UA Local 447 Pipe Trades Trust Funds

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Section III: Definitions

Here are some terms that you will see throughout this booklet:

BREAK IN SERVICE
A one year break in service occurs whenever you do not work at least 300 Hours of Service in a Plan Year (375 Hours of Service for Plan Years before July 1, 1986). A one year break in service results in the loss of your nonvested service credits and benefits.

Time away from work will not be counted for purposes of incurring a break in service if due to physical disability, strike or lockout, absence on account of military service, or any other leave of absence approved by the Board of Trustees. Participants absent from work due to pregnancy, childbirth, adoption proceedings, or caring for a newborn or newly adopted child will be credited with up to 501 Hours of Service during the absence for the sole purpose of determining whether a one year break has occurred.

A permanent break in service occurs when your consecutive one year breaks in service exceed the greater of five years or the number of years of Credited Service you earned before the break. If you return to work for a contributing employer before incurring a permanent break in service and work at least 300 Hours of Service in a Plan Year (375 Hours of Service for Plan Years before 1986), your pre-break benefits and years of Credited Service will be reinstated. If you were vested at the time of the permanent break, your vested percentage in benefits you earn after the break will be calculated using both your pre-break and post-break service.

CREDITED SERVICE
There are two types of credits under this Plan: service and benefit. The Plan counts service credits for the purposes of computing your vesting and determining your eligibility for benefits and counts benefit credits for the purpose of computing the dollar amount of your benefit.

Service Credit: You are fully vested if you earn five (5) years of service credit without a break in service, provided you work in covered employment for at least one (1) hour on or after July 1, 1998.

You earn one year of service credit for vesting purposes for each Plan Year (July 1-June 30) in which you complete 1,000 or more Hours of Service, up to a maximum of 5 years. If you work less than 1,000 but more than 300 Hours of Service (375 Hours of Service for Plan Years before July 1, 1986), you will receive a fractional year of service credit. Simply divide the number of hours worked by 1,000 (computed to two decimal places) to determine the fractional amount.

After your tenth year, you earn one additional year of service credit for each Plan Year in which you work at least 1,200 Hours of Service. If you work less than 1,200 but more than 300 Hours of Service (375 Hours of Service for Plan Years before July 1, 1986), you will receive a fractional year of service credit. Simply divide the number of hours worked by 1,200 (computed to two decimal places) to determine the fractional amount.

If you earned five (5) years of service credit prior to July 1, 1998 but have incurred one or more one year Breaks in Service as of July 1, 1998, you will become fully vested if you return to covered employment before incurring a permanent break and earn at least 300 Hours of Service during a Plan Year.

Once you become vested, you are entitled to receive pension benefits from the Plan, even if you are not working for your employer when you reach early or normal retirement age.

If you are not otherwise eligible for benefits under this Plan because you divided your years of employment between this Plan and another related plan with which the Trustees have entered into a reciprocity agreement, you may be eligible for a pro-rata or partial pension under this Plan based on your service under the related plan, provided certain requirements are met. Please see the Plan Administrator for an explanation of the requirements for a pro-rata or partial pension if you have divided your years of employment between this Plan and a related plan.

Benefit Credit: You earn one full benefit credit for each Plan Year in which you complete 1,200 or more Hours of Service (1,500 Hours of Service for Plan Years before July 1, 1969) for which contributions have been made to the Plan. If you work less than 1,200 but more than 300 Hours of Service (375 Hours of Service for Plan Years before July 1, 1986), you will receive a fractional benefit credit. Simply divide the number of hours worked by 1,200 (computed to two decimal places) to determine the fractional amount. For Plan Years before July 1, 1963, you will receive a fractional benefit credit computed based on quarters of a year (1 quarter of a year for 375 Hours of Service).

If you were eligible to participate in the Plan as of July 1, 1956, you may also earn benefit credits computed based on your years of continuous employment with employer parties to collective bargaining agreements with the Union between July 1, 1944 and July 1, 1956, up to a maximum of twelve (12) years.

If you were employed on July 1, 2003 by an employer that first signed a collective bargaining agreement between August 1, 2003 and August 31, 2003, and you work at least 300 Hours of Service in covered employment with that employer or another Sponsoring Employer in each of the five (5) consecutive Plan Years beginning July 1, 2003, then at the end of that 5-year period you may be entitled to additional service credit and up to five (5) years of additional benefit credit based on the hours you actually worked for that employer in Plan Years ending prior to July 1, 2003. If you qualify for this additional service and benefit credit, you may also receive additional service and benefit credit equal to any service and benefit credit which you may have lost in another plan maintained by any local union of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada due to a break in service.

In general, you do not earn benefit credits unless you are (1) employed by a contributing employer (2) paid as an hourly employee, and (3) employed in a job classification covered by the terms of the collective bargaining agreement. If your covered employment under this Plan is interrupted by a period of military service, you may qualify for additional benefit credit based on the period of military service. To qualify, you must earn benefits under this Plan shortly before entering military service, and you must promptly return to covered employment when you are released from duty. The applicable time periods vary depending on the length of time you spend in the military. If you qualify, you may receive benefit credit for up to five (5) years of military service. The amount of credit will be based on the credits you earned during the Plan Year immediately before your period of military service.

If you are rehired by a Sponsoring Employer, you will earn benefits at the rate in effect at the time of your rehire. If you are eligible to retain credit for your service before you left, these benefits will be added to your benefits earned in the future.
HOUR OF SERVICE
You are credited with an Hour of Service for:
- Each hour of work for which you are paid or entitled to be paid directly or indirectly by your employer. These hours are credited to the period when the work was actually performed.
- Each hour of nonwork for which you are paid directly or indirectly or entitled to receive pay, such as vacation, sickness and holidays, or other nonwork hours prescribed by Department of Labor regulations. These hours are credited to the period when they actually occurred.
- Each hour for which back pay is awarded or agreed to by your employer, whether or not they pertain to the mitigation of damages. These hours are credited for the period to which the award or agreement pertains.
- Each hour of work not covered under a collective bargaining agreement with your employer if such service is contiguous with your covered employment. These hours are counted for purposes of eligibility and vesting only. They do not affect the amount of your benefit.
- Each hour of military service for which you are entitled to credit under the Uniformed Services Employment and Reemployment Rights Act of 1994, or similar Federal law.
NONCOVERED PLUMBING AND PIPING INDUSTRY SERVICE means plumbing and piping industry work within the State of California for an employer which does not have, or self-employment which is not covered by, a collective bargaining agreement with a Local Union affiliated with the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, which agreement requires contributions to this Plan or a related plan. A participant who accepts employment in Noncovered Plumbing and Piping Industry Service after April 1, 1996 will not be eligible for supplemental death benefits or for certain optional forms of benefits such as early retirement, disability retirement, and any payment options other than the basic life annuity and 50% joint and survivor annuity. These restrictions apply to all benefits earned after July 1, 1996. In addition, the unreduced early retirement benefit is not available to any participant who worked in Noncovered Plumbing and Piping Industry Service after becoming covered under this Plan.
PLAN means the U.A. Local Union No. 447 Pension Plan.
PLAN YEAR means July 1 to June 30.
TRUSTEES means The Board of Trustees of the U. A. Local No. 447 Pension Fund.
UNION means Local Union No. 447 of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada.
YOUR EMPLOYER/SPONSORING EMPLOYER means an employer which is obligated to make contributions to this Plan by a collective bargaining agreement with the Union or by signing a participation agreement, which is authorized by the Board of Trustees.