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Summary Plan Description
As it is currently structured, the Plan can be terminated by the Employers and the Union at any time, if they agree to do so in writing. The Plan also can be terminated by the Trustees. (Section 7.05)
If the Plan terminates, you will not accrue any future benefits under the Plan. However, the benefits that you have already accrued will become vested, that is, nonforfeitable, to the extent your benefits can be funded by the Plan assets allocated to such benefits.
If there are more than enough assets available to pay the expenses of termination and fund all of the benefits described in the Plan, the Trustees will distribute any surplus remaining in the way that they determine best achieves the purposes of the Pension Fund. No assets will be used to the benefit of any Employer or any Union. They will be used only to pay benefits to Employees (or their families, beneficiaries, or dependents), to pay the cost of administering the Pension Fund, or for other purposes of the Fund.
If, however, there are not enough assets to pay for all of the benefits described in the Plan after providing for the expenses of termination, the remaining assets will be allocated in accordance with Section 7.05 of Article 7 of the Pension Plan, and as otherwise required by law. In general, that Article provides that benefits will be divided into four categories of descending order or priority. Available assets will be allocated first to the first category, which includes, as a general rule, pensions that were being paid at that time if the Participant had chosen to retire. If there are enough assets to pay for all the benefits in this category, the excess will be allocated to the next category. Please note that this is only a brief and general description of the allocation procedure. See Article 7 of the Plan document.
Once the allocation procedure is completed, the Trustees generally will use the available assets to purchase annuity contracts to provide you with your benefits. However, under certain circumstances, the Trustees may pay you the actuarial equivalent of your benefit in cash, if you consent to such a payment.