FROM THE BOARD OF TRUSTEES

Background

The Bricklayers and Allied Craftworkers Local 74 Pension Plan was established on December 1, 1962 when the Bricklayers and Allied Craftsman No. 74 of DuPage County, Illinois and the South DuPage Mason Contractors’ Association jointly agreed on the establishment of a retirement plan for certain members of the Union.

Since the Plan was established, the pension program has grown substantially. This growth has allowed for periodic benefit increases.

The Plan provides retirement, disability and death benefits to eligible members and their spouses (or beneficiaries). The benefits provided under your Pension Plan are self-funded. This means that benefits are provided directly from the Pension Fund. Fund assets can be used only to provide retirement benefits and pay administrative expenses. All of your benefits are in addition to Social Security benefits.

Your Pension Plan is the result of collective bargaining between your Employer and your Union. Your Employer, and each Employer participating in the Fund, has entered into a Collective Bargaining Agreement requiring Employer contributions into the Fund on behalf of eligible employees. These Employer contributions pay for all the costs of the Plan - there is no cost to you. The conditions, under which your Employer makes contributions into the Fund, and the amount of the contributions, are specified in your Collective Bargaining Agreement.

Administration and Coverage

Information as to whether a particular Employer is participating in the Fund, and the address of such Employer, is available upon written request to the Fund Office. For information concerning the terms of your Collective Bargaining Agreement, contact the Fund Office.

The Pension Plan and Trust Fund are administered by a joint Board of Trustees, consisting of an equal number of Employer and Union representatives. The Trustees authorize benefit payments, and make all decisions regarding questions, interpretations and applications of Plan provisions. The procedures and rules, which the Trustees establish, are designed to insure the financial security of the Fund, and to provide for the equitable treatment of all participants. Only the Board of Trustees has the authority to alter the terms of the Plan or to modify the benefits provided by amending the Plan.

While the Board of Trustees has control over your Pension Plan, the Trustees are accountable to you for their actions and must prudently act solely in your interest under provisions of the federal law enacted to protect the interests of workers (the Employee Retirement Income Security Act of 1974). The Trustees periodically review the Plan, seeking ways of providing increased benefits whenever improvements can be made on a sound financial basis. Periodically, the Trustees will be sending you documents concerning your Pension Plan.

What is Contained in This Booklet

This booklet (Summary Plan Description) describes the Pension Plan and explains benefits that are provided. The eligibility requirements for participation in the Plan and benefit computation details are also provided. Circumstances that may result in disqualification, ineligibility or denial or loss of benefits are described. Also included are the procedures that you should follow when you want information concerning your pension benefit or when you actually apply for a pension, and the review procedures to be followed in the event an application is denied. In the event of any conflict between the information we have summarized in this booklet and the formal Plan documents, the Plan documents will govern.

The booklet should be carefully read so that you will become familiar with all of the benefits to which you are entitled. Please retain the booklet for future reference.

If you have any questions concerning your pension benefits or your eligibility for benefits under the Plan, please direct them to the Fund Office.

HIGHLIGHTS OF THE PENSION PLAN

Your Pension Plan provides the following once you have met the applicable eligibility requirements:

A MONTHLY PENSION FOR LIFE WHEN YOU REACH RETIREMENT AGE

PENSION BENEFITS THAT ARE IN ADDITION TO YOUR SOCIAL SECURITY BENEFITS

NORMAL RETIREMENT BENEFITS AS EARLY AS AGE 62

EARLY RETIREMENT BENEFITS AS EARLY AS AGE 55

BENEFITS IF YOU ARE DISABLED

BENEFITS IN THE EVENT OF YOUR DEATH EITHER BEFORE OR AFTER YOU RETIRE

THE RIGHT TO A PENSION IF YOU LEAVE COVERED EMPLOYMENT BEFORE YOU ARE READY TO RETIRE (VESTING)

DIFFERENT WAYS TO RECEIVE YOUR PENSION

This booklet is a Summary Plan Description of the Bricklayers and Allied Craftworkers No. 74 Pension Plan as amended and restated through December 1, 1999. This Summary Plan Description does not apply to former participants who retired or left Covered Employment prior to December 1, 1999. Instead, the provisions of the Plan in effect at the time of retirement or leaving Covered Employment would apply.

IMPORTANT TERMS

There are certain words and phrases that are frequently used throughout this description of your Pension Plan. The following “definitions” will help you to understand these words and phrases, and will aid in understanding your pension benefits.

Union

Bricklayers and Allied Craftworkers No. 74 of DuPage County, Illinois.

Employer

Any business organization which has entered into a Collective Bargaining Agreement with the Union or a Participation Agreement with the Trustees calling for contributions into the Pension Fund on behalf of its eligible employees. Information as to whether any particular Employer is participating in the Plan, and the address of that Employer, is available from the Fund Office upon written request.

Covered Employment

This is the time you work for an Employer in a position requiring Employer contributions into the Fund on your behalf. In certain situations, Covered Employment may also include your employment before the date Employer contributions to the Pension Fund were first made.

Pension Credits

Pension Credits are the years or units of years you must have worked in Covered Employment in order to qualify for pension benefits.

Service Credits

Service Credits are the years or units of years you have worked in Covered Employment and are used in the determination of your pension amount.

Benefit Units

Benefit Units are units based on the number of Hours in Covered Employment and are used in the determination of your pension amount.

Retirement

The period after you qualify for a pension under the Plan and start to receive monthly payments is considered retirement. To be considered in retirement there are certain types of employment which are prohibited. This is explained further, on page __.

PARTICIPATION IN THE PENSION PLAN

Who Can Become Covered Under the Plan?

Many Employers have entered into Collective Bargaining Agreements, or contracts, that require Employer contributions into the Pension Fund on behalf of their eligible employees. You are eligible for participation in the Pension Plan if:

you work for an Employer contributing into the Trust Fund, and

you work in a position requiring Employer contributions on your behalf (“Covered Employment”).

Employees of the Union or Employers who have entered into agreements with the Trustees calling for contributions into the Pension Fund are also eligible to participate, as are employees of the Bricklayers and Allied Craftworkers Local No. 74 Pension and Welfare Funds.

You become a participant in the Plan as soon as you have accrued 250 Hours in Covered Employment.

When Do I Receive My Benefits from the Plan?

Your vesting rights are determined by your years of Pension Credits. Your pension eligibility is also determined by your years of Pension Credits. Pension payments begin only when you have reached the required age and have sufficient years of Pension Credits. See below.

PENSION CREDITS, SERVICE CREDITS
AND BENEFIT UNITS

Your eligibility for a pension and your vesting status depends on your years of Pension Credits. The amount of your pension depends on both your Service Credits and your Benefit Units.

Pension Credits

The following schedule shows the Pension Credit, which you earn in a Calendar Year, based on the number of hours you worked in Covered Employment.

Hours Worked in Covered Employment In a Calendar Year	Plan Credit
1,000 or more	1 Pension Credit
750 through 999	3/4 Pension Credit
500 through 749	1/2 Pension Credit
250 through 499	1/4 Pension Credit
0 through 249	-0-

In certain situations (such as disability or military service) you may also receive Pension Credits while not working in Covered Employment.

Service Credits

Your Service Credits are used to determine the portion of your retirement benefit accrued prior to December 1, 1975. Your Service Credits are calculated based on the provisions of the Plan as in effect November 30, 1975.

Benefit Units

Beginning December 1, 1975, you earn Benefit Units during each Plan Year you are credited with at least 250 hours in Covered Employment or if you had 10 Pension Credits on December 1 of the Plan Year (five Pension Credits for participants with one or more hours worked on or after December 1, 1999 and for non-bargained participants). There is no maximum on the number of Benefit Units you can earn in a Plan Year. The greater your hours worked in Covered Employment, the greater your Benefit Units. The table below shows how your Benefit Units are determined.

Hours Worked in Covered Employment in a Calendar Year	Benefit Units^*	Hours Worked in Covered Employment in a Calendar Year	Benefit Units^*
0 - 99	0	1,300 - 1,399	13
100 - 199	1^**	1,400 - 1,499	14
200 - 299	2^**	1,500 - 1,599	15
300 - 399	3	1,600 - 1,699	16
400 - 499	4	1,700 - 1,799	17
500 - 599	5	1,800 - 1,899	18
600 - 699	6	1,900 - 1,999	19
700 - 799	7	2,000 - 2,099	20
800 - 899	8	2,100 - 2,199	21
900 - 999	9	2,200 - 2,299	22
1,000 - 1,099	10	2,300 - 2,399	23
1,100 - 1,199	11	2,400 - 2,499	24
1,200 - 1,299	12	ETC.^***

* THERE IS NO MAXIMUM ON BENEFIT UNITS.

** Certain restrictions apply.

*** In certain situations (such as disability or military service) you may also receive Benefit Units while not working in Covered Employment. The Fund Office can give you more information on how your Benefit Units are determined.

VESTING

Vesting refers to your ownership of the value of the pension benefit you have earned to date.

If your covered employment ends sooner than normal retirement, you are entitled to a percentage of the benefit you have earned as of the date you leave covered employment. The percentage is determined by your number of Pension Credits, as shown in the following table:

Pension Credits	Percent Vested *
Less than 5 At least 5 but less than 6 At least 6 but less than 7 At least 7 but less than 8 At least 8 but less than 9 10 or more	None 50% 60% 70% 80% 100%

* For a participant with one or more hours worked on or after December 1, 1999, a new vesting schedule applies. Under the new schedule, you are 0% vested with less than 5 pension credits and 100% vested once you earn 5 pension credits.

The percentage of benefit you have earned is called your Vested Accrued Benefit.

Note that when you reach normal retirement age while you are in Covered Employment, you are 100% vested in the benefit you have earned.

QUESTIONS ON PENSION CREDITS,
SERVICE CREDITS AND
BENEFIT UNITS

Why are my years of Pension Credits, Service Credits and Benefit Units important?

Your years of Pension Credits are one of the factors used to determine your eligibility for a pension - you must have a minimum of 5 years of Pension Credit before any pension benefits are payable. Both Service Credits and Benefit Units are used to determine the amount of your pension.

Will I receive a larger pension if I work longer?

Yes. The more Service Credits and Benefit Units you have earned, the greater your pension. You may postpone your retirement past your normal retirement date and retire at a later time and your retirement pension will be determined based on your Service Credits and Benefit Units up to your actual retirement date.

Which of my years of employment are counted?

All years during which you work in positions requiring Employer contributions on your behalf are counted.

Can I lose my previously earned Pension Credits and Benefit Units?

You may. If you incur a Break in Service, all previously accumulated service is lost. See pages _____.

If I work as a teenager or after age 62 65 will I still earn Pension Credits and Benefit Units?

Yes. There are no minimum or maximum age restrictions.

NORMAL RETIREMENT

Eligibility

You are eligible for a normal retirement pension when you have met the following requirements:

you have reached age 62, and

you have earned 5 or more years of Pension Credits.

You may retire and begin receiving a normal pension on or after your “normal retirement date” - the first day of the month following the date you meet both the age and service requirement.

Pension Amount

The amount of your monthly normal retirement pension is based on:

Your Service Credits and Benefit Units.

The benefit levels in effect at the time you left Covered Employment.

The amount of the normal retirement pension payable under the Plan has increased over the years. If you would like full history of the benefits in effect at various dates you can get one from the Fund Office.

Starting in December 1998, the monthly amount of Normal Retirement Pension, payable as a Life Only Pension, is:

$37.00 for each year of Service Credit accrued as of November 30, 1975

PLUS

$4.80 for each Benefit Unit accrued after December 1, 1975.

Following is an example of how your normal retirement pension is determined:

Let’s assume you began work in Covered Employment December 1, 1968, retired at age 62 on December 1, 1998 and had accrued 30 Pension Credits.

Your Normal Retirement Pension would be calculated as follows:

7 Service Credits accrued before 12/1/75 x $37.00 = $259.00.

PLUS

350 Benefit Units accrued from 12/1/75 through 11/31/98 x $4.80 = $1,680.00 (based on the following work history):

Year	Hours	Benefit Units	Year	Hours	Benefit Units

1975	1,300	13	1987	1,200	12
1976	1,200	12	1988	1,400	14
1977	1,700	17	1989	1,600	16
1978	1,500	15	1990	1,500	15
1979	1,500	15	1991	1,300	13
1980	1,100	11	1992	1,400	14
1981	1,500	15	1993	1,600	16
1982	1,300	13	1994	1,700	17
1983	1,400	14	1995	1,800	18
1984	1,800	18	1996	1,600	16
1985	1,700	17	1997	1,400	14
1986	1,300	13	1998	1,200	12
				TOTAL	350

Your monthly normal retirement pension, on a life only basis, is equal to:

$259 + $1,680 = $1,939.00.

If you are married, your benefits will be paid as a Joint and 50% Contingent Pension unless you and your spouse formally reject this form of payment in writing prior to retirement. With the Joint and 50% Contingent Pension in effect, you will receive a somewhat smaller monthly pension during your lifetime so that payments continue to your spouse after your death. Other optional forms of pension payment are also available. See pages ___-___ for more information and examples.

EARLY RETIREMENT

Eligibility

Retirement before age 62 is called early retirement. You are eligible for an early retirement pension when you have met the following requirements:

you have reached age 55, and

you have earned 5 or more years of Pension Credits.

You may retire and begin receiving an early pension on the first day of any month following your satisfying these requirements; however, an early pension that begins prior to age 62 is payable in a reduced amount because you will be receiving pension payments for a longer period of time.

Early Pension Amount

If you retire early, your pension will be calculated in the same way that your normal pension is calculated, using your Service Credits and Benefit Units based on the benefit levels in effect at the time you leave Covered Employment, but the amount you receive also depends on the date you choose payments to begin. If you retire and elect to have your pension payments begin before age 62, your early retirement pension is reduced because of your younger age at the time payments begin.

The monthly amount of Early Retirement Pension,
payable as a Life Only Pension is:
Pension Amount payable at age 62
TIMES
Vesting Percentage
TIMES
Early Retirement Percentage

To calculate the early pension amount payable during your lifetime only:

First, determine your normal pension payable at age 62 (see page __),

Second, multiply this amount by your Vesting percentage (see page ___), and

Third, multiply your Vested Accrued Benefit by the Early Retirement Percentage shown below:

Attained Age
At Retirement

Early Retirement Percentage*

65%

70%

75%

80%

85%

90%

95%

100%

*Based on reduction of five percent (5%) for each year that your pension commencement date precedes your 62nd birthday. Percentages are interpolated for age and months.

As with a normal retirement pension, your early retirement pension will be paid as a Joint and 50% Contingent Pension if you are married, unless you and your spouse elect otherwise prior to retirement. See page ___ to ___.

EXAMPLE: If your normal (age 62) pension amount is $700.00 and you are 90% vested but you decide to retire on your 59th birthday, your early pension amount would be $535.50. The early retirement amount is calculated as follows: Normal pension ($700) is multiplied by the vesting percentage (90%) and then multiplied by the early retirement percentage (85%) which equals the early pension ($535.50).
If Your Vested Accrued Benefit Amount Is	Your Early Pension Amount For Retirement Commencing At These Ages Would Be*
	55	57	59	61
$ 800	$520.00	$600.00	$680.00	$760.00
$ 900	$585.00	$675.00	$765.00	$855.00
$1,000	$650.00	$750.00	$850.00	$950.00
^*If 100% Vested

DISABILITY RETIREMENT

Eligibility

You are eligible for a disability retirement pension if you have met the following requirements:

you are permanently disabled, and

you have earned 5 or more Pension Credits, and

you incurred your disability prior to the fifth anniversary of the last day of your Covered Employment in a Plan Year for which you received Pension Credits, and before you received any other pension payments under the Plan.

You will be considered permanently disabled if, in the opinion of the Trustees, you have satisfactorily proven that a physical or mental condition permanently prevents you from performing your usual duties for an Employer, that such disability resulted from an unavoidable cause, and your disability entitles you to a Disability Insurance Benefit under the Federal Social Security Act.

Your disability pension is payable as of the first of the month following the date as of which your disability was incurred (or as of the first of the month next following the date in which any benefits from the Bricklayers and Allied Craftworkers Local 74 of DuPage County Welfare Fund have ceased, if later). Your disability pension is payable only for as long as you remain disabled. If you meet the requirements for an Early Retirement Pension (see page __) and file an application for a Disability Pension under the Plan, you will be given the option of electing a temporary Early Retirement Pension until the Board of Trustees approves your Disability Pension. For more information, please contact the Fund Office.

Pension Amount

Your monthly disability pension is your Vested Accrued Benefit.

A disability pension is payable during the continuation of your disability. You may be periodically required to submit proof to the Trustees of the continuance of the disability. Your disability pension will be paid as a Life Only Pension if you retire prior to age 62. When you reach age 62, you will be given an opportunity to elect the Joint and 50% Contingent Pension (or any other optional form of payment available under the Plan).

If you die prior to age 62, your spouse will receive the Surviving Spouse Pension (see page ____).

If you recover from your disability prior to your normal retirement date, you will no longer be eligible for a disability pension. If after your disability ends you go back to work and earn additional Pension Credits and Benefit Units, your pension when you retire will consider your total years of Pension Credits and Benefit Units under the Plan provisions then in effect.

DEFERRED VESTED BENEFIT

Eligibility

When you become “vested,” it means that your years of Pension Credits, Service Credits and Benefit Units previously earned cannot be lost, even if you stop working for Employers participating in the Plan. As a vested employee, you have a right to a pension beginning at your normal retirement date, or in a reduced amount as early as age 55, if you had 5 Pension Credits.

You will become vested, at any age, provided that you have earned 5 or more years of Pension Credits.

Once you are vested, you may apply for a normal or early pension when you retire, provided that you meet the age requirement for such pension.

Pension Amount

As a vested Participant, you are entitled to a monthly pension, beginning at your normal retirement date calculated the same as a normal or early retirement pension. Your normal retirement date is the first day of the month following your 62nd birthday or if later, the date you accrue 5 Pension Credits. You may choose to have your monthly pension begin in a reduced amount as early as age 55.

As with a normal or early pension, your vested pension will be paid as a Joint and 50% Contingent Pension Option if you are married unless you and your spouse elect otherwise prior to retirement. See page __.

You should apply for your vested pension in writing during the four-month period preceding the date you wish your pension payments to begin. It is to your advantage to obtain verification of your vested status as soon as you leave Covered Employment.

SURVIVOR PROTECTION

Survivor protection both before and after you retire is an important part of your Pension Plan. The Plan allows you to provide pension payments after your death to your spouse, or in some cases to some other person. Some of the survivor benefits are provided automatically, while others require an election. Since the choice of survivor benefits is an important retirement decision, please read the following sections carefully.

SURVIVOR PROTECTION

BEFORE YOU RETIRE

Surviving Spouse Pension

If you die before you retire, your spouse will receive a Surviving Spouse Pension provided that at the time of your death, you have earned five or more Pension Credits, and have not started receiving pension payments.

The Surviving Spouse Pension is payable to your Surviving Spouse if you are legally married at the time of your death. Application must be made to the Fund Office. The pension is payable monthly.

The Surviving Spouse pension is equal to 50% of your Vested Accrued Benefit. This amount will be reduced if your spouse is more than 5 years younger than you.

If you die after becoming eligible for benefits and you are at least age 55 at the time of your death, payments to your spouse will begin the first day of the month after your death. If you die after becoming eligible for benefits and before age 55, payments will begin to your spouse the first of the month after you would have reached age 45. Payments will continue for the life of your spouse.

After your spouse’s death (or if you are not married at the time of your death), the Survivor Pension is divided equally among your surviving dependent children. The benefit will be payable to the legal guardian of the children. Each child will receive this benefit until he or she marries, dies, or reaches age 21, whichever is earlier.

SURVIVOR PROTECTION AFTER YOU RETIRE
How Your Pension Will Be Paid When You Retire

Life Only Pension

If you are not married when your pension becomes payable, you will normally receive a monthly pension benefit for the rest of your life. This is called a Life Only Pension.

Joint and 50% Contingent Pension

If you are legally married to your spouse when your pension becomes payable, and if you and your spouse do not elect otherwise, you will receive a reduced pension payable during your lifetime. After your death, 50% of your pension will be paid to your surviving spouse for the rest of his or her life. This survivor protection for your spouse is called the Joint and 50% Contingent Pension.

If you do not want the Joint and 50% Contingent Pension, you must file a special election form with the Fund Office. You may choose the Life Only Pension, or one of the other optional forms of pension described on page ___.

When you apply for your pension, the Fund Office will calculate the amount of your pension as a reduced benefit under the Joint and 50% Contingent Pension, using the method described above, and also as an unreduced benefit under the type of pension for which you are eligible. This will give you a comparison of the benefits available to you so that you can make an informed decision. You and your spouse will then have a period of not less than 30 days to decide whether or not you want your pension paid as a Joint and 50% Contingent Pension. If you wish, you and your spouse can reject this “30 day waiting period” in writing and your pension can begin earlier.

You will receive your pension as a Joint and 50% Contingent Pension unless you and your spouse choose otherwise prior to retirement. After your death, your surviving spouse will receive, for his or her lifetime, 50% of your reduced pension. Because this pension arrangement usually results in benefit payments being paid over a longer period of time than under the Life Only Pension, your pension benefit is reduced. The percent of your Life Only Pension that you will receive under the Joint and 50% Contingent Pension is shown in the following Table. The Table takes into consideration your age and your spouse’s age at retirement.

Your Spouse’s Age	Your Age When Your Pension Benefits Start
	55	57	60	62
53	89.71%	88.07%	85.20%	82.98%
55	90.39	88.82	86.02	83.86
57	91.13	89.56	86.92	84.75
60	92.13	90.74	88.21	86.18
62	92.89	91.48	89.18	87.15
65	93.81	92.65	90.47	88.67

The Table expresses the percentage reductions only for the Joint and 50% Contingent Pension. Any early pension reduction is in addition to the reductions shown in the Table.

To use the Table, find your age and your spouse’s age at retirement, and identify the percentage figure. Multiply your normal or early pension amount by the percentage figure. The result is your pension with the Joint and 50% Contingent Pension in effect. One-half of that amount would be payable to your spouse after your death.

For example: If you are age 62 and your spouse is also age 62, your Joint and 50% Contingent Pension from the table is 87.15%. If we assume that your unreduced pension at age 62 is $900.00, then your pension under the Joint and 50% Contingent Pension is $784.35 ($900.00 x 87.15%). After your death, your spouse would receive $392.18 per month ($784.35 x 50%). See page ___ for information on how to calculate your normal pension amount.

What other forms of Pension provide Survivor Protection?

In addition to the Joint and 50% Contingent Pension, you can provide survivor protection to either your spouse, or another person, by electing the: Joint and 100% Contingent Pension Option, Joint and 100% Pop-Up Contingent Pension Option, Joint and 50% Contingent Pension Option, Joint and 50% Pop-Up Contingent Pension Option, Ten Year Certain and Life Option, or Five Year Certain and Life Option described below. You may elect, change or revoke an Option at any time during the 90-day period prior to the date your pension commences.

100% or 50% Contingent Pensioner Option

If you want to provide a larger survivor benefit to your spouse, or a survivor benefit to another person, you have to elect either the 100% or 50% Contingent Pension Option in writing prior to retirement.

Under the Contingent Pension Option, you would receive a reduced pension payable during your lifetime, and after your death, 100% or 50 % (whichever you selected) of your reduced pension will be payable to the person you designate as your contingent pensioner for life.

Certain other restrictions apply to this benefit option and you should ask the Fund Office for estimates before you intend to retire.

100% or 50% Pop-Up Contingent Pension Option

If you want to (a) provide a larger survivor benefit to your spouse, or a survivor benefit to another person, and (b) have the opportunity to cancel the survivor benefit if your survivor dies before you do, you have to elect either the 100% or 50% Pop-Up Contingent Pension Option in writing prior to retirement.

Under the Pop-Up Contingent Pension Option, you would receive a reduced pension payable during your lifetime, and after your death, 100% or 50 % (whichever you selected) of your reduced pension will be payable to the person you designate as your contingent pensioner for life. If your contingent pensioner dies before you do, your pension will be increased (or “pop-up”) to the single-life benefit amount.

The exact amounts payable to you and to your contingent pensioner depend upon your ages at the time you retire. If you are married your spouse’s written consent is required if you elect this optional form of payment. Certain other restrictions apply to this benefit option and you should ask the Fund Office for estimates before you intend to retire.

Ten Year Certain and Life Option

If you want to provide for survivor protection in the event of your death within 10 years after retirement, you may elect the Ten Year Certain and Life Option in writing prior to retirement. Under a Ten Year Certain and Life Option, you will receive a benefit for the rest of your life; however, your pension payments are guaranteed for a minimum of 10 years. If you die within 10 years after you retire, your beneficiary would continue to receive the same benefit you were receiving for the balance of the 10 years (120 months). After a total of 120 monthly payments are made, payments to your beneficiary would stop. Your beneficiary is designated by you and does not have to be your spouse. If you are married, your spouse’s written consent is required if you elect this optional form of payment.

Ask the Fund Office for estimates before you intend to retire.

Five Year Certain Life Option

If you want to provide for survivor protection in the event of your death within five years after retirement, you may elect the Five Year Certain and Life Option in writing prior to retirement. Under a Five Year Certain and Life Option, you will receive a benefit for the rest of your life; however, your pension payments are guaranteed for a minimum of 5 years. If you die within 5 years after you retire, your beneficiary would continue to receive the same benefits you were receiving for the balance of the 5 years (60 months). After a total of 60 monthly payments are made, payments to your beneficiary would stop. Your beneficiary is designated by you and does not have to be your spouse. If you are married, your spouse’s written consent is required if you elect this optional form of payment.

Ask the Fund Office for estimates before you intend to retire.

LOSS OF PENSION CREDITS
AND BENEFIT UNITS

The Pension Plan is designed to provide retirement benefits to employees who have long and continuous years of service prior to retirement with Employers participating in the Fund. As you work for a participating Employer, you continue to earn additional Pension Credits, and Benefit Units. The longer you work for an Employer, the greater your pension will be. Although you may intend to continue your employment with participating Employers until you retire, there may be situations that will prevent you from continuing to work for Employers that contribute on your behalf into the Fund. You should therefore be aware of the circumstances that could cause you to lose or forfeit your benefits under this Plan.

PRIOR TO RETIREMENT - BREAK IN SERVICE

If you incur a Break in Service, all of your previously earned years of service are permanently cancelled. If you are vested (5 Pension Credits) however, your years of service cannot be cancelled - if you are vested you cannot incur a Break in Service. See page __.

Break Year

You will have incurred a Break Year for each Plan Year that you do not earn at least 1/4 Pension Credit. There are certain situations, which will entitle you to non-working credits and prevent you from incurring a Break in Service. If you think you have an unusual situation contact the Fund Office for additional information.

Break in Service

If you are not vested, you will incur a permanent Break in Service and lose all of your previously earned years of Pension Credits, Service Credits and Benefit Units when the number of consecutive Break Years equals 5 years.

Break in Service Examples

If a member leaves Covered Employment in 1997 after earning 3 years of Pension Credits, those 3 years will be permanently cancelled on December 1, 2002 (after 5 Break Years) unless additional Pension Credit is earned before December 1, 2002. Service Credits and Benefit Units would also be cancelled

If a member leaves Covered Employment in 1997 after earning 5 or more years of Pension Credits, the member will not incur a Break in Service since he or she is vested.

Maternity/Paternity Absences and Family and Medical Leave

In general, if you are absent from work due to pregnancy, birth, adoption or immediate post-natal child care, you will be credited during such period of absence with the additional hours of service required to prevent a Break in Service in the year of the absence, or the following year. These hours are credited solely for purposes of determining a Break in Service.

In addition, you will be credited with hours of service to avoid a Break in Service during periods of approved Family and Medical Leave.

What if I return to Covered Employment after a Break Year?

If you return to Covered Employment after one or more Break Years, but before a permanent Break in Service, your pension when you retire will consider all of your Pension Credits, Service Credits and Benefit Units both before and after the Break Year(s). If you return to Covered Employment after two Break Years, your benefit will be based on the sum of the following:

Service Credits and Benefit Units for the service before the break, times the benefit level in effect at the time you had your first break year,

PLUS

your Benefit Units after the break times the benefit level currently in effect.

Depending on the length of the break, different benefit levels may be applicable in determining your pension amount.

What if I return to Covered Employment after a Permanent Break in Service?

A Permanent Break in Service permanently cancels all of your previously accumulated years of Pension Credits, Service Credits and Benefit Units. If you return to work after a Permanent Break in Service, when you return to work you will be considered a new employee with no previous service.

Will I receive a refund of money paid on my behalf by my Employer if I leave Covered Employment prior to retirement?

No. Contributions made by Employers are deposited into the Pension Trust Fund, which is used for the exclusive benefit of Plan participants. Since the Pension Plan was designed to provide pension benefits to employees who become eligible under the Plan, refunding Employer contributions to employees leaving Covered Employment before qualifying for a pension would not fulfill the purpose of the Plan.

AFTER RETIREMENT - RETURN TO WORK

Once you retire and begin receiving pension payments you cannot lose your pension. Payments will be suspended, however, for certain months during which you work in Covered Employment or industry employment, as described below:

If you are under age 62, your pension will be suspended for all of the months during which you work one (1) or more hours in Covered Employment or in industry employment; or

If you are age 62 or older, your pension will be generally suspended for months during which you work more than 40 hours in Covered Employment or industry employment. There is one exception to this rule. You may work up to 80 hours per month during the months of May through October of each calendar year and your pension will not be suspended for those months. However, prior application to return to work is required and must be approved by the Board of Trustees.

Pension payments will resume when you discontinue such employment.

Contact the Fund Office for specific information if you are contemplating returning to work.

SOCIAL SECURITY BENEFITS

What can I expect from Social Security?

This section is meant to give you a brief introduction to Social Security. Your actual Social Security benefits are based on certain of your earnings subject to Social Security taxes. You may go contact your local Social Security office for a record of your past wages that were subject to Social Security taxes. You can also request from them a booklet, which explains in detail how to figure your Social Security, benefits, as well as a personalized estimate of your benefits.

During your work career, both you and your Employer pay an equal amount of tax on your behalf to the Social Security program. You may receive benefits from Social Security in addition to the benefits you will get from the Pension Plan. Social Security benefits may be payable in the event of your death or disability as well as retirement. With the amendments made to the Social Security Act in recent years, these benefits have become a substantial part of your total benefit program.

Retirement Benefits

You may be entitled to receive unreduced Social Security monthly income benefits when you reach age 65. When your spouse reaches age 65, he or she is entitled to a benefit equal to one-half of your age 65 benefit, or, if greater, a benefit based on his or her own work record. Social Security retirement benefits are payable as early as age 62, but at a permanently reduced amount.

Death Benefits

Your family may also be entitled to Social Security benefits after your death. If you die leaving dependent children, family benefits may be payable until your children reach age 18 (or age 19 if they are still in high school). After your children grow up, your spouse may be entitled to start receiving Social Security benefits again when he or she reaches age 60.

Disability Benefit

If you become disabled, you and your family may be entitled to Social Security disability benefits. They become payable after you have been totally disabled for 5 full calendar months. Your dependent spouse is entitled to additional benefits from Social Security if he or she is at least age 62 or is caring for a child eligible for children’s Social Security benefits. Additional children’s Social Security benefits are payable if you have any dependent children under age 18 (under age 19 if they are still in high school).

Working After Social Security Benefits Start

In 1999, if you are 65 or older but under age 70 at any time during the year, you can earn $15,500 without losing any benefits ($17,000 in 2000). One dollar of each $3 of your earnings in excess of these limits is deducted from the benefits paid to you and to members of your family getting benefits based on your account.

For example, in 2000 if you are age 66, you can earn up to $17,000 in that calendar year and still continue receiving the same monthly Social Security benefits you would receive if you were not working. If you earn $20,000 in 2000, $1,000 will be deducted from your Social Security benefits for that year (one dollar for each $3 of your earnings in excess of $17,000).

If you are under age 65 for the whole year you can earn $9,600 ($10,080 in 2000) without losing any benefits. One dollar of each $2.00 of your earnings in excess of these limits is deducted from the benefits paid to you and to members of your family getting benefits based on your account.

For more information about working after Social Security benefits begin, contact the Social Security Administration at 1-800-772-8213 and request a copy of Publication 05-10069 (How Work Affects Your Benefits). You can also get a copy of the Publication from the SSA Website at http://ssa.gov/pubs/.

APPLYING FOR A PENSION

How do I apply for a pension?

Notify the Fund Office well in advance of the date you plan to retire. When applying for a pension, you will be provided with a pension application and instructions for submitting the application together with other required forms and information.

When should I apply for my pension?

You should file your application with the Trustees at the Fund Office at least 4 months in advance of the date you expect your pension benefit to begin. If you delay in filing your application, the payment of your pension might be delayed, too.

Must I submit proof of my age with my pension application?

Yes. Instructions describing the types of acceptable proof of age will be given to you with your application. You will also be asked to submit proof of your spouse’s age and proof of your marriage.

Who will decide if I am eligible for a pension?

The Board of Trustees who are bound by the provisions of the Pension Plan will decide if you meet the eligibility requirements for a pension. The Trustees are the sole judges in reviewing the documents you submit with your application and in interpreting the Plan Provisions.

When will my pension benefits begin?

Your pension payments will begin on the first day of the month following your eligible retirement date and approval of your application by the Trustees. There will generally be no payment for the months prior to the date you file your application even if you were eligible (except if you are age 62 or older and you have not been working in suspendable employment).

Can I delay my pension benefits indefinitely?

No. Federal law requires that your pension payments begin no later than April 1 of the calendar year following the calendar year you reach age 70-½

What happens if I give wrong answers or misrepresentations on any pension application?

Before you submit your application to the Fund Office, check it over carefully. Any wrong answers or misrepresentations can cause you to lose or be denied your pension benefits. Any payments made because of wrong information or a misrepresentation can cause your pension to be cancelled and will permit the Trustees to recover all payments made in error.

How does a surviving spouse file for a pension?

As soon as possible after the death of the participant, the spouse should contact the Fund Office to request instructions about filing an application for a pension. A copy of the death certificate for the participant will be requested.

What if I am only thinking about retiring?

You may request a statement of your total earned pension benefit, including your vested pension benefit, if any, or the earliest date at which you will become vested. Such request should be made in writing and may not be made more often than once a year. If you are considering retirement or are interested in your pension status, we suggest that you contact the Fund Office.

How do I contact the Fund Office?

When you are ready to retire, or if you would like an estimate of your pension benefit, contact the Fund Office and request the appropriate forms.

Fund Office
Bricklayers and Allied Craftworkers Local No. 74
Pension Fund
6422 South Cass Avenue
Westmont, Illinois 60559

(630) 964-7300

When writing or telephoning the Fund Office please give your name, Social Security number, home address and telephone number and your Employer’s name and address.

If I owe money, can I sign over my pension benefit?

No. Benefits cannot be sold, assigned, or pledged as security for a loan and to the extent permitted by law, benefits are not subject to garnishment or attachment.

However, the Plan must recognize a Qualified Domestic Relations Order.

What is a qualified domestic relations order?

A “domestic relations order” is a “Qualified Domestic Relations Order” (QDRO) if it creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable to a participant under a plan, specifies required information, and does not alter the amount or form of plan benefits.

An “alternate payee” is a spouse, former spouse, child or other dependent of a participant who is recognized by a domestic relations order as having a right to receive all, or a portion of, the benefits under a plan with respect to the participant.

Thus, if a Qualified Domestic Relations Order requires the distribution of all or part of your benefits under the Plan to an alternate payee, the Trustees are required to comply with the order.

If you would like to obtain a copy of the Plan’s procedures for Qualified Domestic Relations Orders, please contact the Fund Office and they will provide you with a copy, free of charge.

What happens if I am too ill to manage my own affairs?

The Trustees may pay any benefits due you to your legal guardian, legal representative or, in their absence, to any other individual the Trustees consider entitled to receive them for you, provided that individual submits proper documentation to the Trustees.

Can I receive a lump sum payment of my pension benefit?

Generally no. However, if your monthly pension benefit under the Plan is small and the total lump sum “actuarial present value” is $5,000 or less, the Board of Trustees will make a lump‑sum payment of your entire benefit to you. Lump-sum distributions are eligible for tax-free rollover. A payment that is eligible for rollover can be taken in two ways. You can have all or any portion of your payment either paid in a direct rollover or paid to you. This choice will affect the tax you owe.

If, for example, you receive a lump-sum distribution you may roll over all or part of it to your individual retirement account (IRA) or another qualified retirement plan. If you do not choose to roll over this lump sum payment, federal law requires the Fund to withhold 20% of the total amount for federal tax purposes.

Federal law requires the Fund Office to provide you with a timely “Special Tax Notice Regarding Plan Payments” which describes your rights and obligations regarding rollovers and withholding requirements. You should also consult your tax advisor before you begin receiving a benefit from the Plan.

Is there a limit on the amount of pension I can receive from the Plan?

Under very limited circumstances. Section 415 of the Internal Revenue Code may limit the monthly pension a participant can receive from the Plan. In the unlikely event your benefit is limited due to Section 415, the Fund Office will contact you with more information.

APPEAL AND REVIEW PROCEDURES

If my pension application is denied, how do I appeal?

If your application for pension benefits is denied in whole or in part, or if you believe an error has been made in the calculation of your pension, you will receive a written explanation which will include the specific reason or reasons for denial, the Plan provisions on which the denial is based, a description of additional material or information, if any, required to perfect your application, and an explanation of the Claims Review Procedure.

If you do not agree with the denial decision, you are entitled to a full and fair review of your application. You or your authorized representative have certain rights in appealing the denial decision:

the right to submit additional proof of entitlement to benefits;

the right to examine any document in the possession of the Plan which relates to your application;

the right to appeal the denial decision to the Board of Trustees.

Your appeal must be in writing and must be filed within sixty (60) days after you have been notified of the denial of your benefits. Your statement must set forth your reasons for disagreement with the denial and should include any supporting documents or additional comments related to your appeal. The appeal must be submitted to:

Bricklayers and Allied Craftworkers Local No. 74
Pension Fund
6422 South Cass Avenue
Westmont, Illinois 60559

You or your authorized representative may request to appear before the Board of Trustees, or the Trustees may require your personal attendance at a hearing regarding your review. You will be notified if your request is granted, or if your attendance is required.

A full and complete review of your appeal will be made. You will receive a written decision within sixty (60) days after receipt of your written request for an appeal, unless special circumstances require an extension of time for processing, in which case the decision shall be rendered as soon as possible, but not later than one hundred twenty (120) days after receipt of your request for review. Such decision is final.

PENSION BENEFIT GUARANTY CORPORATION

Your pension benefits under this plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. If the plan terminates (ends) without enough money to pay all benefits, the PBGC will step in to pay pension benefits. Most people receive all of the pension benefits they would have received under their plan, but some people may lose certain benefits.

The PBGC guarantee generally covers: (1) normal and early retirement benefits; (2) disability benefits if you become disabled before the plan terminates; 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 for the year in which the plan terminates; (2) some or all of benefit increases and new benefits based on plan provisions that have been in place for fewer than 5 years at the time the plan terminates; (3) benefits that are not vested because you have not worked long in enough in covered employment; (4) benefits for which you have not met all of the requirements at the time the plan terminates; (5) certain early retirement payments (such as supplemental benefits that stop when you become eligible for Social Security) that result in an early retirement monthly benefit greater than your monthly benefit at the plan’s normal retirement age; and (6) 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 202- 326-4000. Additional information about the PBGC’s pension insurance program is available through the PBGC’s website on the Internet at http://www.pbgc.gov.

What is Contained in This Booklet

QUESTIONS ON PENSION CREDITS, SERVICE CREDITS AND BENEFIT UNITS

SURVIVOR PROTECTION AFTER YOU RETIRE How Your Pension Will Be Paid When You Retire

Working After Social Security Benefits Start

QUESTIONS ON PENSION CREDITS,
SERVICE CREDITS AND
BENEFIT UNITS

SURVIVOR PROTECTION AFTER YOU RETIRE
How Your Pension Will Be Paid When You Retire