Section 1: Definitions • Section 2: Participation • Section 3: The Individual Accounts • Section 4: Benefits & Eligibility • Section 5: Forfeitures •Section 6: General Provisions • Section 7: Amendment and Termination • Section 8: Roll-Over Distribution

 

SECTION I. DEFINITIONS
1.01. Agreement and Declaration of Trust. The term "Agreement and Declaration of Trust" as used herein shall mean the Agreement and Declaration of Trust entered into as of August 9, 1979 establishing the ITPEU Pension Fund, including any amendments thereto or modifications thereof.

1.02. Pension Fund. The term "Pension Fund" or "Fund" shall mean the ITPEU Pension Fund, comprising this Plan, the Agreement and Declaration of Trust referred to in Section 1.01 hereof, and the Collective Bargaining Agreements referred to in Section 1.08 hereof.

1.03. Plan. The term "Plan" as used herein shall mean the rules and regulations hereinafter set forth. The ITPEU Plan is designated as a profit-sharing plan pursuant to Section 401(a)(27)(B) of the Internal Revenue Code.

1.04. Trustees. The term "Trustees" as used herein shall mean the Board of Trustees established by the Agreement and Declaration of Trust and the persons who at any time are acting in such capacity pursuant to the provisions of that Agreement.

1.05. Union. The term "Union" shall mean the Industrial, Technical & Professional Employees Union, AFL-CIO, and any designated affiliate thereof, American Federation of Special Police and Security Officers ('AFSPSO') and American Federation of Special Police Association ('AFSPA').

1.06. Employer. The term "Employer" or "Employers" shall mean any Employer who is, or who hereafter becomes, obligated to contribute to the Pension Fund pursuant to the terms of a collective bargaining agreement, or other written instrument, with the Union.

1.07. Employee. The term "Employee" or "Employees" shall mean such employees on whose behalf an Employer or the Union has agreed to make contributions to the Pension Fund.

1.08. Collective Bargaining Agreement. The term "Collective Bargaining Agreement" shall mean any collective bargaining agreement now or hereafter in effect between any Employer and the Union which provides for contribution by such Employer to the Pension Fund.

1.09. Individual Account. The term "Individual Account" shall mean the account established for each Employee, pursuant to Section 3 of the Plan.

1.10. Valuation Date. The term "Valuation Date" shall mean either September 30 or March 31.

1.11. Retires. The term "Retires" or "Retired" shall mean the complete withdrawal by an employee from any employment with an Employer as defined in Section 1.06 hereof.

1.12. Market Value. The term "Market Value" shall mean the value of the assets which takes into account fair market value.

1.13. Accumulated Share. The term "Accumulated Share" shall mean the amount payable from an Individual Account as defined and described in Section 4.01.

1.14. Beneficiary. The term "Beneficiary" as used herein shall mean a person, other than an Employee, who is receiving or entitled to receive benefits from the Plan because of designation for such benefits by a Participant or because of the provisions of the Plan.

1.15. Participant. The term "Participant" shall mean any Employee who has qualified for participation in the Plan in accordance with the provisions hereinafter set forth, and remains a participant thereof.

1.16. Fiscal Year and Plan Year. The term "Fiscal Year" and "Plan Year" shall mean any period from October 1 through the following September 30.

1.17. Year of Service.
a) The term "Year of Service" with respect to any Employee or Participant commencing employment with any Employer prior to April 1, 2001 shall mean any period of twelve (12) consecutive months beginning on the date such Employee or Participant commences employment with any Employer, or any anniversary thereof, during which period such Employee or Participant performs at least six hundred (600) hours of service, provided, however that an Employee or Participant shall receive credit, for vesting purposes only, for years of service accumulated under either of the following additional circumstances: 

1. All calendar years during which he performs six hundred (600) hours of service in the employment of an Employer prior to such Employer becoming a party to a Collective Bargaining Agreement; or 
2. All consecutive twelve (12) month periods during which the Participant performs six hundred (600) hours of service in a unit at an installation immediately prior to the effective date of a Collective Bargaining Agreement covering such unit, so long as the Participant is an Employee in such unit on the effective date of such Collective Bargaining Agreement. 

b) The term "Year of Service" with respect to any Employee or Participant commencing employment with any Employer on or after April 1, 2001 shall mean any period of twelve (12) consecutive months beginning on the date such Employee or Participant commences employment with any Employer, or any anniversary thereof, during which period such Employee or Participant performs at least one thousand (1,000) hours of service, provided, however, that an Employee or Participant shall receive credit, for vesting purposes only, for years of service accumulated under either of the following additional circumstances: 

1. All calendar years during which he performs 1,000 hours of service in the employment of an Employer prior to such Employer becoming a party to a Collective Bargaining Agreement; or 
2. All consecutive twelve (12) month periods during which the Participant performs one thousand (1,000) hours of service in a unit at an installation immediately prior to the effective date of a Collective Bargaining Agreement covering such unit, so long as the Participant is an Employee in such unit on the effective date of such Collective Bargaining Agreement. 

c) "With respect to any Employee or Participant whose interest in his or her Accumulated Share has not vested prior to April 1, 2008 in accordance with Section 4.02 hereof, the term "Year Of Service" shall mean any period of twelve (12) consecutive months ending on or after April 1, 2008, on an annual anniversary date of the commencement of such Employee or Participant's employment with any Employer, during which period such Employee or Participant performs at least 800 hours of service." 

1.18. Hour of Service. The term "Hour of Service" shall mean with respect to any Employee or Participant:

1. Each hour for which he is either directly or indirectly paid or entitled to payment by an Employer for the performance of duties. Such hours shall be credited to the Employee for the computation period or periods in which the duties are performed; and
2. Each hour for which an Employee is directly or indirectly paid or entitled to payment by an Employer for reasons (such as vacation, sickness, disability, or holidays) other than for the performance of duties. Such hours shall be credited to the Employee pursuant to Section 2530.200b-2 of the United States Department of Labor Regulations, which are incorporated herein by this reference; and
3. Each hour for which back pay, irrespective of litigation of damages, has either been awarded or agreed to by an Employer. Such hours shall be credited to the Employee for the computation period or periods to which the award or agreement pertains rather than the computation period in which the award, agreement or payment was made.
4. For vesting purposes only, all hours of leave under the Federal Family and Medical Leave Act shall be considered an 'Hour of Service'.

1.19. Contributions. The term "Contributions" shall mean the payments required to be made to the Fund by an Employer pursuant to a collective bargaining agreement.

1.20. Installation. The term "Installation" shall mean all facilities covered by a collective bargaining agreement (and service contract when pertinent), or any individual facility therein, regardless of geographical location.

1.21. Qualified Domestic Relations Order. The term "Qualified Domestic Relations Order" shall mean any order signed by a judge or a court of record pursuant to the Domestic Relations Law of any State of the United States relating to a property settlement, child support or alimony, provided the order meets the following requirements:

1. The Participant and the "alternate payee" (the person who is to share in the Participant's benefit) must be specifically identified with mailing addresses;
2. The order must clearly state what is to be paid to the alternate payee and when;
3. The order generally may not require payments in a form or under an option not otherwise provided by this Plan; and
4. It may not require this Plan to pay benefits greater than the benefits provided herein.

1.22. Qualified Joint and Survivor Annuity. The term "Qualified Joint and Survivor Annuity" shall mean an annuity for the life of the Participant with a survivor annuity for the life of the Participant's spouse which is not less than fifty (50%) percent and not more than one hundred (100%) percent of the amount of the annuity which is payable during the joint lives of the Participant and the spouse and which is the amount of benefit which can be purchased with a Participant's Accumulated Share.

For purposes of this Plan, the percentage of the survivor annuity shall be fifty (50%) percent.

1.23. Seasonal Employment. The term "Seasonal Employment" shall refer to all employment by an Employer between Memorial Day and Labor Day (inclusive) during any single calendar year.

1.24. Eligible Rollover Distribution. The term 'Eligible Rollover Distribution' shall mean any distribution to a participant of all or any portion of the balance of such participant's Accumulated Share, subject to the provisions of Section 402(c)(4) of the Internal Revenue Code.

1.25. Eligible Retirement Plan. The term 'Eligible Retirement Plan' shall refer to an individual retirement account described in Section 408(a) of the Internal revenue Code, an individual retirement annuity described in Section 403(a) of the Code, or a Qualified Trust described in Section 401(a) of the Code that accepts a participant's eligible rollover distribution. Effective January 1, 2002, an Eligible Retirement Plan shall also mean an annuity contract described in Section 403(b) of the Code and an Eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan. The definition of Eligible Retirement Plan shall also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relation order, as defined in Section 414(p) of the Code. An eligible rollover distribution described in IRC section 402(c)(4), which a participant can elect to roll over to another plan pursuant to IRC section 401(a)(31), excludes hardship withdrawals as defined in IRC 401(k)(2)(B)(i)(IV) which are attributable to the Participant's elective contributions under Treasury Regulation section 1.401(k)-1(d)(2)(i).

1.26. Direct Rollover. The term 'Direct Rollover' shall refer to a payment by the Fund to an Eligible Retirement Plan specified by a Participant.

1.27. Dependent Children. The term 'Dependent Children' shall refer to any of the following:

1. Unmarried children from date of birth to 19 years, provided such children either reside with the Employee or receive substantial support from such Employee;
2. Unmarried children between the ages of 19 and 25 years, provided they are solely dependent upon the Employee for support and are regularly attending an accredited college or university, or regularly attending an accredited school;
3. Any Employee's unmarried child, regardless of age, who is incapable of self-support because of physical handicap or developmental disability and who is dependent upon the Employee for support. Such a child shall be considered a Dependent Child if his or her incapacity began before he or she reached the age of 19 years, or 25 years if he or she attended an accredited college or university as set forth above. Proof of such a child's incapacity must be furnished to the Board of Trustees no later than 31 days after the child reaches the age limit in question. Proof of the continued existence of such incapacity may be required by the Board of Trustees from time to time.

SECTION 2. PARTICIPATION 

2.01. Date of Participation — Present Employees. Each present Employee of an Employer shall become a Participant in the Plan on the date that his Employer agrees in writing to be bound by the terms and provisions of this Plan.

2.02. Date of Participation — Future Employees. Each Employee who enters into the service of an Employer after the date on which such Employer agrees to be bound by the terms and provisions of this Plan shall become a Participant in the Plan on the first day of such employment.

SECTION 3. THE INDIVIDUAL ACCOUNTS 

3.01. Establishment of Individual Accounts. As of each Valuation Date following the adoption of this Plan, an Individual Account shall be established for each Employee unless an Individual Account has already been so established.

3.02. Valuation of Individual Accounts.
A) As soon as practicable after each Valuation Date, the Trustees shall determine and fix the amount in Individual Accounts which had been established as of the last preceding valuation date and which had not been terminated on that valuation date. The amount in each Individual Account shall be determined as follows:

1. Determine the net assets of the Pension Fund available for benefits as of the last preceding Valuation Date, less the total of all Individual Accounts terminated, subsequent to the last preceding Valuation Date. 
2. Determine the net assets of the Pension Fund available for benefits as of the new Valuation Date, less the total of all contributions received for non-terminated Individual Accounts during the period in question. 
3. Determine the amount to be distributed by deducting (1) from (2). 
4. Determine the net investment income percentage to be applied to each Individual Account by dividing (3) by (1). 
5. Ascertain the amount of contributions actually made on behalf of the employee to his Individual Account between the two Valuation Dates. 
6. Take the amount as of the last preceding Valuation Date, in each Individual Account which was in existence on both Valuation Dates, and increase it by the percentage in (4) and then add (5). The result is the amount in each Individual Account as of the new Valuation Date. 

B) The calculation of net assets available for Plan benefits shall not include contributions receivable, but not collected as of the date of the Valuation in question. 

3.03. No Vesting. The fact that Individual Accounts are established and valued as of each Valuation Date shall not give any Employee or others any right, title or interest in the Fund or its assets, or in the Individual Account, except at the time or times and upon the terms and conditions herein provided.

SECTION 4. BENEFITS AND ELIGIBILITY 

 

4.01. Determination of Accumulated Share. 
A) Upon the happening of any event calling for the payment of any benefit from this Fund, the amount to be paid, subject to the specific provisions of the following sections, shall be the Participant's "Accumulated Share" determined as of the date of the event, as follows:

1. Determine the Participant's Individual Account as of the last preceding Valuation Date.
2. Add to (1) all Contributions received on behalf of the Participant since the last preceding Valuation Date. Resultant total shall be the Participant's "Accumulated Share".

B) For the purpose of determining the Accumulated Share pursuant to paragraph (A) of this Section the happening of the event calling for a payment shall be deemed to be the month preceding the month in which payment of the Participant's "Accumulated Share" is made to the Participant by the Trustees. 

4.02. Vesting. The interest of a Participant in his Accumulated Share shall be One Hundred Percent (100%) vested by any of the following events:

1. The completion of one (1) year of service; or
2. Permanent layoff from employment arising out of the closing for a period of not less than 120 days of the installation where the Participant was employed, or a determination by the appropriate procurement agency to terminate or suspend for a period of not less than 120 days, the contracting out of work pursuant to service contract at the installation where the Participant was employed.
3. The death of such Participant during any period of employment with an Employer or as the result of any illness or condition which commenced during such period of employment.
4. The completion of one thousand (1,000) hours of service during any consecutive three (3) year period of "Seasonal Employment" as defined at Section 1.23 of this Plan.
5. A Participant attains age 62 while employed pursuant to a Collective Bargaining Agreement.

4.03. Military Service.
A) If a Participant shall have been absent from the service of an Employer because of service in the Uniformed Services of the United States and if he shall have returned to the service of the Employer having applied to return while his reemployment rights were protected by law, he shall be deemed to have continued during such period to be a Participant.

B) Effective as of December 12, 1994, if the conditions of (A) above are satisfied, the Employer shall contribute to this Plan on such Participant's behalf the amount necessary to provide any additional allocation to which such Participant is entitled under Section 414(u) of the Code. Any such allocation shall be treated as an annual addition for the Plan Year to which it relates.

C) Notwithstanding the above, failure to return to work upon the expiration of the period of service in the Uniformed Services shall terminate his participation in the Plan as of the date on which such period ended.

4.04. Determination of Benefits Upon Death.
(A) In the event of the death, before retirement, of a Participant whose interest in his accumulated share is fully vested under Section 4.02 of this Plan, the amount of his accumulated share shall be paid in accordance with the terms of this Section. 

(B) Unless otherwise elected in the manner prescribed in Paragraph (E) of this Section, the beneficiary of at least one-half (1/2) of a Participant's Accumulated Share, shall be the Participant's spouse. Except as provided by Paragraph (D) of this Section, the surviving spouse shall receive such benefit in the form of a Pre-Retirement Survivor Annuity Payment which shall commence no later than three months after satisfactory proof of death is received by the Trustees. 

(C) 1) The Pre-Retirement Survivor Annuity shall be a monthly benefit payable for the remaining life of the spouse. The Trustees shall have the option of purchasing such annuity from an insurance company licensed to do business in any State of the United States, or of directly calculating the amount of such annuity and administering the payment of same. The purchase of such annuity or the calculation of same by the duly designated representative of the Trustees shall be based on no less than 50% and no more than 100% of the Participant's accumulated share at the time he would have reached age 55. The appropriate percentage to be utilized shall be determined under Paragraph (E) of this Section. 

2) In the event the Pre-Retirement Survivor Annuity is purchased from an insurance company duly selected by the Trustees, the monthly benefit shall be the amount which can be purchased with the appropriate portion of the Participant's account balance as described in Sub-Paragraph (1) of this Paragraph (C), allowing for payment of all reasonable charges imposed by such insurance company for the payment of the annuity. 

3) In the event the Pre-Retirement Survivor Annuity is calculated and paid directly by the Trustees, the amount of the monthly benefit shall be determined by a calculation based on (I) the appropriate portion of the Participant's account balance as described in Sub-Paragraph (1) of this Paragraph (C); (ii) the life expectancy of the surviving spouse as of the date the Participant would have reached age 55 (as determined by reference to the Life Table then in effect as issued by the United States Department of Labor); and (iii) an interest rate based on the prior rate of interest at the time of death less an allowance for administration of 300 basis points. In determining the life expectancy of a surviving spouse, the sex of such spouse shall not be a factor. 

(D) 1) If the value of a Participant's Accumulated Share at the time of his death is $5,000 or less, the Trustees may direct the distribution of the appropriate portion of such share to the Participant's spouse in one lump sum. Such payment shall be made no later than three months after satisfactory proof of death is received by the Trustees. 

2) If the value of a Participant's accumulated share at the time of his death is greater than $5,000, the surviving spouse may receive payment of the appropriate portion of such accumulated share in one lump sum as prescribed in Sub-paragraph (1) of this Paragraph (D) if the surviving spouse consents to such a distribution in a writing signed by the spouse and witnessed by a notary public.

E) 1) A Participant may designate a beneficiary other than his spouse if: 

1. The Participant and his spouse have validly waived the Pre-Retirement Survivor Annuity in the manner described in Sub-Paragraph (2) of this Paragraph (E), and the spouse has waived his or her right to be the Participant's beneficiary in the same manner, or, 
2. The Participant has no spouse; or, 
3. The spouse cannot be located.

In such event, the designation of a Beneficiary shall be made on a form satisfactory to the Trustees. A Participant may at any time revoke his designation of a Beneficiary or change his Beneficiary by filing written notice of such revocation or change with the Trustees. However, the Participant's spouse, if any, must again consent in writing to any such change or revocation. In the event no valid designation of a Beneficiary exists at the time of a Participant's death and there is no spouse or dependent children who can be located, no benefit by reason of such Participant's death shall be payable under this Plan.

2) (i)An election to waive the Pre-Retirement Survivor Annuity by a Participant and his spouse, and a waiver of the right to be the Participant's Beneficiary by the Participant's spouse shall be made in writing duly executed by the Participant and his spouse and witnessed by a notary public. The consent of the spouse must acknowledge the effect of such elections. 

(ii)The consent of a spouse shall not be required if it is established to the satisfaction of the Trustees that the required consent cannot be obtained because there is no spouse, the spouse cannot be located, or other circumstances that may be prescribed by Treasury Regulations. 

(iii) The election made by the Participant and spouse may be revoked by the Participant in writing at any time, prior to his death. Any new election must comply with the requirements of this Paragraph. A former spouse's waiver shall not be binding on a new spouse. 

3) If the Participant has a spouse and such spouse has not waived his right to be the Participant's Beneficiary hereunder pursuant to the terms of Sub-Paragraph (1) of this Paragraph (E), the Participant must designate his spouse as the Beneficiary of at least one-half (1/2) of his accumulated share. If a participant designates a person or persons other than the spouse as Beneficiary of his accumulated share, the Trustees shall nevertheless pay one-half (1/2) of the accumulated share to a surviving spouse of the Participant in accordance with the terms of this Section. If a Participant fails to make a Beneficiary designation and has a surviving spouse at the time of his death, the Trustees shall pay one-half of the accumulated share to a surviving spouse of the Participant , and one-half share shall be forfeited, in accordance with the terms of this Section. 

4) A Participant may not designate a management representative or supervisory employee of his Employer as his beneficiary unless such beneficiary is related to the Participant. The Trustees, at their sole discretion, shall have authority to determine whether or not a sufficient relationship exists between such a beneficiary and the Participant in order to warrant payment of death benefits to such beneficiary. 

(F) In the event the death benefit is not paid in the form of a Pre-Retirement Survivor Annuity, it shall be paid to the Participant's Beneficiary by either of the following methods to be determined at the sole discretion of the Trustees:

1. One lump-sum payment;
2. Payment in monthly, quarterly, semi-annual or annual cash installments over a period to be determined at the sole discretion of the Trustees, and in installments as nearly equal as possible. After periodic installments commence, the Trustees shall have the right, at their sole discretion, to reduce the period over which such periodic installments shall be made.

(G) The terms "spouse" or "surviving spouse" as used in this Section shall refer to a person who is the lawful spouse of the Participant at the time of the Participant's death under the laws of the State in which the Participant and spouse were domiciled at the time of the Participant's death. 

4.05. (A)Qualified Joint and Survivor Annuity. 
Unless an optional form of benefit is selected pursuant to a "qualified election" within the ninety (90) day period ending on the date benefit payments would commence, a married Participant's accumulated share will be paid in the form of a qualified joint and survivor annuity and an unmarried Participant's accumulated share will be paid in the form of a life annuity. 

(B) Definitions.

1) Election Period. The term "Election Period" shall mean the period which begins on the first day of the Plan year in which the Participant obtains age thirty-five (35) and ends on the date of the Participant's death. If a Participant is separated from service prior to the first day of the Plan year in which age 35 is obtained, with respect to the accumulated share as of the date of separation, the Election period shall begin on the date of separation. 

2) Qualified Election. The term "Qualified Election" shall mean a waiver of qualified joint and survivor annuity. The waiver must be in writing and must be consented to by the Participant's spouse. The spouse's consent to a waiver must be witnessed by a Plan representative or Notary Public and must be limited to a benefit for a specific alternate Beneficiary. Notwithstanding this consent requirement, if the Participant establishes to the satisfaction of a Plan representative that such written consent may not be obtained because there is no spouse or the spouse cannot be located, a waiver will be deemed a qualified election. Any consent necessary under this provision will not be valid with respect to any other spouse. Additionally, a revocation of a prior waiver may be made by a Participant without the consent of the spouse at any time before the commencement of benefits. The number of revocations shall not be limited. Any new waiver or change of beneficiary will require a new spousal consent. 

3) Spouse (Surviving Spouse). The term "Spouse" or "Surviving Spouse" shall mean the spouse or surviving spouse of the Participant provided that a former spouse will be treated as the spouse or the surviving spouse to the extent provided under a Qualified Domestic Relations Order as defined in Section 1.21 of this Plan. 

(C) Notice Requirements.
1) The Trustees shall provide each Participant within a reasonable period prior to the commencement of benefits a written explanation of:

(i)The terms and conditions of a qualified joint and survivor annuity

(ii) The Participant's right to make and the effect of an election to waive the qualified joint and survivor annuity form of benefit;

(iii) The rights of a Participant's spouse; and

(iv) The right to make, and the effect of, a revocation of a previous election to waive the qualified joint and survivor annuity.

D) Lump Sum Payments. 1) If the value of a Participant's accumulated share at the time of retirement is less than $1,000, the Trustees shall distribute such amount in one lump-sum to the Participant, without the consent of the Participant or spouse, upon the retirement of the Participant, regardless of age.

2) In the event there is a qualified election to waive a qualified joint and survivor annuity, or, in the case of an unmarried Participant, the payment of a life annuity, the Trustees shall distribute a Participant's accumulated share in one lump-sum payment upon the retirement of the Participant, regardless of age.

E) Satisfaction of Benefits. Upon commencement of payment of a qualified joint and survivor annuity, no further benefits will be payable and the benefits will be completely satisfied upon the death of a surviving spouse.

4.06. Special Conditions. 
(A) If an Accumulated Share is payable which amounts to less than One Thousand Dollars ($1,000.00), such Accumulated Share will be paid only on a lump sum basis;

(B) If any payment, on any monthly basis shall be less than $20.00 per month, the Trustees may, in their sole and absolute discretion, combine such monthly payments into quarterly, semi-annual or annual payments, as they shall determine.

4.07. Suspension of Monthly Benefits
A Participant shall not receive benefits in any month in which he either completes 40 or more hours of service or receives payment for any hours of service performed on each of 8 or more days (or separate work shifts) in employment which is covered by a collective bargaining agreement as defined at Section 1.08 of this Plan.

For purposes of this Section, the term "month" shall include any four or five week payroll period ending in a calendar month and the term "hours of service" shall have the same meaning as set forth in Section 1.18(1) and (2) of this Plan.

A Participant receiving benefits under this Plan shall notify the Plan in writing if he completes the amount of work specified in Paragraph (A) of this Section. Failure to give such written notice shall empower the Trustees to withhold the payment of benefits until such time as any overpayment has been recovered.

4.08. Required Distributions.

Section 1. General Rules
(1.1) Effective date. The provisions of this Section 4.08 will apply for purposes of determining required minimum distributions on or after January 1, 2003.

(1.2) Requirements of Treasury Regulations Incorporated. All distributions required under this Section 4.08 will be determined and made in accordance with the Treasury Regulations under Section 401(a)(9) of the Internal Revenue Code.

(1.3) TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this Section 4.08, distributions may be made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the Plan that relate to Section 242(b)(2) of TEFRA.

Section 2. Time & Manner of Distribution.

(2.1) Required Beginning Date. A Participant's entire interest will be distributed to the Participant no later than April 1st of the calendar year following the year in which he or she attains age 70-½, or the calendar year in which the Participant retires. In the alternative, distributions to a Participant must begin no later than such calendar year and must be made over the life of the Participant (or lives of the Participant and the Participant's spouse) or over a period not exceeding the life expectancy of the Participant (or the life expectancies of the Participant and the Participant's spouse). Distributions as described above may be made to a Participant and a non-spouse Beneficiary provided the measuring lives remain those of the Participant and the Participant's spouse, if any. In determining the life expectancy of a Participant or his spouse, the sex of such Participant and his spouse shall not be a factor.

(2.2) Death of Participant Before Distributions Begin. If the Participant dies before distributions begin, the Participant's entire interest will be distributed, or begin to be distributed, no later than as follows:

(a) If the Participant's surviving spouse is the Participant's sole designated beneficiary, then distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70 1/2, if later.

(b) If the Participant's surviving spouse is not the Participant's sole designated beneficiary, then distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died.

(c) If there is no designated beneficiary as of September 30 of the year following the year of the Participant's death, the Participant's entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Participant's death, unless Participant's Accumulated Share has been forfeited pursuant to Section 6.05 hereof because there is no known surviving spouse or dependent child.

(d) If the Participant's surviving spouse is the Participant's sole designated beneficiary and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this Section 2.2, other than Section 2.2(a), will apply as if the surviving spouse were the Participant.

For purposes of this Section 2.2 and Section 4, unless section 2.2(d) applies, distributions are considered to begin on the Participant's required beginning date. If section 2.2(d) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under section 2.2(a). If distributions under an annuity purchased from an insurance company irrevocably commence to the Participant before the Participant's required beginning date (or to the Participant's surviving spouse before the date distributions are required to begin to the surviving spouse under section 2.2(a), the date distributions are considered to begin is the date distributions actually commence.

(2.3) Forms of Distribution. Unless the Participant's interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the required beginning date, as of the first distribution calendar year distributions will be made in accordance with Sections 3 and 4 of this article. If the Participant's interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of section 401(a)(9) of the Code and the Treasury regulations.

Section 3. Required Minimum Distributions During Participant's Lifetime.

(3.1) Amount of Required Minimum Distribution For Each Distribution Calendar Year. During the Participant's lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of:

(a) The quotient obtained by dividing the Participant's account balance by the distribution period in the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury regulations, using the Participant's age as of the Participant's birthday in the distribution calendar year; or

(b) If the Participant's sole designated beneficiary for the distribution calendar year is the Participant's spouse, the quotient obtained by dividing the Participant's account balance by the number in the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury regulations, using the Participant's and spouse's attained ages as of the Participant's and spouse's birthdays in the distribution calendar year.

(3.2) Lifetime Required Minimum Distributions Continue Through Year of Participant's Death. Required minimum distributions will be determined under this Section 3 beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant's date of death.

Section 4. Required Minimum Distributions After Participant's Death.

(4.1) Death On or After Date Distributions Begin.

(a) Participant Survived by Designated Beneficiary. 
If the Participant dies on or after the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's account balance by the longer of the remaining life expectancy of the Participant or the remaining life expectancy of the Participant's designated beneficiary, determined as follows:

1) The Participant's remaining life expectancy is calculated using the age of the Participant in the year of death, reduced by one for each subsequent year. 

2) If the Participant's surviving spouse is the Participant's sole designated beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the Participant's death using the surviving spouse's age as of the spouse's birthday in that year. For distribution calendar years after the year of the surviving spouse's death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse's birthday in the calendar year of the spouse's death, reduced by one for each subsequent calendar year.

3) If the Participant's surviving spouse is not the Participant's sole designated beneficiary, the designated beneficiary's remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the Participant's death, reduced by one for each subsequent year.

(b) No Designated Beneficiary. If the Participant dies on or after the date distributions begin and there is no designated beneficiary as of September 30 of the year after the year of the Participant's death, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's account balance by the Participant's remaining life expectancy calculated using the age of the Participant in the year of death, reduced by one for each subsequent year.

(4.2) Death Before Date Distributions Begin.

(a) Participant Survived by Designated Beneficiary. If the Participant dies before the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Participant's death is the quotient obtained by dividing the Participant's account balance by the remaining life expectancy of the Participant's designated beneficiary, determined as provided in Section 4.1.

(b) No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the Participant's death,
distribution of the Participant's entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant's death.

(c) Death of Surviving Spouse Before Distributions to Surviving Spouse Are Required to Begin. If the Participant dies before the date distributions begin, the Participant's surviving spouse is the Participant's sole designated beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse under Section 2.2(a), this Section 4.2 will apply as if the surviving spouse were the Participant.

Section 5. Definitions.
(5.1) Designated Beneficiary. The individual who is designated as the beneficiary under Section 6.05 of the Plan and is the designated beneficiary under Section 401(a)(9) of the Internal Revenue Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

(5.2) Distribution calendar year. A calendar year for which a minimum distribution is required. For distributions beginning before the Participant's death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Participant's required beginning date. For distributions beginning after the Participant's death, the first distribution calendar year is the calendar year in which distributions are required to begin under section 2.2. The required minimum distribution for the Participant's first distribution calendar year will be made on or before the Participant's required beginning date. The required minimum distribution for other distribution calendar years, including the required minimum distribution for the distribution calendar year in which the Participant's required beginning date occurs, will be made on or before December 31 of that distribution calendar year.

(5.3) Life expectancy. Life expectancy as computed by use of the Single Life Table in section 1.401(a)(9)-9 of the Treasury regulations.

(5.4) Participant's Account Balance. The account balance as of the last valuation date in the calendar year immediately preceding the distribution calendar year (valuation calendar year) increased by the amount of any contributions made and allocated or forfeitures allocated to the account balance as of dates in the valuation calendar year after the valuation date and decreased by distributions made in the valuation calendar year after the valuation date. The account balance for the valuation calendar year includes any amounts rolled over or transferred to the plan either in the valuation calendar year or in the distribution calendar year if distributed or transferred in the valuation calendar year.

(5.5) Required beginning date. The date specified in Section 2.1 of this Section 4.08.

SECTION 5. FORFEITURES 5.01. Forfeitures.
1) The Accumulated Share of a non-vested Participant shall be deemed cashed out and forfeited upon the termination from employment of such Participant for any reason.

2) The Accumulated Share of a vested Participant shall be forfeited upon the death of such Participant with no validly designated Beneficiary and no surviving spouse or dependent children who can be located in the exercise of due diligence.

3) The Accumulated Share of a vested Participant shall be forfeited if no contributions have been made to an Individual Account for a period of eighteen (18) consecutive months and no application for payment of the Accumulated Share has been made by the end of that period, provided the following circumstances exist:

(a) The Participant's Accumulated Share has a value of $5,000.00, or less, or the Participant has reached the later of normal retirement age or age 62 or older;

(b) The Trustees have been unable in the exercise of due diligence to locate the Participant for whom such Individual Account was established, or his/her Beneficiary, if the Participant is known to be deceased.

( c ) The employment of the Participant has been terminated for any reason.

Notwithstanding the above, the Plan shall reinstate the forfeited benefit if a claim is made by the Participant or by a Beneficiary for such benefit. The value of the reinstated benefit shall be equal to the value of the account (Accumulated Share) at the time it was forfeited.

5.02. Application of Forfeitures. Forfeitures of Accumulated Shares shall be applied first to re-establishing accounts which were previously forfeited, but are subject to reinstatement under this Plan. Thereafter, any remaining forfeitures shall be applied to payment of the expenses of the Fund.

5.03. Return to Employment after Forfeiture. In the event a Participant returns to employment after his accumulated share has previously been forfeited pursuant to Section 5.01, the date of such return to employment shall be utilized as the commencement of all subsequent Years of Service, but such Participant's vesting rights as of his termination of employment shall be restored.

SECTION 6. GENERAL PROVISIONS 6.01. 

 

Condition to Payment of Benefits. As a condition to payment of any benefit, an application for such benefit must be made in writing in a form and manner prescribed by the Trustees. No benefits shall be paid prior to the establishment and crediting of Individual Accounts or prior to the receipt of a written confirmation from the Internal Revenue Service that the Trust is an exempt trust and that the Plan is a qualified plan under the provisions of the Internal Revenue Code, whichever is later.

6.02. Time of Entitlement to Benefits.
(A) Except as provided in sub-section (C) herein, a Participant entitled to payment of his Accumulated Share shall receive payment as provided in Section 4, or on any later date as he elects, but not later than the month following in which he attains age 62, provided, however, that any Participant entitled to payment of his Accumulated Share whose employment is terminated voluntarily or involuntarily prior to attaining age 62, shall not be entitled to receive any benefit from this Plan until one year from the date of his termination from employment, unless such termination is due to:

1) Permanent and total disability from engaging in regular occupation in the service contract industry.

2) Those events specified in Section 4.02(2). For purposes of this section the term "employment" shall refer to any employment by an "Employer" as defined in Section 1.06 hereof.

(B) In any instance when the Accumulated Share of a Participant is due for payment in April or October, the payment of such Accumulated Share may be deferred until May or November, respectively, of the calendar year in question, in order to assure proper crediting of investment income.

(C) If, at the time of termination of employment, a Participant has achieved fifteen (15) continuous Years of Service, is at least fifty (50) years of age, and has not yet reached age 62, such Participant shall not be entitled to receive any benefit from this Plan until one hundred and twenty (120) days from the date of his termination from employment unless such termination is due to the reasons specified in Parts 1 and 2 of Sub-section (A) hereof.

(D) The one year waiting period specified in Section 6.02(A) shall not apply to any Participant who is deemed an "Employee" by virtue of employment by a designated affiliate of the Industrial, Technical and Professional Employees Union, AFL-CIO and who loses his or her status as a "Participant" because the affiliation between his or her employer and the Industrial, Technical and Professional Employees Union, AFL-CIO terminates. Such a Participant shall be entitled to payment of his or her Accumulated Share at any time after one hundred twenty (120) days from the date of termination of the affiliation of his employer and Industrial, Technical and Professional Employees Union, AFL-CIO.

6.03. Furnishing of Information. Every Employee or Beneficiary shall furnish, at the request of the Trustees, any information or proof reasonably required for the administration of the Plan or for the determination of any matter that the Trustees may legitimately have before them. Failure to furnish such information or proof promptly and in good faith shall be sufficient reason for the denial of benefits to such Employee or Beneficiary. The falsity of any statement material to an application or the furnishing of fraudulent information or proof shall be sufficient reason for the denial, suspension or discontinuance of benefits under this Plan which are in fact not non-forfeitable and in any such case, the Trustees shall have the right to recover any benefit payments made in reliance thereon.

6.04. Construction of Plan Documents and Coverage and Eligibility for Plan Benefits. The Trustees shall have full authority and power, in their absolute discretion to determine the following matters and all questions, policies and procedures related thereto:

(a) The construction of the provision of all Plan documents, including, but not limited to, this ITPEU Pension Plan, the Agreement and Declaration of Trust, and all resolutions and amendments adopted pursuant to those documents, including all terms used within such documents;

(b) The nature and amount of all benefits to be provided under the Plan;

(c) Eligibility to participate in the Plan;

(d) Eligibility to receive benefits from the Plan.

All decisions of the Trustees, or such Committees of Trustees or representatives of the Trustees as shall be designated by the full Board of Trustees, on any question regarding the construction of any Plan document, or any question regarding the nature and amount of benefits, eligibility to participate in the Plan and eligibility to receive benefits shall be final and binding on all participants, beneficiaries and any other interested parties.

6.05. Designation of Beneficiary. An Employee may designate a Beneficiary in a form provided by the Trustees and delivered to the Trustees before death. An Employee may change his Beneficiary (without the consent of the Beneficiary) in the same manner. If there is no known surviving spouse, dependent child or validly designated Beneficiary existing at the time of an Employee's death, the Accumulated Share of such Employee, if any, shall be forfeited upon such Employee's death.
Upon the death of a vested Employee who is survived by a spouse and/or dependent children who can be located in the exercise of due diligence, but who has not validly designated a Beneficiary, the Accumulated Share of such Employee shall be distributed as follows:

(1) If survived by a spouse only, payment of 100% of the Accumulated Share to such spouse;

(2) If survived by a spouse and one or more dependent children, payment of one-half of such Accumulated Share to the spouse and payment of one-half of such Accumulated Share in equal portions to such dependent child or children;

(3) If survived by one or more dependent children only, payment of such Accumulated Share in equal portions to such dependent child or children.

6.06. Mental or Physical Incapacity. In the event it is determined to the satisfaction of the Trustees that an Employee or Beneficiary is unable to care for his or her affairs because of mental or physical incapacity, any payment due may be applied, in the discretion of the Trustees, to the maintenance and support of such Employee or Beneficiary or to such person as the Trustees in their sole discretion find to be an object of the natural bounty of the Employee or Beneficiary in the manner decided by the Trustees, unless, prior to such payment, claim shall have been made for such payment by a legally-appointed guardian, committee, or other legal representative appropriate to receive such payments on behalf of the Employee or Beneficiary. Any such payment shall completely discharge the Trustees' liability with respect to such benefit.

6.07. Assignment of Benefits. No Employee, Beneficiary or other person entitled to any benefits from this Plan shall have the right to assign, alienate, transfer, encumber, pledge, mortgage, hypothecate, anticipate, or impair in any manner his or her legal or beneficial interest, or any interest in assets of the Trust, or benefits of this Plan. Neither the Trust nor any of the assets thereof, shall be liable for the debts of any Employee or Beneficiary entitled to any benefits under this Plan, nor be subject to attachment or execution or proceeds in any court or action or proceeding, provided, however, that the Trustees shall honor and comply with the terms of a "Qualified Domestic Relations Order" as defined in Section 1.21 of this Plan.

6.08. Appeal of Denial of Claim. An Employee whose application for benefits under this Plan has been denied, in whole or in part, is to be provided with adequate notice in writing setting forth the specific reasons for such denial, and shall have the right to appeal the decision, by written request filed with the Trustees within 180 days after receipt of such notice. The appeal shall be considered by a person or committee designated by the Trustees. Its decision shall be communicated to the claimant within 180 days after receipt of all pertinent evidence.

6.09. Maximum Amount of Credit.
(A) In any Plan Year after 1975, Contributions shall not be credited to an Individual Account to the extent that they exceed the lesser of:
(1) $30,000.00; or
(2) 25% of the Participant's compensation within the meaning of Section 415(c)(3) of the Internal Revenue Code from all Employers.

(B) The $30,000.00 and 25% referred to in paragraph (A) shall be adjusted in each Plan Year for increase in the cost of living in accordance with regulations prescribed by the Secretary of the Treasury or his delegate in accordance with Section 415(d) of the Internal Revenue Code.

(C) Effective for limitation years beginning after December 31, 2001, the "$30,000" or "25% of the Participant's compensation referred to in Section 6.09A and B above shall be changed to $40,000 and 100%.

(D) In addition to other applicable limitations set forth in the Plan, and notwithstanding any other provision of the Plan to the contrary, for Plan years beginning on or after January 1, 1998, the annual compensation of each employee taken into account under the Plan shall not exceed the Annual Compensation Limit of $160,000.00. Effective for Plan Years beginning on and after January 1, 2002, the $160,000 limit on annual compensation shall be changed to $200,000. This amount may be adjusted annually by the Commissioner of the Internal Revenue Service for increases in the cost of living in accordance with Section 401 (a)(17)(B) of the Internal Revenue Code. The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which compensation is determined (determination period) beginning in such calendar year. If a determination period consists of fewer than 12 months, the annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is 12.
(E) Effective for limitation years beginning after December 31, 1997, for purposes of applying the limitations of IRC section 415, compensation paid or made available during such limitation year shall include any elective deferral (as defined in IRC section 402(g)(3)), and any amount which is contributed or deferred by the employer at the election of the employee and which can not be included in the gross income of the employee by reason of IRC sections 125 or 457.
(F) Compensation paid or made available during the limitation year shall include any amounts that are not includable in the gross income of the employee by reason of IRC section 132(f)4.

6.10. Merger or Consolidation. In the event of any merger or consolidation with, or transfer of assets or liabilities to, any other plan, the amount of benefit which a Participant would receive upon a termination of the Plan immediately after such merger, consolidation or transfer shall be no less than the benefit he would have been entitled to receive immediately before the merger, consolidation, or transfer if the Plan had been terminated.

6.11. Masculine-Feminine Words. Whenever words are used in this Plan in the masculine gender, they shall be construed as though they were also used in the feminine gender.

SECTION 7. AMENDMENT AND TERMINATION
7.01. Amendment. The Trustees may amend or modify the Plan at any time in accordance with the Agreement and Declaration of Trust, except that no amendment or modification may curtail any benefits or vesting, or reduce any benefits which have been approved for payment prior to amendment, so long as funds are available for payment of such benefits.

7.02. Termination of Plan.
(A) In the event of a complete termination of the Plan, the assets then remaining, after providing for expenses of the Plan and for the payment of any Accumulated Shares theretofore approved, shall be distributed among the Participants. Each Participant shall receive that part of the total remaining assets in the same ratio as the value of his Accumulated Share bears to the aggregate value of the Accumulated Shares of all Employees. No part of the assets shall be returned to any Employer or inure to the benefit of any Employer or the Union. In the event that a Participant cannot be located and no claim is made by him or in his behalf for payment of his Accumulated Share within two (2) years following the sending of notice by registered mail to the Participant's last known address, his Accumulated Share shall be forfeited and redistributed on a uniform basis among Participants to whom payments have or can be made. A Participant's interest shall become non-forfeitable in the event of termination or partial termination of the Plan.
(B) In the event the liquidation value of the assets on the date of termination is less than the total of all Accumulated Shares plus expenses, the Trustees shall have the option of paying all Accumulated Shares to Participants over a period not to exceed 10 years to the extent permitted by the assets available.

7.03. Invalidation of Any Section. In the event that any Section or subsection of this Plan shall be determined by decision, act or regulation of a duly constituted body or authority to be in any respect invalid, that shall not nullify any of the other provisions, sections or subsections of the Plan.

SECTION 8. ROLL-OVER DISTRIBUTION 

8.01. Acceptance of Rollover Distributions. The Fund shall accept Direct Rollovers on behalf of a Participant from other Eligible Retirement Plans, provided that such Rollover Distributions are pursuant to the terms of a Collective Bargaining Agreement between any Employer and the Union. To the extent required by IRS regulations or guidance any such rollovers shall be accounted for separately under the Plan.

8.02. Direct Rollovers During a Period of Employment.
Notwithstanding the provisions of Section 6.02 hereof, if a Collective Bargaining Agreement between any Employer and the Union is amended to provide that contributions shall be made to a Qualified Plan pursuant to Section 401(k) of the Internal Revenue Code in the place of contributions to the Fund, the Fund shall effectuate a direct roll-over of the Accumulated Share of any affected Participant as soon as administratively possible, upon request by such affected Participant, without regard to the waiting periods specified in Section 6.02 hereof.