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