6 \\ What is the Fund’s Rehabilitation Plan (RP)? WHAT IS THE FUND’S REHABILITATION PLAN (RP)? Under federal law, an annual actuarial status determination is re- quired for all multiemployer defined benefit pension plans, includ- ing the Fund. The Fund was certified to be in endangered status effective for the plan year beginning January 1, 2019 and it was pro- jected to be in critical status in one of the succeeding five plan years. The Trustees voluntarily elected to place the Fund in critical status effective for the 2019 plan year to improve the financial health of the Fund. As required by law for plans that are in critical status, the Trustees adopted a Rehabilitation Plan (“RP”) in 2019. The RP changes the benefits provided under the Plan. As required by law, some of the benefit changes apply to all participants begin- ning April 26, 2019. The type and effective date of other benefit changes depends on which of the two alternative schedules under the RP — the Preferred Schedule or the Default Schedule — apply to you, which in turn generally depends on the collective bargain- ing agreement that you were last covered under. The date that the benefit changes become effective for you is referred to as your “RP Schedule Effective Date.” The RP Schedule Effective Date for any participant is determined as follows: › The RP Schedule Effective Date for a participant who is covered under a Collective Bargaining Agreement where the bar- gaining parties adopt the Preferred Schedule is the date that the bargaining parties adopt the Preferred Schedule (or, if later, January 1, 2022), if the participant submits a complete application for a pension on or after that date. › The RP Schedule Effective Date for a participant who is covered under a Collective Bargaining Agreement where the bargaining parties adopt (or have imposed on them) the De- fault Schedule is the date that the bargaining parties adopt (or have imposed on them) the Default Schedule (or, if later, September 1, 2019), if the participant submits a complete application for a pension on or after that date. › A deferred vested participant is treated as covered under the Collective Bargaining Agreement of the participant’s last covered employer of record except for “orphaned” deferred vested participants described below. › The RP Schedule Effective Date for a participant whose employer no longer contributes to the Fund as of Septem- ber 1, 2019 (an “orphaned participant”) is September 1, 2019 for orphaned participants who submits a complete application for a pension after that date, and the orphaned participant will be covered by the Preferred Schedule. › The RP Schedule Effective Date for a participant who is non-bargained but whose Employer contributes to the Fund under a Collective Bargaining Agreement will be determined as if the participant were covered under the first to expire of the Employer’s Collective Bargaining Agreements in effect on September 1, 2019. › The RP Schedule Effective Date for a participant whose Employer does not contribute to the Fund under any Col- lective Bargaining Agreement will be determined as if the Employer’s participation agreement with the Fund were a Collective Bargaining Agreement with a term ending on January 1, 2020. SUMMARY OF BENEFIT CHANGES UNDER THE REHABILITATION PLAN As required by law, the following benefits were eliminated for all par- ticipants and beneficiaries effective April 26, 2019: › all lump sum payments and payment options, including the preretirement lump-sum death benefits and lump- sum payments to certain individuals eligible for a Dis- ability Pension for certain retroactive periods, except that automatic payments of $5,000 or less will continue (along with makeup payments); and › the Social Security Option. The Preferred Schedule eliminates the following benefits (includ- ing benefits earned both before and after the RP Schedule Effec- tive Date): › early retirement subsidies; › unreduced age and service pensions, including the 20 and age 62 pension and 30 and out pension; › the unreduced disability pension; and › the 60 Certain Payments (single life annuity with 60-pay- ment guarantee). The Default Schedule eliminates the following benefits earned on and after the RP Schedule Effective Date: › early retirement subsidies; › unreduced age and service pensions, including the 20 and age 62 pension and the 30 and out pension; › the unreduced disability pension; and › the 60 Certain Payments (single life annuity with 60-pay- ment guarantee). The Default Schedule also eliminates: › the 60-monthly-payments pre-retirement death benefit payable on account of the death of a participant on or after the RP Schedule Effective Date; and › the “pop-up” benefit for participants who submit a com- plete application for benefits on or after the RP Schedule Effective Date.