laborers pension trust fund for northern california pension plan

Transcripción

LABORERS PENSION TRUST FUND
FOR NORTHERN CALIFORNIA
PENSION PLAN
SEPTEMBER 2009
Please disregard the Rules and Regulations section of this booklet which begins on page 63. The
Rules and Regulations have been revised as of June 1, 2014. You may review the revised Rules &
Regulations at the Laborers Trust Funds’ website at www.norcalaborers.org.
LABORERS PENSION TRUST FUND
FOR NORTHERN CALIFORNIA
220 Campus Lane
Fairfield, California 94534-1498
TELEPHONE: 707 864 2800 • TOLL-FREE NUMBER: 800 244 4530
WEBSITE: www.norcalaborers.org
EMAIL: [email protected]
BOARD OF TRUSTEES
EMPLOYEE TRUSTEES
EMPLOYER TRUSTEES
Mr. Oscar De la Torre
Mr. Doyle Radford
Mr. David Gorgas
Mr. James Homer
Mr. Bruce Rust
Mr. Byron C. Loney
Mr. Larry Totten
Mr. Terence Street
Mr. Claire Koenig
Mr. Robert Chrisp
LEGAL COUNSEL
Bullivant House Bailey PC
Weinberg, Roger & Rosenfeld
CONSULTANT AND ACTUARY
The Segal Company
ADMINISTRATIVE OFFICE
Laborers Funds Administrative Office of Northern California, Inc.
Edward J. Smith, Secretary
Laborers Pension Trust Fund for
Northern California
To All Participants Covered by the Laborers Pension Plan:
We are pleased to provide you with this updated booklet describing the features of your Pension
Plan. This Plan has been established to provide you and your family with retirement benefits
which, in addition to Social Security benefits, should provide a measure of security during your
years of retirement. Disability and death benefits are also provided for the security of you and
your family.
This booklet tells you:
• How and when you become eligible for benefits,
• What your benefits are, and
• General provisions of the Plan.
We have tried to explain some of the most important provisions of the Plan within the “Summary
Plan Description” portion of this booklet, beginning on page 5. However, in describing the Pension
Plan in summary form, it is not possible to explain every detail. Only the complete text of the
“Rules and Regulations” which appears in the last part of this booklet beginning on page 63,
describes your actual rights under the Plan. In the event of any conflict between the “Summary
Plan Description” and the “Rules and Regulations” the Rules and Regulations will govern.
For your protection, only the full Board of Trustees is authorized to interpret the Pension Plan
provisions described in this booklet. No Union or Employer, nor any representative of any Union
or Employer, is authorized to interpret the Plan on behalf of the Board, nor can any of these
persons act as an agent of the Board of Trustees.
We suggest that you share this booklet with your family, since they too have an interest in the Plan.
We also suggest that you retain this booklet for future reference and that you inform members of
your family where the booklet can be found. From time to time, material changes may be made
to the Plan provisions. These are communicated to you in the form of Plan notices. So that your
information is complete and up-to-date, you should retain all Plan notices with this booklet.
If you have questions a�er reading the booklet, or questions about your benefits in general, contact
the Trust Fund Office at (707) 864-2800 or toll-free at 800-244-4530, Monday through Friday,
between the hours of 8:00 AM and 5:00 PM. You can also E-mail questions to
[email protected].
Sincerely,
BOARD OF TRUSTEES
September 2009
1
Important Information
About Your Plan
Only a summary of the Plan’s benefits appears in the first part of this booklet. The Pension Plan
summary cannot adequately reflect all of the details of the Plan. The rights of a Participant or
Beneficiary can only be determined by consulting the actual text of the Pension Plan, which is
printed in the last part of this booklet in the “Rules and Regulations” beginning on page 63.
***************************************************************************************************
Only the full Board of Trustees is authorized to resolve any questions concerning the
interpretation of the Pension Plan described in this booklet. Only the Board can give binding
answers, and then only if you have furnished full and accurate information concerning
your situation. No Employer or Union, nor any representative of any employer or union, is
authorized to interpret the Plan on behalf of the Board, nor can any of these persons act as an
agent of the Board.
***************************************************************************************************
The Trust Agreement provides that Individual Employers are not required to make any further
payments or Contributions to the cost of the operation of the Trust Fund or of the Plan, except
as may be provided in the Collective Bargaining Agreement, a Subscriber’s Agreement, or the
Trust Agreement. This provision is subject to the requirements of the Multiemployer Pension
Plan Amendments Act of 1980 and any other applicable law.
2
Table of Contents
Page
Pension Plan Terms
6
Credited Service
8
Breaks in Service
10
Grace Period
10
Separation From Covered Employment
13
Vested Status
14
Benefit Units
15
Credited Future Service and Accrued Benefits
17
Uniformed Services Employment
18
Regular Pension
19
Former Participants in the Rock, Sand and Gravel Plan
21
Early Retirement Pension
22
Disability Pension
24
Service Pension
27
Deferred Vested Pension
28
Reciprocal Pension
29
Adjustments to Pension
31
Credited Service, Benefit Units and Pension Amounts for Employees Previously
Covered by the Laborers Rock, Sand and Gravel Pension Trust Fund
33
Payment Methods
35
3
Table of Contents
Page
Federal and State Income Tax Withholding
38
Rollover Distributions
38
Notice of Early Distribution Penalty
38
Death Benefits
39
Qualified Domestic Relations Orders (QDRO)
42
Retirement
44
Prohibited Employment
44
Suspension of Pension Payments
45
Recovery of Overpayments
47
Application for Benefits
48
Annuity Starting Dates
49
Claims and Appeals Procedures
50
Questions and Answers About Your Plan
54
Information Required by the Employee Retirement Income Security Act
55
Statement of Rights Under the Employee Retirement Income Security Act
61
Rules and Regulations
63
4
Laborers Pension Trust Fund
for Northern California
Pension Plan
Summary Plan Description
5
Pension Plan Terms
The following terms are used frequently in explaining the Pension Plan. For a more complete list
of terms, refer to Article 1, beginning on page 65.
TERM
EMPLOYEE
DEFINITION
The term “Employee” means any employee of a Contributing Employer who
performs one or more hours of work covered by the Collective Bargaining
Agreement, providing for Contributions to the Pension Fund. The term also
includes certain other employees covered under a Subscriber’s Agreement in
accordance with Board regulations.
The Plan does not include any self-employed person, whether a sole proprietor
or partner.
COVERED
EMPLOYMENT
The term “Covered Employment” means employment as an Employee for a
Contributing Employer who contributes or who is required to contribute to
this Pension Plan.
CONTINUOUS
NON-COVERED
EMPLOYMENT
The term “Continuous Non-Covered Employment” means employment
a�er June 1, 1976 with a Contributing Employer in a job that is not covered
by this Pension Plan, but that is continuous with the Employee’s Covered
Employment with the same Contributing Employer.
A period of Non-Covered Employment is considered “continuous” with
Covered Employment only if there is no resignation, discharge, or other
termination of employment between periods of Covered and Non-Covered
Employment.
PARTICIPANT
The term “Participant” describes an Employee who becomes a Participant in
the Pension Plan on August 1 or February 1 following a 12 consecutive month
period during which that Employee works at least 435 hours in Covered
Employment, or a�er June 1, 1976, in Continuous Non-Covered Employment
with a Contributing Employer. An Employee is no longer a Participant in
the Plan when he incurs a One-Year Break in Service, unless he is already a
Pensioner or a Vested Participant.
6
Pension Plan Terms
continued
TERM
DEFINITION
CREDITED
SERVICE
Generally, the term “Credited Service” means the hours of work in Covered
Employment, and a�er June 1, 1976 in Continuous Non-Covered Employment,
which are recognized by the Plan in determining eligibility for a Pension.
BENEFIT UNITS
Generally, the term “Benefit Units” means the hours of work in Covered
Employment, which the Plan recognizes in determining the amount of a
pension payable by the Plan for periods prior to August 1, 1986.
Beginning August 1, 1986, pension amounts are based on a percentage of
eligible Contributions payable on behalf of an Employee.
For periods on or a�er August 1, 1986, Benefit Units are still recognized by
the Plan toward eligibility for a Service Pension. No more than one Benefit
Unit per Plan Credit Year will be counted for that purpose.
PLAN CREDIT
YEAR
The term “Plan Credit Year” means the period from August 1 of any year
through July 31 of the following year. This 12 consecutive month period is
used to determine Participation, Credited Service, Benefit Units, and benefit
accruals.
SEPARATION
FROM
COVERED
EMPLOYMENT
The term “Separation from Covered Employment” means that an Employee
has not worked at least 435 hours in Covered Employment in at least
2 consecutive Plan Credit Years. It occurs on the last day of the second
consecutive Plan Credit Year (July 31) in which the Employee has not worked
at least 435 hours in Covered Employment.
CONTRIBUTION The term “Contribution Date” means the date that applies to the Bargaining
DATE
Unit in which an Employee was working when the first Employer Contribution
was made on his behalf.
NORMAL
RETIREMENT
AGE
The term “Normal Retirement Age” means age 65 or, if later, the age of
the Participant on the fi�h anniversary of his participation, disregarding
participation before June 1, 1988. For all other Participants “Normal
Retirement Age” means age 65 or, if later, the age of the Participant on the
tenth anniversary of his participation.
7
Credited Service
Sections 6.02., and 6.03., pages 90 and 92
Credited Service is required to qualify for a Regular, Early, Disability or Deferred Vested Pension
provided by this Plan. It is granted for work performed for Employers who contribute, or who are
required to contribute to the Pension Trust Fund by a Collective Bargaining Agreement. Credited
Service is also granted for work performed for a Contributing Employer in Continuous NonCovered Employment on or a�er June 1, 1976. In addition, it is granted for employment as a
laborer in the Building and Construction Industry in Northern California before this Pension Plan
was established, as well as periods of Qualified Military Service.
Credited Service is earned in different ways for employment during different time periods as
explained in the following paragraphs.
Credited Past Service - Before August 1, 1962
Section 6.02., page 90
You will receive one year of Credited Past Service for each Plan Credit Year in which you work
at least 1,000 hours or more between August 1, 1937 and August 1, 1962 in the Building and
Construction Industry in the 46 Northern California Counties:
1. at a job included in the Collective Bargaining Agreement with the Northern California
District Council of Laborers or any of its affiliated local unions, or
2. for a Contributing Employer, or in a Bargaining Unit included for coverage under this Plan
prior to June 30, 1967, or
3. for the District Council or an affiliated local union in a position included under the Plan.
One quarter of one year of Credited Past Service is granted for each 250 hours of employment in
any Plan Credit Year in which you failed to work at least 1,000 hours.
The Board of Trustees may accept records of union membership, W-2 forms, check stubs,
statements from an employer, or statements from the Social Security Administration as evidence
of employment.
You will also receive Credited Past Service for military service during the period you retained reemployment rights under federal law. To receive Credited Past Service for military service, you
must have been employed in the 46 Northern California Counties immediately before entering
the service in work for which Credited Past Service is granted and you must have made yourself
available for work in the 46 Northern California Counties within 90 days a�er your release from
active duty, or within 90 days a�er recovering from a disability which continued a�er your release
from active duty.
8
Credited Future Service - Between August 1, 1962 and August 1, 1975
Section 6.03.a., page 92
You earn Credited Future Service for hours worked in Covered Employment between August 1,
1962 and August 1, 1975, according to the following schedule:
Hours Worked in
Plan Credit Year
Credited
Future Service
Less than 250 hours
250 to 499 hours
500 to 749 hours
750 to 869 hours
870 hours or more
None
.25
.50
.75
1.00
Credited Future Service - Beginning August 1, 1975
Section 6.03.b., page 92
You earn Credited Future Service for hours worked in Covered Employment beginning August 1,
1975, according to the following schedule:
Hours Worked in
Plan Credit Year
Credited
Future Service
Less than 435 hours
435 to 652 hours
653 to 869 hours
870 hours or more
None
.50
.75
1.00
Continuous Non-Covered Employment - Beginning June 1, 1976
Section 6.03.c., page 92
Beginning June 1, 1976, you receive Credited Future Service for hours of work in Continuous NonCovered Employment if you work for a Contributing Employer and
• move directly from a covered job with that Employer to a non-covered job with that same
Employer, or
• move directly from a non-covered job with that Employer to a covered job with the same
Employer.
If you have not worked enough combined hours to earn one full year of Credited Service,
fractions of a Year of Credited Service will not be granted for work in Continuous Non-Covered
Employment.
9
Breaks in Service
Once you achieve Vested Status, you cannot lose Participation, Credited Service, Benefit Units
and accrued benefits. However, prior to achieving Vested Status, you could permanently lose
your Participation, Credited Service, Benefit Units and accrued benefits if you do not work the
required number of hours in Covered Employment for a certain number of consecutive Plan
Credit Years as explained below.
Break in Service - Between August 1, 1962 and August 1, 1975
You incur a Permanent Break in Service between your Contribution Date and August 1, 1975 if,
before you achieve Vested status, you did not earn one quarter (.25) of Credited Future Service in
either one of 2 consecutive Plan Credit Years.
ple:
Exam
Credited
Hours Worked in
Plan Credit Year
Covered Employment
Future Service
1971 - 72
1972 - 73
1973 - 74
1974 - 75
1,150
730
100
-0-
One year
.50
-0-0-
To earn one quarter (.25) of Credited Future Service, you must have worked at least 250 hours. In the
above example, the employee incurred a Permanent Break in Service on July 31, 1975, because he failed
to earn one quarter of Credited Future Service in 2 consecutive Plan Credit Years (1973-74 and 1974-75).
Grace Periods - Between August 1, 1962 and August 1, 1975
A “grace period” is granted to you if you were absent from Covered Employment before August
1, 1975 due to any of the following reasons:
1. Totally disabled for work as a laborer - the Plan allows a grace period of up to 3 years.
2. Employment as a supervisor for a Contributing Employer (including joint ventures in which
the Contributing Employer participates) - the Plan allows a grace period for the entire time
of supervisory employment.
3. Employment as an officer or full-time employee with a labor organization that is not a
Contributing Employer to this Plan - the Plan allows a grace period for the entire time of
employment with the labor organization.
A grace period does not add to your Credited Service, Benefit Units, or accrued benefits. It is strictly a period
which is not counted in determining whether you worked enough hours to prevent a Break in Service.
In order to secure this grace period, you must provide proof of the circumstances on which you
base your application for this grace period. You may submit your application for this grace period
at the time you file your pension application or earlier, if you choose.
10
Break in Service - Between August 1, 1975 and August 1, 1985
Sections 6.06.b and c., page 96
A�er July 31, 1975, a One-Year Break in Service occurs if you do not work at least 435 hours in Covered
Employment (including hours on or a�er June 1, 1976 in Continuous Non-Covered Employment)
during a Plan Credit Year. A Break in Service can be temporary or permanent, depending on how
many years of Credited Service you have. A Break in Service becomes permanent if you have the
greater of (1) two-consecutive One-Year Breaks in Service, or (2) the number of consecutive One-Year
Breaks in Service equal or exceed the number of full Years of Credit Service previously accumulated.
T
Example: If you have earned 7 Years of Credited Service and then you have 5 consecutive Plan
Credit Years in which you work less than 435 hours in each of those Plan Credit Years, you still have
not lost your 7 Years of Credited Service. However, in the next Plan Credit Year you work only 200
hours thereby adding another Break in Service Year which now totals 6. In the next Plan Credit
Year, you work 100 hours, which makes 7 Break in Service Years. At the end of the 7th Plan Credit
Year, your 7 Years of Credited Service are permanently canceled.
strates how it works:
rt illu
a
h
c
Work Year
Hours Worked
Credited Service
his
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year
11th year
12th year
13th year
14th year
1,400
1,500
1,100
1,300
1,400
1,200
1,250
400
250
-0-0350
200
100
1 Year of Credited Service
1 Year of Credited Service, total of 2 years
Break in Service - 1 year
Break in Service - 2 years
In the example, a Permanent Break in Service occurred at the end of the 14th Plan Credit Year
when the number of One-Year Break in Service Years equaled the number of full Years of Credited
Service, e.g. 7 years. However, if the Employee would have worked at least 435 hours within the
14th Plan Credit Year, the Permanent Break in Service would have been prevented.
A One-Year Break in Service (less than 435 hours of work in Covered Employment, or a�er May
31, 1976 including hours in Continuous Non-Covered Employment in a Plan Credit Year) can
be repaired as long as the Break in Service is not permanent. All previous One-Year Breaks in
Service are disregarded a�er a Plan Credit Year in which you work at least 435 hours in Covered
Employment or, a�er May 31, 1976, including hours in Continuous Non-Covered Employment.
Important: For determining whether a Permanent Break in Service occurs, One-Year Break in
Service Years are not added together unless they come one right a�er the other. The years will not
be added together if there is an interruption with a Plan Credit Year of 435 hours or more of work
in Covered Employment or, a�er May 31, 1976, including hours in Continuous Non-Covered
Employment.
11
Break in Service - After July 31, 1985
Section 6.06.d., page 97
Beginning August 1, 1985, you may have up to 5 consecutive One-Year Breaks in Service without
incurring a Permanent Break in Service, regardless of the number of previously earned Years
of Credited Service.
Th
i
Example: If you earn 2 Years of Credited Service through the Plan Credit Year ending July 31, 2002
but then from August 1, 2002 through July 31, 2006, you fail to work 435 hours in any one of those
Plan Credit Years, even though you now have 4 One-Year Break in Service Years, you have not lost
your 2 Years of Credited Service, because you must incur at least 5 consecutive One-Year Break
in Service Years before it becomes permanent. In the next Plan Credit Year, you work 1,500 hours
thus preventing a Permanent Break in Service.
w
strates ho it works:
u
l
l
i
rt
ha
c
Hours Worked in
s
Plan Credit Year
Credited Service
Covered Employment
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
1,300 hours
1,500 hours
250 hours
-0- hours
-0- hours
275 hours
1,500 hours
1 Year of Credited Service
1 Year of Credited Service, total 2 years
Break in Service, 1 year
Break in Service, 2 years
1 Year of Credited Service, total 3 years
For retirements effective on or a�er March 1, 2005, the total number of Years of Credited
Service, including partial years, will be taken into account when determining whether you
incur Permanent Break in Service.
Grace Periods - After July 31, 1985
Section 6.06.e., page 97
You will be protected from incurring a One-Year Break in Service if the absence from work is due
to the following parental responsibilities:
1. pregnancy of the Participant; or
2. birth or adoption of a child of a Participant; or
3. for child care for the period immediately following childbirth or adoption.
This grace period does not add to your Credited Service. Rather, it is a period which is not counted in
determining whether you worked enough hours to prevent a Break in Service.
In order to secure this grace period, you must provide wri�en notice to the Board within 60 days
a�er the occurrence of the circumstance entitling you to this grace period. Wri�en evidence must be
presented, as the Board may require.
12
Separation from Covered Employment:
Section 6.07, page 98
If you have not worked at least 435 hours in Covered Employment in either one of two consecutive
Plan Credit Years a�er August 1, 1975, the amount of monthly pension earned before your
“Separation from Covered Employment” remains “frozen” (but not less than $22.00 will be paid
for each Benefit Unit). For periods prior to August 1, 1975, you incurred a Separation from Covered
Employment if you failed to earn one quarter of a year of Credited Future Service in either one
of two consecutive Plan Credit Years. Refer to Section 3.03.a (2), page 76 for an explanation of the
effect of a “Separation from Covered Employment.”
If you return to Covered Employment and earn additional benefits following a “Separation from
Covered Employment,” the pension amount for additional benefits earned a�er your return to
Covered Employment will be based on the amount payable under the Plan at that time.
Exception:
If you are a Vested Participant whose Annuity Starting date is on or a�er September 1, 2000 you
may be entitled to a “grace period” if you did not work at least 435 hours within a Plan Credit
Year a�er August 1, 1975 because of disability. The maximum “grace period” is 5 Plan Credit
Years for the same disability.
In order to qualify for this “grace period,” you must meet the following conditions:
•
You must have a�ained “Vested” status prior to the Plan Credit Year for which the disability
applies; and
•
You must have worked at least 435 hours in Covered Employment in the Plan Credit Year
immediately preceding the Plan Credit Year in which you became disabled; and
•
You must have received either Workers Compensation Disability Payments or Social Security
Disability Payments during the entire period of your disability for which you are applying for
this “exception” to the “Separation from Covered Employment” provision.
You will not be considered “disabled” if you are working for wages or profits in any
employment.
Exception:
This grace period does not add to your Credited Service
A Participant whose Annuity
or benefit accruals. It is a period that is not counted in
Starting Date is on or after
determining whether you incurred a “Separation from
September,
2000 may be entitled
Covered Employment”.
to a grace period if his failure to
work at least 435 hours in Covered
Employment in a Plan Credit Year
after August 1, 1975 is
due to disability.
In order to apply for this “exception”, you must supply
notice to the Board and you must present wri�en evidence
of your disability including proof of receipt of either Workers
Compensation Disability Payments or Social Security Disability
Payments.
13
Vested Status
Once you achieve Vested Status, you are entitled to a future benefit from the Pension Plan, even
if you stop working and never return to work in Covered Employment. A benefit will be payable
once you meet the age and service requirements for a Regular Pension (age 65), Early Pension, (age
55 with 10 Years of Credited Service) or Service Pension (any age with 25 Benefit Units).
Vested Status - Between June 1, 1976 and January 1, 1997
Section 3.16.a.(2)., page 81
Under the vesting requirements in effect since June 1, 1976, if you are a Participant, you achieve
Vested Status once you have accumulated 10 Years of Credited Service without a Permanent Break
in Service. If you are a Non-Bargained Employee who is a Participant and has at least one hour
of work in Covered Employment a�er May 1, 1989, you achieve Vested Status once you have
accumulated 5 Years of Credited Service without a Permanent Break in Service. (For an explanation
of the Plan’s vesting requirements prior to June 1, 1976, refer to Section 3.16.a.(3)(4)(5), pages 81-82.)
Vested Status - After January 1, 1997
Section 3.16.a.(1)., page 81
If you are a Participant and have at least one hour of work in Covered Employment a�er January 1,
1997, you achieve “Vested” status once you have accumulated at least 5 Years of Credited Service
without a Permanent Break in Service. Note, however, you are no longer a Participant at the end
of any Plan Credit Year where you have a One-Year Break in Service (less than 435 hours). If
you lost Participation as of July 31, 1996, you must re-establish your Participation in the Plan
before you incur a Permanent Break in Service and have at least one hour of work in Covered
Employment on or a�er January 1, 1997 in order to be eligible for the Five-Year Vesting Rule.
Plan Credit
Year
Work
Hours
Credited
Service
Benefit
Unit
1990
1991
1992
1993
1994
1995
1996
500 hours
1,000 hours
1,500 hours
1,200 hours
1,030 hours
500 hours
0 hours
.5 Credit
1.0 Credit
1.0 Credit
1.0 Credit
1.0 Credit
.5 Credit
*
.5 Benefit Unit
1.0 Benefit Unit
1.0 Benefit Unit
1.0 Benefit Unit
1.0 Benefit Unit
.5 Benefit Unit
*
*In the example, the Employee incurred a One-Year Break in Service and ceased Participation on July
31, 1996 because he failed to work at least 435 hours during the 1996 Plan Credit Year.
14
Benefit Units
Generally, Benefit Units are earned, in accordance with the following schedule, for work for which
Employers contribute or are required to contribute to the Pension Fund by a Collective Bargaining
Agreement. Benefit Units are also earned for employment of the same kind before Contributions
began, that is, before August 1, 1962. The amount of your pension is based, in part, on the number
of Benefit Units you earned prior to August 1, 1986, if applicable. On and a�er August 1, 1986, you
continue to accrue Benefit Units, however, the pension amount for Plan Credit Years on or a�er
August 1, 1986 is based on a percentage of eligible Contributions paid on your behalf. Benefit
Units earned both before and a�er August 1, 1986 are also used to determine eligibility for a
Service Pension.
Benefits Units - Before August 1, 1962
One Benefit Unit (or portion of a Benefit Unit) is earned for each Year of Credited Service (or
portion of a Year of Credited Service) earned before August 1, 1962. That is, if you earned a Year of
Credited Past Service before August 1, 1962, you also earned one Benefit Unit. The way in which
Years of Credited Past Service are earned is explained in Section 6.02., pages 90 - 91.
Benefit Units - Between August 1, 1962 and August 1, 1975
You earn Benefit Units for hours worked in Covered Employment, according to the following
schedule:
Hours Worked in
Plan Credit Year
Less than 250 hours
250 to 499 hours
500 to 749 hours
750 to 999 hours
1,000 hours or more
15
Benefit Units
None
.25
.50
.75
1.00
schedule:
Hours Worked in
Plan Credit Year
Less than 500 hours
500 to 599 hours
600 to 699 hours
700 to 799 hours
800 to 899 hours
900 to 999 hours
1,000 hours or more
Benefit Units
None
.50
.60
.70
.80
.90
1.00
If you earn a year of Credited Service in a Plan Credit Year a�er July 31, 1975, but work less than
500 hours in Covered Employment, you will be credited with a portion of a full Benefit Unit based
on the ratio that your hours worked bear to 2,000.
schedule:
Hours Worked in
Plan Credit Year
Less than 500 hours
500 to 599 hours
600 to 699 hours
700 to 799 hours
800 to 899 hours
900 to 999 hours
1,000 to 1,749 hours
1,750 hours or more*
Benefit Units
None
.50
.60
.70
.80
.90
1.00
1.50
NOTE: If you worked 1,750 hours or more in a Plan Credit Year between 1980 and 1986 and retired
on or a�er January 1, 1987, you will receive an additional .50 Benefit Unit at retirement towards
the amount of your monthly pension benefit. The additional .50 Benefit Unit earned between 1980
and 1986 cannot be used to qualify for a Service Pension because a Service Pension only permits
one Benefit Unit per Plan Credit Year.
16
Benefit Units - Beginning August 1, 1986
Beginning August 1, 1986, you earn Benefit Units for hours worked in Covered Employment,
according to the following schedule:
Hours Worked in
Plan Credit Year
Benefit Units
Less than 500 hours
500 to 599 hours
600 to 699 hours
700 to 799 hours
800 to 899 hours
900 to 999 hours
1,000 hours or more
None
.50
.60
.70
.80
.90
1.00
Credited Future Service, Benefit Units, and Accrued Benefits during Periods of Disability
If you are a Participant and absent from Covered Employment, on or a�er August 1, 1962, due
to a disability, you will be granted hours of disability credit toward Credited Service and Benefit
Units for the period you receive California Unemployment Disability or Temporary Workers
Compensation Disability.
In order to receive Credited Service and Benefit Units for a period of disability, you must provide
information about the disability on a form approved by the Board and you must supply proof that
you received either California Unemployment Disability or Temporary Workers Compensation.
Proof may be supplied at the time you file your application for a pension or earlier if you choose.
Credited Future Service, Benefit Units, and Accrued Benefits during Periods of Qualified
Military Service
Prior to December 12, 1994, if you are a Participant, you will receive Credited Future Service, Benefit
Units and benefit accruals for military service during the period you retained re-employment
rights under federal law. To receive Credited Future Service, Benefit Units and benefit accruals for
military service, you must have been employed in the 46 Northern California Counties immediately
before entering military service in work for which Credited Future Service and Benefit Units
is granted and you must have made yourself available for work in the 46 Northern California
Counties within 90 days a�er your release from active duty, or within 90 days a�er recovering
from a disability which continued a�er your release from active duty.
17
Credited Future Service, Benefit Units and benefit accruals are determined by calculating the
average number of hours you worked per week during the 5 year period (or less) immediately
preceding entering the military.
On or a�er December 12, 1994, the provisions of the Uniformed Services Employment and
Reemployment Rights Act of 1994 (USERRA) govern the granting of Credited Service, Benefit Units,
benefit accruals, avoiding Breaks in Service and preventing Separations in Covered Employment
for Participants who are engaged in Qualified Military Service. In order to qualify, the following
conditions must be satisfied:
▪
The Participant makes himself available for Covered
Employment during the period that he has re-employment
rights under USERRA;
▪
The Participant had not incurred a One-Year Break in Service
at the time he or she entered Qualified Military Service; and
▪
The Participant had been employed in Covered Employment
immediately prior to his Qualified Military Service.
Credited Service, Benefit Units and benefit accruals will be credited for Qualified Military Service
based on the greater of the average number of hours worked in a week by the Participant during
(1) the twelve month period immediately preceding the period of Qualified Military Service or; (2)
the 5 year period (or less) immediately prior to entering Military Service. No more than 5 years of
Qualified Military Service may be recognized for any purpose, except as required by law.
In order to secure credit for military service, you must provide proof of military service at the time
you file your pension application or earlier, if you choose.
18
Regular Pension
Sections 3.02 and 3.03., page 75
Eligibility
When you retire, you are eligible for a Regular Pension if:
1. you are least age 65; and
2. you have a�ained Vested status; and
3. you have worked at least 500 hours in Covered Employment since August 1962.
In any event, you are entitled to a Regular Pension once you a�ain Normal Retirement Age as
described in Section 1.21, page 70.
Pension Amount
Sections 3.03., and 3.19., pages 75 and 82
The monthly amount of a Regular Pension effective on and a�er July 1, 2005 is based on:
▪
the number of Benefit Units earned prior to August 1, 1986, if applicable;
▪
the amount payable for each Benefit Unit earned for Covered Employment before August
1, 1986, if applicable;
▪
the amount of eligible Contributions made with respect to work in Covered Employment
on and a�er August 1, 1986;
▪
the percentage crediting factor applied to the amount of eligible Contributions; and
▪
the amount of supplemental benefit, if applicable
The monthly pension which is payable for a pension effective on or a�er July 1, 2005 is the sum of:
▪
$95.00 for each Benefit Unit (proportional amount for fractions) earned before August 1,
1986, if applicable, plus
▪
3.30% of Contributions made for Covered Employment performed within each Plan Credit
Year between August 1, 1986 and August 1, 2003 , provided you work a minimum of 500
hours, plus
▪
2.30% of Contributions made for Covered Employment performed within each Plan Credit
Year a�er July 31, 2003 and before July 1, 2005, provided you work a minimum of 500
hours; plus
▪
2.30% of the first $2.16 of Contributions made for Covered Employment within each Plan
Credit Year a�er June 30, 2005, provided you work a minimum of 500 hours, plus
▪
a supplemental benefit , if applicable, as described in Section 3.19., pages 82-84.
19
Th
i
The following is an example of how the Regular Pension is calculated for a pension effective
August 1, 2009, assuming continuous employment from August 1, 1984 through July 31, 2009 and
the Employee works 1,400 hours per Plan Credit Year at an hourly Contribution Rate of $2.16.
Note, also that a Service Pension is calculated in the same manner. For the purpose of this example,
25.0 Benefit Units have been used which is the minimum number of Benefit Units for a Service
Pension.
w
strates ho it works:
u
l
l
i
rt
ha
sc
Benefit Rate/
Plan Year
Amount of
Monthly Amount
Ending
Contributions Benefit Units Crediting Factor
of Pension
Benefit Units 8/1/84 - 7/31/86
7/31/1987
$3,024.00
7/31/1988
$3,024.00
7/31/1989
$3,024.00
7/31/1990
$3,024.00
7/31/1991
$3,024.00
7/31/1992
$3,024.00
7/31/1993
$3,024.00
7/31/1994
$3,024.00
7/31/1995
$3,024.00
7/31/1996
$3,024.00
7/31/1997
$3,024.00
7/31/1998
$3,024.00
7/31/1999
$3,024.00
7/31/2000
$3,024.00
7/31/2001
$3,024.00
7/31/2002
$3,024.00
7/31/2003
$3,024.00
7/31/2004
$3,024.00
7/31/2005
$3,024.00
7/31/2006
$3,024.00
7/31/2007
$3,024.00
7/31/2008
$3,024.00
7/31/2009
$3,024.00
2
$95.00
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
3.30%
1
2.30%
1
2.30%
1
2.30%
1
2.30%
1
2.30%
1
2.30%
25 Benefit Units
Monthly Amount Regular Pension
Supplemental Benefit, if applicable
A�er Rounding
20
$190.00
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$99.79
$69.55
$69.55
$69.55
$69.55
$69.55
$69.55
$2,303.73
$ 50.00
$2,354.00
If You Are Married When You Retire
If you are married when you retire, the amount of the Regular
Pension will be reduced as described under the 50% Husbandand-Wife Pension, (Section 7.05.a., page 102), or you may choose to
take your pension in the form of a 75% Husband-and-Wife Pension,
(Section 7.06.a., page 102), or a 100% Husband-and-Wife Pension,
(Section 7.06.b., page 103), or Single-Life Pension or a Single-Life
Pension with a Five-Year Guarantee Option, (Section 8.02., page
106). Any one of the Husband-and-Wife Pension payment forms
provides a lifetime benefit to your Spouse upon your death. If you
elect a Single-Life Pension or Single-Life Pension with a Five-Year
Guarantee Option, you must have the wri�en consent of your
Spouse on a form approved by the Board. Your Spouse’s signature
must be witnessed by either a Notary Public or a Trust Fund Representative.
Former Participants in the Rock, Sand and Gravel Plan
Effective on and a�er August 1, 1986, the monthly amount of the Regular Pension payable if you
are a former Participant in the Rock, Sand and Gravel Plan will be the sum of the monthly pension
benefit accrued with the Rock, Sand and Gravel Pension as of July 31, 1978 and the amounts
shown above for each Benefit Unit (or a portion for fractions) and benefit accruals earned a�er
July 31, 1978.
Effective on and a�er January 1, 1993, the monthly amount of the Regular Pension payable if you
are a former Participant in the Rock, Sand and Gravel Plan or performed work for which employer
contributions were required to be made to the Rock, Sand and Gravel Plan will be calculated in
the same manner as shown on the preceding page for benefits earned under this Plan and under
the Rock, Sand and Gravel Plan, provided you have earned 5 years of Credited Service under this
Plan since December 31, 1978.
21
Early Retirement Pension
Sections 3.04 and 3.05., page 77
Eligibility
When you retire, you are eligible for an Early Retirement Pension if:
1. you are least age 55, but not yet age 65; and
2. you have earned at least 10 Years of Credited Service, without a Permanent Break in Service
(not counting any Credited Service earned as a result of work in Continuous Non-Covered
Employment); and
Pension Amount
Sections 3.05. and 3.19., pages 77 and 82
The monthly amount of an Early Retirement Pension is determined as follows:
▪
Calculate the amount of the Regular Pension you would receive if you were age 65 when
your pension starts.
▪
Reduce that amount by ¼ of 1% for each month that you are younger than age 65. (The
amount of the Early Retirement Pension is reduced from the amount of the Regular Pension
because you are younger than age 65 when your pension payments begin and you will
receive benefit payments for a longer period of time).
Example
Assume that you are age 59 and you do not have 25 Benefit Units to qualify for a Service Pension.
Your monthly amount for the Regular Pension (age 65) would be $2,113.73 before rounding. Since
you are currently 59 years old, you are 72 months younger than age 65, which will mean a reduction
of ¼ of 1% for each month you are younger than age 65.
Description
Amount
Monthly Amount of Regular Pension (at age 65)
$ 2,113.73
Subtract 18% of Amount of Regular Pension
(18% is the result of multiplying ¼ of 1% by 72 months)
($380.47)
Monthly Amount of Early Retirement Pension (at age 59)
Add Supplemental Benefit, if applicable
A�er Rounding
$ 1,733.26
$ 50.00
$ 1,783.50
22
If you are married when you retire, the amount of the Early Retirement Pension will be reduced
as described under the 50% Husband-and-Wife Pension, (Section 7.05.a., page 102), or you may
choose to take your pension in the form of a 75% Husband-and-Wife Pension, (Section 7.06.a., page
102), or a 100% Husband-and-Wife Pension, (Section 7.06.b., page 103), or Single-Life Pension or
a Single-Life Pension with a Five-Year Guarantee Option, (Section 8.02., page 106). Any one of
the Husband-and-Wife Pension payment forms provides
a lifetime benefit to your Spouse upon your death. If you
elect a Single-Life Pension or Single-Life Pension with a
Five-Year Guarantee Option, you must have the wri�en
consent of your Spouse on a form approved by the Board.
Your Spouse’s signature must be witnessed by either a
Notary Public or a Trust Fund Representative.
23
Disability Pension
Sections 3.06., through 3.13., pages 77-80
Eligibility
If you are disabled from performing work as a laborer in the Building and
Construction Industry, you may be eligible for a Disability Pension if:
1. you have not yet reached age 65; and
2. you have earned at least 10 Years of Credited Service, without a
Permanent Break in Service (not counting any Credited Service earned
as a result of work in Continuous Non-Covered Employment); and
3. you have, as a result of work in Covered Employment, earned at least
2 quarters of Credited Service in the Plan Credit Year in which you
became totally disabled or in the 2 consecutive Plan Credit Years immediately preceding
the Plan Credit Year in which you became totally disabled.
Totally Disabled Means
You will be considered “totally disabled” if the Social Security Administration grants you a
Disability Award, or its equivalent.
In the absence of either a Social Security Award or its equivalent, you may also be considered
totally disabled if, based on competent medical evidence, you are unable to work as a laborer in
the Building and Construction Industry, provided the disability is expected to result in death or
to last indefinitely, and provided the disability is not the result of an a�empt to commit a felony,
engagement in a felonious activity or occupation, a self-inflicted injury, habitual drunkenness or
use of narcotics not prescribed by a Physician.
The determination as to whether you are unable to perform work in the Building and Construction
Industry rests solely with the Board. From time to time, the Board may request evidence that the
disability continues.
Proof of Disability Required
So that your Disability Pension becomes payable as soon as possible, you should file your completed
pension application with the Trust Fund Office no later than the sixth month of disability along
with proof of your disability.
If you have been approved for a Social Security Disability, a copy of the Social Security “Notice of
Award” should be sent to the Trust Fund Office so that it is received at the Trust Fund Office no later
than 60 days from the date the Notice is issued. This will permit the Plan to pay benefits retroactive
to the seventh month of disability. Otherwise, the benefit will become effective the first of the month
following the date the Trust Fund Office receives the Notice. In certain cases, a disability finding by
another organization may be considered equal to the Social Security Notice of Award.
24
In the absence of a Social Security Award or its equivalent, you will be required to submit medical
evidence of your disability on a form approved by the Board, as well as medical records that relate
to the disability. On the form, the physician should describe the disability and issue an opinion as
to whether you are unable to perform work as a laborer in the Building and Construction Industry.
If you are approved based upon medical evidence and you are subsequently also awarded a Social
Security Disability Benefit, a copy of the Social Security Notice of Award should be sent to the
Trust Fund Office so that it is received at the Trust Fund no later than 60 days from the date the
Notice is issued.
Pension Amount
The monthly amount of the Disability Pension effective on and a�er January 1, 1997 is $50.00 for each
Benefit Unit plus any fraction. A supplemental benefit of $50.00 per month is added to this total.
If you have not worked at least 435 hours in Covered Employment in either one of 2 consecutive
Plan Credit Years, the amount of monthly pension earned before a “Separation from Covered
Employment” remains “frozen” (but not less than $22.00 for each Benefit Unit). If you return to
Covered Employment and earn additional benefits, the pension amount earned a�er you return
will be based on the amount payable under the Plan at that time.
The monthly amount of a Disability Pension will not be less than the monthly amount payable
at your age under an Early Retirement Pension (but not less than an Early Retirement Pension
payable at age 55).
If you are married when you retire, the amount of the Disability Pension
will be reduced as described under the 50% Husband-and-Wife Pension,
(Section 7.05.a., page 102), or you may choose to take your pension in the
form of a 75% Husband-and-Wife Pension, (Section 7.06.a., page 102), or
a 100% Husband-and-Wife Pension, (Section 7.06.b., page 103), or SingleLife Pension or a Single-Life Pension with a Five-Year Guarantee Option,
(Section 8.02., page 106). Any one of the Husband-and-Wife Pension
payment forms provides a lifetime benefit to your Spouse upon your death.
If you elect a Single-Life Pension or Single-Life Pension with a Five-Year
Guarantee Option, you must have the wri�en consent of your Spouse on a
form approved by the Board. Your Spouse’s signature must be witnessed
by either a Notary Public or a Trust Fund Representative.
25
Pension Payments
Disability Pension payments begin a�er you have been disabled for 6 full calendar months, if you
file an application before then, or you file your Notice of entitlement to Social Security Disability
benefits, or equivalent with the Trust Fund Office so that it is received at the Trust Fund Office
within 60 days from the date shown on the Notice. Otherwise, payments will not begin until the
first day of the month a�er you file an application with the Trust Fund Office.
A Disability Pension is payable for as long as you remain totally disabled.
If You Recover from a Disability
Once you recover from your disability, you are no longer eligible to receive a Disability Pension
from the Plan. However, if you return to work in Covered Employment, you can then earn
additional benefits.
If you are receiving a Disability Pension and you are younger than age 65 and no longer eligible
for a Social Security Disability benefit, or its equivalent, or if you recover from your disability, you
must report this to the Trust Fund Office, in writing, within 15 days from the date you receive
notice from the Social Security Administration (or equivalent) of your loss of eligibility or your
recovery, as the case may be. Otherwise, you could lose benefits when you retire again.
If you are receiving a Disability Pension and you a�ain age 65, your pension will continue for the
remainder of your life, so long as you remain retired, even if you recover from disability.
A Totally Disabled Pensioner Receiving
an Early Retirement or Service Pension
Sections 3.10. and 3.11., page 80
If you are a Pensioner receiving an Early Retirement Pension who was totally disabled when your
pension began, or you are a Pensioner receiving a Service Pension who becomes totally disabled,
you may change your pension to a Disability Pension, if you choose. Depending upon whether the
effective date of the Disability Pension falls before or a�er the effective date of the Early Retirement
Pension, the Plan may owe you additional monies or the Plan may need to recover an overpayment
from you.
26
Service Pension
Eligibility
Sections 3.14, and 3.15., page 81
When you retire, you are eligible for a Service Pension if:
1. you are younger than age 65; and
2. you have earned at least 25 Benefit Units without a Permanent Break in Service (no more
than one Benefit Unit per Plan Credit Year will be counted for this purpose); and
Pension Amount
The monthly amount of the Service Pension is determined in the same manner as is the Regular
Pension. (See page 20 for an example of the way a Regular Pension is calculated and Section 3.03,
page 75-77.)
If you are married when you retire, the amount of the Service Pension will be reduced as described
under the 50% Husband-and-Wife Pension, (Section 7.05.
a., page 102), or you may choose to take your pension in
the form of a 75% Husband-and-Wife Pension, (Section
7.06.a., page 102), or a 100% Husband-and-Wife Pension,
(Section 7.06.b., page 103), or Single-Life Pension or a
Single-Life Pension with a Five-Year Guarantee Option,
(Section 8.02., page 106). Any one of the Husband-andWife Pension payment forms provides a lifetime benefit
to your Spouse upon your death. If you elect a Single-Life
Pension or Single-Life Pension with a Five-Year Guarantee
Option, you must have the wri�en consent of your Spouse on a form approved by the Board. Your
Spouse’s signature must be witnessed by either a Notary Public or a Trust Fund Representative.
27
Deferred Vested Pension
Sections 3.16., and 3.17., page 81 and 82
Eligibility
A Deferred
If you leave Covered Employment a�er having a�ained Vested Status,
Vested Pension is
you will be eligible for a Deferred Vested Pension at age 65. You
payable to you if you are
could begin receiving a Deferred Vested Pension before age 65 if Vested and you have not worked
you meet the age and service requirements for an Early Retirement
in Covered Employment for at
or Service Pension. (See pages 77 and, 81 respectively.)
least 435 hours in either one of 2
consecutive Plan Credit Years
before you retire.
Pension Amount
A Deferred Vested Pension is calculated in the same way as a Regular, Early Retirement, or Service
Pension, depending on your accrued benefits and age when your pension begins. If you incur a
“Separation from Covered Employment,” the amount of your Deferred Vested Pension will be
“frozen” at the level payable by the Plan at the time of your Separation but not less than $22.00 for
each Benefit Unit. For additional information concerning “Separation from Covered Employment,”
refer to Article 6., Section 6.07., page 98.
Supplemental Benefit
If you are receiving a Deferred Vested Pension you are eligible to receive a monthly supplemental
benefit of $50.00 if you meet the work-hour requirement shown below:
For Retirement in:
Required Number of Hours Worked for Contributing
Employers in the 48-Month Period
Preceding the Annuity Starting Date:
1987
1988
1989
1990 and therea�er
500
1,000
1,500
2,000
If you are married when you retire, the amount of the Deferred Vested Pension will be reduced
as described under the 50% Husband-and-Wife Pension, (Section 7.05.a., page 102), or you may
choose to take your pension in the form of a 75% Husband-and-Wife Pension, (Section 7.06.a., page
102), or a 100% Husband-and-Wife Pension, (Section 7.06.b., page 103), or Single-Life Pension or
a Single-Life Pension with a Five-Year Guarantee Option, (Section 8.02., page 106). Any one of the
Husband-and-Wife Pension payment forms provides a lifetime benefit to your Spouse upon your
death. If you elect a Single-Life Pension or Single-Life Pension with a Five-Year Guarantee Option,
you must have the wri�en consent of your Spouse on a form approved by the Board. Your Spouse’s
signature must be witnessed by either a Notary Public or a Trust Fund Representative.
28
Reciprocal Pension
Article 4., page 85
A Reciprocal Pension is provided for an Employee who might not otherwise qualify for a pension,
or whose pension might not be the full amount, because his years of employment were divided
between this Plan and other Laborers Pension Plans in the United States, which have adopted the
National Reciprocal Agreement, or any other Pension Plan which this Pension Plan recognizes as
a Related Plan. Refer to page 85 for further information on Reciprocal Pensions.
Eligibility
When you retire, you are eligible for a Reciprocal Pension if you meet the following requirements:
1. If you would be entitled to a pension under this Plan based on your Combined Credited
Service (excluding any Credited Service earned in Continuous Non-Covered Employment)
or your Combined Benefit Units being treated as Northern California Credited Service or
Northern California Benefit Units; and
2. If you have at least one year of Northern California Credited Service and one year of
Related Credit from each of the other Related Plans whose credit qualifies you for a
Reciprocal Pension, or you have worked a�er August 1, 1962 for at least 500 hours for
which Contributions were required to be made to this Plan or a Related Plan; and
3. If you are applying for a Disability Pension under this Plan, you are judged to be totally
disabled by each of the Related Plans whose credit qualifies you for a Reciprocal Pension;
and
4. If age is a requirement for the pension, you meet the minimum age requirement for each of
the Related Plans whose credit qualifies you for a Reciprocal Pension.
Related Hours will be considered in determining whether you have incurred a Permanent Break
in Service or a Separation from Covered Employment. However, once you stop working for
Employers who contribute to this Plan or to a Related Plan, the determination as to whether
you have incurred a Permanent Break in Service will be based only on your Northern California
Credited Service, not on your Combined Credited Service.
Pension Amount
Sections 3.03., 3.05., 3.07., and 3.19., pages 75, 77, 78 and 82 and Section 4.09., page 87
A Reciprocal Pension is calculated in the same way as the Regular, Early Retirement, Disability,
Service or Deferred Vested Pension, depending on the type of Reciprocal Pension for which you
are eligible. A monthly supplemental benefit of $50.00 is added to the pension amount, provided
that the larger portion of Combined Credited Service is Northern California Credited Service.
Only Northern California Benefit Units and Contributions apply in determining the amount of a
Reciprocal Pension under this Plan. Related Plans may also pay Reciprocal Pensions based on the
rules and regulations governing each of those plans. The total pension amount to which you may
be entitled will be the sum of all Reciprocal Pensions, this Plan’s and all Related Plans.
29
This is an example of a 55 year old Participant whose work
Related Plan
history is divided between a Related Plan and the Northern
Plan Year
Years
California Laborers Pension Plan. Without the Related Plan
service, the Participant would not be eligible for a Pension
1994
1
1995
1
under the Northern California Laborers Pension Plan until
1996
1
age 65 (Five Years of Credited Service). In this instance, he
1997
1
can use service Credit from the Related Plan to qualify for an
1998
1
“Early Retirement” Pension (Ten Years of Credited Service).
1999
1
to August 2000
1
The amount in the example is subject to the Early Retirement
factors explained on page 22.
Northern California Laborers Plan
Related
Plan Years:
7
Northern
California Years:
3
Plan Credit Year
Years
08/01/00-07/31/01
08/01/01-07/31/02
08/01/02-07/31/03
08/01/03-07/31/04
08/01/04-07/31/05
08/01/05-07/31/06
08/01/06-07/31/07
08/01/07-07/31/08
08/01/08-07/31/09
1
1
1
1
1
1
1
1
1
Hours
Worked
1,400
1,400
1,400
1,400
1,400
1,400
1,400
1,400
1,400
Eligible
Contributions
$2.16
$2.16
$2.16
$2.16
$2.16
$2.16
$2.16
$2.16
$2.16
The Related
Plan would pay
you a pension
for these years.
%
Factor
Amount
3.30%
3.30%
3.30%
2.30%
2.30%
2.30%
2.30%
2.30%
2.30%
$99.79
$99.79
$99.79
$69.55
$69.55
$69.55
$69.55
$69.55
$69.55
Northern California Pension
Reduction for Early Retirement
Supplemental Benefit*
Total (ROUNDED) Northern California Pension
Combined Years:
16
Related Plan
Years =7
$716.67
-$215.00
$ 50.00
$552.00
*Eligible for the Supplement Benefit because the majority of Credit Service is Northern California
A supplemental benefit of $50.00 is added to the monthly amount, because the larger portion (9
years) of his Combined Credited Service (16 years) is Northern California Credited Service. If the
larger portion of the Participant’s Combined Credited Service was from the Related or Reciprocal
Plan, the Participant would not be eligible to receive the “Supplemental Benefit”.
Without the Reciprocal Pension, this Employee may not have been eligible for a pension from
either this Plan or a Related Plan. However, a Reciprocal Pension permits service under both plans
to be combined. As a result, the Employee receives a monthly Reciprocal Pension of $552.00 from
this Plan, plus a monthly reciprocal pension from the Related Plan. Always contact the Related or
Reciprocal Plan to determine what Pension you may be entitled to from that Plan.
If you are married when you retire, the amount of the Reciprocal Pension will be reduced as
described under the 50% Husband-and-Wife Pension, (Section 7.05.a., page 102), or you may
choose to take your pension in the form of a 75% Husband-and-Wife Pension, (Section 7.06.a.,
page 102), or a 100% Husband-and-Wife Pension, (Section 7.06.b., page 103), or Single-Life Pension
or a Single-Life Pension with a Five-Year Guarantee Option, (Section 8.02., page 106). Any one of
the Husband-and-Wife Pension payment forms provides a lifetime benefit to your Spouse upon
your death. If you elect a Single-Life Pension or Single-Life Pension with a Five-Year Guarantee
Option, you must have the wri�en consent of your Spouse on a form approved by the Board. Your
Spouse’s signature must be witnessed by either a Notary Public or a Trust Fund Representative.
30
Adjustments to Pension
Besides the monthly amount payable to you as a Regular, Early Retirement, Service, Disability or
Reciprocal Pension, you may be entitled to additional adjustments to your monthly benefit. These
adjustments or “supplemental benefits” are not a regular part of the Plan’s benefit formula, but
are granted from time to time based on the funded position of the Plan. They apply to Participants
who retire during specific periods and meet certain requirements. Supplemental benefits may be
permanent or temporary.
Generally speaking, “permanent supplemental benefits” are ongoing increases to the monthly
benefits of eligible Participants. Unless required to be eliminated or reduced by legislation or
regulations that relate to the funded position of the Plan, they are not expected to have a specific
ending or “sunset” date. However, there is no guarantee that the Board of Trustees will continue
to make any particular permanent supplemental benefit available to Participants who retire in the
future.
In contrast, “temporary supplemental benefits” are increases to the monthly benefit of eligible
Participants that have an automatic ending or “sunset” date, unless extended by action of the
Board of Trustees.
This booklet contains descriptions of supplemental benefits in effect for eligible Participants
who retire on or a�er the effective date of the booklet’s printing. For information concerning
supplemental benefits payable to Participants or Beneficiaries that began prior to that date, please
contact the Trust Fund Office.
Permanent Supplemental Benefits
As of the date of the booklet printing, there are two separate $25.00
permanent supplemental benefits available to retiring Participants for a
total of $50.00. If you are receiving a Reciprocal Pension, you must have
the majority of Credited Service in the Northern California. If you are
receiving a Deferred Vested Pension, you must have worked at least
2,000 hours for one or more Contributing Employers within the 48month period immediately preceding your Annuity Starting Date.
The permanent supplemental benefit amounts are not subject to any adjustment for early
retirement, but are subject to adjustment for payment under the Husband-and-Wife Pension or
Five-Year Guarantee Option.
31
Temporary Supplemental Benefits
As of the date of the booklet printing, a temporary supplemental benefit was being paid to
Pensioners and Beneficiaries based on pensions that became effective on or a�er December 1, 1993.
This benefit is due to terminate on November 30, 2010. As with the Permanent Supplement, if you
are receiving a Reciprocal Pension, you must have the majority of Credited Service in Northern
California. If you are receiving a Deferred Vested Pension, you must have 2,000 worked hours for
one or more Contributing Employers within the 48 month period immediately preceding your
Annuity Starting Date. If you are under age 65 when you retire, the temporary supplemental
benefit is $150.00 per month. Once you reach age 65, the Temporary Supplement Benefit is reduced
to $75.00.
If you are over age 65 when you retire, the temporary supplemental benefit is $75.00 per month.
If you are the eligible surviving Spouse receiving payment under a Husband-and-Wife Pension,
the temporary supplemental benefit is $75.00 per month until the date that your deceased Spouse
would have a�ained age 65, had he or she lived. Therea�er, the monthly benefit amount is reduced
to $37.50.
32
Credited Service, Benefit Units and Pension Amounts
for Employees Previously Covered by
the Laborers Rock, Sand and Gravel Pension Trust Fund
Article 5., page 88
On January 1, 1979, the Laborers Rock, Sand and Gravel Pension Trust Fund merged with the
Laborers Pension Trust Fund. Employees who participated in the Rock, Sand and Gravel Plan are
entitled to Credited Service, Benefit Units, and accrued benefits under this Plan for employment
previously covered by the Rock, Sand and Gravel Plan.
The following is an explanation of how employment with Rock, Sand and Gravel employers is
credited under this Plan.
Credited Service
A former Rock, Sand and Gravel Participant receives Credited Service for employment before
January 1, 1979 in accordance with the rules of the Rock, Sand and Gravel Plan. He is granted
the same amount of Credited Service under this Plan as he had earned under the Rock, Sand and
Gravel Plan for employment with Contributing Employers before that date. In addition, a former
Rock, Sand and Gravel Participant began to receive Credited Service under this Plan’s rules for
employment with Contributing Employers on and a�er August 1, 1978, because Credited Service
is granted under this Plan for work during a Plan Credit Year which is August 1 through July 31,
rather than on the basis of a calendar year, as was the case under the Rock, Sand and Gravel Plan.
Therefore, during that transition period, a former Rock, Sand and Gravel Participant received double
credit for his work with Contributing Employers from August 1, 1978 through December 31, 1978.
Benefit Units
A former Rock, Sand and Gravel Participant receives Benefit Units for Covered Employment
before August 1, 1978 in accordance with the Rock, Sand and Gravel Plan. He is granted the same
number of Benefit Units (up to a maximum of 25) under this Plan as he had earned under the
Rock, Sand and Gravel Plan for Covered Employment before August 1, 1978. On and a�er August
1, 1978, he began to receive Benefit Units for Covered Employment in accordance with the rules
of this Plan.
Pension Amounts
A former Rock, Sand and Gravel Participant will receive a Regular Pension determined in
accordance with the provisions of the Rock, Sand and Gravel Plan for each Benefit Unit earned
before August 1, 1978 (up to a maximum of 25 Benefit Units), plus amounts shown under the
Regular Pension for each Benefit Unit earned under this Plan a�er July 31, 1978. Pensions effective
on and a�er January 1, 1993 will be calculated in accordance with Section 3.03.b., Section 3.05.
or Section 3.07.b.of the Pension Plan Rules and Regulations for Benefit Units earned under this
33
Plan and under the Rock, Sand and Gravel Plan, provided the Participant has earned 5 Years of
Credited Service under this Plan since December 31, 1978.
In any event, a former Rock, Sand and Gravel Participant will not receive a smaller monthly
pension for employment with Contributing Employers before January 1, 1979 than he had earned
under the Rock, Sand and Gravel Plan by that date.
Employees who had a Separation from Covered Employment before January 1, 1979 will receive
the amount payable by the Rock, Sand and Gravel Plan at the time of the separation (but not less
than $22.50 will be paid for each Benefit Unit).
Service and Deferred Vested Pensions are calculated in the same way as Regular Pensions. Early
Retirement Pensions are reduced according to the Employee’s age at retirement.
Disability Pensions effective on or a�er January 1, 1979 for former Rock, Sand and Gravel
Participants are based on $22.50 for each Benefit Unit earned before August 1, 1978 (up to a
maximum of 25 Benefit Units) and on $25.00 for each Benefit Unit earned a�er that date. Disability
Pensions effective on or a�er January 1, 1993 for former Rock, Sand and Gravel Participants will be
calculated in accordance with Section 3.07.a. of the Pension Plan Rules and Regulations for Benefit
Units earned under this Plan and under the Rock, Sand and Gravel Plan, provided the Participant
has earned 5 Years of Credited Service under this Plan since December 31, 1978.
If you are a former Rock, Sand and Gravel Participant and you
do not have a copy of the Laborers Rock, Sand and Gravel
Pension Trust Fund booklet, you should request a copy from
the Trust Fund Office. Your rights to Credited Service, Benefit
Units and benefit amounts earned for work before January 1,
1979 are determined under the rules of the Rock, Sand and
Gravel Plan, therefore, you should have a copy of that booklet
for reference.
34
If you have questions
about your pension rights
under the merger of these
Laborers Pension Funds,
contact the Trust Fund Office at
1 (707) 864-2800 or
toll-free at 1 (800) 244-4530.
Payment Methods
When you make the decision to retire, you will be asked to choose how you want your pension
to be paid. The term “payment forms” is used when describing the options available to you. The
payment forms available to you are described below.
Regardless of which payment form you choose, once payments begin, you cannot
change that form of payment even if you later marry, divorce or remarry.
If you are married on the date you retire, the Trust Fund will automatically pay your retirement
benefits in the form of a 50% Husband-and-Wife Pension, unless you elect to waive that payment
form and your Spouse consents to that election in writing on a form approved by the Board. Your
Spouse’s signature on the form must be witnessed by a Notary Public or an authorized Trust Fund
Representative. If you are not married, you cannot locate your Spouse, or you and your Spouse
are legally separated, you must certify that fact in writing on a form approved by the Board.
Your signature must be witnessed by a Notary Public or an authorized Trust Fund Representative
in order for the Trust Fund to pay your monthly pension without the 50% Husband-and-Wife
actuarial reduction. (Additional documentation may be required in some cases.)
Standard Payment Methods
Single-Life Pension
If you are single, or if you are married but elect to waive all of the Husband-and-Wife Pensions
(the 50% Husband-and-Wife Pension is also called the Plan’s qualified joint-and-survivor benefit)
and your Spouse consents to that election in writing on a form approved by the Board with the
signature witnessed by a Notary Public or Trust Fund Representative, you may elect to receive
monthly pension payments for as long as you live with no further benefits payable by the Plan
following your death.
50% Husband-and-Wife Pension
Article 7., page 99
If you are married, you will automatically receive the 50% Husband-and-Wife Pension unless you
elect to waive that payment form. If a payment form other than one of the Husband-and Wife
Pension options is elected (see Husband-and-Wife Optional 75% and 100%, page 37), your Spouse
must consent to that election in writing on a form approved by the Board and acknowledge the effect
of that waiver in front of a Notary Public or Trust Fund Representative. The 50% Husband-and-Wife
Pension may be waived any time within 90 days before pension payments begin. However, if the
wri�en explanation is provided a�er the Annuity Starting Date, the election period ends 30 days
a�er the wri�en explanation is provided.
The 50% Husband-and-Wife Pension provides a fixed monthly payment for your lifetime and,
a�er your death, provides a lifetime pension to your surviving Spouse which is equal to one-half
the amount you were receiving. The amount you will receive under a 50% Husband-and-Wife
Pension is adjusted to take into account your expected life span and that of your Spouse.
35
You will receive a wri�en explanation of the terms and conditions of the 50% Husband-andWife Pension and, if you and your Spouse reject it, the effect this will have on you. The wri�en
explanation will be provided no later than 30 days prior but not more than 90 days before your
Annuity Starting Date. You may waive the requirement that the wri�en explanation be provided
30 days before the Annuity Starting Date, so long as the wri�en explanation was provided more
than 7 days before your pension payments commence.
Pop-Up Feature
Effective for retirements on and a�er October 1, 1998, if the Spouse dies before the Pensioner who
is receiving a 50%, 75% or 100% Husband-and-Wife Pension, the Pensioner’s monthly benefit will
increase to the amount that would have been payable had the Pensioner not elected a Husbandand-Wife Pension. The increased, monthly benefit becomes payable on the first of the month
following the death of the Spouse. This “pop-up” feature is offered at no additional charge to
Pensioners electing a Husband-and-Wife Pension.
Important Facts Regarding the Husband-and-Wife Pension
1. A Husband-and-Wife Pension will not be paid to the surviving Spouse if the Pensioner and
Spouse were not married on the pension Annuity Starting Date and have not been married
to each other for at least one year on the date of the Pensioner’s death.
2. A Husband-and-Wife Pension, once payable, cannot be revoked or the Pensioner’s benefits
increased because of divorce.
3. The rights of a former Spouse to any share of a Participant’s pension, as set forth under a
Qualified Domestic Relations Order (QDRO), will take precedence over any claims of the
Participant’s (current) Spouse at the time of his retirement or death.
36
Optional Payment Methods
Five-Year Guarantee Option
Instead of the payment methods described under the Single-Life
Pension and the Husband-and-Wife Pensions, you may elect to receive
your pension under the Five-Year Guarantee Option. Under this
option, you receive a reduced amount in exchange for the guarantee
that if you die before receiving 60 monthly payments, the remaining
payments will be made to your named Beneficiary. Of course, benefits
are payable to you for as long as you live.
Election of this option must be made before pension benefits start.
Once payments begin, this option cannot be canceled.
If you are married your Spouse must consent to this election on a form provided by the Board and
the signature must witnessed by a Notary Public or an authorized Trust Fund Representative.
Lump-Sum Payment (in lieu of monthly benefits)
If the Actuarial Present Value of your monthly benefit is $5,000 or less, the Plan will pay you or
your surviving Spouse, the lump sum amount of the Actuarial Present Value, in lieu of a monthly
benefit. Following this payment, no further benefits are payable.
This payment form provides a fixed monthly payment for your lifetime and, a�er your death,
provides a lifetime pension to your surviving Spouse which is equal to 75% of the amount you
were receiving. The amount you will receive under a Husband-and-Wife Pension is adjusted to
take into account your expected life span and that of your Spouse.
This payment form provides a fixed monthly payment for your lifetime and, a�er your death,
provides a lifetime pension to your surviving Spouse which is equal to 100% of the amount you
were receiving. The amount you will receive under a Husband-and-Wife Pension is adjusted to
take into account your expected life span and that of your Spouse.
37
Federal and State Income Tax
Withholding, Rollover Distributions
and Notice of Early Distribution Penalty
Federal Income Tax Withholding
Federal income taxes will be withheld from any benefits paid by the
Plan which exceed the limits established by the Internal Revenue
Service, unless you elect not to have income taxes withheld. You
will be given detailed information and the opportunity to elect or
reject withholding when you apply for benefits.
State Income Tax Withholding
If you have questions
concerning income taxes,
seek the advice of a tax
professional. If you have
questions about general
information, contact the
Fund Office at
(707) 864-2800 or toll-free
at (800) 244-4530.
State income taxes will be withheld from any benefits paid by the
Plan which exceed the limits established by the California Franchise Tax Board, unless you elect
not to have income taxes withheld. You will be given detailed information and the opportunity to
elect or reject withholding when you apply for benefits.
Rollover Distributions
If you or your Spouse receive certain types of benefits from the Plan, 20% must be withheld for
income tax purposes. These types of benefits are lump sums, installment payments over a period
of less than 10 years, and payments of certain death benefits. However, these types of benefits may
be eligible for a direct “rollover” into an IRA or other tax-exempt retirement plan. If you roll over
your benefits, the 20% withholding is not mandatory.
Notice of Early Distribution Penalty
A 10% penalty may be assessed on early distributions from the Pension Plan. This is a penalty and
is in addition to any other income tax due. Unless a Participant meets the requirements of one of
the exceptions shown below, any lump sum payment of his pension following a separation from
service, which occurs before the Participant a�ains age 59 ½, will be subject to this penalty.
The following distributions made prior to age 59 ½, are exempt from the early distribution penalty, if:
1. payment is in the form of a life annuity (including a joint and survivor annuity) following
separation from service;
2. payment is to a Participant who is at least age 55 made in accordance with the Plan’s early
retirement provisions;
3. payment is made due to a Participant’s death or disability, or to an alternate payee as
decreed by a Qualified Domestic Relations Order; or
4. payment is made to a Participant that is used to pay medical expenses otherwise deductible
under Internal Revenue Code Section §213.
38
Death Benefits
Surviving Spouse Pension
Benefits for the surviving Spouse of a Vested Participant who dies prior to retiring are
automatically in effect for every active Employee and every Participant who has separated from
service, regardless of age and who:
1. has a Vested right to a current or deferred benefit under the Pension Plan;
2. has had at least one hour of service in Covered Employment on or a�er September 2, 1974 and
3. dies a�er August 22, 1984, but before starting to receive retirement benefits from the Trust
Fund.
Except as provided in a Qualified Domestic Relations Order, the surviving Spouse Pension is only
payable if you are married on the day you die and you have been married throughout the one year
period to that same person.
Whether you die before or a�er you reach your earliest retirement age, your surviving Spouse’s
benefit will be paid as a 50% Husband-and-Wife pension. Under this form of pension, your
surviving Spouse will receive one half of your actuarially adjusted benefit and is payable for
the surviving Spouse’s lifetime. If you are not qualified for a Service Pension or you have not
yet reached age 65, your pension will also be actuarially adjusted by the early retirement factor
(¼ of one percent for each month you are younger than age 65). This adjustment is in addition
to the 50% Husband-and-Wife pension adjustment. If the surviving Spouse benefit begins a�er
you reached age 65 there is no adjustment for early retirement just the 50% Husband-and-Wife
pension option.
If you die before you reach your earliest retirement age and you were not qualified for a Service
Pension or Disability Pension, your surviving Spouse will be paid a pension benefit in the month
following the month you would have reached your earliest retirement age. Your surviving
Spouse must notify the Trust Fund Office of your death and provide whatever documents are
needed including a formal application before any Pension benefits will be paid. The amount
of the surviving Spouse pension will be determined as if you had le� Covered Employment on
the date of your death (or the date you last worked in Covered Employment) and retired on a
50% Husband-and-Wife Pension upon reaching your earliest retirement age. Earliest retirement
age means age 55 if you have at least 10 Years of Credited Service without a Permanent Break in
Service otherwise age 65 with 5 Years of Credited Service.
For example if you are age 45 and you have 15 Years of Credited Service when you die, the earliest
you could have retired with 15 Years of Credited Service would have been age 55. Your pension is
first reduced actuarially for an Early Retirement Pension at age 55 and then adjusted for the 50%
Husband-and-Wife survivor option. Your surviving Spouse, however, would not begin receiving
the 50% surviving Spouse Benefit until the month following the month you would have reached
age 55 (your earliest retirement date) had you lived. In other words your Spouse would need to
wait ten years to begin receiving her surviving Spouse Benefit.
39
If you die a�er reaching your earliest retirement age and you are not qualified for a Service Pension
or Disability Pension, your Spouse will be paid a surviving Spouse Pension as if you had retired
on a 50% Husband-and-Wife Pension the day prior to your death. The surviving Spouse Pension
may begin as early as the month following your death. Your surviving Spouse must notify the
Trust Fund Office of your death and provide whatever documents are needed including a formal
application for benefits before the surviving Spouse Pension will be paid.
Your surviving Spouse could avoid any Early Retirement reduction factor by postponing her
benefit to the first of the month following the month you would have reached age 65 had you
lived but she would be giving up a certain number of pension payments to do so. The surviving
Spouse Pension, however, must begin no later than the December 1st of the calendar year in which
you would have reached 70 ½, had you lived.
There is no charge to you or your Spouse for the Pre-Retirement Death Benefit and no extra
actuarial adjustment in your pension on account of it.
IMPORTANT REMINDERS:
▪
As with surviving Spouse coverage a�er you retire, the rights of a former Spouse(s) under
a Qualified Domestic Relation Order may reduce or eliminate pre-retirement death benefits
for the person to whom you are married at the time you die.
▪
Your surviving Spouse is responsible for notifying the Trust Fund Office of your death and
is responsible for providing whatever documents are required in addition to the formal
Application for benefits before the surviving Spouse Pension can be paid.
▪
These Rules apply only to death benefits under the Pension Plan. They do not affect any
job-related insurance coverage or other retirement plans.
▪
The surviving Spouse Pension described here does not apply unless you have achieved
Vested status under this Plan.
40
Pre-Retirement Death Benefit
If you die prior to your retirement, and you have no Spouse, your surviving children, younger than
age 21 will be entitled to 36 monthly payments equal to the amount of the Regular Pension earned
to the date of your death, provided that you meet the following requirements:
▪
you worked at least 435 hours in Covered Employment or in employment covered by a
Related Plan in at least one of the 2 Plan Credit Years prior to the Plan Credit Year in which
you die; and
▪
you have earned 5 Years of Credited Service (not counting any Credited Service earned as a
result of Continuous Non-Covered Employment) or you had 5 years of Combined Credited
Service under this Plan and a Related Plan, based on employment for which Contributions
were payable, and the Related Plan also provides a Pre-Retirement Death Benefit.
Pensioner’s Lump Sum Death Benefit
If you die on or a�er January 1, 1997, a Lump-Sum Death Benefit will be paid to your surviving
Spouse in an amount equal to $100.00 for each full Benefit Unit (or a proportionate amount for
a fraction of a Benefit Unit), that you had earned under the Plan at the time of retirement. If you
have no surviving Spouse, the benefit will be paid to one or more of your surviving relatives in
the following order:
a. Child(ren)
b. Parent(s)
c. Sibling(s)
If you are not survived by any of the preceding relatives, the Trust Fund will reimburse the
individual responsible for your funeral expenses, up to the amount of the Lump-Sum Death
Benefit. Any remaining portion will be paid to your estate.
If a Lump-Sum Death Benefit is not payable under any of the above circumstances, it will be paid
to your estate.
Effective January 1, 2005, this benefit will also be paid in the case of a Participant who has filed an
application for retirement, but dies prior to his Annuity Starting Date.
41
Qualified Domestic Relations Orders
In general, except to the extent required under a Qualified Domestic
Relations Order (QRDO), your benefits under the Plan cannot be
claimed by any creditor, nor can you, your Spouse or Beneficiary
transfer any rights to these benefits to any other person or entity.
With the exception of certain orders entered prior to January 1,
1985, the Trust Fund is only required to comply with a Qualified
Domestic Relations Order provided for under ERISA §206(d) and
Internal Revenue Code §414(p). Under those provisions, the order
must be a judgment, decree or order made pursuant to state law
relating to child or spousal support, or marital property rights
directing that all or part of a Participant’s benefit be paid to an
alternate payee.
Except as provided in a
Qualified Domestic
Relations Order (QRDO),
the person to whom you are
married when
you retire under the
Husband-and-Wife Pension
remains entitled to the
survivor benefit, even if you
subsequently divorce.
The order must clearly specify:
1. the names and last known mailing addresses (if any) of the Participant and each alternate
payee covered by the order;
2. the amount or percentage of the Participant’s benefit to be paid to each alternate payee, or
the manner in which the amount or percentage is to be determined;
3. the number of payments or period to which the order applies; and
4. each plan to which the order applies.
The order cannot require the Plan:
1. to provide any type or form of benefit, or any option, not otherwise provided under the
Plan; or
2. to provide increased benefits (determined on the basis of actuarial value); or
3. to pay benefits to an alternate payee which are required to be paid to another alternate
payee under another order previously determined to be qualified.
4. pay benefits to an alternate payee in the form of a qualified joint and survivor annuity for
the lives of the alternate payee and his or her subsequent Spouse.
Domestic Relations Orders must be approved by the Board of Trustees and should be sent to the
following address:
220 Campus Lane
Fairfield, California 94534
42
If you are considering obtaining a QDRO, your a�orney should review the
appropriate sections of the law and prepare a Domestic Relations Order
The Plan’s
to fit your particular situation. It will save time and expense if you first
written procedures for
submit your Domestic Relations Order to the Plan Administrator in
the handling of a Domestic
dra� form before it is signed by a Judge. The Plan Administrator will
Relations Order
review the Domestic Relations Order, advise
may be obtained
you of any changes that may be necessary
without charge from
and let you know in advance whether the
the Plan Administrator.
Board of Trustees will find the Domestic
Relations Order to be “qualified”.
43
Retirement, Prohibited Employment and
Section 9.07., page 116 and Sections 9.11., - 9.20., pages 117 - 124
Retirement
In order to receive monthly pension payments, you must be retired, and you must refrain from
any prohibited employment or self-employment as described below.
Prohibited Employment
1. Prohibited Employment Before Normal Retirement Age (Age
65)
To be considered retired and to remain retired before you reach
age 65, you must withdraw completely and refrain from:
a. any employment covered by a Collective Bargaining Agreement
with the Northern California District Council of Laborers or an affiliated local union;
or
b. any employment for the Northern California District Council of Laborers or an affiliated
local union; or
c. any employment or self-employment for wages or profit in the Building and Construction
Industry or in the Rock, Sand and Gravel Industry in the geographical jurisdiction of
the Plan or a Related Plan with which the Trust Fund has a reciprocal agreement.
2. Prohibited Employment A�er Normal Retirement Age and Before Required Beginning
Date
To be considered retired and to remain retired a�er you reach age 65 and before your
Required Beginning Date (see below), you must refrain from employment or selfemployment for wages or profit of 40 hours or more during a calendar month:
a. in an industry in which employees were employed and accrued benefits under the Plan
as a result of their employment at the time your pension commenced (or would have
commenced had you not continued working); and
b. in a trade or cra� in which you were employed at any time under the Plan; and
c. in the State of California.
44
You may engage in certain types of employment or self-employment, including work for the
Northern California District Council of Laborers or one of its affiliated local unions in the form
of casual services as a part-time paid official and still be considered retired. You may also return
to work and still be considered retired if you comply with all terms, conditions and provisions of
any Retiree Work Addendum which may exist under a Collective Bargaining Agreement. (Refer
to Section 9.13, page 121 for a list of positions the Pension Plan “exempts” from the suspension of
benefits provisions.)
REQUEST FOR STATUS DETERMINATION
If you are considering employment a�er retirement, you should always request from
the Board a wri�en determination as to whether the employment you are considering is
“prohibited” by the Plan as described on page 44. Refer to Section 9.12.d.(5), page 119.
Once you a�ain your Required Beginning Date, which occurs the April 1st following the calendar
year in which you become age 70½, you can engage in any type of employment, anywhere, and
still be considered retired.
Suspension of Benefits
If you are employed or self-employed in work described under “Before Normal Retirement Age
(Age 65),” your pension payments will be suspended and permanently withheld for a period
equal to the number of months you were employed or self-employed. In addition, your pension
payments will be suspended for the 3-month period immediately following that period, unless
you were receiving a disability pension prior to that employment.
If you are employed or self-employed in work described under “A�er Normal Retirement Age
and Before the Required Beginning Date,” your pension payments will be suspended and
permanently withheld for each calendar month in which you were employed or self employed.
A�er you a�ain your Required Beginning Date, your pension payments will not be suspended,
regardless of whether you are working or not.
Notice
Within 15 days a�er starting any employment described under either “Before Normal Retirement
Age (Age 65)” or “A�er Normal Retirement Age and Before the Required Beginning Date,” you
must notify the Plan of the employment, in writing, sent by first class mail, addressed to the Plan
at the following address:
Laborers Pension Trust Fund for Northern California
220 Campus Lane
Fairfield, CA 94534-1498
Wri�en notice must be given regardless of the number of hours of work. You must also notify
the Plan, in writing, at the above address when your prohibited employment has ended. The
suspension of your pension payments may continue until the notice is filed with the Plan. If you
fail to comply with these notice requirements, the Board may act on the Presumptions, described
in Section 9.12.d.(3), page 119, and may take any other action as provided in the Plan.
45
Presumptions
The Plan contains the following presumptions concerning a Pensioner’s work in prohibited
employment:
Whenever the Board becomes aware that you are working or have worked in prohibited employment
in any month a�er Normal Retirement Age (age 65), and have failed to give timely notice to the
Plan of your employment, the Board may, unless it is unreasonable under the circumstances to do
so, act on the basis of a rebu�able presumption that you worked at least 40 hours in that month
and any subsequent month before you give notice in writing to the Board that you have ceased
prohibited employment. You may overcome this presumption by establishing that your work was
not an appropriate basis for the suspension of your benefits.
Whenever the Board becomes aware that you are working or have worked in prohibited
employment for any number of hours for an employer at a construction site and you have failed
to give timely notice to the Plan of your employment, the Board may, unless it is unreasonable
under the circumstances to do so, act on the basis of a rebu�able presumption that you engaged
in employment with that same employer in work at that site for as long as that employer has
performed work at that construction site. You may overcome this presumption by establishing
that your work was not an appropriate basis for the suspension of your benefits.
The effect of these presumptions is that the Board may implement the suspension of benefit rules
without verifying that you exceeded the number of hours for the period involved. Of course, you
have the opportunity to appear before an Appeal’s Commi�ee to show that you did not work 40
hours or more in prohibited employment.
Verification
As a condition to receiving future benefit payments, you may be required to submit evidence
verifying that you are unemployed or that any employment in which you are engaged is not
prohibited by the Plan.
Claims Review Procedure
You may request a review of a suspension of your pension payments as described in “Suspension
of Benefits” or a review of prospective employment as described in “Status Determination” on
page 45.
Additional Benefits After Return to Covered Employment
If you return to work in Covered Employment, you will receive additional pension benefits
when you retire again, based on the additional benefits you earned. The amount of additional
pension benefits will be determined in accordance with Section 9.07 of the Pension Plan Rules and
Regulations on page 116.
46
Recovery of Overpayments
Overpayments of benefits made for any month or months during which you engaged in prohibited
employment will be deducted from benefits otherwise payable subsequent to the period of
suspension. In the case of a Pensioner who is over age 65, the deduction will be 100% of the initial
resumption payment or the full suspendable amount, whichever is less; therea�er, the deduction
will not exceed 25% of that month’s total benefit payment which would have been due but for the
deduction.
If you die before the Plan has recouped the amount, deductions will be made from any benefits
payable to your surviving Spouse or Beneficiary subject to, in the case of Pensioners over 65, a 25%
limit on the rate of deductions on any benefit payments a�er the first payment.
47
Application for Benefits and
Annuity Starting Dates
Sections 9.01, 9.05, 9.08, and 9.11, pages 109-114 and 116-118
Application for a Pension
The first step is to request a pension application from the Trust
Fund Office or your Local Union Office. Complete, sign, date and
mail your application to the Trust Fund Office before the month
you want your pension to start. Along with your application, you
should send proof of your birth date, your Spouse’s birth date and
your marriage certificate. If you do not have proof of age for you
or your Spouse or a marriage certificate at the time you are ready
to mail the completed and signed pension application to the Trust
Fund Office, do not delay sending the application. You can mail the
proof of age and marital status later.
If you are otherwise eligible for a pension, it becomes effective on the first day of the month a�er a
completed pension application is filed, or on the first day of the first month a�er you have stopped
working and have retired, whichever is the later date. For example, if you want your pension to be
effective on July 1, your application must be received at the Trust Fund Office by June 30 and you
must have stopped working as of that date.
Processing time for pension applications is approximately three months from the later of the month
you last worked or filed your completed pension application, whichever is later. Mailing your
application earlier than the last month you work will not eliminate the three-month processing
time. The Trust Fund Office must wait for your Employer to pay your last month of work hours
before the processing of your application can begin. Work hours for any given month are due and
payable from the Contributing Employer by the 15th day of the following month; they are late
if not received in the Trust Fund Office by the 25th day of the month following the work month.
There may be several weeks between your last work-month and the time the Trust Fund actually
receives a report from your Employer indicating the number of hours you worked.
Application for a Disability Pension
If you are applying for a Disability Pension, you should indicate on your application whether you
have applied for a Social Security Disability benefit. If you are awarded a Social Security Disability
benefit (or its equivalent), you must submit proof of entitlement to the Trust Fund Office. You
should submit a copy of the Social Security Notice of Award (or its equivalent) to the Trust Fund
Office so that it is received within 60 days a�er you receive it so your Disability Pension may begin
as soon as possible. In the absence of a Social Security Disability benefit, or its equivalent, you must
submit a doctor’s statement on a form approved by the Board as well as medical records that relate
to the disability that demonstrate you are unable to perform work as a laborer in the Building and
Construction Industry. You must also submit to an independent medical examination made by a
doctor selected by the Board of Trustees. Along with your application, you must also send proof
of your birth date, your Spouse’s birth date and your marriage certificate.
48
Disability Pension payments may begin with the 7th calendar month of disability, if you file an
application before that date, or file your notice of entitlement to a Social Security Disability benefit
or its equivalent no later than 60 days from the date of the notice. Otherwise, payments will not
begin until the first of the month a�er you file the notice of entitlement or the Disability Pension
application with the Trust Fund Office.
Delayed Retirement (Older Than Age 65)
If you are eligible for a Regular Pension and retire a�er your Normal Retirement Age, you will
receive pension payments in the form of a retroactive single sum or actuarially increased benefit
for each complete calendar month between Normal Retirement Age (in most cases, age 65) and
your Annuity Starting Date as long as you did not work in prohibited employment for 40 hours
or more in any month between your Normal Retirement Age and your Required Beginning Date
(Section 1.30, page 71). These pension payments will be made in accordance with Section 9.08,
page 116 of the Pension Plan Rules and Regulations.
You may delay receiving benefits, provided the election does not postpone the payment of
benefits beyond April 1 following the calendar year in which you reach the age 70 ½, the Required
Beginning Date. The election to delay receiving benefits must be made in writing and filed with
the Board of Trustees.
Effective Dates of Additional Benefits
If you begin receiving a pension and subsequently you submit evidence entitling you to additional
accrued benefits, any increase in your pension will become effective:
1. back to the effective date of your pension, if evidence was submi�ed within one year a�er
the first pension payment was made to you; or
2. the first of the month following the date evidence of additional accrued benefits is submi�ed,
if more than one year had passed since your first pension payment was made.
If you were previously denied a pension, and you submit evidence of entitlement to additional Credited
Service and/or Benefit Units which qualifies you for a pension, your pension will become effective:
1. back to the date determined by your first application for a pension, if evidence of additional
Credited Service and/or Benefit Units was submi�ed within one year a�er you were denied
a pension; or
2. on the first of the month following submission of new evidence, if it was filed more than
one year a�er you were denied a pension.
Application for Surviving Spouse Pension or Pre-Retirement Death Benefit
Your surviving Spouse or children must file an application with the Trust Fund Office for death
benefits on a form provided by the Board. An application should be obtained from the Trust Fund
Office or Local Union Office immediately following your death so that payment may begin as
soon as possible.
49
Claims and Appeals Procedures
Article 9., page 111
Filing A Claim
Your application for benefits must be made in writing on a form provided by the Board of Trustees
and must be filed with the Trust Fund Office before you can receive any benefits.
Your claim will be considered filed when the Trust Fund Office receives your application,
regardless of whether all the information necessary to make a benefit determination accompanies
your application. If all necessary information does not accompany your
application, the Trust Fund Office will notify you, in writing, of:
1. The standards on which entitlement to benefits is based;
2. The unresolved issues that prevent a decision on your claim; and
3. The additional information needed to resolve those issues.
Once your claim has been filed, the Trust Fund Office will make the initial
determination of benefits within the time periods described below.
Determining Initial Claim - For All Pensions (Including Disability Pensions Based on
Entitlement to a Social Security Disability Benefit)
The initial determination of benefits will be made within a reasonable period of time, but not
longer than 90 calendar days a�er the Trust Fund Office receives your application for benefits and
all required information.
If the Trust Fund Office determines that special circumstances require an extension of time for
processing your claim, the Trust Fund Office will notify you, in writing, prior to the expiration of
the 90 days of the circumstances requiring the extension of time and the date by which the Plan
expects to make a determination. The extension cannot be more than 90 calendar days from the
end of the initial 90 day period.
Determining Initial Claim - For Disability Pension and Benefits Based on Medical Evidence
Section 9.04.b (2)., page 111
In the absence of a Social Security Disability Benefit, the Pension Plan provides a Disability Pension
based on medical evidence (Section 3.08, page 79). In addition, the Plan grants grace periods (Section
6.06.a.(1), page 96) for absences from Covered Employment due to a disability. In both cases, the Board
of Trustees makes a determination of disability based on medical evidence as proof of the disability.
The initial determination of benefits will be made within a reasonable period of time, but not
longer than 45 calendar days a�er the Trust Fund Office receives your application for benefits
and all required information. If all required information is not received with your application, the
45 day period for making the initial determination is suspended during the time you obtain the
additional information.
50
The initial 45 day period may be extended for up to 30 calendar days, for a total of 75 calendar
days, if an extension of time is necessary due to ma�ers beyond the control of the Plan. The
Trust Fund Office will notify you, in writing, prior to the expiration of the initial 45 day period
of the circumstances requiring the extension of time and the date by which you can expect a
determination.
If a second extension of time is needed to make a determination due to circumstances beyond the
control of the Plan, you will be notified of an extension of up to 30 calendar days, or a maximum
of 105 calendar days a�er the initial receipt of your application. Before the end of the first 30
day extension, the Trust Fund Office will notify you, in writing, of the circumstances requiring a
second extension and the new date by which you can expect a determination.
If your application for benefits is not acted on within these time periods, you may proceed to the
appeal procedures as though the claim had been denied. (See section entitled “Right to Appeal”
Section 9.04.d., page 112)
Notice of Claim Denial
If the Plan denies your application for benefits, in whole or in part, you will be notified in writing
of the determination and be given the opportunity for a full and fair review of the benefit decision.
The wri�en notice of denial will include:
1. All specific reasons for the denial;
2. All specific references to pertinent Plan provision(s) on which the denial is based;
3. A description of any additional material or information necessary to complete your claim
and an explanation of why that material or information is necessary;
4. A description of the Plan’s review procedures and the time limits that apply to those
procedures, including a statement of your rights to bring civil action under §502(a) of
ERISA following an adverse determination on review; and
5. Any internal rule, guideline, protocol or other similar criterion that was relied upon in
making the adverse determination regarding your claim for disability benefits under
Section 3.08., page 79 or Section 6.06.a.(1), page 96 of the Plan. The Trust Fund Office will
provide you with a statement, indicating the rule, guideline, protocol or other similar
criterion that was relied upon in making the determination and will provide you with a
copy of that document, free of charge, if you request it.
51
Right to Appeal
If you apply for benefits and your claim is denied, or if you believe that you did not receive the
full amount of benefits to which you may be entitled, you have the right to petition the Board of
Trustees to reconsider its decision. Your petition for reconsideration:
1. Must be in writing; and
2. Must state in clear and concise terms the reason(s) for your
disagreement with the decision of the Board of Trustees;
and
3. May include documents, records, and other information
related to the claim for benefits; and
4. Must be filed by you or your authorized representative with the Trust Fund Office within
60 days a�er you receive the notice of denial. In the case of a claim for disability benefits
based on medical evidence under Section 3.08., page 79 or Section 6.06.a.(1), page 96 of
the Plan, your petition for reconsideration must be filed with the Trust Fund Office within
180 days a�er you receive the notice of denial. Failure to file an appeal within these time
limits will constitute a waiver of your rights to a review of the denial of your claim. A late
application may be considered if the Board of Trustees finds that the delay in filing was for
reasonable causes.
Upon request, you will be provided, free of charge, reasonable access to and copies of all documents,
records, and other information relevant to your claim for benefits; including, in the case of a claim
for disability benefits under Section 3.08., page 79 or Subsection 6.06a.(1), page 96 of the Plan,
any statement of policy or guidance with respect to the Plan concerning the denial of disability
benefits, without regard to whether this advice or statement was relied upon in making the benefit
determination.
Review of Appeal
Section 9.04.e., page 113
A properly filed appeal will be reviewed by the Board of Trustees (or by a commi�ee authorized to
act on behalf of the Board of Trustees) at its next regularly scheduled quarterly meeting. However,
if the appeal is received within 30 days prior to that meeting, the appeal may be reviewed at the
second quarterly meeting following receipt of your appeal. If special circumstances require an
extension of time, the Board of Trustees will make its decision at the third scheduled quarterly
meeting following the receipt of your appeal. The Trust Fund Office will notify you, in writing,
before the beginning of the extension of the special circumstances and the date that the Board of
Trustees will make its decision.
52
The Board of Trustees will review all submi�ed comments, documents, records and other
information related to your claim, regardless of whether the information was submi�ed or
considered in the initial benefit determination. The Board of Trustees will not give deference to
the initial adverse benefit determination. In the event that the required information is not received
with your appeal, the time period for reviewing your appeal will be suspended during the time
you are obtaining the required information.
In deciding an appeal that is based in whole or in part on a medical judgment, the Board of Trustees
will consult with a health care professional with appropriate training and experience in the field
of medicine involved in the medical judgment. This health care professional will not be the same
individual who was consulted in connection with the initial adverse benefit determination, nor
will it be a subordinate of that individual.
You will receive wri�en notification of the benefit determination on an appeal no later than 5
calendar days a�er the benefit determination is made.
In the case of an adverse benefit determination on appeal, the wri�en denial will include the
reason(s) for the determination, including references to specific Plan provisions on which the
determination is based. The wri�en denial will also include a statement that you are entitled to
receive, upon request and free of charge, reasonable access to and copies of all documents, records
and other information relevant to your claim for benefits. The wri�en notification of an adverse
benefit determination in regard to disability benefits will also include the specific rule, guideline,
protocol or other similar criterion relied upon in making the adverse determination.
The denial of a claim to which the right to review has been waived (that is, you have failed to
file a wri�en request within the required time limit), or the decision of the Board or the Board’s
designated Appeals Commi�ee with respect to a petition for review, is final and binding upon
all parties, subject only to any civil action you may bring under ERISA. Following issuance of the
wri�en decision of the Board of Trustees on an appeal, there is no further right of appeal to the
Board of Trustees or right to arbitration.
You may, however, re-establish your entitlement to benefits at a later date based on any additional
information and evidence not previously available to you at the time of the decision of the Board
of Trustees.
53
Questions and Answers About Your Plan
Who Administers the Plan?
A Board of Trustees, consisting of an equal number of Employee and Employer representatives,
in accordance with the law.
Who is Covered by the Plan?
Only Employees of Contributing Employers who work under the Collective Bargaining Agreement
with the Northern California District Council of Laborers or one of its local unions or who perform
work for the District Council, a local union, or the Laborers Training and Retraining Trust Fund
for which Contributions are made to the Trust Fund. The Plan does not cover any owner-operator,
partner, independent contractor or self-employed person.
Do Pensions Provided by this Plan Affect Social Security Benefits in Any Way?
No. The benefits payable under this Plan are in addition to benefits paid under Social Security.
Can Pension Benefits Be Assigned?
No, except to the extent provided in a Qualified Domestic Relations Order.
Are There Any Deductions From the Pension Benefits?
Federal and state income tax withholding may be deducted as described on page 38. In addition,
if optional health and welfare coverage is elected, the appropriate premium is deducted from
monthly pension benefits.
If Benefits Are Denied, Can the Applicant Appeal the Decision?
Yes. Any applicant who is denied a benefit has the right to appeal to the Board of Trustees within
60 days a�er he receives notice of the denial or within 180 days if he is applying for a Disability
Pension. The rules for filing an appeal are described in Claims and Appeals Procedures on page
52.
Are Plan Documents Available to Participants and Beneficiaries?
Yes. Copies of the Trust Agreement, Plan Rules and Regulations, Plan Amendments, the Summary
Plan Description, statements of assets and liabilities and income and expenses of the Plan, and
a summary of the annual report are available at the Trust Fund Office during regular business
hours and, upon wri�en request, will be furnished by mail. In addition, copies of the Collective
Bargaining Agreements and a full annual report (Form 5500) are available for inspection at the
Trust Fund Office during regular business hours and, upon wri�en request, will be furnished
by mail a�er payment of reasonable charges. You should ask what those charges will be before
writing and requesting copies of these documents.
54
Information Required By the Employee Retirement
Income Security Act of 1974
1. The Plan is administered and maintained by a Joint Board of Trustees at the following
address:
Board of Trustees
220 Campus Lane
Fairfield, California 94534-1498
(707) 864-2800. (800) 244-4530
(toll free Northern California only)
The above is the name, address and telephone number of the Plan Administrator.
2. The Trust Fund Office will provide any Plan Participant or Beneficiary, upon wri�en request,
information as to whether a particular employer is contributing to this Fund with respect to
the work of Participants in the Trust Fund and if the employer is a contributor, the employer’s
address.
3. The Employer Identification Number (EIN) issued to the Board of Trustees by the Internal
Revenue Service is 94-6277608. The Plan Number is 001.
4. The Plan is a defined benefit plan.
5. The person designated as agent for the service of legal process is:
The service of legal process may also be made upon a Plan Trustee or the Plan Administrator.
Mr. Edward J. Smith, Fund Manager
220 Campus Lane
Fairfield, California 94534-1498
55
6. The names, titles and business addresses of the Trustees as of the printing of this booklet are:
Employer Trustees
Employee Trustees
Mr. Byron C. Loney, Chairman
Teichert Construction
P.O. Box 15002
Sacramento, CA 95851-1002
Mr. Oscar De La Torre, Co-Chairman
Northern California District
Council of Laborers
4780 Chabot Drive, Suite 200
Pleasanton, CA 94588-3322
Mr. Larry To�en
Johnson Western Gunite Company
940 Dooli�le Drive
San Leandro, CA 94577-1021
Mr. Doyle Radford
Laborers Local Union No. 185
1320 West National Drive
Sacramento, CA 95834-1908
Mr. Terence Street
Roebbelen Contracting, Inc.
1241 Hawks Flight Court
El Dorado, CA 95762-9648
Mr. David Gorgas
P. O. Box 3448
Modesto, CA 95353-3448
Ms. Claire Koenig
McNely Construction Company
1040 Davis Street, Suite 203
San Leandro, CA 94577-1074
Mr. James Homer
509 Emory Street
San Jose, CA 95110
Mr. Robert Chrisp
Chrisp Company
43650 Osgood Road
Fremont, CA 94539-5631
Mr. Bruce Rust
5431 East Hedges Avenue
Fresno, CA 93727-2278
7. This program is maintained pursuant to various Collective Bargaining Agreements. Copies of
Collective Bargaining Agreements are available for inspection at the Trust Fund Office during
regular business hours and upon wri�en request will be furnished by mail. A copy of any
collective bargaining agreement which provides for Contributions to this Fund will also be
available for inspection within 10 calendar days a�er a wri�en request is received at any of
the local union offices or at the office of any Contributing Employer to which at least 50 Plan
Participants report each day.
8. The Plan’s requirements with respect to eligibility for participation and benefits are shown in
Articles 2, 3, 4, 5, and 6 of the Pension Plan Rules and Regulations.
9. The Normal Retirement Age is age 65 or, if later, the age of the Participant a�er the fi�h
anniversary of his participation. (Participation that takes place before a Permanent Break in
Service is not counted.)
10. The provisions of the Husband-and-Wife Pension which provide a lifetime pension for a
surviving Spouse are set forth in Article 7 of the Pension Plan Rules and Regulations.
56
11. Description of circumstances which may result in disqualification, ineligibility, denial,
suspension or loss of benefits.
a. A Participant incurred a Permanent Break in Service and his previously accumulated
Credited Service, Benefit Units and accrued benefits, as well as participation canceled
if, a�er August 1, 1962 and before August 1, 1975, he did not earn one quarter of
Credited Service in any period of 2 consecutive Plan Credit Years. Certain Grace Periods
were available to extend this time requirement provided an application is filed by the
Participant.
A�er July 31, 1975 and before August 1, 1985, a Participant incurs a Permanent Break in
Service if the number of consecutive Plan Credit Years (when they exceed 2) in which he
failed to complete 435 hours in Covered Employment equals or exceeds the number of
full years of Credited Service which he had previously accumulated.
A�er July 31, 1985, a Participant will incur a Permanent Break in Service if the number of
consecutive Plan Credit Years (when they exceed 5) in which he fails to complete 435 hours in
Covered Employment equals or exceeds the number of full years of Credited Service which
he has previously accumulated. Refer to Section 6.06, page 95 for complete description.
b. A Separation from Covered Employment results in limiting the monthly amount payable
for accrued benefits earned prior to the Separation to the amount payable by the Plan at
the end of the Separation period.
A Participant incurred a Separation from Covered Employment prior to August 1, 1975,
if he failed to earn one quarter of Credited Future Service in any period of 2 consecutive
Plan Credit Years. A�er August 1, 1975, a Participant incurs a Separation from Covered
Employment at the end of any 2 consecutive Plan Credit Year periods in which he does
not work at least 435 hours in Covered Employment in at least one of the 2 Plan Credit
Years. Refer to Section 6.07, page 98 for complete description.
c. If a Pensioner, receiving a Disability Pension is under age 65 loses entitlement to his Social
Security Disability benefit (or its equivalent) or if he was awarded a Disability Pension in
the absence of a Social Security benefit (or its equivalent) and recovers from his disability,
he must inform the Board of Trustees in writing within 15 days from the date he receives
notice of the loss from the Social Security Administration (or its equivalent) or recovers
from his disability. If he fails to provide this notice, he will, upon subsequent retirement
prior to Normal Retirement Age, be disqualified for benefits for up to 12 months following
the date of his retirement, plus any additional months during which he received Disability
Pension payments to which he was not entitled. Refer to Section 3.12 , page 80 for complete
description.
d. If a Pensioner works in employment prohibited by the Plan, he must inform the Board
of Trustees in writing within 15 days a�er he starts work. His pension payments will
be suspended and permanently withheld for the periods employed and under the other
conditions specified in the Plan.
57
If a Pensioner who is under 65 fails to provide the required notice, his pension payments
will be suspended and permanently withheld for an additional period of up to 3 months.
Refer to Section 9.12, page 118 for complete description.
e. A Pensioner is not eligible to receive a pension until the first day of the month following
the date on which he filed an application for a pension, except as described in Article 9,
Section 9.05, page 114.
f. To be eligible for benefits under the Plan, Participants must meet the eligibility requirements
specified in the Plan. Refer to Articles 3, 4, 5, 7 and 8 for a complete description.
g. Pension payments may be suspended for failure to comply with a request from the Trust
Fund for information promptly, completely and in good faith. Refer to Section 9.02, page
110 for a complete description.
h. Any overpayments of benefits may be offset, recouped and recovered from payments due or
becoming due to a Pensioner, his Beneficiary, or surviving Spouse in installments and to the
extent as the Board determines. Refer to Section 9.19., page 124 for a complete description.
12. The Board of Trustees intends to continue this Plan indefinitely. If, for any reason, the Plan
should be terminated, you will have a 100% vested interest in your normal retirement benefit
to the extent benefits are funded by the assets in the Plan at the time of Plan termination.
Your pension benefits under this multiemployer plan are insured by the Pension Benefit
Guaranty Corporation (PBGC), a Federal Insurance Agency. A multiemployer plan is a
collectively bargained pension arrangement involving two or more unrelated employers,
usually in a common industry.
Under the multiemployer plan program, the PBGC provides financial assistance through loans
to plans that are insolvent. A multiemployer plan is considered insolvent if the plan is unable
to pay benefits (at least equal to the PBGC’s guaranteed benefit limit) when due.
The maximum benefit that the PBGC guarantees is set by law. Under the multiemployer
program, the PBGC guarantee equals a Participant’s years of service multiplied by (1) 100% of
the first $11.00 of the monthly benefit accrual rate and (2) 75% of the next $33.00. The PBGC’s
maximum guarantee limit is $35.75 per month times a Participant’s years of service. For example,
the maximum annual guarantee for a retiree with 30 years of service would be $12,870.00.
The PBGC guarantee generally covers: (1) Normal and Early Retirement benefits; (2) disability
benefits if you become disabled before the Plan becomes insolvent; and (3) certain benefits for
your survivors.
The PBGC guarantee generally does not cover: (1) benefits greater than the maximum
guaranteed amount set by law; (2) benefit increases and new benefits based on Plan provisions
that have been in place for fewer than 5 years at the earlier of: (i) the date the Plan terminates;
or (ii) the time the Plan becomes insolvent; (3) benefits that are not vested because you have
58
not worked long enough; (4) benefits for which you have not met all of the requirements at the
time the Plan becomes insolvent; and (5) non-Pension benefits, such as health insurance, life
insurance, certain death benefits, vacation pay and severance pay.
Even if certain of your benefits are not guaranteed, you still may receive some of those benefits
from the PBGC depending on how much money your Plan has and on how much the PBGC
collects from employers.
For more information about the PBGC and the benefits it guarantees, ask your Plan
Administrator or contact the PBGC’s Technical Assistance Division, 1200 K Street N.W., Suite
930, Washington, D.C. 20005-4026 or call 202-326-4000 (not a toll-free number). TTY/TDD users
may call the federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202326-4000. Additional information about the PBGC’s pension program is available through the
PBGC’s website on the Internet at h�p://www.pbgc.gov.
13. The Plan provisions for determining years of service, eligibility to participate, vesting, breaks
in service and benefit accrual are explained in Articles 2, 3, 5 and 6 of the Pension Plan Rules
and Regulations.
14. Source of financing of the plan and identity of any organization through which benefits are
provided: Benefits are provided directly from the Trust Fund’s assets which are accumulated
under the provisions of the Trust Agreement and held in custody by the Corporate Co-Trustee,
which currently is Union Bank of California.
15. The Board of Trustees may terminate the Plan pursuant to its authority under Section 11.04.,
page 129 of the Pension Plan Rules and Regulations. Upon termination, no further benefits can
be earned by Participants, but all benefits earned to the date of termination will be vested to
the extent funded. In no event will the termination of the Plan or Trust result in a reversion of
any assets to any Contributing Employer.
All contributions to the Plan are made by Contributing Employers in accordance with
Collective Bargaining Agreements in force with the Northern California District Council of
Laborers or any of its affiliated local unions or by the District Council, an affiliated local union
or the Laborers Training and Retraining Trust Fund with respect to certain of their employees
pursuant to Board regulations.
Collective Bargaining Agreements require Contributions to the Trust Fund at fixed rates per hour.
The Plan Trust Agreement provides that Contributing Employers are not required to make
any further payments or Contributions to the cost of operation of the Trust Fund or the Plan,
except as may be provided in the Collective Bargaining Agreement, Subscriber’s Agreement
and the Trust Agreement.
16. The date of the end of the Plan’s Fiscal Year is May 31.
17. The procedure for applying for a pension and establishing an Annuity Staring Date is described
on page 48.
59
A decision will be made by the Board of Trustees within 90 days a�er receipt of the petition,
unless special circumstances exist which require an extension of time for processing. In that
case, the decision will be made available as soon as possible, but not later than 180 days
a�er the request for the review of the denial. If the claim is for disability benefits where the
determination of disability is made by the Board of Trustees, the initial determination is made
no later than 45 days. The initial 45 day period may be extended 30 days, for a total of 75 days
if required due to ma�ers beyond the control of the Plan. A second 30 day extension may be
needed due to circumstances beyond the control of the Plan, or a maximum of 105 days.
This procedure must be followed by anyone who believes he was improperly denied a
benefit.
If you want to appeal a denial of a claim, in whole or in part, file
a written petition for a review within 60 days after you receive notice of the denial
of the claim, or 180 days if the claim for disability benefits is based on medical evidence.
If the petition is not filed within the required 60-day period, the right to review of the denial
is waived, provided that the Board may relieve a claimant from any waiver
for good cause if application for relief is made within a one year.
60
Statement of Rights Under the
Employee Retirement Income Security Act of 1974
As a Participant in the Laborers Pension Trust Fund for Northern California, you are entitled
to certain rights and protections under the Employee Retirement Income Security Act of 1974
(ERISA). ERISA provides that all Plan Participants are entitled to the following rights:
Receive Information About Your Plan and Benefits
■ Examine, without charge, at the Plan Administrator’s office and at other specified locations,
such as work sites and union halls, all Plan documents governing the Plan. These documents
include insurance contracts and Collective Bargaining Agreements and a copy of the latest
annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and
available at the Public Disclosure Room of the Employee Benefits Security Administration
(formerly the Pension and Welfare Benefits Administration).
■ Obtain, upon wri�en request to the Plan Administrator, copies of documents governing
the operation of the Plan. These include insurance contracts and Collective Bargaining
Agreements and copies of the latest annual report (Form 5500 Series) and updated Summary
Plan Description. The Plan Administrator may make a reasonable charge for the copies.
■ Receive a summary of the Plan’s annual financial report. The Plan Administrator is required
by law to furnish each participant with a copy of this summary annual report.
Prudent Actions by Plan Fiduciaries
In addition to creating rights for Plan Participants, ERISA imposes duties upon the people who
are responsible for the operation of the Employee Benefit Plan. The people who operate your
Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and
other Plan Participants and Beneficiaries. No one, including your Employer, your Union, or any
other person, may fire you or otherwise discriminate against you in any way to prevent you from
obtaining a pension benefit or exercising your rights under ERISA.
Enforce Your Rights
If your claim for your Pension is denied, in whole or in part, you have a right to know why this
was done, to obtain copies of documents relating to the decision without charge, and to appeal
any denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a
copy of Plan documents or the latest annual report from the Plan and do not receive them within 30
days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator
to provide the materials and pay you up to $110 a day until you receive the materials, unless the
materials were not sent because of reasons beyond the control of the Plan Administrator.
If you have a claim for benefits, which is denied or ignored, in whole or in part, you may file suit
in a state or federal court, once you have exhausted the appeals process described in “Claims
61
and Appeals Procedures” in this booklet. In addition, if you disagree with the Plan’s decision
or lack thereof concerning the qualified status of a Domestic Relations Order, you may file suit
in federal court. If it should happen that Plan fiduciaries mis-use the Plan’s money, or if you are
discriminated against for asserting your rights, you may seek assistance from the U.S. Department
of Labor, or you may file suit in a federal court. The court will decide who should pay court costs
and legal fees. If you are successful, the court may order the person you have sued to pay these
costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it
finds your claim is frivolous.
Assistance with Your Questions
If you have questions about your Plan, you should contact the Plan Administrator. If you have
questions about this statement or about your rights under ERISA, or if you need assistance in
obtaining documents from the Plan Administrator, you should contact the nearest office of the
Employee Benefits Security Administration (EBSA) , U.S. Department of Labor, listed in your
telephone directory. Alternatively, you may obtain assistance by calling EBSA toll-free at 1-866444-EBSA (3272) or writing to the following address:
Division of Technical Assistance and Inquiries
Employee Benefits Security Administration
U.S. Department of Labor
200 Constitution Avenue N.W.
Washington, D.C. 20210
You may obtain certain publications about your rights and responsibilities under ERISA by calling
the publications hot line of EBSA. For copies of publications, contact the EBSA brochure request
line at 1-800-998-7542 or contact the EBSA field office nearest you.
You may also find answers to your plan questions and a list of EBSA field offices at the Web site of
EBSA at www.dol.gov/ebsa.
62
Pension Plan
Rules and Regulations
Amended and Restated as of June 1, 2001
63
Pension Plan - Rules and Regulations
Amended and Restated as of June 1, 2001
(Including Subsequent Amendments 1 through 18)
This document presents the Rules and Regulations of the Pension Plan, as amended effective June
1, 2001 and constitutes an amendment, restatement and continuation of the Plan. This revised
Pension Plan is intended to comply with the Employee Retirement Income Security Act of 1974 and
with the requirements for tax qualification under the Internal Revenue Code and all regulations
and is to be interpreted and applied consistent with that intent.
This revised Pension Plan replaces the prior Plan and applies only to pensions or other benefits
that commence on and a�er June 1, 2001. Unless otherwise indicated, pensions or benefits that
commenced prior to June 1, 2001, as well as deferred vested benefits of former employees who had
a Separation from Covered Employment prior to June 1, 2001, are to be determined based on the
Pension Plan rules in effect on the date of Separation.
64
ARTICLE I
DEFINITIONS
Unless the context or subject ma�er requires otherwise, the following definitions will govern in
the Plan:
Section 1.01. “Actuarial Present Value,” unless otherwise specified in the Plan, means:
a. For determinations of any Annuity Starting Date that is on or a�er June 1, 2000, a benefit
that has the same actuarial value as another benefit based on the “Applicable Mortality
Table” and the “Applicable Interest Rate”. For this purpose:
(1) the “Applicable Mortality Table” for a year is the table prescribed for use in that year in
Regulations under Code §417(e), and which until modified or superseded, is the table set
forth in Revenue Ruling 95-6; and
(2) the “Applicable Interest Rate” is, for a year, the annual rate of interest on 30-year
Treasury securities as specified by the commissioner of Internal Revenue for the March
(as published in the succeeding April) immediately preceding the calendar year that
contains the Annuity Starting Date.
b. For Annuity Starting Dates in years before June 1, 2000, a benefit of equal actuarial value is
determined by using the interest rate prescribed by the Pension Benefit Guaranty Corporation
(PBGC) for valuing annuities under single-employer plans that terminate November 30,
1980 without Notice of Sufficiency during the first day of the calendar year in which the
benefit is valued. The mortality assumption will be as follows:
(1) For payment where the Participant is not disabled as defined in Section 3.08, the 1971
Group Annuity Mortality Table, weighted as follows:
(a) for a Participant’s benefit, 100% male and 0% female;
(b) for the benefit of a Participant’s Spouse (or former Spouse), 0% male and 100% female;
and
(c) in any other case, 50% male and 50% female.
(2) For payment where the Participant is disabled as defined in Section 3.08, the PBGC
Mortality Tables for Disabled Lives Eligible for Social Security Disability Benefits
weighted according to Subsection a. above.
Notwithstanding the foregoing, the lump sum Actuarial Present Value of any benefit
payable under the Plan will not be less than the amount produced using the Mortality
Tables in b.(1) or b.(2) above, based on a 7% interest assumption.
Section 1.02. “Actuarial Equivalence” means benefits of equal Actuarial Present Value based on
the actuarial factors and assumptions specified in the provision in which that term is used or, if
not otherwise specified, based on the assumptions described in Section 1.01.
65
Section 1.03. “Annuity Starting Date”
a. “Annuity Starting Date” means the date benefits are calculated and paid under the Plan and
is the first day of the month a�er or coincident with the later of:
(1) the month following the month in which the claimant has fulfilled all of the conditions
for entitlement to benefits, including the filing of a completed application for benefits;
or
(2) 30 days a�er the Plan advises the Participant of the available benefit payment options.
b. Notwithstanding Subsection a. above, the Annuity Starting Date may occur and benefits
may begin before the end of the 30 day period, provided:
(1) the Participant and Spouse, if any, consent in writing to the commencement of payments
before the end of the 30 day period and distribution of the pension begins more than 7
days a�er the wri�en explanation was provided to the Participant and Spouse,
(2) the Participant’s benefit was previously being paid because of an election a�er the Normal
Retirement Age; or
(3) the benefit is being paid automatically as a lump sum under Section 9.09 of the Plan.
c. Notwithstanding Subsection a. above, a Participant who has a�ained Normal Retirement
Age and consented to waive the 30 day period in accordance with Subsection b.(1) above,
may elect an Annuity Starting Date that is retroactive to the first day of any month following
the date he had both a�ained Normal Retirement Age and fulfilled all of the conditions for
entitlement to benefits, except the filing of an application.
d. The Annuity Starting Date cannot be later than the Participant’s Required Beginning Date.
e. The Annuity Starting Date for a Beneficiary or alternate payee under a Qualified Domestic
Relations Order (within the meaning of Section 206(d)(3) of ERISA and Section 414(p) of the
Internal Revenue Code) will be determined as stated in Subsections a. and b. above, except
that references to the Husband-and-Wife Pension and spousal consent do not apply.
f. A Participant who retires before his Normal Retirement Age and then earns additional benefit
accruals under the Plan through re-employment 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.
A Participant who retires on or a�er his Normal Retirement Age and then earns additional
benefit accruals under this Plan through re-employment will retain his original Annuity
Starting Date. Payment of any additional benefit accruals will be made in accordance with
Section 9.07.b.
Section 1.04. “Bargaining Unit” means a group of Employees for which the provisions of the
Collective Bargaining Agreement requiring Employer Contributions to this Fund are the same.
66
The Bargaining Unit applicable to each Employee is the Bargaining Unit in which the Employee
was employed when Contributions were first made on his behalf.
Section 1.05. “Beneficiary” means a person who is receiving benefits under this Plan because of
his designation for those benefits by a Pensioner or Participant.
Section 1.06. “Board of Trustees” or “Board” means the Board of Trustees established by the
Trust Agreement.
Section 1.07. “Building and Construction Industry” means all building construction and all
heavy, highway, and engineering construction including, but not limited to, the construction,
erection, alteration, repair, modification, demolition, addition or improvement in whole or in part
of any building, structure, street, highway, bridge, viaduct, railroad, tunnel, airport, water supply,
irrigation, flood control and drainage system, sewer and sanitation project, dam, power house,
refinery, aqueduct, canal, river and harbor project, wharf, dock, breakwater, je�y, quarrying of
breakwater or riprap stone, or any other operation incidental to that construction work.
Section 1.08. “Children” mean the Participant’s natural or adopted children.
Section 1.09. “Code” means the Internal Revenue Code of 1986, as amended, including any
regulations.
Section 1.10. “Collective Bargaining Agreement” means the Collective Bargaining Agreement
as defined in Section 1 of Article I of the Trust Agreement which provides for the making of
Employer Contributions to this Pension Fund.
Section 1.11. “Compensation”
a. For the purposes of identifying Highly Compensated Employees and establishing the
limitations under Section 415 of the Internal Revenue Code (for any calendar year a�er
December 31, 1997), a Participant’s annual Compensation means the total cash salary or
wages paid to the Participant during a Plan Year and reportable as earnings subject to
income tax on Form W-2. Compensation includes any elective deferral (as defined under
Code Section §402(g)(3)), and any amount that is contributed or deferred by the Employer
at the election of the Employee and which, by reason of Code Section §125 or §457, is not
includible in the gross income of the Employee. Effective June 1, 2001, Compensation also
includes amounts described in Code Section §132(f)(4).
b. Compensation does not include:
(1) Amounts realized from the exercise of a non-qualified stock option, or when restricted
stock (or property) held by the Employee either becomes freely transferable or is no
longer subject to a substantial risk of forfeiture;
(2) Amounts realized from the sale, exchange or other disposition of stock acquired under
a qualified stock option; and
(3) Other amounts which received special tax benefits, other than amounts referred to in
Subsection a. above.
67
c. In addition to any other applicable limitations which may be set forth in the Plan and
notwithstanding any other provisions of the Plan, Compensation taken into account under
the Plan for any Plan Year for the purpose of calculating a Participant’s accrued benefit
(including the right to an optional benefit provided under the Plan) cannot exceed the limits
set forth in Section 401(a)(17) of the Internal Revenue Code, as adjusted for changes in the
cost of living as provided in Sections 401(a)(17) and 415(d) of the Code. This limit will be
applied on an Employer-by-Employer basis.
Effective January 1, 2002, the maximum Compensation taken into account will be subject to
the limits described in Section 13.03.
Section 1.12. “Continuous Non-Covered Employment” means employment for a Contributing
Employer a�er June 1, 1976 in a job not covered by this Plan which is continuous with a Participant’s
Covered Employment with the same Contributing Employer. A period of Non-Covered
Employment will be considered to be continuous with Covered Employment only if there is no
resignation, discharge, or other termination of employment between the period of Covered and
Non-Covered Employment. “Hours Worked in Continuous Non-Covered Employment” means
all Hours Worked in Continuous Non-Covered Employment a�er June 1, 1976.
Section 1.13. “Contributing Employer,” “Individual Employer,” or “Employer” means
any Individual Employer who is required by the Collective Bargaining Agreement to make
Contributions to the Pension Fund or who makes one or more Contributions to the Trust Fund.
The term “Individual Employer” also includes the Union, any of its affiliated local unions, any
labor council or other labor organization with which the Union or any local union is affiliated,
and any trust or other entity that provides services in the training or retraining of laborers,
which makes Contributions to the Trust Fund with respect to the work of its Employees under a
Subscriber’s Agreement approved by the Board of Trustees, but only to the extent that the inclusion
is permi�ed by existing laws and regulations and subject to the terms and conditions of those laws
or regulations. The Union or any local union, labor council, other labor organization, trust or other
entity is an Individual Employer solely for the purpose of making Contributions with respect to
the work of its Employees and has no other rights or privileges under the Trust Agreement as an
Individual Employer. An Employer is not deemed a Contributing Employer simply because it is
part of a controlled group of corporations or of a trade or business under common control, some
other part of which is a Contributing Employer.
For purposes of identifying highly compensated employees and applying the rules of participation,
vesting and statutory limits on benefits under the Trust Fund but not for determining Covered
Employment, the term “Individual Employer” includes all members of an affiliated service group
of the Individual Employer within the meaning of the Code §414(m) and all other businesses
aggregated with the Individual Employer under Code §414(o).
Section 1.14. “Contribution Date” means the first day that Employer Contributions were
required by the Collective Bargaining Agreement for a Bargaining Unit. The Contribution Date
for an Employee is the date the first Employer Contribution was made on his behalf.
68
Section 1.15. “Covered Employment” means employment on work covered by the Collective
Bargaining Agreement or work for the Union, any affiliated local union or the Laborers Training
and Retraining Trust Fund for Northern California for which Contributions are made to the Pension
Fund under regulations adopted by the Board of Trustees. Hours Worked in Covered Employment
means all Hours Worked for which Employer Contributions are made or are required to be made
to the Trust Fund.
Section 1.16. “Employee” means any employee of an Individual Employer who performs one or
more hours of work covered by the Collective Bargaining Agreement. The term “Employee” also
includes (a) employees of the Union, any of its affiliated local unions, or any labor council or other
labor organization with which the Union or any local union is affiliated, and (b) employees of any
trust or other entity that provides services in the training or retraining of laborers, but only to the
extent that the inclusion is consistent with rules and regulations adopted by the Board of Trustees
as set forth in a Subscriber’s Agreement, and is permi�ed by existing laws and regulations, subject
to the terms and conditions of those laws or regulations.
The term “Employee” does not include any self-employed person, whether a sole proprietor or a
partner.
Solely for purposes of testing for compliance with the nondiscrimination regulations under Section
401(a)(4) of the Internal Revenue Code, all leased employees as defined in Code §414(n) or §414(o)
who have performed services for a Contributing Employer on a substantially full-time basis for a
period of at least one year will be treated as employed by a Contributing Employer except to the
extent these leased employees are excluded in accordance with Code Section §414(n)(5).
Section 1.17. “Employer Contribution” or “Contributions” means the payment made or required
to be made to the Trust Fund by any Employer.
Contributions that are required to pay for the hours credited for periods of Qualified Military
Service will be allocated from general assets of the Trust Fund. No Individual Employer will be
liable to make Contributions for those hours.
Contributions for periods of Qualified Military Service will be based on the Employer contribution
rate that would have applied had the Participant not entered Qualified Military Service, but
continued to work in Covered Employment. Hours granted for Qualified Military Service will be
credited in accordance with Section 6.05.b.
Section 1.18. “Highly Compensated Employee”
a. The term “highly compensated employee” includes highly compensated active employees
and highly compensated former employees of an Employer. Whether an individual is a
highly compensated employee is determined separately with respect to each Employer,
based solely on that individual’s compensation from or status with that Employer.
b. Effective June 1, 1997, a Highly Compensated Employee is any employee who:
69
(1) Was a 5% owner of the Employer at any time during the year or the preceding year, or
(2) For the preceding year
(a) Had compensation from the Employer in excess of $80,000 (as adjusted annually
for increases in the cost-of-living in accordance with regulations prescribed by the
Secretary of the Treasury); and
(b) Was in the top-paid group of employees for the preceding year. An employee is in the
top-paid group of employees for any year if the employee is in the group consisting
of the top 20% of the total employees when ranked by compensation paid during that
year.
(c) For purposes of determining if an employee’s compensation from an Employer
exceeds $80,000 (adjusted for the cost of living) in the preceding year, the preceding
year will be the calendar year beginning within the Plan Year immediately preceding
the Plan Year for which the test is being applied.
Section 1.19. “Hours Worked” means hours for which an Employee is paid, or entitled to
payment for the performance of duties for a Contributing Employer and hours for which back
pay, irrespective of mitigation of damages, is awarded or agreed to by a Contributing Employer,
to the extent the award or agreement is intended to compensate an Employee for periods during
which the Employee would have been engaged in the performance of duties for the Contributing
Employer.
Section 1.20. “Non-Bargained Employee” means a Participant whose participation is not covered
by the Collective Bargaining Agreement.
Section 1.21. “Normal Retirement Age” means age 65 or, if later, the age of the Participant on the
fi�h anniversary of his participation, disregarding participation before June 1, 1988. For all other
Participants “Normal Retirement Age” means age 65 or, if later, the age of the Participant on the
tenth anniversary of his participation.
Participation before a Permanent Break in Service and participation before a temporary Break in
Service in the case of a former Participant who has not returned to Covered Employment and reestablished participation in accordance with Section 2.04. will not be counted.
Section 1.22. “Participant” means a Pensioner or an Employee who meets the requirements for
participation in the Plan as set forth in Article 2, or an Employee who has a�ained Vested Status
under this Plan and has Separated from Covered Employment. A “Vested Participant” includes
an Employee who qualifies for a Deferred Vested Pension in accordance with the provisions of
Section 3.16.
Section 1.23. “Pension Fund” or “Fund” means the trust fund created and established by the
Pension Trust Agreement.
Section 1.24. “Pension Plan” or “Plan” means the Pension Plan established by the Collective
Bargaining Agreement and the Trust Agreement, including any amendment, extension or renewal
of the Plan.
70
Section 1.25. “Pensioner” means a retired Employee receiving pension benefits under the
Pension Plan, and any other person to whom a pension would be paid but for the time required
for administrative processing. A Pensioner who has returned to Covered Employment and is
accruing benefits on the same basis as other Employees as of the effective date of a benefit increase
will not be considered a Pensioner for purposes of that benefit increase.
Section 1.26. “Plan Credit Year” means the period August 1 of any year to July 31 of the succeeding
year. For purposes of ERISA regulations, the Plan Credit Year will serve as the vesting computation
period and benefit accrual computation period, and a�er the initial period of employment, the
computation period for eligibility to participate in the Plan.
Section 1.27. “Plan Year” means the Trust Fund’s fiscal year which is the period from June 1 of
any year through May 31 of the following year.
Section 1.28. “Qualified Domestic Relations Order” means a Domestic Relations Order which
has been determined, under the procedures established by the Board, to be a qualified Domestic
Relations Order as defined in Section 206(d)(3) of ERISA.
Section 1.29. “Qualified Military Service” means a Participant’s qualified military or other
uniformed service period under the Uniformed Services Employment and Reemployment Rights
Act of 1994, as amended, (USERRA) and Section 414(u) of the Internal Revenue Code.
Notwithstanding any other provisions in the Plan, contributions, vesting, benefits, and service
credit with respect to Qualified Military Service will be provided in accordance with USERRA and
Section 414(u) of the Internal Revenue Code for Participants who return to Covered Employment
(or make themselves available for Covered Employment) from Military Service. Qualified Military
Service will be counted for purposes of earning Benefit Units, benefit accruals, Credited Future
Service, avoiding a Break in Service, and preventing a Separation from Covered Employment
provided the following conditions are satisfied:
a. A Participant has re-employment rights under USERRA.
b. A Participant had not incurred a One-Year Break in Service at the time he entered Qualified
Military Service.
c. A Participant had been employed in Covered Employment immediately prior to his Qualified
Military Service.
No more than 5 years of Qualified Military Service may be recognized for any purpose, except as
required by law.
Section 1.30. “Required Beginning Date” is April 1 of the calendar year following the year the
Participant reaches age 70 ½.
Section 1.31. “Retroactive Annuity Starting Date”
a. A Retroactive Annuity Starting Date is an Annuity Starting Date that is affirmatively elected
by a Participant that occurs on or before the date the wri�en explanation of benefit payment
options described in Section 1.03 and Article 7 is provided to the Participant.
71
b. Benefits payable under a Retroactive Annuity Starting Date will consist of an initial single
sum payment of benefits a�ributable to the period beginning on the Participant’s Retroactive
Annuity Starting Date and ending prior to the first of the month benefit payments commence.
This single sum will include interest at an appropriate rate from the date the missed payment
or payments should have been made to the date that the actual payment is made. The Board
of Trustees has determined the interest rate to be 4% simple interest which will remain in
effect until such time as changed by a motion adopted by the Board. Monthly payments
made subsequent to the single sum payment will be in the amount that would have been
paid to the Participant had payments actually commenced on the Participant’s Retroactive
Annuity Starting Date.
c. A Participant who otherwise satisfies the conditions of Subsection a. above, but who does not
affirmatively elect a Retroactive Active Annuity Starting Date will have his benefit calculated
under the terms, conditions, and circumstances applicable to his Annuity Starting Date as
determined under 1.03 in lieu of benefit payments described in Subsection b. above. In the
case of a Participant who retires a�er Normal Retirement Age, the benefit will be actuarially
increased, based on the provisions in Section 9.08.
d. The calculation of benefits whether under Subsection b. or c., above will not include periods
during which the Participant was not retired or benefits were otherwise subject to suspension
under Sections 9.11 and 9.12.
e. Any election of the benefit under Subsection b. above in lieu of that in Subsection c., will be
subject to the notice and consent requirements including but not limited to those of Code
§401(a)(11) and §417 and any regulations issued, including requirements specific to the
election of retroactive payments under Treas. Reg. §1.417(e)-1.
f. For purposes of satisfying the 30 day waiver requirement under Section 1.03 and the consent
requirements under Section 7.03.c., the Annuity Starting Date defined in Section 1.03 will be
used instead of the Retroactive Annuity Starting Date.
Notwithstanding any other Plan provision contained, this Section will be interpreted with the
intent of complying with the retroactive annuity starting date requirements of Treas. Reg. §1.417(e)1(b)(3)(iv), 1.417(e)-1(b)(3)(v) and 1.417(e)-1(b)(3)(vi).
Section 1.32. “Rock, Sand and Gravel Industry” means the industry which is involved in the
production of commercial aggregates or allied products.
Section 1.33. “Rock, Sand and Gravel Plan” means the Pension Plan of the Laborers Rock, Sand,
and Gravel Pension Trust Fund which was merged into this Pension Plan on January 1, 1979.
Section 1.34. “Spouse” means a person to whom a Participant is legally married. The term also
includes a former Spouse of a Participant to the extent required by a Qualified Domestic Relations
Order or by any law of the United States.
Section 1.35. “Trust Agreement” means the Trust Agreement establishing the Laborers Pension
Trust Fund for Northern California, including any amendment, extension or restatement.
72
Section 1.36. “Union” means the Northern California District Council of Laborers affiliated with
the Laborers” International Union of North America, AFL-CIO.
Section 1.37. The following terms are specifically defined in the following Sections:
Term
Section
a. Benefit Units
6.04
b. Break in Service:
One-Year Break in Service
Permanent Break in Service
6.06
6.06
c. Credited Service, Years of:
Credited Past Service
Credited Future Service
6.02
6.03
d. ERISA
2.01
e. Husband-and-Wife Pension
7.01
f. Pension:
Deferred Vested
Disability
Early Retirement
Reciprocal
Regular
Service
3.16 and 3.17
3.06 and 3.07
3.04 and 3.05
4.08 and 4.09
3.02 and 3.03
3.14 and 3.15
g. Retired or Retirement
9.11
h. Separation from Covered Employment
6.07
73
ARTICLE 2
PARTICIPATION
Section 2.01.
Purpose
This Article contains definitions to meet certain requirements of the Employee Retirement Income
Security Act of 1974 (referred to as ERISA). Once an Employee has become a Participant, he
receives Credited Service and Benefit Units for employment before he became a Participant in
accordance with the provisions of Article 6. A person who was a Participant on May 31, 1976 will
be a Participant, unless his participation has been cancelled under the rules of this Plan.
Section 2.02.
Participation
An Employee who works in Covered Employment will become a Participant in the Plan on August
1 or February 1 following a 12-consecutive month period during which he has worked at least 435
hours in Covered Employment. The 12-consecutive-month period begins on the date the Employee
first works an hour in Covered Employment. The 435-hour requirement may also be completed
with hours worked in Continuous Non-Covered Employment with a Contributing Employer.
Section 2.03.
Termination of Participation
A Participant who incurs a One-Year Break in Service will cease to be a Participant on the last day
of the Plan Credit Year which constituted the One-Year Break in Service, unless he is a Pensioner
or Vested Participant.
A person who would have been a Participant in the Rock, Sand and Gravel Plan on January 1, 1979
will be a Participant in this Plan on that date.
Section 2.04.
Reinstatement of Participation
An Employee who has lost his status as a Participant under Section 2.03 will become a Participant
by meeting the requirements of Section 2.02 within a Plan Credit Year on the basis of hours worked
in Covered Employment and Continuous Non-Covered Employment a�er the Plan Credit Year
during which Participation terminated. An Employee who reinstates his Participation in accordance
with this Section 2.04 prior to incurring a Permanent Break in Service (as defined in Section 6.06)
will have his Participation reinstated retroactively to the date of his re-employment.
Section 2.05.
Pensioners are Participants
A Pensioner receiving a pension from the Trust Fund is a Participant in the Plan.
74
ARTICLE 3
PENSION ELIGIBILITY AND AMOUNTS
Section 3.01.
General
This Article presents the eligibility requirements and amounts payable for the pensions provided
by the Plan. The accumulation and retention of Benefit Units and Credited Service for eligibility
are subject to the provisions of Article 6. The pension amounts are subject to a reduction for the
Husband-and-Wife Pension as described in Article 7. Entitlement to pension benefits is subject to
an eligible Participant’s retirement and application for benefits, as provided in Article 9.
Eligibility, in most instances, depends upon Credited Service, which is defined in Sections 6.02 and
6.03, and takes into account creditable employment both before and a�er Contributions began.
Pension amounts (and in some instances, eligibility) are based on accumulated Benefit Units as
defined in Section 6.04 which also takes into account creditable employment both before and a�er
Contributions began.
Pensions Effective Prior to June 1, 1976: Pensioners receiving pensions with an effective date prior
to June 1, 1976, will continue to receive the pensions awarded to them without change, subject
to the provisions of Sections 3.08, 3.09, 3.12, 3.13, 8.02, 9.01.b. and c., 9.02-9.18, 11.04 and 12.01
of this Plan.
Section 3.02.
Regular Pension - Eligibility
A Participant who has retired is entitled to receive a Regular Pension if:
a. he has a�ained age 65; and
b. he is vested in accordance with Subsection 3.16.a.(1); and
c. he has worked at least 500 hours in Covered Employment since August 1962.
In any event, a Participant is entitled to a Regular Pension once he a�ains Normal Retirement Age
as defined in Section 1.21.
Section 3.03.
Amount of Regular Pension
a. A Regular Pension effective on or a�er July 1, 2005, will be a monthly amount determined as follows:
(1) If there has been no Separation from Covered Employment, the monthly amount of the
Regular Pension is the sum of:
(a) $95.00 for each Benefit Unit (or a proportionate amount for each fraction of a Benefit
Unit) earned as a result of employment before August 1, 1986; and
(b) 3.30% of Contributions made for Hours Worked in Covered Employment a�er July
31, 1986 and before August 1, 2003, excluding any Contributions made in a Plan
Credit Year during which the Participant failed to earn .50 Benefit Unit; and
75
(c) 2.30% of Contributions made for Hours Worked in Covered Employment a�er July
31, 2003 and before July 1, 2005, excluding any Contributions made in a Plan Credit
Year during which the Participant failed to earn .50 Benefit Unit; and
(d) 2.30% of the first $2.16 per hour in Contributions made for Hours Worked in Covered
Employment a�er June 30, 2005, excluding any Contributions made in a Plan Credit
Year during which the Participant failed to earn .50 Benefit Unit.
If a Participant earns a Year of Credited Future Service in a Plan Credit Year a�er July 31, 1986,
but works less than 500 hours in Covered Employment during that year, his Regular Pension
will be increased in accordance with Subsection (b) or (c) based on 3.30% or 2.30% (whichever is
applicable) of Contributions made for Hours Worked in Covered Employment by the Participant
during that year.
(2) If there has been a Separation from Covered Employment, the monthly amount of the
Regular Pension is the sum of:
(a) an amount determined in accordance with Subsection a.(1) above accrued a�er the
most recent Separation from Covered Employment; and
(b) the monthly amount payable for service prior to any Separation from Covered
Employment is the amount which was payable by the Plan at the end of the separation
period. However, in no event will the monthly amount payable for each Benefit Unit
earned prior to August 1, 1986 be less than $22.00.
b. Exceptions:
(1) The monthly amount of a Regular Pension effective on or a�er August 1, 1986, to
a Participant who is a former Participant in the Rock, Sand and Gravel Plan will be a
monthly amount equal to the sum of:
(a) an amount determined in accordance with Subsection a.(1) above accumulated a�er
July 31, 1978; and
(b) the monthly amount of a Regular Pension accrued in accordance with the Rock, Sand
and Gravel Plan as of July 31, 1978.
(2) The monthly amount of a Regular Pension payable to a Participant who at one time
performed work for which employer contributions were made or were required to be
made to the Rock, Sand and Gravel Plan, but who was not a Participant in that Plan on
December 31, 1978, will be calculated in accordance with Subsections a.(1) and (2) above,
and that Participant will also receive $22.50 for each Benefit Unit (plus any fraction of a
Benefit Unit) earned under the Rock, Sand and Gravel Plan, except for any Benefit Units
earned prior to a Permanent Break in Service.
(3) Notwithstanding the provisions of Subsections b.(1) and (2) above, the monthly amount
of a Regular Pension effective on or a�er January 1, 1993, payable to a Participant who is
a former Participant in the Rock, Sand and Gravel Plan, or who at one time performed
76
work for which employer contributions were made or were required to be made to the
Rock, Sand and Gravel Plan but who was not a Participant in that Plan on December
31, 1978, will be calculated in accordance with Subsection a. above for benefits earned
under this Plan and under the Rock, Sand and Gravel Plan provided that Participant has
earned 5 Years of Credited Service under this Plan since December 31, 1978.
Section 3.04.
Early Retirement Pension - Eligibility
A Participant who has retired is entitled to receive an Early Retirement Pension, if:
a. he has become age 55, but not yet become age 65; and
b. he has at least 10 Years of Credited Service (without a Permanent Break in Service) exclusive
of any Credited Future Service earned as a result of work in Continuous Non-Covered
Employment; and
Section 3.05.
Amount of Early Retirement Pension
The Early Retirement Pension will be a monthly amount determined as follows:
a. First, compute the amount of the Regular Pension to which the Participant would be entitled
if he were 65 years of age at the time his Early Retirement Pension is to be effective.
b. Second, to take account of the fact that the Participant is younger than age 65, reduce the
first amount by ¼ of 1% for each month that the Participant is younger than age 65 on the
Annuity Starting Date of his Early Retirement Pension.
Section 3.06.
Disability Pension - Eligibility
A totally disabled Participant who has retired is entitled to receive a Disability Pension, if he meets
the following requirements:
a. he has not become age 65; and
b. he has at least 10 Years of Credited Service (without a Permanent Break in Service) exclusive
of any Credited Future Service earned as a result of work in Continuous Non-Covered
Employment; and
c. he has, as a result of actual work in Covered Employment (and not as a result of Credited
Service granted under Section 6.05) earned at least 2 quarters of Credited Service (1) in
the Plan Credit Year in which he became totally disabled, or (2) in the 2 consecutive Plan
Credit Years prior to the Plan Credit Year in which he became totally disabled. However,
a Participant who became totally disabled in the 1975-76 or the 1976-77 Plan Credit Year
does not need to meet this requirement if he actually worked at least 250 hours in Covered
Employment in at least one of the 2 Plan Credit Years prior to the Plan Credit Year in which
he became totally disabled.
77
Section 3.07.
Amount of Disability Pension
a. The Disability Pension will be a monthly amount equal to the sum of (subject to the exceptions
in Subsection b. below):
(1) $50.00 for each Benefit Unit, plus any fraction, accumulated a�er the most recent
Separation from Covered Employment (if any); and
(2) a monthly amount payable for each Benefit Unit accrued prior to any Separation from
Covered Employment, as follows: The monthly amount payable for each Benefit Unit
earned prior to any Separation from Covered Employment is the amount which was
payable by the Plan at the end of the separation period (but not less than $22.00).
b. Exception:
(1) The monthly amount of a Disability Pension effective on and a�er January 1, 1979 and
payable to a Participant who is a former Participant in the Rock, Sand and Gravel Plan
will be a monthly amount equal to the sum of:
(a) $25.00 for each Benefit Unit, plus any fraction, accumulated a�er July 31, 1978; and
(b) $22.50 for each Benefit Unit accrued in accordance with the provisions of Section 5.04
prior to August 1, 1978.
(2) The monthly amount of a Disability Pension of a Participant who at one time performed
work for which employer contributions were made or required to be made to the Rock,
Sand and Gravel Plan, but who was not a Participant in that Plan on December 31, 1978,
will be calculated in accordance with Subsection a. above, and a Participant will also
receive $22.50 for each Benefit Unit, plus any fraction, earned under the Rock, Sand and
Gravel Plan except for any Benefit Units earned prior to a Permanent Break in Service.
(3) Notwithstanding the provisions of Subsections a.(1) and (2) above, the monthly amount
of a Disability Pension effective on or a�er January 1, 1993, payable to a Participant who
is a former Participant in the Rock, Sand and Gravel Plan, or who at one time performed
work for which employer contributions were made or were required to be made to the
Rock, Sand and Gravel Plan but who was not a Participant in that Plan on December 31,
1978, will be calculated in accordance with Subsection a. above for benefits earned under
this Plan and under the Rock, Sand and Gravel Plan provided that Participant has earned
5 Years of Credited Service under this Plan since December 31, 1978.
c. Only the most recent 35 Benefit Units earned will be used to compute the maximum amount
of the Disability Pension.
d. A Disability Pension effective on or a�er May 1, 1981, is not be subject to the maximum
limitation stated in Subsection c. above.
78
e. Under no circumstances will the monthly amount of the Disability Pension be less than
the amount payable as an Early Retirement Pension, as determined in Section 3.05, if that
calculation were based upon a Participant’s earliest possible retirement age as set forth in
Section 3.04.
Section 3.08.
Total Disability Defined
A Participant will be deemed totally disabled upon determination by the Social Security
Administration, that he is entitled to a Social Security Disability Benefit, in accordance with
his Old Age, Survivors and Disability Insurance coverage. The Board may, in its sole and
absolute judgment, grant a Disability Pension in the absence of an award by the Social Security
Administration, provided the Board finds that:
a. on the basis of competent medical evidence as the Board may require to be shown, the
Participant is totally unable, as a result of physical or mental impairment, to engage in or
perform work as a laborer in the Building and Construction Industry; and
b. the bodily injury or disease is not due to the Participant’s commission of or a�empt to commit
a felony, or the engagement in any felonious activity or occupation, or self-infliction of any
injury, or as the result of habitual drunkenness or the use of narcotics, unless administered
according to the orders of a licensed physician; and
c. the total disability is expected to result in death or to be of a continued and indefinite
duration.
The Board may at any time, or from time to time, require evidence of continued entitlement to
Social Security Disability Benefits, and may at any time, notwithstanding the prior granting of a
Disability Pension under the Plan, require that a Participant satisfy the provisions of this Section
as a prerequisite to the continuance of the Disability Pension granted under the Plan.
Section 3.09.
Disability Pension Payments
a. Payment of the Disability Pension will not begin until 6 full calendar months of total disability
have passed, or until the requirement for advance application has been met, whichever is
later. Payment of the Disability Pension will continue as long as the disabled Pensioner
remains totally disabled, as defined by the Plan. Once a disabled Participant becomes age
65, his benefits will continue, regardless of whether he remains totally disabled, as long as
he remains retired as defined in Section 9.11.
b. Effective as of June 1, 1989, if the Annuity Starting Date for a Participant who is totally
disabled is a�er the date payment would have begun in accordance with Subsection a.
above, that Participant will be entitled to a one-time cash payment equal to the monthly
amount of his Disability Pension, in the payment form elected, multiplied by the number of
calendar months between the date determined in accordance with Subsection a. above and
the Annuity Starting Date.
79
Section 3.10.
Total Disablement of a Pensioner Receiving an Early Retirement Pension
If a Pensioner receiving an Early Retirement Pension was totally disabled on the date his Early
Retirement Pension became effective and had, as a result of actual employment, earned at least 2
quarters of Credited Service in the 2 consecutive Plan Credit Years prior to the Plan Credit Year in
which he became totally disabled, he will be entitled to a Disability Pension under the following
conditions:
a. If the beginning of the seventh month of total disability, as defined in Section 3.08, is
coincident with or prior to the effective date of his Early Retirement Pension, his Disability
Pension will be effective as of the effective date of his Early Retirement Pension, or with the
seventh month of disability, if the filing requirement set forth in Section 9.01 is met.
b. If the seventh month of total disability, as defined in Section 3.08, begins a�er the effective
date of his Early Retirement Pension, then the higher amount of the Disability Pension will
not become payable until the first day of the month following the month when the difference
between the Early Retirement Pension amount and the Disability Pension amount equals the
amount paid to him as an Early Retirement Pension prior to the beginning of the seventh
month of total disability.
Section 3.11.
Total Disablement of a Pensioner Receiving a Service Pension
If a Pensioner receiving a Service Pension becomes totally disabled, he may receive a Disability
Pension instead of a Service Pension if he notifies the Trust Fund Office.
Section 3.12.
Recovery by a Pensioner on a Disability Pension
If a Pensioner on a Disability Pension (a) loses entitlement to a Social Security Disability Benefit
or its equivalent, or (b) otherwise recovers from his disability, that information must be reported
in writing to the Board within 15 days of the date he (a) received notice from the Social Security
Administration or its equivalent, of the termination of his Social Security Disability Benefit or its
equivalent, or (b) otherwise recovered from his disability, subject to waiver by the Board of the 15
day notice, upon good cause shown by the Pensioner. If wri�en notice is not provided, he will,
upon his subsequent retirement, prior to Normal Retirement Age (unless the Board finds there are
extenuating circumstances), be disqualified for benefits for a period of up to 12 months following
the date of his retirement, in addition to the months which may have elapsed since he (a) received
notice of the termination of the Social Security Disability Benefit or its equivalent, or (b) otherwise
recovered from his disability, and in which he received Disability Pension payments from the
Trust Fund, subject to the provisions of Section 9.12.
Section 3.13.
Re-employment of a Pensioner on a Disability Pension
A Pensioner on a Disability Pension who is no longer totally disabled may re-enter Covered
Employment and may resume the accrual of Credited Service and Benefit Units.
80
Section 3.14.
Service Pension - Eligibility
A Participant who has retired is entitled to receive a Service Pension if he meets the following
requirements:
a. he has not yet become age 65; and
b. he has at least 25 Benefit Units (without a Permanent Break in Service). No more than one
Benefit Unit per Plan Credit Year will be counted for this purpose; and
Section 3.15.
Amount of Service Pension
a. The Service Pension will be a monthly amount determined in the same way as a Regular
Pension is determined.
b. If a Pensioner in receipt of a Service Pension returns to Covered Employment at a time when
he is younger than age 65, his Service Pension will be increased by the monthly benefit
payable under Subsection 3.03.a., at the time of his subsequent retirement for each Benefit
Unit earned a�er his return to Covered Employment.
This method of redetermining the amount of a Service Pension will be applied to the 35
Benefit Units earned most recently.
c. A Service Pension effective on or a�er May 1, 1981, is not subject to the maximum limitation
stated in Subsection b. above.
Section 3.16.
Deferred Vested Pension - Eligibility
a. A Deferred Vested Pension is payable to a Vested Participant who has worked at least 500
hours in Covered Employment since August 1962 and has achieved vested status under the
circumstances described below:
(1) A�er January 1, 1997, a Participant who has worked at least one hour of work in Covered
Employment a�er January 1, 1997 will have achieved vested status if he has accumulated
at least 5 Years of Credited Service without a Permanent Break in Service. However, a
Participant who does not have at least one hour in Covered Employment a�er January
1, 1997 may achieve vested status in accordance with Subsection a.(2) below.
(2) Between June 1, 1976 and January 1, 1997, a Participant achieved vested status if he has
accumulated at least 10 Years of Credited Service without a Permanent Break in Service.
However, a Non-Bargained Employee who is a Participant and who has at least one hour
of work in Covered Employment a�er May 1, 1989, will a�ain vested status a�er he has
accumulated 5 Years of Credited Service.
(3) Between February 1, 1973 and June 1, 1976, a Participant achieved vested status if he had
accumulated at least 10 Benefit Units, without a Permanent Break in Service.
81
(4) Between February 1, 1972 and February 1, 1973, a Participant achieved vested status if he
met either of the following conditions:
(a) he had accumulated at least 15 Benefit Units; or
(b) he had met all of the requirements for any type of Pension provided by the Plan.
(5) Between August 1, 1964 and February 1, 1972, a Participant achieved vested status if he
had met either of the following conditions:
(a) he had a�ained age 50 and had accumulated at least 15 Benefit Units; or
(b) he had met all of the requirements for any type of Pension provided by the Plan.
A Deferred Vested Pension is also payable to a Participant who achieved vested status
under the Rock, Sand and Gravel Plan prior to its merger into this Fund.
For the purposes of satisfying the eligibility requirements for a Deferred Vested Pension,
credit for periods of Qualified Military Service will be recognized.
b. A Deferred Vested Pension is payable to a Vested Participant, upon retirement:
(1) at age 65; or
(2) between the ages of 55 and 65, if he has met the Credited Service requirements for an
Early Retirement Pension as set forth in Subsection 3.04.b; or
(3) at any age, if he has met all the requirements of Section 3.14.
c. If, on the Annuity Starting Date, a Vested Participant has had a Separation from Covered
Employment since he last worked in Covered Employment, he will be entitled to a Deferred
Vested Pension. (Regular, Early or Service Pension)
Section 3.17.
Amount of Deferred Vested Pension
The monthly amount of the Deferred Vested Pension payable to a Vested Participant who has had
a Separation (see Article 6, Section 6.07) from Covered Employment will be determined in the
same manner as a Regular, Early Retirement or Service Pension, whichever is appropriate to his
a�ained age and accumulated Years of Credited Service or Benefit Units on the effective date of
his pension.
Section 3.18.
Non-duplication of Pensions
A person is entitled to payment of only one type of pension under this Plan at any one time.
Section 3.19.
Adjustment to Pension
A Pensioner or Beneficiary receiving a Regular, Early, Disability, Service, or Reciprocal Pension
(the larger portion of whose Combined Credited Service is Northern California Credited Service)
82
will have his pension increased by a supplemental benefit of $50.00 per month, subject to the
conditions described below:
a. Effective September 1, 1987:
(1) For Pensions effective prior to September 1, 1987, all Pensioners and other Beneficiaries
on the rolls on September 1, 1987 will receive a supplemental benefit of $25.00 per
month, except that Beneficiaries who are entitled to receive benefits under Section 7.01
will receive a supplemental benefit of $12.50 per month.
(2) For Pensions effective on or a�er September 1, 1987:
(a) The supplemental benefit of $25.00 is subject to the reduction for the Husband-andWife Pension described in Article 7, or any other optional form of benefit payments
elected by the Participant under Section 8.02.
(b) A Participant retiring under the Deferred Vested Benefit, who meets the eligibility
requirement for hours worked as shown below, is eligible for the supplemental
benefit of $25.00.
For Retirement in:
The Number of Hours Worked for
Individual Employers in the 48-Month Period
Preceding the Annuity Starting Date is:
1987
1988
1989
1990 and thereafter
500
1,000
1,500
2,000
(c) For Participants retiring on Early Retirement or Deferred Vested Early Retirement
Pensions, the reduction factors for Early Retirement will not apply to the supplemental
benefit of $25.00.
b. Effective September 1, 1990
(1) For Pensions effective prior to September 1, 1990, all Pensioners and other Beneficiaries
on the rolls on September 1, 1990 will receive a supplemental benefit of $25.00 per month,
in addition to that described in Subsection a. above, except that Beneficiaries who are
entitled to receive benefits under Section 7.01 will receive an additional supplemental
benefit of $12.50 per month.
(2) For Pensions effective on or a�er September 1, 1990:
(a) The additional supplemental benefit of $25.00 is subject to the reduction for the
Husband-and-Wife Pension described in Article 7, or any other optional form of
80
benefit payments elected by the Participant under Section 8.02.
(b) A Participant retiring under the Deferred Vested Benefit must have worked 2,000
hours for Individual Employers in the 48-month period preceding the Annuity
Starting Date in order to be eligible for the supplemental benefit.
(c) For Participants retiring on Early Retirement or Deferred Vested Early Retirement
Pensions, the reduction factors for Early Retirement will not apply to the supplemental
benefit of $25.00.
c. In addition to the supplemental benefits described in Subsections a. and b. above, effective
December 1, 1993 through November 30, 2010 only, the pension will be increased temporarily
by a supplemental benefit of $150 per month for Pensioners under age 65 and $75 per month
for Pensioners age 65 and older as of December 1, 1993. The temporary supplemental benefit
of $150 per month will be reduced to $75 per month on the first day of the month following
the month in which age 65 is a�ained. The temporary supplemental pension benefit is subject
to the following conditions:
(1) For Pensions effective prior to December 1, 1993, all Pensioners and Beneficiaries on the rolls
on December 1, 1993 will receive a supplemental benefit as described above, except that:
(a) A Beneficiary who is entitled to receive a Husband-and-Wife Pension will receive a
supplemental benefit of $75 if his or her former Spouse would have been under age
65, or $37.50 if age 65 or older, as of December 1, 1993. Additionally, if the deceased
Spouse would have a�ained age 65 a�er December 1, 1993, the supplemental benefit
will be reduced to $37.50 on the first day of the month following the month in which
age 65 would have been a�ained.
(b) A Pensioner who retired on a Deferred Vested Pension must have met the eligibility
requirement for hours worked as shown below as of the effective date of his pension:
For Retirement in:
The Number of Hours Worked for
Individual Employers in the 48-Month Period
Preceding the Annuity Starting Date is:
1987
1988
1989
1990 and thereafter
500
1,000
1,500
2,000
(2) For Pensions effective on or a�er December 1, 1993:
(a) A Participant retiring on a Deferred Vested Pension must have worked 2,000 hours
for Individual Employers in the 48-month period preceding the Annuity Starting
Date in order to be eligible for the temporary supplemental benefit.
(b) For Participants retiring on Early Retirement or Deferred Vested Early Retirement Pensions,
the reduction factors for Early Retirement will not apply to the supplemental benefit.
84
ARTICLE 4
RECIPROCAL PENSIONS
Section 4.01.
Purposes
Reciprocal Pensions are provided under this Plan for Employees:
a. 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 other pension plans, or
b. whose pensions would otherwise be less than the full amount because of a division of
employment.
Section 4.02.
Related Plans
By resolution duly adopted, the Board of Trustees recognizes (a) one or more other pension plans
which have executed a National Reciprocal Agreement to which this Plan is a party, or (b) may
recognize any other pension plan as a Related Plan.
Section 4.03.
Related Hours
The term “Related Hours” means hours of employment which are creditable under a Related Plan.
Section 4.04.
Related Credit
The term “Related Credit” means Credited Service, or any portion, credited to an Employee
under a Related Plan, excluding any Related Credit based on work of the type which, had it
been performed under this Plan, would be Continuous Non-Covered Employment. No more than
one year of Related Credit will be recognized for employment under a Related Plan during any
consecutive 12-month period.
Section 4.05.
Combined Credited Service
The term “Combined Credited Service” means the total of an Employee’s Related Credit plus
Northern California Credited Service, excluding any Credited Service earned in Continuous NonCovered Employment.
Section 4.06.
Combined Benefit Units
The term “Combined Benefit Units” means the total of an Employee’s Related Credit plus
Northern California Benefit Units.
Section 4.07.
Non-Duplication
An Employee cannot receive double credit for the same period of employment. No more than one
year of Combined Credited Service or one Combined Benefit Unit will be given for employment
in any consecutive 12-month period.
85
An Employee may, in any 12 consecutive calendar months, work under this Plan and one or more
Related Plans (Section 4.02) and accumulate fractions of years of Related Credit (Section 4.04) or
Northern California Credited Service or fractions of Benefit Units, which together add up to more
than one year of Combined Credited Service (Section 4.05) or one Combined Benefit Unit (4.06). In
that event, if the benefit level is lower under this Plan than under another Related Plan or Plans,
the Employee’s Northern California Credited Service and Benefit Units will be reduced so that
the Employee will receive no more than one year of Combined Credited Service or one Combined
Benefit Unit during those 12 consecutive calendar months.
Section 4.08.
Eligibility for a Reciprocal Pension
a. An Employee who has retired is entitled to a Reciprocal Pension if he meets the following
requirements:
(1) he would be eligible for a pension under this Plan were his Combined Credited Service
or Combined Benefit Units treated as Northern California Credited Service or Benefit
Units (whichever is applicable); and
(2) he has (a) at least one year of Northern California Credited Service and one year of
Related Credit under each of the Related Plans whose Related Credit is needed to qualify
him for a Reciprocal Pension, or (b) worked a�er August 1, 1962 for at least 500 hours for
which Contributions were made or were required by a wri�en agreement to be made to
this Pension Plan or to a Related Plan; and
(3) if he is applying for a Disability Pension under this Plan, he is deemed to be sufficiently
disabled so as to meet the disability criterion for a Disability Pension in each of the
Related Plans whose Related Credit is needed to qualify him for a Reciprocal Disability
Pension; and
(4) if age is a requirement for the type of pension for which the Employee is applying, he
meets the minimum age requirement for a pension under each of the Related Plans
whose Related Credit is needed to qualify him for a Reciprocal Pension.
b. Related Hours will be considered in determining whether an Employee has incurred a Break
in Service as defined in Section 6.06, or a Separation from Covered Employment as defined
in Section 6.07.
However, once Employer Contributions are no longer made to this or a Related Plan with
respect to work performed by the Employee, the determination as to whether he has had
a Permanent Break in Service under this Plan will be based solely on the Credited Service
earned under this Plan and not upon the Employee’s Combined Credited Service.
c. Related Credits will be limited in determining an Employee’s eligibility for monthly pension
payments to a Pensioner (including a Disability Pensioner) and for vesting in a Deferred
Vested Pension, or the eligibility of the surviving Spouse or children of an Employee for
benefits under Article 7 or Section 8.01.
86
Section 4.09.
Amount of the Reciprocal Pension
The monthly amount of a Reciprocal Pension is determined in the same way that the Regular,
Early Retirement, Disability, Service or Deferred Vested Pension is determined, based on (a) the
benefit level in effect at the time the Employee last earned Credited Service and (b) the Northern
California Benefit Units which are included in the most recently acquired 35 Combined Benefit
Units (but not less than the benefit accrued on September 30, 1978).
A Reciprocal Pension effective on or a�er May 1, 1981 is not subject to the maximum limitation
stated in item (b) above.
Section 4.10.
Payment
Payment of a Reciprocal Pension is subject to all of the conditions applicable to the other types of
pensions under this Plan.
Section 4.11.
Suspension of a Reciprocal Pension
A Reciprocal Pensioner’s pension will be suspended in accordance with the provisions of Section
9.12. In addition, a Reciprocal Pensioner who has not a�ained Normal Retirement Age will have
his monthly pension suspended by this Plan if his Reciprocal Pension is suspended by a Related
Plan.
87
ARTICLE 5
CREDITED SERVICE, BENEFIT UNITS AND
BENEFIT ACCRUAL FOR FORMER PARTICIPANTS IN THE
LABORERS ROCK, SAND AND GRAVEL PENSION TRUST FUND
Section 5.01.
Purpose
The purpose of this Article is to set forth the basis on which Employees who earned Credited
Service and Benefit Units and accrued benefits under the Rock, Sand and Gravel Plan prior to its
merger into this Pension Fund will receive Credited Service, Benefit Units and benefit accrual as
a result of (a) employment before January 1, 1979, the date of the merger of the Rock, Sand and
Gravel Plan into this Pension Fund, and (b) during the transition from the Rock, Sand and Gravel
Credited Service and Benefit Unit accrual computation periods (the 1978 calendar year) to this
Pension Plan’s Credited Service and Benefit Unit accrual computation periods (the 1978-79 Plan
Credit Year).
This Article also sets forth the basis on which the monthly amounts of pensions payable to Rock,
Sand and Gravel Plan pensioners, which were effective between August 1, 1978 and December 31,
1978, may be recomputed a�er January 1, 1979.
Section 5.02.
Credited Service
A Participant who is a former Participant in the Rock, Sand and Gravel Plan receives Credited
Service for periods of employment prior to January 1, 1979, in accordance with the provisions of
the Rock, Sand and Gravel Plan.
A Participant who is a former Participant in the Rock, Sand and Gravel Plan receives Credited
Service beginning August 1, 1978 in accordance with Article 6 of this Pension Plan for (a) hours
of work in Covered Employment and Continuous Non-Covered Employment on and a�er that
date, and (b) hours of work for an employer who made or was required to make Contributions to
the Rock, Sand and Gravel Plan between August 1, 1978 and January 1, 1979 for which Credited
Service was granted under the Rock, Sand and Gravel Plan.
Section 5.03.
Breaks in Service
The period from January 1, 1979 to July 31, 1979 will be ignored in determining whether a former
Participant in the Rock, Sand and Gravel Plan has had a One-Year Break in Service as defined in
Subsection 6.06.b.
Credited Service earned under the Rock, Sand and Gravel Plan by a former Participant in that
Plan, who had not incurred a Permanent Break in Service on January 1, 1979, will be taken into
account in determining whether he has incurred a Permanent Break in Service in accordance with
Subsection 6.06.c.
88
Section 5.04.
Benefit Units
a. A Participant who is a former Participant in the Rock, Sand and Gravel Plan receives Benefit
Units (but not more than 25) for periods of employment prior to August 1, 1978 in accordance
with the Rock, Sand and Gravel Plan.
A Participant who is a former Participant in the Rock, Sand and Gravel Plan receives
Benefit Units beginning August 1, 1978 for periods of employment on and a�er that date in
accordance with Article 6 of this Pension Plan for Hours Worked in Covered Employment on
or a�er that date, including hours of work for which Contributions were made or required
to be made between August 1, 1978 and January 1, 1979 to the Rock, Sand and Gravel Plan.
b. A Pensioner who retired a�er July 31, 1978 and whose pension from the Rock, Sand and
Gravel Plan was effective before January 1, 1979, receives Benefit Units in accordance with
the Rock, Sand and Gravel Plan for periods of employment prior to January 1, 1979, unless
his benefit under Subsection 3.03.b. or 3.07.b. would be higher if his Benefit Units were
determined under Subsection a. above.
Section 5.05.
Benefit Accrual
a. Pension amounts accrued by Participants who are former Participants in the Rock, Sand and
Gravel Plan are determined in accordance with the provisions of the Rock, Sand and Gravel
Plan with respect to Benefit Units earned under that Plan prior to August 1, 1978. A former
Participant in the Rock, Sand and Gravel Plan whose pension is effective on or a�er January
1, 1993, and who has earned 5 Years of Credited Service under this Plan since December 31,
1978, will have his pension determined in accordance with Subsection 3.03.b.(3), Section 3.05
or Subsection 3.07.b.(3) of this Pension Plan, whichever is appropriate to his circumstances.
b. A Pensioner who retired a�er July 31, 1978 and whose pension from the Rock, Sand and
Gravel Plan was effective before January 1, 1979 receives a pension in an amount determined
under the Rock, Sand and Gravel Plan. If his monthly pension amount would be greater
were his pension determined in the manner described in Subsection 3.03.b, Section 3.05. or
Subsection 3.07.b. of this Pension Plan, whichever is appropriate to his circumstances, his
pension will be increased to the higher amount effective January 1, 1979.
c. Pension amounts payable for Benefit Units earned a�er July 31, 1978 by a former Participant
in the Rock, Sand and Gravel Plan are determined in accordance with Article 3 of this Plan.
In no event, will the pension amount payable to a former Participant in the Rock, Sand
and Gravel Plan as a result of employment before January 1, 1979 be less than the monthly
pension accrued by a Participant as of December 31, 1978 in accordance with the provisions
of the Rock, Sand and Gravel Plan.
89
ARTICLE 6
ACCUMULATION OF BENEFIT UNITS AND
YEARS OF CREDITED SERVICE
Section 6.01.
General
The purpose of this Article is to explain how Participants accumulate Benefit Units and Years
of Credited Service and how accumulated Benefit Units and Years of Credited Service may be
cancelled.
Section 6.02.
Years of Credited Service for Periods Prior to August 1, 1962
a. For the period August 1, 1937 to August 1, 1962, a Participant is entitled to Credited Past
Service to the extent provided in this Section for each Plan Credit Year, or portion of a Plan
Credit Year, he was employed:
(1) by a Contributing Employer (or any predecessor) or in a Bargaining Unit (or predecessor),
which was included for coverage under the Plan prior to June 30, 1967, or
(2) in the Building and Construction Industry in the 46 Northern California Counties, in one
or more classifications included in the Collective Bargaining Agreement, or
(3) by an affiliated local union, or the Union, in a position included in the Plan under
regulations adopted by the Board.
A Participant will also be granted Credited Past Service for each Plan Credit Year, or portion of a
Plan Credit Year, for military service during a period in the Armed Forces of the United States, in
time of war or national emergency or under a National Conscription Law for the period during
which he retained re-employment rights under federal law; provided: (i) the Participant was
employed in the 46 Northern California Counties immediately prior to his entry into the Armed
Forces on work of the type for which Credited Past Service is granted in Subsection a. above; (ii)
he made himself available for employment in the 46 Northern California Counties on work of the
type for which Credited Past Service is granted in Subsection a. above within 90 days a�er his
release from active duty or 90 days a�er recovery from a disability continuing a�er his release
from active duty; and (iii) that the Participant furnish in writing information and proof concerning
his availability as the Board may, in its sole discretion, determine. Portions of Credited Past Service
will be granted for periods of military service of less than one year.
90
A Participant is entitled to Credited Past Service for each Plan Credit Year in which he was
employed in accordance with the following schedule:
Hours Worked in
Plan Credit Year
Credited
Past Service
Less than 250 hours
250 to 499 hours
500 to 749 hours
750 to 999 hours
1,000 hours or more
None
.25
.50
.75
1.00
b. Application for entitlement to Credited Past Service must be made on a form approved
by the Board and signed by the Participant, which specifies the periods during which the
Participant was employed in work entitling him to Credited Past Service and must be
confirmed by evidence satisfactory to the Board substantiating the employment claimed by
the Participant.
The application must specify all periods for which credit is claimed and, insofar as possible,
all hours worked for which credit is claimed during each period. Failure to comply with this
requirement without good cause, as determined by the Board, will constitute a waiver of
any claim of credit for any periods or hours not specified in the application.
For the period beginning February 1, 1953 the Board may accept as prima facie evidence of
employment entitling a Participant to Credited Past Service, a statement from the Trust Fund
Manager of the Laborers Health and Welfare Trust Fund for Northern California certifying
to the receipt by that Fund of employer’s reports of contributions with respect to hours of
work by the Participant and stating the number of hours reported for the period covered by
the statement. For any months prior to February 1, 1953, the Board will accept as prima facie
evidence of employment, any or all of the following:
(1) A wri�en statement from any employer certifying that the Participant performed work
for that employer entitling him to Credited Past Service.
(2) A wri�en statement from the secretary or other authorized officer of an affiliated local
union or the membership record from the Laborers’ International Union of North
America showing that the Participant was a member in good standing in the local union,
or was employed by the affiliated local union or the Union in a position included in the
Plan under regulations adopted by the Board.
(3) A W-2 form or check stub furnished for work performed during the month for any
employer known or reputed to have been operating in the Building and Construction
Industry in the 46 Northern California Counties during the month or for work for which
Credited Past Service is granted.
(4) A wri�en statement from the Social Security Administration to the effect that according
to its records the Participant was employed by a named employer, known or reputed to
be operating in the Building and Construction Industry in the 46 Northern California
Counties or in work for which Credited Past Service is granted.
91
Section 6.03.
Years of Credited Service A�er August 1, 1962
a. From August 1, 1962 to August 1, 1975, a Participant will receive Credited Future Service for
hours worked in Covered Employment during a Plan Credit Year, according to the following
schedule:
Hours Worked in
Plan Credit Year
Credited
Future Service
Less than 250 hours
250 to 499 hours
500 to 749 hours
750 to 869 hours
870 hours or more
None
.25
.50
.75
1.00
b. A Participant will receive Credited Future Service for hours worked in Covered Employment
during a Plan Credit Year on and a�er August 1, 1975, according to the following schedule:
Hours Worked in
Plan Credit Year
Credited
Future Service
Less than 435 hours
435 to 652 hours
653 to 869 hours
870 hours or more
None
.50
.75
1.00
c. If a Participant works for a Contributing Employer in Continuous Non-Covered Employment,
his hours worked in Continuous Non-Covered Employment a�er May 31, 1976 (or a�er
the Contribution Date, if later) will be counted toward a Year of Credited Service. If the
Participant does not work sufficient hours for Contributing Employer(s) to earn a full year
of Credited Service in a Plan Credit Year, he will not be entitled to any portion of a Year of
Credited Service for hours of work in Continuous Non-Covered Employment.
d. Exception: A Participant is not be entitled to Credited Service for the following periods:
(1) years preceding a Permanent Break in Service as defined in Subsection 6.06.a. for periods
prior to August 1, 1975.
(2) years preceding a Permanent Break in Service as defined in Subsections 6.06.c. and d.,
(except as may be required by any ERISA regulations.)
92
Section 6.04.
Benefit Units.
a. Benefit Units Earned before August 1, 1962
A Participant will receive one Benefit Unit (or portion of a Benefit Unit) for every Year of
Credited Service (or portion of a Year of Credited Service) to which he is entitled under
Section 6.02.
b. Benefit Units Earned Between August 1, 1962 and August 1, 1975
A Participant will receive Benefit Units for hours worked in Covered Employment during
a Plan Credit Year between August 1, 1962 and August 1, 1975, according to the following
schedule:
Hours Worked in
Plan Credit Year
Benefit Units
Less than 250 hours
250 to 499 hours
500 to 749 hours
750 to 999 hours
1,000 hours or more
None
.25
.50
.75
1.00
c. Benefit Units Earned Between August 1, 1975 and August 1, 1980, and for Periods Beginning
August 1, 1986.
the Plan Credit Years between August 1, 1975 and August 1, 1980 and for Plan Credit Years
beginning August 1, 1986, according to the following schedule:
Hours Worked in
Plan Credit Year
Benefit Units
Less than 500 hours
500 to 599 hours
600 to 699 hours
700 to 799 hours
800 to 899 hours
900 to 999 hours
1,000 hours or more
None
.50
.60
.70
.80
.90
1.00
d. Benefit Units Earned Between August 1, 1980 and August 1, 1986
the Plan Credit Years between August 1, 1980 and August 1, 1986, according to the following
schedule:
93
Hours Worked in
Plan Credit Year
Benefit Units
Less than 500 hours
500 to 599 hours
600 to 699 hours
700 to 799 hours
800 to 899 hours
900 to 999 hours
1,000 to 1,749 hours
1,750 hours or more
None
.50
.60
.70
.80
.90
1.00
1.50
e. If a Participant earns a Year of Credited Service in a Plan Credit Year a�er July 31, 1975, but
works less than 500 hours in Covered Employment, he will be credited with a portion of a
full Benefit Unit, in the ratio which his Worked Hours in Covered Employment bear to 2,000
hours.
f. Exception: A Participant is not entitled to Benefit Units for the following periods:
(1) for the period preceding a Permanent Break in Service as defined in Subsection 6.06.a. for
periods prior to August 1, 1975.
(2) for periods preceding a Permanent Break in Service as defined in Subsections 6.06.c. and d.
Section 6.05. Credited Service, Benefit Units and Accrued Benefits for Non-Working
Periods On or A�er August 1, 1962
a. Disability
Periods of absence from Covered Employment will be credited toward the accumulation of
Credited Service, Benefit Units and accrued benefits if these periods of absence are due to
the following circumstances:
(1) Disability for the period for which California UCD benefits were paid, or which constituted
a valid waiting period for those benefits.
(2) Disability for the period for which Workers’ Compensation Temporary disability benefits
were paid, or which constituted a valid waiting period for those benefits.
In order to secure credit for the periods of disability provided in this Subsection, a
Participant must furnish, in writing, information and proof concerning his disability as
the Board may, in its sole discretion, determine.
94
b. Military
Prior to December 12, 1994, periods of absence from Covered Employment due to service
in any of the Armed Forces of the United States will be credited toward the accumulation
of Credited Service, Benefit Units and accrued benefits at a rate determined by calculating
the Participant’s average number of hours worked per week during the 5 year period (or
less) immediately prior to entering the Armed Forces, for the period that the Participant
retains re-employment rights under federal law provided: (i) he makes himself available
for Covered Employment in the 46 Northern California Counties within 90 days a�er his
release from active duty, or within 90 days a�er recovery from a disability continuing a�er
his release from active duty, and (ii) he was employed in Covered Employment in the 46
Northern California Counties immediately prior to his service in the Armed Forces.
On and a�er December 12, 1994, periods of absence from Covered Employment due to
Qualified Military Service will be credited toward the accumulation of Credited Service,
Benefit Units and accrued benefits for periods of Qualified Military Service provided: (i)
the Participant makes himself available for Covered Employment within the period during
which he retains reemployment rights under USERRA, (ii) he was employed in Covered
Employment immediately prior to his Qualified Military Service, and (iii) he had not
incurred a One-Year Break in Service at the time he entered Qualified Military Service.
Credited Service, Benefit Units, and benefit accruals will be credited for Qualified Military
Service based on the average number of hours worked in a week by the Participant during
the twelve-month period immediately preceding his Military Service (or, if shorter, the
period of employment immediately preceding the period of Qualified Military Service), but
not less than the Participant’s average number of hours worked per week during the 5-year
period (or less) immediately prior to entering Military Service. Contributions for Qualified
Military Service will be credited as described in Section 1.17.
Section 6.06.
Breaks in Service.
If a person has a Break in Service before he has become a Vested Participant, it has the effect of
cancelling his participation, his previous Years of Credited Service and his Benefit Units. However,
a Break in Service may be temporary, subject to repair by sufficient amount of subsequent Credited
Service. A longer Break in Service may be permanent. The Break in Service rule does not apply to
a Pensioner or a Vested Participant.
a. Permanent Breaks in Service before August 1, 1975
Between the Contribution Date and July 31, 1975, a person incurred a Permanent Break in
Service and his Credited Service and accrued benefits were cancelled if he failed to earn at
least one quarter of Credited Future Service in any period of 2 consecutive Plan Credit Years.
Hours of work prior to August 1, 1975 for which employer contributions were made or were
required to be made to the Rock, Sand and Gravel Plan will be considered in determining
whether a Participant had a Permanent Break in Service before August 1, 1975.
95
Grace periods before August 1, 1975. A Participant who was absent from Covered Employment
before August 1, 1975 will be allowed grace periods under the following circumstances:
(1) A Participant will be allowed a grace period of up to 3 years for periods when he was
totally disabled for work as a laborer.
(2) A Participant will be allowed a grace period for the duration of his employment in
a supervisory capacity by a Contributing Employer or by a joint venture in which a
Contributing Employer participated.
(3) A Participant will be allowed a grace period for the duration of his employment as an officer
or full-time employee with a labor organization which is not a Contributing Employer.
A grace period does not add to a Participant’s Credited Service. It is a period which
is disregarded in determining whether the Participant has worked sufficient hours in
Covered Employment to prevent a Permanent Break in Service. In order to secure the
benefits of a grace period, a Participant must give wri�en notice to the Board and must
present wri�en evidence as the Board, in its sole discretion, requires.
b. One-Year Break in Service a�er July 31, 1975
(1) A person has a One-Year Break in Service in any Plan Credit Year a�er July 31, 1975 in
which he fails to work at least 435 hours in Covered Employment. Hours of work in
Continuous Non-Covered Employment a�er May 31, 1976 will be counted in determining
whether a Break in Service has been incurred.
Hours of work prior to January 1, 1979 for which Employer Contributions were made
or were required to be made to the Rock, Sand and Gravel Plan will be considered in
determining whether a Participant had a Permanent Break in Service.
(2) A One-Year Break in Service is repairable, in the sense that its effects are eliminated
if, before incurring a Permanent Break in Service, the Employee subsequently earns 2
quarters of Credited Service. More specifically, previously earned Years of Credited
Service and Benefit Units are restored. Nothing in this Subsection will change the effect
of a Permanent Break in Service.
c. Permanent Break in Service a�er July 31, 1975 and before August 1, 1985
A person will have a Permanent Break in Service if he had 2 consecutive One-Year Breaks in
Service, including at least one a�er July 31, 1975, that equal or exceed the number of full Years
of Credited Service which he had previously accumulated.
Exception: For retirements effective on or a�er March 1, 2005, whether a person incurs a
Permanent Break in Service under this Subsection 6.06.c. will take into account the total number
of Years of Credited Service (including partial years) previously accumulated.
96
d. A Permanent Break in Service a�er July 31, 1985
A person will have a Permanent Break in Service if he has consecutive One-Year Breaks in
Service, including at least one a�er July 31, 1985, that equal the greater of 5 or the aggregate
number of full Years of Credited Service which were previously accumulated.
The revisions to the Break in Service rules specified in this Subsection apply only to those
breaks which occur on or a�er August 1, 1985.
The foregoing rule will only apply to a Non-Bargained Employee who has at least one hour
of Service a�er May 31, 1989, if the Break in Service occurs before he has earned 5 Years of
Credited Service.
Exception: For retirements effective on or a�er March 1, 2005, whether a person incurs a
Permanent Break in Service under this Subsection 6.06.d. will take into account the total
number of Years of Credited Service (including partial years) previously accumulated.
e. Grace Periods a�er July 31, 1985
A Participant who is absent from Covered Employment a�er July 31, 1985, because of Maternity
or Paternity Leave will not incur a One-Year Break in Service for the period of that leave.
Maternity/Paternity Leave Defined. A Participant is deemed to be on Maternity or Paternity
Leave if the Participant is absent from work because of the pregnancy of the Participant, the
birth of a child of the Participant, the placement of a child with the Participant in connection
with the adoption of a child by the Participant, or for the purpose of caring for the child
during the period immediately following the birth or placement.
A grace period does not add to a Participant’s Credited Service. It is a period which is to be
disregarded in determining whether the Participant has worked sufficient hours in Covered
Employment to prevent a Permanent Break in Service. In order to secure the benefits of a
grace period, a Participant must give wri�en notice to the Board of the circumstances entitling
the Participant to the grace period, within 60 days a�er the occurrence of the circumstance,
and must present any wri�en evidence as the Board may require.
f. Effect of a Permanent Break in Service
If a person who has not achieved status as a Vested Participant has a Permanent Break in
Service:
(1) his previous Years of Credited Service and Benefit Units are cancelled; and
(2) his participation is cancelled. New participation is subject to the provisions of Section 2.04.
97
Section 6.07.
Separation from Covered Employment
a. A Participant will be deemed to be Separated from Covered Employment a�er August 1,
1975 at the end of any 2 consecutive Plan Credit Year periods in which he does not work at
least 435 hours in Covered Employment in at least one of those Plan Credit Years.
b. A Participant will be deemed to have Separated from Covered Employment before August 1,
1975 if he failed to earn one quarter of Credited Future Service in any period of 2 consecutive
Plan Credit Years.
c. Hours of work prior to January 1, 1979 for which contributions were made or were required
to be made to the Rock, Sand and Gravel Plan will be considered in determining whether a
Participant had a Separation from Covered Employment.
d. Exception. A Participant whose Annuity Starting Date is on or a�er September 1, 2000 will be
allowed a grace period if his failure to work at least 435 hours in Covered Employment in a
Plan Credit Year a�er August 1, 1975 is due to disability. The application for a grace period
is subject to the following conditions:
(1) The Participant must have:
(a) a�ained vested status prior to the Plan Credit Year for which the grace period first
applies; and
(b) worked at least 435 hours in Covered Employment in the Plan Credit Year preceding
the Plan Credit Year for which the grace period first applies.
(2) A grace period will not be applied to more than 5 Plan Credit Years for the same
disability.
(3) A Participant will be considered “disabled” if he is receiving either Workers’ Compensation
Benefits or Social Security Disability Benefits. However, a Participant will no longer be
considered disabled once he engages in any employment for wages or profit whether
within or outside of the Building and Construction Industry or Rock, Sand and Gravel
Industry.
A grace period does not add to a Participant’s Credited Service and benefit accrual;
it is a period which is to be disregarded in determining whether a Participant has
worked sufficient hours in Covered Employment to prevent a Separation from Covered
Employment. In order to secure the benefits of a grace period, a Participant must give
wri�en notice to the Board and must present wri�en evidence as the Board, in its sole
discretion, requires.
e. Periods of absence from Covered Employment due to Qualified Military Service will not
be counted in determining whether a Participant has incurred a Separation from Covered
Employment.
98
ARTICLE 7
HUSBAND-AND-WIFE PENSION
Section 7.01.
General
Upon retirement, the Husband-and-Wife Pension provides a lifetime pension for a married
Pensioner who meets the eligibility requirements for any type of Pension under the provisions
of Article 3 or 4, plus a lifetime pension for his surviving Spouse, starting a�er the death of the
Pensioner. In the event of death before retirement, the Husband-and-Wife Pension provides a
lifetime pension to the surviving Spouse of a married Participant who is vested in accordance with
Section 3.16.
a. The monthly amount to be paid to the surviving Spouse is 50%, 75% or 100% of the monthly
amount which was payable or would have been payable to the deceased Pensioner depending
on whether the Pensioner elected payment under the 50%, 75% or 100% Husband-and-Wife
Pension at retirement.
b. The monthly amount to be paid to the surviving Spouse of a Participant who dies prior to
retirement and satisfies the requirements of Section 7.04 will be 50% of the monthly amount
which would otherwise have been payable to the deceased Participant under the 50%
Husband-and-Wife Pension.
c. When a Husband-and-Wife Pension is in effect, the monthly amount of the Participant’s
Pension is reduced in accordance with the provisions of Section 7.05 from the full amount
otherwise payable.
d. For pensions effective on or a�er October 1, 1998, the monthly benefit payable as a Husbandand-Wife Pension will revert prospectively to the unreduced monthly amount of the
Pensioner’s regular monthly benefit in the event the Spouse predeceases the Pensioner, as
if the Husband-and-Wife Pension had not been elected. The full monthly benefit is then
payable for the lifetime of the Pensioner.
Section 7.02.
Annuity Starting Date
The provisions of this Article do not apply:
a. to a Pensioner, whose Annuity Starting Date was before January 1, 1985, or
b. to a Vested Participant who has not earned Hours Worked a�er August 22, 1984.
Section 7.03.
Upon Retirement
All pensions payable to a married Participant will be paid in the form of a 50% Husband-and-Wife
Pension, unless the Participant has filed with the Board, in writing, a timely election to waive that
form of pension, subject to all of the conditions of this Section.
99
a. No election will be effective unless the Spouse of the Participant has consented in writing to the
election; the election designates a Beneficiary (or form of benefits) which may not be changed
without spousal consent (or the consent of the Spouse expressly permits designations by the
Participant without any requirement of further consent by the Spouse); and acknowledges
the effect of the election, and consent is witnessed by an authorized Fund representative, or
a Notary Public. No consent is required if it has been established to the satisfaction of a Fund
representative that the consent may not be obtained because there is no Spouse or because
the Spouse cannot be located or because of other circumstances the Secretary of the Treasury
may, by regulation prescribe. Any consent by a Spouse (or establishment that the consent
of a Spouse may not be obtained) is effective only with respect to that Spouse. A Participant
may elect to waive the Husband-and-Wife Pension with the consent of his Spouse, and a
Participant may revoke this election at any time. A Participant and his Spouse are entitled
to exercise the right provided in this Section during a period of up to 90 days a�er they
have received a wri�en explanation of the terms and conditions of the Husband-and-Wife
Pension, their rights under this Section and the effect of the exercise of those rights.
b. The Board will provide to each Participant, no less than 30 days nor more than 90 days
before the Annuity Starting Date, a wri�en explanation of the terms and conditions of the
Husband-and-Wife Pension and the effect of the rejection of that pension. A Participant (with
any applicable spousal consent) may waive the requirement that the wri�en explanation
be provided at least 30 days before the Annuity Starting Date if the Participant’s pension
commences more than 7 days a�er the wri�en explanation is provided.
c. A Participant and his legal Spouse may elect to waive the Husband-and-Wife Pension (or
revoke a previous election) at any time not more than 90 days before the Annuity Starting
Date; that is, before the first day of the first month for which a pension is payable. However,
the election period ends 30 days a�er the date the wri�en explanation is provided, if the
wri�en explanation is provided a�er the Annuity Starting Date.
Section 7.04.
Death of an Eligible Participant Before Retirement Surviving Spouse Pension
a. If a Participant dies a�er achieving vested status, and has one or more Hours Worked a�er
August 22, 1984, the surviving Spouse will be entitled to a surviving Spouse Pension.
If the Participant’s death occurred a�er a�ainment of his earliest retirement age or if
the Participant was qualified for a Service Pension or was qualified for and had filed an
application for a Disability Pension in accordance with Section 9.01 of the Plan, the Spouse
will be paid a surviving Spouse Pension as if the Participant had retired on a 50% Husbandand-Wife Pension on the day before his death. If the Participant’s death occurred before
a�ainment of his earliest retirement age and the Participant was not qualified for a Service or
Disability Pension, the Spouse will be paid a surviving Spouse Pension beginning with the
month coincident with or following the date on which the Participant would have reached
his earliest retirement age had he lived, and the amount of the Pension will be determined
as if the Participant had le� Covered Employment on the date of death (or the date he last
worked in Covered Employment if earlier), retired on a 50% Husband-and-Wife Pension
upon reaching his earliest retirement age, and died on the last day of the month in which he
reached his earliest retirement age. For purposes of this Subsection, “earliest retirement age”
100
means age 55 if the Participant had at least 10 Years of Credited Service without a Permanent
Break in Service; otherwise “earliest retirement age” means age 65.
This Section also applies to an inactive Participant who has achieved vested status, had one
or more Hours of Service on or a�er September 2, 1974 and dies a�er August 22, 1984.
b. Notwithstanding any other provision of this Article, a surviving Spouse Pension will not
be paid in the form, manner or amount described above if one of the following alternatives
applies:
(1) If the Actuarial Present Value of the Benefit is $5,000 or less, the Board will make a single
sum payment to the Spouse in an amount equal to the Actuarial Present Value of the
pension, in full discharge of the surviving Spouse Pension.
(2) Subject to Subsection b.(3) below, the Spouse may elect, in writing, filed with the Board,
and on whatever form it may prescribe, to defer commencement of the surviving Spouse
Pension until anytime a�er the death of the Participant. Payments will begin as of the
surviving Spouse’s Annuity Starting Date. The amount payable at that time will be
determined as described in the Subsection above, except that the benefit will be paid
in accordance with the terms of the Plan in effect when the Participant last worked in
Covered Employment, as if the Participant had retired with a 50% Husband-and-Wife
Pension on the day before the surviving Spouse’s payments are scheduled to start, and
died the next day.
(3) Payment of the surviving Spouse Pension must start by no later than December 1 of the
calendar year in which the Participant would have reached age 70 ½ or, if later, December
1 of the calendar year following the year of the Participant’s death. If the Board confirms
the identity and whereabouts of a surviving Spouse who has not applied for benefits by
that time, payments to that surviving Spouse in the form of a single life annuity (subject
to the provisions of Subsection 7.04.b.(1)) will begin automatically as of that date.
c. Notwithstanding any other provisions of the Plan, if the Annuity Starting Date for the
surviving Spouse Pension is a�er the Participant’s earliest retirement date, the benefit will
be determined as if the Participant had died on the surviving Spouse’s Annuity Starting
Date a�er retiring with a Husband-and-Wife Pension the day before, taking into account
any actuarial adjustments to the Participant’s accrued benefit that would have applied as of
that date.
d. If a surviving Spouse dies before the Annuity Starting Date of the surviving Spouse Pension,
the benefit will be forfeited and there will be no payments to any other party.
101
Section 7.05.
Adjustment of Pension Amount
a. For a Participant who is eligible for a Regular, Early or Service Pension, the Husband-andWife Pension will be 88% of the amount determined in Section 3.03, 3.05, or 3.15, whichever
is appropriate, if the Participant and Spouse are the same age. The factor will be increased
by 0.4 percentage point for each year the Spouse is older than the Participant, subject to a
maximum factor of 99%; or decreased by 0.4 percentage point for each year the Spouse is
younger than the Participant.
For a Participant who is eligible for a Service Pension, the factor determined in the paragraph
above will be increased by 5.0 percentage points if the Participant is age 45. The factor will
be reduced by 0.5 percentage point for each year the Participant is older than age 45, but
younger than age 55; or increased by 0.5 percentage point for each year the Participant is
younger than age 45. This increase, when determined and added to the adjustment factor
above, cannot exceed 99%.
b. For a Participant who is eligible for a Disability Pension, the Husband-and-Wife Pension
will be 77.5% of the amount determined from Section 3.07, if the Participant and Spouse
are the same age. The factor will be increased by 0.4 percentage point for each year the
Spouse is older than the Participant, subject to a maximum factor of 99%; or decreased by 0.4
percentage point for each year that the Spouse is younger than the Participant.
The factor determined in the paragraph above will be increased by 2.5 percentage points if
the Participant is age 45. The factor will be reduced by 0.25 percentage point for each year
the Participant is older than age 45, but younger than age 55; or increased by 0.75 percentage
point for each year younger than age 45. This increase when added to the adjustment factor
above cannot exceed 99%.
Section 7.06.
Optional 75% and 100% Husband-and-Wife Pension
In lieu of any other form of pension otherwise payable to him, a married Participant entitled to a
Regular, Early Retirement, Service or Disability Pension with an Annuity Starting Date on or a�er
March 1, 2001 may elect to receive the payment of his pension on the basis of either a 75% or 100%
Husband-and-Wife Pension. Under either the 75% or 100% Husband-and-Wife Pension, he will
receive a lower monthly amount with the provision that 75% or 100%, as the case may be, of that
lower amount is continued a�er his death for the lifetime of his Spouse. The amount payable to the
Participant who has elected one of these optional payment forms will be determined as follows:
a.
(1) For a Participant who is eligible for a Regular, Early Retirement or Service Pension, the
75% Husband-and-Wife Pension will be 83.5% of the amount determined in Section 3.03,
3.05, or 3.15, whichever is appropriate, if the Participant and Spouse are the same age.
The factor will be increased by 0.5 percentage point for each full year the Spouse is older
than the Participant, subject to a maximum factor of 99%, or decreased by 0.5 percentage
point for each full year the Spouse is younger than the Participant.
102
For a Participant who is eligible for a Service Pension, the factor determined in the
paragraph above will be increased by 5.0 percentage points if the Participant is age 45.
The factor will be reduced by 0.5 percentage point for each year the Participant is older
than age 45; or increased by 0.5 percentage point for each year he is younger than age 45.
This increase, when added to the adjustment factor above, cannot exceed 99%.
(2) For a Participant who is eligible for a Disability Pension, the 75% Husband-and-Wife
Pension will be 70.5% of the amount determined from Section 3.07, if the Participant and
Spouse are the same age. The factor will be increased by 0.5 percentage point for each
full year the Spouse is older than the Participant, subject to a maximum factor of 99%,
or decreased by 0.5 percentage point for each full year the Spouse is younger than the
Participant.
The factor determined in the paragraph above will be increased by 2.5 percentage points
if the Participant is age 45. The factor will be reduced by .25 percentage point for each
year the Participant is older than age 45; or increased by .75 percentage point for each
year he is younger than age 45. This increase, when added to the adjustment factor above,
cannot exceed 99%.
b.
100% Husband-and-Pension
(1) For a Participant who is eligible for a Regular, Early Retirement or Service Pension, the
100% Husband-and-Wife Pension will be 79% of the amount determined from Section
3.03, 3.05, or 3.15, whichever is appropriate, if the Participant and Spouse are the same
age. The factor will be increased by 0.6 percentage point for each full year the Spouse
is older than the Participant, subject to a maximum factor of 99%, or decreased by 0.6
percentage point for each full year the Spouse is younger than the Participant.
For a Participant who is eligible for a Service Pension, the factor determined in the
paragraph above will be increased by 5.0 percentage points if the Participant is age 45.
The factor will be reduced by 0.5 percentage point for each year the Participant is older
than age 45; or increased by 0.5 percentage point for each year he is younger than age 45.
This increase, when added to the adjustment factor above, cannot exceed 99%.
(2) For a Participant who is eligible for a Disability Pension, the 100% Husband-and-Wife
Pension will be 68% of the amount determined from Section 3.07, if the Participant and
Spouse are the same age. The factor will be increased by 0.6 percentage point for each
full year the Spouse is older than the Participant, subject to a maximum factor of 99%,
or decreased by 0.6 percentage point for each full year the Spouse is younger than the
Participant.
The factor determined in the paragraph above will be increased by 2.5 percentage points
if the Participant is age 45. The factor will be reduced by .25 percentage point for each
year the Participant is older than age 45; or increased by .75 percentage point for each
year he is younger than age 45, This increase, when added to the adjustment factor above,
cannot exceed 99%.
103
Section 7.07.
Additional Conditions
A Husband-and-Wife Pension is not effective under any of the following circumstances:
a. A Husband-and-Wife Pension is not effective unless the surviving Spouse was married to
the Participant throughout the year preceding the Participant’s death.
b. A Husband-and-Wife Pension is not effective unless the Pensioner and Spouse were married
to each other on the Annuity Starting Date of the Participant’s pension, and for at least a one
year period any time before the Pensioner’s death.
c. Subject to the requirements for documentation described in Section 7.03, the Participant
must file, before his Annuity Starting Date, a wri�en representation, on which the Board
or other Plan Representative is entitled to rely, concerning that Participant’s marital status
which, if false, gives the Board the discretionary right to adjust the dollar amount of the
pension payments made to the alleged surviving Spouse so as to recoup any excess benefits
which may have been paid in error.
d. An effective election to waive the Husband-and-Wife Pension or a revocation of that election
must be:
(1) made (or revoked) prior to the Annuity Starting Date;
(2) made on forms furnished by the Trust Fund Office; and
(3) filed with the Trust Fund Office.
e. A Husband-and-Wife Pension, once payable, may not be revoked or the Pensioner’s benefits
increased, because of the subsequent divorce of the Spouse from the Pensioner or the Spouse
predeceasing the Pensioner, except as provided in Subsection 7.01.d.
f. The rights of a former Spouse or other alternate payee to any share of a Participant’s pension,
as set forth under a qualified Domestic Relations Order, will take precedence over any claims
of the Participant’s Spouse at the time of retirement or death, to the extent provided by a
Domestic Relations Order or by any law of the United States.
g. Notwithstanding any other provisions of the Plan, a waiver of the Husband-and-Wife
Pension is not effective if given more than 90 days before the Annuity Starting Date.
104
Section 7.08.
Spousal Consent Not Necessary
a. Notwithstanding any other provisions of the Plan, spousal consent in accordance with
Section 7.03 is not required if the Participant establishes to the satisfaction of the Trustees
that:
(1) there is no Spouse,
(2) the Spouse cannot be located,
(3) the Participant and Spouse are legally separated, or
(4) the Participant has been abandoned by the Spouse as confirmed by court order.
b. If the Spouse is legally incompetent, consent under Section 7.03 may be given by his or her
legal guardian, including the Participant if authorized to act as the Spouse’s legal guardian.
Section 7.09.
Survivor Benefit Limitations.
Notwithstanding any provision to the contrary, all survivor benefits described in this Article 7
must comply with the requirements of Internal Revenue Code Section §401(a)(9) and the incidental
benefit rule of the regulations prescribed under them, including proposed Treas. Reg. 1.401(a)(9)-1
and 1.401(a)(9)-2.
105
ARTICLE 8
DEATH BENEFITS
Section 8.01.
Pre-Retirement Death Benefits
Upon the death of a Participant, where there is no living Spouse, 36 monthly payments will be
made to the Participant’s surviving children younger than 21 years of age, if any, in an amount
determined in the same manner as a Regular Pension if the Participant meets the following
requirements:
a. He has actually worked at least 435 hours for which contributions were made to this Plan or
to a Related Plan in at least one of the 2 consecutive Plan Credit Years prior to the Plan Credit
Year in which he dies; and
b. He has accumulated at least (i) 5 Years of Credited Service, (excluding any Credited Future
Service earned as a result of work in Continuous Non-Covered Employment), or (ii) at least
5 Years of Combined Credited Service, as defined in Section 4.05, and a Related Plan under
which he has earned Related Credit that makes provision for a Pre-Retirement Death Benefit
(or its equivalent, regardless of what it is named), whether or not the eligibility requirements
for that Death Benefit have been met.
The payments will cease when all children younger than 21 years of age have died, or a�er 36
monthly payments have been made, whichever occurs first. However, the total value of any
pension payments received by the deceased Participant during a previous period of retirement
will be deducted from the total value of the 36 monthly payments otherwise due the deceased
Participant’s children younger than 21 years of age.
The Board, in its sole discretion, will make payment in any form and on any terms and conditions
it determines appropriate.
Section 8.02.
Five-Year Guarantee Option
a. In lieu of other pension options, a Participant may elect to receive a lifetime pension with
payments guaranteed for 5 years. Under this option, if the Participant dies before receiving
60 pension payments, payments will continue to his Beneficiary until a total of 60 payments
have been made to the Pensioner and his Beneficiary. The amount of the pension payable
under this option will be determined according to (1) or (2) below, whichever is applicable.
(1) For a Participant who is retiring on a Regular, Early Retirement, or Service Pension, the
monthly pension will be 97% of the amount determined in Section 3.03, 3.05 or 3.15,
whichever is appropriate, if the Participant is age 65. The factor will be increased by
0.2 percentage point for each year the Participant is younger than age 65, subject to a
maximum of 99%; or decreased by 0.4 percentage point for each year the Participant is
older than age 65.
106
(2) For a Participant who is retiring on a Disability Pension, the monthly pension will be
95% of the amount determined in Section 3.07, if the Participant is age 55. The factor will
be increased by 0.17 percentage point for each year the Participant is younger than 55; or
decreased by 0.3 percentage point for each year the Participant is older than age 55.
b. Election and Revocation
(1) Election of the Five-Year Guarantee Option must be made in writing in a form prescribed
by the Board and filed with the Board prior to the date the first pension payment is
made.
(2) The Five-Year Guarantee Option may be revoked if the revocation is made in writing
on a form prescribed by the Board and filed with the Board prior to the date the first
pension payment is made.
c. Beneficiary
(1) A Pensioner may designate a Beneficiary to receive any payments due under this Option
by filing that designation with the Board on a form acceptable to the Board. Except as
provided in Subsection c.(3) below, a Pensioner has the right to change his Beneficiary
without the consent of the Beneficiary, but no change will be effective or binding on the
Trust Fund unless it is received by the Board prior to the time any payments are made to
the Beneficiary whose designation is on file with the Board.
(2) If the designated Beneficiary is not alive at the time any payment under this Option is
due, benefits provided under this Option will be paid to any person who is an object of
natural bounty of the Pensioner, or to his estate, as set forth in Section 9.16.
(3) A married Pensioner who designates or has designated anyone other than his Spouse as
Beneficiary is required to obtain his Spouse’s consent to that designation or any change
in the designation, in writing, in a form prescribed by the Board and witnessed by an
authorized Fund representative or a Notary Public.
Section 8.03.
Pensioner’s Lump-Sum Death Benefit
If a pensioner dies on or a�er January 1, 1997, a Pensioner’s Lump-Sum Death Benefit will be
paid to his surviving Spouse in an amount equal to $100.00 for each full Benefit Unit, plus a
proportionate part of $100.00 for any fraction of a Benefit Unit, that the Pensioner had earned
under the Plan on the date of his retirement.
If there is no surviving Spouse on the date of the Pensioner’s death, the Lump-Sum Death Benefit
will be paid to one or more of the Pensioner’s relatives in the following order: child(ren), parent(s),
sibling(s).
If the Pensioner is not survived by any of the preceding relatives, the Trust Fund will reimburse
the individual responsible for the Pensioner’s funeral expenses to the extent that the expenses do
not exceed the amount of the Lump-Sum Death Benefit. Any portion of the Lump-Sum Death
Benefit remaining will be payable to the estate of the Pensioner.
107
If a Lump-Sum Death Benefit is not payable under any of the above circumstances, it will be
payable to the estate of the Pensioner.
Effective January 1, 2005, a Pensioner’s Lump Sum Death Benefit will also be payable to a Participant
who has filed an application for a Pension in accordance with Section 9.01 of the Plan, but dies
prior to his Annuity Starting Date.
108
ARTICLE 9
APPLICATIONS, BENEFIT PAYMENTS AND RETIREMENT
Section 9.01.
Applications
a. A pension must be applied for in writing on a form and in the manner prescribed by the
Board. The application must be filed with the Board in advance of the Annuity Starting
Date. Except as provided in Section 9.05, a pension is payable the first of the month a�er the
month in which the application is filed, if the Participant is otherwise eligible.
An application for a Disability Pension is considered timely if the Social Security Disability
Benefit entitlement notice, or its equivalent, is filed with the Board no later than 60 days a�er
the date of the notice. The payment of the Disability Pension will begin with the seventh
month of disability.
In the event that an applicant for a Disability Pension is not mentally competent to handle his
affairs at the time of his entitlement to a Social Security Disability Benefit or its equivalent,
the Board, in its sole discretion, may waive the advance filing requirements set forth in the
above paragraph and the applicant’s Disability Pension may be made effective on the first of
the month following the completion of all of the requirements for a Disability Pension, other
than the requirement for advance filing.
b. If a Pensioner submits evidence of entitlement to additional Benefit Units, his increased
pension, if any, will become effective:
(1) retroactively to the effective date of his pension, if his application for additional Benefit
Units was filed within one year a�er the first pension payment was made to him, or
(2) the first of the month following the date the application for additional Benefit Units was
made, if it was filed more than one year a�er the first pension payment was made to
him.
c. If a Participant previously denied a pension submits evidence of entitlement to additional
Credited Service and/or Benefit Units which subsequently qualifies him for a pension, his
pension will become effective:
(1) retroactively to the date determined under Subsection a. above, if the evidence of
additional Credited Service and/or Benefit Units was submi�ed within one year a�er he
was advised of the denial of a pension.
(2) on the first of the month following submission of the evidence of additional Benefit
Units, if it was filed more than one year a�er he was advised of the denial of a pension.
d. An application for a Pre-Retirement Death Benefit must be made in writing on a form and
in the manner prescribed by the Board.
109
Section 9.02.
Information Required
Each Participant, Pensioner or any other claimant must furnish to the Board any information or
proof requested by it and reasonably required to administer the Pension Plan. Failure on the part
of any Participant, Pensioner or claimant to comply with this request promptly, completely and
in good faith will be sufficient grounds for denying, suspending or discontinuing benefits to that
person. If a Participant, Pensioner or other claimant makes a false statement material to his claim,
the Board has the right to recoup, offset or recover the amount of any payments made in reliance on
that false statement in excess of the amount to which the Participant, Pensioner or other claimant
was rightfully entitled under the provisions of this Plan.
Section 9.03.
Action of Board of Trustees
The Board of Trustees is, subject to the requirements of the law, the sole judge of the standard of
proof required in any case. The application and interpretation of this Plan, and any decisions of
the Board of Trustees are final and binding on all parties, subject only to judicial review as may be
in harmony with federal labor law.
Section 9.04.
Right of Appeal and Determination of Disputes
a. No Participant, Pensioner, Beneficiary or other person has any right or claim to benefits
under the Pension Plan, or any right or claim to payments from the Trust Fund, other than
as specified in the Plan. Any dispute as to eligibility, type, amount or duration of benefits
or any right or claim to payments from the Trust Fund will be resolved by the Board under
the Pension Plan provisions, and its decision of the dispute, right or claim will be final and
binding on all parties, subject only to any civil action under §502(a) of ERISA, including
the petitioner and any person claiming under the petitioner provided, that no legal action
may be commenced or maintained against the Plan more than 90 days a�er the Board of
Trustees’ decision upon review. The provisions of this Section shall apply to and include
any and every claim to benefits from the Trust Fund, and any claim or right asserted under
the Pension Plan or against the Trust Fund, regardless of the basis asserted by the claim and
regardless of when the act or omission upon which the claim is based occurred.
b. Denial of Benefits
(1) Non-Disability Benefits and Disability Benefits determined under Sections 3.08 (based
on a Social Security Disability Benefit), Subsections 6.05.a.(1), 6.05.a.(2), and 6.07.d. If
an application for benefits is denied in whole or in part by the Trust Fund Office (acting
for the Board of Trustees), the applicant will be notified of the denial, in writing, within
a reasonable period of time but not later than 90 days a�er receipt of the application
unless the Trust Fund Office determines that special circumstances require an extension
of time for processing the application. In that case, a wri�en notice of the extension will
be furnished to the applicant prior to the end of the 90 day period. In no event will
the extension exceed a period of 90 days from the end of the initial 90 day period. The
extension notice will indicate the special circumstances requiring an extension of time
and the date by which the plan expects to render a decision.
110
(2) Disability Benefits determined under Sections 3.08 and 6.06.a.(1) (based on medical
evidence). If an application for disability benefits under Sections 3.08 or 6.06.a.(1) (based
on medical evidence) is denied by the Trust Fund Office (acting for the Board of Trustees),
the applicant will be notified of the denial, in writing, within a reasonable period of time
but not later than 45 days a�er receipt of the application for disability benefits. This 45
day period may be extended for up to an additional 30 days, provided that the Trust
Fund Office determines that such an extension is necessary due to ma�ers beyond the
control of the Plan and notifies the applicant, prior to the end of the initial 45 day period,
in writing, of the extension and the circumstances requiring the extension of time and
the date by which the Plan expects to render a decision. If prior to the end of the first 30
day extension period, the Trust Fund Office determines that, due to ma�ers beyond the
control of the Plan, a decision cannot be made within the extension period, the period
for making the decision may be extended for up to an additional 30 days, provided that
the Trust Fund Office notifies the applicant, prior to the end of the first 30 day extension
period, of the circumstances requiring the extension and the date as of which the Plan
expects to make a decision. In the case of any extension under this subsection, the
notice will be in writing and will specifically explain the Plan provisions on which the
entitlement to disability benefits is based, the unresolved issues that prevent a decision,
and the additional information needed to resolve those issues; and the applicant will be
given at least 45 days within which to provide the specified information.
The period of time within which a benefit determination is required to be made will begin
at the time an application for benefits is filed with the Trust Fund Office without regard to
whether all the information necessary to make a benefit determination accompanies the
filing.
In the event that a period of time is extended, as permi�ed above, due to an applicant’s
failure to submit information necessary to make a determination, the period for making
the benefit determination will be suspended starting on the date notification of the
extension is sent to the applicant until the date on which the applicant responds to the
request for additional information.
c. Notification of Denial of Benefits
The wri�en notification of the benefit denial will be set forth, in a manner calculated to be
understood by the applicant:
(1) All specific reason(s) for the adverse determination;
(2) Reference to all specific Plan provision(s) on which the denial is based;
(3) A description of any additional material or information necessary for the applicant to
perfect the claim and an explanation of why such material or information is necessary;
(4) A description of the Plan’s review procedures and the time limits applicable to those
procedures, including a statement of the applicant’s right to bring a civil action under
§502(a) of ERISA following an adverse benefit determination on review.
111
In addition to the above, for a claim for disability benefits under Sections 3.08 or 6.06.a.(1)
(based on medical evidence), the wri�en notification of the benefit denial will include
the specific rule, guideline, protocol or other similar criterion relied upon in making the
adverse determination.
d. Right to Appeal
Any person whose application for benefits under this Plan has been denied in whole or in
part by the Board of Trustees, or whose claim to benefits is otherwise denied by the Board
of Trustees, may petition the Board of Trustees to reconsider its decision. A petition for
reconsideration:
(1) Must be in writing; and
(2) Must state in clear and concise terms the reason(s) for disagreement with the decision of
the Board of Trustees; and
(3) May include documents, records, and other information related to the claim for benefits;
and
(4) Must be filed by the petitioner or the petitioner’s duly authorized representative with
or received by the Trust Fund Office within sixty (60) days a�er the date the notice of
denial was received by the petitioner. In the case of a claim for disability benefits under
Sections 3.08 or 6.06.a.(1) (based on medical evidence), the petitioner or the petitioner’s
duly authorized representative must file his or her petition for reconsideration within
one hundred eighty (180) days a�er the date the notice of denial was received by the
petitioner.
Upon good cause shown, the Board of Trustees may permit the petition to be amended
or supplemented. The failure to file a petition for reconsideration within sixty (60) day
period (one hundred eighty (180) day period for disability benefits under Sections 3.08
or 6.06.a.(1) (based on medical evidence)) constitutes a waiver of the petitioner’s right to
reconsideration of the decision. The failure to file an appeal will not, however, preclude
the petitioner from establishing his or her entitlement at a later date based on additional
information and evidence that was not available to him or her at the time of the decision
of the Board of Trustees.
Upon request, the petitioner or the petitioner’s duly authorized representative will be
provided, free of charge, reasonable access to, and copies of, all documents, records and
other information relevant to the petitioner’s claim for benefits. A document, record or
other information is considered relevant to a petitioner’s claim if it was relied upon in
making the benefit determination; was submi�ed, considered or generated in the course
of making the benefit determination, without regard to whether it was relied upon in
making the benefit determination; demonstrates that the benefit determination was
made in accordance with the Plan provisions and that the Plan provisions have been
applied consistently with respect to similarly situated claims; or , in regards to disability
benefits under Sections 3.08 or 6.06.a.(1) (based on medical evidence), constitutes the
Plan’s policy or guidance with respect to the benefit denial (whether or not it was relied
upon in making the benefit determination) and other relevant information.
112
The review of the determination will take into account all comments, documents,
records, and other information submi�ed by the claimant relating to the claim without
regard to whether the information was submi�ed or considered in the initial benefit
determination.
In the case of a disability determination under Sections 3.08 or 6.06.a.(1) (based on
medical evidence), the petitioner will have access to relevant documents, records and
other information relevant to the petitioner’s claim, including any statement of policy or
guidance with respect to the Plan concerning the denial of disability benefits, without
regard to whether that advice or statement was relied upon in making the benefit
determination. The Board of Trustees will not give any deference to the initial benefit
determination. If the adverse benefit determination is based in whole or in part on a
medical judgment, the Board of Trustees will consult with a health care professional
with appropriate training and experience in the field of medicine involved in the medical
judgment. The consultant will be independent of any individual consulted in connection
with the initial determination and will not be the subordinate of any the first consultant.
Relevant information also includes identification of any medical or vocational expert
whose advice was obtained on behalf of the Plan in connection with the adverse benefit
determination, without regard to whether the advice was relied upon in making the
benefit decision.
e. Review of Appeal
A benefit determination on review will be made by the Trustees or by a commi�ee
designated by them no later than the date of the quarterly meeting of the Board of Trustees
that immediately follows the Plan’s receipt of the request for review unless the request for
review is filed within thirty (30) days preceding the date of the meeting. In which case, a
benefit determination will be made no later than the date of the second meeting following
the Trust Fund Office’s receipt of the request for review. If special circumstances require a
further extension of time for processing, a benefit determination will be rendered no later
than the third meeting following the Trust Fund Office’s receipt of the request for review
and the Board of Trustees will provide the petitioner with a wri�en notice of the extension,
describing the special circumstances and the date by which the benefit determination will
be made, prior to the commencement of the extension. The Board of Trustees will notify the
petitioner of the benefit determination as soon as possible but not later than 5 calendar days
a�er the benefit determination is made.
The notification of a benefit determination upon review will be in writing and will include the
reason(s) for the determination, including references to the specific Plan provisions on which
the determination is based. It will also include a statement that the petitioner 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 claim for benefits. The notification of a benefit
determination in regards to disability benefits under either Sections 3.08 or 6.06.a.(1) (based
on medical evidence) will include the above, along with the specific rule, guideline, protocol
or other similar criterion relied upon in making the adverse determination.
The period of time within which a benefit determination review is required to be made by
113
the Trustees or by a commi�ee designated by them will begin at the time the request for the
benefit determination review is filed with the Trust Fund Office without regard to whether all
the information necessary to make a benefit determination review accompanies the filing.
In the event that the period for the benefit determination review is extended due to a
petitioner’s failure to submit information necessary to make a determination, the period
for making the benefit determination review will be suspended from the date on which the
notification of the extension is sent to the petitioner until the date on which the petitioner
responds to the request for additional information.
The denial of a claim to which the right to review has been waived, or the decision of the
Board of Trustees or its designated commi�ee with respect to a petition for review, is final
and binding upon all parties, subject only to any civil action the applicant may bring under
§502(a) of ERISA. Following issuance of a wri�en decision of the Board of Trustees on an
appeal, there is no further right of appeal to the Board of Trustees or right to arbitration.
However, a petitioner may re-establish his or her entitlement to benefits at a later date based
on additional information and evidence which was not available to him or her at the time of
the decision of the Board of Trustees.
Section 9.05.
Benefit Payments Generally
A Participant who is eligible to receive a pension benefit under this Plan and who makes application
in accordance with the rules of this Pension Plan is entitled upon retirement to receive the monthly
pension benefits provided for the remainder of his life, subject to the provisions of this Plan. Benefit
payments will begin on the first day of the month following the month in which the Participant
has fulfilled all the conditions of entitlement to benefits. The first day of that month is the Annuity
Starting Date as that term is defined in Section 1.03.
Unless the Participant elects otherwise, the payment of benefits will begin no later than the 60th
day a�er the later of the close of the Plan Year in which:
a. the Participant a�ains Normal Retirement Age, or
b. the Participant terminates his Covered Employment and retires, as that term is defined in
Section 9.11.
A Participant may, however, elect in writing and file with the Board to receive benefits payable for
a later month, provided that this election does not postpone the commencement of benefits to a
date later than the Required Beginning Date.
Pension payments to the Pensioner will not be made in a form other than equal monthly installments
for the Pensioner’s lifetime, except as provided in Section 9.09, or to effect (1) retroactive adjustments
including recoupment of overpayments or (2) increases in the monthly pension amount applicable
to all Pensioners in a specified class.
Pension payments to the Participant’s Beneficiary who is not his surviving Spouse, which become
payable on account of the Participant’s death will begin no later than one year from the date of
death or, if later, as soon as practicable a�er the Board learns of the death.
114
Pension payments will end with the payment for the month in which the death of the Pensioner
occurs except as provided in accordance with the Husband-and-Wife Pension or, if applicable,
upon the completion of the guaranteed payments provided for in Section 8.02.
If a Participant or Beneficiary cannot be found a�er a period of 4 years from the date on which a
benefit becomes payable to him, that benefit will be forfeited and will go to and be retained by
the Trust Fund, unless the Plan has been terminated prior to the date on which the benefit would
become forfeitable in accordance with this provision. However, if a Participant or Beneficiary
subsequently makes a claim for the forfeited benefit, the benefit will again be payable to the
Participant or Beneficiary.
In the event that there are conflicting claims to a benefit payable under the terms of the Plan,
the Board may interplead the claimants by appropriate proceedings in a court of competent
jurisdiction. In this event, the provisions of Section 9.04 do not apply and the claimants must
submit their respective claims to the court in which the interpleader proceedings are pending.
Upon deposit with the court of the accrued benefits, the Board will be entitled to be dismissed
from the interpleader proceedings and entitled to payment of its costs in connection with the
proceeding, including reasonable a�orney’s fees. Therea�er, a final decision of the court in the
proceedings will bind all claimants and constitute a full discharge of the Board and the Trust Fund
from any liability for benefits.
Section 9.06.
Mandatory Commencement of Benefits
a. Notwithstanding any provision of the Plan to the contrary, effective April 1, 1990, the Trust
Fund will begin benefit payments to all Participants by their Required Beginning Dates,
whether or not they apply for benefits.
b. If a Participant fails to file a completed application for benefits on a timely basis, and his
whereabouts are known to the Trust Fund, the Trust Fund will establish the Participant’s
Required Beginning Date as the Annuity Starting Date and begin benefit payments as follows:
(1) If the Actuarial Value of the Participant’s benefit (determined in accordance with Section
9.09, on small benefit cashouts) is no more than $5,000, in a single-sum payment.
(2) In any other case, in the form of a Husband-and-Wife Pension calculated on the
assumptions that the Participant is and has been married for at least one year by the date
payments start and that the husband is 3 years older than the wife.
(3) The benefit payment form specified here will be irrevocable once it begins, with the sole
exception that it may be changed to a single-life annuity if the Participant proves that
he did not have a qualified Spouse (including an alternate payee under a QDRO) on the
Required Beginning Date; also, the amount of future benefits will be adjusted based on
the actual age difference between the Participant and Spouse if proven to be different
from the foregoing assumptions.
(4) Federal, state and local income tax, and any other applicable tax, will be withheld from
the benefit payments as required by law or determined by the Board to be appropriate
for the protection of the Board and the Participant.
115
Section 9.07.
Benefits Accrued A�er Retirement
a. Before Normal Retirement Age
Effective as of June 1, 1989, additional benefits earned by a Participant in Covered
Employment before Normal Retirement Age will be determined as of the Participant’s new
Annuity Starting Date, unaffected by previously suspended pension benefits which may be
resumed in accordance with Section 9.13.
b. A�er Normal Retirement Age
As of June 1, 1989, any additional benefits earned by a Participant in Covered Employment
a�er Normal Retirement Age will be determined at the end of each Plan Credit Year and will
be payable as of February 1, following the end of the Plan Credit Year in which it accrued,
provided payment of benefits at that time is not suspended pursuant to Section 9.12 or
postponed due to the Participant’s continued employment.
Additional benefits that are not suspended or postponed will be paid in the payment form
in effect for the Participant as of the Annuity Starting Date most recently preceding the date
the additional benefits became payable, if the Annuity Starting Date had been established
a�er Normal Retirement Age; otherwise the additional benefits will be determined as of the
Participant’s new Annuity Starting Date.
Section 9.08.
Actuarial Adjustment for Delayed Retirement
a. As of June 1, 1989, if a Participant’s initial Annuity Starting Date is a�er the Participant’s Normal
Retirement Age, the monthly benefit will be the accrued benefit at Normal Retirement Age,
actuarially increased for each complete calendar month between Normal Retirement Age,
and the Annuity Starting Date for which benefits were not suspended, and then converted as
of the Annuity Starting Date to the benefit payment form elected in the pension application
of the Participant, or to the automatic form of Husband-and-Wife Pension if the Participant
is married.
b. If a Participant becomes entitled to additional benefits a�er Normal Retirement Age,
whether through additional service or because of a benefit increase, the actuarial increase in
those benefits will start from the date they would first have been paid rather than Normal
Retirement Age.
c. The actuarial increase will be 1.00% per month for each month a�er Normal Retirement Age
(or a later date as may be determined in Subsection b. above) until age 70 and 1.50% per
month therea�er until the Participant’s Required Beginning Date.
d. Notwithstanding the above, instead of an actuarially increased benefit, a Participant may
choose to receive at his Annuity Starting Date:
(1) a monthly benefit equal to his accrued benefit at Normal Retirement Age, adjusted
to include any additional benefits to which he becomes entitled to a�er his Normal
Retirement Age and before his Annuity Starting Date as described in Subsection b. above,
plus
116
(2) a one-time cash payment equal to the total of the amounts payable for the months
between his Normal Retirement Age and his Annuity Starting Date for which benefits
are not suspended.
Section 9.09.
Lump-Sum Payment in Lieu of Monthly Benefit
If at the time a monthly benefit becomes payable to a Participant or surviving Spouse and the
Actuarial Present Value of the monthly benefit is $5,000 or less, the Board will pay to the Participant
or surviving Spouse in a lump-sum the amount of the Actuarial Present Value, in lieu of a monthly
benefit.
For purposes of this Section, Actuarial Present Value will be determined in accordance with Section
1.01, except that the following procedure will apply to benefits payable to a Participant or Spouse
if it results in a larger lump-sum amount:
a. For a Participant who is eligible for a Regular, Early, Service or Deferred Vested Pension,
the lump-sum amount will be $119.00 for each $1.00 of Pension if the Participant is age 60.
The factor is increased by $.18 for each month the Participant is younger than age 60; or
decreased by $.21 for each month the Participant is older than age 60.
b. For a Participant who is eligible for a Disability Pension, the lump-sum amount will be
$97.00 for each $1.00 of Pension if the Participant is age 45. The factor is increased by $.04 for
each month the Participant is younger than age 45; or decreased by $.12 for each month the
Participant is older than age 45.
In no event will the amount determined under this Section on or a�er June 1, 2000 be less than the
value that would be determined using the legally required assumptions regarding life expectancy
and interest rate as reflected in the Retirement Protection Act of 1994, Pub. L. 103-465 and Treas.
Reg. 1.417(d)-1T.
Notwithstanding any other Plan provisions to the contrary, for distributions with Annuity Starting
Dates on or a�er January 1, 2003, any reference in the Plan to the “applicable mortality table” or
mortality tables reflected in the Retirement Protection Act of 1994 will be construed as a reference
to the mortality table prescribed in Revenue Ruling 2001-62 for all purposes under the Plan.
Section 9.10.
Rounding of Benefit Amount
If the amount of any monthly benefit payable under the Plan is not a multiple of $0.50, the amount
will be rounded up to the next multiple of $0.50.
Section 9.11.
Retirement.
To be deemed retired before he has a�ained Normal Retirement Age, a Pensioner must
withdraw completely and refrain from engaging in employment prohibited by the Plan.
Prohibited employment includes:
117
(1) any employment covered by the Collective Bargaining Agreement with the Union or an
affiliated local union;
(2) any employment for the Union or an affiliated local union; or
(3) any employment or self-employment for wages or profit in the Building and Construction
Industry or in the Rock, Sand and Gravel Industry in the geographical jurisdiction of this
Plan or a Related Plan with which the Trust Fund has a reciprocal agreement.
b. A�er Normal Retirement Age and Prior to the Required Beginning Date
To be deemed retired a�er Normal Retirement Age and prior to his Required Beginning Date,
a Pensioner must refrain from engaging in employment prohibited by the Plan. Prohibited
employment includes employment or self-employment for wages or profit of 40 hours or
more during a calendar month: (1) in an industry in which Employees were employed and
accrued benefits under the Plan as a result of that employment at the time that payment of
benefits to the Pensioner commenced or would have commenced if the Pensioner had not
remained in or returned to employment; and (2) in a trade or cra� in which the Pensioner
was employed at any time under the Plan; and (3) in the state of California.
c. A�er the Required Beginning Date
A Pensioner will be deemed retired upon reaching his Required Beginning Date irrespective
of the type of employment performed.
d. When a Pensioner performs casual services for the Local Union or District Council as a part-time
paid official, these services will not constitute employment for the purposes of this Section.
Section 9.12.
If a Pensioner is employed in work of the type described in Subsection 9.11.a., his pension
payments will be suspended and permanently withheld for a period equal to the number of
months during which he was employed or self-employed.
Pension payments will also be suspended and permanently withheld for an additional 3
months, except with respect to a person receiving a Disability Pension.
b. A�er Normal Retirement Age and Prior to the Required Beginning Date.
If a Pensioner is employed in work of the type described in Subsection 9.11.b., his pension
payments will be suspended and permanently withheld for each calendar month in which
he was so employed or self-employed. A�er he ceases that employment, his pension will
resume with the first month following the cessation of employment or self-employment of
the type described in Subsection 9.11.b.
118
c. A�er the Required Beginning Date
Pension payments cannot be suspended for employment a�er the Required Beginning Date.
d. Notices
(1) Before commencement of pension benefits, a Pensioner must sign a retirement declaration,
in a form prescribed by the Board of Trustees, acknowledging notice of the Plan rules
governing suspension of benefits, as set forth in the declaration, and agreeing to abide
by the requirements of those rules. The Pensioner will be notified by mail at his last
address on record with the Trust Fund of any material change in the suspension rules on
or before the effective date of the change or within 15 days.
(2) A Pensioner must notify the Plan in writing within 15 days a�er starting any work of
a type that is or may be prohibited under the provisions of Section 9.11 and without
regard to the number of hours of work.
The Board may at any time or from time to time as a condition to receiving future benefit
payments require that a Pensioner submit evidence verifying that he is unemployed or
that any employment does not constitute work of the type prohibited under the provisions
of Section 9.11. The Board will advise all Pensioners in writing at least once every 24
months, or as determined by the Board of its employment verification requirements and
the nature and effect of the presumptions provided in this Section 9.12.d.(2).
(3) Whenever the Board becomes aware that a Pensioner is working or has worked in
prohibited employment in any month a�er Normal Retirement Age, and has failed to
give timely notice to the Plan of that employment, the Board may, unless it is unreasonable
under the circumstances to do so, act on the basis of a rebu�able presumption that the
Pensioner worked for at least 40 hours in a month and any subsequent month before the
Pensioner gives notice in writing to the Board that he has ceased prohibited employment.
The Pensioner may overcome the presumption by establishing that his work was not, in
fact, an appropriate basis, under the Plan, for suspension of his benefits.
In addition, whenever the Board becomes aware that a Pensioner is working or has worked
in prohibited employment for any number of hours for an employer at a construction site
and he has failed to give timely notice to the Plan of that employment, the Board may,
unless it is unreasonable under the circumstances to do so, act on the basis of a rebu�able
presumption that the Pensioner engaged in that employment for the same employer in
work at that site for as long as that same employer performed that work at that construction
site. The Pensioner may overcome the presumption by establishing that his work was not,
in fact, an appropriate basis, under the Plan, for suspension of his benefits.
(4) A Pensioner whose pension has been suspended must notify the Plan, in writing, when
prohibited employment has ended. The Board will have the right to withhold benefit
payments until that notice is filed with the Plan.
(5) A Participant may request, in writing, a determination by the Board whether specific
contemplated employment is prohibited by Section 9.11.b. The Board will make its
determination and notify the Participant, in writing, of that determination in accordance
with the claims review procedure provided in Section 9.04.
119
(6) The Plan will inform a Pensioner of any suspension of his benefits pursuant to Section
9.11.b. by notice given by personal delivery or first class mail during the first month in
which his benefits are withheld. This notice will include:
(a) a description of all specific reasons for the suspension,
(b) a general description of all Plan provisions relating to the suspension of benefits,
(c) a copy of the provisions and a copy of the claims review procedure provided in
Section 9.04.,
(d) a statement that applicable Department of Labor regulations may be found in Section
2530.203-3 of Title 29 of the Code of Federal Regulations,
(e) a statement that a request for the review of the suspension will be considered in
accordance with the claims review procedure provided in Section 9.04,
(f) a description of the procedure for filing a benefit resumption notice,
(g) the forms that must be filed for that purpose and
(h) a specific identification of the periods of employment for which suspendable amounts
will be offset, the suspendable amounts subject to offset and the manner in which the
offset will be made.
(7) A Participant who continues employment beyond Normal Retirement Age in the type of
work prohibited by Section 9.11.b., will be notified in writing during the first calendar
month a�er his a�ainment of Normal Retirement Age that his pension benefits will not
commence until he has retired and filed an application for benefits. He will also be informed
that since he has delayed his Annuity Starting Date beyond Normal Retirement Age, he
will forfeit benefits to which he may have been entitled had he not continued working.
e. Review
A suspension of benefits pursuant to this Section is subject to review by the Board in
accordance with the claims review procedure provided in Section 9.04.
f. Resumption of Benefit Payments
(1) Benefit payments will resume a�er the last month during which benefits were suspended,
provided the Pensioner has complied with the notification requirements of Subsection
d.(4) above. Subject to the provisions of Subsection f.(2), overpayments a�ributable to
payment of benefits made for any month or months for which the Pensioner engaged in
prohibited employment will be deducted from benefits otherwise payable subsequent to
the period of suspension.
(2) In the case of a Pensioner who has a�ained Normal Retirement Age, benefit payments
will resume no later than the third month a�er the last calendar month for which the
Pensioner’s benefit was suspended. The deduction or offset for prior benefit overpayments
will be 100% of the initial payment or the full suspendable amount subject to offset,
whichever is less. Therea�er, the deduction or offset in any one month will not exceed
25% of that month’s total benefit payment.
120
(3) If a Pensioner dies before recoupment of the overpayment, deductions will be made
from any benefits payable to his surviving Spouse or Beneficiary, subject to the 25%
limitation.
g. Continued Employment A�er Normal Retirement Age
Section 9.12.b., which provides for the suspension of benefits a�er Normal Retirement Age,
will not apply to a Participant who remains in Covered Employment and does not retire until
a�er Normal Retirement Age, unless he subsequently returns to prohibited employment
a�er he retires.
Section 9.13.
Pensioner Work Addendum
Notwithstanding the provisions of Sections 9.11 and 9.12 above, a Pensioner may return to work
without suspension of pension benefits if the Pensioner complies with any and all terms, conditions
and provisions of any Retiree Work Addendum existing under an applicable collective bargaining
agreement.
RETIREE RETURN TO WORK ADDENDUM
In accordance with Section 9.13 of the Plan, a Pensioner may perform certain types of work under
specific conditions without having his monthly pension benefit from the Laborers Pension Trust
Fund for Northern California suspended. The following list of positions includes, but is not limited
to, those which the Pension Plan “exempts” from the suspension of benefits provisions.
▪
Owner or partial owner of a company provided the employer is signatory to a Northern
California District Council of Laborers collective bargaining agreement.
▪
Equipment or Personnel Dispatcher for a signatory employer.
▪
Human Resources or Personnel Manager for a signatory employer.
▪
Instructor for a signatory employer on equipment not trained for at one of the Northern
California District Council of Laborers training facilities.
▪
Supervisor or Superintendent in the construction industry paid on a bona fide salary basis
by a signatory employer.
▪
Estimator for a signatory employer.
▪
Office worker for a signatory employer.
▪
Project Manager for a signatory employer.
▪
Safety Officer for a signatory employer.
▪
Inspector for a signatory employer.
▪
Employment by the Foundation for Fair Contracting in accordance with the terms, conditions
and provisions governing that employment established by the collective bargaining parties.
The above types of work will be permi�ed as long as the retiree does not perform work of the kind
covered by a Northern California District Council of Laborers Collective Bargaining Agreement in
121
the state where he is working, even while working in one of the above capacities. This list is subject
to revision at the discretion of the Board of Trustees.
Section 9.14.
Benefit Payments Following Suspension
a. The monthly amount and type of pension a�er suspension will be in the same form and
amount received prior to suspension.
b. Suspension of pension payments before Normal Retirement Age, in accordance with
Subsection 9.12.a., because of employment of the type for which a pension would not be
suspended a�er Normal Retirement Age, will not reduce the value of the Pensioner’s pension
below the actuarial equivalent of the pension payable at his Normal Retirement Age. To
the extent necessary and to avoid a reduction, the monthly amount of the pension will be
adjusted so as not to deprive the Pensioner of the value of the pension payable to him at his
Normal Retirement Age.
c. A Husband-and-Wife Pension in effect immediately prior to the suspension of benefits and
any optional form of payment selected, will remain in effect if the Pensioner’s death occurs
while his benefits are in suspension. If a Pensioner returns to Covered Employment, he will
not be entitled to a new election as to the Husband-and-Wife Option, or any other optional
form of benefit provided under the Plan.
Section 9.15.
Non Forfeitability
a. The Employee Retirement Income Security Act requires that certain benefits under this Plan
be non-forfeitable.
b. A Participant acquires a non-forfeitable right to a Regular Pension at Normal Retirement
Age. Periods of service and breaks in service are defined for that purpose under this Plan on
the basis of all compensated hours of work.
c. ERISA also provides certain limitations on any plan amendment that may change the Plan’s
vesting schedule. In accordance with those legal limitations, no amendment of this Plan may
take away a Participant’s non-forfeitable right to a Regular Pension at Normal Retirement
Age, if he has already earned the pension at the time of the amendment. Also, an amendment
may not change the vesting schedule on which basis a Participant acquires this right, unless
each Participant who has at least 5 Years of Service at the time the amendment is adopted or
effective (whichever is later) is given the option of achieving a non-forfeitable right on the
basis of the pre-amendment schedule.
That option may be exercised within 60 days a�er the latest of the following dates:
(1) when the amendment was adopted,
(2) when the amendment became effective, or
(3) when the Participant was given wri�en notice of the amendment.
The provisions of this Section are subject to the provisions of Sections 3.12, 9.01, 9.02, 9.05, 9.10,
9.12, 9.14 and 12.01.
122
Section 9.16.
Incompetence, Incapacity or Minority of Payee
In the event that it is determined to the satisfaction of the Board that a Pensioner or Beneficiary
is unable to care for his affairs because of mental or physical incapacity, or that a Beneficiary is a
minor, and that no guardian, commi�ee or representative of the payee has been legally appointed,
the Board may in its sole discretion, during the lifetime or minority of the payee, as the case may
be, pay any amount otherwise payable to the payee, to the person or persons, or institution or
facility, who or which in its opinion has been or will be caring for or supporting the payee (except
that no payment will be made to a governmental institution or facility if the payee is not legally
required to pay for his or her care and maintenance), until claim is made for any amounts not
expended, by a legally appointed guardian, commi�ee or other representative of the payee or by
the payee a�er the payee has reached majority. Any payment under this Section will discharge the
obligation of the Trust Fund to the extent of that payment.
Section 9.17.
Benefits Unpaid on a Pensioner’s or Beneficiary’s Death
The Trust Fund may pay any benefits due and payable but not actually paid prior to the death of a
Pensioner or Beneficiary to any person or institution determined by the Trust Fund to be equitably
entitled to payment. The remainder of the amount will be paid to one or more of the surviving
relatives of the Pensioner or Beneficiary in the following order: lawful Spouse, child or children,
parent(s), sibling(s), or to the estate of the Pensioner or Beneficiary. Any payment in accordance
with this provision will discharge the obligation of the Trust Fund to the extent of that payment.
Section 9.18.
Non Assignment of Benefits.
Except to the extent provided by a qualified Domestic Relations Order, or the equivalent, authorized
by ERISA, the Internal Revenue Code or the Retirement Equity Act, each Participant, Pensioner
or Beneficiary under the Plan is restrained from selling, transferring, anticipating, assigning,
alienating, hypothecating or otherwise disposing of his Pension, prospective pension or any
other right under the Plan. The Board of Trustees will not recognize, or be required to recognize,
any sale, transfer, anticipation, assignment, alienation, hypothecation or other disposition. Any
pension, prospective pension, right or interest will not be subject in any manner to any voluntary
transfer or transfer by operation of law or otherwise, and will be exempt from the claims of
creditors or other claimants and from all orders, decrees, garnishments, executions or other legal
or equitable process or proceeding to the fullest extent permi�ed by the laws of the United States
or any regulation.
The Board will adopt and prescribe reasonable rules and regulations for the implementation of
the Qualified Domestic Relations Order provisions of ERISA, the Internal Revenue Code and
the Retirement Equity Act. In no event will any order provide for or result in the payment of
benefits which have an actuarial value in excess of the actuarial value of the benefits to which the
participant would be entitled in the absence of a Domestic Relations Order.
123
Section 9.19.
Offset and Recoupment
In the event that it is determined that due to either a mistake of fact or law, or to comply with
Section 9.18, or to any other circumstances, a Pensioner or Beneficiary has been paid more than he
is entitled to under the terms of the Plan or under the law, the Board will offset, recoup and recover
the amount of the overpayment from payments due or therea�er becoming due to the Pensioner or
his Beneficiary or surviving Spouse, in installments and to the extent as the Board will determine.
Section 9.20.
Deductions from Benefit Payments
a. To the extent authorized by the Participant or required by the Internal Revenue Service or
state taxing authority, federal and state income taxes will be withheld from a Participant’s
benefit payments.
b. The Board of Trustees may establish a procedure whereby any Retired Employee, and any
surviving Spouse while entitled to receive a pension, will have a portion of the pension due
him deducted from his benefit payments and paid to Laborers Health and Welfare Trust
Fund for Northern California to defray all or part of the cost of benefits to be provided to
him by that Fund.
124
ARTICLE 10
MAXIMUM BENEFITS
Section 10.01.
General Rule
a. Except as provided in Subsection c., and notwithstanding any other provision of this Plan
(except to the extent the provisions of this Section are superseded by the provisions in Article
13), the annual benefit relating to employment with a Contributing Employer that is payable
with respect to any Participant cannot exceed:
(1) $135,000 ($140,000, effective January 1, 2001) or, if lower,
(2) 100% of the Participant’s average Compensation in the period of 3 consecutive calendar
years, or 12-month periods, in which his Compensation was the highest. For this
purpose, Compensation is determined based on wage rates established in the Collective
Bargaining Agreement and covered service as reported to the Trust Fund, to the extent
available, or on other records deemed by the Administrator to be reliable. Information
on Participant’s Compensation furnished to the Administrator by a Contributing
Employer is deemed reliable. In addition, the Administrator may rely on information
on Compensation furnished by a Participant or Beneficiary unless the Administrator
determines that it is not reliable.
b. This limit does not apply to any benefits payable in a year and a�ributable to the Employer
that do not exceed $1,000 a year for each calendar year in which the Participant earns a year
of pension with that Employer, up to a maximum of $10,000. If the Participant earns a fraction
of a Year of Credited Service, the $1,000 amount for that year is reduced by multiplication by
that fraction.
This Subsection does not apply if the Participant has also been covered by an individual
account plan to which the Employer contributed on his behalf, and that plan was maintained
as a result of collective bargaining involving the same employee representative as this
Plan.
c. (1) The $135,000 limit ($140,000, effective January 1, 2001) in Subsection a.(1) and a Participant’s
average Compensation will be increased in each calendar year following his termination
of service with the Employer for increases in the cost of living, based on the procedures
used to adjust benefit amounts under 215(i)(2)(A) of the Social Security Act.
(2) Benefit payments that are limited by this Article will be increased annually to the level
permi�ed by the limitations of this Article as adjusted for later years in accordance with
this Subsection.
d. Employer-by-Employer Method of Testing. For purposes of applying the limitations of this
Section with respect to a Participant of an Employer, only the benefits accrued as a result of
Covered Employment with an Employer will be taken into account. The benefit under this
Plan considered as payable with respect to a Participant and an Employer will be determined
by multiplying the Participant’s total benefit by the ratio of Covered Employment with the
Employer to total Covered Employment.
125
e. The benefit limitations applied in this Article will be applied by considering the Participant’s
benefits, service, Plan participation and Compensation as if a�ributable to a single Employer,
to the extent that the resulting benefits payable to the Participant are no less than what
would otherwise be payable.
Section 10.02.
Adjustment of Dollar Limit for Early or Late Retirement
a. If a Participant’s benefit payments begin before the Participant’s Social Security Retirement
Age, but on or a�er age 62, the dollar limit under Section 10.01.a.(1) is reduced as follows:
(1) If the Participant’s Social Security Retirement Age is 65, the dollar limit is reduced by 5/9
of 1% for each month by which benefits begin before the month in which the Participant
reaches age 65.
(2) If the Participant’s Social Security Retirement Age is later than 65, the dollar limit is
reduced by 5/9 of 1% for each of the first 36 months and 5/12 of 1% for each additional
month (up to 24) by which benefits begin before the month of the Participant’s Social
Security Retirement Age.
b. If a Participant’s benefit payments begin prior to age 62, the dollar limit is reduced to the
Actuarial Equivalent, as defined in Section 10.02.f., of the benefit payable at age 62.
c. If a Participant’s benefit payments begin a�er Social Security Retirement Age, the limit
is increased to the Actuarial Equivalent, as defined in Section 10.02.f., of the dollar limit
otherwise payable at the Social Security Retirement Age.
d. For purposes of this Section, Social Security Retirement Age is:
(1) Age 65, for a Participant born before January 1, 1938;
(2) Age 66, for a Participant born a�er December 31, 1937 and before January 1, 1955; and
(3) Age 67, for a Participant born a�er December 31, 1954.
e. In the case of a Participant employed by a tax-exempt Employer:
(1) If the Participant’s benefit payments begin before age 65, but on or a�er age 62, the dollar
limit is not reduced.
(2) If the Participant’s benefit payments begin before age 62, but on or a�er age 55, the dollar
limit is reduced to the Actuarial Equivalent, as defined in Section 10.02.f., of the benefit
payable at age 62, but not below $75,000.
(3) If the Participant’s benefit payments begin before age 55, the dollar limit is reduced to the
(4) If the Participant’s benefit payments begin a�er age 65, the dollar limit is increased to the
126
f. For purposes of Sections 10.02.b., e.(2) and e.(3), Actuarial Equivalent means the lesser of
(1) the equivalent amount computed using the plan rate and plan mortality table (or plan
tabular factor) used for actuarial equivalence for early retirement benefits under the plan and
(2) the amount computed using 5% interest and the mortality table described in Section 1.01.
For purposes of Sections 10.02.c. and e.(4), Actuarial Equivalent means the lesser of (1) the
equivalent amount computed using the plan rate and plan mortality table (or plan tabular
factor) used for actuarial equivalence for late retirement benefits under the plan and (2) the
amount computed using 5% interest and the mortality table as described in Section 1.01.
Section 10.03.
Adjustment for Optional Payment Form
If the Participant’s benefit is to be paid in any form other than a single life annuity or a Husbandand-Wife Pension the limitations in Section 10.01.a. (as otherwise modified under this Article) are
applied to the annual benefit in the form of a straight life annuity commencing at the same age
that is actuarially equivalent to the plan benefit. If the plan benefit is not subject to IRC Section
417(e)(3), the equivalent to the plan benefit is equal to the greater of (1) the benefit computed
using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial
equivalence for the particular form of benefit payable, and (2) the benefit computed using a 5%
interest rate and the mortality table described in Section 1.01. If the plan benefit is subject to IRC
Section 417(e)(3), the equivalent annual benefit is equal to the greater of (1) the benefit computed
using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial
equivalence for the particular form of benefit payable, and (2) the benefit computed using the
interest rate and the mortality table described in Section 1.01.
Section 10.04.
Plan Aggregation.
a. In applying the limits of this Article, the benefits of and contributions to all other retirement
plans sponsored by the Employer or any other member of the same controlled group will be
taken into consideration, except for multiemployer plans.
b. Except as noted in Subsection a. above, all defined benefit plans sponsored by the Employer
or any other member of the same controlled group are treated as a single plan. Benefits
payable under any other plan with respect to a Participant will be reduced to the extent
possible before any reduction will be made in his benefits under this Plan, if necessary to
observe these limits.
c. For Limitation Years beginning before 2000 and except as noted in Subsection a. above, if
a Participant is covered under one or more defined contribution plans sponsored by the
Employer or any other member of the same controlled group, his combined benefits and
annual additions under all defined benefit and defined contribution plans cannot exceed the
applicable plan limits under Code §415(e), including any rules and regulations. If necessary
to observe these limits, benefits under any other defined benefit plans will be reduced before
benefits under this Plan, but benefits under this Plan will be reduced to the extent necessary
if benefits under the other plans cannot be reduced.
Benefit increases resulting from the repeal of Code section §415(e) will be provided to all
current and former Participants who have an accrued benefit under the Plan on or a�er
January 1, 2000.
127
Section 10.05.
Phase-In Over Years of Service
a. The limit in Section 10.01.a.(2) will be phased in, with respect to each Participant, at the rate
of 10% for each Plan Year in which the Participant earns a year of Vesting Service or Benefit
Credit with the Employer, up to 100%. If the Participant earns a fraction of a year of Service
or Credit, the 10% rate for that year is reduced by multiplication by that fraction.
b. In applying this rule to benefits under other plans with which benefits under this Plan are
aggregated under Section 10.04.a., the phase-in for those other plan’s benefits will be based
on years of Vesting Service as defined in those other plans.
Section 10.06.
Phase-In Over Years of Participation
If a Participant has fewer than 10 years of participation in this Plan, the dollar limitation in Section
10.01.a.(1) will be multiplied by a fraction, the numerator being the Participant’s total years and
fractional years of participation in this Plan and the denominator being 10. The limitation obtained
cannot be less than 10% of the dollar limitation.
Section 10.07.
Limitation Year
The annual limits of this Article will be applied on a calendar year basis.
Section 10.08.
Protection of Prior Benefits
a. For any year before 1983, the limitations prescribed by Section §415 of the Code as in effect
before enactment of the Tax Equity and Fiscal Responsibility Act of 1982 will apply, and no
benefit earned under this Plan will be reduced on account of the provisions of this Article if
it would have satisfied those limitations under the prior law.
b. For any year before 1992, the limitations prescribed by Section §415 of the Code in effect
before enactment of the Tax Reform Act of 1986 will apply, and no benefit earned under
this Plan as of the close of the last Limitation Year beginning before January 1, 1987 will be
reduced on account of the provisions of this Article if it would have satisfied those limitations
under the prior year.
Section 10.09.
Interpretation or Definition of Other Terms
Any terms used in this Article that are not expressly defined in the Plan, will be defined, interpreted
and applied for purposes of this Article as prescribed in Code Section §415, including any rules
and regulations.
128
ARTICLE 11
MISCELLANEOUS
Section 11.01.
Gender
Wherever any words are used in this Pension Plan in the masculine gender, they should be
construed as though they were used in the feminine gender in all situations. Wherever any words
are used in this Pension Plan in the singular form, they should be construed as though they were
in the plural form in all situations, and vice versa.
Section 11.02.
Mailings
Except as otherwise specifically provided in this Plan, any notice or other communication to be
given under the provisions of the Plan may be given by mailing the notice or communication by
first class mail to the person to be notified at his last address on the records of the Plan and will be
effective for all purposes on the third day a�er mailing the notice.
Section 11.03.
Addition of New Groups of Contributing Employers
The Board will review the relevant actuarial data with respect to any group of employees added to
the coverage of this Pension Fund. If the Board concludes that modification of previously adopted
funding assumptions or changes in amounts of pension benefits would result from the inclusion
of the group, the appropriate provisions of the Pension Plan will be modified with respect to
the group involved so that the Trust Fund will not be adversely affected by the inclusion of the
group.
Section 11.04.
Right to Terminate
The Trustees have the right to discontinue or terminate this Plan in whole or in part. In the event
of a termination of this Plan, the rights of all affected Participants to accrued benefits, to the extent
funded, become 100% vested and nonforfeitable. Upon a termination of the Plan, the Trustees will
take necessary steps to comply with §4041A and 4281 of ERISA.
Section 11.05.
Mergers
In the case of any merger or consolidation of the Plan with, or transfer, in whole or in part, of
the assets and liabilities of the Pension Fund to any other Pension Fund a�er September 2, 1974,
each Participant will (if the Plan terminated) receive a benefit immediately a�er the merger,
consolidation or transfer which is at least equal to the benefit he would be entitled to receive
immediately before a merger, consolidation or transfer as if the Plan had terminated.
Section 11.06.
Special Provision for Eligible Rollover Distributions
This Section applies to distributions made from the Trust Fund on or a�er January 1, 1993.
Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s
election under this Section, a distributee may elect, at any time and in the manner prescribed
129
by the Board, to have any portion of an eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributee in a direct rollover (all terms as defined below).
Effective January 1, 2002, any provisions in this Section that are contrary to those contained in
Section 13.04 will be superceded by Section 13.04.
a. Eligible Rollover Distribution
An eligible rollover distribution is any distribution of all or any portion of the balance to the
credit of the distributee, except that an eligible rollover distribution does not include:
(1) any distribution that is one of a series of substantially equal periodic payments (not less
frequent 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;
(2) any distribution to the extent the distribution is required under Section 401(a)(9) of the
Internal Revenue Code;
(3) one-time retiree benefit increases payable as extra monthly annuity benefits; or
(4) the portion of any distribution that is not includible in gross income.
b. Eligible Retirement Plan
An eligible retirement plan is:
(1) an individual retirement account described in Section §408(a) of the Code;
(2) an individual retirement annuity described in Section §408(b) of the Code; or
(3) a qualified trust described in Section §401(a) of the 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.
c. Distributee
A distributee includes an Employee or former Employee. In addition, the Employee’s or
former Employee’s surviving Spouse and Employee’s or former Employee’s Spouse who is
the alternate payee under a qualified Domestic Relations Order, as defined in Section 414(p)
of the Code, are distributees with regard to the interest of the Spouse or former Spouse.
d. Direct Rollover
A direct rollover is a payment by the Plan to the eligible retirement plan specified by the
distributee.
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ARTICLE 12
AMENDMENT
Section 12.01.
Amendment
This Plan may be amended at any time by the Board consistent with the provisions of the Trust
Agreement. However, no amendment may decrease the accrued benefit of any Participant
except:
a. As necessary to establish or maintain the qualification of the Plan or the Trust Fund under
the Code and to maintain compliance of the Plan with the requirements of ERISA, or,
b. If the amendment meets the requirements of Section 302(c)(8) of ERISA and Section 412(c)(8)
of the Code, and the Secretary of Labor has been notified of the amendment and has either
approved of it or, within 90 days a�er the date on which the notice was filed, he failed to
disapprove.
131
ARTICLE 13
AMENDMENTS TO COMPLY WITH EGTRRA
Section 13.01.
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. Except as otherwise provided,
the amendments contained in this Article will be effective as of the first day of the first Plan Year
beginning a�er December 31, 2001 (June 1, 2002). The provisions of this Article will supersede the
provisions of the Plan to the extent those provisions are inconsistent with the provisions of this
Article.
Section 13.02.
Limitations on Benefits
a. In General
(1) Effective for limitation years (calendar years) beginning a�er December 31, 2001, a
Participant’s accrued benefit shall not exceed the maximum permissible benefit.
(2) To the extent that any provisions of Article 10 are inconsistent with the provisions of this
Section, the provisions of this Section shall govern.
b.
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)).
c.
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 the manner as the
Secretary prescribes, 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, and limited, if applicable, as provided in (D) below).
132
(a) Fewer Than 10 Years of Participation. If the Participant has fewer than 10 years
of participation in the Plan, the defined benefit dollar limitation will be multiplied
by a fraction, (i) the numerator of which is the number of years (or partial years) of
participation in the Plan and (ii) the denominator of which is 10.
(b) Benefits Beginning before Age 62. If the benefit of a Participant begins before the
Participant a�ains age 62, the defined benefit dollar limitation applicable to the
Participant at the 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 that 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 that age) of the defined benefit dollar limitation computed using a 5 percent
interest rate and the applicable mortality table described in Section 9.09.
(c) Benefits Beginning a�er Age 65. If the benefit of a Participant begins a�er the
Participant a�ains 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 any age a�er age 65 is determined as (i) the lesser of the actuarial equivalent (at
that 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 that age) of the defined
benefit dollar limitation computed using a 5 percent interest rate and the applicable
mortality table described in Section 9.09. For these purposes, mortality between age
65 and the age at which benefits commence shall be ignored.
(d) Aggregation. Effective for Limitation Years beginning a�er December 31, 2001, this
Plan will 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.
Section 13.03.
Increase in Limit on Compensation Taken into Account
a. Increase in Limit
The annual compensation of each Participant taken into account in determining benefit
accruals in any Plan Year beginning a�er December 31, 2001 will not exceed $200,000. For
this purpose, annual compensation means compensation during the Plan Year or other
consecutive 12-month period over which compensation is determined under the Plan (the
133
“determination period”). To the extent that the provisions of Sections 1.11 are inconsistent
with the provisions of this Section, the provisions of this Section govern.
b. Cost-of-Living Adjustment
The $200,000 limit on annual compensation in subsection a. above will be adjusted for costof-living increases in accordance with IRC §401(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 the calendar year.
c. Compensation Limit for Prior Determination Periods
In determining benefit accruals in Plan Years beginning a�er December 31, 2001, the annual
compensation limit in subsection a. above, for determination periods beginning before
January 1, 2002, is $200,000.
Section 13.04.
Direct Rollover of Plan Distributions
a. Effective Date
This Section applies to distributions made a�er December 31, 2001. To the extent that the
provisions of Section 11.06 are inconsistent with the provisions of this Section, the provisions
of this Section govern.
b. Modification of Definition of Eligible Retirement Plan
(1) For purposes of the direct rollover provisions in Section 11.06 of the Plan, an “eligible
retirement plan” also includes 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 that plan from this Plan.
The definition of eligible retirement plan also applies 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).
134
ARTICLE 14
CONTINGENT TOP HEAVY RULES
Section 14.01.
General Rules
If the Plan is determined to be Top Heavy (as defined in Section 14.02) for any Plan Year, then for
that year, the special vesting, minimum benefit and compensation limitations of Section 14.03 will
apply to any Employee not included in a unit of Employees covered by a Collective Bargaining
Agreement between the Union and one or more Employers.
Section 14.02.
Determination of Top Heavy Status
a. Determination Date. The determination date for any Plan Year is the last day of the preceding
Plan Year. This will also be known as the “valuation date”.
b. Top Heavy Status. The Plan is Top Heavy for any Plan Year if, as of the determination date,
the present value of the cumulative accrued benefits under the Plan for Key Employees
exceeds 60 percent of the present value of the cumulative accrued benefits under the Plan
for all Employees.
(1) For this purpose, the Actuarial Equivalent of the cumulative accrued benefits will
be determined on the basis of five percent (5%) interest and the 1971 Group Annuity
Mortality Table.
(2) The accrued benefit will be determined under a uniform accrual method which applies
in all defined benefit plans maintained by the Employer or, if there is no accrual method,
as if the benefit accrued not more rapidly than the slowest rate of accrued permi�ed
under the fractional rule of Code Section §411(b)(1)(C).
c. Key Employees. Whether or not a Participant is a Key Employee depends on his status with
the Contributing Employer that employs the Participant. For any Plan Year, a Contributing
Employer’s Key Employees are those who, at any time during the Plan Year in which the
determination date for that Plan Year occurs, or any of the four preceding Plan Years, are:
(1) officers of the Contributing Employer having annual Compensation (as defined in
paragraph e.(4) below) greater than $45,000 for that year (which amount is subject to
adjustment under paragraph e.(1) below). In no event can more than the 50 Employees
(or, if less, the greater of 3 and 10 percent of the Employees) of a Contributing Employer
be treated as officers.
(2) the 10 Employees owning (or considered as owning under Section 318 of the Internal
Revenue Code) both more than a one-half percent ownership interest and the largest
percentage ownership interest in the Employer, provided that in no event will an
Employee having annual Compensation (as defined in paragraph e.(4) below) less than
$30,000 for that year (subject to adjustment under paragraph e.(1) below) be considered
as a Key Employee.
135
(3) the persons who own (or are considered as owning within the meaning of Section 318 of
the Internal Revenue Code) more than 5 percent of the outstanding stock of the corporate
Employer or stock possessing more than 5 percent of the total combined voting power
of all stock of the corporate Employer. (Sole proprietors and partners are not allowed to
participate in the Plan.)
(4) the persons who own (or are considered as owning within the meaning of Section 318 of
the Internal Revenue Code) more than 1 percent of the outstanding stock of the corporate
Employer or stock possessing more than 1 percent of the total combined voting power of
all stock of the corporate Employer who also have annual Compensation (as defined in
paragraph e.(4) below) from the corporate Employer of more than $150,000 for any such
year.
d. Aggregation Rules. In determining if the Plan is Top Heavy, the Plan will be aggregated
with other plans in the required aggregation group as defined in Section 416(g)(2)(A)(i) of
the Internal Revenue Code and may, in the Trustee’s discretion, be aggregated with any
other plan in the permissive aggregation group as defined in Section 416 (g)(2)(A)(ii) of the
Internal Revenue Code. Required aggregation group means each plan of an Employer in
which a Key Employee is a participant and each other plan of that Employer which enables
each plan to meet the requirements of Internal Revenue Code Sections §401(a)(4) or §410.
Permissive aggregation group means each plan of an Employer not within the required
aggregation group of the Employer which if included with the group would allow the group
to meet the requirements of Internal Revenue Code Sections §401(a)(4) and §410.
e. Special Rules
(1) The $45,000 and $30,000 limitations in paragraphs c.(1) and (2) above will be automatically
adjusted each year to be equal to 50% and 100%, respectively, of the maximum dollar limitation
(as opposed to the percentage limitation) of the annual addition to a defined contribution
plan as currently allowed under Section 415(c)(1)(A) of the Internal Revenue Code.
(2) The Actuarial Equivalent of the cumulative accrued benefit for any Employee will be
increased by the aggregate distributions made with respect to the Employee under the
Plan during the five-year period ending on the determination date.
(3) If an individual is not a Key Employee for any Plan Year but was a Key Employee for any
prior Plan Year, any accrued benefit for such Employee will not be taken into account for
purposes of determining if the Plan is Top Heavy.
(4) For purposes of this Article 14 “Compensation” for a Plan Year means the amount
required to be included in the Employee’s Form W-2 for the calendar year that ends
within that Plan Year.
Notwithstanding the foregoing, for Plan Years beginning a�er December 31, 1997,
an Employee’s Compensation includes any elective deferral (as defined under Code
§402(g)(3)), and any amount which is contributed or deferred by the Employer at the
election of the Employee and which, by reason of Code §125, §132(f)(4) or §457, is not
includible in the gross income of the Employee.
136
(5) The Board is authorized to adopt any other rules or regulations necessary to insure
that the Plan complies in all respects with the Top Heavy rules of the Internal Revenue
Code.
Section 14.03.
Special Vesting, Minimum Benefit, and Compensation Rules
The following rules will apply only to Employees not included in a unit of Employees covered by
a Collective Bargaining Agreement requiring Contribution to this Plan, and only if the Plan as a
whole becomes Top Heavy. These Employees are referred to as “Top Heavy Employees”.
a. Vesting.
(1) Applicability. If the Plan becomes Top Heavy the vesting schedule set forth in paragraph
a.(2) below will apply to the accrued benefit of every Top Heavy Employee who has at
least one Contributory Hour while the Plan is Top Heavy. Participants who do not have
a Contributory Hour while the Plan is Top Heavy will have their vesting determined
under the regular vesting schedule. Any accrued benefits that were forfeited before the
Plan became Top Heavy will remain forfeited.
(2) Special Vesting Schedule. If the Plan becomes Top Heavy, the following vesting schedule
will apply instead of the Plan’s regular vesting schedule to the Participants defined in
paragraph (1):
Years of
Vesting Service
Percentage
2
3
4
5
6 or more
20
40
60
80
100
(3) End of Top Heavy Status. If, a�er being determined to be Top Heavy, the Plan ceases to
be Top Heavy, then
(a) the non-forfeitable percentage of a Participant’s accrued benefit before the Plan ceased
to be Top Heavy will not be reduced;
(b) any Top Heavy Employee with three or more years of Vesting Credit at the time the
Plan ceased to be Top Heavy will have the vesting schedule of paragraph (2) above
applied to his accrued benefits whenever earned; and
(c) any Top Heavy Employee with less than three years of Vesting Credit at the time the
Plan ceased to be Top Heavy will have the Plan’s regular vesting provisions apply to
all benefits accrued a�er the Plan ceased to be Top Heavy.
137
b. Special Minimum Benefit Rules.
(1) Applicability. If the Plan becomes Top Heavy, then for the first year that the Plan is Top
Heavy, and for all subsequent years during which it is Top Heavy, the minimum benefit
set forth in paragraph b.(2) below will apply to all Top Heavy Employees (other than Key
Employees) who have a year of Vesting Credit during any such Plan Year.
(2) Special Minimum Benefit. If the Plan becomes Top Heavy, the minimum Normal
Pension benefit for Top Heavy Employees (other than Key Employees) will be the greater
of (a) the Plan’s basic Normal Pension benefit determined under Section 3.03, or (b) two
percent of the Participant’s Average Top Heavy Compensation for each year of Vesting
Credit beginning a�er March 31, 1984 during which the Plan was Top Heavy, up to a
maximum of 10 years.
(3) Average Top Heavy Compensation means the average Compensation for work performed
while a Participant in this Plan for the period of consecutive Top Heavy Years, not
exceeding five, during which the Participant had the greatest aggregate Compensation.
Top Heavy Years are those Plan Years beginning on or a�er April 1, 1984 for which the
Plan is determined to be Top Heavy.
c. Compensation Limitation. If the Plan is Top Heavy for any Plan Year, the amount
of any Top Heavy Employee’s Compensation for all purposes of the Plan, other than
determining Key Employee status, will not exceed $200,000 (as adjusted) for Plan Years
prior to June 1, 1994 and will not exceed $150,000 (as adjusted) for Plan Years beginning
on and a�er June 1, 1994.
For Plan Years beginning a�er December 31, 1997, an Employee’s Compensation includes any
elective deferral (as defined under Code §402(g)(3)), and any amount which is contributed
or deferred by the Employer at the election of the Employee and which, by reason of Code
§125, §132(f)(4) or §457, is not includible in the gross income of the Employee.
138
APPENDIX A
To the Pension Plan for the
Laborers Pension Trust for Northern California
Non-Recurring Retiree Benefit Supplement
1. All Pensioners and Beneficiaries whose Annuity Starting Dates are on or before July 1, 1991,
and whose pensions are in pay status (not deceased or suspended) as of December 1, 1991,
will receive with their December 1991 benefit payment a non-recurring benefit supplement
equal to one month’s benefit as of December 1, 1991.
2. All Pensioners and Beneficiaries whose Annuity Starting Dates are on or before December
1, 1992, and whose pensions are in pay status (not deceased or suspended) as of December
31, 1992, will receive a non-recurring benefit supplement equal to one month’s benefit as of
December 1, 1992.
3. All Pensioners and Beneficiaries whose Annuity Starting Dates are on or before February
1, 1994, and whose pensions are in pay status (not deceased or suspended) as of February
28, 1994, will receive a non-recurring benefit supplement equal to one month’s benefit as
of February 1, 1994, less the amount of the temporary supplemental benefit as set forth in
Subsection 3.19.c.
4. All Pensioners and Beneficiaries whose Annuity Starting Dates are on or before February
1, 1995, and whose pensions are in pay status (not deceased or suspended) as of February
of February 1, 1995, less the amount of the temporary supplemental benefit as set forth in
Subsection 3.19.c.
5. All Pensioners and Beneficiaries whose Annuity Starting Dates are on or before October
1, 1995, and whose pensions are in pay status (not deceased or suspended) as of October
of November 1, 1995 less the amount of the temporary supplemental benefit as set forth in
Subsection 3.19.c.
6. All Pensioners and Beneficiaries whose Annuity Starting Dates are on or before November
1, 1996, and whose pensions are in pay status (not deceased or suspended) as of November
of November 1, 1996 less the amount of the temporary supplemental benefit as set forth in
Subsection 3.19.c.
7. All Pensioners and Beneficiaries whose Annuity Starting Dates are on or before September
1, 1997, and whose pensions are in pay status (not deceased or suspended) as of October
November 1, 1997, less the amount of the temporary supplemental benefit as set forth in
Subsection 3.19.c.
139
8. All Pensioners and Beneficiaries whose Annuity Starting Dates are on or before September
1, 1998, and whose pensions are in pay status (not deceased or suspended) as of September
September 1, 1998, less the amount of the temporary supplemental benefit as set forth in
Subsection 3.19.c.
Subsection 3.19.c.
Subsection 3.19.c.
11. All Pensioners and Beneficiaries whose Annuity Starting Dates are on or before October 1,
2001, and whose pensions are in pay status (not deceased or suspended) as of October 31,
2001, will receive a non-recurring benefit supplement equal to one month’s benefit as of
Subsection 3.19.c.
140

laborers pension trust fund for northern california pension plan

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