northwest sheet metal workers supplemental pension trust

NORTHWEST SHEET METAL
WORKERS
SUPPLEMENTAL PENSION
TRUST
SUMMARY PLAN DESCRIPTION
And
PLAN DOCUMENT
Revised February 1, 2012
DIRECTORY OF SERVICES
TRUST ADMINISTRATOR
Board of Trustees
Northwest Sheet Metal Workers Supplemental Pension Trust
1220 SW Morrison St., Suite 300
Portland, OR 97205-2222
Telephone: (503) 222-7694
Toll Free: 1-800-413-4928
FAX: (503) 228-0149
www.nwsheetmetal.aibpa.com
ACCOUNT RECORD KEEPER
(Questions on Account Balances or Plan Loans)
Northwest Sheet Metal Workers Supplemental Pension Trust
The Standard
Toll Free: 1-800-858-5420
http://retirement.standard.com
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NORTHWEST SHEET METAL WORKERS
SUPPLEMENTAL PENSION TRUST
To All Participants and Their Families:
We, the Board of Trustees of the Northwest Sheet Metal Workers Supplemental
Pension Plan, are pleased to provide this updated booklet describing your 401(k) plan.
We urge you to read this booklet carefully and to refer to it from time to time so that
you will be fully aware of the benefits and the conditions under which they are
available.
This Summary Plan Description is intended to highlight the basic features of the Plan
and provide answers to commonly asked questions. A Plan Document is on file with
the Trust Administrator and is available for your review upon written request. In the
event there is a conflict between this Summary Plan Description and the Plan
Document, the Plan Document will control.
This 401(k) is an important part of your retirement. We encourage you to review the
information regarding the investment options and to take advantage of all of the
features of your Plan. We also encourage you to contact the Trust Administrator on
any questions at the address shown on the first page.
Sincerely yours,
EMPLOYER TRUSTEES
UNION TRUSTEES
Robert M. Carlton, Jr., Chairman
Tim Kester
Doug Nugent
Jerry Freel
Bob Hightower
Eric Martinson, Secretary
Brent Moore
John Merk
Jim Ryan
Dale Welty
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TABLE OF CONTENTS
Directory of Services
Letter to Participants and Their Families
Purpose of the Summary Plan Description Booklet
Statement of Account
Enroll in the Plan
How Your Plan Works
Investment of Your Account
I.
Type of Plan
II.
Administration of the Plan
III.
Investments
IV.
Participation and Vesting
V.
Employer Contributions
VI.
Employee Contributions
VII. Eligibility for Benefits
VIII. Payment of Benefits
IX.
Loans to Participants
X.
Death Benefits
XI.
Distribution Rules
A.
Required Distribution Rules
B.
Rights of Former Spouse – Domestic Relations Order
C.
No Assignments
XII. Circumstances That May Result in Ineligibility, Denial, Loss, Forfeiture
Or Suspension of Benefits
XIII. Deferral of Taxes/Rollovers
XIV. Claims and Appeal Procedures
XV. Contact with Plan Office
XVI. Additional Information Required by ERISA
Trust Administration Office Contact Information
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Purpose of the Summary Plan Description Booklet
This booklet summarizes the provisions of the Northwest Sheet Metal Supplemental
Pension Plan. The explanation in this booklet is a brief, general summary of the Plan. It
is not intended to cover all of the details of the Plan. You should review the official Plan
document to fully determine your rights.
You are not entitled to rely upon oral statements by any employee of the Trust
Administrator or any Trustee, employer or union officer, or any other person or entity. If
you wish an official interpretation of the Plan, you should address your request in
writing to the Board of Trustees at the Plan Office and provide full and accurate
information concerning your situation.
You should further understand that, from time to time, there may be a data error in a
statement that you receive which may be corrected upon an audit or review. The Board
of Trustees reserves the right to make corrections when an accounting or similar mistake
is discovered.
You may want to discuss with a tax advisor the tax consequences of any withdrawal of
funds or selection of a benefit option.
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STATEMENT OF ACCOUNT
Following the close of each calendar quarter, you should receive, in the mail, your
regular quarterly Retirement Account Statement.
Each person’s account is maintained separately and represents that person’s investment
choices and performance, contributions, any employee rollovers or loans that have been
issued, payments and all aspects of the account.
It is very important that you keep the Administrative Office informed of any changes of
address, so that your quarterly statements will reach you promptly.
You can also go online at www.nwsheetmetal.aibpa.com to login and see your
contribution history in detail, or click to log in to the Record keeper’s website to see
account balances and activity, model loans and change investments.
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STEP 1
ENROLL IN THE PLAN!

To enroll in the Plan, complete an Investing Form and return it to the Administrative
office. Or you can go online at www.standard.com or call The Standard to make
your investment decisions. There are many online tools to help you plan for your
retirement and pick the best investment asset allocation for you.
 In addition, you should designate a beneficiary in the event of your death. Please
complete and return to the Administrative office a Beneficiary Designation Form.
This form is available online at www.nwsheetmetal.aibpa.com or by calling the
Administrative office.
 You need to complete the “Employee Elective Contribution Form” if you wish to
have Voluntary Employee Contributions deducted from your payroll. This form
should be provided to your employer’s payroll department.
You may obtain copies of these forms for completion from the Trust Administrator and
online at www.nwsheetmetal.aibpa.com.
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HOW YOUR PLAN WORKS
On January 1, 1996, this Plan was established based on Collective Bargaining
Agreements reached by Participating Unions and Employers. Those Bargaining
Agreements provided for specific employer contributions.
In addition, the Plan provides that each employee who so elects can make appropriate
deductions from his payroll (known as Voluntary Employee Contributions) and have
those deductions deposited in his or her account. This means that the Plan is classified
as an Internal Revenue Code Section 401(k) plan.
● An individual account is established for each participating employee. All employer
contributions are deposited in that account. Furthermore, any voluntary employee
contributions are also added to that account (in addition, “qualifying rollover
contributions” from other plans are credited to the employee’s account).
● The account is credited with the net investment results (gains or losses) on a daily
basis.
● The Plan deducts $5.00 as a monthly account maintenance fee for any balances less
than $500, and $7.00 each month for balances of $500 or more. In addition, an asset
based fee of less than .1% is charged by the recordkeeper.
● Your Account balance is calculated daily based on your Fund options investment
results, and any contributions, loan payments, or expenses credited or debited from
the account.
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● You should expect to receive your quarterly statement approximately three weeks
after the end of the calendar quarter.
The Plan is governed by a federal law known as the Employee Retirement Income
Security Act ("ERISA"). It is not, however, insured under the federal Pension Benefit
Guaranty Corporation ("PBGC"), as this is an individual account plan not covered by
PBGC. (Only defined benefit pension plans are insured by the PBGC.)
INVESTMENT OF YOUR ACCOUNT
One of the most important features of your 401 (k) Supplemental Pension
Plan allows you, as a participating employee, to direct the investments of
your account into any one or more of the following alternatives. All of the
Fund options are briefly described below.
You may instead decide to use the Investing Made Easy feature at The
Standard and select from one or more of the five guided portfolios. Simply
go online, and complete the Investor Profile Quiz. Based on your score from
the Investor Profile Quiz, identify the corresponding Guided Portfolio.
Choose one of the ready made Guided Portfolios or create your own
investment mix on the Investing Form.
Morley Stable Value 20
PIMCO Total Return
Instl PTTRX
The stable value fund invests across the fixed income spectrum. It
tends to invest in high-quality bonds with short- to intermediate-term
maturities. They also purchase insurance contracts which aim to
provide price stability on a day-to-day basis.
The investment seeks maximum total return. The fund normally
invests at least 65% of total assets in a diversified portfolio of fixedincome instruments of varying maturities, which may be represented
by forwards or derivatives such as options, futures contracts, or swap
agreements. It invests primarily in investment-grade debt securities,
but may invest up to 10% of total assets in high-yield securities (“junk
bonds”). The fund may invest in derivative instruments, such as
options, futures contracts or swap agreements, or in mortgage- or
asset-back securities.
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Vanguard Total Bond
Market Index Instl
VBTIX
Vanguard Wellesley
Income Adm VWIAX
Vanguard Balanced
Index Instl VBAIX
Vanguard Value Index
Instl VIVIX
Fidelity Low-Priced
Stock FLPSX
The investment seeks to track the performance of a broad, marketweighted bond index. The fund employs a “passive management”, or
indexing investment approach designed to track the performance of
the Barclays Capital U.S. Aggregate Float Adjusted Index. It invests
by sampling the index, meaning that it holds a broadly diversified
collection of securities that, in the aggregate, approximates the full
index in terms of key risk factors and other characteristics. The fund
invests at least 80% of assets in bonds held in the index. It maintains a
dollar-weighted average maturity consistent with that of the index,
ranging between 5 and 10 years.
The investment seeks to provide long-term growth of income and a
high and sustainable level of current income, along with moderate
long-term capital appreciation. The fund invests approximately 60%
to 65% of assets in investment-grade corporate, U.S. Treasury, and
government agency bonds, as well as mortgage-backed securities. The
remaining 35% to 40% of fund assets are invested in common stocks
of companies that have a history of above-average dividends or
expectations of increasing dividends.
The investment seeks to track the performance of a broad, marketweighted bond index and a benchmark index that measures the
investment return of the overall U.S. stock market. The fund employs
a “passive management”-or indexing-or investment approach
designed to track the performance of two benchmark indexes. With
approximately 60% of assets, it seeks to track the investment
performance of the MSCI US Broad Market Index, which represents
99.5% or more of the total market capitalization of all U.S. common
stocks. The fund also seeks to track the investment performance of the
Barclays Capital U.S. Aggregate Float Adjusted Index with 40% of
assets.
The investment seeks to replicate, net of expenses, the MSI US Prime
Market Value Index. The fund generally invests all, or substantially
all, of its assets in the stocks that make up the index, holding each
stock in approximately the same proportion as its weighting in the
index. The index measures the investment return of largecapitalization value stocks.
The investment seeks long-term capital appreciation. The fund
normally invests primarily in common stocks and invests at least 80%
of assets in low-priced stocks (those priced at or below $35 per share),
which can lead to investments in small and medium-sized companies.
The fund invests in either “growth” stocks or “value” stocks or both.
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Vanguard Institutional
Index Instl VINIX
Vanguard Growth Index
Signal VIGSX
Vanguard Mid-Cap
Value Index Adm
VMVAX
Vanguard Mid-Cap
Growth Index Adm
VMGMX
Thornburg International
Value I TGVIX
The investment seeks to provide long-term capital appreciation by
investing in large-capitalization stocks listed on major U.S. stock
exchanges by tracking the performance of a benchmark index that
measures the investment return of large-capitalization stocks. The
fund is solely invested in the Vanguard Institutional Index Fund
Institutional Plus Shares (VIIIX). It attempts to replicate the target
index by investing all, or substantially all, of its assets in the stocks
that make up the S&P 500 Index, which is a widely recognized
benchmark of U.S. stock market performance that is dominated by the
stocks of large U.S. companies.
The investment seeks to replicate, net of expenses, the MSCI US
Prime Market Growth Index. The fund invests all, or substantially all,
of its assets in the stocks that make up the index. The index measures
the investment return of large-capitalization growth stocks.
The investment seeks to track the performance of a benchmark index
that measures the investment return of mid-capitalization value
stocks. The fund employs a passive management approach designed
to track the performance of the MSCI US Mid Cap Value Index, a
broadly diversified index of value stocks of medium-size U.S.
companies. It attempts to replicate the target index by investing all, or
substantially all, of its assets in the stocks that make up the index,
holding each stock in approximately the same pro9portion as its
weighting in the index.
The investment seeks to track the performance of a benchmark index
that measures the investment return of mid-capitalization growth
stocks. The fund employs a “passive management”-or indexinginvestment approach designed to track the performance of the MSCI
US Mid Cap Growth Index, a broadly diversified index of growth
stocks of medium-size U.S. companies. It attempts to replicate the
target index by investing all, or substantially all, of its assets in the
stocks that make up the index, holding each stock in approximately
the same proportion as its weighting in the index.
The investment seeks long-term capital appreciation. The fund
normally invests at least 75% of assets in foreign securities or
depository receipts of foreign securities. It may invest in developing
countries. The fund typically makes equity investments in the
following three types of companies: basic value companies with wellestablished businesses whose stock is undervalued; consistent earner
companies when they are selling at valuations below historic norms;
and emerging franchises that are in the process of establishing a
leading position in a product, service or market expecting growth at
an above average rate.
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Glenmede Small Cap
Equity Adv GTCSX
T. Rowe Price Real
Estate TRREX
The investment seeks long-term appreciation consistent with
reasonable risk to principal. The fund normally invests at least 80% of
the value of net assets equity securities, such as common stocks and
preferred stocks of U.S. small cap companies that the Advisor
believes are undervalued. Small cap companies include companies
with market capitalizations, at the time of purchase, that are below the
largest market capitalization of any stock in the Russell 2000® Index
at its last rebalancing.
The investment seeks long-term growth through a combination of
capital appreciation and current income. The fund normally invests at
least 80% of net assets (including any borrowings for investment
purposes) in the equity securities of real estate companies. It is likely
to maintain a significant portion of assets in real estate investment
trusts (REITs). The fund generally invests in equity REITs. It may
invest up to 20% of assets in companies deriving a substantial portion
of revenues or profits from servicing real estate firms, as well as in
companies unrelated to the real estate business. The fund will not own
real estate directly.
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● New participating employees may make an initial investment election anytime
after your first contributions are received. If no election has been made, the
contributions will be allocated to a default fund. In addition, participants may
elect to make changes to their investment selection at any time by contacting
The Standard.
● If you do not make any investment election, your funds will be invested in the
Vanguard Wellesley Income Fund (VWIAX).
● You are encouraged to use the automatic rebalancer option at The Standard.
This option will rebalance your account assets to your selected investment
directives automatically on either a quarterly, semi-annual, or annual basis as
selected by you.
This Plan provides you with maximum flexibility to determine how you want to
invest your own account. However, with that ability comes a great responsibility.
Changes in investment choices should be made only after the most careful
consideration of your own situation, your tolerance for risk, your plans for
retirement, and many long-range plans based on your objectives.
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I. TYPE OF PLAN
This Plan is a collectively bargained multiemployer 401(k) pension plan funded by
collectively bargained employer contributions and voluntary payroll deductions by the
participating employees. It is considered a form of profit sharing plan for purposes of
the Internal Revenue Code.
An individual account is maintained for each participating employee. All employer
contributions made on behalf of an employee, and any employee contributions or
"qualifying rollover contributions" from another plan, are credited to the employee's
account. Net investment gains (after expenses) are also credited to the individual
accounts, and any investment losses and Plan expenses that cannot be charged against
investment income are deducted from the accounts.
The Plan is governed by a federal law known as the Employee Retirement Income
Security Act ("ERISA"). It is not, however, insured under the federal Pension Benefit
Guaranty Corporation ("PBGC"), as this is an individual account plan not covered by
PBGC. (Only defined benefit pension plans are insured by the PBGC.)
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II. ADMINISTRATION OF THE PLAN
The Plan is administered by a Board of ten Trustees, five of whom are appointed by the
participating Employer Associations and five by the participating Local Unions. The
powers and duties of the Trustees are set forth in a governing Trust Agreement.
The Trustees have retained various professional service providers to assist them in
operating the Plan. These include the third party administrator, who handles the day-today administration of the Plan, a record keeper, a professional investment manager, a
custodial bank, a consultant and a Trust attorney.
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III. INVESTMENTS
Each participating employee is entitled to direct the investment of his or her account, in
one percent (1%) increments, in any of the one or more of the investment options
available to you.
You may instead decide to use the Investing Made Easy feature at The Standard and
select from one or more of the five guided portfolios. Simply go online, and complete
the Investor Profile Quiz. Based on your score form the Investor Profile Quiz, identify
the corresponding Guided Portfolio. Choose one of the ready made Guided Portfolios
or create your own investment mix on the Investing Form.
You can receive a complete prospectus for each investment fund option by calling the
Administrative office or going online.
If you make no election, your entire account will be invested in the Vanguard Wellesley
Income Fund.
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IV. PARTICIPATION AND VESTING
If you are employed under a collective bargaining agreement between your employer
and a participating Local Union which requires employer contributions to be made to
the Plan on your behalf, you will become a participant in the Plan on the first day for
which such contributions are made or required to be made.
All amounts contributed to the Plan on your behalf are immediately vested (i.e.,
nonforfeitable). It is possible, however, that the balance in your individual account
could decline to zero if you work only a few hours a year and your share of the Plan's
expenses exceeds the combination of the contributions paid on your behalf and the net
investment gains credited to your account. (See also Section XII for a summary of other
circumstances which might cause a reduction, loss or delay in payment of your
benefits.)
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V.
EMPLOYER CONTRIBUTIONS
Employer contributions are made to the Plan at the rates set forth in the collective
bargaining agreements between the employers and Local Unions. If an employer makes
any contributions on behalf of an individual who is not covered by a collective
bargaining agreement or other written agreement requiring contributions to be made to
the Plan, all contributions will be returned to the employer as soon as practicable after
the error has occurred.
VI. EMPLOYEE CONTRIBUTIONS
Participating employees may elect to contribute a portion of their wages to the Plan, on
a pre-tax basis, in addition to the collectively bargained employer contributions.
Elections to change or stop these payroll deductions may be made at any time by giving
thirty (30) days advance written notice to the employer.
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VII. ELIGIBILITY FOR BENEFITS
Benefits are payable under this Plan in the event of a participating employee's early
retirement, normal retirement, permanent disability, termination of employment or
death, as follows:
Early Retirement:
Attainment of age 55, termination of employment, and written
certification that the participant does not intend to do any further work in the Sheet
Metal Industry.
Normal Retirement: Attainment of age 65 and termination of employment.
Permanent Disability: Disability by bodily injury, disease or mental disorder which, on
the basis of medical evidence, is found by the Trustees to be permanent and continuous
for the remainder of the employee's lifetime and which will render the employee
incapable of continuing in the employment of his or her employer or any other
participating employer or engaging in any other regular employment or occupation
substantially gainful character which the employee would otherwise have been expected
to be capable of performing in light of his or her training, experience and abilities.
Termination of Employment: A lapse of six (6) months since the employee's last hour
of employment in the Sheet Metal Industry, except:
(a) If the employee's only contributory employment was as an office employee of the
sponsoring Local Union or Association, the employee may qualify for benefits
immediately upon termination of that employment; and
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(b) If the employee's only employment during the twelve (12) month period immediately
preceding his or her application was as a contributing employer, he or she may
qualify for benefits without regard to that employment if (i) the employee's business
has contributed to the Plan for at least twelve (12) months, and (ii) the business
employs and is contributing for at least one bargaining unit employee at the time of
the application.
Effective February 1, 2012, participants under age 55 taking a distribution that is not
due
to
death
or
disability
will
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pay
a
$75
distribution
fee.
VIII. PAYMENT OF BENEFITS
The benefits payable under this Plan are based on the balance in the employee's
individual account. The normal form of benefit for a married participant is a joint and
50% survivor annuity, as described below. The normal form of benefit for an unmarried
participant is a single life annuity, as also described below. Under both of these forms of
benefit, the participant's individual account balance is converted into a series of monthly
payments with an equivalent actuarial value.
An application for benefits must be made on the form prescribed by the Trustees at least
two weeks before payments will commence.
The following describes the various benefit forms and options provided by the Plan:
A. Married Participants—Joint and Survivor Annuity
1. Benefit Amount. If you have been married for at least one year prior to retirement,
the Plan's normal form of retirement benefit is a joint and 50% survivor annuity,
unless your individual account balance is $5,000 or less. The joint and 50%
survivor annuity provides a reduced lifetime pension and, after your death, a
lifetime pension for your surviving spouse equal to one-half the monthly pension
amount paid to you during your life. If you select a joint and 50% survivor annuity
benefit, the Plan will use your individual account balance to purchase an annuity
from an insurance company or other entity at then current market rates or pay the
annuity directly to you.
With the consent of your spouse, you may waive the joint and survivor annuity and
select the lump sum option described in Section D below. You may also elect a
joint and 100% survivor annuity, which would provide a lower monthly benefit to
you during your life and 100% of that amount to your surviving spouse after your
death.
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2. Spousal Waiver/Beneficiary Designation. An election not to select a joint and
survivor annuity is effective only if your spouse consents in writing to such election
and that consent is witnessed by a Plan representative or notary public.
You are not allowed to designate a beneficiary other than your spouse without your
spouse's written consent. If you subsequently desire to revoke one beneficiary
designation and choose another non-spouse beneficiary, your spouse must consent to
the revocation and alternative beneficiary selection.
3. Explanation Given to Participant/Election Period. The Plan will provide you with a
written explanation of the joint and survivor annuity. To comply with the federal
requirement that the Plan provide information to you and your spouse during the
90-day period before payments are to commence, your completed application for
payment of your individual account should be submitted to the Plan Office at least
120 days before any proposed date for withdrawal of your individual account.
To avoid delays, you should also submit with your application a copy of your
marriage certificate and birth certificates for you and your spouse.
.
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B. Important Facts About the Joint and Survivor Annuity
1. Irrevocable Once Payments Commence. If you elect a joint and survivor
annuity, you may not withdraw or change your election after your first pension
payment has been made.
2. Spouse's Death Has No Effect. If upon retirement you elect a joint and survivor
annuity, you may not change that form of benefit coverage if your spouse dies
after your retirement. Thus, your pension will not be increased to the level you
would have received had this coverage not been provided.
3. Later Divorce Has No Effect. If you retire on a joint and survivor annuity and
subsequently divorce your spouse, your pension will not be increased to the level
you would have received had this coverage not been provided. In most instances
(i.e., unless a court order provides otherwise), your former spouse will continue
to be entitled to his or her portion of your pension. Moreover, if you
subsequently remarry, you may not transfer your former spouse's benefit
coverage to your new spouse
4. You are encouraged to price compare annuities from a variety of insurance
companies before selecting the annuity offered through The Standard
C. Life Annuity
The Life Annuity is the normal form of benefit for a non-married participant and is
an option for married participants. A life annuity is a single annuity for the life of
the participant. The total benefit payable is limited to the participant’s Individual
Account balance. The annuity may be purchased from an insurance company or
other entity.
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You are encouraged to price compare annuities from a variety of insurance
companies before selecting the annuity offered through The Standard.
D.
Lump Sum Payment
Once you are entitled to a benefit, you may waive the joint and survivor annuity
(subject to the spousal consent rules summarized above) and elect to have your
individual account balance paid to you in one lump sum.
E.
Partial Distribution
A participant may elect to have a portion of his or her individual account balance
distributed in a lump sum or in a series of fixed monthly payments. A partial
distribution must be for at least $5,000 and is limited to once per calendar year.
F.
Advance Distribution for Hardship
The Trustees may authorize a distribution of up to 100% of your individual
account balance in the event of immediate and heavy financial need. This
hardship distribution is not in addition to your other benefits and will therefore
reduce the value of the benefits you will receive at retirement.
Please note that documentation of hardship is required, and payment will not be
for an amount larger than the proof of hardship.
Whether an immediate and heavy financial need exists will be determined by the
Trustees based upon all relevant facts and circumstances. Generally, for example, the
need to pay the funeral expenses of a family member and any amounts necessary to pay
any federal, state, or local income taxes or penalties reasonably anticipated to result
from the distribution would be considered an immediate and heavy financial need, while
a distribution to purchase a television or boat would not. A distribution will be
authorized if it is used for one of the following purposes:
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The payment of expenses for medical care (described in Section 231 (d) of the Internal
Revenue Code) previously incurred by you or your dependent or necessary for you or
your dependent to obtain medical care;
1. The costs directly related to the purchase of your principal residence (excluding
mortgage payments);
2. The payment of tuition and related educational fees for the next twelve (12) months
of post-secondary education for yourself, your spouse or dependent;
3. The payment necessary to prevent your eviction from your principal residence or
foreclosure on the mortgage of your principal residence.
4. The payment necessary for funeral expenses for a member of the participant’s
family.
5. Expenses for the repair of damage to the participant’s principal residence that would
qualify for the casualty deduction under Section 165 of the Internal Revenue Code.
To receive a distribution for one of the preceding reasons, you must also certify and
agree that all of the following conditions are satisfied:
1. The distribution is not in excess of the amount of your immediate and heavy
financial need;
2. You have obtained all distributions, other than hardship distributions, and all
nontaxable (at the time of the loan) loans currently available under all plans
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maintained by your Employer;
3. Continued contributions to your account will not be affected by taking a hardship
distribution.
If you wish to receive a hardship distribution from the Plan in a single payment from
your account, you (and your spouse, if you are married) must first waive the annuity
form of payment. (See Section A, above, for a further explanation of how benefits are
paid from the Plan).
IX. LOANS TO PARTICIPANTS
Under certain circumstances participants may borrow from their accounts. To be
eligible for a loan, participants must have at least $2,000 in their individual account.
Participants need not be actively employed to request a loan. The spouse of married
participants must consent to each loan. Alternate payees are not eligible for loans. The
maximum loan term is five years. Payments must be made via automatic withdrawal
from a checking or savings account. The minimum amount participants can borrow is
$1,000 and the maximum amount is the lesser of (1) 50% of the participant’s account
balance or (2) $50,000 reduced by the excess, if any of the highest outstanding balance
of loans from the Trust during the one year period ending on the day before the date on
which the loan is made and the outstanding balance of loans from the Trust on the date
on which the loan is made.
All initiation and maintenance fees associated with a loan will be deducted from the
borrower’s account. The interest rate is fixed and will be equal to the Prime Rate (as
published by the Wall Street Journal) plus 1%. All interest paid is credited to the
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participant’s account. The amount borrowed will not share in earnings from the other
Plan investments. Loans may be paid in full or in part at any time, but failure to repay a
loan in accordance with the loan’s terms will result in default. A participant who
defaults on a loan will be taxed on the unpaid balance, plus accrued interest, and will
not be eligible for another loan at any time.
Participants can model and request a loan via The Standard Insurance Personal Savings
Center website at http://retirement.standard.com. A personal identification number is
required and one may be requested by calling the Standard Insurance at (503) 321-7526
or (800) 858-5420. Participants may also contact the Administrator at (800) 413-4928
ext. 1122 to request loans and additional information regarding the Plan’s loan
program.
X. DEATH BENEFITS
If you die before retirement or withdrawal of your individual account, your surviving
spouse will be entitled to a preretirement survivor annuity, which is a survivor pension
for your spouse's life equal to the amount of monthly benefits that can be provided by
your individual account balance. If your spouse desires such an annuity, the Plan will
use your individual account balance to purchase an annuity from an insurance company
or other entity at then current market rates. Non-spouse beneficiaries will receive a lump
sum distribution.
Upon your death your spouse may waive the survivor annuity form of benefit and
instead elect payment in a lump sum to be paid immediately, as described in Section
VIII above.
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XI. DISTRIBUTION RULES
A. Required Distributions
Based on Internal Revenue Code requirements, the Plan must commence paying your
benefits no later than the April I following the calendar year in which you attain age
70½ , without regard to your actual date of retirement.
If a participant’s individual account balance is less than $1000 as of December 31st of
any year and no contributions have been made on the participant’s behalf at anytime
during that year, the account balance shall be distributed as soon as administratively
feasible.
B. Rights of Former Spouse—Domestic Relations Order
The Plan is required to comply with a court order that awards a portion or all of your
pension benefits to a spouse, child or other alternate payee if the order qualifies as a
Qualified Domestic Relations Order ("QDRO"), as that term is defined in the Internal
Revenue Code.
A QDRO is an order that creates or recognizes the existence of a former spouse or
child's (or other alternate payee) right to receive all or a portion of your accumulated
pension benefits.
You or your attorney (or your spouse) may submit a proposed QDRO to the
Administrative Office where it will be forwarded to the plan’s attorney for review and
provide you with or your counsel with any required changes.
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C. No Assignments
Except for the loan provisions within the Supplemental Pension Plan, you may not
borrow against your pension nor may you pledge any part of it as security or collateral
for a loan or otherwise transfer your rights. Your pension is exempt from claims of
creditors, such as garnishments or executions, except for certain divorce and child
support orders as set forth in Section B above and certain claims that may be asserted by
the IRS.
XII. CIRCUMSTANCES THAT MAY RESULT IN INELIGIBILITY,
DENIAL, LOSS, FORFEITURE OR SUSPENSION OF BENEFITS
You or your spouse or other beneficiary could suffer a loss in the value of your
individual account balance or have payments delayed in the following circumstances:
1. Investment Losses. Your individual account balance could decrease if it is charged
with investment losses, such as the depreciation in the market value of the
investments.
2. Plan Expenses. Your individual account balance could decrease if your share of
Plan expenses exceeds your contributions and earnings.
29
3. Incomplete Application. Your benefits could be delayed if you fail to file a
completed application or other forms required by the Administrative Office before
the date you want your benefits.
4. Inaccurate Information. Your benefits could be delayed or withheld if you fail to
provide information or give false information to verify disability, age, beneficiary
information, or other vital information.
If you make a false statement to the Plan or other officials regarding the payment of
benefits or other issues related to the Plan, you will be liable to the Plan for any
benefits paid in reliance on such false statements or information, and any attorney
fees and costs incurred in effecting recovery or which were incurred as a result of
the false statement or information. This includes but is not limited to costs incurred
by the Plan Office, reasonable attorney fees, and interest charges. The Plan may
deduct any such fees and costs from any benefits otherwise payable to you or other
persons.
5. Domestic Relations Order. All or a portion of your benefits may be assigned by a
Qualified Domestic Relations Order (QDRO) to your spouse, your former spouse,
or for support of your children or other dependent.
30
6. Benefit/Contributions Limits. Your annual contribution cannot exceed the
maximum amount allowed by the Internal Revenue Code and applicable
regulations. Although the Trustees do not foresee this occurring, the Plan contains
provisions to address this situation.
7. Termination of the Plan. The Trust Agreement governing the Plan gives the Board
of Trustees the authority to terminate the Plan, although they have no intention of
doing so. The Trust Agreement also provides that the Plan will terminate upon the
expiration of all collective bargaining agreements and special agreements requiring
contributions to the Plan.
If the Plan should terminate, your benefits and the balance in your individual
account will remain fully vested but no further employer or employee contributions
will be received. The Trustees will wind up the affairs of the Plan, and any surplus
funds remaining in the Plan after the payment of expenses will be allocated among
the participants and beneficiaries in accordance with the Internal Revenue Code and
ERISA.
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XIII. DEFERRAL OF TAXES/ROLLOVERS
A. Deferral of Taxes
An advantage of this Plan is that non-taxed dollars accumulate non-taxed earnings for
your retirement. You pay taxes only when you receive your benefits. When taxes
become payable and how much tax is payable will depend on when and how you have
the money paid to you and on the tax laws in effect at the time.
There is a 10% penalty on early lump sum distributions, except for distributions on
account of disability, death, and distributions at age 55 or older, among other reasons.
Thus, if you receive a lump sum distribution of your Plan interest prior to age 55, the
IRS may assess a 10% penalty on the distribution. As explained below in Section B, the
Plan is required by federal law to withhold for taxes 20% of certain distributions from
the Plan.
Similarly, the IRS will assess a penalty against you if you do not begin receiving your
benefits by April 1st of the year following the year you attained age 70½.
B. Rollovers and Tax Withholding Rules
The rollover rules apply only when you are entitled to receive your benefits. If you are
eligible to receive your benefits in-a lump sum or in periodic payments of less than ten
years, your distribution qualifies for "rollover" treatment and can be taken in two ways.
You may have all or any portion of your pension either (1) paid in a "DIRECT
ROLLOVER" or (2) paid to you.
A rollover is a payment of your Plan benefits to an individual retirement arrangement
32
(IRA) or to another qualified employer plan. This choice will affect the tax you owe, as
follows:
1. Direct Rollover. If you choose a DIRECT ROLLOVER
• Your payment will not be taxed in the current year and no income tax will be
withheld.
•
Your payment from the Plan must be made directly to your IRA or if you
choose, to another qualified employer plan that accepts your rollovers.
• But, your payment will be taxed later when you take it out of the IRA or
employer plan.
2. Benefits Paid Directly to You. If you choose to have your Plan benefits PAID TO
YOU
• You will receive only 80% of the payment, because the Plan office is required by
law to withhold 20% of the payment and send it to the IRS as income tax
withholding to be credited against your taxes.
• Your payment will be taxed in the current year unless you roll it over. You may
be able to use special tax rules that could reduce the tax you owe. However, if
you receive the payment before the Plan's early retirement age of 55, you also
may have to pay an additional 10% tax.
33
XIV. CLAIMS AND APPEAL PROCEDURES
When you are ready to apply for your pension, you should obtain an application for
retirement form from the Administrative Office, and complete and return it at least 90
days before you intend to retire.
If your application for benefits is denied, you or your beneficiary can appeal the denial,
as follows:
A. If you or your beneficiary apply for benefits and are ruled ineligible by the Trustees,
or if you believe you did not receive the full amount of benefits you were entitled to,
or you are otherwise adversely affected by any action of the Trustees, you will have
the right to request the Trustees to conduct a hearing in the matter, provided that you
make such a request, in writing, within sixty (60) days after being apprised or, or
learning of, the action. The Trustees shall then conduct a hearing at which you or
your beneficiary will be able to present your position and any evidence which
supports your claim. You or your beneficiary may be represented at any hearing by
an attorney or other representative of your choice. Thereafter, the Trustees shall
issue a written decision affirming, modifying, or setting aside the former action.
B. If you or your beneficiary are dissatisfied with the written decision of the Trustees,
as described in Part A of this Section, you will have the right to appeal the matter to
arbitration in accordance with the Labor Arbitration Rules of the American
Arbitration Association unless the claim involves an application for Disability
Retirement, in which case you have the right to file suit in a state or federal court. A
request for arbitration must be submitted to the Trustees, in writing, within sixty (60)
34
days of receipt of the written decision. If an appeal to arbitration is requested, the
Trustees shall submit to the arbitrator a certified copy of the record upon which the
Trustees' decision was made.
The question for the arbitrator shall be (1) whether the Trustees were in error upon
an issue of law, (2) whether they acted arbitrarily or capriciously in the exercise of
their discretion, or (3) whether their findings of fact were supported by substantial
evidence.
The decision of the arbitrator shall be final and binding upon the Trustees, upon the
appealing party, and upon all other parties whose interests are affected thereby.
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XV. CONTACT WITH PLAN OFFICE
Any questions you have about the Plan and any other communications concerning the
Plan should be addressed as follows:
Northwest Sheet Metal Workers Supplemental Pension Trust
1220 SW Morrison St., Suite 300
Portland, OR 97205-2222
Telephone: (503) 222-7694
Toll Free: 1-800-413-4928
www.nwsheetmetal.aibpa.com
36
XVI. ADDITIONAL INFORMATION REQUIRED BY
ERISA
A. Names. Addresses and Telephone Numbers of Trustees
The Trustees of the Plan are the "plan administrators" and also the "plan sponsors" as
defined by ERISA. The names, addresses and telephone numbers of the current Trustees
are:
EMPLOYEE TRUSTEES
UNION TRUSTEES
Robert Carlton, Jr.
% McKinstry
16790 NE Mason Street, Ste. 100
Portland, OR 97230
PHONE: (503) 278-3914
Dale Welty
Sheet Metal Workers Local 23
1317 E. 75th Ave. #4
Anchorage, AK 99518
PHONE: (907) 277-5313
Tim Kester
Western Sheet Metal
101 N Johnson
PO Box 5107
Missoula, MT 59806
PHONE: (406) 728-6405
Brent Moore
Sheet Metal Workers Local 103
1537 Baldy, Suite 10
Pocatello, ID 83201
PHONE: (208) 233-5214
John Merk
Sheet Metal Workers Local 55
1718 W Sylvester St.
Pasco, WA 99301
PHONE: (509) 542-8700
Doug Nugent
Scott & From Co., Inc.
3820 S Junett
Tacoma, WA 98409
PHONE: (253) 473-6644
Jim Ryan
Sheet Metal Workers Local 103
5250 N. Montana Ave.
Helena, MT 59602
PHONE: (406) 458-3364
Jerry Freel
Holaday Parks
1820 Marika
Fairbanks, AK 99709
PHONE: (907) 374-2505
Eric Martinson
Sheet Metal Workers Local 66
11831 Beverly Park Rd., B-2
Everett, WA 98204
PHONE: (425) 493-5900
Bob Hightower
Apollo Sheet Metal Inc.
1207 W. Columbia Dr.
PO Box 7287
Kennewick, WA 99336
PHONE: (509) 586-1104 Op 2
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B.
Identification Number
The employer identification number assigned to the Plan by the Internal Revenue
Service is EIN 91-1702340. The Plan number is 001.
C.
Name and Address of Agent of Service of Process
The Trustees have designated Bruce McKenzie of McKenzie Rothwell Barlow & Korpi
PS., 1325 South Avenue, Suite 910, Seattle, Washington, 98101, as agent for the
purpose of accepting service of legal process on behalf of the Plan. Each member of the
Board of Trustees is also an agent for the purpose of accepting service of legal process
on behalf of the Plan.
D.
Plan Year
The Plan Year commences on January 1 and ends on the following December 31.
E.
Entities Which Hold and Invest Plan Assets
The assets of the Plan are held in Trust and invested as directed by the participant as
described in Section III, above.
F.
Statement of ERISA Rights
As a participant in the Plan, you are entitled to certain rights and protections under the
Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all
Plan participants shall be entitled to:
38
● Examine/without charge, at the Plan Administrator's Office and at other locations
such as worksites and union halls, all documents governing the Plan, including
collective bargaining agreements, and a copy of the latest annual report (Form 5500)
filed by the Plan with the U.S. Department of Labor and available at the Public
Disclosure Room of the Employee Benefits Security Administration.
● Obtain, upon written request to the Plan Administrator’s Office, copies of all Plan
documents, including collective bargaining agreements and copies of the latest
annual report (Form 5500) and updated summary plan description.
● Receive a summary of the Plan’s annual financial report. The Plan Administrator is
required by law to furnish each participant with a copy of this summary annual
report.
● Obtain a statement of the value of your pension benefits once a year, upon written
request.
In addition to creating rights for Plan participants, ERISA imposes duties upon the
people
who
are
responsible
for
the
39
operation
of
the
employee
benefit plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a
duty to do so prudently and in the interest of you and other Plan participants and
beneficiaries. No one, including your employer, your union, or any other person, may
fire you or otherwise discriminate against you in any way to prevent you from obtaining
a pension benefit or exercising your rights under ERISA.
If your claim for a pension benefit is denied in whole or in part, you must receive a
written explanation of the reason for the denial you have the right to have the Plan
review and reconsider your claim. Under ERISA, there are steps you can take to enforce
the above rights. For instance, if you request materials from the Plan and do not receive
them within 30 days, you may file suit in federal court. In such a case, the court may
require the Plan Administrator to provide the materials and pay you up to $110 a day
until you receive the materials, unless the materials were not sent because of reasons
beyond the control of the Plan Administrator.
If you have a claim for benefits which is denied or ignored in whole or in part, you have
a right to a hearing before the Trustees, at which time you may present your position
and any supporting evidence. You also have a right to be represented by an attorney or
any other representative of your choosing. If you are dissatisfied with the Trustees'
determination, you may request arbitration in accordance with the Labor Administration
Rules of the American Arbitration Association unless the claim involves an application
for Disability Retirement, in which case you have the right to file suit in a state or
federal court.
If it should happen that Plan fiduciaries misuse the Plan's money or other assets, or if
you are discriminated against for asserting your rights, you may seek assistance from
the U.S. Department of Labor, or you may file suit in a federal court. If you file a
40
lawsuit, the court may decide who should pay court costs and legal fees. If you are
successful, the court may order the person(s) you have sued to pay your costs and fees.
If you lose, the court may order you to pay the Plan's or other defendants' costs and fees,
for example, if it finds your claim is frivolous. If you have any questions about your
Plan, you should contact the Plan Office. If you have any questions about this statement
or about your rights under ERISA, you should contact the nearest office of the
Employee Benefits Security Administration, U.S. Department of Labor, listed in your
telephone directory, or the Division of Technical Assistance and Inquiries, Employee
Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue
NW, Washington D. C. 20210. You may also obtain certain publications about your
rights and responsibilities under ERISA by calling the publication hotline of the
Employee Benefits Security Administration at (866) 444-3272, or through the website at
www.dol.gov/ebsa.
41
FOR INFORMATION ABOUT YOUR PLAN, PLEASE
CONTACT THE TRUST ADMINISTRATION OFFICE
NORTHWEST SHEET METAL WORKERS
SUPPLEMENTAL PENSION PLAN
1220 SW Morrison St., Suite 300
Portland, OR 97205-2222
TELEPHONE (503) 222-7694
TOLL FREE: 1-800-413-4928
FAX: (503) 228-0149
www.nwsheetmetal.aibpa.com
42