Rules Affecting the Participation of Non-Collectively Bargained Employees
Section 8.01.     Definitions.

The following definitions apply to the participation of Non-Collectively Bargained Employees in this Plan:

  1. "Collectively Bargained Employee"

    1. A Collectively Bargained Employee for any Calendar Year (which is the Plan Year as defined in ERISA) is an employee who is included in a unit of employees covered by a Collective Bargaining Agreement, as defined in Section 1.06 of the Plan, between an Employer and the employee's employee representative provided there is evidence that retirement benefits were the subject of good faith bargaining between the Employer and employee representative. An employee who is not covered by an agreement as defined in Section 1.06 of the Plan may not participate in the Plan without the prior approval of the Trustees.


    2. A Non-Collectively Bargained Employee may be treated as a Collectively Bargained Employee (A) if the Employee is or was a member of a unit of employees covered by a Collective Bargaining Agreement and that agreement or another agreement, such as an agreement with the Trustees, provides for the Employee to benefit under the Plan in the Calendar Year; and (B) the Employee performs services for an Employer during that Calendar Year both as a Collectively Bargained Employee and as a Non-Collectively Bargained Employee, provided at least half of the Employee's Hours of Work during the Calendar Year are performed as a Collectively Bargained Employee.


    3. An Employee who was a Collectively Bargained Employee for a Calendar Year, may be treated as a Collectively Bargained Employee for the duration of the Collective Bargaining Agreement applicable for that Calendar Year, or if later, until the end of the following Calendar Year (A) if the Employee is or was a member of a unit of employees covered by a Collective Bargaining Agreement and that agreement or another agreement, such as an agreement with the Trustees, provides for the Employee to benefit under the Plan in the Calendar Year; and (B) the terms of the Plan providing for benefit accruals treat the employee in a manner that is generally no more favorable than similarly situated Employees who are currently in a unit of employees covered by a Collective Bargaining Agreement.


    4. A Non-Collectively Bargained Employee may be treated as a Collectively Bargained Employee (A) if the Employee is or was a member of a unit of employees covered by a Collective Bargaining Agreement and that agreement or another agreement, such as an agreement with the Trustees, provides for the Employee to benefit under the Plan in the Calendar Year; (B) the Employee is performing services for an Employer, for this Plan or for a Participating Local Union; (C) the terms of the Plan providing for benefit accruals treat the employee in a manner that is generally no more favorable than similarly situated Employees who are currently in a unit of employees covered by a Collective Bargaining Agreement; and (D) no more than five percent (5%) of the Employees covered under the Plan are Non-Collectively Bargained Employees determined without regard to this subsection 8.01(a)(4). For purposes of this five percent (5%) limitation, employees described in subsections 8.01(a)(2) and (3) are treated as Collectively Bargained Employees.


  2. "Non-Collectively Bargained Employee"
    A Non-Collectively Bargained Employee for any Calendar Year is an Employee who is not a Collectively Bargained Employee for that Calendar Year as defined in subsection 8.01(a)(1). Provided, however, that certain Non-collectively Bargained Employees may be treated as Collectively Bargained Employees in accordance with subsections 8.01(a)(2), (3) and (4) above.


  3. "Employer"
    For purposes of determining the group of Highly Compensated Employees and for purposes of this Article but not for purposes of determining Covered Employment, the term "Employer" includes all corporations, trades or businesses under common control with the Employer within the meaning of Section 414(b) or (c) of the Code; all members of an affiliated service group with the Employer within the meaning of Section 414(m) of the Code and all other businesses aggregated with the Employer under Section 414(o) of the Code. The term "Employer" includes a Participating Sprinkler Local Union or fund whose officers or employees participate in the Plan.


  4. "Highly Compensated Employee"
    A Highly Compensated Employee is a highly compensated active employee or a highly compensated former employee 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 that Employer and relationship to that Employer. A Highly Compensated Employee may be determined based on the Employer's workforce on a single day during the Calendar Year in accordance with IRS Revenue Procedure 93-42.

    A highly compensated active employee is an employee of the Employer who performs services for the Employer during the Calendar Year and who during the Calendar Year:

    1. was a 5-percent owner;


    2. received compensation from the Employer in excess of the amount specified in Section 414(q) of the Code as adjusted from time to time;


    A highly compensated former employee for a Calendar Year is any former employee who, with respect to the Employer, had a separation year prior to the Calendar Year and was a highly compensated active employee for either the employee's separation year or any Calendar Year ending on or after the employee's 55th birthday.

    An employee who performs no services for an Employer during the Calendar Year is treated as a former employee for that Calendar Year. Such employee's separation year is the year in which the employee last performed services for the Employer.

  5. "Compensation"
    Effective January 1, 1997, for purposes of determining the group of Highly Compensated Employees (HCEs) under this Article, "Compensation" is compensation within the meaning of Section 415(c)(3) of the Code and including elective or salary reduction contributions to a cafeteria plan, cash or deferred arrangement or tax-sheltered annuity and also means the gross wages paid to an Employee by the Employer as reported on Form W-2 but does not include reimbursement for expenses or other expense allowances, fringe benefits, moving expenses, deferred compensation and welfare benefits or any gross wages in excess of the annual compensation limit in Section 401(a)(17) of the Code as adjusted from time to time. Only compensation received by an Employee during the applicable calendar year is taken into account.

    For Limitation Years beginning on and after January 1, 2001, Compensation paid or made available during such Limitation Year includes elective amounts that are not includible in the gross income of the an Employee by reason of Section 132(f)(4) of the Code.


  6. "Hour of Service"
    For purposes of this Article, an Hour of Service is defined in Section 1.12 of the Plan.


Section 8.02.     Rules for Participation of Non-Collectively Bargained Employees.
  1. Effective January 1, 1994, Non-Collectively Bargained Employees, including those employees described in subsections 8.01(a)(2), (3) and (4) may participate in the Plan on the terms and conditions set forth in this Article pursuant to a written agreement between the Employer of such Non-Collectively Bargained Employees and the Trustees.


  2. Non-Collectively Bargained Employees who are eligible to participate in the Plan are owners, officers and employees of incorporated Employers; officers and staff employees of Participating Sprinkler Local Unions and employees of trust funds affiliated with Participating Sprinkler Local Unions. Non-Collectively Bargained Employees of an Employer will not be eligible to participate in this Plan if they perform work of the type covered by a collective bargaining agreement in the building and construction industry (except the Sprinkler Industry) or perform work as a fabricator or truck driver. Owners of unincorporated Employers may not participate in the Plan.


  3. Non-Collectively Bargained Employees covered by this Agreement must provide services to the Employer and receive compensation for those services from the Employer. Whether or not an individual is an Employee of the Employer will be determined based upon whether the Employer is the employer of the individual for purposes of reports and tax returns filed with the Federal or state governments or agencies. Other information will be considered by the Trustees if necessary to determine whether an individual is employed by the Employer. The Employer agrees to furnish such information to the Trustees upon request.


  4. The Employer must keep adequate records of a Non-Collectively Bargained Employee's Hours of Service. The Employer must also keep adequate records to document the individual's eligibility to participate in the Plan. These records must be provided to the Trustees upon request.


  5. The Employer must make contributions on behalf of its Non-Collectively Bargained Employees to the National Automatic Sprinkler Industry Pension Fund for each Hour of Service. Contributions must be made at the rate established by the Collective Bargaining Agreement for journeyman Sprinkler Fitters employed by the Employer.


  6. Contributions as set out in subparagraph (e) above must be paid starting as of the date a Non-Collectively Bargained Employee performs an Hour of Service under an agreement requiring contributions to the Plan.


  7. Payments must be made at the time and in the manner established by the Trustees. The Trustees have the authority to retain an accountant or representative to review the records of the Employer to determine whether the correct contributions have been made.


  8. A Non-Collectively Bargained Employee will commence and terminate participation in the Plan in accordance with the provisions of Article II of the Plan.


  9. The participation in the Plan of the Non-Collectively Bargained Employees of an Employer for each Calendar Year is conditioned on the Employer's compliance with the requirements of the Plan and the requirements of Sections 401(a)(4) and 410(b) of the Code for that Calendar Year. A Non-Collectively Bargained Employee will not accrue a benefit under the Plan during a Calendar Year unless the Non-Collectively Bargained Employees of the Employer meet the requirements of Sections 401(a)(4) and 410(b) of the Code for that Calendar Year and the Employer provides the Plan with information deemed necessary by the Trustees to monitor compliance with the requirements of the Plan and the Code.

    If the Employer fails to provide information requested by the Trustees or fails to comply with the requirements of the Plan or the requirements of Sections 401(a)(4) and 410(b) of the Code, the Employer must immediately take appropriate and necessary remedial action. Such action may include the withdrawal of the Employer's Non-Collectively Bargained Employees from participation in the Plan, or the curing of the defect. If the Employer fails to take necessary and appropriate remedial action, the participation of its Non-Collectively Bargained Employees will terminate as of the end of the Calendar Year immediately preceding the Calendar Year in which it failed to comply or for which information or certifications to determine compliance was requested but not provided.


  10. In determining and certifying compliance with the coverage and non-discrimination requirements of the Plan and the Code, an Employer may use "substantiation quality data" as defined in IRS Revenue Procedure 93-42. In addition, an Employer may determine and certify compliance on the basis of the Employer's workforce on a single day during the Calendar Year (snapshot day) in accordance with IRS Revenue Procedure 93-42.


  11. In addition to the provision of subsection (i) the participation of its Non-Collectively Bargained Employees in the Plan will end upon termination of the agreement with the Trustees or upon termination of the Employer's Collective Bargaining Agreement.


Section 8.03 - Non-Bargaining Unit Employees - Interim Rules
  1. Effective January 1, 1990, no non-bargaining unit employee of an Employer will accrue a benefit under the Plan for a Calendar Year unless the participation of the non-bargaining unit employees of the Employer meets the requirements of Sections 401(a)(4), 401(a)(26) and 410(b) of the Code for that Calendar Year and the Employer provides the Plan with a written certification of such compliance or provides information necessary for the Plan to determine such compliance.


  2. In compliance with Alternative IID of IRS Notice 88-131, notwithstanding any other contrary provision of the Plan, in calculating the accrued benefit (including the right to any optional benefit provided under the Plan) of any non-bargaining unit Participant who is a Highly Compensated Employee within the meaning of Section 414(q)(1)(A) or (B) of the Code, such Highly Compensated Employee will accrue no additional benefit under the Plan on or after December 31,1988 to the extent that such additional benefit accrual exceeds the benefit which would otherwise accrue in accordance with the terms of the Plan as subsequently amended to comply with those qualification requirements described in Income Tax Regulations Section 1.401(b) - 1(b)(2)(ii)(TRA '86).

    This provision will be effective until the last day by which the Plan may be amended retroactively to comply with the TRA '86 for its first Calendar Year beginning in 1989 in order to remain qualified under the Code and will be effective for such period if and only if the subsequent Plan amendment to comply with TRA '86 is made on or before the last day by which the Plan may be amended retroactively to comply with TRA '86 for its first Calendar Year commencing in 1989 in order to remain qualified under the Code.

    In addition, the benefit accrued by any non-bargaining unit Highly Compensated Employee within the meaning of Section 414(q)(1)(A) or (B) of the Code will not exceed the benefit accrual provided during the 1989 Calendar Year with respect to such Participant under the terms of the Plan as subsequently amended to comply with the terms of TRA '86. However, such Highly Compensated Employee's benefit will not be less than what that Participant had accrued as of the last day of the last Calendar Year beginning before January 1, 1989.



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