Section VI: Payment Of Retirement Benefits

When you retire, you can choose the form of payment for your retirement benefits. The benefit amount described in Section IV may be actuarially reduced depending on the form of payment you choose. The reduction is made so that all forms of payment are of equal value.

If you are married and do not elect an alternative form of payment, your benefits will be paid to you as a 50% joint and survivor annuity (monthly payments will be made for your lifetime with monthly payments equal to 50% of the monthly payment received by you during your lifetime continuing to your surviving spouse upon your death). If you are single and do not elect an alternative form of payment, you will receive monthly payments for your lifetime, with a guarantee of 36 monthly payments, plus six monthly payments after your death to your beneficiary.

The payment forms available from the Plan at retirement and upon your death after retirement are as follows:

• Life Annuity. Monthly payments for your lifetime and for six months after your death to your beneficiary. (There is no adjustment for this form.) If you retire after January 1, 2000, payments under the life annuity option will include a minimum of 36 monthly payments. If you die before receiving 36 monthly payments, your beneficiary will receive payments for the remainder of the 36 months. The six month continuation outlined in this Plan booklet is in addition to the 36 month guarantee. This means that you and your beneficiary will always receive at least 42 payments under the life annuity.
  
  
• Joint and Survivor Annuity. Reduced monthly payments for your lifetime with a 100%, 75%, 66-2/3% or 50% continuation to your beneficiary upon your death. Under this payment form, if your beneficiary should predecease you, your benefit would not change and there would be no payments made to any beneficiary upon your death.
  
  
• "Pop up" Joint and Survivor Annuity. Under this payment form, you receive reduced monthly payments for your lifetime with a 100%, 75%, 66-2/3% or 50% continuation to your beneficiary. However, if your beneficiary dies first, your benefit "pops up" to the amount you would have received if you had elected payments for your lifetime only. To pay for the pop up feature, an additional reduction is made in the amount of the monthly benefit, so that the payments are slightly smaller than the payments under a joint and survivor option without this feature.
  
  
• Ten-Year Guarantee. Reduced monthly payments during your lifetime with 10 years guaranteed. If you die within 10 years, payments continue to your beneficiary for the remainder of the 10 year period.
  
  
• Social Security Adjustment Option. If your retirement date precedes your 65th birthday, you may elect a Social Security adjustment option instead of the normal form of benefit. If you select this option, your benefit will be adjusted so that the amount payable before your 65th birthday is increased and the amount payable on and after your 65th birthday is reduced. Such adjusted amounts shall be Actuarially Equivalent to the normal form and shall be determined in accordance with the uniform rules established by the Trustees to provide, insofar as practicable, level retirement income to a retired Participant, both before and after his or her Social Security benefits commence. The election of the Social Security adjustment option must be made in writing to the Trustees on or before the date of receipt by the Trustees of your application for retirement benefits.
  
  
• Any other form of payment approved by the Trustees.
  
  
• If the present value of your vested benefits is less than or equal to $5,000, any benefit payment to you or your beneficiary will be made in a lump sum. Sometimes a lump sum payment may be eligible for rollover to an IRA or to another qualified plan, or may qualify for other favorable tax treatment. The administrative office will provide basic information required by law concerning these issues. You are encouraged to consult your tax advisor when making any decisions about your pension.

Effective July 1, 1998, if you are receiving a pension from this Plan you may transfer all or part of your distribution from the U.A. Local No. 447 Defined Contribution Plan into this Plan and thereby increase the amount of your monthly pension benefit. The minimum amount you may transfer is $10,000. There is no maximum amount. The amount of the increase in your monthly pension will depend on your age and the pension payment option you have chosen. If you die before receiving benefits equaling the amount transferred from the Defined Contribution Plan, the balance will be paid to your designated beneficiary. If you are married, election of this option requires the written and notarized consent of your spouse.

If you are married and you do not wish to choose the lifetime payments with a percentage continuation to your spouse, your spouse must consent to the choice. This consent must be in writing and must be witnessed by a notary public, and must not be obtained more than ninety (90) days before your annuity start date.

If you accept employment in Noncovered Plumbing and Piping Industry Service after April 1, 1996, you are not eligible to elect any optional form of benefit except the life annuity and 50% joint and survivor benefit, except with respect to benefits earned prior to July 1, 1996.