 1, 2000, the amount of the monthly Employee-Only Pension
Benefit for Active Participants retiring on or after January 1, 2000, shall be the total of:

a. $10.00 for each year of Credited Service prior to May 1, 1982, and
b. $75.50 for each year of Credited Service after April 30, 1982.

17. Effective March 1, 2001, the amount of the monthly Employee-Only Pension
Benefit for Active Participants retiring on or after May 1, 2000, shall be the total of:

a. $10.00 for each year of Credited Service prior to May 1, 1982, and
b. $77.50 for each year of Credited Service after April 30, 1982.

18. Participants who were Pensioners as of April 30, 2000, shall receive a benefit
payment of $450.00.

19. Effective May 1, 2013, the amount of the monthly Employee-Only Pension Bene-
fit for Active Participants retiring on or after May 1, 2013, shall be the total of:

a. $10.00 for each year of Credited Service prior to May 1, 1982, and
b. $77.50 for each year of Credited Service after April 30, 1982; and

c. $33.00 for each year of Credited Service after May 1, 2013.

B-4 M94:00190


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

The Fund’s actuary shall conduct an annual review of the Amended Rehabilitation Plan and the
Default Schedule.

The Fund’s actuary shall report to the Trustees the results of its annual review.

In consultation with the Fund’s actuary, the Trustees shall update annually the Amended Reha-
bilitation Plan and the contribution rates contained in the Default Schedule to reflect the experi-
ence of the Fund.

Notwithstanding the foregoing, the Default Schedule of contribution rates provided by the Trus-
tees and relied upon by bargaining parties in negotiating a collective bargaining agreement shall
remain in effect for the duration of that collective bargaining agreement. Collective bargaining
agreements that are entered, renewed or extended after the date of any changes to the Amended
Rehabilitation Plan will be subject to the Amended Rehabilitation Plan then in effect at the time
of such entry, renewal or extension.

PLASTERERS AND CEMENT MASONS LOCAL NO. 94 PENSION FUND

SECOND AMENDED REHABILITATION PLAN
I. BACKGROUND

The Plasterers and Cement Masons Local No. 94 Pension Fund (the “Fund”) is a jointly-
administered, multiemployer defined benefit pension plan established by Local No. 592 of the
Operative Plasterers and Cement Masons (“Local No. 592” or the “Union”), and the Keystone
Contractors Association (the “Employers”). Employers also include those employers who have
not granted their collective bargaining rights to one of the associations, but who are a party to a
collective bargaining agreement or project labor agreement with Local No. 592. Local No. 592
and the Employers are parties to collective bargaining agreements, with the current Association
agreements effective through April 30, 2015. Local No. 592 and the Employers are referred to
jointly in this Plan as the “Collective Bargaining Parties” and the collective bargaining agree-
ment in effect at any given time now or in the future is referred to as the “CBA”.

On July 27, 2010, the Fund’s actuary certified the Fund to be in “Critical Status” within the
meaning of the Pension Protection Act of 2006 (the “PPA”) for the Plan Year beginning on May
1, 2010. Therefore, the Board of Trustees of the Fund was required to adopt and implement a
Rehabilitation Plan. On March 25, 2011, the Board of Trustees adopted a Rehabilitation Plan,
which they amended on October 21, 2011.

CM94:00203


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

current freeze Plan Year to improve the Fund’s funding status. Rest assured that the
Board of Trustees remain committed to operating the Fund on a financially sound basis
while meeting all federally mandated requirements. Furthermore, the Board of Trustees
intend to continue their commitment to provide all Participants with Pension benefits
which will give them an ability to obtain a secure financial future.

PLASTERERS AND CEMENT MASONS LOCAL NO. 94 PENSION FUND

REHABILITATION PLAN
I. INTRODUCTION

The Pension Protection Act of 2006 (“PPA”) requires the Board of Trustees of a multiemployer
pension plan that has been certified by its actuary as being in critical status to develop a Reha-
bilitation Plan that is intended to enable to the plan to emerge from critical status by the end of
the Rehabilitation Period.

On July 27, 2010, the Plasterers and Cement Masons Local No. 94 Pension Fund ("the Fund")
was certified by its actuaries to be in "Critical Status" as defined by the PPA for the Plan Year
beginning on May 1, 2010. Therefore, the Board of Trustees of the Fund (the "Board" or the
"Trustees"), as the plan sponsor, is required to adopt and implement a Rehabilitation Plan (the
"Plan") no later than March 27, 2011. The Rehabilitation Plan described below was adopted
March 25, 2011. The Rehabilitation Plan amends the Plan of Benefits of the Fund in order to
comply with the requirements of the PPA.

Based on the Fund's reasonably anticipated experience and actuarial assumptions, the Rehabilita-
tion Plan sets forth revised contribution and benefit structures (the "Schedules") which, if adopt-
ed by the Fund's Contributing Employers, Local Unions or other parties obligated under agree-
ments to participate in the Fund ("the Bargaining Parties"), may reasonably be expected to enable
the Fund to emerge from Critical Status by the end of the ten-year Rehabilitation Period as de-
fined by the PPA (or other time period permitted by any subsequent legislation or regulation).
The required schedules are the "Preferred Schedule," the "Default Schedule" and the two “Alter-
native Schedules.” The Default Schedule will be automatically imposed for Bargaining Parties
who fail to adopt the Preferred Schedule or one of the two Alternative Schedules. All benefit ad-
justments are subject to ERISA's notice requirements.

An Automatic Surcharge of 5% during the initial year of the Plan and 10% in subsequent years
shall be imposed upon any employer who fails to adopt a collective bargaining agreement con-
sistent with either the Preferred, Default or Alternative Schedules as required by the Rehabilita-
tion Plan. If the Default Schedule is imposed, a surcharge will be assessed consistent with the
PPA.

CM94:00193


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

their employers to withdraw from the Fund. Thus, the Fund’s Trustees concluded that a further
reduction in benefits would be inconsistent with the goal of presenting a viable plan with ongo-
ing value to active participants. Such action could also lead to increased employer withdrawals
or reductions in contributions, as the collective bargaining parties would see less benefit to ongo-
ing participation.

The Trustees therefore decided to adopt an Amended Rehabilitation Plan. The objective of the
Amended Rehabilitation Plan was to delay any insolvency so that potential improvements in in-
vestment return or other material events, including further applicable legislative reforms, can
provide an opportunity for the Fund to survive and continue to provide its promised benefits to
its participants.

Reduction in Rate of Future Benefit Accruals

Because of the limitations imposed by Section 432(e)(6) of the Internal Revenue Code, the De-
fault Schedule does not contain any reduction in the rate of future benefit accruals.

Reduction or Elimination of Adjustable Benefits

Because of the limitations imposed by Section 432(e)(6) of the Internal Revenue Code, the De-
fault Schedule does not contain any reduction and/or elimination of adjustable benefits.

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $9.10 per hour.

V. SECOND AMENDED REHABILITATION PLAN

Having received the Fund’s May 1, 2012 actuarial valuation, having been notified by the Fund’s
actuary that the Fund continued to be in Critical Status as of July 27, 2012, and having been in-
formed by the Fund’s actuary that the Fund continued to be projected to never emerge from Crit-
ical Status, the Trustees decided to amend the Amended Rehabilitation Plan.

The Trustees reviewed the Fund’s contribution rates and the Fund’s benefits with a view to mak-
ing modifications to these so as to have the Fund emerge from Critical Status at a date subse-
quent to the end of the Rehabilitation Period or to further enable the Fund to forestall insolvency.
In considering contribution rate increases, the Trustees concluded that it would not be realistic to
increase the rate of contributions given the impact of the severe economic decline in the building
and construction industry.

The Board of Trustees found that:

CM94:00209


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

11.03 Automatic Employer Surcharge. In accordance with Code Section 432(e), while
a Plan is certified by the Actuary to be in Critical Status, each Covered Employer obligated to
make Plan contributions will be required to pay a surcharge, equal to a percentage of the contri-
butions otherwise required, starting in the initial critical year no later than 30 days after receiving
notification of Critical Status, and for each succeeding Plan Year. The surcharge will cease to
apply to any Employer once its Collective Bargaining Agreement is amended to comply with the
Funding Improvement Plan or Rehabilitation Plan.

11.04 Notification. In accordance with the annual certification by the Actuary, pursu-
ant to Code Section 432(b)(3), proper notification of the Endangered Status or Critical Status for
a Plan Year will be provided to the Participants and Beneficiaries, the Board of Trustees, labor
organizations representing Participants, the Pension Benefit Guaranty Corporation and the Secre-
tary of Labor no later than 30 days after such actuarial certification. The Board of Trustees will
also provide notification to the Participants, Beneficiaries, Covered Employers, and the labor or-
ganizations representing Participants no later than 30 days prior to the effective date of the re-
duction of any adjustable benefits, as defined in Code Section 432(e)(8) and referenced in Sec-
tion 9.1 of the Plan.

11.05 Definitions. For purposes of this Article XIV, the terms Endangered Status,
Critical Status, Rehabilitation Plan, Funding Improvement Plan, Rehabilitation Period, and Fund-
ing Improvement Period, shall have the meanings ascribed to them in Code Section 432.

IN WITNESS WHEREOF, the undersigned do hereby set their hands and seals the day
and year first above written:

Loca No, 592 OF THE OPERATIVE PLASTER- KEYSTONE CONTRACTORS ASSOCIATION:
ERS AND CEMENT MASONS

Redacted by the U.S. Department of the
Treasury

By

William Ousey, PeeSidert ” Terrence McDonough, U
Executive Director

91
M94:00185


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

contains terms consistent with such Preferred Schedule, an Alternative Schedule, or they become
subject to the Default Schedule.

Reduction in Rate of Future Benefit Accruals

There will be no reduction in the rate of future benefit accruals of any Covered Employee whose
employer is subject to the Preferred Schedule.

Reduction and/or Elimination of Adjustable Benefits

The Preferred Schedule requires the elimination of the following benefits: Five-year guarantee
option; ten-year guarantee option; pop-up husband-wife pension; husband-wife 75% pension;
husband-wife 100% pension; disability benefits (if not yet in pay status); subsidized early retire-
ment pension; and subsidized qualified pre-retirement survivor annuity. The reduction and/or
elimination of adjustable benefits described in this Preferred Schedule shall be effective as of and
implemented on the Preferred Schedule Effective Date.

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $14.00 per hour.

3. ALTERNATIVE SCHEDULE ONE

The changes described in this Alternative Schedule will take effect upon the effective date of a
collective bargaining agreement that contains terms that are consistent with this Alternative
Schedule One.

Employers to whom the Alternative Schedule One does not apply remain subject to the surcharg-
es imposed under the PPA until such time as they are party to a collective bargaining agreement
that contains terms consistent with such Alternative Schedule One, the Preferred Schedule, Al-
ternative Schedule Two, or they become subject to the Default Schedule.

Future Benefit Accruals

The future benefit accruals of any employee whose employer is subject to the Alternative Sched-
ule One will be reduced from $77.50 to $10.00 per year of Credited Future Service.

Reduction or Elimination of Adjustable Benefits

The Preferred Schedule requires the elimination of the following benefits: Five-year guarantee
option; ten-year guarantee option; pop-up husband-wife pension; husband-wife 75% pension;
husband-wife 100% pension; disability benefits (if not yet in pay status); subsidized early retire-
ment pension; and subsidized qualified pre-retirement survivor annuity. The reduction and/or

CM94:00196


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

date the Bargaining Parties have failed to adopt a contribution schedule that con-
tains terms consistent with this Default Schedule, the Preferred Schedule or the
Alternative Schedule.

This date is referred to below as the "Default Schedule Implementation Date."

Once the Default Schedule is implemented with respect to a particular employer (and its employ-
ees), the Trustees shall only accept a subsequent collective bargaining agreement covering such
bargaining unit employees that contains terms consistent with the Preferred Schedule or an Al-
ternative Schedule then in effect. The benefits of participants that are subject to the Default
Schedule may be restored to the extent provided in the Preferred Schedule or an Alternative
Schedule, if they later become subject to such Schedule.

Employers to whom the Default Schedule does not apply remain subject to the surcharges im-
posed under the PPA until such time as they adopt provisions in their collective bargaining
agreements that contain terms consistent with this Default Schedule, or are party to a collective
bargaining agreement that contains provisions consistent with the Preferred Schedule or an Al-
ternative Schedule.

Reduction in Rate of Future Benefit Accruals

Because of the limitations imposed by Section 432(e)(5) of the Internal Revenue Code, the De-
fault Schedule does not contain any reduction in the rate of future benefit accruals.

Reduction or Elimination of Adjustable Benefits

Because of the limitations imposed by Section 432(e)(5) of the Internal Revenue Code, the De-
fault Schedule does not contain any reduction and/or elimination of adjustable benefits.

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $15.15 per hour.

2. PREFERRED SCHEDULE

The changes described in this Preferred Schedule will be implemented on the effective date of a
collective bargaining agreement that adopts a contribution schedule that contains terms con-
sistent with this Preferred Schedule. This date is referred to below as the "Preferred Schedule
Effective Date."

Employers to whom the Preferred Schedule does not apply remain subject to the surcharges im-
posed under the PPA until such time as they are party to a collective bargaining agreement that

CM94:00195


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

This Notice is to inform you that on May 28, 2009, the Board of Trustees of the Plasterers and
Cement Masons Local No. 94 Pension Fund (the “Fund”) elected to freeze the Fund’s funding
status, as permitted by Section 204(a) of the Worker, Retiree and Employer Recovery Act of
2008 (“WRERA”) for the Plan Year beginning on May 1, 2009. WRERA requires the Board of
Trustees of the Fund to provide notice of this election to the Participants, Union, PBGC and
DOL.

Under guidance provided by the Secretary of the Treasury through the Internal Revenue Service,
the Fund is required to provide you with the following information relating to the Board of Trus-
tees’ decision to freeze the Fund’s funding status:

(a) Name: Plasterers and Cement Masons Local No. 94 Pension Fund
EIN: 23-6445411
Plan No.: 001

(b) The election has been made under Section 204 of WRERA to treat the Fund as being en-
dangered for the Plan Year beginning on May 1, 2009.

(c) The Fund’s actuary, based on the funding requirements of the Internal Revenue Code, as
amended by the Pension Protection Act of 2006, certified to the Fund’s Board of Trustees
that the Fund’s funding status for the Plan Year beginning May 1, 2009 is endangered.

(d) This election only applies to the Plan Year beginning May 1, 2009, and does not apply to
any future Plan Years.

If the Fund’s actuary certifies that the Fund is in endangered or critical status for the Plan
Year following this election year, the Board of Trustees will provide notice of the Fund’s
status—i.e., whether it is endangered or critical—for the following year, and the steps
that will be taken to improve the Fund’s funding status, which steps may include increas-
es in contributions and reductions in future benefit accruals.

(e) If the Fund is certified to be in critical status for the Plan Year following this election
year, the steps that will have to be taken to improve the Fund’s funding status will in-
clude a surcharge on employer contributions after notice is provided of the Fund’s critical
status, and may include amendments to the Fund’s Plan of Benefits to reduce early re-
tirement benefits or any other adjustable benefits for Fund Participants.

(f) For more information about this Notice, you may contact the Fund’s Contract Adminis-
trator, D. H. Evans Associates, Inc., 2207 Forest Hills Drive, Suite 14, P. O. Box 6480,
Harrisburg, PA, 17112; Phone: (717) 671-8551, Toll Free: 1-800-636-7632.

(g) Since receiving the certification from the Fund’s actuary, the Board of Trustees of the

Fund have begun a comprehensive review of the Fund’s funding status in consultation
with the Fund’s actuary for purposes of determining what action can be taken during this

CM94:00192


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

Reduction in Rate of Future Benefit Accruals

There will be no reduction in the rate of future benefit accruals of any Covered Employee whose
employer is subject to the Preferred Schedule.

Reduction and/or Elimination of Adjustable Benefits

The Preferred Schedule requires the elimination of the following benefits: Five-year guarantee
option; ten-year guarantee option; pop-up husband-wife pension; husband-wife 75% pension;
husband-wife 100% pension; disability benefits (if not yet in pay status); subsidized early retire-
ment pension; and subsidized qualified pre-retirement survivor annuity. The reduction and/or
elimination of adjustable benefits described in this Preferred Schedule shall be effective as of and
implemented on the Preferred Schedule Effective Date.

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $14.00 per hour.

3. ALTERNATIVE SCHEDULE ONE

The changes described in this Alternative Schedule will take effect upon the effective date of a
collective bargaining agreement that contains terms that are consistent with this Alternative
Schedule One.

Employers to whom the Alternative Schedule One does not apply remain subject to the surcharg-
es imposed under the PPA until such time as they are party to a collective bargaining agreement
that contains terms consistent with such Alternative Schedule One, the Preferred Schedule, Al-
ternative Schedule Two, or they become subject to the Default Schedule.

Future Benefit Accruals

The future benefit accruals of any employee whose employer is subject to the Alternative Sched-
ule One will be reduced from $77.50 to $10.00 per year of Credited Future Service.

Reduction or Elimination of Adjustable Benefits

The Preferred Schedule requires the elimination of the following benefits: Five-year guarantee
option; ten-year guarantee option; pop-up husband-wife pension; husband-wife 75% pension;
husband-wife 100% pension; disability benefits (if not yet in pay status); subsidized early retire-
ment pension; and subsidized qualified pre-retirement survivor annuity. The reduction and/or
elimination of adjustable benefits described in this Preferred Schedule shall be effective as of and
implemented on the Preferred Schedule Effective Date.

CM94:00206


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

Effective May 1, 2013, the Board of Trustees has amended the Fund’s Amended and Restated
Plan of Benefits to reduce the monthly benefit multiplier from $77.50 for each year of Credited
Service to $33.00 for each year of Credited Service.

Effective May 1, 2013, the Board of Trustees has amended the Fund’s Amended and Restated
Plan of Benefits to change the early retirement reduction from 1/360" for each month that your
retirement precedes your Normal Retirement Date to 1/200" for each month that your retirement
precedes your Normal Retirement Date.

Effective May 1, 2013, the Board of Trustees has amended the Fund’s Amended and Restated
Plan of Benefits to change the amount that would be payable to your Eligible Spouse if you die
after you complete five years of Future Service Credits, but before Normal Retirement Age. Pri-
or to the amendment, the Eligible Spouse’s pension was 50% of the amount you would have re-
ceived if you retired on the day prior to your death on an Employee-Only Pension without reduc-
tion for payment prior to Normal Retirement Age. After the amendment, the Eligible Spouse’s
pension will be 50% of the amount you would have received if you retired on the day prior to
your death on a Husband-Wife 50% Form, reduced for payment prior to Normal Retirement Age.

Non-Collectively Bargained Participants Under the Second Amended Rehabilitation Plan

In the case of an employer that contributes to the Fund on behalf of collectively bargained and
non-collectively bargained participants, the contributions for, and the benefits provided to, the
non-collectively bargained employees, including surcharges on those contributions, shall be de-
termined as if those non-collectively participants were covered under such employer’s first to
expire collective bargaining agreement that was in effect when the Fund entered Critical Status.

Annual Standards and Updating of Second Amended Rehabilitation Plan

Pursuant to the PPA, the Fund has adopted the following procedures:

The Fund’s actuary shall conduct an annual review of the Second Amended Rehabilitation Plan.
The Fund’s actuary shall report to the Trustees the results of its annual review.

In consultation with the Fund’s actuary, the Trustees shall update annually the Second Amended
Rehabilitation Plan and the contribution rates to reflect the experience of the Fund.

Notwithstanding the foregoing, the contribution rates provided by the Trustees and relied upon
by bargaining parties in negotiating a collective bargaining agreement shall remain in effect for
the duration of that collective bargaining agreement. Collective bargaining agreements that are
entered, renewed or extended after the date of any changes to the Second Amended Rehabilita-
tion Plan will be subject to the Second Amended Rehabilitation Plan then in effect at the time of
such entry, renewal or extension.

CM94:00212


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

@ Widow's death benefit, $4.20 per month per year of Credited Service with
a maximum of 30 years.

5. Effective May 1, 1982, the amount of the monthly Employee-Only Pension bene-
fits shall be the total of:

a. $9.30 for each year of Credited Service prior to April 30, 1982, and

b. $13.00 for each year of Credited Service after May 1, 1982, with a maxi-
mum of 30 years of Credited Service.

6. Effective January 1, 1984, the amount of the monthly Employee-Only Pension
benefits shall be the total of:

a. $9.30 for each year of Credited Service prior to April 30, 1982, and

b. $18.62 for each year of Credited Service after April 30, 1982, with a maxi-
mum of 30 years of Credited Service.

7. Effective May 1, 1984, for those who work and earn 300 hours of Credited Ser-
vice after May 1, 1984, the amount of the monthly Employee-Only Pension benefits shall be the
total of:

a. $9.30 for each year of Credited Service prior to April 30, 1982, and

b. $20.85 for each year of Credited Service after April 30, 1982, with a maxi-
mum of thirty year of Credited Service.

8. Effective May 1, 1986, for those who retire after that date who work and earn 300
hours of Credited Service after January 1, 1986, the amount of the monthly Employee-Only Pen-
sion benefit shall be the total of:

a. $10.00 per month per year of Credited Service prior to May 1, 1982, and

b. $40.00 per month per year of Credited Service after April 30, 1982, witha
maximum of 30 years of Credited Service.

9. Effective May 1, 1988, for those who retire after that date who work and earn 300
hours of Credited Service after January 1, 1988, the amount of the monthly Employee-Only Pen-
sion benefit shall be the total of:

a. $10.00 per month per year of Credited Service prior to May 1, 1982, and

CM94:00188


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

the economy and investment markets, the Board of Trustees of the Fund, on May 31, 2011,
elected to adopt certain funding relief available to the Fund under the Pension Relief Act of
2010. Although the relief obtained from the Pension Relief act of 2010 did help to improve the
Fund’s funding status, this improvement has not been sufficient to allow the Fund to be projected
to emerge from critical status within the 10 year statutory period anticipated by the initial Reha-
bilitation Plan. On July 20, 2011, the Fund’s Actuary issued a certification that the Fund would
continue in critical status for the Plan Year beginning May 1, 2011.

A Rehabilitation Plan must meet the following tests.

. A rehabilitation plan consists of actions, including options or a range of options to be
proposed to the bargaining parties, formulated, based on reasonably anticipated experi-
ence and reasonable actuarial assumptions, to enable the plan to cease to be in critical sta-
tus by the end of the rehabilitation period. A rehabilitation plan must provide one or more
schedules for the bargaining parties revised benefit structures, revised contribution struc-
tures, or both, that may reasonably be expected to bring the plan out of critical status, and
annual standards for meeting the requirements of the rehabilitation plan.

. If the plan cannot reasonably be expected to emerge from critical status by the end of the
rehabilitation period, the Trustees must specify reasonable measures to emerge from crit-
ical status at a later time or to forestall possible insolvency. A plan of this variety must set
forth the alternatives considered, explain why the plan is not reasonably expected to
emerge from critical status by the end of the rehabilitation period, and specify when, if
ever, the plan is expected to emerge from critical status in accordance with the rehabilita-
tion plan.

The Trustees have concluded that the Fund cannot reasonably be expected to emerge from criti-
cal status by the end of the rehabilitation period.

The Trustees have developed a Default Schedule with regard to the Fund.

The Trustees must implement the Default Schedule if a collective bargaining agreement provid-
ing for contributions to the Fund that was in effect at the time the Fund entered critical status
(May 1, 2010) expires, and after receiving the notice of the Amended Rehabilitation Plan and the
Default Schedule, the bargaining parties fail to adopt a contract consistent with the Amended
Rehabilitation Plan and the Default Schedule.

An Automatic Surcharge of 5% during the initial year of the Amended Plan and 10% in subse-
quent years shall be imposed upon any employer who fails to adopt a collective bargaining
agreement consistent with the Default Schedule as required by the Amended Rehabilitation Plan.
If the Default Schedule is imposed, a surcharge will be assessed consistent with the PPA.

The Board has the sole and absolute power, authority and discretion to amend, construe and ap-
ply the provisions of this Amended Rehabilitation Plan including the Default Schedule.

CM94:00199


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

its 50-year history. The collapse of the building and construction industry resulted from the col-
lapse of the financial markets in 2008.

In addition, the magnitude of the employer contribution increases needed to satisfy the require-
ments for a 10-year rehabilitation plan would almost certainly result in lower negotiated wages
for participants and/or decreased employer contributions to other benefit plans covering these
participants (such as the plan providing their health benefit coverage). If participants perceive a
significant decrease in value in their total overall compensation—including wages, pension bene-
fits and health benefits—the Fund’s Trustees concluded that they would be likely to encourage
their employers to withdraw from the Fund. Thus, the Fund’s Trustees concluded that a further
reduction in benefits would be inconsistent with the goal of presenting a viable plan with ongo-
ing value to active participants. Such action could also lead to increased employer withdrawals
or reductions in contributions, as the collective bargaining parties would see less benefit to ongo-
ing participation.

IV. AMENDED REHABILITATION PLAN OBJECTIVES

The objective of the Amended Rehabilitation Plan is to delay any insolvency so that potential
improvements in investment return or other material events, including further applicable legisla-
tive reforms, can provide an opportunity for the Fund to survive and continue to provide its
promised benefits to its participants.

Vv. DEFAULT SCHEDULE OF CONTRIBUTION AND BENEFIT LEVELS

The Board of Trustees of the Fund mandates the following Default Schedule to the parties
charged with bargaining over agreements requiring contributions to the Fund. Subject to the sole
discretion of the Trustees, a schedule is deemed adopted when the Trustees determine that a col-
lective bargaining agreement (“CBA”) or other agreement requiring contributions to the Fund
includes terms consistent with the requirements of a Schedule in the Amended Rehabilitation
Plan.

Under the Default Schedule, since under Section 432(e)(5) of the Internal Revenue Code benefit
accruals under the Default Schedule may not be reduced below a monthly benefit payable as a
single life annuity commencing at Normal Retirement Age equal to one (1%) percent of the con-
tributions required to made on behalf of a Participant, or, the accrual applicable to the Participant
on the first day of the initial critical Plan Year, the Default Schedule does not contain any reduc-
tion or elimination of benefits, but only contains an increase in the hourly contribution rate.

The changes described in the Default Schedule will be implemented upon the earlier of:

a. the effective date of a collective bargaining agreement that adopts a contribution
schedule that contains terms consistent with this Default Schedule, or

CM94:00201


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

APPENDIX B
PLASTERERS AND CEMENT MASONS LOCAL NO. 94 PENSION FUND

In order to be eligible for one of the following rates of benefits, a Participant's benefits
must commence after one of the following effective dates and before the next effective date. The
benefit paid the Participant will be based on that rate in effect between the two effective dates
unless there is a specific provision for a subsequent increase in the benefit rate. In the case of
survivor benefits, the rate is governed by that rate which was effective at the time the Covered
Employee's benefits commenced rather than the date on which the surviving Eligible Spouse's or
Beneficiary’s benefits commenced.

To qualify for any of the levels of benefits set out below, a Participant must have actually
worked in Covered Employment and accumulated the required Hours of Covered Employment
between the time a new level of benefits was put into effect and the time a higher level of bene-
fits was later put into effect; i.e., if a level of benefits requires a minimum number of Hours of
Covered Employment for qualification, the Participant must have actually worked and earned
those hours between the two dates.

1. Effective May 1, 1967, for those who accumulated 750 hours or more of Credited
Service after May 1, 1967:

a. Normal Pension and Disability Pension, $1.34 per month per year of Cred-
ited Service with a maximum of 30 years.

2. Effective May 1, 1968, for those who accumulated 750 hours or more of Credited
Service after May 1, 1967:

a. Normal Pension and Disability Pension, $2.26 per month per year of Cred-
ited Service with a maximum of 30 years.

3. Effective May 1, 1972, for those who accumulated 600 hours or more of Credited
Service after May 1, 1971:

a. Normal Pension, Disability Pension and Widow's death benefit, $4.20 per
month per year of Credited Service with a maximum of 30 years.

4. Effective May 1, 1975:

a. Normal Pension and Disability Pension, $5.86 per month per year of Cred-
ited Service with a maximum of 30 years.

b. Pensioners are to receive their pensions at the same rate.

CM94:00187


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

e Many of the contributing employers to the Fund are small organizations that do not have
the financial resources to withstand the economic downturn. Of course, they are not
alone. Larger contributors are also undergoing considerable economic stress as a result
of the severe recession in the building and construction industry.

e In addition, the magnitude of the employer contribution increases required by this alter-
native would likely have resulted in lower negotiated wages for Participants and/or de-
creased employer contributions to other benefit plans covering these Participants (such as
the Fund providing their health benefit coverage). If Participants perceive a significant
decrease in value in their total overall compensation—including wages, pension benefits
and health benefits—the Board of Trustees concluded that they would be likely to leave
the building and construction industry.

For the foregoing reasons, the Board of Trustees determined that this alternative was not a rea-
sonable alternative.

The Trustees then reviewed the modification of benefits. After this review, the Board of Trus-
tees concluded that, by modifying certain benefits, the Trustees would be able to amend the
Fund’s Amended Rehabilitation Plan to reflect a more meaningful effort to forestall the Fund’s
insolvency. By amending the Fund’s monthly benefit multiplier; modifying the Fund’s Early
Retirement Pension reduction factor; and by modifying the Fund’s Death Benefits, the Fund’s
actuary projected a leveling and eventual increase in the Fund’s funded percentages and the
Standard Account Credit Balance as reflected on Exhibit A attached hereto. Exhibit A also
shows the steady decline in the Fund’s funded percentage and the Standard Account Credit Bal-
ance if no action was taken by the Trustees.

Updated Rehabilitation Plan Objectives
The Second Amended Rehabilitation Plan consists of reasonable measures adopted by the Board

of Trustees which, based on reasonable actuarial assumptions, will enable the Fund to forestall
insolvency.

The Fund’s Amended and Restated Plan of Benefits shall be amended to reflect the following
benefit modifications:

1. Amend Section 4.01(D)(1), to read as follows:
(D) Death Benefits
(1) Participant Who has Not Reached Early Retirement Age
(2) If a Participant, having five (5) years of Future Credited Service or

five (5) years of Vested Credits, who has not made a qualified election of pension
other than a Husband-Wife Pension, dies prior to reaching Early Retirement Age,

CM94:00210


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

PLASTERERS AND CEMENT MASONS LOCAL NO. 94 PENSION FUND
ACTUARIAL EQUIVALENCE FACTORS
FOR MONTHLY PENSION OPTIONS

(Normal Form: Employee-Only) (Life Only)

Participant ] | Husband Husband
Retirement 5 Yr. 10 Yr. | Husband & 75% & 100%
Age (NBD) Guar. Guar. & Wife Wife Wife
70+ .9500 8750 .9000 -8500 .8000
69 9550 8850 9025 8540 8050
68 9600 8950 9050 8580 8100
67 -9650 9050 9075 -8620 8150
66 -9700 9150 9100 8660 -8200
65 9750 9250 9125 -8700 8250
64 9775 -9300 9150 -8740 8300
63 9800 9350 9175 8780 8350
62 9825 9400 9200 8820 8400
61 9850 9450 9225 8860 8450
60 9875 9500 9250 8900 8500
59 9900 9550 9275 8940 -8550
58 9900 9600 9300 -8980 -8600
57 -9900 9650 9325 9020 8650
56 9900 9700 9350 9060 .8700
55 or 9900 9750 9375 9100 8750
younger
Adjustments to J&S for Age Difference of |
Participant & Survivor:
(Add for each whole year survivor is older) 0050 .0060 .0075
(Subtract for each year survivor is younger)
Maximum
Factor .9900 .9750 9750 9625 9500
Minimum
Factor -9500 8750 .8000 -7500 .7000

ACTUARIAL EQUIVALENCE ASSUMPTIONS FOR LUMP-SUM PAYMENTS

The lump-sum value of a participant’s monthly pension shall be actuarially computed on the basis of the
applicable interest rate, as that term is defined in IRC Section 417(e)(3)(A)(ii)(I]), and the applicable
Mortality Table, as that term is defined in IRC Section 417(e)(3)(A)(ii)(I). The stability period is the Plan
Year, and the Lookback Month is the second full calendar month preceding the Plan Year.

A-l cmg94:00186


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

2014 REHABILITATION PLAN
I. BACKGROUND

The Plasterers and Cement Masons Local No. 94 Pension Fund (the “Fund”) is a jointly-
administered, multiemployer defined benefit pension plan established by Local No. 592 of the
Operative Plasterers and Cement Masons (“Local No. 592” or the “Union”), and the Keystone
Contractors Association (the “Employers”). Employers also include those employers who have
not granted their collective bargaining rights to one of the associations, but who are a party to a
collective bargaining agreement or project labor agreement with Local No. 592. Local No. 592
and the Employers are parties to collective bargaining agreements, with the current Association
agreements effective through April 30, 2015. Local No. 592 and the Employers are referred to
jointly in this Plan as the “Collective Bargaining Parties” and the collective bargaining agree-
ment in effect at any given time now or in the future is referred to as the “CBA”.

On July 27, 2010, the Fund’s actuary first certified the Fund to be in “Critical Status” within the
meaning of the Pension Protection Act of 2006 (the “PPA”) for the Plan Year beginning on
May 1, 2010. Therefore, the Board of Trustees of the Fund was required to adopt and implement
a Rehabilitation Plan. On March 25, 2011, the Board of Trustees adopted a Rehabilitation Plan,
which they amended on October 21, 2011, February 26, 2013, and November 14, 2014.

Il. REHABILITATION PLAN

A Rehabilitation Plan must prescribe actions, including recommended actions to be taken by the
bargaining parties that are expected to enable a plan to meet stated annual standards and emerge
from critical status by the end of the Rehabilitation Period, based on reasonably anticipated expe-
rience and on reasonable actuarial assumptions.

Under the PPA, the Rehabilitation Plan had to include one (1) or more schedules showing re-
vised benefit structures, revised contributions, or both, which, if adopted by the Board of Trus-
tees and agreed upon by the bargaining parties, would reasonably be expected to enable the Fund
to emerge from Critical Status by the end of the Fund’s rehabilitation period, or where that is not
reasonable, to either emerge from Critical Status at a later time or to forestall insolvency.

In March 2011, the Board of Trustees adopted a Rehabilitation Plan that contained four sched-
ules providing reductions in benefits, increases in contributions or both, that were reasonably ex-
pected to enable the Plan to emerge from critical status at the end of the Rehabilitation Period
(10-year period beginning on May 1, 2011). In October 2011, the Board of Trustees amended
the Rehabilitation Plan to include just one schedule, the Default Schedule, calling for increases in
contributions. In February 2013, the Board of Trustees amended the Rehabilitation Plan, provid-
ing reductions in benefits. This document (“2014 Rehabilitation Plan”) represents the fourth re-
vision to the Rehabilitation Plan. It includes one Default Schedule, calling for increases in con-
tributions and reductions in benefits.

CM94:00213


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

elimination of adjustable benefits described in this Preferred Schedule shall be effective as of and
implemented on the Preferred Schedule Effective Date.

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $11.75 per hour.

4, ALTERNATIVE SCHEDULE TWO

The changes described in this Alternative Schedule Two will take effect upon the effective date
of a collective bargaining agreement that contains terms that are consistent with this Alternative
Schedule.

Employers to whom the Alternative Schedule Two does not apply remain subject to the sur-
charges imposed under the PPA until such time as they are party to a collective bargaining
agreement that contains terms consistent with such Alternative Schedule Two, the Preferred
Schedule, Alternative Schedule One, or they become subject to the Default Schedule.

Future Benefit Accruals

The future benefit accruals of any employee whose employer is subject to the Alternative Sched-
ule Two will be reduced from $77.50 to $0.00.

Reduction or Elimination of Adjustable Benefits

The Preferred Schedule requires the elimination of the following benefits: Five-year guarantee
option; ten-year guarantee option; pop-up husband-wife pension; husband-wife 75% pension;
husband-wife 100% pension; disability benefits (if not yet in pay status); subsidized early retire-
ment pension; and subsidized qualified pre-retirement survivor annuity. The reduction and/or
elimination of adjustable benefits described in this Preferred Schedule shall be effective as of and
implemented on the Preferred Schedule Effective Date.

Contribution Increase

The Default Schedule requires an increase in employer contributions from the present rate of
$8.10 per hour to $11.25 per hour.

Non-Collectively Bargained Participants Under the Rehabilitation Plan

In the case of an employer that contributes to the Plan on behalf of collectively bargained and
non-collectively bargained participants, the contributions for, and the benefits provided to, the
non-collectively bargained employees, including surcharges on those contributions, shall be de-

CM94:00197


APPLICATION FOR APPROVAL OF BENEFIT SUSPENSION FOR
PLASTERERS & CEMENT MASONS LOCAL NO. 94 PENSION FUND
EIN/ PN: 23-6445411 / 001

Exhibit 7.06a
Plan Document with Plan Amendments (Checklist Item #37)

IL. EFFECTIVE DATES

The Plan was originally adopted on March 25, 2011. The Default Schedule of contribution rate
requirements described in this Amended Plan apply to Participants covered under collective bar-

gaining agreements and participation agreements that are renewed or extended after March 25,
2011.

Pursuant to the PPA, the Trustees must review the Amended Plan on an annual basis and may
update the Plan to reflect future investment market conditions, participation levels in the Fund,
percentage of Participants covered under the Default Schedule, legislative or regulatory action
with respect to PPA compliance and other factors that may have a material impact on such future
Rehabilitation Plan. Therefore, collective bargaining agreements and participation agreements
that are renewed or extended after March 25, 2011 will be subject to the Amended Plan as
amended at the time of such renewal or extension.

I. ALTERNATIVES CONSIDERED BY THE FUND’S TRUSTEES

The Fund’s Trustees devoted a considerable amount of time and attention to considering the ad-
vantages and disadvantages of the alternatives that would enable the Fund to emerge from criti-
cal status by the end of the 10-year rehabilitation period. Some of the alternatives that were con-
sidered by the Fund’s Trustees would have required unsupportable annual increases in all em-
ployer contribution rates to emerge from critical status by the end of the 10-year rehabilitation
period. The Trustees concluded that in view of the economic challenges facing the building and
construction industry, the prospect of these compound increases would cause the remaining par-
ticipating employers either to flee from the Fund or become unable to continue in business and
further undermine the Fund’s stability.

After considering each of these alternatives, the Fund’s Trustees concluded that each would be

unreasonable and would involve considerable risk to the long-term health (and even viability) of
the Fund.

The Fund’s Trustees further determined that, based on reasonable actuarial assumptions and up-
on exhaustion of all reasonable measures, it would be unreasonable to conclude that the Fund
would emerge from critical status. The Trustees reached this conclusion after consulting with the
Fund’s Actuary, and taking into account the economic condition of the building and construction
industry covered by the Fund. Accordingly, under the PPA, the Board of Trustees is required to
amend its Rehabilitation Plan and take reasonable measures to forestall the Fund’s insolvency
date.

In reaching this conclusion, the Fund’s Trustees considered the near-impossibility of emerging
from critical status at the end of the 10-year rehabilitation period in view of the significant in-
vestment losses suffered by the Fund over the plan year ended on April 30, 2008. The collapse of
the financial markets in 2008 resulted in the Fund’s experiencing the worst investment losses in

CM94:00200