"Actuarial Equivalent" means a benefit of equal Actuarial Present Value.

1. For Calendar Years beginning before January 1, 2000. The “Actuarial Present Value” of a benefit is determined on the basis of the 1971 Group Annuity Mortality Table with a two-year setback. The interest assumption is equal to the rate promulgated by the Pension Benefit Guaranty Corporation, effective as of the beginning of the Calendar year in which the payment is due to be made, for the valuation of immediate annuities in terminated non-multiemployer pension plans that do not close out under a Notice of Sufficiency.
   
   
2. Effective on or after January 1, 2000. The “Actuarial Present Value” of a benefit is determined based on the “Applicable Interest Rate” and the “Applicable Mortality Table” as set forth below:
   
   
   1. The "Applicable Mortality Table" as defined in Internal Revenue Code §417(e)(3)(A)(ii)(I) is the table prescribed by the Secretary of the Treasury.
   
   
   
   2. The "Applicable Interest Rate" as defined in Internal Revenue Code §417(e)(3)(A)(ii)(II) is the annualized rate of interest on 30-year Treasury securities during the month of August preceding the Plan Year which includes the Effective Date of Pension. For purposes of determining the Applicable Interest Rate, the "Stability Period" is the calendar year and the "Look Back Period" is five (5) months.
   
   
   
3. Transitional Rules. Notwithstanding Section 1.02(a) and (b):
   
   
   1. First Transition Rule.
      For the period from January 1, 2000 through October 31, 2000, the “Actuarial Present Value” of a defined benefit is determined based on—
   
   
   
   1. the assumptions specified in Section 1.02(a);
   
   
   
   2. the assumptions specified in Section 1/02(b); or
   
   
   
   3. the Applicable Mortality Table specified in Section 1.02(b)(1) and the annual rate of interest on 30-year Treasury Securities during December 1999 as published by the IRS,
   
   
   
   whichever set of assumptions would result in the greater benefit.
   
   
   2. Second Transition Rule.
      For the period from November 1, 2000 through October 31, 2001, the “Actuarial Present Value” of a benefit is determined based on:
      
      
      1. the assumptions specified in Section 1.02(b); or
      
      
      
      2. the Applicable Mortality Table in Section 1.02(b)(1) and the annual rate of interest on 30-year Treasury Securities (as published by the IRS) during the month of December preceding the Plan Year when such benefit is payable,
      
      
      
      whichever set of assumptions would result in the greater benefit.

"Beneficiary" means a person other than a Pensioner who is receiving benefits under this Plan because of his or her designation for such benefits by a Participant or the terms of the Plan.

"Calendar Year" means the period from January 1 to the next December 31. For purposes of ERISA regulations, the Calendar Year is the vesting computation period, the benefit accrual computation period and, after the initial period of employment, the computation period for eligibility to participate in the Plan.

"Collective Bargaining Agreement" or "Agreement" means any written labor contract by and between a Contributing Employer and the Union which provides for contributions to this Pension Fund with any and all extensions or renewals thereof and successor agreements thereto.

Two periods of employment are continuous if there is no quit, discharge or other termination of employment between the periods.

"Contributing Employer" or "Employer" means any employing unit subject to a Collective Bargaining Agreement and required thereby to make periodic payments to the Fund provided:

1. the employer has been accepted as a Contributing Employer by the Trustees, and



2. the Trustees have not, by resolution, terminated the employer's status as a "Contributing Employer" pursuant to Section 8.04 because the employer has failed for a period of ninety (90) days after the due date to make contributions to the Fund as provided for in its Agreement.

Employer also includes employers participating pursuant to an agreement with the Trustees.

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. In the case of any Employer having more than one place of business, the term "Contributing Employer" applies only to the place of business specifically covered by the Collective Bargaining Agreement requiring contributions to the Pension Fund.

The term "Contribution Date" means the first date for which a Contributing Employer was or shall be obligated by a Collective Bargaining Agreement to make contributions to the Pension Fund. The "Contribution Date" to be applied to each covered Employee shall be the one applicable to the first Contributing Employer who makes contributions on behalf of the Employee.

"Contribution Period" means the period during which the employer is a Contributing Employer with respect to a unit or classification of employment.

"Covered Employment" means employment of an Employee by an Employer in a category covered by a Collective Bargaining Agreement or other agreement for which the Employer is obligated to contribute to the Fund.

"Covered Employment" does not include employment by an employer after termination, for failure to pay contributions due, of that employer's status as a Contributing Employer, pursuant to the provisions of Section 7.04.

"Employee" means a person who is an Employee of an Employer and who is covered by a Collective Bargaining Agreement or as additionally defined in the Trust Agreement. The term "Employee" does not include any self-employed person, sole proprietor or owner of an unincorporated business organization that is a Contributing Employer. The term "Employee" may include a person who is an officer, stockholder, or who is otherwise involved in the management of an Employer if such person performs any work regularly performed by Employees covered by a Collective Bargaining Agreement.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

An ”Hour of Service" is each hour for which an Employee is paid, or entitled to payment, by the Employer(s), directly or indirectly including payments for disability from the National Automatic Sprinkler Metal Trades Welfare Fund, but excluding any time compensated under a worker's compensation or unemployment compensation law or plan pursuant to a mandatory disability benefits law and excluding any hours of non-work time in excess of 501 in any one continuous period. Two periods of paid non-work time shall be deemed continuous if they are compensated for the same reason (e.g., disability) and are not separated by at least ninety days. (Hours of Service shall be computed and credited in accordance with DOL Regulation 2530.200b).

"Normal Retirement Age" means age 65 or, if later, the age of the Participant on the fifth anniversary of his participation. Participation before a Permanent Break in Service is not counted.

"Participant" means a Pensioner or an Employee who meets the requirements for participation in the Plan set forth in Article 2, or a former Employee who has acquired a right to a pension under this Plan.

"Pension Fund" or "Fund" means the National Automatic Sprinkler Metal Trades Pension Fund established under the Trust Agreement.

"Pension Plan" or "Plan" means this document as adopted by the Trustees and as thereafter amended by the Trustees.

"Pensioner" means a person to whom a pension under this Plan is being paid or to whom a pension would be paid but for time for administrative processing or suspension of benefits.

"Trust Agreement" means the Agreement and Declaration of Trust establishing the National Automatic Sprinkler Metal Trades Pension Fund made and entered into on November 19, 1973, and as thereafter amended.

"Trustees" means the individuals serving as members of the Board of Trustees as established and constituted from time to time in accordance with the Trust Agreement.

The term "Union" or "Local Union" means the local unions that have heretofore or may hereafter be chartered by the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada which have agreed to be bound by the Trust Agreement.

Other terms are specifically defined as follows:

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