It is expressly understood that in no event will any of the corpus or assets of the Pension Fund revert to
the Employers or be subject to any claims of any kind or nature by the Employers, except for the return of an
erroneous contribution within the time limits prescribed by law.
This Pension Plan has been established on the basis of an actuarial calculation which has established, to
the extent possible, that the contributions will, if continued, be sufficient to maintain the Plan on a
permanent basis, fulfilling the funding requirements of ERISA. Nothing in this Plan may be construed to
impose any obligation to contribute beyond the obligation of the Employer to make contributions as stipulated
in the Collective Bargaining Agreement or Agreements to which the Employer is bound.
There is no liability upon the Trustees individually, or collectively, or upon the Union to provide the
benefits established by this Pension Plan, if the Pension Fund does not have assets to make such payments.
- If an Employer is sold, merged or otherwise undergoes a change of company identity, the successor
company will participate as to the Employees theretofore covered in the Pension Plan just as if it were the
original company, provided it remains a Contributing Employer as defined in Section 1.07.
- No new employer may be admitted to participate in the Pension Fund except upon approval by the Trustees.
A written Notice of Acceptance may be sent by the Trustees to any new Contributing Employer who is accepted
for participation in the Fund.
- An Employer may be accepted by the Trustees as a "Contributing Employer" upon application by the Union,
- the Employer, along with the Union, signs the standard language for participation in the Fund, as
approved by the Trustees, which sets forth the full details of the basis for contributions to the Fund
and the basis for acceptance as a Contributing Employer, and
- the Employer and Union furnish the name, date of birth, and employment history of each Employee then
covered by the Collective Bargaining Agreement between the Union and the new Employer, and
- such acceptance will not adversely affect the actuarial soundness of the Fund as determined by the
Trustees after consultation with the actuaries for the Fund. If the acceptance of an Employer will, in
the judgement of the Trustees, adversely affect the actuarial soundness of the Fund, then the Trustees
may, as a condition of acceptance, impose any terms and conditions they consider necessary to preserve
an equitable relationship between the basis of contributions of all Contributing Employers and the
benefits provided for all Employees. Such conditions may include, but may not be limited to, the
imposition of special waiting periods before the commencement of benefits to Pensioners and/or the
granting of a lower scale of benefits.
If a Contributing Employer terminates its participation in the Fund with respect to a bargaining unit, the
Trustees are empowered to reduce or cancel that part of any pension for which a person was made eligible
because of employment in such bargaining unit prior to the Contribution Period with respect to that unit.
Any active Employee of the said Contributing Employer who earns at least two (2) additional Years of Future
Service Credits as a result of employment by another Contributing Employer, and has not suffered a Break in
Employment as defined in Section 4.06, will not lose his previously accumulated Service Credits as a result
of the termination.
The Trustees may, by resolution, terminate an Employer's status as a Contributing Employer if the Employer
has failed, for a period of 90 days after the due date, to make contributions to the Fund as provided for
in the Collective Bargaining Agreement to which the Employer is signatory.
If the delinquent Employer wishes to once again participate in this Plan, he will be required to post bond
in an amount equal to twice the amount of the delinquency. If all delinquent contributions are not paid
within three months of the posting of the bond, such bonds shall be forfeited by the Employer and his
participation in the Fund will be canceled.
- Right to Terminate.
The Trustees have the right to discontinue or terminate this Plan in whole or in part in accordance
with the Trust Agreement. The rights of all affected Employees, Retired Employees, surviving Spouses and
Beneficiaries to benefits accrued to the date of termination, partial termination or discontinuance to
the extent funded as of such date will be nonforfeitable.
- Termination of this Plan will occur as a result of:
- the adoption of a Plan amendment that provides that Employees will receive no credit for any purpose
under the Plan for service with any Employer after the date specified by such amendment; or
- the withdrawal of every Employer from the Plan, or the cessation of the obligation of all Employers to
contribute under the Plan; or
- the adoption of an amendment to the Plan that causes the Plan to become a defined contribution plan.
- The date of termination under subsection (b)(1) or (b)(3) is the later of:
- the date on which the amendment was adopted, or
- the date on which the amendment takes effect.
- The date on which termination occurs under subsection (b)(2) is the earlier of:
- the date on which the last Employer withdraws, or
- the first day of the first Plan Year for which no Employer contributions were required under the Plan.
- In case of termination under subsection (b)(2), the Plan sponsor will, except as provided in subsection (g) below:
- limit the payment of benefits to benefits that are nonforfeitable under the Plan as of the date of the
- pay benefits attributable to Employer contributions, other than death benefits, only in the form of an
annuity, unless the Plan assets are distributed in full satisfaction of all nonforfeitable benefits under the Plan.
- In case of a termination under subsection (b)(2), the Plan sponsor will reduce benefits and suspend
benefit payments in accordance with Section 7.06.
- In the case of a termination under subsections (b)(1) or (b)(3), the rate of an Employerís contributions
under the Plan for each Plan Year beginning on or after the Plan termination date will equal or exceed the
highest rate of Employer contributions at which the Employer had an obligation to contribute under the Plan in
the five (5) preceding Plan years ending on or before the Plan termination date, unless the PBGC approves of a
reduction in the rate based on a finding that the Plan is or soon will be fully funded.
- The Plan sponsor may authorize the payment other than in the form of an annuity of an Employeeís entire
nonforfeitable benefit attributable to Employer contributions, other than a death benefit, if the value of
the entire nonforfeitable benefit does not exceed $1,750. The PBGC may authorize the payment of benefits
under the terms of the terminated Plan other than nonforfeitable benefits, or the payment other than in the
form of an annuity of benefits having a value greater than $1,750, if the PBGC determines that such payment
is not adverse to the interest of the Planís Participants and Beneficiaries generally and does not unreasonably
increase the PBGCís risk of loss with respect to the Plan.
- Upon termination of the Plan under Section 7.05(e), the Trustees will amend the Plan to reduce
benefits and will suspend benefit payments, as required by this Section.
- Upon termination under subsection (a), the value of nonforfeitable benefits under the Plan and the
value of the Planís assets will be determined in writing, in accordance with regulations prescribed by the
PBGC, as of the end of the Plan Year during which Section 7.05(e) becomes applicable to the Plan and each
Plan Year thereafter.
- For purposes of this Section, Plan assets include outstanding claims for withdrawal liability.
- If, according to the determination made under subsection (b), the value of nonforfeitable benefits
exceeds the value of the Planís assets, the Plan sponsor will amend the Plan to reduce benefits under the
Plan to the extent necessary to ensure that the Planís assets are sufficient, as determined and certified
in accordance with regulations prescribed by the PBGC, to discharge when due all of the Planís obligations
with respect to nonforfeitable benefits.
- Any Plan amendment adopted under this subsection will, in accordance with regulations prescribed by
the Secretary of the Treasury:
- reduce benefits only to the extent necessary to comply with (c)(1);
- reduce accrued benefits only to the extent that those benefits are not eligible for the PBGCís
guarantee under Section 4022A(b) of ERISA;
- comply with the rules for and limitations on benefit reductions under a Plan in reorganization,
as prescribed in Section 4244A of ERISA except to the extent that the PBGC prescribes other rules and
limitations in regulations under this Section; and
- take effect no later than six (6) months after the end of the Plan Year for which it is
determined that the value of nonforfeitable benefits exceeds the value of the Planís assets.
- If the Plan is insolvent under (d)(2)(A) of this Section and the benefit payments exceed the resource
benefit level, any such payments that are not basic benefits will be suspended, in accordance with this
subsection, to the extent necessary to reduce the sum of such payments and such basic benefits to the greater
of the resource benefit level or basic benefits, unless an alternative procedure is prescribed by the PBGC in
connection with a supplemental guarantee program established under Section 4022A(g)(2) of ERISA.
- For purposes of this subsection, for a Plan Year:
- the Plan is insolvent if:
- the Plan has been amended to reduce benefits to the extent permitted under subsection
- the Planís available resources are not sufficient to pay benefits under the Plan
when due for the Plan Year.
- ďResource benefit levelĒ and ďavailable resourcesĒ have the meanings set forth in paragraphs
(2) and (3), respectively, of Section 4245(b) of ERISA.
- If the Plan is insolvent under subsection (d)(2)(A), the Plan sponsor has the powers and duties
of the plan sponsor of a plan in reorganization which is insolvent within the meaning of Section
4245(b)(1) of ERISA, except that regulations governing the Plan sponsorís exercise of those powers and
duties under this Section will be prescribed by the PBGC, and the PBGC will prescribe by regulation
notice requirements that assure that Plan Participants and Beneficiaries receive adequate notice of
- The Plan is not required to make retroactive benefit payments with respect to that portion of a
benefit that was suspended under this subsection, except that the provisions of Section 4245(c)(4) and
(5) of ERISA will apply if the Plan is insolvent under (2)(A) in connection with the Plan Year during
which such Section 7.05(e) first became applicable to the Plan and every year thereafter, in the same
manner and to the same extent as such provisions apply to insolvent plans in reorganization under
Section 4245 of ERISA in connection with insolvency years under Section 4245.
Nothing in this Plan gives any Employee the right to be retained in the service of an Employer or
to interfere with the right of an Employer to discharge such Employee at any time, nor does it give an
Employer the right to require the Employee to remain in his service nor is it to interfere with the
Employee's rights to terminate his service at any time.
The Trustees will appoint an Actuary who shall be independent of the Union and the Contributing
Employers and qualified through Fellowship in the Society of Actuaries to perform all necessary actuarial
services in connection with the operation of the Plan, or a firm of actuaries which has on its staff
such an Actuary.
The Fund is not bound by the representations of any person, other than the Board of Trustees, regarding
participation in and eligibility for benefits under this Plan, status of Employees or Employers or any
other matter relating to the Pension Plan or Fund.
A Participant (including a Beneficiary receiving payments) may designate a person or persons as a
Beneficiary or Beneficiaries to receive the benefits, if any, provided in accordance with Sections 5.06 and
5.09 by forwarding such designation in a form acceptable to the Trustees to the Fund Office. An unmarried
Participant has the right to change his designation of Beneficiary without the consent of the Beneficiary.
A married Participant may change his designation of Beneficiary only with consent of his Spouse. The
consent must be in writing, must acknowledge the Beneficiary or Beneficiaries designated, and must be
A change of Beneficiary designation will not be effective or binding on the Trustees unless it is received
by the Fund Office before the death of the person making the designation. Any benefits provided in
accordance with Sections 5.06 and 5.09 will be paid to the most recently designated Beneficiary filed with
the Trustees. The divorce of the Participant and designated Beneficiary does not invalidate the
designation; the Participant must submit a change of Beneficiary designation to the Fund to remove the
former spouse as a Beneficiary. If the designated Beneficiary, who has survived the Participant and is
therefore entitled to the benefits provided, dies before receipt of the benefits, the benefits will be
paid in accordance with the procedure provided in Section 7.11.
If a Participant or Pensioner (including Beneficiaries receiving payments) has not designated a Beneficiary
or there is no designated Beneficiary alive at the death of a Participant or Pensioner, any benefit provided
under Sections 5.06 or 5.09 will be payable to the person listed below in the order listed:
- in accordance with the most recent properly executed beneficiary form from the National Automatic
Sprinkler Metal Trades Welfare Fund or any other sprinkler local welfare fund;
- to the Spouse of the Participant or Pensioner;
- if no surviving Spouse, to his surviving children, divided equally among them;
- if no surviving Spouse or children, to his surviving natural parents, divided equally between them.
If a Participant fails to designate a Beneficiary and none of the persons listed above are living, the
Trustees, in their discretion, may make payment to the person who has assumed the responsibility for paying the
expenses of the Participant; otherwise, no benefits will become payable under Sections 5.06 or 5.09.
Except as the context may specifically require otherwise, use of the masculine gender will be understood
to include both masculine and feminine genders.
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