NOTICE OF MATERIAL MODIFICATIONS TO THE SOUTHERN CALIFORNIA IBEW-NECA PENSION PLAN

June 15, 2010

The Board of Trustees of the Southern California IBEW-NECA Pension Trust Fund has recently adopted the following change to the Pro Rata Pensions provisions of the Pension Plan:

The Plan Document was amended to eliminate consideration of hours worked under a pro rata reciprocity agreement on and after July 1, 2010 in determining whether you have 42,500 Covered Hours. Meeting the 42,500 hour threshold makes you eligible for the higher benefit accrual rate of 1.90% of contributions instead of 1.45% and for the Joint and 100% Survivor benefit payable if you die before retirement. These benefits will now be available only if you reach 42,500 hours without regard to any pro rata reciprocity hours worked on and after July 1, 2010.

A total of 42,500 Covered Hours was also needed to qualify for an unreduced early retirement benefit prior to age 55 prior to July 1, 2010. With the adoption of Schedule 2 of the Rehabilitation Plan applicable to all plan participants, early retirement benefits payable on and after July 1, 2010 are now available prior to age 55 only on an actuarially reduced basis. As a result, early retirement benefits are unaffected by this change in which hours are counted towards the 42,500 hour amount.

This change is illustrated by the following example.

Mike is a 52-year old Participant with the following work history:

Service Period

Hours Worked in Jurisdiction

Pro Rata Reciprocity Hours

Total Hours

7/1/1984 - 6/30/1993

15,000

0

15,000

7/1/1994 - 6/30/2009

0

24,500

24,500

7/1/2009 - 6/30/2010

1,500

0

1,500

7/1/2010 - 6/30/2011

0

1,500

1,500

Total

16,500

26,000

42,500

Under the prior plan, Mike would have reached 42,500 Covered Hours as of June 30, 2011 and any contributions credited on or after July 1, 2011 would have been multiplied by 1.90% in determining his pension benefit. His spouse would also then have been eligible for the Joint and 100% Survivor benefit. He is not eligible for unreduced early retirement benefits since he is not yet age 55. He would only have been eligible for unreduced benefits prior to age 55 if he reached 42,500 hours and retired prior to July 1, 2010.

Under the amended plan, Mike would only have 41,000 Covered Hours (42,500-1,500 pro rata reciprocity hours earned on and after July 1, 2010) and would not be eligible for either the 1.90% accrual rate for hours worked on or after July 1, 2011 nor would his spouse be eligible for the 100% Joint and Survivor benefit, since the 1,500 hours worked for the year ended June 30, 2011 would no longer count toward the 42,500 threshold. He would not become eligible for these benefits until he works an additional 1,500 hours within the jurisdiction of the Plan. He is also not eligible for unreduced early retirement benefits since he is not yet age 55.

If Mike had 1,000 hours for the plan year beginning July 1, 2011 and a benefit credit contribution rate eligible for benefit credit of $5.00, his monthly benefit for these hours alone under the prior plan would have been $95.00 determined as follows:

$5.00 X 1,000 X 1.90% = $95.00

Under the amended plan, his monthly benefit for the year is $72.50 per month determined as follows:

$5.00 X 1,000 X 1.45% = $72.50

This Notice shall serve as a Summary of Material Modifications to your Plan and should be kept with your current Summary Plan Description for future reference. If you have any questions regarding this Notice, please contact the Administrative Office at (800) 824-6935 or by mail at Southern California IBEW-NECA Pension Trust Fund, P.O. Box 910918, Los Angeles, CA 90091.

Sincerely,

Board of Trustees
Southern California IBEW-NECA Pension Plan

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