Defined Benefit Pension Plan Document

SOUTHERN CALIFORNIA IBEW-NECA PENSION PLAN
PLAN DOCUMENT

(As Amended and Restated Effective January 1, 2015)

TABLE OF CONTENTS

  • Introduction
  • Article 1 - Definitions of Terms Used in the Plan
  • Article 2 - Participation
  • Article 3 - Retirement Date
  • Article 4 - Normal Pension Benefit
  • Article 5 - Automatic, Normal and Optional Forms of Pension Benefit
  • Article 6 - Vested Pension on Termination of Coverage
  • Article 7 - Disability Benefit
  • Article 8 - Death Benefit and Designation of Beneficiary
  • Article 9 - Administration of the Plan
  • Article 10 - Amendment of the Plan
  • Article 11 - Termination of the Plan
  • Article 12 - Special Provisions
  • Article 13 - Provisions Applicable to Former IBEW Local Union 440 Pension Plan Participants
  • Article 14 - Pro Rata Pensions
  • Article 15 - Transfer of Contributions
  • Article 16 - Amendment to Comply with EGTRRA
  • Article 17 - Rehabilitation Plan
  • Article 18 - Execution
  • Appendix I - Rules Relating to Employer Withdrawal Liability
  • Appendix II* - Rules and Regulations Pertaining to Pension Options
  • Apendix III - Credit for Military Service

*Appendix II contains 60 pages of actuarial charts listing the reduction factors used to calculate the Joint and Survivor Options, based on age of member and spouse at retirement and listing the Social Security adjustment pension options. Due to space limitations three charts have not been included, but are available from the Administrative Office.

INTRODUCTION

Effective January 1, 2015, or as otherwise indicated, this document constitutes another complete Amendment and Restatement of the Southern California IBEW-NECA Pension Plan (the "Plan").

The rights and benefits of Participants, Beneficiaries, Annuitants and Alternate Payees who retire prior to January 1, 2015 and the rights and benefits, if any, for periods prior to January 1, 2015 shall be determined in accordance with the prior provisions of the Plan, unless otherwise provided in the Plan or in any Amendment thereto.

ARTICLE 1
DEFINITIONS OF TERMS USED IN THE PLAN

Articles 1.1 through 1.8 define terms by reference to the Trust Agreement.

1.1 "Association" has the same meaning as in the Trust Agreement and includes the Los Angeles County Chapter of the National Electrical Contractors Association, Orange County Chapter of the National Electrical Contractors Association, and Southern Sierras Chapter of the National Electrical Contractors Association.

1.2 "Contribution Agreement" means any Contribution Agreement or other written agreement as specified in the Trust Agreement approved by the Trustees, which requires payments to the Trust Fund on behalf of employees.

1.3 "Covered Employee" means an Employee as defined in the Trust Agreement, including any person performing work under a Collective Bargaining Agreement and employed by an "Employer", and such other persons as the Trustees may hereinafter designate as "Employees" for the purpose of the Agreement and Declaration of Trust, provided any such designation does not jeopardize or adversely affect the tax exempt status of the "Plan", including a special Employee (except where expressly excluded in the Plan) and employees of an Employer who adopts the Plan, with the consent of the Trustees. No self-employed person, sole proprietor, owner, operator, partner, or "Employer", unless employed by a corporation, shall be "Covered Employees" hereunder.

1.4 "Employer" has the same meaning as in the Trust Agreement, which is any present or future member of an "Association", and any contractor who is or becomes signatory to a Collective Bargaining Agreement. The term "Employer" shall also include the "Unions" and the "Associations", which may at the discretion of the Trustees make contributions to this Trust or those Employers who adopt the Plan, with the consent of the Trustees.

"Employer" also means any employer who does in fact make one or more contributions to the Plan or who is the employer of employees admitted pursuant to the provisions of the Trust Agreement. The term "Employer" shall also include any Union which makes contributions to the Plan on behalf of its employees provided that the inclusion of said Union(s) is not a violation of any existing law or regulation. The term Employer shall also include any of the employers who make contributions to the Plan on behalf of their employees pursuant to regulations adopted by the Board of Trustees.

An employer shall not be deemed a Contributing Employer simply because it is part of a controlled group of corporations (within the meaning of Section 1563(a) of the Internal Revenue Code, determined without regard to Section 1563(a)(4) and (e)(3)(C), or of a trade or business under common control within the meaning of Section 414(c) of the Internal Revenue Code), some other part of which is a Contributing Employer.

For purposes of identifying Highly Compensated Employees and applying the rules on participation, vesting and statutory limits on benefits under the Plan but not for determining Covered Employment, the term "Employer" includes all members of an affiliated service group with the Employer within the meaning of Internal Revenue Code Section 414(m) and all other businesses aggregated with the Employer under Internal Revenue Code Section 414(b).

1.5 "Trust" means the Trust created and established under the Trust Agreement.

1.6 "Trust Agreement" means the Agreement and Declaration of Trust of the Southern California IBEW-NECA Pension Plan, executed October 1, 2001, and any amendments, modifications and successors thereto.

1.7 "Trustees" means the Board of Trustees designated and acting under the Trust Agreement.

1.8 "Union" means Local Union No. 11, International Brotherhood of Electrical Workers, Local Union No. 440, International Brotherhood of Electrical Workers, Local Union No. 441, International Brotherhood of Electrical Workers, and Local Union No. 477, International Brotherhood of Electrical Workers, for and on behalf of themselves and any Local Union affiliated with the International Brotherhood of Electrical Workers in the future permitted to participate in this Trust as set forth in the Trust Agreement.

Where used in the Plan:

1.9 "Actuarial Equivalent" means the dollar value on any specified date computed on the basis of appropriate actuarial assumptions used in the most recent actuarial valuation unless otherwise set forth in an appendix to this Plan.

1.10 "Covered Employment" means employment with an Employer in a position subject to a Contribution Agreement.

1.11 A "Covered Hour" includes each hour for which a Covered Employee is paid, or is entitled to payment, for the performance of duties, or on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated), or for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the employer. The number of Covered Hours to be credited for periods during which the Covered Employee performs no duties and the credit of Covered Hours to specific plan years shall be determined by the Trustees in accordance with subsections (b) and (c) of Department of Labor Regulations §2530.200b-2.

1.12 "Credited Future Service" means the sum of a Participant's Future Service Credits. A Participant shall be credited with a Future Service Credit of one fifteen-hundredth (1/1500th) of one year for each Covered Hour rendered after his Employee Contribution Date.

A Participant will receive Credited Future Service for military service during a period described in Appendix III and covered by applicable federal law governing veteran's reemployment rights provided:

  1. Such service is military absence described in Section 1.27(b),
  2. The Participant entered military service within one hundred twenty (120) days of leaving Covered Employment or a period of employment covered as Past Service under the Plan,
  3. Such service is rendered subsequent to the Participant's Union Entry Date.

Effective June 1, 2002, Credited Future Service will be credited for military service at the greater of 125 hours per month for each complete month of military service or the average monthly hours worked in the twelve months prior to the Participant's commencement of military service, and eight (8) hours per day (but not more than 125 hours) for any additional fraction of a month.

1.13 "Credited Past Service" means the sum of a Participants Past Service Credits.

  1. A Participant, other than a Special Employee, shall be entitled to Past Service Credits provided his Employee Contribution Date occurs between his Local Union's Entry Date and the last day of the second complete Plan Year following his Local Union's Entry Date. The dates of entry into the Plan for each Local Union are:
    1. July 1, 1964   for Local 11;
    2. March 6, 1967 for Local 477;
    3. January 1, 1971 for Local 440.
    4. March 1, 1971 for Local 441;
    5. July 1, 1971   for Local 447;
  2. The Local Union's Entry Date applicable to a Participant shall be the date specified for the Local Union that represented the Participant on his Employee Contribution Date. However, a Participant who does not meet the above require­ments shall nevertheless be entitled to Past Service Credits, if such Participant was in any of the following categories between his Local Union's Entry Date and the last day of the second complete Plan Year following said date:
    1. An officer or staff employee of the Union;
    2. A regular full-time Employee of an Employer in the electrical contracting industry, within the collective bargaining area of the Union;
    3. In military service, provided that the Participant returns to Covered Employment or makes himself available for work by registering with the Union within one hundred and twenty (120) days after his discharge from military service. The Participant should promptly provide notice of such military absence to the Trust Fund Office upon his return to Covered Employment or registration with the Union for dispatch;
    4. Disabled as approved by the Trustees; and
    5. A qualified journeyman electrician who is determined by the Board of Trustees to have been employed in the geographic area covered by the Plan in a capacity that enhanced or advanced the electrical contracting industry.
  3. A Participant entitled to Past Service Credit shall be credited with one quarter of one year's Past Service Credit for each calendar quarter of employment if such employment was or would have been Covered Employment had a Contribution Agreement been in effect at such time. Past Service will be credited for employment that was rendered by such Participant from January 1, 1942 to his Local Union's Entry Date. For purposes of determining benefits under the Plan, a Participant is entitled to Past Service Credits for periods of military service described in (b) above, provided:
    1. Such service was rendered prior to the Participant's Local Union's Entry Date,
    2. The Participant entered military service within one hundred twenty (120) days of leaving employment credited as Past Service under the Plan;
    3. The period of the Participant's military service is described in Appendix III and covered by applicable federal law governing veteran's reemployment rights.
    Past Service will be credited up to a maximum of 15 years of Credited Past Service.

    Notwithstanding the foregoing, a Special Employee represented at the effective date of his coverage by Local 441 of the Union must earn Future Service Credit prior to January 1, 1977 in order to be entitled to Past Service Credit. A Special Employee shall only earn Past Service Credits for service prior to March 1, 1971.

1.14 "Credited Vesting Service Years" means, for a Participant, the total number of Vesting Service Years completed by the Participant that have not been forfeited as provided in Section 2.1(c). For a Participant who died on or after January 1, 2007 while performing qualified military service, the Participant shall receive Vesting Service Years for the period of qualified military service.

1.15 "Divesting Service Year" means a Plan Year, commencing on or after July 1, 1976, during which a Participant earns less than 375 Vesting Hours. However, if a Participant fails to earn 375 Vesting Hours in a Plan Year in which he accrues at least one hour of Special Service, then such Plan Year shall not cause a Divesting Service Year.

1.16 "Non-Covered Electrical Employment" means any kind of work which is performed:

  1. in the jurisdiction of any union whose members are Participants in this Plan or in the jurisdiction of any other local of the International Brotherhood of Electrical Workers (IBEW) that maintains a Related Plan, and
  2. both on or after October 1, 1987, and on or after the date the Participant becomes an Active Participant in this Plan, and
  3. as an employee, supervisor, sole proprietor, officer, director, partner or corporate owner, and
  4. for an entity or as a sole-proprietor, partner or owner performing services in the same trade, craft or industry covered by the Plan, and
  5. is not subject to a collective bargaining agreement requiring contributions to the Plan or a like or Related Plan between the Union and an Employer sponsored by either a local Chapter of NECA or an affiliated local Union of the IBEW.
  6. Employment which is not subject to a collective bargaining agreement for an Employer who is signatory to a collective bargaining agreement with the Union or an affiliated local Union of the IBEW shall not constitute Non-Covered Electrical Employment.    
  7. Any work or employment on or after March 1, 2005 for an electrical instruction program, electrical training program, or retail-based instruction other than an IBEW-NECA sponsored training program shall be considered to constitute 'Non-Covered Electrical Employment.' In the event a Participant engages in the aforementioned work or employment under this sub-section (g) on or after March 1, 2005, all benefits accrued by the Participant on or after March 1, 2005 shall be suspended until the Participant attains Normal Retirement Age.
  8. This Subsection is added as a reforming remedial Amendment in accord with Revenue Procedure 2005-23. Effective June 1, 2004, all provisions of the Plan requiring suspension of Early Retirement Benefits until Normal Retirement Age (Article 9, Section 9.7) and/or ineligibility for Early Retirement Benefits due to Non-Covered Electrical Employment (Article 3, Section 3.2) shall apply solely to benefits accrued on and after October 1, 1987. The provisions of Article 9, Section 9.7, providing for month-to-month suspension of benefits for Suspendible Employment, including but not limited to Non-Covered Electrical Employment, shall continue to apply to all benefit accruals and to the remedial payments under this Subsection. A separate and distinct remedial Amendment shall be adopted related to Suspendible Employment.

    For purposes of interest to be added to some remedial payments under this Subsection, the rates of interest have been per annum and at the rate in effect at the time of the remedial payment for pensions with a retroactive annuity starting date.

    1. Early retirement pensioners with pre-October 1,1987 benefit accruals who did not attain Normal Retirement Age as of June 1, 2004, and whose June, 2004 and/or later monthly benefit was suspended solely due to Non-Covered Electrical Employment: Not later than January 1, 2006, the following actions shall be completed in terms of these Early Retirement Pensioners. First, they shall be identified by the Plan. Second, their pre-October 1, 1987 Early Retirement Pension benefit accrual in the form of pension previously elected shall be calculated. Third, for each month on and after June, 2004, for which their benefit was not otherwise subject to monthly suspension, they shall receive a monthly payment equal to that pre-October 1, 1987 monthly benefit accrual portion of their Early Retirement Pension. Fourth, for any such monthly payment not paid on the first day of the month in the month due, they shall also receive appropriate interest through the date of actual payment. Fifth, they shall be advised that any post-October 1, 1987 benefit accrual portion of their Early Retirement Pension, if any, shall be payable upon their attainment of Normal Retirement Age unless some other provision of the Plan requires an earlier payment.
    2. Active Vested Participants and Inactive Vested Participants with pre-October 1, 1987 benefit accruals who had not obtained Normal Retirement Age as of June 1, 2004 who were previously determined ineligible to commence receipt of any Early Retirement Benefit solely due to their having engaged in Non-Covered Electrical Employment: Not later than January 1, 2006, the following actions shall be completed in terms of these participants who were not receiving a benefit as of June 1, 2004. First, they shall be identified by the Plan. Second, their pre-October 1, 1987 benefit accrual shall be calculated. Third, they shall be advised that, subject to all other requirements of the Plan, this remedial Amendment permits them to commence receipt of an Early Retirement Pension based upon their pre-October 1, 1987 benefit accruals, with a retroactive annuity starting date as early as June 1, 2004, plus payment of appropriate interest or, in the alternative, an appropriate later annuity starting date of their choice which may or may not include interest depending upon the date they elect. Fourth, they shall be advised the balance of any Early Retirement Pension elected reflecting benefits accrued on and after October 1, 1987 shall be suspended until Normal Retirement Age unless an earlier payment is required by other provisions of the Plan. Fifth, they shall be advised any Early Retirement Pension they elect shall be subject to the month-to-month suspension of benefit provisions of the Plan. Sixth, they shall be supplied with a pension application contemporaneous with the aforesaid notice. Seventh, they shall be advised that should they desire a June 1, 2004 retroactive annuity starting date, they must file an application within six (6) months of the Plan's mailing of notice of this Amendment.
    3. Active Vested Participants and Inactive Vested Participants with pre-October 1, 1987 benefit accruals who have not attained Normal Retirement Age as of June 1, 2004 and who have not previously applied for an Early Retirement Pension due to their having engaged in Non-Covered Electrical Employment: These participants shall receive a copy of this Amendment. They shall be advised those who file an application within six (6) months of the Plan's mailing of notice of this Amendment and who meet all other requirements of the Plan shall be offered, as to their pre-October 1, 1987 benefit accrual, the same annuity starting date options, including if applicable interest, as are provided under Part (2) of this Subsection.

1.17 "Employee" means an employee who works for an Employer.

The term "Employee" shall also include employees of Unions of the Trust Fund on whose behalf contributions are made to the Plan pursuant to regulations adopted by the Board of Trustees, provided the inclusion of said employees is not a violation of any existing regulation.

Effective August 1, 2003, the term 'Employee' also means employees described above and employees not performing work under any of the collective bargaining agreements but who formerly performed services under any of the collective bargaining agreements. The Employer must notify the Trustees in advance in writing of an election to pay contributions on behalf of collective bargaining unit alumni pursuant to this subsection and pursuant to regulations adopted by the Board of Trustees and provided further that the inclusion of said employees is not a violation of any existing law or regulation.

Participation in the Plan by non-collectively bargained employees shall be subject to a Participation Agreement duly executed by the Board of Trustees and the Employer.

Effective August 1, 2003, Employees not performing services under a collective bargaining agreement may only participate in the Plan if no more than five percent (5%) of the Employees covered under the Plan are non-collective bargaining unit employees. Employees who previously participated as collective bargaining unit employees and who continue participation in the Plan as collective bargaining unit alumni pursuant to this Section shall not be treated as collective bargaining unit employees for purposes of the five percent (5%) maximum but shall be considered collective bargaining unit employees to the fullest extent permissible under Internal Revenue Code Section 410, Regulations related to that Section and all related Sections and Regulations. Except as may be required by law, collective bargaining unit alumni whose participation is allowed pursuant to this Section of the Plan and other participants not performing services under the collective bargaining agreement participating pursuant to the provisions of this Section of the Plan, shall in no event accrue benefits under the Plan in a fashion more favorable than that applicable to similarly situated Employees who are performing services under the collective bargaining agreement.

In no event may an Employer that wishes to pay contributions to the Plan on behalf of non-collectively bargained unit employees do so without the prior approval of the Trustees. Should an Employer pay such contributions without the prior approval of the Trustees, those contributions less any investment losses but in no event with any investment gains, shall be returned by the Trustees to the Employer. The Trustees shall not permit initial or continued participation pursuant to this Section if such participation would result in the five percent (5%) limitation of this Section being violated.

The term "Employee" does not include any self-employed person, whether a sole proprietor or partner."

1.18 "Employee Contribution Date" means the date of a Covered Employee's first Covered Hour, or, if the forfeiture provisions of Section 2.1(c) apply, the Covered Employee's first Covered Hour subsequent to his reentry into Covered Employment. However, for any Employee who became a Participant before July 1, 1976, for Credited Future Service or Credited Past Service accrued before July 1, 1976 which would have been forfeited under Section 1.18 of the Plan as it existed on or before June 30, 1976, the following rule applies. If the forfeiture of such service would have occurred during a period of employment in the electrical contracting industry which was not Covered Employment at the time of reference but which employment would have been Covered Employment at the earliest of his death, retirement or on June 30, 1976, then his Employee Contribution Date shall be the date of the Covered Employee's first Covered Hour which immediately follows the latest date as of which such period or periods of employment would have been Covered Employment as defined by this Plan.

1.19 "Employer Contributions" means contributions made pursuant to a Contribution Agreement.

1.20 "Future Service Unit" means the amount of benefit earned by a Participant for each year of Credited Future Service as determined under the Benefit Schedule in Section 4.2.

1.21 "Grace Period" means a period following the date on which a Covered Employee becomes an Active Participant and prior to his Normal Retirement Date during which the Active Participant fails to work at least 375 Covered Hours in each year of two consecutive Plan Years. For example, an Active Participant who completes 375 Covered Hours in one Plan Year, and zero Covered Hours during the following Plan Year would not complete a Grace Period, because he has earned at least 375 Covered Hours in at least one of the two Plan Years. However, a Participant who completes 374 Covered Hours in one Plan Year and 374 during the following Plan Year would complete a Grace Period, because he has completed less than 375 Covered Hours during each year of those two years.

1.22 "Participant" means a Covered Employee who is participating in the Plan in one of the categories of participation specified in Section 2.1, a Disabled Participant pursuant to Article 7, or a Pensioner pursuant to Article 3.

1.23 "Pension Fund" or "Fund" means the Southern California IBEW-NECA Pension Trust Fund.

1.24 "Plan" means this Southern California IBEW-NECA Pension Plan.

1.25 "Plan Year" means each twelve (12)-month period from July 1 through June 30.

1.26 "Special Employee" means a Covered Employee represented by IBEW Local 441 with an effective date of coverage of January 1, 1976, as recorded on the administrative records of the Trust Fund.

1.27 "Special Service" means the following:

  1. A leave of absence authorized by the Trustees, provided that such Participant returns from an authorized leave of absence within the time specified by the Trustees;
  2. Military service rendered by the Participant within one hundred and twenty (120) days of leaving Covered Employment or a period of employment covered as Past Service under the Plan, provided that the Participant returns to Covered Employment and/or registered for work with the Union within one hundred and twenty (120) days of the Participant's discharge from military service. The Participant should promptly provide notice of such military absence to the Trust Fund Office upon his return to Covered Employment or registration with the Union for dispatch;
  3. Continuous employment with an Employer within the geographic jurisdiction of a collective bargaining agreement between the Union and an Employer, in a job classification not subject to the jurisdiction of the Union, including such employment in Uncovered Vesting Employment;
  4. Periods of maternity or paternity leave of absence, as follows:
    1. Maternity or paternity leave of absence will include periods during which a Participant is absent from Covered Employment or Uncovered Vesting Employment (A) due to the Participant's pregnancy, (B) due to the birth of the Participant's child, (C) due to the adoption of a child by the Participant, or (D) for purposes of caring for such child during a period immediately following such birth or adoption.
    2. Special Service under this Section 1.27(d) for maternity or paternity leaves of absence commencing prior to July 1, 2011 shall be credited for vesting purposes and determining eligibility for Early Retirement benefits only. For maternity or paternity leaves of absence commencing on or after July 1, 2011 Special Service under this Section 1.27(d) shall be credited solely for the purpose of preventing a Divesting Service Year and shall not be credited for purposes of vesting or determining eligibility for Early Retirement Benefits. Special Service will be credited under this Section 1.27(d) at the rate of eight hours per day.
    3. Special Service under this Section 1.27(d) will be credited only during the Plan Year in which such absence begins; or, if Special Service is not needed to prevent a Divesting Service Year during the Plan Year in which such absence begins, Special Service will be credited only during the following Plan Year. No more than 375 hours of Special Service will be credited during any period of maternity or paternity leave.
    4. In order to earn Special Service Credit, under this Section 1.27(d), a Participant will be required to furnish to the Trustees such information as is reasonably necessary to establish:
      1. that the leave is a maternity or paternity leave described in this Section 1.27(d) and
      2. the number of days of such leave.
  5. Such other circumstances as may subsequently be specified by the Trustees in their discretion.
  6. Leaves of absence shall be granted to participants for periods prior to September 1, 1986, for those periods the participant worked under a collective bargaining agreement of a Local Union of the International Brotherhood of Electrical Workers which collective bargaining agreement did not require contributions to this Trust Fund.
  7. A leave of absence shall be granted to a Participant for any period of employment by an IBEW-NECA sponsored organization that does not contribute to any Related Plan.

1.28 "Total Credited Service" means the sum of a Participant's Credited Past Service and Credited Future Service which has not been forfeited.

1.29 "Uncovered Vesting Employment" means employment with an Employer in a position not subject to a Contribution Agreement, provided the Employee was employed with an Employer as a Covered Employee immediately preceding Uncovered Vesting Employment or immediately following Uncovered Vesting Employment.

1.30 "Vesting Hour" means the following:

  1. A Covered Hour.
  2. An hour of temporary disability approved by the Trustees or Total and Permanent Disability. An Employee will be credited with thirty (30) Vesting Hours for each week of disability.
  3. An hour worked in Uncovered Vesting Employment.
  4. An hour of Credited Future Service credited to the Employee under Article 1.12 on account of military service, provided the requirements of Section 1.27(b) are satisfied.

1.31 "Vesting Service Year" means a Plan Year during which an Employee earns 750 or more Vesting Hours. For purposes of an Employee who is not covered by a collective bargaining agreement between a Union and Employer, Vesting Service Year means the Plan Year during which such Employee earns 750 or more Vesting Hours commencing with the Plan Year in which such Employee is eligible to participate in the Plan.

1.32 "Normal Retirement Age" means attainment of age 65.

1.33 "Retirement" - To be considered retired, a Participant who has not attained his Normal Retirement Date must sever all employment with any and all entities which pay contributions to the Southern California IBEW-NECA Pension Trust Fund.

1.34 "Related Plan" - means a Plan that is signatory to the Electrical Industry Pension Reciprocal Agreement or any other pension plan with which the Trustees have entered into a pro-rata reciprocity agreement.

1.35 "Highly Compensated Employee" means each Highly Compensated Active Employee and Highly Compensated Former Employee of an Employer. Whether an individual is a Highly Compensated Employee is determined separately with respect to each Employer, based solely on the individual's compensation from or status with respect to that Employer.

A Highly Compensated Active Employee is an Employee of the Employer who performs service for the Employer during the determination year and who:

  1. for the preceding calendar year received Compensation from the Employer in excess of $110,000 (as adjusted pursuant to IRC Section 415(d)), was a member of the top-paid group of Employees of such Employer for such preceding calendar year and is not otherwise excluded pursuant to IRC Section 414(q)(8) by virtue of his or her inclusion in the bargaining unit of employees covered by the collective bargaining agreement. For this purpose, the top-paid group of Employees shall consist of the top 20% of the Employees when ranked on the basis of Compensation paid during such year; or
  2. was a 5% owner at any time during the calendar year or preceding calendar year.

The determination of who is a Highly-Compensated Employee, including the determination of the number and identity of Employees in the top-paid group, the top 100 Employees, and the number of Employees treated as officers and the Compensation that is considered, will be made in accordance with IRC Section 414(q) and the regulations thereunder. No Employee who is collective bargaining unit alumni, who is included in a collective bargaining unit under, or whose Compensation is governed by the collective bargaining agreements shall be considered a Highly-Compensated Employee and, pursuant to IRC Section 414(q)(8), no such Employee shall be taken into account in determining the number of employees in the top-paid group."

1.36 "Annuity Starting Date" for a Participant means the first day of the first calendar month starting after the Participant has fulfilled all of the conditions for entitlement to benefits and after the later of:

  1. the first day of the month after submission by the Participant of a completed application for benefits, or
  2. 30 days after the Plan advises the Participant of the available benefit payment options, unless
    1. the benefit is being paid as a Joint and Survivor Pension at or after the Participant's Normal Retirement Age, or
    2. The Participant and Spouse (if any) consent in writing to the commencement of payments before the end of that 30-day period.

The Annuity Starting Date will not be later than the Participant's Required Beginning Date.

The Annuity Starting Date for a Beneficiary or alternate payee designated under a Qualified Domestic Relations Order will be determined under this Section, except that references to the Joint and Survivor Pension and spousal consent do not apply. An alternate payee shall be treated as a surviving spouse to the extent required under a Qualified Domestic Relations Order and the extent required by applicable law.

A Participant who retires before his Normal Retirement Age and then earns additional benefit accruals under the Plan through reemployment will have a separate Annuity Starting Date determined under this Section with respect to those additional accruals, including the election of any benefit payment options available under the Plan, except that an Annuity Starting Date that is on or after Normal Retirement Age shall apply for any additional benefits accrued through reemployment after that date.

A Participant who is entitled to and who begins to receive Early Pension Benefits prior to age 55, but who has less than 42,500 hours with at least 300 hours in each of 23 Plan Years, will have a separate Annuity Starting Date* (as defined as the first day of the month following or coincident with the participant's 55th birthday) determined under this Section with respect to the benefit accrued on or after July 1, 1996 including the election of any benefit payment options available under the Plan.

*With respect to those participants described in the paragraph above who return to active employment and accrue at least 42,500 hours with at least 300 hours in each of 23 Plan Years, a separate Annuity Starting Date is needed as defined herein.

1.37 Effective for benefits payable under an RASD with an initial payment on or after August 1, 2006, the following definition shall apply. "Retroactive Annuity Starting Date" means an Annuity Starting Date that is affirmatively elected by a Participant that occurs on or before the date the written explanation of benefit payment options described in Article 7 is provided to the Participant. Benefits payable under a Retroactive Annuity Starting Date shall consist of an initial single sum payment attributable to the period beginning on the Participant's Retroactive Annuity Starting Date and ending with the first day of the first month immediately prior to the month in which the benefit is paid. The corresponding interest paid on such single sum payment shall be made for the period beginning with the first day of the month coinciding with the Retroactive Annuity Starting Date and ending with the first day of the first month immediately prior to the month in which the benefit is paid. The provisions for a Retroactive Annuity Starting Date in this Section 1.37 shall not apply in the case of an application made for a Surviving Spouse Pension or a Pre-Retirement Death Benefit.

1.38 "Alternate Payee" means a person designated in a Domestic Relations Order or a Qualified Domestic Relations Order to receive all or a portion of the Participant's benefits under the Plan, as permitted under applicable provisions of ERISA, the Internal Revenue Code and regulations issued thereunder.

1.39 "Applicable Mortality Table" applies to a distribution with an Annuity Starting Date on or after December 31, 2002. Notwithstanding any other Plan provisions to the contrary, the Applicable Mortality Table for purposes of adjusting any benefit or imitation under Section 415(b)(2)(B), (C), or (D) of the Internal Revenue Code and the Applicable Mortality Table used for purposes of satisfying the requirements of Section 417(e) of the Internal Revenue Code is the table prescribed in Revenue Ruling 2001-62. For completed applications received in the Fund office on or after July 1, 2008 for purposes of Section 417(e) of the Internal Revenue Code (but not for purposes of Section 415(b)(2)(B), (C), or (D)), the Applicable Mortality Table means the mortality table for the Plan Year under subparagraph (A) of Internal Revenue Code Section 430(h)(3) (without regard to subparagraph (C) or (D) of such section).

1.40 "Applicable Interest Rate" for completed applications received in the Fund office on or after July 1, 2008 means the segment interest rates as determined under Internal Revenue Code Section 417(e)(3)(C) for the April preceding the Plan Year in which the completed application is received.

1.41. 'Spouse' means a person to whom a Participant is legally married.

1.42. All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

1.43. "Compensation" shall mean wages within the meaning of Code section 3401(a) and all other payments of compensation in which an Employer is required to furnish the Participant with a statement under Code sections 6401, 6051 and 6052, if applicable, including elective amounts that are not includible in the gross income of the Employee by reason of Code sections 125,132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k) or 457(b) that are paid to or on account of the Participant from the Employer for that Plan Year. Compensation shall also include post-severance compensation (such as overtime, shift differential, commission, bonuses or other similar compensation) paid by the later of 2 ½ month after severance from employment or the end of the Plan year that includes the dates of severance from employment.

ARTICLE 2
PARTICIPATION

2.1

  1. Active Participant: Each person who becomes a Covered Employee after June 30, 1976, but prior to March 13, 1981, shall become an Active Participant on his Employee Contribution Date. Each person who becomes a Covered Employee after March 12, 1981, shall become an Active Participant on the first day of the month immediately following the month that his total Covered Hours during the current Plan Year and immediately preceding Plan Year first equal 750, provided, however, that each such person shall become a Participant no later than the first day of the sixth month immediately following the date upon which he completes a Year of Service. For the purposes of the foregoing, such person shall be deemed to have completed a "Year of Service" if he is credited with at least 750 Covered Hours during the twelve (12) consecutive month period beginning with the date on which he is first credited with a Covered Hour. Each person other than a Pensioner, a Covered Employee receiving disability benefits, or a Vested Employee, who was covered under the Plan as it existed on June 30, 1976, shall be covered under this Plan as an Active Participant. A Participant's status as an Active Participant shall cease immediately following the earliest of (1) death, (2) the date he becomes a Disabled Participant (see Article 7), (3) retirement under the Plan, or (4) completion of a Grace Period.

    Certain Active Participants may be offered full-time employment with the National IBEW, the National NECA or IBEW-NECA sponsored training programs. Such an entity offering such employment may or may not pay contributions to this Fund pursuant to a participation agreement. In order to assure Active Participants accepting such employment do not suffer a reduced expectancy of pension benefits, Active Participants accepting such full-time employment with such an entity which full-time employment does not result in direct or reciprocal contributions to this Plan shall be credited with 40 hours of Credited Future Service for each week of such full-time employment at an Employer Contribution Rate of zero dollars per hour. The credits granted shall thus in no fashion increase the Active Participant's Normal Pension Benefit but shall be deemed covered hours for all other purposes under the Plan, including, but not limited to, preventing a Grace Period and achieving eligibility for early and disability retirement benefits. This paragraph shall apply to Active Participants who accept such full-time employment on and after January 1, 2005. No Credited Future Service shall be granted under this paragraph for any such non-contributory employment on and after June 30, 2009. Proof in writing from the employing entity of such full-time employment and the period of employment is required before granting Credited Future Service under this paragraph.

  2. Inactive Participant: At the completion of a Grace Period, each Active Participant shall become an Inactive Participant, provided he does not become an Inactive Vested Participant according to Article 6. A Participant's status as an Inactive Participant shall cease immediately following the earliest of (1) death, (2) the date he becomes an Inactive Vested Participant, or accrues 750 Covered Hours within two consecutive Plan Years and again becomes an Active Participant, (3) retirement under the Plan, or (4) the date as of which he completes a Divesting Service Year while an Inactive Participant.

  3. Inactive Employee: An Inactive Participant who completes a Divesting Service Year subsequent to the date on which he became an Inactive Participant shall become an Inactive Employee at the end of such Divesting Service Year. An Inactive Employee shall not be entitled to any benefit from this Plan unless he becomes an Active Participant or an Inactive Vested Participant. A person's status as an Inactive Employee shall cease immediately following the earliest of (1) death, (2) the date he becomes an Inactive Vested Participant, or accrues 750 Covered Hours within two consecutive Plan Years and again becomes an Active Participant, (3) the date as of which he forfeits his Credited Vesting Service Years and benefit rights. An Inactive Employee shall forfeit his Credited Vesting Service Years and all rights to a benefit under this Plan at the end of the Plan Year in which the accumulated number of his consecutive Divesting Service Years (including any Divesting Service Years which occur during his Grace Period) first equals the greater of (A) five, or (B) the number of his Credited Vesting Service Years.

  4. Inactive Vested Participant: An Active Participant who completes a Grace Period, an Inactive Participant, or an Inactive Employee shall become an Inactive Vested Participant provided he fulfills the vesting requirements of Section 6.1 and/or 6.3, as applicable. A Participant's status as an Inactive Vested Participant shall cease immediately following the earliest of (1) death, (2) retirement under the Plan, or (3) the date he accrues 750 Covered Hours within two consecutive Plan Years and again becomes an Active Participant.

  5. Hours of work performed in covered service by first-year apprentices, both indentured and unindentured, shall be recognized for the purpose of meeting the 300-hour requirement for a Year of Service pursuant to the eligibility requirements for an early retirement benefit under Article 3, Section 3.2(c) of the Plan.

2.2 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 3
RETIREMENT DATE

3.1 Normal Retirement. The Normal Retirement Date for a Participant shall be the first day of the month coincident with, or next following the later of:

  1. The Participant's 65th birthday, or
  2. Effective July 1, 1988, the fifth anniversary of the Employee Contribution Date.

The Normal Pension Benefit payable to a Participant shall be determined under Article 4.

3.2 Early Retirement. Any Active Participant, Inactive Participant, or Inactive Vested Participant, who has completed 10 or more years of Total Credited Service (15,000 hours), at least two (2) years of which are Credited Future Service (3,000 hours), may elect to retire and receive an Early Pension Benefit at any time after the attainment of age 55. In this event, payment of Early Pension Benefits shall commence at said Participant's Early Retirement Date, which shall be the first day of the month coincident with, or next following, the date stipulated by the Participant as his retirement date, provided he has complied with the provisions of Article 9 and the Benefit payable to said Participant shall be as determined under Section 4.4 or 4.5. However, for an Active Participant retiring prior to July 1, 1979, age 45 shall be substituted for age 55 in this Section 3.2. In no event shall the date stipulated by the Participant as his Early Retirement date be more than twelve (12) months prior to the date of the application for Early Retirement benefits. A full monthly benefit for each month of a Retroactive Annuity Starting Date Early Retirement Pension shall only be payable for a month in which the eligible Participant's entire monthly benefit is not subject to suspension pursuant to Section 9.7. For all other months an appropriate percentage of each month's benefit, up to and including one hundred percent, shall be subject to suspension pursuant to Section 9.7. EXCEPTION: If an eligible Participant is registered for employment in violation of Section 9.7(b)(2)(iii) and/or 9.7(b)(2)(viii) in the month the application is received by the Fund or in any of the three months preceding said receipt and; the eligible Participant terminates all registration prohibited by Section 9.7(b)(2)(iii) and/or 9.7(b)(2)(viii) by the close of the month in which the application is received and; the eligible Participant would otherwise be entitled to receive full monthly benefits for one or more of those four months; then, in that event, the eligible Participant shall receive monthly benefits for those four months as if Section 9.7(b)(2)(iii) and/or 9.7(b)(2)(viii) did not apply to those four months but all other applicable provisions of Section 9.7 shall apply to those four months and all applicable provisions of Section 9.7 shall apply to all other periods of monthly pension payments.

  1. Through June 30, 1996, a Participant shall be entitled to receive Early Pension Benefits prior to age 55, provided that the Participant has completed at least 25 years of Total Credited Service (37,500 hours). (1,500 hours equals one Year of Credited Future Service). If the Total Credited Service required under this Section 3.2(a) is accrued before July 1, 1996, the Participant remains eligible to receive benefits accrued through June 30, 1996 at any time prior to age 55. If the Total Credited Service requirement under this Section 3.2(a) is satisfied on or after July 1, 1996, the Participant is eligible to retire prior to age 55 upon completion of such Total Credited Service and receive benefits accrued through June 30, 1996. However, the benefit accrued on or after July 1, 1996 is deferred to age 55 (on an unreduced basis), unless the criteria of Section 3.2(b) are satisfied, in which case such benefit is payable immediately, on an unreduced basis. A Participant will only be permitted to receive an Early Pension Benefit under this Section 3.2(a) if the Participant has accrued Credited Service before June 30, 1996.

  2. Beginning July 1, 1996, a Participant shall be entitled to receive an Early Pension Benefit prior to age 55 upon completion of Total Credited Service equal to 42,500 hours, provided that the Participant has earned at least 300 hours in each of 23 Plan Years. A Participant is entitled to receive his or her entire pension immediately upon satisfying both of these criteria and otherwise complying with the application procedures set forth in Article 9. For Participants who earned Credited Service under the Plan prior to June 30, 1996, the requirement of 300 hours in each of 23 plan years is eliminated and the participant will only be required to earn 300 hours per Plan Year in the number of Plan Years (after the Plan Year ended June 30, 1996) representing the difference between 23 and the years of Total Credited Service earned by the Participant as of June 30, 1996.

  3.  
    1. For a Participant who otherwise satisfies the eligibility criteria for an Early Pension Benefit set forth in Section 3.2(a) above, accrued benefits earned after June 30, 1996 are deferred to age 55 (on an unreduced basis) for a Participant who does not satisfy the requirements of having accrued Total Credited Service equal to 42,500 hours and 300 hours per Plan Year in the number of Plan Years (after the Plan Year ended June 30, 1996) equal to the difference between 25 and the Years of Total Credited Service earned as of June 30, 1996.
    2. For a Participant retiring on or after July 1, 1998, who otherwise satisfies the eligibility criteria for an Early Retirement benefit set forth in Section 3.2(a) above, accrued benefits earned after June 30, 1996 are deferred to age 55 (on an unreduced basis) for a Participant who does not satisfy the requirements of having Total Credited Service equal to 42,500 hours and at least 300 hours per Plan Year in the number of Plan Years (after the Plan Year ended June 30, 1996) equal to the difference between 23 years and the years of Total Credited Service earned as of June 30, 1996 (but not less than zero years).
  4. If a Participant applying for an Early Pension Benefit under this Section 3.2(d) has Credited Past Service, such Credited Past Service shall for purposes of eligibility be converted into hours. Such Credited Past Service shall be calculated as follows: one-quarter year of Credited Past Service shall be the equivalent of 375 hours. Total Credited Past Service considered under this Paragraph shall not exceed 22,500 hours.
  5. Hours of Work performed in covered service by first year apprentices, both indentured and unindentured, shall be recognized for the purpose of meeting the 300-hour requirement for a Year of Service pursuant to the eligibility requirements for an Early Pension Benefit under Article 3, Section 3.2(c) of the Plan.
  6. Except as otherwise required under the Plan, a Participant's Early Pension Benefits under this Plan shall be suspended as set forth in Section 1.16 if he has worked in "Non-Covered Electrical Employment" as that term is defined in Section 1.16 since the last contributions were reported to the Trust Fund on his behalf by a contributing Employer.
  7. If a Participant who was employed in Non-Covered Electrical Employment and returns to Covered Employment and earns five (5) years of Credited Service under the Plan following his return to Covered Employment, the Participant's Early Pension Benefits shall no longer be suspendible pursuant to Section 1.16 of the Plan. However, except as otherwise required under the Plan, should the Participant earn five (5) years of Credited Service after returning to Covered Employment and subsequently work in Non-Covered Electrical Employment, the Participant shall again be subject to the suspension rules of Section 1.16 of the Plan.

3.3 Postponed Retirement. Any Active Participant, Inactive Participant or Inactive Vested Participant, may elect to postpone his retirement and to remain in the service of his Employer after his Normal Retirement Date. A Participant who reaches the Normal Retirement Date and continues working as provided in Section 9.7(c) shall be given notice, as stipulated in Section 9.7(d), of his eligibility to retire and suspension of pension benefits until retirement, in accordance with applicable regulations. Payment of Postponed Pension Benefits to said Participant shall com­mence at his Postponed Retirement Date, which shall be the first day of any month coincident with, or next following, the date stipulated by the Participant as his retirement date, provided he has complied with the provisions of Article 9 with respect to application for pension benefits. The Active Participant's Postponed Pension Benefit shall be as determined under Section 4.6. In no event shall the date stipulated by the Participant as his Normal Retirement date be more than twelve (12) months prior to the date of the application for Normal Retirement benefits. A retroactive effective date shall only be approved if the Participant satisfied all of the eligibility requirements of a Normal Retirement pension as of the effective date.

3.4 Pensioner. A Participant shall become a Pensioner on the effective date of his retirement pursuant to this Article 3. Each Pensioner on June 30, 1976, who was not receiving a Disability Pension, and each such Pensioner who was receiving a Disability Pension and who had attained his Normal Retirement Date, shall continue in this status and shall receive the monthly pension to which he was entitled prior to July 1, 1976. For disability benefits effective on or after July 1, 2009, a Disabled Participant shall become a Pensioner upon commencement of his Disability Benefit pursuant to Article 7.

3.5 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 4
NORMAL PENSION BENEFIT

4.1 The Normal Pension Benefit to which a Participant shall be entitled under the Plan shall be a monthly pension on the Normal Form of Pension described in Section 5.2. A Participant shall be eligible to receive the first monthly payment of his Normal Pension Benefit on his Normal Retirement Date, if he is then living and if he has elected to receive this form of pension pursuant to Section 5.4.

4.2 Normal Pension. Subject to Section 4.2(d) (relating to freezing of benefits on completion of a Grace Period), Section 4.8 (relating to modification of benefits on the withdrawal of an Employer or insufficiency of contributions) and Section 4.9 (relating to limitations imposed by Section 415 of the Internal Revenue Code), the amount of monthly Normal Pension credited to any Participant retiring after December 31, 1989 shall be equal to the sum of (a), (b) and (c) as follows:

  1. The applicable Future Service Unit shown in the Benefit Schedule of this Section 4.2 multiplied by the number of years and fractions of years of the Participant's Credited Future Service earned prior to July 1, 1982, excluding any service forfeited under Section 2.1(c) or under the Plan prior to July 1, 1976.

  2. The sum of:

    1. the amount of Employer Contributions paid on behalf of the Participant since the period commencing the later of (i) July 1, 1982 or (ii) the Participant's most recent Employee Contribution Date, multiplied by 0.0225 (2.25%) and ending June 30, 1987, and

    2. the amount of Employer Contributions paid on behalf of the Participant since the later of (iii) July 1, 1987 or (iv) the Participant's most recent Employee Contribution Date, multiplied by 0.025 (2.5%) and ending June 30, 1996, and
    3. the amount of Employer Contributions paid on behalf of the Participant since the later of (v) July 1, 1996 or, (vi) the Participant's most recent Employee Contribution Date, multiplied by 0.0225 (2.25%) and ending June 30, 1999, and

    4. the amount of Employer Contributions paid on behalf of the Participant since the later of (vii) July 1, 1999 or, (viii) the Participant's most recent Employee Contribution Date, multiplied by 0.025 (2.5%) and ending December 31, 2003, and

    5. the amount of Employer Contributions paid on behalf of the Participant since the later of (ix) January 1, 2004 or, (x) the Participant's most recent Employee Contribution Date, multiplied by .0145 (1.45%), or .019 (1.9%) times those Employer Contributions paid on behalf of the Participant on and after the first of the month coincident with or next following the Participant's entitlement to receive an Early Pension Benefit pursuant to the first paragraph of Section 3.2 or pursuant to Section 3.2(b) if earlier or on and after the first of the month coincident with or next following the Participant's entitlement to receive a Normal Retirement pursuant to Section 3.1 of the Plan.

      For purposes of determining the amount of Normal Pension, Employer Contributions will include those contributions properly required to be made to the Fund on the Participant's behalf, pursuant to a Contribution Agreement, even though such contributions may not have been paid to the Fund due to the Employer's delinquency.

      Effective on and after July 1, 2010, notwithstanding the terms of Article 17, a Participant who is under age 55 and would otherwise have met the requirements of Section 3.2(b) for an Early Retirement Pension, shall be deemed to have met such requirements for purposes of the application of this sub-paragraph.

  3. $6.00 multiplied by the number of years and fractions of years of Credited Past Service provided said service has not been forfeited under Section 2.1(c) or under the Plan prior to July 1, 1976.

  4.  
    1. Upon completion of a Grace Period, a Participant's monthly Normal Pension shall be calculated as of the Participant's last Covered Hour.
    2. In no event may that portion of a Participant's monthly Normal Pension accrued as a result of Credited Past or Future Service rendered prior to completion of a Grace Period exceed the amount calculated under (1) above.
  5. In no event shall a Participant's Normal Pension be less than his Normal Pension determined as of any previous date on which he was eligible to retire.

For any Pensioner who retired prior to January 1, 1990, or for any Participant whose last Covered Hour occurred prior to July 1, 1976, the Normal Pension will be determined based on Plan provisions in effect prior to January 1, 1990.

BENEFIT UNIT BASED ON LAST COVERED HOUR PRIOR TO RETIREMENT
(2.25% OF EMPLOYER CONTRIBUTIONS BEGINNING 7/1/82)

LOCAL BENEFIT UNIT LAST DATE WORKED
11 $30.50 07/01/64 - 06/30/76
$30.60 07/01/76 - 11/30/76
$34.35 12/01/76 - 05/31/78
$37.15 06/01/78 - 05/31/79
$40.45 06/01/79 - 05/31/80
$49.45 06/01/80 - 01/14/82
$55.95 01/15/82 - 06/30/82
440 $25.00 01/01/71 - 05/31/77
$30.25 06/01/77 - 11/30/78
$35.05 12/01/78 - 11/30/79
$37.85 12/01/79 - 05/31/80
$40.45 06/01/80 - 11/30/80
$43.05 12/01/80 - 06/30/82
441  $13.25   03/01/71 - 09/30/72
$25.00 10/01/72 - 06/30/82
447 $13.25 07/01/71 - 09/30/72
$25.00 10/01/72 - 01/31/79
$29.60 02/01/79 - 12/31/79
477 $13.25 03/01/67 - 09/30/72
$25.00 10/01/72 - 05/31/75
$29.40 06/01/75 - 11/30/76
$30.25 12/01/76 - 05/31/77
$35.05 06/01/77 - 11/30/77
$36.45  12/01/77 - 05/31/78
$40.45 06/01/78 - 11/30/78
$42.40 12/01/78 - 05/31/79
$46.95 06/01/79 - 11/30/79
$48.25 12/01/79 - 05/31/80
$50.05 06/01/80 - 10/31/81
$52.05 11/01/81 - 06/30/82

Refers to Local Union representing Participant for preponderance of Covered Hours earned prior to 7/1/82. For a Participant with-preponderance of hours under Local 11, the Benefit Units for any service on or after 6/1/80 will be determined by the Local in whose jurisdiction the hours were worked.

Benefit Unit per 1500 hours determined by period in which last Covered Hour worked, except as noted in (4) and (5) below. If last date worked is after 6/30/82, then Benefit Unit for 6/30/82 will be used for all hours worked up to that date. Beginning 7/1/82, benefit amount of 2.25% of Employer contributions.

Applicable only to Participants who had not retired as of 9/1/75.

$49.45 rate used only for hours worked 6/1/80-1/14/82. Hours through 5/31/80 use Benefit Unit based on last hour worked through 5/31/80 -- if service is continuous, all hours through 5/31/80 would use $40.45 Benefit Unit.

$55.95 rate used only for hours worked 1/15/82-6/30/82. See (4) above for Benefit Unit on hours prior to 1/15/82.


4.3 Normal Pension Benefit. The monthly Normal Pension Benefit payable to an Active Participant at his Normal Retirement Date shall be fully vested as of and equal to the amount of monthly Normal Pension credited to the Participant at his Normal Retirement Date. The monthly Normal Pension Benefit payable to an Inactive Vested Participant or an Inactive Participant at his Normal Retirement Date shall be equal to the amount of monthly Normal Pension credited to the Participant up to the date of his leaving Covered Employment.

4.4 Early Pension Benefit for Active Participants. Early Pension Benefits for most Active Participants are described in Section 4.4(a); however, for those Active Participants retiring prior to July 1, 1979, Early Pension Benefits may be reduced as described in Section 4.4(b). Also, for Active Participants who have previously completed a Grace Period, the Early Pension Benefits described in Sections 4.4(a) and 4.4(b) may be modified as described in Section 4.4(c).

  1. Except as described in Section 4.4(c), relating to Active Participants who have previously completed a Grace Period, the Early Pension Benefit payable at the Early Retirement Date for an Active Participant retiring on or after July 1, 1979, will be equal to the amount of monthly Normal Pension credited to the Active Participant at his Early Retirement Date.

  2. Except as described in Section 4.4(c), relating to Active Participants who have previously completed a Grace Period, the Early Pension Benefit payable at the Early Retirement Date for an Active Participant retiring prior to July 1, 1979, will be equal to the amount of monthly Normal Pension credited to the Active Participant at his Early Retirement Date, reduced by 0.4% per month for each month by which his Early Retirement Date precedes the earlier of (1) the Participant's 55th birthday or (2) the date the Participant would have completed 25 years of Total Credited Service had he continued to earn Credited Future Service at the rate of one Future Service Credit each year.

  3. If, at the completion of a Grace Period, an Active Participant is not eligible to retire early, then any subsequent Early Pension Benefit payable with respect to service completed prior to the Grace Period will be reduced by 0.4% per month for each month by which his actual Early Retirement Date precedes his Normal Retirement Date. Early Pension Benefits attributable to service completed prior to the completion of the Grace Period will be computed as described above irrespective of whether the Participant has returned to Covered Employment and again become an Active Participant.

    However, for Active Participants commencing Early Retirement on or after April 25, 1995, the Grace Period or Periods will be waived and Early Pension benefits will not be reduced by the 0.4% per month as set forth above, if the following conditions are met: (A) if a Participant completes no more than two (2) Grace Periods, and if during the Grace Period or Periods the total number of Plan Years in which the Participant fails to earn at least 375 Covered Hours does not exceed a combined total of five (5) Plan Years; and (B) if combining all of the Participant's Credited Service, both prior to and following the Grace Period(s), the Participant completes at least 25 years of Total Credited Service prior to Early Retirement, then the Grace Period or Periods will be waived.

    1. However, for any Active Participant who has completed a Grace Period, and the loss of hours during the Grace Period was caused solely as a result of the Active Participant sustaining a factually demonstrable disability, his Early Pension Benefit shall not be reduced by the 0.4% per month as set forth above in Section 4.4(c).

  4. If an Active Participant was eligible to retire on June 30, 1979, then his Early Pension Benefit payable on his retirement date after June 30, 1979, shall not be less than the pension he would have received had he retired on June 30, 1979.

    For an Active Participant participating in the Plan who ceases to be a Covered Employee as a result of having become a signatory contractor to a Collective Bargaining Agreement with any IBEW Local Union sponsoring this Plan, the Grace Period shall be waived and Early Pension Benefits will not be reduced as set forth above while he remains signatory to the Collective Bargaining Agreement.

4.5 Early Pension Benefit for an Inactive Vested Participant or Inactive Participant.

  1. For any Inactive Vested Participant or Inactive Participant who completed his most recent Grace Period before becoming eligible to retire, the amount of monthly Early Pension Benefit payable at his Early Retirement Date shall be the amount of monthly pension benefit credited to such Inactive Vested Participant or Inactive Participant under Section 4.3, reduced by 0.4% per month for each month by which his Early Retirement Date precedes his Normal Retirement Date.

  2. Subject to Section 4.5(c), relating to Participants who have completed previous Grace Periods, for any Inactive Vested Participant or Inactive Participant who completed his most recent Grace Period after becoming eligible to retire (or on the date he becomes eligible to retire) the amount of monthly Early Pension Benefit payable at his Early Retirement Date shall be the amount of monthly pension benefit credited to such Inactive Vested Participant or Inactive Participant under Section 4.3, reduced as described in Section 4.4 for an Active Participant.

  3. If, at the completion of a Grace Period, the Participant is not eligible to retire early, then any subsequent Early Pension Benefit payable with respect to service completed prior to the Grace Period will be reduced by 0.4% per month by which his actual Early Retirement Date precedes his Normal Retirement Date. Early Pension Benefits attributable to service completed prior to completion of the Grace Period will be computed as described above irrespective of whether the Participant has returned to Covered Employment and again become an Active Participant.

  4. If a Participant was eligible to retire on June 30, 1979, then his pension benefit payable on his retirement date after June 30, 1979, shall not be less than the pension he would have received had he retired on June 30, 1979.

4.6 Postponed Pension Benefit. The monthly Postponed Pension Benefit payable to a Participant at his Postponed Retirement Date shall be equal to the amount of monthly Normal Pension credited to the Participant up to his Postponed Retirement Date provided that the Participant is working in suspendible employment after the Normal Retirement Date [as defined in Section 9.7(c)], is eligible for a Postponed Retirement Benefit and received the notice referred to in Section 3.3. If all of the preceding conditions are not met, then the Postponed Retirement Benefit Date shall be the greater of (a) and (b):

  1. the greater of:
    1. The Normal Retirement Benefit as of his Normal Retirement Date, increased 0.8% per month for each month that his Postponed Retirement Date follows his Normal Retirement Date, and
    2. The benefit determined as of his Postponed Retirement Date which is the Actuarial Equivalent of his Normal Retirement Benefit as of his Normal Retirement Date.
  2. the Normal Retirement Benefit determined as of his Postponed Retirement Date.

4.7 Accrued Benefit For a Participant Ineligible to Retire. If, for purposes of providing Participants with benefit information required by Federal law and regulations, or for any other purpose, it becomes necessary to determine an accrued benefit as of a given date for a Participant ineligible to retire, his accrued benefit as of such date will be equal to the monthly Normal Pension credited to the Participant as of such date.

4.8 Modifications.

  1. Notwithstanding any provision of the Plan to the contrary, if a Participant ceases to be credited with Covered Hours because the Contribution Agreement requiring his Employer to contribute on his behalf is not renewed, his Normal Pension shall be equal to the sum of (1), (2) and (3) as follows:

    1. the product of (A) and (B) where (A) is the number of years and fractions of years of Credited Future Service excluding any service forfeited under Section 2.1 (c) or forfeited under the Plan prior to July 1, 1976, or earned subsequent to June 30, 1982, and (B) is the Future Service Unit shown in the Benefit Schedule of Section 4.2 applicable on the effective date of termination of the Contribution Agreement determined as if the Participant had retired on the effective date of termination of the Contribution Agreement.

    2. the amount determined under Section 4.2(b)(1) or 4.2(b)(2), whichever is applicable.

    3. the Past Service benefit to which the Participant would be entitled on account of Credited Past Service, excluding any benefit attributable to Credited Past Service earned with the withdrawing Employer.

  2. Commencing July 1, 1977, if a Participant's Employer is a member of an Employer group that does not make contributions at a rate sufficient to fund benefits pursuant to recommendations of the actuary, such Participant's benefits will be reduced under rules to be adopted by the Board of Trustees.

4.9 Limitations. In no event will benefits provided by the Plan exceed the limitations imposed by §415 of the Internal Revenue Code.

A Participant's benefits or contributions provided under other qualified plans of an Employer may be required to be considered with this Plan in determining whether §415 of the Internal Revenue Code the limits have been exceeded. If the benefits provided by this Plan and such other qualified plans would exceed the limits imposed by §415 of the Internal Revenue Code, then benefits under the Plan will be reduced, so that, together with any reduction imposed by such other plans, the excess will be eliminated.

4.10 Directed Rollovers. Effective January 1, 1993, notwithstanding any provision of this Plan to the contrary that would otherwise limit a Distributee's election under this Plan, a Distributee may elect, at the time and in the manner prescribed by the Trustees, to have any portion of an Eligible Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in a Direct Rollover. For these purposes, the following definitions apply:

  1. 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 (or life expectancy) of the Distributee or the joint lives (or joint life expectancies) of the Distributee and the Distributee's designated beneficiary, or for a specified period of 10 years or more; any distribution to the extent that distribution is required under §401(a)(9) of the Internal Revenue Code; and the portion of any distribution that is not includible in gross income.

  2. An Eligible Retirement Plan is an individual retirement account described in §408(a) of the Internal Revenue Code, an individual retirement annuity described in §408(b) of the Internal Revenue Code, an annuity plan described in §403(a) of the Internal Revenue Code, or a qualified trust described in §401(a) of the Internal Revenue Code, that accepts the Distributee's Eligible Rollover Distribution. However, in the case of an Eligible Rollover Distribution to the surviving spouse, an Eligible Retirement Plan is an individual retirement account or individual retirement annuity. For Distributions made on or after July 1, 2008, an Eligible Retirement Plan shall also include a Roth IRA as defined in section 408(a) of the Code.

  3. 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 §414(p) of the Internal Revenue Code, are Distributee's with regard to the interest of the spouse or former spouse. Effective January 1, 2010, a non spouse beneficiary may receive a distribution in the form of a direct transfer to a Section 408(a) individual retirement account or a Section 408(b) individual retirement annuity but only to the extent permitted by all applicable provisions of the Code and all related regulations.

  4. A Direct Rollover is a payment by the Plan to the Eligible Retirement Plan specified by the Distributee.

4.11 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 5
AUTOMATIC, NORMAL AND OPTIONAL FORMS OF PENSION BENEFIT

5.1 Automatic Joint and Survivor Pension Form. A married Participant shall receive the benefit provided by the Actuarial Equivalent of his pension benefit as determined under Article 4 on the Automatic Joint and Survivor Pension Form, or, if he so elects, the Normal Form of Pension or an Optional Form of Pension. An unmarried Participant shall receive the Normal Form of Pension, or, if he so elects, the Social Security Adjustment Pension option.

Payments under the Automatic Joint and Survivor Pension Form shall be actuarially determined, based on the ages of the Pensioner and his spouse. The actuarially determined monthly pension shall be payable to the Participant as long as he survives. If at his death his spouse survives him, monthly payments will continue to his spouse during her remaining lifetime in an amount equal to 50% of the monthly pension payable to the Pensioner under this Automatic Joint and Survivor Pension Form.

All elections shall be subject to the provisions of Section 5.4. In no event shall any Covered Employee be entitled to retirement annuity payments which became payable more than one year before the date of application.

5.2 Normal Form of Pension. The Normal Form of Pension under the Plan shall be a life pension with 60 monthly payments guaranteed. Monthly payments shall be made to the Pensioner on the first day of each month commencing on his retirement date, if he is then living, terminating with the last payment due immediately preceding the Pensioner's death or with the last guaranteed monthly payment, whichever is later. Any payments to be made after the Pensioner's death shall be made in accordance with Section 8.2.

5.3 Optional Forms of Pension. The Optional Forms of Pension are as follows:

  1. Joint and 66-2/3% Survivor Pension. The Joint and 66-2/3% Survivor Pension option contains the same provisions as the Automatic Joint and Survivor Pension Form as described in Section 5.1, except that the reduced monthly payments to the Participant's surviving spouse shall be equal to 66-2/3% of the monthly pension payable to the Pensioner under this Joint and 66-2/3% Survivor Pension option.

  2. Joint and 100% Survivor Pension. The Joint and 100% Survivor Pension option contains the same provisions as the Automatic Joint and Survivor Pension Form as described in Section 5.1, except that the monthly payments to the Participant's surviving spouse shall be equal to the monthly pension payable to the Pensioner under this Joint and 100% Survivor Pension option.

  3. Joint and 75% Survivor Pension. The Joint and 75% Survivor Pension option contains the same provisions as the Automatic Joint and Survivor Pension Form as described in Section 5.1, except that the reduced monthly payments to the Participant's surviving spouse shall be equal to 75% of the monthly pension payable to the Pensioner under this Joint and 75% Survivor Pension Option.

  4. Social Security Adjustment Pension. Under this option, if a Participant retires before the date on which he becomes entitled to benefitsunder the Federal Social Security Act, and such date is before his 65th birthday, he may elect this Social Security Adjustment Pension option effective on the date he retires The amount of the monthly benefit payable to the Pensioner before his Social Security payments begin will approximately equal the sum of (a) the monthly benefit payable to the Pensioner under the Plan after his Social Security payments begin, and (b) the benefits expected to become payable to him monthly under the Federal Social Security Act in effect at his retirement date. No death benefit is payable under this form of pension.

  5. Joint and Survivor Social Security Adjustment Pension.
    1. Under this option, if a Participant retires and complies with the marriage requirements of Section 5.1 before the date on which he becomes entitled to
      a benefits under the Federal Social Security Act, and such date is before his 65th birthday, he may elect this Joint and Survivor Social Security Adjustment Pension option effective on the date he retires. Payments under this Form shall be actuarially determined, based on the ages of the Pensioner and his spouse. The actuarially determined monthly pension shall be payable to the Participant as long as he survives. The amount of the monthly Plan pension payable to the Pensioner before his Social Security payments begin will approximately equal the sum of (a) the monthly pension payable to the Pensioner under the Plan after his Social Security payments begin, and (b) the benefits expected to become payable to him monthly under the Federal Social Security Act in effect at his retirement date.

    2. Upon the Participant's death, prior to the commencement date of his Social Security Pension, monthly payments will continue to his surviving spouse. The amount of pension payable to the spouse shall be equal to 50%, 66⅔%, 75% or 100% (as elected) of the monthly Plan pension payable to the Pensioner before his Social Security payments began, and such amount shall continue to his surviving spouse until the earlier of the Participant's commencement date of his Social Security pension (if the Participant would have survived) or the spouse's date of death. If the spouse should survive to the Participant's commencement date of his Social Security pension (if the Participant would have survived) she shall receive monthly payments for her remaining lifetime in an amount equal to 50%, 66⅔%, 75% or 100% (as elected) of the monthly Plan pension payable to the Pensioner after his Social Security payments began. Upon the death of the Participant on or after the commencement date of his Social Security pension, his surviving spouse shall receive monthly payments for her remaining lifetime in an amount equal to 50%, 66⅔%, 75% or 100% (as elected) of the monthly Plan pension payable to the Pensioner after his Social Security payments began.
  6. Effective for retirement benefits with an initial effective date commencing on or after July 1, 1995, a Participant may select, pursuant to a qualified election, to receive payment of a Joint and 50% Survivor Pension, a Joint and 66⅔% Survivor Pension, a Joint and 75% Survivor Pension or a Joint and 100% Survivor Pension, which shall further provide that if the Participant's spouse predeceases the Pensioner, the Pensioner's monthly pension benefit shall be increased effective as of the first month following the death of the spouse to the monthly pension amount that the Pensioner would have received on his retirement effective date had the Participant elected the Normal Form of Pension. No reversionary benefit is payable in the event a Participant selects and receives a Joint and Survivor Social Security Adjustment Pension.

5.4 Election of any form of Pension must be made in writing. The period during which any such election may be made ("Election Period") shall be the one hundred eighty (180) day period ending on the date of benefit commencement which has been elected by the Participant. However, if the Participant has not received the description and explanation of the optional forms of benefits available under the Plan at least 30 days before his elected Benefit Commencement Date, the election period shall end 60 days after the date the description and explanation of optional benefit forms are mailed to the Participant. Any such election of pension form or Benefit Commencement Date shall be revocable during the Election Period. However, if benefits have commenced, no change in effective date or pension form shall be recognized. Nothing in this provision shall prevent a Participant from changing the effective date of his or her pension for a period of up to sixty days after the original effective date of his or her pension if such change shall enable the Participant to qualify for coverage under the Retiree Health Plan offered by the Board of Trustees of the Southern California IBEW-NECA Health Trust Fund.

For purposes of this Plan, the "Benefit Commencement Date" is the earlier of the date the initial pension check is returned to the Pension Trust Fund or 30 days after the date the initial pension check is issued by the Pension Trust Fund.

Once the Election Period has expired, a Participant may not change his form of pension. After benefits have commenced to a Participant pursuant to a Joint and Survivor pension form, the Participant may not designate a new spouse to be entitled to any benefits payable under said Joint and Survivor pension form.

If a Participant is married on the date his pension commences and is electing a form of pension other than a Joint and Survivor pension described under Sections 5.1, 5.3(a), 5.3(b) or 5.3(c), the election must be made jointly by the Participant and his spouse, and must be made only after the Plan Administrator has provided the Participant and his spouse with a written explanation of the results of an election not to elect a Joint and Survivor pension. Furthermore, the election of a form of pension other than a Joint and Survivor pension shall be subject to rules relating to designation of a beneficiary as provided in Article 8.

5.5

  1. Notwithstanding any inconsistent provision of the Plan, all distributions under the Plan shall be made in accordance with Code section 401(a)(9), including the incidental death benefit requirement of Code section 401(a)(9)(G), and Treasury Regulations sections 1.401(a)(9)-1 through 1.401(a)(9)-9. Specifically, distribution of the Participant's interest shall:
    1. be completed no later than the Required Beginning Date; or
    2. commence not later than the Required Beginning Date with distribution to the Participant made over the life of the Participant or joint lives of the Participant and a designated beneficiary or a period not longer than the life expectancy of the Participant or the joint life expectancies of the Participant and a designated beneficiary.
    For purposes of this Section 5.5, Required Beginning Date shall mean April 1 of the calendar year following the later of the calendar year in which the Participant attains age 70½ or the calendar year in which the Participant retires; provided, however, if the Participant is a five-percent owner (as defined in Code section 416), the Required Beginning Date shall be April 1 of the calendar year following the calendar year in which the Participant attains age 70½, regardless of the date that the five-percent owner retires.

    In the case of a Participant who retires in a calendar year after the calendar year in which he attains age 70½ and who has not commenced payments as of the first day of such later calendar year, the Plan benefit accrued by the Participant shall be actuarially increased, to the extent required by regulations, to take into account the period (commencing on the April 1 of the calendar year following the calendar year in which the Participant attains age 70½ and ending on the date payment commences) during which the Participant did not receive benefit payments from the Plan; provided, however, in the event that the benefits accrued during the period of such actuarial increase results in a benefit greater than the actuarially increased benefit, the benefit based on the continued accruals shall be paid.

    Effective January 1, 1997, at the option of the Participant, distribution of benefits will commence upon the later of April 1 of the calendar year following actual retirement or attainment of age 70½, if the Participant is not a 5% owner of an Employer. If the Participant opts to defer commencement of benefits under this Section until after actual retirement, the Participant shall file an election form with the Administrative Office of the Trust Fund and the Participant will be entitled to an actuarial adjustment in his benefits resulting from the delay in the commencement of benefits. However, in the event the Participant fails to file an election form with the Administrative Office of the Trust Fund and if the Participant is still employed in Covered Employment and is not a five-percent owner, the failure to file such an election form shall be deemed to be an election to defer benefits until April 1 of the calendar year following the Participant's actual retirement.

  2. In the event that a Participant dies prior to the date that distribution commences:
    1. any portion of the Participant's interest that is not payable to a designated beneficiary shall be dis­tributed not later than the end of the calendar year which includes the fifth anniversary of the date of the Participant's death; and
    2. any portion of the Participant's interest that is payable to a designated beneficiary shall be dis­tributed in accordance with subsection (i) above or over the life of the designated beneficiary (or over a period not extending beyond the life expectancy of the beneficiary), commencing not later than the end of the calendar year following the calendar year of the Participant's death or, if the beneficiary is the Participant's surviving spouse, commencing not later than the last day of the later of the calendar year in which the Participant would have attained age 70½ or the calendar year following the calendar year which includes the date of the Participant's death.

5.6 In lieu of any form of pension benefits properly payable other than a lifetime pre-retirement death benefit, an eligible Participant who is not married and who has a Registered Domestic Partner may elect to receive the payment of their pension on the basis of a Contingent Annuitant Option, in accordance with which they will receive a lower monthly amount with the provision that 50% of the lower amount is continued after their death for the lifetime of the Registered Domestic Partner designated by the Participant if the Registered Domestic Partner is living after the Pensioner's death.

If the Annuity Starting Date of a Participant's Disability Pension with the Contingent Annuitant Option occurs prior to the Participant's attainment of age 55, payment to the Contingent Annuitant, if any, will start on the later of the (a) the first of the month following the death of the Pensioner, or (b) the first of the month following the date the Pensioner would have obtained age 55 had they lived.

The amount payable to the Pensioner who has elected this option shall be determined as follows:

  1. For a Participant who is not retiring on a Disability or Partial Disability Pension, the pension amount shall be 93% if the Participant and Contingent Annuitant are the same age. The factor is increased by .3 percentage points for each year the Contingent Annuitant is older than the Participant, subject to the maximum factor of 99%; or decreased by .3 percentage points per each year that the Contingent Annuitant is younger than the participant.

  2. For a Participant who elects a Disability Pension or Partial Disability Pension the pension amount shall be adjusted by 81% if the Participant and Contingent Annuitant are same age. The factor is increased by .4 percentage points for each year the Contingent Annuitant is older than the Participant, subject to a maximum factor of 99%; or decreased by .4 percentage points for each year the Contingent Annuitant is younger than the Participant.

    If a Participant is under age 55 on the Annuity Starting Date, the factor determined in accordance with the above paragraph shall be modified as follows:
    1. The factor shall be increased by .25 percentage points for each year the Participant's age on the Annuity Starting Date is younger than age 55 but not younger than age 45; plus
    2. The factor shall be increased by .75 percentage points for each year the Participant's age on the Annuity Starting Date is younger than age 45.

      Such increase when added to the adjustment factor in the first paragraph of this Subsection (b) shall not exceed 99%.

5.6 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 6
VESTED PENSION ON TERMINATION OF COVERAGE

6.1 An Active Participant who completes a Grace Period prior to his Normal Retirement Date shall become an Inactive Vested Participant provided his service meets one of the following conditions:

  1. ten (10) or more Credited Vesting Service Years, or
  2. ten (10) or more years of Total Credited Service, at least two (2) of which are Credited Future Service, or
  3. five (5) or more years of Credited Vesting Service, provided that at least one (1) of the years was earned:
    1. after July 1, 1989, and
    2. while the Participant was not covered by a collective bargaining agreement between a Union and Employer.

6.2

  1. For Participants entering the Plan prior to July 1, 1999 who were required to accrue ten (10) Credited Vesting Service Years, and who did not work three hundred seventy-five (375) hours or more from July 1, 1998 through June 30, 1999, including more than one (1) Covered Hour after July 1, 1999, an Inactive Participant or an Inactive Employee shall become an Inactive Vested Participant at the completion of the Plan Year in which he accrues ten (10) Credited Vesting Service Years.

  2. For Participants entering the Plan on or after July 1, 1999, or for Participants who entered the Plan prior to July 1, 1999 and worked three hundred seventy-five (375) hours or more from July 1, 1998 through June 30, 1999, including more than one (1) Covered Hour after July 1, 1999, an Inactive Employee shall become an Inactive Vested Participant at the completion of the Plan Year in which he accrues five (5) Credited Vesting Service Years.

6.3

  1. A Participant entering the Plan on or after July 1, 1999 shall be a Vested Participant after having accrued five (5) Credited Vesting Service Years.

  2. Effective July 1, 1999, a Participant or an Inactive Employee, either of whom has worked 375 hours or more from July 1, 1998 through June 30, 1999, and has accrued five (5) or more Credited Vesting Service Years, including more than one (1) Covered Hour after July 1, 1999, shall be a Vested Participant. Commencing July 1, 1999, a Participant or an Inactive Employee, either of whom worked fewer than 375 hours from July 1, 1998, through June 30, 1999, must earn 750 hours of Service in a Plan Year after July 1, 1999, before divesting to become a Vesting Participant under this Section.

6.4 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 7
DISABILITY BENEFIT

7.1 Total and Permanent Disability. A Participant shall be deemed to have a condition of "Total and Permanent Disability" only if the Participant provides to the Trustees a determination by the Social Security Administration that the Active Participant is entitled to Disability Insurance benefits under the Federal Social Security Act.

  1. If an Active Participant's Covered Employment is terminated prior to his Normal Retirement Age due to Total and Permanent Disability, as defined above, he shall become a Disabled Participant entitled to receive a monthly disability benefit payable in accordance with Section 7.1(b), provided, however, that said Active Participant:
    1. Has accrued at least ten (10) years of Total Credited Service, including at least two (2) years of Credited Future Service; or has accrued at least ten (10) Credited Vesting Service Years, and
    2. Has been disabled for at least five (5) months in the case of disability benefits commencing after September 30, 1986 [or six (6) months in the case of disability benefits commencing prior to October 1, 1986]. However, the five (5) month waiting period shall not be applicable to conditions of Total and Permanent Disability which occur subsequent to July 1, 1997.
  2. The amount of monthly disability benefits payable to a Disabled Participant who becomes entitled to a Total and Permanent Disability benefit shall be equal to the amount of monthly Normal Pension benefits credited to the Disabled Participant at the date of his termination of employment due to Total and Permanent Disability, subject to the provisions of Sections 7.9 and 7.10 (relating to the Automatic Joint and Survivor Pension Form and Optional Forms of Pension).
  3.  
    1. If a Disability Pensioner who is deemed entitled to Total and Permanent Disability benefits under the Plan files an application for Disability Benefits which is received by the Trust Fund within thirty (30) months of the onset of disability, he or she shall be entitled to retroactive benefits up to a maximum of thirty (30) months from the date he first meets all of the eligibility requirements for a Total and Permanent Disability Benefit.
    2. If an application for Total and Permanent Disability Benefits is not received by the Trust Fund within thirty (30) months of the onset of disability, Total and Permanent Disability Benefits shall be payable effective the first of the month following receipt of the application for Total and Permanent Disability Benefits and no retroactive benefits shall be payable.
    3. Notwithstanding the foregoing for Social Security Disability Awards issued by the Social Security Administration on and after December 13, 2003, an application for Total and Permanent Disability Benefits shall be considered timely if the Social Security Disability Award is filed with the Fund Offices within two (2) years after the Social Security Administration issues its Award. In the case of a timely application a Participant who meets all applicable eligibility requirements shall receive Total and Permanent Disability Benefits retroactive to the first day of the month following the month of onset of Total and Permanent Disability as determined by the Social Security Administration. In the case of an untimely application a Participant who meets all applicable eligibility requirements shall receive Total and Permanent Disability Benefits commencing on the first of the month following the month in which the application was received and no retroactive benefits shall be payable.

7.2 Partial Disability. An Active Participant who is not totally and permanently disabled, as described in Section 7.1 above, but who has a physical or mental condition resulting from bodily injury, disease or mental disorder, which renders him incapable of performing the duties required of a Journeyman under the Inside Wiremans Agreement between the Union and the Association at any time during the remainder of his life, shall be deemed to have a condition of Partial Disability.

  1. If an Active Participant's Covered Employment is terminated prior to his Normal Retirement Age due to a Partial Disability, as defined above, he shall become a Disabled Participant entitled to receive a monthly disability benefit payable in accordance with Section 7.2(b), provided however that said Active Participant terminated Covered Employment on or after July 1, 1976, has satisfied the service requirements of Section 7.1(a)(i) and has been disabled for at least five (5) months in the case of disability benefits commencing after September 30, 1986 (or six (6) months in the case of disability benefits commencing prior to October 1, 1986). However, the five month waiting period shall not be applicable to applications for Partial Disability with an Annuity Starting Date on or after August 1, 2007.

  2. The amount of monthly disability benefit payable to a Disabled Participant who becomes entitled to a Partial Disability Benefit shall, subject to Sections 7.9 and 7.10, be equal to the amount of monthly Normal Pension credited to the Disabled Participant at the date of his termination of employment due to Partial Disability, reduced by 0.4% per month for each month by which the commencement date of the Participant's Partial Disability benefit precedes the earlier of:
    1. The first of the month coincident with or next following the Participant's 55th birthday, or
    2. the date the Participant would have completed 25 years of Total Credited Service had he continued to earn Credited Future Service at the rate of one Future Service Credit per year.

      In no event will the reduction under this Section 7.2(b) exceed 50%.
  3.  
    1. No Partial Disability Benefits shall be payable under the Plan until the first day of the month coincident with or next following the date on which the Disabled Participant has complied with the service requirements of Section 7.1(a)(i).
    2. If a Disability Pensioner who is deemed entitled to Partial Disability benefits under the Plan files an application for disability benefits which is received by the Trust Fund within thirty (30) months of the onset of disability, he shall be entitled to retroactive benefits up to a maximum of thirty (30) months from the date he first meets all of the eligibility requirements for a Partial Disability Benefit.
    3. If an application for Partial Disability benefits is not received by the Trust Fund within thirty (30) months of the onset of disability, Partial Disability benefits shall be payable effective the first of the month following receipt of the application for Partial Disability Benefits by the Trust Fund and no retroactive benefits shall be payable.
    4. In no event, however, will a Partial Disability benefit be payable for periods prior to July 1, 1983.

7.3 Termination of Benefit Payments to Disabled Participants.  Monthly payments to Disabled Participants shall terminate at the earliest of the following dates:

  1. The date of the Disabled Participant's death, unless
    1. the Automatic Joint and Survivor Pension Form or the Optional Forms of Pension described in Sections 7.9 and 7.10 is in effect, in which case payments may continue as provided in Section 7.10; or
    2. the Dependent's Benefit is payable pursuant to Section 8.6, in which case payments may continue as provided in Section 8.6; or
    3. Neither the Automatic Joint and Survivor Pension Form or the Optional Forms of Pension described in Sections 7.9 and 7.10 nor the Dependent's benefit described in Section 8.6 is in effect, but the Participant's death occurs before 60 monthly disability payments have been paid, taking into account all periods of disability. In this case, the remaining payments for the 60-month period described above will be paid to the Participant's designated beneficiary.
  2. The date this Plan is terminated.
  3. The date the Disabled Participant attains his Normal Retirement Age, at which time he shall become a Pensioner, entitled to a Pension Benefit under Section 7.11.
  4. The date as of which it is determined that the Disabled Participant is no longer suffering from a Total and Permanent or Partial Disability.
  5. Except as set forth in Section 7.7, any month in which the Disabled Pensioner engages in Suspendible Employment as that term is defined in Section 9.7(a)(1)(i)-(iii) of the Plan. However, in such event, if the Disabled Pensioner is no longer suffering from Partial Disability or Total and Permanent Disability, the Pensioner's Disability Benefits shall cease.
  6. All months prior to the Disabled Pensioner attaining Normal Retirement Age in the event the Disabled Pensioner engages in Non-Covered Electrical Employment as that term is defined in Section 1.16 of the Plan.

7.4 The existence of and/or the continuation of Total and Permanent or Partial Disability shall be determined by the Trustees. The Trustees may establish such rules and regulations for proof of the existence of a Total and Permanent or Partial Disability as they may deem proper. The Trustees, at no expense to the individual, shall have the right and opportunity to provide, as often as they deem necessary, for the examination of the person of any individual whose injury or sickness is the basis of claim. Upon receipt of an application for a Partial Disability Benefit, the Trustees shall, at their sole expense, provide for the independent medical examination of the Participant to determine whether the Participant meets the definition of Partial Disability as set forth in Section 7.2.

7.5 Nothing in this Section shall prevent a Pensioner receiving Partial Disability Benefits under the Plan from qualifying for a Total and Permanent Disability Benefits under the Plan as of the effective date of the Social Security Administration Disability Award if the medical condition causing Total and Permanent Disability is a continuation of or is causally related to the Partial Disability. For a Pensioner who on or after July 1, 2010 provides the Trustees acceptable evidence under Section 7.1 that he qualifies for a Total and Permanent Disability Benefit and whose Partial Disability Benefit under this section is subsequently converted to a Total and Permanent Disability Benefit, his Total and Permanent Disability Benefit shall be determined under the terms of Section 7.11(b).

7.6 A Participant who is disabled and unable to work in Covered Employment due to such disability, will be credited with 30 hours for each week of disability for determining Credited Future Service for vesting purposes only required to satisfy the eligibility criteria for either a Total and Permanent Disability Benefit or a Partial Disability Benefit.

7.7 A Disabled Participant may continue to receive monthly disability benefits during his or her return to work in Covered Employment for one initial period of up to three (3) consecutive months. Beginning June 1, 2001, a Disabled Participant shall be permitted to return to Covered Employment for a second period of up to three (3) consecutive months if the commencement date of the second period is at least nine (9) months after the first date benefits would otherwise be suspendible due to the Disabled Participant's work in Covered Employment following the initial three (3) month return to Covered Employment. A Disability Participant who works in Covered Employment for any period of time in excess of the allowable periods set forth in the preceding sentence, will not be entitled to receive monthly disability benefits for such month in which he or she engaged in Covered Employment. Effective for Applications for Partial Disability Benefits with an Annuity Starting Date on or after July 1, 2006, a retiree receiving Partial Disability Benefits under the Plan shall not have his benefits suspended for any month in which he is employed to serve as a Trustee for an IBEW-NECA Taft-Hartley Trust Fund. In order to secure the benefits of this Section and to avoid the suspension provisions of Section 9.7(b)(2)(iii) and other applicable provisions of Section 9.7(b) a Disabled Participant must notify the Fund Offices of the Disabled Participant's intent to utilize this Section prior to registration for employment at any hiring hall in the electrical construction contracting industry. The exceptions of this Section permitting a Disabled Participant to return to work in Covered Employment is intended to provide solely an opportunity to return to work by Disabled Participants and may not be utilized by Disabled Participants in an attempt to secure unemployment insurance benefits rather than returning to gainful employment.

7.8 If, prior to his Normal Retirement Age, it is determined that a Disabled Participant is no longer suffering from Total and Permanent or Partial Disability, said Disabled Participant shall become an Active Participant.

7.9 A married Participant who has not elected otherwise shall receive his disability benefit on the Automatic Joint and Survivor Pension Form. If the Disabled Participant and his spouse make an appropriate election in writing during the 180-day period prior to the commencement of disability payments, then monthly disability benefits shall be payable in accordance with either Section 7.10 with respect to one of the Optional Forms of Pension or Section 7.1(b) for Total and Permanent Disability benefits or Section 7.2(b) for Partial Disability benefits and the Automatic Joint and Survivor Pension Form shall not become effective.

Once the Election Period has expired, a Disability Pensioner may not change his form of benefit. Once disability benefits have commenced, a Disability Pensioner may not designate a new spouse with respect to such benefits. A Disability Pensioner, who is receiving a benefit pursuant to a disability application made on or after January 1, 2005, with benefit commencement prior to July 1, 2009, and who is receiving Total and Permanent Disability Benefits or unreduced Partial Disability Benefits under the Plan is entitled to make a new election of benefits at Normal Retirement Age, including, but not limited to designation of a new spouse under a Joint and Survivor Pension Form upon attainment of Normal Retirement Age.

7.10 Under the Automatic Joint and Survivor Pension Form, the monthly disability payments shall be actuarially reduced, based on the ages of the Disabled Participant and his spouse, to provide, if the Disabled Participant dies on or after the date of commencement of disability benefits, for monthly payments of 50% of the reduced amount to continue to his spouse during her lifetime. If his spouse dies prior to the commencement of disability benefits, the Automatic Joint and Survivor Pension Form shall not become effective and the monthly disability benefit payable to the Disabled Participant shall be determined pursuant to Section 7.1(b) for Total and Permanent Disability benefits or Section 7.2(b) for Partial Disability benefits.

A Disabled Participant may elect to receive an actuarially reduced benefit based on the pension benefit determined under Article 4 on one of the Optional Forms of Pension permitted under this Section 7.10, subject to the provisions of Section 7.9. The Optional Forms of Pension for Disabled Participants are as follows:

  1. Joint and 66-2/3% Survivor Pension. The Joint and 66-2/3% Survivor Pension option contains the same provisions as the Automatic Joint and Survivor Pension Form described in this Section 7.10, except that the reduced monthly payments to the Disabled Participant's surviving spouse shall be equal to 66-2/3% of the monthly pension payable to the Disabled Participant under this Joint and 66-2/3% Survivor Pension option.
  2. Joint and 100% Survivor Pension. The Joint and 100% Survivor Pension option contains the same provisions as the Automatic Joint and Survivor Pension Form described in this Section 7.10, except that the monthly payments to the Disabled Participant's surviving spouse shall be equal to 100% of the monthly pension payable to the Disabled Participant under this Joint and 100% Survivor Pension option.
  3. Joint and 75% Survivor Pension. The Joint and 75% Survivor Pension option contains the same provisions as the Automatic Joint and Survivor Pension Form as described in Section 7.10, except that the reduced monthly payments to the Disabled Participant's surviving spouse shall be equal to 75% of the monthly pension payable to the Disabled Pensioner under this Joint and 75% Survivor Pension Option.
  4. Joint and Survivor Pension with Pop-up. A participant may select, pursuant to a qualified election, to receive payment of a Joint and 50% Survivor Pension, a Joint and 66⅔% Survivor Pension, a Joint and 75% Survivor Pension or a Joint and 100% Survivor Pension, which shall further provide that if the Participant's spouse predeceases the Pensioner, the Pensioner's monthly pension benefit shall be increased effective as of the first month following the death of the spouse to the monthly pension amount that the Pensioner would have received on his retirement effective date had the Participant elected the Normal form of pension. No reversionary benefit is payable in the event a Participant selects and receives a Joint and Survivor Social Security Adjustment Pension.
  5. Social Security Adjustment Pension. If a Participant retires before the date on which he becomes entitled to a Primary Insurance Benefit under the Federal Social Security Act, and such date is before his 65th birthday, he may elect this Social Security Adjustment Pension option effective on the date he retires. The amount of the monthly benefit payable to the Pensioner before his Social Security payments begin will approximately equal the sum of (a) the monthly benefit payable to the Pensioner under the Plan after his Social Security payments begin, and (b) the Primary Insurance Benefit expected to become payable to him monthly under the Federal Social Security Act in effect at his retirement date. No death benefit is payable under this form of pension.
  6. Joint and Survivor Social Security Adjustment Pension.
    1. If a participant retires and complies with the marriage requirements of Section 5.1 before the date on which he becomes entitled to a Primary Insurance Benefit under the Federal Social Security Act, and such date is before his 65th birthday, he may elect this Joint and Survivor Social Security Adjustment Pension option effective on the date he retires. Payment under this Form shall be actuarially determined, based on the ages of the Pensioner and his spouse. The actuarially determined monthly pension shall be payable to the Participant as long as he survives. The amount of the monthly Plan pension payable to the Pensioner before his Social Security payments begin will approximately equal the sum of (a) the monthly pension payable to the Pensioner under the Plan after his Social Security payments begin, and (b) the Primary Insurance Benefit expected to become payable to him monthly under the Federal Social Security Act in effect at his retirement date.
    2. Upon the Participant's death, prior to the commencement date of his Social Security pension, monthly payments will continue to his surviving spouse. The amount of pension payable to the spouse shall be equal to 50%, 66⅔%, 75% or 100% (as elected) of the monthly Plan pension payable to the Pensioner before his Social Security payments began, and such amount shall continue to his surviving spouse until the earlier of the Participant's commencement date of his Social Security pension (if the Participant would have survived) or the spouse's date of death. If the spouse should survive to the Participant's commencement date of his Social Security pension (if the Participant would have survived) she shall receive monthly payments for her remaining lifetime in an amount equal to 50%, 66⅔%, 75% or 100% (as elected) of the monthly Plan pension payable to the Pensioner after his Social Security payments began. Upon the death of the Participant on or after the commencement date of his Social Security pension, his surviving spouse shall receive monthly payments for her remaining lifetime in an amount equal to 50%, 66⅔%, 75% or 100% (as elected) of the monthly Plan pension payable to the Pensioner after his Social Security payments began.

7.11 Disabled Pensioners attaining Normal Retirement Age. The amount and form of benefit due to a Disabled Pensioner attaining Normal Retirement Age shall be determined by the following:

  1. For disability applications received by the Pension Trust Fund on or after January 1, 2005, with benefit commencement prior to July 1, 2009, upon attainment of his Normal Retirement Age, a Disabled Pensioner who is receiving Total and Permanent Disability Benefits or unreduced Partial Disability Benefits under this Plan shall be entitled to make a new election of benefits in accordance with Section 417(f)(2)(B) of the Internal Revenue Code unless such benefits have otherwise ceased under the Plan. A Disabled Pensioner who is receiving reduced Partial Disability benefits under this Plan shall continue to receive benefits in the same amount and same form upon attainment of Normal Retirement Age unless such benefits have otherwise ceased under the Plan.
  2. For disability benefits commencing on or after July 1, 2009, upon attainment of his Normal Retirement Age, a Disabled Pensioner who is receiving Total and Permanent Disability Benefits or unreduced Partial Disability Benefits under this Plan shall have his monthly benefit reduced by one dollar. Payments will continue under the same form of benefit unless such benefits have otherwise ceased under the Plan. A Disabled Pensioner who is receiving reduced Partial Disability benefits under this Plan shall continue to receive benefits in the same amount and same form upon attainment of Normal Retirement Age unless such benefits have otherwise ceased under the Plan.

7.12 Each Participant who had not attained his Normal Retirement Date and who was receiving a Disability Pension on June 30, 1976 shall be a Disabled Participant under this Plan and shall continue to receive monthly disability benefits in the same amount as he was receiving prior to July 1, 1976.

7.13 In the event a Pensioner has applied for and is receiving an Early Pension Benefit and satisfies the criteria for a Disability Pension as defined above either on or after the effective date of his Early Pension Benefits, the Pensioner will have the option of converting his Early Pension Benefit to a Disability Pension if the Pensioner became disabled prior to or on the effective date of his Early Pension Benefit. In the event the Retiree's application to convert an Early Pension Benefit to a Disability Pension is approved by the Board of Trustees, the Retiree shall repay the Trust Fund the amount of all Early Pension Benefits received prior to the Disability Pension effective date through an offset of twenty-five percent (25%) of each monthly Disability Pension payment until all Early Pension Benefits are repaid in full.

The effective date of the Pensioner's Disability Pension converted under this section shall commence with the first day of the month following the date of the Pensioner's disability as established by the Social Security Administration Disability Award or the Board of Trustees or the date the Pensioner has accrued at least ten (10) years of Credited Service.

This Section is applicable to applications to convert an Early Pension Benefit to a Disability Pension received by the Pension Trust Fund on or after January 1, 2005.

For a Pensioner who on or after July 1, 2010 provides the Trustees acceptable evidence under Section 7.1 that he qualifies for a Total and Permanent Disability Benefit and who subsequently elects to convert his Early Retirement Benefit under this section to a Total and Permanent Disability Benefit, his Total and Permanent Disability Benefit shall be determined under the terms of Section 7.11(b).

7.14 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 8
DEATH BENEFIT AND DESIGNATION OF BENEFICIARY

8.1 Upon the death of an eligible Active Participant as defined in Section 8.4, his beneficiary shall be entitled to a death benefit, if any, as defined in Section 8.4. Upon the death of an eligible inactive Vested Participant as defined in Section 8.5, his beneficiary shall be entitled to a death benefit, if any, as defined in Section 8.5. Upon the death of a Pensioner or Disabled Participant, his designated beneficiary shall be entitled to a death benefit, if any, as defined in Section 8.2.

8.2 If the death of a Pensioner who is receiving the Normal Form of Pension occurs before the number of guaranteed monthly payments have been made, as defined in Section 5.2, the remaining guaranteed monthly payments shall be made to the Pensioner's designated beneficiary. Upon the death of a Pensioner who is receiving benefits on the Automatic Joint and Survivor Pension Form or an Optional Form of Pension, the death benefits, if any, shall be paid in accordance with Article 5. Upon the death of a disabled Participant, the death benefit, if any, shall be paid in accordance with Article 7 and Section 8.6.

8.3 If an Active or Inactive Vested Participant is married at the time of his death, his spouse is deemed to be the Participant's beneficiary. If the Participant is an eligible Active Participant at the time of his death, the spouse receives the Qualified Pre-Retirement Survivor Annuity set forth in Section 8.4(a). If the Participant is an eligible Inactive Vested Participant at the time of his death, the spouse receives the Qualified Pre-Retirement Survivor Annuity set forth in Section 8.5(a). These Qualified Pre-Retirement Survivor Annuity benefits may not be waived by any pre-nuptial agreement. Waivers of these Qualified Pre-Retirement Survivor Annuity benefits are subject to the requirements of Internal Revenue Code Sections 401 and 417 and all related Regulations, including but not limited to Regulation 1.401(a)-20. Waivers must be on forms supplied by the Fund. A spouse's signature consenting to a waiver must be notarized. The waiver must name the non-spouse beneficiary who will receive the pre-retirement death benefit. A spouse's waiver may only be revoked with the written consent of the Participant. The non-spouse beneficiary may be changed by the Participant only with the notarized written consent of the spouse. The Participant may revoke the non-spouse beneficiary designation by execution of a form provided by the Fund. Upon revocation any then spouse of the Participant becomes the beneficiary of the pre-retirement death benefit subject to a subsequent spousal waiver by way of the process set forth above.

Any unmarried Participant may name any pre-retirement death benefit beneficiary of the Participant's choice. If an unmarried Participant subsequently marries any prior designation of beneficiary by the participant is automatically revoked as to all pre-retirement death benefits which may be payable by the Plan. An unmarried Participant may change the pre-retirement death benefit beneficiary at any time. However, if an unmarried Participant, or a married Participant whose spouse has consented to a waiver, dies any benefits payable under Section 8.4 or 8.5 shall be paid to the Participant's surviving children under the age of 21 in accord with Section 8.4 or 8.5 prior to any payment to any other designated or preference beneficiary. All beneficiary designations must be on forms provided by or approved by the Fund offices. All designations must be signed and dated by the Participant. All revocations, except automatic revocations, must be on forms supplied or approved by the Fund Offices and must be signed and dated.

Any surviving spouse receiving pre-retirement death benefits pursuant to Section 8.4 or 8.5 may execute a beneficiary designation on a form supplied or approved by the Fund Offices. Any such designation is subject to benefits, if any, payable to the surviving children of the Participant pursuant to Section 8.4 or 8.5 which payments will be made to the Participant's surviving children under the age of 21 prior to any payment to the surviving spouse's designated beneficiary.

Payments to surviving spouses, designated beneficiaries and preference beneficiaries fully discharges periodic death benefit amounts payable under the Plan unless a contrary claim is received by the Fund prior to the periodic payment. In cases of contested periodic payments the Fund may commence an appropriate proceeding including but not limited to interpleader actions. In any such court action the Fund's attorney fees and costs shall be paid from any contested periodic payments deposited with the court.

8.4 Pre-retirement Death Benefit for Active Participants. Upon the death of an Active Participant after completing (A) five (5) Vesting Service Years or (B) ten (10) years of Total Credited Service, at least two (2) of which are Credited Future Service, or an Active Participant who has attained their Normal Retirement Date as defined in Section 3.1, benefits will be payable pursuant to (a) or (b) below, whichever is applicable.

  1. Married Participants:
    1. If the Participant is married, benefits will be paid to his surviving spouse in the form of a lifetime monthly pension in an amount equal to 50% of the Normal Pension Benefit credited to the Participant on the date of his death. Benefits will commence as of the first day of the month following the Participant's date of death.
    2. If the Participant is survived by children who are under age 21, a monthly benefit in the amount described in (1) above will be divided among all such eligible children. Each child shall cease to the eligible on the earlier of his death or attainment of age 21, and, if not continued under (3) below, payments shall cease when there are no longer any eligible children. No monthly amount is payable pursuant to this Subsection (2) for any month in which a monthly amount is payable to the surviving spouse pursuant to Subsection (1) above.
    3. 120 monthly payments are guaranteed to the spouse under this Section 8.4(a). If, when all payments due under (1) above, and if applicable, under (2) above have been paid, less than 120 total payments have been made, then the remainder of the 120 guaranteed payments will be paid to the beneficiary designated by the spouse, or if no beneficiary has been designated by the spouse, then in that event, the spouse's preference beneficiary determined under Section 8.7(b).
    4. If the Participant had satisfied the eligibility criteria for an unreduced Early Retirement benefit prior to his or her death, benefits will be paid to the Participant's Surviving spouse in an amount equal to the Joint and 100% Survivor pension as set forth in Section 5.3(b) of the Plan based on the Actuarial Equivalent of the pension benefit credited to the Participant as of the date of death. Benefits will commence as of the first day of the month following the Participant's date of death. Effective on and after July 1, 2010, notwithstanding the terms of Article 17, a Participant who is under age 55 and would otherwise have met the requirements of Section 3.2(b) for an Early Retirement Pension, shall be deemed to have met such requirements for purposes of the application of this sub-paragraph.
    5. In the Event an Active Participant and Spouse have completed pension option election forms within 31 days of the proposed annuity starting date, elected a Joint and 100% Survivor pension set forth in Section 5.3(b), and the Participant subsequently dies prior to the proposed annuity starting date then in that event the surviving spouse shall receive a lifetime monthly benefit equal to the Joint and 100% Survivor benefit previously elected.
  2. Unmarried Participants:
    1. If the Participant is unmarried, but is survived by children who are under age 21, then 50% of the Participant's monthly Normal Pension Benefit credited to the Participant on the date of his death will be divided among all such eligible children. Benefits will commence as of the first day of the month following the Participant's date of death. Each child shall cease to be eligible on the earlier of his death or attainment of age 21. If not continued under (2) below, payments shall cease when there are no longer any eligible children.
    2. 120 monthly payments are guaranteed under this Section 8.4(b). If no benefits are payable under (1) above, or if, when all payments due under (1) above have been paid, less than 120 monthly payments have been paid, the remainder of the guaranteed payments will be paid to the beneficiary designated by the Participant.

8.5 Pre-Retirement Death Benefit for Inactive Vested Participants.

  1. Married Participants:
    1. Upon the death of an Inactive Vested Participant who is eligible to retire pursuant to Article 3, his surviving spouse will be entitled to a lifetime monthly pension in an amount equal to 50% of the Normal Pension Benefit credited to the Participant on the date of his death. Benefits will commence as of the first day of the month following the Participant's date of death.
    2.  
      1. Upon the death of an Inactive Vested Participant who is not eligible to retire, his surviving spouse will be entitled to a lifetime monthly pension in an amount equal to 50% of the Normal Pension Benefit credited to the Participant on the date of his death. Benefits will commence as of the first of the month coinciding with or next following the Participant's 55th birthday.
      2. In lieu of the commencement date described in (i) above, a spouse may elect to have the benefit described in (i) above commence as of the first day of any earlier month following the Participant's date of death. In this case, the benefit will be the Actuarial Equivalent of the benefit described in (i) above.
  2. Unmarried Participants:
    1. Upon the death of an unmarried Inactive Vested Participant who is eligible for retirement under Article 3, benefits will be paid pursuant to Section 8.4(b) as if the Participant were an Active Participant.
    2. Upon the death of an unmarried Inactive Vested Participant who is not eligible for retirement under Article 3, benefits will be paid pursuant to Section 8.4(b) as if the Participant were an Active Participant, except the amount of the benefit will be actuarially reduced, pursuant to procedures described in Appendix II, to reflect the number of years and months by which the Participant's date of death precedes his 55th birthday.

8.6 Dependent's Benefit for Disabled Participants.

Upon the death of a Disabled Participant before his Normal Retirement Date, a monthly benefit equal to 50% of the disability pension payable to the Disabled Participant will be continued to his eligible children under age 21. The monthly pension will be divided equally among all such eligible children. A child shall cease to be an eligible child upon the earlier of death or attainment of age 21, and the benefit provided under this Section 8.6 shall cease when there are no longer any eligible children.

If at the Participant's death, the Joint and Survivor Pension Form described in Sections 7.6 and 7.7 is in effect, then the amount of each monthly payment to be divided among the children will be reduced by the amount of each monthly payment to the surviving spouse, so that no monthly payments will be made to the Participant's children during the surviving spouse's lifetime.

8.7

  1. Preference Beneficiary of Participant:

    If no beneficiary has been designated by a Participant or if the designated beneficiary predeceases the Participant, payment of any death benefit payable shall be made to the surviving person or persons in the first of the following classes of successor preference beneficiaries in which a member survives the Participant.
    1. His spouse;
    2. His children, including legally adopted children;
    3. His parents;
    4. His brothers and sisters.

    In determining such person or persons, the Trustees may rely upon an affidavit by a member of any of the classes of preference beneficiaries. Payment based upon such affidavit shall be full acquittance of any benefit payable under the Plan unless, before the payment is made, the Trustees have received written notice of a valid claim by some other person. If two or more persons become entitled to benefits as preference beneficiaries, they shall share equally. If no preference beneficiaries survive the Participant, then no death benefit shall be payable, except to provide for necessary funeral expenses of the participant.

  2. Preference Beneficiary of Spouse:

    If no beneficiary has been designated by a surviving spouse, or if the designated beneficiary predeceases the spouse, the preference beneficiary will be determined according to (a) above as if the spouse were a Participant.

8.8 Any death benefit payable to a minor may be paid to the legally appointed guardian of the minor or, if there be no such guardian, to such adults as have, in the opinion of the Trustees, assumed the custody and principal support of said minor.

8.9 In accord with the requirements of Internal Revenue Code Section 401(a)(9) and the regulations related thereto if a Participant dies before the Participant has begun to receive any distribution of their interest under the Plan and no benefits are payable to a surviving spouse in the form of a Qualified Pre-Retirement Survivor's Annuity or to the surviving children under age 21 then in that event the Participant's entire interest shall be distributed within 5 years of the Participant's death. The provisions of the Internal Revenue Code Section 401(a)(9) and related regulations override any distribution feature of this Plan which is inconsistent with that Section and related regulations.

If no benefits are or will be payable to a surviving spouse in the form of a Qualified Pre-Retirement Survivor Annuity, no benefits are payable to a surviving child under age 21 and more than 60 guaranteed monthly benefits are then payable then during such period the total paid per month pro-rata per beneficiary shall be equal to the result of the number of guaranteed payments times the guaranteed monthly amount divided by 60.

The 5 year rule described above does not apply to Qualified Pre-Retirement Survivor Annuity payments payable to a surviving spouse who is, under the Plan, deemed to be the designated beneficiary of the Participant. For purposes of payments under the Plan to the Participant's surviving children under age 21 those children are deemed the designated beneficiaries of the Participant and any surviving spouse. Distributions to these designated beneficiaries shall, except as described below, commence within one year of the death which results in these distributions. Distributions to these designated beneficiaries shall be in accord with the Internal Revenue Code Section 401(a)(9) and applicable regulations and shall be for a period not extending beyond the life expectancy of these designated beneficiaries. These payments may continue for periods longer than five years.

A surviving spouse entitled to Qualified Pre-Retirement Survivor Annuity may elect to defer receipt of the annuity to a date no later than the date the deceased Participant would have attained 70 ½. If such a surviving spouse dies before their distribution begins and no benefits are payable to surviving children under age 21 the 5 year rule shall apply to the surviving spouse's guaranteed benefit effective with the date of the surviving spouse's death.

8.10 Due to the restrictions of the Internal Revenue Code the Plan does not permit Living Trusts to be a named beneficiary. This limitation does not prevent a beneficiary or Participant from requesting automatic deposit of periodic payments payable to the Participant or beneficiary into a bank account which is held by a Living Trust.

8.11 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 9
ADMINISTRATION OF THE PLAN

9.1 The Trustees shall be the named fiduciaries for, and, as such, shall administer the Plan according to the powers and duties granted them in accordance with the Trust Agreement.

9.2 No Covered Employee shall be permitted to make any contributions to the Fund. The sole source of contributions to the Fund shall be Employer Contributions made in accordance with the applicable Contribution Agreement.

9.3 All applications for benefits under this Plan, whether on account of retirement, disability or death, and all elections and designations made by Participants or beneficiaries under this Plan shall be made in writing to the Trustees in the form and manner prescribed by the Trustees. The Plan Administrator will notify the participant when a benefit under the Plan is requested. Such notification shall include a general description of the material features, and an explanation of the relative values of, the optional forms of benefit available under the plan in a manner that would satisfy the notice requirements of IRC 417(a)(3) and Treas. Reg. 1.417(a)(3)-1. Any misrepresentation by the applicant shall constitute grounds for the denial, suspension or discontinuance of benefits, in whole or in part, for such applicant, or for the cancellation or recovery of benefit payment made in reliance thereon.

9.4 The Trustees shall have the right to require submission of all necessary information before any benefit is paid, including records of employment; proofs of date of birth, disability or death; and evidence of existence, marriage and dissolution of marriage. No benefit dependent in any way upon such information shall be payable unless and until the information so required has been furnished. Upon receipt of such information, the Trustees shall determine the eligibility of the applicant for such benefit, and shall notify the applicant of their determination and the amount of any benefit payable.

9.5 No benefit payments will be made under the Plan until an application is made therefore to the Trustees as provided in Section 9.3 and all information required by Section 9.4 has been submitted.

9.6 No Participant, Annuitant, Beneficiary or other person shall have any right or claim to benefits under this Plan, other than as specified in this Plan. If any person shall have a dispute with the Trustees as to eligibility, type, amount, or duration of such benefits, the dispute shall be resolved solely by the Trustees under and pursuant to this Plan, who shall have the power to construe in their sole discretion the provisions of the Plan and their decision shall be final and binding upon all parties thereto, subject to applicable federal law. The Trustees shall also have the authority to make findings of fact in any claim presented to the Board of Trustees and shall be the sole and exclusive judge of the credibility of any witness providing testimony or written statements for consideration by the Board of Trustees.

  1. Any person whose application for benefits under the Plan has been denied in whole or in part, or whose claim to benefits or against the Fund is otherwise denied, shall be notified in writing of such denial within 90 days (or 45 days for Partial Disability Pensions only) after receipt of such application or claim. An extension of time not exceeding 90 days (or 30 days for Partial Disability Pensions only) may be required by special circumstances; if so, notice of such extension, indicating what special circumstances exist therefore and the date by which a final decision is expected to be rendered, shall be furnished the claimant prior to the expiration of the initial 90-day (or 45 days for Partial Disability Pensions only) period.  For Partial Disability Pensions only, the time limited may be extended for up to another 30 days (for a total of 105 days).  The notice of denial shall set forth in a manner calculated to be understood by the claimant,
    1. the specific reason or reasons for the denial;
    2. specific reference to pertinent Plan provisions on which the denial 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;
    4. appropriate information as to the steps to be taken if the claimant wishes to submit his or her claim for review; and
    5. a description of the Plan's review procedures and the time limits applicable to such procedures, including a statement of the claimant's right to bring a civil action under ERISA Section 502(a) following exhaustion of the Plan's appeal procedures.
  2. Any such person may petition the Trustees for a review of the denial. A petition for review shall be in writing, shall state in clear and concise terms the reason or reasons for disputing the denial, shall be accompanied by any pertinent documentary material not already furnished to the Trustees, and shall be filed by the petitioner or his duly authorized representative with the Trustees within 60 days (or 180 days for Partial Disability Pensions only) after the petitioner received notice of the denial. The petitioner or his duly authorized representatives shall be permitted to review pertinent documents and submit issues and comments in writing.
  3. Upon good cause shown, the Trustees shall permit the petition to be amended or supplemented and shall grant a hearing on the petition before a hearing panel to receive and hear any evidence or argument which cannot be presented satisfactorily by correspondence. The failure to file a petition for review within such 60-day period (or 180 days for Partial Disability Pensions only) or the failure to appear and participate in any such hearing, shall constitute a waiver of the claimant's right to review of the denial, provided that the Trustees may relieve a claimant of any such waiver for good cause if application for such relief is made within one year after the date shown on the notice of denial.
  4. A decision shall be rendered upon appeal at the Board of Trustees' Meeting that immediately follows the Plan's receipt of a request for review, unless the request is made within 30 days of the Board of Trustees' Meeting. In such case, the Board may make a benefit determination on appeal at the second meeting following the Trust's receipt of the request for review. However, if special circumstances require an extension of time for processing, the decision shall be rendered not later than the third meeting following receipt of the request. Whenever special circumstances require an extension of time for processing, written notice of the extension shall be furnished to the claimant before the extension period begins.

    The Board of Trustees will notify the claimant of the benefit determination as soon as possible after the meeting, but not later than 5 days after the benefit determination is made. The petitioner shall be advised of the Trustees' decision in writing. The decision shall include specific reasons for the decision, written in a manner calculated to be understood by the petitioner and specific references to the pertinent Plan provisions on which the decision is based. 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 a statement of the claimant's right to bring a civil action under ERISA Section 502(a).
  5. The decision of the Trustees with respect to a claim or petition for reconsideration shall be final and binding upon all parties, including the petitioner and any person claiming under the petitioner. The provisions of this section shall apply to and include any and every claim to benefits from the Fund, and any claim or right asserted under this Plan or against the Fund, regardless of when the act or omission upon which the claim is based occurred.

9.7 Suspension of Benefits on Re-employment of a Pensioner.

  1. Suspendible Employment:
    1. Definition of Suspendible Employment–Prior to Attainment of Normal Retirement Age.

      Prior to attainment of Normal Retirement Age, except as otherwise provided in Section 9.7(a)(3), a Pensioner must refrain from any Suspendible Employment, which is defined as:
      1. work as an employee, employer, consultant, sole proprietor, or independent contractor in the jurisdiction of any Union whose members are Participants in this Plan or in the jurisdiction of any other Local Union of the IBEW that maintains a Related Plan;
      2. in work of the type performed by Participants of the Plan on the Pensioner's effective date of retirement; and
      3. which requires directly or indirectly the use of the same skills performed by Participants of the Plan on the Pensioner's effective date of retirement.
    2. Definition of Suspendible Employment–After Attainment of Normal Retirement Age.

      After attainment of Normal Retirement Age, except as otherwise provided in Section 9.7(a)(3), a Pensioner must refrain from working forty (40) or more hours in any calendar month in Suspendible Employment, which is defined as:
      1. work as an employee, employer, consultant, sole proprietor or independent consultant in the geographic jurisdiction of the Plan, which is defined under applicable Regulations as the State of California;
      2. in work of the type performed by Participants of the Plan on the Pensioner's effective date of retirement; and
      3. which requires directly or indirectly the use of the same skills performed by Participants of the Plan on the Pensioner's effective date of retirement.
    3. Permissible Employment After Commencement of Early and Normal Pension Benefits.

      Unless otherwise prohibited in this Plan, the following is a list of types and locations of employment that a Pensioner can perform which will not be deemed to be Suspendible Employment and will permit Pensioners to continue to receive Early and Normal Pension Benefits under the Plan. Prior written notice of such employment should be provided to the Trustees:
      1. Electrical Inspector, except as set forth in Section 9.7(b)(2)(vii) and 9.7(c)(1)(ii);
      2. Instruction or Training in the field of electrical work if the Pensioner is employed by an IBEW-NECA sponsored training program;
      3. Employment by an AFL-CIO-sponsored Council at the local, state or national level;
      4. Employment by the IBEW International Office, employment by the National Office of the National Electrical Contractors Association ("NECA") or employment with any IBEW or NECA affiliated entities;
      5. Employment as a salesperson at an electrical wholesale or manufacturing facility;
      6. Employment by Johnson Controls as an Estimator (not job-site based and not involved in the hiring and firing of electricians) from July 1, 2004 through January 31, 2006. During this limited period, such employment will not be deemed to be Suspendible Employment or Non-Covered Electrical Employment;
      7. Effective May 1, 2006, Employment with the State of California Department of Apprenticeship Standards;
      8. Effective July 1, 2006, notwithstanding any provision of the Plan to the contrary, a Pensioner who is serving as an Examining Officer of the Examining Board of an IBEW Local Union shall not have his benefits suspended for any month in which the only suspendible activity engaged in by the Pensioner is serving as an Examining Officer of the Examining Board of an IBEW Local Union; and
      9. Effective September 1, 2008 through October 31, 2013, not withstanding any provision of the Plan to the contrary, a Pensioner may work for a Prevailing Wage Compliance firm so long as the only clients of the firm are Public Agencies and/or Local Unions.
  2. Suspension of Benefits Prior to Normal Retirement Age.
    1. Prior to attainment of Normal Retirement Age, a Pensioner performing work in any month prohibited by Section 9.7(a)(1) and not described in Section 9.7(a)(3) shall have their monthly pension benefit suspended to the extent permitted by Revenue Procedure 2005-23. In addition, a Pensioner performing certain activities specified in Section 9.7(b)(2) prior to attainment of Normal Retirement Age shall have some or all of their monthly pension benefit suspended to the extent permitted by Revenue Procedure 2005-23.
    2. In accordance with Revenue Procedure 2005-23, effective June 1, 2004, benefits payable prior to Normal Retirement Age shall be suspended in accordance with the following provisions:
      1. Only benefits accrued on or after July 1, 1986 shall be suspended for any month in which a Pensioner holds a C-10 Electrical Contracting License and only benefits accrued on or after March 1, 1995 shall be suspended for any month in which a Pensioner holds any other form of Electrical Contracting License, including but not limited to a C-7 License.
      2. only benefits accrued on or after August 1, 2003 shall be suspended for any month in which a Pensioner holds (other than a C-7 or C-10 License) any other license (including but not limited to a B license) that permits electrical work to be conducted;
      3. only benefits accrued on or after July 1, 1986 shall be suspended for any month in which a Pensioner registers or remains registered for employment at any hiring hall in the electrical construction contracting industry, except registration for and/or work off of an IBEW Maintenance Dispatch list;
      4. only benefits accrued on or after March 1, 1995 shall be suspended for any month in which a Pensioner registers, remains registered for employment at any hiring hall for work off of an IBEW Maintenance Dispatch List, or works in maintenance as a result of being dispatched if working off of such list would result in pension contributions made on the Pensioner's behalf to an IBEW sponsored pension plan (except the NEBF);
      5. only benefits accrued on or after July 1, 1986 shall be suspended for any month in which a Pensioner actively seeks employment in the electrical construction contracting industry by means other than the union hiring hall;
      6. only benefits accrued on or after August 1, 2003 shall be suspended for any month in which a Pensioner is employed as an estimator, project manager, or similar position for an electrical con­tractor or other firm or business performing such services, if that electrical contractor or firm is signatory to a collective bargaining agreement with an IBEW Local Union. Such work for an electrical contractor or firm which is not signatory to a collective bargaining agreement with an IBEW Local Union is prohibited for all periods of benefit accrual;
      7. only benefits accrued on or after December 1, 2004 shall be suspended for any month in which a Pensioner works as an Inspector under a collective bargaining agreement requiring contributions to the Plan;
      8. except as otherwise provided herein, only benefits accrued on or after August 1, 2003 shall be suspended for any month in which a Pensioner registers, remains registered for employment at any hiring hall for work off of an IBEW Maintenance Dispatch List if working off of such list would not result in pension contributions made on the Pensioner's behalf to an IBEW-sponsored pension plan or for any month in which a Pensioner performs electrical maintenance which is defined as follows, if such work does not require contributions to this Plan or any Related Plan (excluding NEBF):

        Maintenance is defined as routine, recurring and usual work for the preservation, protection and keeping of any facility for its intended purpose in a safe and continually useable condition. The following are examples of work that is permissible under the definition of Maintenance:
        1. Moving receptacles; adding receptacles or lights to an existing circuit; and moving or adding switches to an existing circuit;
        2. Replacing a panel with a like-for-like panel, or replacing a motor with a like-for-like motor;
        3. Adding a circuit to an existing conduit home run.
        Maintenance does not include Electrical Construction (new or remodel). Performing Electrical Construction other than the items specifically described in Items 1-3 under Maintenance will constitute suspendible employment.
      9. only benefits accrued on or after March 1, 1991 shall be suspended for any month in which a Pensioner works for the Los Angeles Department of Water and Power in any classification other than a permanent employee. Work as a permanent employee for the Los Angeles Department of Water and Power by Pensioners prior to attaining Normal Retirement Age shall be considered as Civil Service and shall be subject to the provisions of Section 9.7(b)(2)(xi);
      10. only benefits accrued on or after August 1, 2003 shall be suspended for any month in which a Pensioner engages in work as an electronic or computer technician;
      11. except as otherwise provided herein, only benefits accrued on or after August 1, 2003 shall be suspended for any month in which a Pensioner performs electrical work in Civil Service at the city, state, county or federal level;
      12. only benefits accrued after December 1, 1990 shall be suspended for any month in which a Pensioner engages in Civil Service employment under an IBEW Local 11–City of Los Angeles Specialty Agreement effective December, 1990;
      13. only benefits accrued on or after March 23, 2000 shall be suspended for any month in which a participant instructs in any electrical training program or retail-based electrical instruction other than any IBEW-NECA sponsored training program;
      14. only benefits accrued on or after October 1, 1987 shall be suspended for any month in which a Pensioner engages in Non-Covered Electrical Employment, as defined in Section 1.16 hereof and as otherwise provided in the Plan. The suspension of benefits under this Section 9.7(b)(2)(xiv) shall be applied in addition to the suspension provisions of other applicable provisions of this Section and Section 1.16(h); and
      15. Only benefits accrued on and after August 1, 2003 shall be suspended for that month in which a Pensioner performs the task of inspecting electrical work for quality control purposes and no other Suspendible Employment. Such quality control work has always been distinguished from acting as an Electrical Inspector enforcing codes, regulations and/or ordinances on behalf of a public agency or hospital. Inspecting electrical work for quality control purposes does not include supervising the day-to-day work of the employees of Electrical Sub-Contractors. Depending upon the circum­stances, any such day-to-day supervision will constitute Suspendible Employment and/or Non-Covered Electrical Employment subject to the applicable provisions of this Plan.
    3.  
      1. In the Case of a Pensioner who engages in Non-Covered Electrical Employment under Section 9.7(b)(2)(xiv), except as otherwise provided in the Plan, his pension shall resume upon cessation of such employment but no earlier than attainment of his Normal Retirement Age. In no event shall his pension benefits be suspended beyond the Pensioner's attainment of his Mandatory Commencement Date.
      2. In no event, however, will a Pensioner's benefit be suspended for any month which includes or follows attainment of his Normal Retirement Age unless the Pensioner is engaged in Suspendible Employment on or after his Normal Retirement Date which would cause a suspension under Section 9.7(c), below.
  3. Suspension of Benefits on or after Normal Retirement Age.

    On or after attainment of Normal Retirement Age and prior to the first day of the month following the month in which the Pensioner attains age 70½, a Pensioner who has not attained age 70½, must refrain from working 40 or more hours in any calendar month in Suspendible Employment as defined as follows:
    1. work as an employee, employer, consultant, sole proprietor, or independent contractor in the geo­graphic jurisdiction of the Plan, which is defined by applicable Regulations as the State of California;
    2. work of the type performed by Participants of the Plan on the Pensioner's effective date of retirement; and
    3. which requires directly or indirectly the use of the same skills performed by Participants of the Plan on the Pensioner's effective date of retirement.
    For purposes of the foregoing, a Pensioner who has attained Normal Retirement Age and completes 40 or more hours of service in such Suspendible Employment during any calendar month shall be deemed to be in violation of the aforesaid requirement and his pension benefit otherwise payable shall be suspended for such month. For purposes of this Section 9.7(c), "hour of service" means each hour of such Suspendible Employment for which the Pensioner is paid or entitled to payment. In addition, a Pensioner performing the following work in the State of California specified in Section 9.7(c)(1)(i)-(viii) for forty (40) or more hours per month after attainment of Normal Retirement Age shall have some or all of their monthly pension benefit suspended to the extent permitted by Revenue Procedure 2005-23.
    1. In accordance with Revenue Procedure 2005-23, effective June 1, 2004, benefits payable on or after Normal Retirement Age shall be suspended in accordance with the following provisions:
      1. only benefits accrued on or after August 1, 2003 shall be suspended for any month in which a Pensioner is employed as an estimator, project manager, or similar position for an electrical con­tractor or other firm or business performing such services, if that electrical contractor or firm is signatory to a collective bargaining agreement with an IBEW Local Union. Such work for an electrical contractor of firm which is not signatory to a collective bargaining agreement with an IBEW Local Union is prohibited for all periods of benefit accrual;
      2. only benefits accrued on or after December 1, 2004 shall be suspended for any month in which a Pensioner works as an Electrical Inspector under a collective bargaining agreement requiring contributions to the Plan;
      3. except as otherwise provided herein, only benefits accrued on or after August 1, 2003 shall be suspended for any month in which a Pensioner performs electrical maintenance which is defined as follows, if such work does not require contributions to this Plan or any Related Plan (excluding NEBF):

        Maintenance is defined as routine, recurring and usual work for the preservation, pro­tection and keeping of any facility for its intended purpose in a safe and continually useable condition. The following are exam­ples of work that is permissible under the definition of Maintenance:
        1. Moving receptacles; adding receptacles or lights to an existing circuit; and moving or adding switches to an existing circuit;
        2. Replacing a panel with a like-for like panel, or replacing a motor with a like-for-like motor;
          Adding a circuit to an existing conduit home run.
        Maintenance does not include Electrical Construction (new or remodel). Performing Electrical Construction other than the items specifically described in Items 1-3 under Maintenance will constitute Suspendible Employment.
      4. only benefits accrued on or after March 1, 1991 shall be suspended for any month in which a Pensioner works for the Los Angeles Department of Water and Power in any classification other than a permanent employee. Work as a permanent employee for the Los Angeles Department of Water and Power by Pensioners on or after attainment of Normal Retirement Age shall be considered as Civil Service and shall be subject to the provisions of Section 9.7(c)(1)(vi);
      5. only benefits accrued on or after August 1, 2003 shall be suspended for any month in which a Pensioner engages in work as an electronic or computer technician;
      6. except as otherwise provided herein, only benefits accrued on or after August 1, 2003 shall be suspended for any month in which a Pensioner performs electrical work in Civil Service at the city, state, county or federal level;
      7. only benefits accrued on or after December 1, 1990 shall be suspended for any month in which a Pensioner engages in Civil Service employment under an IBEW Local 11–City of Los Angeles Specialty Agreement effective December, 1990;
      8. only benefits accrued on or after March 23, 2000 shall be suspended for any month in which a participant instructs in any electrical training program or retail-based electrical instruction other than any IBEW-NECA sponsored training program; and
      9. Only benefits accrued on and after August 1, 2003 shall be suspended for that month in which a Pensioner performs the task of inspecting electrical work for quality control purposes and no other Suspendible Employment. Such quality control work has always been distinguished from acting as an Electrical Inspector enforcing codes, regulations and/or ordinances on behalf of a public agency or hospital. Inspecting electrical work for quality control purposes does not include supervising the day-to-day work of the employees of Electrical Sub-Contractors. Depending upon the circum­stances, any such day-to-day supervision will constitute Suspendible Employment and/or Non-Covered Electrical Employment subject to the applicable provisions of this Plan.
  4. Notices.
    1. Upon commencement of pension benefits, the Trustees shall notify the Pensioner of the Plan rules governing suspension of benefits, including the identity of the industries and geographic area covered by the Plan applicable to Pensioners who have attained their Normal Retirement Date and the geographic area of Related Plans applicable to Pensioners who have yet to attain their Normal Retirement Date. If benefits have been suspended and payment resumed, new notification shall, upon resumption, be given to the Pensioner if there has been any material change in the suspension rules or the identity of the industries or geographic area covered by the Plan.
    2. A Pensioner shall notify the Plan in writing within 31 days after starting any work of a type that is or may be prohibited and without regard to the number of hours of such work.

      If a Pensioner has worked in Suspendible Employment in any month after Normal Retirement Age and has failed to give timely notice to the Plan of such employment, the Trustees shall presume that he worked for forty (40) or more hours in such month and any subsequent month before the Pensioner gives notice that he has ceased Suspendible Employment. The Pensioner shall have the right to overcome such presumption by establishing that his work was not in fact an appropriate basis, under the Plan, for suspension of his benefits.

      The Trustees shall inform all Pensioners at least once every twelve (12) months of the reemployment notification requirements and the presumptions set forth in this paragraph.
    3. A Pensioner whose pension has been suspended shall notify the Trust Office when Suspendible Employment has ended. The Trustees shall have the right to hold back benefit payments until such notice is filed with the Plan.
    4. A Pensioner may ask the Trustees whether a particular employment will constitute Suspendible Employment. The Trustees shall provide the Pensioner with their determination.
    5. The Trustees shall inform a Pensioner of any suspension of his benefits by notice given by personal delivery or first class mail during the first calendar month in which his benefits are withheld. Such notice shall include a description of the spe­cific reasons for the suspension, copy of the relevant provisions of the Plan, reference to the applicable regulations of the U.S. Department of Labor, and a statement of the procedure for securing a review of the suspension. In addition, the notice shall describe the procedure for the Pensioner to notify the Trustees when his Suspendible Employment ends. If the Trustees intend to recover prior overpayments by offset, the suspension notice shall explain the offset procedure and identify the amount expected to be recovered, and the periods of employment to which they relate.
  5. Recommencement of Suspended Pensions:
    1. Effective for requests for recommencement of pension benefits received by the Trust Fund on or after July 1, 2002, payments will be made retroactive to the first day of the month following the last month for which benefits are suspended under Section 9.7(b) or 9.7(c), above. However, in no event shall the effective date of the recommencement of pension benefits be more than twelve (12) months prior to the date the Pensioner notifies the Trust Fund of the cessation of Suspendible Employment or Covered Hours. Pay­ments shall resume no later than the first day of the third calendar month in which the employee ceases to be engaged in Suspendible Employment provided that the Pensioner has notified the Trust Fund that he has ceased such Suspendible Employment. In no event shall a Pensioner's benefits be suspended beyond the Pensioner's Mandatory Commencement Date, unless the Pensioner otherwise elects to defer distribution of pension benefits.
    2. If a Pensioner's benefits are suspended under Section 9.7(b)(2)(xiv), in addition to the month-to-month suspension, his retirement benefits shall be administered in accordance with Article I, Section 1.16(h) of the Plan. In no event shall his pension benefits be suspended beyond the Pensioner's attainment of his Mandatory Commencement Date.
    3. If a Pensioner's early retirement pension has been reduced pursuant to Section 4.4 or 4.5 and is suspended prior to the Participant's attainment of Normal Retirement Age, the benefit upon resumption shall be actuarially adjusted, if required, to assure monthly early retirement pension benefits to be received are at least the actuarial equivalent of the Pensioner's accrued benefit at the Pensioner's Normal Retirement Age.
    4. If the Social Security Adjustment Option Pension (pursuant to Section 5.3(c)) or the Joint and Survivor Social Security Adjustment Option (pursuant to Section 5.3(d)) is suspended and if such pension, at the time of suspension, is greater than the amount of Early Pension Benefit (pursuant to Section 4.4 or 4.5) that the Participant could have received if he would have elected such benefit under the Normal Form of Pension, such Social Security Adjustment Pension shall be actuarially adjusted.
  6. Review of Suspensions and Advice as to Potential Employment.
    A Pensioner shall be entitled to a review of a determination suspending his benefits by written request filed with the Trustees within sixty (60) days of the notice of suspension. The same right of review shall apply, under the same terms, to a determination by or on behalf of the Trustees that contemplated employment will be prohibited.
  7. Recovery of Overpayments.
    If payments are erroneously continued during a period of employment for which benefits may be suspended under Section 9.7(b) or 9.7(c) above, the Trustees shall have the right to recover any such payments erroneously made. However, with respect to any payments due the Pensioner, such recovery shall be subject to the following limits:
    1. In the case of an initial pension payment due following a suspension of benefits under Section 9.7(b) or (c), 100% of such initial payment may be withheld.
    2. In the case of any pension payment other than a payment described in (1) above, only 25% of such monthly pension benefit may be withheld.
    3. If a Pensioner dies before recoupment of overpayments has been completed, deductions shall be made from the benefits payable to his surviving Spouse, subject to the 25% limitation on the rate of deduction.
    4. Nothing in this provision shall prohibit the Trustees from adopting additional rules related to the recovery of overpayments from Pensioners who erroneously received pension benefits, including but not limited to, reserving the right to file suit, creditor's claims or the pursuit of other legal action for the recovery of benefits which have been suspended.
  8. Article 9.7 has been amended in its entirety effective June 1, 2004 as a reforming remedial amendment pursuant to Revenue Procedure 2005-23. This Subsection (h) has been added to reflect remedial notices and payments to be issued by the Plan. Effective June 1, 2004, all provisions of the Plan requiring suspension of benefits on a month-to-month basis that were added through amendment after the inception of the Plan shall be subject to this reforming amendment, as previously set forth herein. The provisions of Article 9, Section 9.7, providing for a month-to-month suspension of benefits for Suspendible Employment, including but not limited to Non-Covered Electrical Employment, shall continue to apply to all benefit accruals and to the remedial payments under this Subsection.

    For purposes of interest to be added to some remedial payments under this Subsection, the rates of interest shall be per annum and at the rate in effect at the time of the remedial payment for pensions with a retroactive annuity starting date as set forth in Section 1.36 of the Plan.

    Certain Plan amendments were enacted after inception of the Plan that had the affect of restricting a pensioner's ability to work in the electrical trade, craft or industry after early retirement. Revenue Procedure 2005-23 has clarified that only post-amendment benefit accruals maybe suspended pursuant to such amendments. Section 9.7(b)(2)(i)-(xiv), 9.7(c)(1)(i)-(viii) and other related sections of the Plan reflect the effect of Revenue Procedure 2005-23 such that only post-amendment benefit accruals are subject to a month-to-month suspension by a pensioner for having engaged in such employment or activity during any month or portion thereof.
    1. Pensioners whose pre-amendment benefit accruals were suspended: Not later than January 1, 2006, the following actions shall be completed in terms of these Pensioners. First, they shall be identified by the Plan. Second, their pre-amendment benefit accruals in the form of pension previously elected shall be calculated. Third, for each month on and after June, 2004, for which their benefit was not otherwise subject to monthly suspension, they shall receive a monthly payment equal to that pre-amendment monthly benefit accrual portion of their Pension. Fourth, for any such monthly payment not paid on the first day of the month in the month due, they shall also receive appropriate interest through the date of actual payment. Fifth, they shall be advised that any post-amendment benefit accrual portion of their Pension, if any, shall be payable upon their cessation of the Suspendible Employment or activity in question unless some other provision of the Plan requires an earlier payment.
    2. Active Vested Participants and Inactive Vested Participants with pre-amendment benefit accruals who were previously determined ineligible to com­mence receipt of any Benefit solely due to their having engaged in suspendible employment or activity as set forth in the applicable Subsection of Section 9.7(b)(2) and 9.7(c)(1): Not later than January 1, 2006, the following actions shall be completed in terms of these participants who were not receiving a benefit as of June 1, 2004. First, they shall be identified by the Plan. Second, their pre-amendment benefit accrual as set forth in the applicable Subsection of Section 9.7(b)(2) and (c)(1) shall be calculated. Third, they shall be advised that, subject to all other requirements of the Plan, this remedial Amendment permits them to commence receipt of a Pension based upon their pre-amendment benefit accruals as set forth in the applicable Subsection of Section 9.7(b)(2) and (c)(1), with a retroactive annuity starting date as early as June 1, 2004, plus payment of appropriate interest or, in the alternative, an appropriate later annuity starting date of their choice which may or may not include interest depending upon the date they elect. Fourth, they shall be advised the balance of a Pension elected reflecting benefits accrued on and after the effective date of the applicable Subsection of Section 9.7(b)(2) and (c)(1) shall be suspended on a month-to-month basis unless an earlier payment is required by other provisions of the Plan. Fifth, they shall be advised that any Pension they elect shall remain subject to the month-to-month suspension of benefit provisions of the Plan. Sixth, they shall be supplied with a pension application contempora­neous with the aforesaid notice. Seventh, they shall be advised that should they desire a June 1, 2004 retroactive annuity starting date, they must file an application within six (6) months of the Plan's mailing of notice of this Amendment.
    3. Active Vested Participants and Inactive Vested Participants with pre-amendment benefit accruals who have not previously applied for a Pension due to their having engaged in Suspendible Employment or suspendible activity: These participants shall receive a copy of this Amendment. They shall be advised those who file an application within six (6) months of the Plan's mailing of notice of this Amendment and who meet all other requirements of the Plan shall be offered, as to their pre-amendment benefit accrual as set forth in the applicable Subsection of Section 9.7(b)(2) and 9.7(c)(1), the same annuity starting date options, including if applicable interest, as are provided under Subsection 9.7(h)(2) above.

      All other terms and conditions of the Plan shall remain in full force and effect. This new Subsection shall be construed and interpreted to assure good faith compliance with Revenue Procedure 2005-23. No provision has been included for non-pensioners for periods of post-Normal Retirement Age work of 40 hours or more per month in Suspendible Employment as defined in Section 9.7(c) because such activity prior to the mandatory commencement date of pension benefits has, at all relevant times, always constituted Suspendible Employment under the Plan. In addition, no provision has been included for participants or retirees who engage in any Suspendible Employment prior to attainment of Normal Retirement Age as defined in Section 9.7(a)(1) because such activity has always, at all relevant times, constituted Suspendible Employment under the Plan resulting in a suspension of pension benefits for any month in which a pensioner engages in Suspendible Employment. No actuarial increase for delayed retirement beyond Normal Retirement Age is available for any month in which the participant engaged in an activity which would result in the suspension of monthly pension benefit payments.

9.8 If a Pensioner is re-employed in Covered Employment, he may accrue additional benefits, subject to the following limitations:

  1. No additional benefits will be accrued unless the Participant earned at least 750 Vesting Hours during the Plan Year in which the additional benefits were accrued. However, if a retired participant does not have sufficient hours in one Plan Year to meet such requirement, these hours shall be carried over one Plan Year and shall be added to the hours in that Plan Year for purposes of determining qualification under the 750 Vesting Hour Rule. Alternatively and without duplication of credits, Covered Hours earned since the last year for which additional benefits have accrued shall be cumulated and earn additional benefits if 1,500 or more Covered Hours have been earned.
  2. Any additional pension benefits earned for employment after attainment of the Mandatory Commencement Date will commence annually by April 1. Any other additional pension benefits due a Pensioner shall commence in accord with the following provisions of this Sub-Section. In all cases if a Pensioner dies before the commencement of payment of additional pension benefits the death benefits attributable to the additional pension benefit shall commence with the first payment following the Pensioner's death.

    Additional benefits earned due to Covered Employment commenced prior to Normal Retirement Age shall be payable as a separate and distinct annuity. While the benefit suspended due to Covered Employment is subject to resumption in its preexisting form upon advice to the Fund that suspendible employment is terminated, subject to any withholding for previously overpaid benefits, the additional annuity benefit earned is subject to the application and election requirements of Article 5 and all related provisions of the Plan. The additional annuity shall have a separate and distinct annuity starting date. The additional annuity may be paid in any form other than in the form of a Social Security Adjustment Pension. No form of Social Security Adjustment Pension shall be available as a part of this election process.

    If the Pensioner's pension benefit was not in suspension on their Normal Retirement Date any additional benefits earned due to Covered Employment commenced on or after attainment of Normal Retirement Age will be payable in the following pension form:
    1. If the Pensioner originally elected to receive the Normal Form of Pension or if the Pensioner had originally elected any Joint and Survivor form of Pension, but the marriage in effect on the commencement date of such original pension has since terminated, then his additional pension will be payable in the form of a life pension with monthly payments to the Pensioner for as long as he lives. However, if the Pensioner is remarried as of the recommencement date, the Pensioner and the spouse shall elect a form of pension with respect to the additional pension as provided in Article 5.
    2. If the Pensioner originally elected to receive the Automatic Joint and Survivor Pension Form, or the Joint and 66⅔% Survivor Pension, Joint and 75% Survivor Pension or the Joint and 100% Survivor Pension, he will receive his additional pension in the same form as originally selected, provided the marriage in effect on the commencement date of the Pensioner's original pension is still in effect. The Actuarial Equivalent value for such additional pension will be based on the ages of the Participant and his spouse on the commencement date of the additional pension.
    3. If the Pensioner originally elected to receive the Joint and Survivor Social Security Adjustment Pension, he will receive his additional pension in the form of an Automatic Joint and Survivor Pension, Joint and 66⅔% Survivor Pension, Joint and 75% Survivor Pension or Joint and 100% Survivor Pension (whichever corresponds to the percentage originally elected by the Participant when he elected the Joint and Survivor Social Security Adjustment Option) provided the marriage in effect on the com­mence­ment date of the Pensioner's original pension is still in effect. The actuarial equivalent value for such additional pension will be based on the ages of the Pensioner and his spouse on the commencement date of the additional pension.

9.9 The Trustees or the insurance company, if any, which is providing benefits under the Plan to the Pensioner, shall have the right to require satisfactory evidence that a Pensioner is living on each and every date when a pension benefit is due such Pensioner. In the absence of such evidence, when required, any payments due shall not be made until such evidence has been received.

9.10 If, in the judgment of the Trustees, the Pensioner or Disabled Participant is unable to care for his affairs because of illness, accident, or incapacity, either mental or physical; then, any payment due, unless claim shall have been made therefore by a duly appointed legal representative, may be paid to the spouse or other person or party deemed by the Trustees to have incurred expense for the Pensioner or Disabled Participant. Any such payment shall be a payment for the account of the Pensioner or Disabled Participant, and shall be a complete discharge of the liability therefore under the Plan.

9.11 Neither the Trustees, nor any Employer, shall in any manner be liable for or subject to the debts or liabilities of any Covered Employee or any individual entitled to Pension Benefits. No individual entitled to any benefits under the Plan shall have any right to alienate, hypothecate or encumber his interest in any benefits under the Plan and such benefits shall not in any way be subject to claim of his creditors or liable to attachment, execution or other process of law. This provision shall not apply to any transfer made pursuant to a federal tax lien or a qualified domestic relations order.

9.12 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

9.13. Overpayments and Underpayments of Benefits

  1. Recoupment of Overpayments.

    If the Fund discovers that a Participant, Beneficiary, Annuitant, Alternate Payee or any other person has erroneously received an overpayment of pension benefits to which the person was not entitled in accordance with the provisions of this Plan, the Trustees shall recover the overpayments in the following order of priority:
    1. The Trustees shall first seek recoupment of the overpayment in one lump sum payment;
    2. If lump sum recoupment is not agreed to, the Trustees shall seek recoupment of the overpayment including interest attributable to the overpayment based on the Plan's interest rate utilized by the Trust Fund for Retroactive Annuity Starting Dates by entering into an installment repayment agreement;
    3. If a lump sum or an installment repayment agreement is not agreed to within sixty days of notification by the Trust Fund to the Participant, Beneficiary, Annuitant, Alternate Payee or other persons of the overpayment, or if the Participant, Beneficiary, Annuitant, Alternate Payee or other person fails to abide by the installment repayment agreement, the Trustees shall obtain recoupment of the over­payment by reducing future benefit payments so that the actuarial present value of the reduction is equal to the amount of the overpayments plus interest. For purposes of interest to be charged to payments under this Subsection, the rate of interest shall be per annum at the rate in effect at the time of discovery of the overpayment for pensions with a Retroactive Annuity Starting Date as set forth in Section 1.37 of the Plan.
    "Nothing in this provision shall prohibit the Trustees from taking additional action related to the recovery of overpayments from a Participant, Beneficiary, Annuitant, Alternate Payee or any other person who erroneously received pension benefits, including but not limited to, reserving the right to file suit or the pursuit of other legal action for the recovery of such overpayments.

  2. Underpayment
    In the event that the Trustees determine that the payment of benefits has resulted in an underpayment, future payments shall be increased to the correct periodic amount while the amount of past under­payments shall be paid in a lump sum with appropriate interest. For purposes of interest to be added to the remedial payment under this Subsection, the rates of interest shall be per annum and at the rate in effect at the time of the remedial payment for pensions with a Retroactive Annuity Starting Date as set forth in Section 1.37 of the Plan.

ARTICLE 10
AMENDMENT OF THE PLAN

10.1 Subject to the terms and conditions of the Contribution Agreement, the Trust Agreement, and any applicable laws or regulations, the Trustees may at any time or times amend or modify the Plan, retroactively or otherwise, in any respect consistent with the intent of the Plan and with the requirement that at all times the Plan will conform to the applicable requirements of the Labor Management Relations Act, 1947, as amended, the Employee Retirement Income Security Act of 1974, as amended, and to the Internal Revenue Code, and that Employer Contributions will be deductible as an item of expense by the Employer for income tax purposes. No amendment or modification of this Plan may reduce any benefits payable to Pensioners who have retired prior to such amendment or modification. No amendment shall change the vesting schedule under the Plan unless each Vested Participant and each other Participant who is accruing Vesting Service Years as of the later of the date of adoption of or the effective date of such amendment shall have a nonforfeitable percentage of his accrued benefit at least as great as the nonforfeitable percentage determined under the vesting schedule in effect prior to such amendment. No such amendment or modifica­tion shall result in any portion of the funds to be recovered by any Employer, the Association or the Union, or cause or result in the expenditure of any portion of the funds for any purpose other than for the exclusive benefit of Participants or benefi­ciaries, or for any payment or expenditure authorized under the Plan or the Trust Agreement. No amendment or modification of the Plan shall be adopted which will in any way impair the actuarial soundness of the Plan.

10.2 If the Trust Agreement or the Contribution Agreement is amended by the insertion, modification, or deletion of any provisions relating to or affecting this Plan, the Trustees, to the extent legally permissible and in conformity with Section 10.1, shall amend the Plan to effectuate the intent of such amendment of the Trust Agreement or the Contribution Agreement.

10.3 If this Plan is amended, the Trustees shall furnish a copy of such amendment promptly to all Participants, Retirees, Beneficiaries, as well as the Associations, the Union, the Employers, and the Plan administrator.

10.4 It is intended that the Plan will constitute a qualified pension plan under the applicable provisions of the U.S. Internal Revenue Code, as now in effect or hereafter amended. Any modification or amendment of the Plan may be made retroactively, if necessary or appropriate, to qualify or maintain the Plan as a plan meeting the requirements of the applicable provisions of the U.S. Federal tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder.

10.5 No contribution to the Trust required from any Employer by the Trust Agreement shall be recoverable by Employers, or be used for or diverted for purposes other than for the exclusive benefit of the individuals entitled to benefits under the Plan, provided, however, that in the event any Employer shall make any payment to the Trust in excess of the amount required by the Trust Agreement, then (1) to the extent such excess payments by such Employer are currently deductible under Section 404 of the Internal Revenue Code, such excess contributions may be applied in satisfaction of any succeeding payment due from such Employer, or, in the discretion of the Trustees, may be refunded to the Employer within six (6) months of the date the Trustees discover the mistake, and (2) to the extent such excess payments are not currently deductible under Section 404 of the Internal Revenue Code, such excess contributions shall be returned to the Subscribing Employer.

10.6 In no event shall this Plan be merged or consolidated with any other plan, nor shall there be any transfer of assets or liabilities from this Plan to any other plan, unless immediately after such merger, consolidation or transfer, each Covered Employee shall (if the Plan then terminated) be entitled to receive a benefit immediately after the merger, etc., which is equal to or greater than the benefit he was entitled to immediately before the merger, etc. (if the Plan had then terminated).

10.7 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 11
TERMINATION OF THE PLAN

11.1 It is expected that the Plan will be continued in effect indefinitely and that each Employer will continue to make contributions required by the applicable Contribution Agreement. Subject to the Trust Agreement, the Trustees reserve the right to institute proceedings to effect a partial or total termination of the Plan.

In the event of a partial or total termination of the Plan, the Normal Pension Benefit, credited to each Participant as of the date of termination will be nonforfeitable.

11.2 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 12
SPECIAL PROVISIONS

12.1 The provisions of Article 12 shall apply only to Participants who were covered under this Plan on July 1, 1976.

12.2 Retirement Date. The Normal Retirement Date for said Participant shall be the earlier of (a) or (b) as follows:

  1. The Normal Retirement Date determined pursuant to Article 3 of this Plan, or
  2. The Normal Retirement Date determined under the Plan as it existed on June 30, 1976.

12.3 Normal Pension Benefit. The Normal Pension Benefit for said Participant shall be the greater of (a) or (b), as follows:

  1. The Normal Pension Benefit as determined under this Plan, or
  2. The Normal Pension Benefit accrued through June 30, 1976, under the Plan as it existed on that date.

12.4 Vested Benefit on Termination of Coverage.

  1. The vested rights at any time after June 30, 1976, of said Participant, who was a Covered Employee on July 1, 1976, shall be the greater of (1) or (2) as follows:
    1. Vested rights as determined under Article 6 of this Plan, or
    2. Vested rights as determined under the vesting provisions of the Plan as it existed on June 30, 1976.
  2. The vested rights of said Participant, who was a Vested Employee on June 30, 1976, and who does not become an Active Participant under this Plan after June 30, 1976, shall continue to be the same vested rights he had as of June 30, 1976.
  3. The vested rights of said Participant, who was a Vested Employee on June 30, 1976, and who does become an Active Participant under this Plan shall be computed according to Article 6 of this Plan. In no event, however, shall his future vested benefit be less than the vested benefits he had as of June 30, 1976.

12.5 Disability Benefit. The commencement date for monthly disability benefit payments or said Participant, who was a Covered Employee on July 1, 1976, shall be determined as of the earlier of (a) or (b) as follows:

  1. The date disability payments would commence pursuant to Article 7 of this Plan, or
  2. The date disability payments would commence under the Plan as it existed on June 30, 1976.

12.6 Contributions Made to the Plan Under a Salting Agreement. Any and all contributions transmitted to the Pension Trust Fund pursuant to a duly executed Salting Agreement between the Participant and a sponsoring IBEW Local Union to this Plan or any other Related IBEW Local Union shall be accepted by the Trustees and benefits shall be accrued under the Plan by the Participant on whose behalf such contributions were made. Services or employment performed by a Participant pursuant to a duly executed Salting Agreement shall not constitute Non-Covered Electrical Employment as described in Section 1.16. No grace period shall be applied during any period in which a Participant was working under a duly executed Salting Agreement.

12.7 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 13
PROVISIONS APPLICABLE TO FORMER IBEW LOCAL UNION 440 PENSION PLAN PARTICIPANTS

13.1 Under all circumstances, benefits payable under this Plan shall be at least equal in value to the benefits accrued under the IBEW Local Union 440 Pension Plan as that plan existed on August 31, 1975.

13.2 To the extent that benefits are payable under Section 13.1 of this Article 13, such benefits may be paid under the terms and conditions of the IBEW Local Union 440 Pension Plan as it existed on August 31, 1975, provided, however, that in all instances the values of such benefits shall not exceed the values as established on September 1, 1975, provided further that Section VI (a)(2)(d) and Section VI (a)(2)(e) of the Pension Plan of Local Union 440 International Brotherhood of Electrical Workers of Riverside County be amended as follows: the phrase "two consecutive calendar years," wherever it appears in these sections, shall be replaced by the phrase "twenty-four consecutive calendar months"

13.3 Irrespective of Sections 13.1 and 13.2, if benefits are otherwise payable under this Plan to Participants who were former IBEW Local Union 440 Pension Plan participants, then, to the extent that benefits are payable under Section 13.2, the benefits otherwise payable under this Plan shall be reduced in an amount which has the Actuarial Equivalent value of such benefits. All benefit reductions shall be determined by the actuary for the Plan.

13.4 The retirement benefits payable to former IBEW Local Union 440 Pension Plan participants who are retired and receiving a monthly pension as of August 31, 1975, shall be increased, effective September 1, 1975, to $6.00 per month for each year of Credited Past Service. No death benefits shall be paid pursuant to this provision.

13.5 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 14
PRO RATA PENSIONS

14.1 Purpose. Pro Rata Pensions are provided under this Plan for Employees:

  1. Who would otherwise be ineligible for a pension because their years of employment have been divided between employment creditable under this Plan and employment creditable under another pension plan; or
  2. Whose pension would otherwise be lower because of such division of employment.

14.2 Related Plans. By resolution duly adopted, the Board of Trustees may recognize another pension plan as a Related Plan. Recognition of employment under the Related Plan, and payment of Pro Rata Pensions with respect to such employment will be governed by the reciprocity agreement between this Plan and the Related Plan, subject to the rules of this Article 14.

14.3 Related Hours. The term "Related Hours" means hours of employment that are creditable under a Related Plan. Effective July 1, 2010, for the sole purpose of
determining eligibility for an Early Retirement Benefit prior to age 55 with Total Credited Service of 42,500 hours under Section 3.2(b), Related Hours shall be treated as if they were Total Credited Service under this Plan only if such hours were worked prior to July 1, 2010.

14.4 Related Credit. The term "Related Credit" means credited service, or portions thereof, creditable to an Employee under a Related Plan, recognizable by this Plan pursuant to the terms of a reciprocity agreement.

14.5 Combined Pension Credit. The term "Combined Pension Credit" means the total of an Employee's Related Credit plus the Pension Credit accumulated under this Plan (hereinafter referred to as Southern California Credit) including but not limited to the Future Service Unit requirement.

14.6 Non-Duplication. An Employee shall not receive double credit for the same period of employment.

14.7 Eligibility for a Pro Rata Pension. An Employee who is retired shall be eligible for a Pro Rata Pension if he would be eligible for a Pension under this Plan if his Combined Pension Credit were treated as Southern California Credit.

14.8 Break in Service. Related Hours shall be considered in determining whether an Employee has incurred a Divesting Service Year.

14.9 Amount of Pro Rata Pension. The monthly amount of the Pro Rata Pension payable under this Plan is determined in the same way as the Normal, Early Retirement, Disability, Vested Pension or Survivor Pension is determined, based solely on the Pension Credits earned under this Plan. The benefit unit on which a Pro Rata Pension is based may not exceed the benefit unit applicable to the Participant on his last Covered Hour under this Plan.

14.10 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 15
TRANSFER OF CONTRIBUTIONS

15.1 Purpose. By allowing for a transfer of contributions between participating Funds, a pension is provided or enhanced under this Plan for employees who would otherwise be ineligible for a pension because their years of employment have been divided between different pension plans or, if eligible, whose pension would be less than the full amount because of such division of employment. The provisions of this Article are operative only if the Electrical Industry Pension Reciprocal Agreement has been adopted by the signatory Funds in whose jurisdiction the employee works.

Transfer of contributions to or from this Plan shall or may be made pursuant to forms or methods as set forth in the Electrical Industry Pension Reciprocal Agreement from time-to-time. It is the sole responsibility of the individual requesting a transfer of contributions to timely register for transfers in accord with the provisions of the Electrical Industry Pension Reciprocal Agreement and to file any and all required forms, if any, with the appropriate Plan.

15.2 Home Pension Fund. This Plan is the Home Defined Benefit Pension Fund of employees who are members of IBEW Local Unions 11, 440, 441 and 477, all of which Local Unions participate in this Plan by virtue of Collective Bargaining Agreements requiring contributions to this Plan. If an employee is not a member of an IBEW Local Union, or the employee's IBEW Local Union does not have a pension fund, or the employee is not a Participant in or has no credited service in his Local Union's fund, then his Home Defined Benefit Fund will be the Participating Fund or Funds in which he currently is a Participant or has credited service at the time he files an authorization form requesting reciprocity.

15.3 Participating Pension Fund. Each jointly administered Defined Contribution Plan or jointly administered Defined Benefit Plan which has executed the Electrical Industry Pension Reciprocal Agreement which covers employment within the jurisdiction of an IBEW Local Union is considered a Participating Pension Fund.

15.4 At least monthly, each Participating Pension Fund(s) shall transfer to the electing Employee's Home Fund(s) an amount of money equal to all contributions received. There shall be no administrative fee charged by a Participating Fund for the transfer or for any other reason. If the Employee electing reciprocity has two Home Funds, a Defined Benefit Fund and a Defined Contribution Fund, the Participating Funds shall transfer all monies to whichever Home Fund is the same type as the Participating Fund (Defined Benefit to Defined Benefit, Defined Contribution to Defined Contribution). If the Employee electing reciprocity has only one Home Fund, the Participating Fund(s) shall transfer all monies to that Home Fund. All hours worked in any Participating Pension Fund for which contributions are transferred pursuant to an Employee's election for reciprocity shall be counted as vested service by the Employee's Home Pension Fund receiving the transferred contributions on an hour-for-hour basis. In computing the amount of benefits payable under the Home Pension Fund receiving reciprocal contributions, full credit shall be given to Employer Contributions forwarded to said Pension Fund by Participating Pension Funds, as well as those employer contributions received or required to be received by the Home Pension Fund directly from its contributing employers. The eligibility for and/or payment of the pension will be solely subject to the provisions of the Home Pension Fund receiving reciprocal contributions.

15.5 Special Provisions. Participants in this Plan may also participate in the Southern California IBEW-NECA Defined Contribution Plan and/or the Orange County IBEW-NECA Defined Contribution Plan. For Plan Years commencing on and after July 1, 2004, notwithstanding anything in this Plan to the contrary, no Plan Year in which at least 375 hours of reciprocal contributions are made on behalf of a Participant to either of these Defined Contribution Plans shall constitute a portion of a 'Grace Period' of such a Participant under this Plan. Effective June 1, 2004, the preceding sentence includes contributions that are contributed directly to either the Southern California IBEW-NECA Defined Contribution Plan or the Orange County IBEW-NECA Defined Contribution Plan through the terms of a collective bargaining agreement, Non-Bargaining Participation Agreement or a reciprocity authorization.

Reciprocity contributions shall be received from Participating Pension Funds pursuant to appropriate authorizations by the Employee under the Electrical Industry Pension Reciprocity Agreement. Contributions which a Participating Pension Fund is willing to transfer may be received for a period not to exceed 18 months prior to Employee's authorization.

Reciprocity contributions shall be transmitted to Participating Pension Funds on a prospective basis pursuant to an Employee's authorization under the Electrical Industry Pension Reciprocity Agreement. If a Participating Pension Fund is willing to accept a transfer of contributions received prior to the employee's authoriza­tion for transfer such contributions shall be transferred for a period not to exceed 18 months prior to the employee's authorization for transfer.

The provisions of this Article 15 shall be effective for reciprocal contributions received by the Pension Trust Fund on and after June 1, 2005. The preceding provisions of this Section are effective on the stated effective date. Hourly contributions received by the Southern California IBEW-NECA Defined Contribution Plan via reciprocity for hours worked prior to February, 1996 shall also qualify as Vesting Hours under the Pension Plan.

15.6 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 16
AMENDMENT TO COMPLY WITH EGTRRA

16. 1 Purpose and Scope. The plan amendments set forth in this Article are adopted to reflect certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). These amendments are intended to constitute good faith compliance with the requirements of EGTRRA and are to be construed in accordance with EGTRRA and the guidance issued thereunder. Except as otherwise provided herein, the amend­ments contained in this Article shall be effective as of the first day of the first Plan Year beginning after December 31, 2001. The provisions of this Article shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Article.

16. 2 Limitations on Benefits.

  1. In General. Effective for Limitation Years beginning after December 31, 2001, a Participant's accrued benefit shall not exceed the maximum permissible benefit.

    To the extent that any provisions of this Plan are inconsistent with the provisions of this Section, the provisions of this Section shall govern.

  2. Effect on Participants. Benefit increases resulting from the increase in the IRC §415(b) limitations enacted in the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") will be provided to all current and former Participants (with benefits limited by §415(b)) who have an accrued benefit under the Plan immediately prior to the effective date of this section (other than an accrued benefit resulting from a benefit increase solely as a result of the increases in limitations under IRC §415(b)).

  3. Definitions.
    1. Defined Benefit Dollar Limitation. The "defined benefit dollar limitation" is $160,000, as adjusted, effective January 1 of each year, under IRC §415(d) in such manner as the Secretary shall prescribe, and payable in the form of a straight life annuity. A limitation as adjusted under IRC §415(d) will apply to Limitation Years ending with or within the calendar year for which the adjustment applies.
    2. Maximum Permissible Benefit. The "Maximum Permissible Benefit" is the defined benefit dollar limitation (adjusted where required, as provided in (A) and, if applicable in (B) or (C) below).
      1. Fewer Than Ten Years of Participation. If the Participant has fewer than ten years of participation in the Plan, the defined benefit dollar limitation shall be multiplied by a fraction, (i) the numerator of which is the number of years (or part thereof) of participation in the Plan and (ii) the denominator of which is ten.
      2. Benefits Beginning Before Age 62. If the benefit of a Participant begins before the Participant attains age 62, the defined benefit dollar limitation applicable to the Participant at such earlier age is an annual benefit payable in the form of a straight life annuity beginning at the earlier age that is the actuarial equivalent of the defined benefit dollar limitation applicable to the Participant at age 62 (adjusted under (A) above, if required). The defined benefit dollar limitation applicable at an age before age 62 is determined as the lesser of (i) the Actuarial Equivalent (at such age) of the defined benefit dollar limitation computed using the interest rate and mortality table (or other tabular factor) specified in the Plan, if any, for purposes of determining actuarial equivalence for the most generous early retirement benefit for which the Participant qualifies as of the Annuity Starting Date and (ii) the Actuarial Equivalent (at such age) of the defined benefit dollar limitation computed using a five percent (5%) interest rate and the Applicable Mortality Table as defined in Section 1.39.
      3. Benefits Beginning After Age 65. If the benefit of a Participant begins after the Participant attains age 65, the defined benefit dollar limitation applicable to the Participant at the later age is the annual benefit payable in the form of a straight life annuity beginning at the later age that is actuarially equivalent to the defined benefit dollar limitation applicable to the Participant at age 65 (adjusted under (A) above, if required). The actuarial equivalent of the defined benefit dollar limitation applicable at an age after age 65 is determined as (i) the lesser of the Actuarial equivalent (at such age) of the defined benefit dollar limitation computed using the interest rate and mortality table (or other tabular factor specified in the Plan, if any, for purposes of determining actuarial equivalence for late retirement (whether or not applicable in an individual case) and (ii) the Actuarial Equivalent (at such age) of the defined benefit dollar limitation computed using a five percent (5%) interest rate and the Applicable Mortality Table as otherwise defined herein. For these purposes, mortality between age 65 and the age at which benefits commence shall be ignored.
  4. Aggregation. Effective for Limitation Years beginning after December 31, 2001, this Plan shall not be combined or aggregated with a non-multiemployer plan for purposes of applying the IRC §415(b)(1)(B) compensation limit to the non-multiemployer plan.

16. 3 Increase in Limit on Compensation Taken Into Account.

  1. Increase in Limit. The annual compensation of each Participant taken into account in determining benefit accruals in any Plan Year beginning after December 31, 2001 shall not exceed $200,000. For this purpose, annual compen­sation means compensation during the Plan Year or such other consecutive 12-month period over which compensation is determined under the Plan (the "determination period"). To the extent that the provisions of other sections of the Plan are inconsistent with the provisions of this Section, the provisions of this Section shall govern.

  2. Cost-of-Living Adjustment. The $200,000 limit on annual compensation in subsection (a) above shall be adjusted for cost-of-living increases in accordance with IRC §415(a)(17)(B). The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.
  3. Compensation Limit for Prior Determination Periods. In determining benefit accruals in Plan Years beginning after December 31, 2001, the annual compensation limit in subsection (a) above, for determination periods beginning before January 1, 2002, shall be $200,000.

16.4 Direct Rollover of Plan Distributions.

  1. Effective Date. This Section shall apply to distributions made after December 31, 2001. To the extent that the other provisions of this Plan are inconsistent with the provisions of this Section, the provisions of this Section shall govern.
  2. Modification of Definition of Eligible Retirement Plan. For purposes of the direct rollover provisions in Article 4.10 of the Plan, an "eligible retirement plan" also shall include an annuity contract described in IRC §403(b) and an eligible plan under IRC §457(b), which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan. The definition of eligible retirement plan also shall apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order as defined in IRC §414(p).

16. 5 Modification of Top-Heavy Rules

  1. Effective Date. This section shall apply for purposes of determining whether the Plan is a top-heavy plan under IRC §416(g) for Plan Years beginning after December 31, 2001, and whether the Plan satisfies the minimum benefits requirements of IRC §416(c) for such years. To the extent that the other provisions of this Plan are inconsistent with the provisions of this Section, the provisions of this Section shall govern.
  2. Determination of Key Employees. A Key Employee means any Employee or former Employee (including any deceased Employee) who at any time during the Plan Year that includes the determination date was an officer of the Employer having annual compensation greater than $130,000 (as adjusted under IRC §416(i)(1) for Plan Years beginning after December 31, 2002), a five-percent (5%) owner of the Employer, or a one-percent (1%) owner of the Employer having annual compensation of more than $150,000. For this purpose, annual compensation means compensation within the meaning of IRC §415(c)(3). The determination of who is a Key Employee will be made in accordance with IRC §416(i)(1) and the applicable regulations and other guidance of general applicability issued thereunder.
  3. Determination of Present Values and Amounts.
    1. In General. This subsection (c) shall apply for purposes of determining the present values of accrued benefits and the amounts of account balances of Employees as of the determination date.
    2. Distributions During Year Ending on the Determination Date. The present values of accrued benefits and the amounts of account balances of an Employee as of the determination date shall be increased by the distributions made with respect to the Employee under the Plan and any plan aggregated with the Plan under IRC §416(g)(2) during the one-year period ending on the determination date. The preceding sentence also shall apply to distributions under a terminated plan which, had it not been terminated, would have been aggregated with the Plan under IRC §416(g)(2)(A)(i). In the case of a distribution made for a reason other than separation from service, death, or disability, this provisions shall be applied by substituting "five-year period" for "one-year period."
    3. Employees Not Performing Services During Year Ending on the Determination Date. The accrued benefits and accounts of any individual who has not performed services for the Employer during the one-year period ending on the determination date shall not be taken into account.
  4. Minimum Benefits. For purposes of satisfying the minimum benefit requirements of IRC §416(c)(1) and in determining years of service with the Employer, any service with the Employer shall be disregarded to the extent that such service occurs during a Plan Year when the Plan benefits (within the meaning of IRC §401(b)) no Key Employee or former Key Employee.
  5. Top Heavy Plan Year. The Plan shall be considered a Top Heavy Plan for any Plan Year in which (1) the Present Value of Accrued Benefits of Key Employees under this Plan and (2) the sum of the Aggregate Accounts of Key Employees in any plan of an Aggregation Group, exceeds sixty percent (60%) of the Present Value of Accrued Benefits under this Plan plus the Aggregate Accounts of all Participants in any plan of an Aggregation Group.

16.6 All provisions of this Article are subject to the limitations and restrictions of Article 17 which govern benefits first commencing on and after October 28, 2009.

ARTICLE 17
REHABILITATION PLAN

The provisions of this Article 17 shall be effective October 28, 2009 for all benefits commenced on or after October 28, 2009 and shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Article. Benefits commenced prior to October 28, 2009 continue to be governed by other applicable provisions of the Plan. Any internal cross-references in the Sections of this Article are for convenience only and are not inclusive or controlling.

SOUTHERN CALIFORNIA IBEW – NECA PENSION PLAN
REHABILITATION PLAN
For Plan Year Beginning July 1, 2009

Introduction

The Pension Protection Act of 2006 ("PPA") as amended by the Worker, Retiree and Employer Recovery Act of 2008 (WRERA), requires the Trustees of a multiemployer pension plan that has been certified by the plan's actuary as being in Critical status (also known as "Red Zone" status) to develop a Rehabilitation Plan ("RP"). An RP must prescribe actions, including recommended actions to be taken by the bargaining parties that are expected to enable a plan to meet stated financial benchmarks by the end of the Rehabilitation Plan Period, based on reasonably anticipated experience and on reasonable actuarial assumptions. On September 28, 2009, the Southern California IBEW-NECA Pension Plan ("Plan") was certified by its Actuary to be in Critical status for the Plan Year beginning July 1, 2009, pursuant to IRC Section 432(b)(3).

This Rehabilitation Plan:

  1. Specifies the rehabilitation period and the expected emergence date;
  2. Includes three schedules (Default Schedule and two Alternative Schedules) of benefit changes and non-benefit contribution changes that will be provided to the bargaining parties, one of which must be implemented as part of future collective bargaining agreements between Local Unions and contributing employers entered into or renewed after October 28, 2009, nothing prevents an employer and Union from agreeing to implement a particular schedule prior to the expiration of a "collective bargaining agreement";
  3. Provides requirements for meeting the requirements of the Rehabilitation Plan and describes how the Rehabilitation Plan will be updated from time to time; and
  4. Describes how the Default Schedule will be automatically implemented if there is no agreement between the bargaining parties in a timely manner.

Rehabilitation Plan Period

The Rehabilitation Plan Period for the Plan is the period of 13 Plan Years beginning July 1, 2010. The Board of Trustees of the Plan, on October 15, 2009, elected to extend the 10-year Rehabilitation Plan Period under IRC Section 432(c)(4)(A) to 13 years pursuant to Section 205 of the Worker, Retiree, and Employer Recovery Act of 2008.

The Trustees also determined, based on information about the expiration of current collective bargaining agreements, that the Rehabilitation Period will begin on July 1, 2010. The Fund is expected to emerge from Critical Status by July 1, 2023, based on reasonable assumptions and implementation of this Rehabilitation Plan.

If the Fund Actuary certifies before the end of this period that the Plan is no longer in Critical status for a Plan year, the Rehabilitation Plan Period will end as of the close of the preceding Plan year.

Schedules

Based on the projected credit balances calculated for purposes of the Plan Actuary's September 28, 2009 certification that the Plan is in Critical status, the RP must contain schedules of plan changes and/or contribution rate changes that are projected to enable the credit balances to be positive by the end of the Rehabilitation Plan Period. Pursuant to the PPA an RP must include a proposed "default schedule" that identifies the necessary reductions in the amount of future benefit accruals and reduction in adjustable benefits necessary to achieve the applicable benchmarks, assuming no collective bargaining agreement increases contributions to the plan (other than contributions necessary to achieve the benchmark after amendments have reduced future benefit accruals to the maximum extent permitted by law). This schedule has been prepared and is set forth below in the Default Schedule of this RP.

An RP may also provide a proposed schedule providing increases in contributions necessary to achieve the applicable benchmark, assuming no amendments reducing future benefit accruals, nor reduction in adjustable benefits under the Plan. This schedule has been prepared and is set forth below in Alternative Schedule 1 of this RP. Projections by the Fund Actuary, which were based on reasonable assumptions, indicate that the benchmark will be achieved by increasing the contribution rate by $2.00 an hour effective July 1, 2010. This additional $2.00 per hour in contributions would result in no benefit accrual, would be devoted solely to improving the funding of the Plan and would cease at the later of emergence from Critical Status or upon action by the Board of Trustees.

The Board of Trustees has determined alternative schedules addressing contribution rates and or benefit reductions need to be provided to the bargaining parties as set forth in Schedules 1 and 2 below.

Implementation of Remedies & Schedules

The current monthly benefit of pensioners and beneficiaries whose actual pension benefit commenced prior to October 28, 2009 are not subject to reduction under this Rehabilitation Plan. Benefits for other participants and deferred benefits of all Participants are determined as follows:

All participants who terminated or will terminate covered employment prior to becoming covered by a Schedule in the Collective Bargaining process, and not in pay status as of October 28, 2009, and any deferred benefit of all Participants, shall have their benefits determined based on the benefit changes described under the applicable Schedule upon implementation of the applicable Schedule to their former bargaining unit. To the extent provided under the implemented Schedule the benefits of a Participant who commenced benefits under the current Plan on or after October 28, 2009, and any deferred benefit of all participants, shall, to the extent required by the applicable Schedule, see their benefits reduced in accord with the applicable Schedule. These provisions shall take effect on the later of the date the applicable Schedule is implemented for the Participant's former bargaining unit or the date that benefits can be eliminated allowing for legally required advanced notice.

As with any Schedule the Default Schedule is implemented upon adoption by the Collective Bargaining Parties as the applicable Schedule for a particular bargaining unit. However, should the bargaining parties fail to elect any Schedule within 180 days following the expiration date of a collective bargaining agreement in effect as of October 28, 2009 the Board of Trustees are required by law to unilaterally implement the Default Schedule for that particular bargaining unit.

For non-bargaining unit employee Participants employed by employers who also contribute on behalf of bargaining unit Participants the Schedule and implementation date is the same as the Schedule and implementation date for that employer's bargaining unit employees. For non-bargaining unit employee participants not employed by an employer that contributes pursuant to a collective bargaining agreement their implementation date is the earlier of the employer's adoption of a Schedule or 180 days from July 1, 2010.

Reciprocity and other issues under the Rehabilitation Plan and Critical Status determination.

Off-benefit contributions payable under the Schedules result in no benefit accruals and are devoted solely to improving the funding status of the Plan. The same is true in terms of any employer surcharge contributions received or payable for periods prior to the collective bargaining parties adoption and implementation of a Rehabilitation Plan Schedule. Accordingly, individuals who work inside the jurisdiction of this Plan and have employer contributions transferred to another Plan pursuant to the money-follows-the-person Reciprocity Agreement shall see all increased off-benefit contributions under any Schedule and all employer surcharge contributions remain in this Plan for funding purposes only. Only on-benefit contributions received will be transferred.

The benefits of an Alternative Schedule are available only for work performed under a Collective Bargaining Agreement or Subscription Agreement which specifically adopts the Alternative Schedule. When a Participant works outside the jurisdiction of this Plan, the individual, absent an extraordinary agreement, is not working under an agreement which adopts an Alternative Schedule. When such a Participant reciprocates contributions to this Plan pursuant to the money-follows-the-person Reciprocity Agreement for work performed outside of this Plan's jurisdiction, it must be credited to the Default Schedule absent an extraordinary agreement by the employer to adopt an Alternative Schedule for such work.

Some individuals who never become vested in benefits under this Plan may be entitled to a pro-rata Pension from this Plan due to pro-rata Reciprocity Agreements. The pro-rata Pension of such a non-vested individual shall be calculated and paid pursuant to the Default Schedule except to the extent of Covered Hours under an Alternative Schedule which shall accrue benefits in accord with the Alternative Schedule under which the Covered Hours were worked.

If a Participant works under a particular Schedule and subsequently works under another Schedule benefits accrued during the first period of employment and for prior periods under the same collective bargaining agreement, will be determined under the applicable Schedule and benefits accrued during employment under a second Schedule shall be determined under the second Schedule. To the extent required by law this may result in separate and distinct annuities being provided to an individual Plan Participant to assure compliance with all applicable law.

In the event that a particular Schedule is implemented for an employer, and then that employer, in a subsequent negotiation, bargains a different Schedule, the Trustees may develop a revised contribution Schedule for that particular situation.

Rules During the Rehabilitation Period and Adoption of the Rehabilitation Plan

On and after September 28, 2009, the Board of Trustees may not accept a collective bargaining agreement or participation agreement that provides for: (a) lower contributions for any participants; (b) a suspension of contributions with respect to any period of service; or (c) any new direct or indirect exclusion of younger or newly hired employees from plan participation. During the plan adoption period, the trustees may not amend the plan in any way that increases plan liabilities by reason of an increase in benefits, change in accruals, or change in the vesting rate, unless the amendment is necessary to maintain the plan's qualified status.

Once the RP has been adopted, the Plan may not be amended in a manner that is inconsistent with the RP. In addition, the Plan may not be amended to increase benefits, including future benefit accruals, unless the Fund Actuary certifies that the benefit increase is consistent with the RP and is paid for out of contributions not required by the Rehabilitation Plan to meet the applicable benchmark.

Based on reasonable assumptions, the Fund is expected to emerge from Critical Status by the Plan Year beginning July 1, 2023. The Trustees recognize the possibility that actual experience could be less favorable than the reasonable assumptions. Thereforee, the Trustees are establishing the following annual standards to reflect possible actuarial losses and still keep the Fund on target to emerge from Critical Status by the end of the Rehabilitation Period.

Annual Updating of RP

Each year the Fund's Actuary will review and certify the status of the Fund under the PPA funding rules and whether the Fund is or is not making the scheduled progress toward the requirements of the RP. To that end, the chart below provides the projected credit balances for each year of the Rehabilitation Plan. If the Board of Trustees determines that it is necessary in light of updated information they will revise the RP and the schedules recommended under it. Notwithstanding subsequent changes in contribution schedules, a schedule of contribution rates provided by the Board of Trustees and relied upon by the bargaining parties in negotiating a collective bargaining agreement shall remain in effect for the duration of that collective bargaining agreement. However, a collective bargaining agreement that is renewed or extended will need to include terms consistent with one of the Schedules in effect at the time of the renewal or extension. A failure to adopt such an updated Schedule would require the Board of Trustees to unilaterally implement the Default Schedule 180 days subsequent to the expiration of a collective bargaining agreement containing a Schedule.

Plan Year Ending 6/30

Projected Credit Balance

2011

$73,193,000

2012

93,506,000

2013

106,290,000

2014

114,958,000

2015

127,702,000

2016

144,524,000

2017

133,228,000

2018

119,344,000

2019

110,909,000

2020

85,163,000

2021

65,020,000

2022

44,954,000

2023

23,966,000

Other Issues

Benefit changes will become effective pursuant to the terms of the Rehabilitation Plan as soon as legally permissible after a Rehabilitation Plan Schedule is adopted or implemented and those benefit changes are expected to be permanent, as required by the PPA for benefits commencing on or after October 28, 2009. The Social Security Level Income form of payment is no longer permitted.

DEFAULT SCHEDULE FOR BENEFITS COMMENCING ON AND AFTER OCTOBER 28, 2009

Benefit Changes

  • With respect to hours worked after the date of implementation of this Schedule, the benefit accrual rate becomes 1.00% of contributions made on the participant's behalf. "Contributions" for this purpose excludes any contribution increases specifically required by this Schedule.

  • The disability benefit is eliminated for any participants who are not in pay status as a disabled participant as of October 28, 2009.

  • The early Retirement Pension for Participants retiring prior to age 55 is based on actuarial reductions from Normal Retirement Age (age 65) as of October 28, 2009.

  • The 60-month guarantee period is eliminated with respect to benefits not in pay status as of October 28, 2009.

  • The Pre-Retirement 120-month guarantee period for the Death Benefit is eliminated as of October 28, 2009.

The only forms of benefit payment available to a retiring participant commencing receipt of benefits on or after October 28, 2009 shall be a single life annuity with no guarantee period, the 50% Joint-and-Survivor Pension, and the 75% Joint-and-Survivor Pension. The reduction factors for the Joint-and-Survivor payment forms will be adjusted so as to be actuarially equivalent to a single life annuity with no guarantee period.

Contributions

Employer contribution rate levels shall not increase. If an existing Agreement calls for different rates for apprentices or other classifications than the journeyman rate that practice may continue under this Default Schedule.

ALTERNATIVE SCHEDULE 1

Benefit Changes

Benefit accruals under a Collective Bargaining Agreement after this Schedule is implemented shall be determined disregarding any contribution increases specifically required under this Schedule. The Level Income option is eliminated October 28, 2009. Except for the foregoing no other benefit accrual changes or reductions are provided for under this Schedule.

Contributions

Employer contribution rate levels shall increase by $2.00 per hour under this Alternative Schedule 1 for July 1, 2010 hours worked and hours worked thereafter.

All additional contributions pursuant to this Schedule over the amounts required under collective bargaining agreements in effect as of October 28, 2009 shall be disregarded for purposes of determining participants' accrued benefits. Accrued benefits are in no fashion based upon the amount of increased employer contributions under the foregoing Schedule or any employer surcharge contributions payable by the employer. These contributions shall be utilized solely to improve the funding condition of the Plan and shall result in no benefit accruals whatsoever.

If an existing agreement calls for different rates for apprentices or other classifications than the journeyman rates specified above, proportional off-benefit contribution increases will be required.

ALTERNATIVE SCHEDULE 2

Benefit Changes

  • Benefit accruals under a Collective Bargaining Agreement after this Schedule is implemented shall be determined disregarding any contribution increases specifically required under this Schedule.
  • The Level Income option is eliminated October 28, 2009.
  • The Early Retirement Pension for Participants retiring prior to age 55 is based on actuarial reductions from Normal Retirement Age (age 65) effective for benefits first commencing after June 30, 2010.

Contributions

Employer contribution rate levels shall increase by $1.30 per hour under this Alternative Schedule 2 for July 1, 2010 hours worked and hours worked thereafter.

All additional contributions pursuant to this Schedule over the amounts required under collective bargaining agreements in effect as of October 28, 2009 shall be disregarded for purposes of determining participants' accrued benefits. Accrued benefits are in no fashion based upon the amount of increased employer contributions under the foregoing Schedule or any employer surcharge contributions payable by the employer. These contributions shall be utilized solely to improve the funding condition of the Plan and shall result in no benefit accruals whatsoever.

If an existing agreement calls for different rates for apprentices or other classifications than the journeyman rates specified above, proportional off-benefit contribution increases will be required.

ARTICLE 18
EXECUTION

EXECUTED at _______________, California on this ____ day of ________, 2015 by the BOARD OF TRUSTEES of the SOUTHERN CALIFORNIA IBEW-NECA PENSION TRUST FUND.

By ___________________________       
Chairman

By ___________________________
Secretary

APPENDIX I
RULES RELATING TO EMPLOYER WITHDRAWAL LIABILITY

Section 1. Preamble

This Appendix I to the Southern California IBEW-NECA Pension Plan sets forth rules applicable to the determination of Employer Withdrawal Liability as established under the Multiemployer Pension Plan Amendments Act of 1980 (the Act). These rules shall apply to complete or partial withdrawals, as defined in the Act, occurring after April 28, 1980. The relevant provisions of the Act shall apply to any matter affecting an Employer's withdrawal liability to the extent that such matter is not addressed in this Appendix I.

Section 2. In determining the fractions for allocating:

  1. The Employer's proportional share of the unamortized amount of the change in unfunded vested benefits, as described in Section 4211(b)(2)(E) of ERISA;
  2. The Employer proportional share of the unamortized amount of the Plan's unfunded vested benefits for the Plan year ended June 30, 1979, as described in Section 4211(b)(3)(B) of ERISA;
  3. The Employer's proportional share of the unamortized amount of the reallocated unfunded vested benefits, as described in Section 4211(b)(4)(D) of ERISA;

The following rules described in Sections 3 and 4 will apply in determining the denominator of such fractions.

Section 3. In calculating the denominator for the fractions described in Section 2, only contributions of significant withdrawn Employers will be excluded.

Section 4.

  1. For purposes of Section 3, a significant withdrawn Employer means:
    1. an Employer to whom the Plan has sent a notice of withdrawal liability under Section 4219 of ERISA, or
    2. a withdrawn Employer that, in any Plan Year used to determine the denominator of a fraction, contributed at least $250,000.00, or if less, 1.0% of all contributions made by Employers for that year.
  2. If a group of Employers withdraws in a concerted withdrawal, they will be considered a single employer for purposes of determining whether they are a significant withdrawn Employer under subsection (a) above. A concerted withdrawal means the discontinuance of contributions to the Plan during a single Plan Year,
    1. by an Employer Association, or
    2. by all or substantially all of the Employers covered by a single collective bargaining agreement, or
    3. by all or substantially all of the Employers covered by Contribution Agreements with a single labor organization.

Section 5. The Board of Trustees has determined that the Plan primarily covers employees in the building and construction industry.

APPENDIX II
RULES AND REGULATIONS PERTAINING TO PENSION OPTIONS

Notwithstanding any other plan provisions to the contrary, any optional form subject to 417(e)(3) shall be calculated as the greater of (i) or (ii) as follows:

  1. the actuarially equivalent value as determined using the plan provisions in effect on June 30, 2008; or
  2. the actuarially equivalent value as determined under Section 417(e)(3) for plan years beginning after December 31, 2007 using the "Applicable Mortality Table" as defined in Plan Section 1.39 and the "Applicable Interest Rate" as defined in Plan Section 1.40."
  3. Effective July 1, 2005, if the Plan benefit is subject to Code section 417(e)(3), Actuarial Equivalent for this purpose means the greatest of the following benefit amounts: (1) the straight life annuity benefit computed using the interest rate and the mortality table or tabular factor specified in the Plan for actuarial equivalence; (2) the straight life annuity benefit computed using a 5.5 percent interest rate assumption and the Applicable Mortality Table; or (3) the Applicable Interest Rate under IRC 417(e)(3) and the Applicable Mortality table, divided by 1.05.
  4. Effective July 1, 2004, if the Plan benefit is subject to Code Section 417(e)(3), Actuarial Equivalent for this purpose means the equivalent annual benefit equal to the grater of: (1) the benefit computed using the Plan's interest rate and mortality table or other tabular factor used for actuarial equivalence for the particular form of benefit payable or (2) the benefit computed using 5.5 percent interest and the Applicable Mortality Table.

(Not included. See explanatory note in Table of Contents)

APPENDIX III
CREDIT FOR MILITARY SERVICE

If a Participant is or was engaged in Military Service during a period covered by applicable federal law governing veteran's reemployment rights, he may earn Credited Future Service pursuant to Section 1.12, Credited Past Service pursuant to Section 1.13(c) and Vesting Hours pursuant to Section 1.30(d).

As of July 1, 1986, Military Service must occur during the following periods in order for a veteran's reemployment rights to be protected by federal law:

  1. December 1, 1941 through December 31, 1946 (the December 31, 1946 ending date is extended to July 26, 1947, for a period of continuous service beginning prior to January 1, 1947),
  2. June 27, 1950, through January 31, 1955,
  3. August 5, 1964, through May 7, 1975,
  4. A maximum of four (4) years of service during 1961 may be recognized for a person recalled to active duty while in reserve status who remains in active service at the request of the government.

The above schedule of dates may be changed from time to time to reflect changes in applicable federal law pertaining to veteran's reemployment rights.

Effective October 1, 1994, notwithstanding any provision of this Plan to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with §414(u) of the Internal Revenue Code.

Effective June 1, 2002, contributions shall be credited on behalf of a Participant during periods of military service in accordance with Section 1.12 of the Plan at the hourly employer contribution rate for the Southern California IBEW-NECA Pension Plan in effect in the collective bargaining agreement between the IBEW and NECA which governs the jurisdiction of the Participant's IBEW membership for the month in which the hours are being credited. Contributions shall be credited on behalf of a Non-Bargaining Unit Employee in accordance with the terms of any Non-Bargaining Agreement in effect for the Participant's last employer prior to the commencement of military service in accordance with the hourly employer contribution rate specified in such Non-Bargaining Agreement for the month in which hours are being credited.

Contributions credited under this Appendix are paid out of Plan assets and are contingent upon satisfaction of the requirements of Sections 1.12 and 1.27(b).