2014 Pension SPD Bookmarked

8/9/2019 2014 Pension SPD Bookmarked

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OPERATING ENGINEERS PENSION PLAN100 E. Corson StreetPasadena, CA 91103

(626) 356-1000www.oefi.org

Board of Trustees

Union Trustees Employer Trustees William C Waggoner Mike RoddyMickey J. Adams Walt ElliotRonald J. Sikorski Michael CrawfordLarry Davison Mike PrlichDan E. Hawn Jim RyanDavid Garbarino

Dan Billy

Fund ManagerJoseph R. Ehrbar

Legal CounselCarroll & Scully

Laquer, Urban, Clifford & Hodge

ConsultantThe Segal Company

AuditorBernard Kotkin & Co.

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OPERATING ENGINEERS PENSION PLANN E

We are pleased to provide you with this Summary Plan Description booklet that describes thebenefits of your Pension Plan as of December 1, 2014.

We encourage you to review this booklet carefully so that you are aware of all of the benefits towhich you are entitled as well as some important restrictions and responsibilities. Our goal is topresent and explain your benefits in language that is easy to understand. However, sometimeswe must use terms that are not used in everyday conversation for legal reasons. You can call orwrite the Fund Office for answers to any questions you may have about the Plan and how anyrule affects you.

This booklet provides a summary of the Plan rules as in effect December 1, 2014. If the factsand circumstances of a particular situation must be considered for a time before December 1,2014, the provisions of the Plan in effect at the relevant date must be applied. Those provisionsmay be different from the current rules as explained in this booklet.

This booklet is only a summary of the Pension Plan rules. The complete rules of the Plan arecontained in the Operating Engineers Pension Plan which is available upon request from theFund Office. If there is any conflict between the information in this booklet and the Plan rules,the Plan rules will govern.

For your protection, only the Board of Trustees is authorized to interpret the rules of the Plan.Information you receive from the Union or employers or their representatives should be regardedas unofficial. Official information about your rights under the Plan must be communicated toyou, in writing, signed on behalf of the Board of Trustees. The Board has authorized the Fund

Office to communicate with participants on its behalf. Please remember to keep the Fund Officeinformed of any change in your mailing address. This will ensure that you receive allcommunications.

The Pension Plan has been providing benefits and retirement security for over 50 years. We areproud of the growth and success of the Plan and believe it will continue to provide significantmeasure of security to you and your beneficiaries for many years to come.

Sincerely,BOARD OF TRUSTEES

INTRODUCTION

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Pension Plan Protection Act

Glossary of Terms

Pension CreditsPrior Pension CreditCurrent Pension Credit

Vesting

Breaks in Employment and Permanent Breaks in Employment

Pension Eligibility Requirements and Amounts

Forms of Pension Payment

Death Benefits

Starting Your Pension Payments

Retirement and Suspension of Pension Payments forWork After Retirement

Appealing the Denial of a Claim

General InformationQualified Domestic Relations OrdersRollovers to Another PlanOverpaymentsIncompetency or Incapacity of a PensionerNon-Assignment of BenefitsInformation Required from Participants

Some Questions and Answers

Checklist: Things For You To Do

Facts About Your Plan

Statement of ERISA Rights

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TABLE OF CONTENTS


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Summary Plan Description

Pension Fund 2014Operating Engineers Local 12

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For the past several years, the OperatingEngineers (Local 12) Pension Fund hasfollowed a program to improve funding.This program was significantly altered in

2006 when Congress enacted the PensionProtection Act of 2006 (PPA). The PPAaims to strengthen defined benefit plans,such as ours, by requiring that the Fundadopt a series of plan changes, includingchanges to benefits and contributions toimprove funding. These changes are foundin a Rehabilitation Plan and Scheduleswhich the Trustees developed with guidancefrom actuaries and others. The two currentschedules are the Default Schedule and the

Alternative Schedule which make changesin benefits and adjust contributions. Everyyear, the Trustees review the Plans progressunder the Rehabilitation Plan and currentfinancial, actuarial and industry conditionsand make adjustments to the RehabilitationPlan and Schedules, as necessary.

The Alternative Schedule required increasesin employer contribution rates in order tomaintain the current level of benefits. In theevent an employer does not agree to the

increased contribution rates, the DefaultSchedule with reduced benefits must beimplemented for the employees of thatemployer. As of the current time (December,2014) a l l employers s ignatory to abargaining agreement with I.U.O.E. Local12 have agreed to the increased contributionrates required by the Alternative Schedule.As a result, no members have been affectedby the reduced benefits of the DefaultSchedule. In the event the Default Schedule

becomes applicable to any employers in thefuture, the employer and all employees ofthat employer will be so notified along witha description of the resulting benefitchanges.

Copies of the Rehabilitation Plan, itsSchedules and other information on the PPAcan be found on our website www.oefi.org or from the Fund Office.

Important Information on the Pension Protection Act and Possible Benefit Reductions


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GLOSSARY OF TERMS

Operating Engineers Local 12Pension Fund 2014

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Participant

You become a Participant when you work inCovered Service for an employer who isrequired to make contributions to this Plan.

Covered Service

Covered Service is work covered by acollective bargaining agreement for whichyour employer is required to makecontributions to this Plan.

Contiguous Non-Covered Service

This includes service of any kind fora contributing employer which immediatelyprecedes or follows Covered Service for that

same employer.Year of Service

You earn a Year of Service for each PlanYear in which you have at least 1,000 Hoursof Service.

Hour of Service

Each hour you are paid or entitled to be paidfor periods you work in Covered Service

and for periods during which no work isperformed such as hours for which backpay is awarded.

Plan YearThe twelve consecutive month period fromJuly 1 of one year to June 30 of the nextyear.

Normal Retirement Age

The later of age 65 or the 5 th anniversary ofthe date you became a Participant in thePlan, excluding participation before July 1,1988.

Pensioner

A Participant who has started to receivepension payments from the Plan.

Spouse

The person to whom a Participant orPensioner is legally married inaccordance with a marriage certificateissued by the state in which the marriagetook place.


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PENSION CREDIT


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Pension Credits are units that measure theamount of time a Participant has worked inemployment covered by the Plan. PensionCredits are based on your hours of such

employment. Pension Credits are used indetermining your eligibility for and amountof benefits payable under the Plan.

There are two types of Pension Credits:

Prior Pension Credit (for periodsbefore June 1, 1960)

Current Pension Credit (for periodsafter June 1, 1960)

PRIOR PENSION CREDIT (for periodsbefore June 1, 1960)

Prior Pension Credit is granted foremployment and military service as follows:

1. Work as an Operating Engineerbefore June 1, 1960. One PriorPension Credit is granted foreach Plan Year before June 1,1960 in which a Participantworked 1,200 hours or more(1/1200 of such credit for each

hour of work) in a job covered byone of the Collective BargainingAgreements in the geographicarea covered by the Plan. Creditis also granted for work in anindustry organized by the Unionbefore June 1, 1960, unless thatwork results in credit toward apension from a public agency.

2. E m p l o y m e n t b y t h e U n i o n

before June 30, 1960. One PriorPension Credit is granted for eachPlan Year of regular employmentby the Union before June 30,1960.

3. Military Service from 1940through 1947 and from 1950through 1956. One Prior PensionCredit is granted for each PlanYear (1/12 th of a credit for eachmonth) of service in the ArmedForces of the United Statesduring the years 1940 through1947 and 1950 through 1956.Credit is only granted if theParticipant was employed in a jobcovered by a CollectiveBargaining Agreement in theP l a n s g e o g r a p h i c a r e aimmediately before inductioninto military service and theParticipant returned to that typeof job within one year ofdischarge from military serviceor within one year of recoveryfrom a disability which continuedafter leaving the military. Nocredit is granted if the Participantwas dishonorably discharged.

Because it may be difficult to provideevidence of employment before June 1,1960, Prior Pension Credit is granted to eachParticipant at the rate of 1,200 hours foreach Plan Year of membership in goodstanding in the Union from May 1, 1930 toJune 1, 1960.

Important Limits on Prior Pension Credits

The maximum number of PriorPension Credits is 20.

Prior Pension Credit will be creditedto a Participant only if the Participantearns at least one-half of a CurrentPension Credit before incurring aPermanent Break in Employment.


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Current Pension Credit for Military Service.A Participant who served in the military andreturns to civilian employment as anOperating Engineer for a contributingemployer on or after December 12, 1994,will receive 3/100 of a Current PensionCredit for each calendar week of militaryservice. Military service means both

voluntary and involuntary duty in theuniformed services of the United States andincludes active duty, training (active andinactive), National Guard duty and periodswhen the Participant leaves civilianemployment as an Operating Engineer for anexamination to determine fitness for militaryservice.

CURRENT PENSION CREDIT (forperiods after June 1, 1960)

Current Pension Credit is granted foremployment and for military service asfollows:

Work as an Operat ing Engineer af terJu ne 1, 19 60 . Current Pension Credits arebased on contributions made to the Plan byemployers in accordance with a CollectiveBargaining Agreement. In general, one

Current Pension Credit is granted for each1,000 hours (1/1000 of a Current PensionCredit for each hour of service) ofemployment for a contributing employer.However, if an employer contributes to thePlan at less than the master or standard ratefor periods after June 1, 1968, Current

Pension Credit will be granted at a rate lessthan one Current Pension Credit for each1,000 hours of service. The following chartoutlines the amount of contributionsrequired for Current Pension Credit.

From Prior To ContributionsRequired For One

Full CurrentPension Credit

ContributionsRequired for1/1000 th of a

Current Pension CreditJune 1, 1968 July 1, 1970 $600 $0.60July 1, 1970 July 1, 1971 $800 $0.80

July 1, 1971 July 1, 1972 $1,000 $1.00July 1, 1972 July 1, 1973 $1,200 $1.20July 1, 1973 July 1, 1975 $1,500 $1.50July 1, 1975 July 1, 1976 $1,750 $1.75July 1, 1976 July 1, 1978 $2,000 $2.00July 1, 1978 July 1, 1979 $2,300 $2.30July 1, 1979 July 1, 1980 $2,600 $2.60July 1, 1980 January 1, 1981 $2,650 $2.65

January 1, 1981 February 1, 1982 $2,800 $2.80February 1, 1982 July 1, 1982 $2,950 $2.95

July 1, 1982 July 1, 1983 $3,150 $3.15July 1, 1983 July 1, 1997 $3,350 $3.35July 1, 1997 July 1, 2000 $3,450 $3.45July 1, 2000 July 1, 2006 $3,750 $3.75July 1, 2006 July 1, 2007 $4,050 $4.05July 1, 2007 July 1, 2008 $4,550 $4.55July 1, 2008 July 1, 2009 $5,050 $5.05July 1, 2009 July 1, 2011 $5,550 $5.55

July 1, 2011 andlater

$5,550 $5.55*

* This is the amount used for benefit accrual. The actual contribution rate paid by individualemployers may be higher because it includes a surcharge in accordance with Federal law.


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In order to receive this Current PensionCredit for military service, the Participantmust provide to the Fund Office documentsproving entitlement and must meet thefollowing conditions:

1. The Participant must work as an

Operating Engineer for acontributing employer or be on theout-of-work list of the Unionimmediately before entering militaryservice; and

2. The total of all absences for military

service must be less than 5 yearsunless the additional service wasrequired by the government to fulfilltraining requirements, to complete aninitial period of service, or becausethe Participant was unable to obtainorders for release; and

3. The Participant must return to workas an Operating Engineer for acontributing employer or beavailable for work on the out-of-work list of the Union in accordancewith the following timetable:

Length of Service Deadline to Return to Work orOut of Work List

Fewer than 31 days or for anexamination to determine fitnessto serve

2nd work day following transportation from place ofservice to Participants residence

More than 30 but fewer than 180days

14 days after completion of service unless impossible orunreasonable through no fault of Participant and thennext day possible

More than 180 days 90 days after completion of service unless hospitalizedor recovering from illness or injury from time in serviceand then when recovered. Maximum recovery period istwo years unless circumstances beyond Participantscontrol make it impossible or unreasonable and thentime necessary is allowed to accommodatecircumstances

No hours are granted for military service if the Participants separation from service is adishonorable or bad conduct discharge, under other than honorable conditions, by dismissalor by dropping the Participant from the military rolls.


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VESTING


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Vesting means that the Pension Credits youhave earned cannot be forfeited or lost andyou will be eligible for a pension when youmeet the age and other requirements.

However, vesting does not preventBreaks in Employment which may cause

the value of your Pension Credits to befrozen at the value in effect under the Plan atthe time of the Break instead of the value ineffect at retirement. See page 10 for the

Break in Employment rules.

The following outlines the requirements for vesting. In each case, you must meet therequirement before you have a Permanent Break in Employment.

Exception: If you are not part of the Local12 bargaining unit (a Non-BargainedEmployee) and you have at least one Hourof Service after June 30, 1989, you will be

vested when you have completed 5 Years ofService (a Year of Service is a Plan Year inwhich you have 1,000 Hours of Service).

Period Required Credits or ServiceOn or before June 30, 1976 At least 3 Current Pension Credits or 3,000 hours of

Covered ServiceOn or before June 30, 1978 At least 3 Current Pension Credits or 3,000 hours of

Covered Service, Contiguous Non-Covered Service or acombination of both

-OR-At least 2.7 Current Pension Credits or 2,700 hours ofCovered Service, Contiguous Non-Covered Service or acombination of both if you later bring the total of yourCurrent Pension Credits to 3 or your hours to 3,000

On or before June 30, 1980 At least 6 Current Pension Credits or 6,000 hours ofCovered Service, Contiguous Non-Covered Service or acombination of both-OR-At least 5 Current Pension Credits or 5,000 hours ofCovered Service, Contiguous Non-Covered Service or a

combination of both if you later bring the total of yourCurrent Pension Credits to 6 or your hours to 6,000On and after July 1, 1980 At least 10 Current Pension Credits or 10,000 hours of

Covered Service, Contiguous Non-Covered Service or acombination of both

For anyone with one Hour ofService after June 30, 1999

At least 5 Years of Service. A Year of Service is a PlanYear in which the Participant has 1,000 or more Hours ofService

On and after July 1, 1976 Normal Retirement Age (see page 5)


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BREAKS IN EMPLOYMENT ANDPERMANENT BREAKS IN EMPLOYMENT


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If you do not work enough hours, you mayincur a Break in Employment or aPermanent Break in Employment. A Break

in Employment may result in the value ofyour Pension Credits to be frozen at thelevel in effect at the time of the Break. APermanent Break in Employment may resultin the loss of the Pension Credits youaccumulated prior to the Permanent Break.

BREAKS IN EMPLOYMENT

Incurring a Break in Employment

The following will cause a Break inEmployment:

Failure to Work 500 Hours in ThreeConsecutive Plan Years. If you do notreceive credit for 500 hours of CoveredService in a period of three consecutive PlanYears, you will have a Break inEmployment. The Break takes effect onthe last day of the third Plan Year if thatlast day is before July 1, 1990. If the lastday of the three Plan Years is after July 1,1990, the Break takes effect retroactively tothe last day of the Plan Year before thethree-year period began.

Work for Non-Contributing Employers.You will have a Break in Employment ifyou:

1. Work in any employment afterJanuary 1, 1990 for an employer whodoes Operating Engineer work butwho has not signed a collectivebargaining agreement with Local 12requiring contributions to this Planor a Related Plan recognized by theTrustees; or

2. Work as an Operating Engineer afterJanuary 1, 1990, for an employer,whether or not signatory, if theemployer is not obligated to paycontributions for the work to the Planor to a Related Plan. (see pages 16and 17)

The Break takes effect on the last day of thePlan Year in which you work in theemployment described above unless the

employment is after July 1, 1994, in whichcase, the Break takes effect on the last dayof the month before the month of theprohibited employment.

You must provide documents or otherinformation requested by the Trustees toprove what type of work you are doing. Ifyou fail or refuse to provide requesteddocuments or information, the Trustees maypresume you have done work which causesa Break in Employment.

Exceptions: You will not incur a Break inEmployment for:

1. Work done at the request of Local 12in an authorized organizing effort; or

2. Work for an employer which hasterminated its Collective BargainingAgreement as long as Local 12continues bargaining with theemployer and does not tell you tostop working; or

3. Work for which a CollectiveBargaining Agreement temporarilyrequires that contributions beremitted to the Operating EngineersHealth and Welfare Fund instead ofthe Pension Plan.


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Effects of a Break in Employment

If you have a Break in Employment, yourpension will be calculated using the PensionFactors (see page 18) in effect at the time ofthe Break rather than the Pension Factors ineffect when you retire. This means your

pension will be lower than it would havebeen if you had no Break. However, in noevent will the Pension Factors be less than$8.00 for each Prior Service Credit and$12.00 for each Pension Credit unless youhave more hours reported to a Related Planthan to this Plan, in which case, paymentwill be based on the Pension Factors ineffect at the time the Credits were earned.

Waiving a Break in Employment

The Trustees may waive a Break in

Employment for the following reasons:1. Temporary or Total Disability,

unless the disability occurred duringor after employment for a non-contributing employer.

2. Military Service as outlined on pages6 - 8.

3. Participation on a picket lineauthorized by Local 12 on or afterJuly 1, 1969.

4. Unavailability of Operating Engineeremployment on and after June 1,1969, provided you submit theevidence required by the Trustees toprove that you were on Local 12sout-of-work list and continuouslyavailable for employment as anOperating Engineer and that you didnot work in employment for a non-contributing employer.

5. Employment by National Steel andShipbuilding Company between July1, 1975, through June 30, 1978 ifyou were dispatched to work thereby Local 12.

6. Work as a teacher providinginstruction in Operating Engineerskills if the teaching is at the requestor direction of the administrator ofthe Operating Engineers TrainingTrust.

If you believe you qualify for a waiver of aBreak in Employment, contact the FundOffice.

PERMANENT BREAKS INEMPLOYMENT

Incurring a Permanent Break inEmployment if you are not yet vested

You will have a Permanent Break inEmployment as follows:

Between June 1, 1960 and July 1, 1976.You will have a Permanent Break if you failto receive credit for 500 hours in each ofthree consecutive Plan Years. ThePermanent Break takes effect on the last dayof the third Plan Year.

Between July 1, 1976 and July 1, 1979. Youwill have a Permanent Break if you fail toreceive credit for 500 hours in each of three

consecutive Plan Years and you fail toreceive credit for 500 hours in each of aseries of consecutive Plan Years equal to thenumber of Pension Credits (or multiples of1,000 hours) previously accumulated. ThePermanent Break takes effect on the last dayof the last Plan Year in the series of PlanYears used to determine the PermanentBreak.

Between July 1, 1979 and July 1, 1985. You

will have a Permanent Break if you fail toreceive credit for 500 hours in each of aseries of consecutive Plan Years equal to thenumber of Pension Credits (or multiples of1,000 hours) previously accumulated. ThePermanent Break occurs on the last day ofthe last Plan Year in the series of Plan Yearsused to determine the Break.


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On and After July 1, 1985. You will have aPermanent Break if you fail to receive creditfor 500 hours in each of a series ofconsecutive Plan Years (not less than five)equal in number to the Years of Servicepreviously accumulated. A Year of Serviceis a Plan Year in which you are creditedwith at least 1,000 Hours of Service. ThePermanent Break occurs on the last day ofthe last Plan Year in the series of Plan Yearsused to determine the Break.

For Example: Lets say you have 1,000Hours of Service in each of the four PlanYears from 2002 through 2005. You willhave a Permanent Break if you then havefewer than 500 hours in each of the five PlanYears from 2006 through 2010.

Effects of a Permanent Break inEmployment

If you incur a Permanent Break inEmployment, all of the Pension Credits andYears of Service earned prior to thePermanent Break will be permanentlyforfeited and cannot be used to apply for apension or for any other purpose under thePlan.

Waiving a Permanent Break inEmployment

The Trustees may waive a Permanent Breakin Employment for the following reasons:

1. Temporary or Total Disability formore than six months of a Plan Year.

2. Service in the Armed Forces of theUnited States or in the Public HealthService of the United States.Contact the Fund Office for detailedrules.

3. Absence from Covered Service on orafter July 1, 1985 due to maternity orpaternity leave. This includes yourpregnancy, birth of your child, theplacement of an adopted child with

you or the care of your child afterbirth or adoption.

4. Unavailability of work in CoveredService on and after July 1, 1990,provided you have been on Local12s out-of-work list, continuouslyavailable for work in CoveredService while not working, and havenot worked for a Non-ContributingEmployer during the Plan Year.

If you believe you qualify for a waiver of a

Permanent Break in Employment, contactthe Fund Office.


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PENSION ELIGIBILITY REQUIREMENTS AND AMOUNTS


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This section describes the eligibilityrequirements and amounts for each type ofpension available under the Plan. Theamount of monthly payment for each type

will vary based on a number of factors suchas your age, accumulated Pension Creditsand the form of pension you elect.Information about the amount of paymentwill be found in the section on Forms ofPension Payment as well as in this section.

In order to receive any pension, youmust file an application and submit thedocuments required by the Plan. Your

pension cannot be effective earlier thanthe month following the month theapplication has been received by theFund Office. See Pension Effective Dateon page 25.

Important: It is possible to be eligible for a pension and not be vested which means you canlose your right to a pension if you have a Permanent Break in Employment before becomingvested.

In order to receive any pension, youmust file an application and submit thedocuments required by the Plan. Your

pension cannot be effective earlier thanthe month following the month theapplication has been received by the

on page 25.Fund Office. See Pension Effective Date


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* If you are Totally and Permanently Disabled, you must have 500 hours in the 24 monthspreceding the effective date of your Social Security Disability Award or in the 24 monthspreceding the date you are determined to be Totally and Permanently Disabled based onmedical evidence.

Pension Eligibility Requirements

The following chart outlines the age and service requirements for each type of pension underthe Plan.

Pension Type Age Service Requirement

Regular 62 or older 3 Current Pension Credits or 3,000 hours on or beforeJune 30, 1978

or 6 Current Pension Credits or 6,000 hours

or Vested (see page 9)

Early 45 or older butyounger than 62

Same as Regular Pension

Service 60 or older 30 years of service without a Break in Employment and 30,000 hours in this Plan

A year of service for this purpose means each year of PriorPension Credit and each Plan Year in which you have at leastone hour.

Disability Younger than 62 of one Current Pension Credit or 500 hours on or before June 30, 1978

or 6 Current Pension Credits or 6,000 hours

or Vested (see page 9)

Additional Requirements

1. You have not elected to receive and you are noteligible for disability benefits under the OperatingEngineers Health & Welfare Fund, and

2. You do not have a Break in Employment for failing tohave 500 hours in three Plan Years unless you arecredited with 3,000 hours after the Break, and

3. You do not have a Break in Employment because youworked for a Non-Contributing Employer unless youare credited with 6,000 hours after the Break, and

4. You have 500 hours reported in the last 24months preceding your Pension Effective Date,*

and

5. You are Totally and Permanently Disabled (see page 15)ProRata See page 16 See page 16


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Definition of Total and PermanentDisability

You are considered to be Totally andPermanently Disabled if the Trustees findthat you are unable to engage in anysubstantial gainful activity because ofsickness or accidental bodily injury or both.Your disability can be physical or mental,but it must be so severe that it is expected toresult in your death or that it has lasted orwill last for at least 12 months. You will notbe considered Totally and PermanentlyDisabled if your injury or disease was self-inflicted, caused by the use of narcotics thatwere not prescribed for you by a physician,or was due to your commission or attempt tocommit a felony.

You will not be considered Totally andPermanently Disabled just because you canno longer do your job as an OperatingEngineer or perform the normal duties of anOperating Engineer. You must be sodisabled that you cannot perform any typeof substantial gainful employment. Thismeans work that involves significantphysical or mental duties which areproductive and the work is done for profit.The Trustees will consider your age,education and work experience as well asthe nature of your disability to determine ifyou are Totally and Permanently Disabled.

Proof of Total and PermanentDisability

The Trustees may obtain competent medicalevidence to assist them in determining if youmeet the Plans definition or they mayaccept as proof of your disability, a SocialSecurity Disability Award.

In order to determine that you continue tomeet the Plans definition of Total andPermanent Disability, the Trustees will,from time to time, require that you submitdocuments and other evidence, includingresults of medical examinations.

Changing from an Early or ServicePension to a Disability Pension

You may change your Early or ServicePension to a Disability Pension by filing awritten request for the change and meetingthe following requirements:

Using Medical Evidence

You must have filed an applicationfor a Disability Pension on or beforethe effective date of your Early orService Pension, and

You must have met the servicerequirements for a Disability Pensionwhen you applied for your Early or

Service Pension, and You must provide competent

medical evidence that you wereTotally and Permanently Disabledbefore the effective date of yourEarly or Service Pension.

The Disability Pension will be effective onthe first of the month following the receiptby the Trustees of the medical evidence.

Using a Social Security DisabilityAward (SSDA)

You must be awarded a SocialSecurity Disability benefit, and

You must have met the servicerequirements for a Disability Pensionwhen you applied for your Early orService Pension, and

You must have applied for an Earlyor Service Pension on or afterOctober 1, 1999.

The Disability Pension will be effective onthe first of the month following the effectivedate of the Social Security Disabilitybenefits.


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If your SSDA is effective after the effectivedate of your Early Pension, the higheramount of the Disability Pension will not bepaid to you until the difference between theEarly Pension and Disability Pension equalsthe total amount paid to you as an EarlyPension before your SSDA was effective.

Recovery from a Disability

If you recover from your disability or youlose your Social Security Disability Award,you must report your recovery or loss, inwriting, to the Trustees within 30 days. Ifyou fail to timely report, your eligibility forpension at a subsequent retirement will bepostponed for six months plus the number ofmonths you received Disability Pension

payments to which you were not entitled.The six-month period will not extendbeyond your Normal Retirement Age.However, the Trustees will recover theoverpayment from your pension bydeducting 100% of the first pension paymentdue to you when payments resume and 25%per month after that until the full amount isrecouped.

If you recover from your disability you can

return to work as an Operating Engineer, ifyou wish, and continue to earn PensionCredits.

Pro Rata Pensions

Pro Rata Pensions (sometimes calledReciprocal Pensions) are provided forParticipants who would not otherwisequalify for a pension, or whose pensionwould be less than they would otherwise be,

because their years of employment weredivided between the geographic area ofLocal 12 and other areas which have theirown Operating Engineers pension plans.These other plans are called Related Plans.

The Trust has reciprocal agreements withmany Related Plans in the United States andCanada. These agreements allow the hoursyou worked in the Related Plans to be

combined with the hours you worked in thisPlan to meet the eligibility requirements fora pension in this Plan. However, the benefitpayable to you from this Plan is based solelyon the Credits you earn in this Plan. TheRelated Plans may pay you a pension for thecredits you earn in their areas. You wouldreceive a check from each pension plan, nota combined check.

The hours you earn in Related Plans can alsobe used to prevent a Permanent Break inEmployment in this Plan.

Western States and Rock ProductsReciprocity Agreements

You are eligible for a Pro Rata Pension ifyou are retired from Operating Engineerwork and would be eligible for a Regular,Early or Disability Pension from this Planbased on the combination of hours from thisPlan and Related Plans covered by theseagreements.

The amount of pension is determined in thesame way as the Regular, Early or DisabilityPension based only on the Credits earned inthis Plan. However, no benefit is payablefor any Prior Service Credit unless you haveat least of a Pension Credit beforeFebruary 16, 1968.


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International Union Reciprocity Agreement

You are eligible for a Pro Rata Pension ifyou are retired from Operating Engineerwork and would be eligible for a pensionfrom this Plan based on the combination ofhours from this Plan and Related Planscovered by this agreement and meet thefollowing requirements:

1. You are credited with at least oneYear of Service for employmentunder this Plan (contributionsmust be made to this Plan); and

2. You are eligible for a Pro RataPension from the Related Plan; and

3. You waive the right to any otherpension under this Plan.

The amount of pension is determined in thesame way as the other pensions in this Planbased only on the Credits earned in thisPlan.

National Pipeline Agreement CentralPension Plan

The Trustees have adopted a policy whichallows for the transfer of contributions forwork you do under the National PipelineAgreement from the Central Pension Fundto this Plan. The dollar amount transferredis divided by the current contribution rate inthis Plan to determine the number of hourscredited under this Plan. The hours creditedwill be added to the hours you earned in theLocal 12 area to establish the Pension Creditin this Plan.


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Pension Amounts

Following is the basic formula forcalculating the amount of a monthlypension. The amount of monthly pension isaffected by the form of payment you elect atretirement. See pages 20 - 22.

Regular, Service and DisabilityPensions

The monthly payment is calculated bymultiplying your Prior Pension Credits andCurrent Pension Credits (and fractions of

each) times the Pension Factors from thefollowing table, and adding the results.

If you have a Break in Employment, Creditsearned before the Break will be multipliedby the Pension Factor in effect at the time ofthe Break, but not less than $8.00 for eachPrior Pension Credit and $12.00 for eachCurrent Pension Credit. However, if youhave more hours reported to a Related Planthan to this Plan the Pension Factor in effectat the time the Credits were earned will beused to calculate the amount of pension youreceive.

PENSION FACTORSEffective Date Prior Pension Credit Current Pension Credit

July 1, 1966 $4.50 $3.65

July 1, 1967 $7.20 $5.65July 1, 1968 $7.20 $7.95July 1, 1970 $7.20 $9.00July 1, 1971 $7.20 $11.00July 1, 1972 $8.00 $12.00July 1,1973 $8.00 $15.50July 1, 1975 $8.00 $20.00

December 1, 1978 $8.00 $22.00July 1, 1979 $8.00 $23.00

January 1, 1981 $8.00 $24.00February 1, 1982 $8.00 $25.00

July 1, 1982 $8.00 $26.00January 1, 1984 $8.00 $27.00

July 1, 1985 $8.00 $29.00July 1, 1986 $8.00 $30.00July 1, 1987 $8.00 $31.00July 1, 1988 $8.00 $33.00July 1, 1989 $8.00 $34.00July 1, 1990 $8.00 $35.00July 1, 1991 $8.00 $36.00July 1, 1994 $8.00 $37.00

January 1, 1997 $8.00 $39.00September 1, 1997 $8.00 $40.00

July 1, 1998 $8.00 $45.00August 1, 1999 $8.00 $46.00

February 1, 2000 $8.00 $47.00August 1, 2000 $8.00 $50.00October 1, 2001 $8.00 $54.00August 1, 2006 $8.00 $55.00

July 1, 2007 $8.00 $58.00


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19

Early Pension

The amount of the Early Pension iscalculated by first determining the amountof Regular Pension you would be entitled toreceive if you were age 62 and then reducingthat amount by of 1% for each month (3%for each year) you are younger than age 62on the effective date of your pension.

Exception: If you have a Break inEmployment because you worked for aNon-Contributing Employer, the amount ofthe reduction is of 1% for each monthyou are younger than age 62.

Delayed Retirement

If you have met the eligibility requirementsfor a pension and have stopped working butyour effective date is delayed beyond yourNormal Retirement Age (see page 5), yourbenefit may be increased to reflect thisdelay. The adjustment is based on actuarialtables. The Fund Office can tell you howmuch this adjustment will be.


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FORMS OF PENSION PAYMENT


20

When you apply for your pension, you mustelect the form of payment you want toreceive. Once the pension begins, youcannot change your election.

If you are married, you will receive a writtenexplanation from the Fund Office describingthe forms of payment and estimates of themonthly pension amounts under each form.You will have a period of not more than 90days before your pension begins or fewerthan 30 days after you receive the writtenexplanation to make your election. The 30-day minimum period may be waived if youand your Spouse agree to the waiver, youare given at least 7 days to change anelection, and your pension begins no earlier

than the 8th

day after the Fund Officeprovides the written explanation.

Following are the forms of paymentavailable under the Plan.

Single Life Annuity (with 120 monthsguaranteed)

This is the automatic form of paymentfor unmarried Participants. A marriedParticipant may elect this form only ifhe and his Spouse have properlyrejected the Joint & Survivor Annuity.

This form provides a monthly pension to thepensioner for life. In the event the pensionerdies before receiving 120 monthly pensionpayments, the monthly pension will continueto be paid to the pensioners designatedbeneficiary until a total of 120 monthlypayments have been made to the pensionerand his beneficiary combined. If thebeneficiary is not the pensioners Spouse, allpayments will be paid within five years ofthe pensioners death.

For married Participants, the Spouse isautomatically the beneficiary unless theparticipant and Spouse complete aDesignation of Beneficiary Form namingsomeone other than the Spouse and theSpouse consents to that beneficiary.

50% or 75% Joint & SurvivorAnnuity (formerly called theHusband-and-Wife Pension)

This is the automatic form of payment formarried Participants and is not available tounmarried Participants. If the Participantand Spouse want to elect the Single LifeAnnuity, they must reject this form ofpayment at retirement.

This form provides a reduced monthlypension to the pensioner for life. If thepensioner dies before the Spouse, 50% or75% of the reduced monthly pension,whichever the pensioner and Spouse elect atretirement, will continue to be paid to the

pensioners surviving Spouse for theSpouses lifetime. It is reduced from theSingle Life Annuity form because it spreadsbenefits over two lifetimes the pensionerand the Spouse. The amount of reduction isbased on the ages of the pensioner andSpouse. The amount of reduction will belarger (the amount of monthly pensionsmaller) under the 75% form than under the50% form. The Participant and Spouse mustelect, at retirement, if they want the 50% orthe 75% survivors annuity.

The Spouse who is married to theParticipant at the time of the Participantsretirement will be entitled to this lifetimepension even if the Participant and Spouseare subsequently divorced. If the Spousedies before the pensioner, all paymentscease upon the pensioners death. If bothdeaths occur before 36 monthly paymentshave been made, payments will continue tobe paid to the pensioners beneficiary on theaccount until a total of 36 payments havebeen made.


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21

The amount of pension payable under theJoint & Survivor Annuity is calculated asfollows:

50% Joint & Survivor Annuity

Non-Disability Pension

Multiply the amount of pension payableunder the Single Life Annuity by 94%minus 0.5% for each year the Spouse isyounger than the pensioner or plus 0.5% foreach year the Spouse is older than thepensioner, but not more than 100%.

Disability Pension

Multiply the amount of pension payableunder the Single Life Annuity by 91.5%minus 0.4% for each year the Spouse isyounger than the pensioner or plus 0.4% foreach year the Spouse is older than thepensioner, but not more than 100%.

75% Joint & Survivor Annuity

Non-Disability Pension

Multiply the amount of pension under theSingle Life Annuity by 89.0% minus 0.5 %for each year the Spouse is younger than thepensioner or plus 0.5% for each year theSpouse is older than the pensioner, but notmore than 100%.

Disability Pension

Multiply the amount of pension payableunder the Single Life Annuity by 82.0%minus 0.4% for each year the Spouse isyounger than the pensioner or plus 0.4% foreach year the Spouse is older than thepensioner, but not more than 100%.

Special Rules for the Joint & Survivor Annuity . The Joint & Survivor Annuity willnot be paid:

1. Unless the Participant and Spouseare lawfully married when pensionpayments begin, unless a Qualified

Domestic Relations Order providesotherwise.

2. If the marriage of the Participant andSpouse is legally terminated beforethe pension begins, unless aQualified Domestic Relations Orderprovides otherwise.

3. If the marriage of the Participant islegally terminated before theParticipant dies, if the Participantdies before a pension is payable,

unless a Qualified DomesticRelations Order provides otherwise.

4. If the Participant and Spouse arelawfully married to each other forless than one year before theParticipant dies.

5. If the Spouse dies before theParticipants pension begins orbefore the Participants death, if theParticipant dies before a pension ispayable.

The Trustees will rely on your writtenstatement before your pension begins todetermine if you are married. If thestatement is false, the Trustees will adjustthe pension to recoup payments made inerror.


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22

Automatic Lump Sum Benefit (insteadof Monthly Pension Payments)

In general, the pensions payable by the Planare paid in monthly payments. You cannotchoose to receive your monthly pension in alump sum. However, if at the time your

pension begins, the actuarial present valueof your monthly benefit is $5,000 or less, theTrustees will automatically pay you thatpresent value in one lump sum payment.After that amount is paid to you, no furtherpayments are payable to you from the Plan.

Lump Sum Benefit at Retirement

This benefit is payable in addition to themonthly pension. It provides a single sum

payment equal to $250 for each year ofPension Credit, up to a maximum of $2,500for 10 years of Pension Credit. Thepensioner may elect to take all or some ofthis benefit at retirement or to defer all orsome of it to be paid to his spouse orbeneficiary upon his death.

If the pension is paid in the form of the Joint& Survivor Annuity (50% or 75%), thepayment will not be made in a single lumpsum. Instead the actuarial value of the lumpsum will be included in the amount of themonthly pension for as long as the pensionis payable. The Fund Office can tell you theamount of the actuarial value of the lumpsum benefit.


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DEATH BENEFITS


23

Death After Retirement BenefitsBegin

If you die after retirement, death benefits are

payable based on the form of pensionpayment you elected when you retired. Seepages 20 - 21. However, if you elected the50% or 75% Joint & Survivor Annuity butyou have been married for fewer than 12months when you die, your survivingSpouse will automatically be entitled to the120 Month Guarantee Benefit (outlinedbelow) adjusted for the amounts youreceived as a Joint & Survivor Annuity.

If you deferred all or a portion of the LumpSum at Retirement Benefit to be paid uponyour death (see page 22), the amount ofbenefit deferred will be paid to yourbeneficiary.

Death Before Retirement BenefitsBegin

Lump Sum Benefit

Your beneficiary is entitled to a lump sum

payment equal to $250 for each PensionCredit you have accumulated when you die,up to a maximum of 10 Credits. Theminimum death benefit is $1,000 and themaximum death benefit is $2,500. Thislump sum benefit is in addition to the pre-retirement Joint & Survivor Annuity or the120 Month Guarantee.

Pre-Retirement 50% Joint & SurvivorAnnuity

If you have been married for at least 12months and die before retirement after youhave met the service requirements for apension, your surviving Spouse isautomatically entitled to the pre-retirement50% Joint & Survivor Annuity. This benefitis calculated as if you had retired on the50% Joint & Survivor Annuity (see page 21)on the day before you died.

If you are younger than age 45 on the date ofdeath, benefits will not commence until thefirst of the month following the month inwhich you would have attained age 45 hadyou lived. If you are age 45 or older on thedate of death, benefits will commence thefirst of the month following the date of deathunless your spouse elects to defer thecommencement of benefits to a later date.In no event will benefits begin later thanDecember 1 of the year in which you wouldhave reached age 70-1/2 had you lived, orDecember 1 of the year in which you died.

Your surviving Spouse may elect, within 90

days after receiving written notice from theFund Office, the 120 Month GuaranteeBenefit instead of the 50% Joint & SurvivorAnnuity.

120 Month Guarantee

If you are not married or you have beenmarried for fewer than 12 months when youdie, your beneficiary is entitled to 120monthly payments equal to the amount of

Regular Pension you would have received ifyou had been age 62 and retired on a SingleLife Annuity on the day before you died. Ifyou are married, this benefit is payable toyour surviving Spouse unless youdesignated someone other than your Spouseas your beneficiary and your Spouseconsented to that designation on the PlansDesignation of Beneficiary Form.

Designating a Beneficiary

You may designate a beneficiary orbeneficiaries by completing the PlansDesignation of Beneficiary Form. Federallaw and the Pension Plan rules require that ifyou are married, certain benefits areautomatically paid to your surviving Spouse,as follows:


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24

Death Before Retirement Benefits.

If you have been married for at least 12months when you die, your survivingSpouse is automatically entitled to the Plansdeath benefits. You may not name adifferent beneficiary even if your Spouse

agrees. If you have been married for lessthan 12 months when you die, yoursurviving Spouse is automatically entitled tothe Plans death benefits. However, youmay name someone other than your spouseif your Spouse consents to that designationon the Designation of Beneficiary Form. Assoon as you have been married for 12months, your Spouse automaticallybecomes your beneficiary for DeathBefore Retirement Benefits.

Death After Retirement Benefits.

If you elected the 50% or 75%Joint & Survivor Annuity , benefitsare automatically payable to theSpouse to whom you were married atthe time of your Annuity StartingDate (page 25), even if you are laterdivorced and remarried.

If you elected the Single LifeAnnuity , benefits are automatically

payable to your surviving Spouseunless you are not married when youdie or you name someone other thanyour Spouse and your Spouseconsents to that designation on theDesignation of Beneficiary Form. Ifyou are not married when you die,

the beneficiary named on theDesignation of Beneficiary Form isentitled to receive the Plans deathbenefits.

Failure to Designate a Beneficiary

If you do not have a beneficiary becausenone was designated, or the beneficiary diedbefore you or before receiving all of thebenefits payable on your behalf, or thebeneficiary cannot be found within twoyears after you die, then any benefits

payable will be paid to your survivingSpouse. If you have no surviving Spouse orthe Spouse cannot be located within twoyears of your death, the benefits will be paidto your heirs or estate.

The Trustees have the sole discretion todecide whether to pay benefits to your heirsor estate when you have no spouse ordesignated beneficiary.


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STARTING YOUR PENSION PAYMENTS


25

Effective Date (Annuity StartingDate)

The first date for which your pension ispayable is called the Effective Date orAnnuity Starting Date. Except as outlinedunder Required Payments below, the FundOffice cannot pay a pension to you unlessyou are retired and have filed a pensionapplication.

Pensions are usually effective on the firstday of the month after the completedpension application is received by the FundOffice. Commencement of payments maybe delayed due to administrative processing.However, once payments commence, theywill be retroactive to the first of the monthfollowing receipt of the application or laterif requested by the Participant.

Disability Pension payments cannot beeffective before the date you are determinedto be Totally and Permanently Disabled (seepage 15). To assure that your pension willbe paid as soon as possible, it is advisable to

file your pension application with the FundOffice at the same time that you apply forSocial Security Disability benefits andpromptly send the Social Security DisabilityAward letter you receive from SocialSecurity to the Fund Office.

Your Effective Date must be at least 30 daysafter the Fund Office gives you a writtenexplanation of the forms of payment andestimates of the monthly pension amounts

under each form. You will have a period ofnot more than 90 days before your pensionbegins or fewer than 30 days after youreceive the written explanation to make yourelection. The 30-day minimum period maybe waived if you and your Spouse agree tothe waiver, you are given at least 7 days tochange an election, and your pension beginsno earlier than the 8 th day after the Fund

Office provides the written explanation.The 30-day minimum period is also waivedif your benefit is being paid in a lump sumbecause the value of your lifetime benefit is$5,000 or less.

Required Payments

Normal Retirement Age.Even if you do not file an application forpension, unless you sign a written statementasking that your pension payments bepostponed, your pension payments mustbegin no later than 60 days after the end ofthe Plan Year in which you reach Normal

Retirement Age and retire.

Required Beginning Date.Even if you do not file an application forpension, the Plan must begin makingpension payments to you when you reachyour Required Beginning Date. You maynot postpone payments beyond this date.

If you are a 5% owner of the employermaking contributions to the Trust on your

behalf, your Required Beginning Date isApril 1 following the calendar year in whichyou attain age 70-1/2.

If you are not a 5% owner and reach age 70-1/2 in 1999 or later, your RequiredBeginning Date is April 1 following thecalendar year in which you attain age 70-1/2or, if later, April 1 following the calendaryear in which you retire. If you reached age70-1/2 before 1999, your Required

Beginning Date may be determined in adifferent manner. Please contact the FundOffice for details.


27/45


28/45


RETIREMENT AND SUSPENSION OF PENSION PAYMENTS FOR WORK AFTERRETIREMENT


27

In order to receive a monthly pensionfrom this Plan, you must retire andcannot perform any work that is covered

or prohibited by the Plan. If you arereceiving a Regular, Early or ServicePension, you can work in anyemployment other than OperatingEngineer work. You can do someOperating Engineer work if you havereached Normal Retirement Age asoutlined below. If you are receiving aDisability Pension, you cannot work inany substantial gainful employmentbecause you must be Totally and

Permanently Disabled to be eligible for aDisability Pension. See page 15 for thedefinition of Total and PermanentDisability.

Retirement

The definition of retirement depends onwhether you have reached NormalRetirement Age (see page 5).

Before Normal Retirement Age.

You may not do any work of the typecovered by any Operating Engineercollective bargaining agreement no matterwhere you work or whether the work isactually covered by a collective bargainingagreement in the area where you areworking.

After Normal Retirement Age.You may work 39 or fewer hours in amonth, but not more than 40, in the same

industry, the same trade or craft and thesame geographic area covered by thisPlan. The same industry means thebusiness activity of any employer whichincludes employment that was covered bythe Plan when your pension began. Thesame trade or craft means an occupationin which you were employed at any timeunder the plan or one that uses the same

skills, and it also means self-employmentor supervisory employment related tothose same skills. The same geographic

area means California and Nevada.

Suspension of Pension Payments

If you return to work in the type ofemployment outlined above after yourEffective Date, your pension will besuspended for each calendar month of suchwork. When you stop working in prohibitedemployment, your pension payments willresume.

If you are younger than Normal RetirementAge when your pension is suspended, youwill have additional penalties for multiplesuspensions: one additional month ofpension for the second return to CoveredService, three additional months of pensionfor the third, and six additional months ofpension for the fourth. None of thesesuspension penalties will extend beyondyour Normal Retirement Age.

Once you have reached your RequiredBeginning Date (see page 25), your pensionwill not be suspended for any type orduration of work.

Required Notifications

Notice of employment by Pensioner.If you return to work in prohibitedemployment after retirement, you mustnotify the Trustees of your employment, inwriting, within 30 days after you start work.If you fail to notify the Trustees of yourprohibited employment after you reachedNormal Retirement Age, and the Trusteesdiscover that you are engaged in suchemployment, the Trustees will presume thatyou are working 40 or more hours eachmonth. The Trustees will also presume that,if you are working on a construction site,


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28

that you have been at that site for as long asthe employer has been there. You canprovide evidence that you are not workingas much as the Trustees presume.

Notice of Suspension of Benefits.The Fund Office will give you written noticeof the suspension of your pension in personor by first class mail during the first monthbenefits are suspended. The notice will tellyou why the pension is being suspended,how you can get the Trustees to review thesuspension, and how you can get yourpension restarted. The notice will alsoexplain how the Plan will recover anybenefits which were previously paid in error.

Notice of the end of employment byPensioner.You must notify the Trustees in writingwhen you have stopped working inprohibited employment. Your pension willnot be started again until you give thisnotice.

Pension Payments FollowingSuspension

When you stop working in employmentwhich caused your pension to be suspended,your pension will start again no later thanthe third month after the last month forwhich your benefit was suspended, if youhave provided the required notice outlinedabove. You will receive a benefit which isequal to the benefit you were receivingbefore the suspension plus the monthlybenefit based on Pension Credit you earnedwhen you returned to work.

The Trustees will recover the amount of anypension payments which you received afteryou returned to work. This recovery will bedone by withholding future pensionpayments until the full amount is recovered.If you have reached Normal RetirementAge, the amount withheld will be limited to100% of the first payment after your pensionstarts and 25% of subsequent payments.The Trustees can also recover overpaymentsfrom you by any other lawful means.


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APPEALING THE DENIAL OF A CLAIM


29

If your application for benefits or otherwritten claim under the Plan has beendenied, in whole or in part, you will benotified in writing of the denial. Thiswritten notice will explain the reasons forthe denial and outline what you can do torequest reconsideration by the Trustees andto justify the claim. This notice will beprovided to you within 90 days (45 days fora disability claim) of the receipt of yourclaim by the Plan. There may be specialcircumstances which will make additionaltime necessary in which case the Trusteesmay take up to an additional 90 days (30days for a disability claim). The Trusteeswill notify you of the delay and the reasonsfor it.

If your claim is denied, you can request thatthe Trustees reconsider the decision denyingyour claim. The request must be in writingand state in a clear and concise way thereason for your disagreement with theTrustees decision, and it must include anysubstantiating evidence you may have. Thiswritten request must be filed with the Fund

Office within 60 days of the date of yourreceipt of the denial of your claim. If you

do not meet this 60-day filing requirement,your claim can be denied again. You willthen be prevented from asking the Trusteesto reconsider their decision on the basis ofevidence the Trustees had before making theoriginal decision.

The Trustees, or a committee appointed bythem, will consider your written claim if it isfiled on time, and make a decision at thenext regularly scheduled meeting of theTrustees. However, if your claim isreceived by the Fund Office less than 30days before the next regularly scheduledTrustees meeting, your case will bereviewed at the second regularly scheduledmeeting after the Trustees receive yourappeal. If the Trustees need more time toreview your appeal because of specialcircumstances, you will be notified of thedelay, and the Trustees will make thedecision as soon as possible but not laterthan the third regularly scheduled meetingafter receiving your appeal. You will benotified of the appeal decision in writingpromptly after the meeting in which your

appeal was heard.


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GENERAL INFORMATION


30

Qualified Domestic Relations Orders

The Plan is required to pay benefits inaccordance with the provisions of aQualified Domestic Relations Order(QDRO). A domestic relations order is acourt order which is issued pursuant to astate domestic relations law and whichrelates to marital property rights and spousalor child support. In order to be considered aQualified Domestic Relations Order, theorder must contain specific provisions withrespect to benefits under the Plan.

When the Plan receives a proposed QDRO,

it follows specific procedures as required byfederal law in determining whether the orderis qualified. The Plan also has a modelQDRO that is available to Participants andtheir attorneys, along with a copy of thePlans procedures with respect to QDROs.This information is available free of charge.If you have any questions regardingQDROs, you should contact the FundOffice.

Rollovers to Another Plan

The Plan allows you to direct that all or partof an Eligible Rollover Distribution be paidto another p lan . Typica l ly, thesedistributions are lump sums; they are notmonthly pension benefits. When you retire,you will receive complete information aboutrollovers. You should contact the FundOffice with any questions.

Overpayments

If for any reason payment of benefits to anindividual under this Plan exceeds theamount of benefits that should have beenprovided, the Trustees are entitled to takeany and all actions necessary andappropriate to recover the overpayment.This may include, but it is not limited to,

withholding of future benefits or requiringthe individual to repay the overpaid benefits.

Incompetence or Incapacity of aPensioner

If the Trustees determine that a Pensioner isnot able to care for himself or herselfbecause of a physical or mental impairment,the Trustees may make payments due to thePensioner for the Pensioners support andmaintenance. The Trustees will do thisunless, before applying the payment tosupport the Pensioner, they have received a

claim from the Pensioners legally appointedguardian or conservator. If your Spouse isreceiving a pension and is incapacitated,please contact the Fund Office for a formverifying incapacity.

Non-Assignment of Benefits

You cannot sell, transfer or assign any partof the benefits payable to you or any interestyou have in the Plan before you receive

those benefits or that interest. The Trusteeswill not recognize or comply with any suchsale, transfer or assignment. Also, the Planwill attempt to protect your Plan benefitsfrom creditors or other claimants who try totake them by court order, garnishment,execution or other legal process to the fullextent available under the law.

There are some exceptions to this rule:

The Plan must comply with a lienfrom the Internal Revenue Service

The Plan must comply with theprovisions of a Qualified DomesticRelations Order (QDRO).


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31

The Plan will allow you to have yourpremium for Retiree Health &Welfare Plan coverage to beautomatically deducted from yourmonthly pension check.

If the Plan receives competing claims toPlan benefits and cannot determine theproper person or persons to pay, the Planwill file a lawsuit in an appropriate court andask the court to decide which person orpersons should receive the benefits.

Information Required fromParticipants

All Participants, Pensioners, Spouses,beneficiaries and other claimants to benefitsmust supply all information and proofrequired by the Trustees to administer thePlan. This includes information about you,your Spouse and beneficiaries, includingchanges in marital status and mailingaddress. A failure to promptly provideaccurate and complete information mayresult in the denial, suspension ortermination of benefits. If an individualprovides false information to support a claimfor benefits, the Trustees may recover theamount of benefits paid in reliance on thefalse information to the extent it exceedswhat should have been paid.


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SOME QUESTIONS AND ANSWERS ABOUT THE PLAN


32

How does the Plan identify me?

The Fund Office uses the Social SecurityNumber or the Plan identification number

( O E I D No. ) of the Participant asidentification for all transactions. TheUnion Register Number is also used as across reference. The employees SocialSecurity Number or OE ID No. should beincluded on any correspondence yousubmit to the Fund Office. A missingSocial Security Number or OE ID No.can significantly delay transactions.

Who administers the Plan?

The Plan is administered by a Board ofTrustees made up equally of representativesof the Employer Associations and I.U.O.E.,Local 12. The actions of the Board inadministering the Plan are governed by aTrust Agreement which provides that allmoney paid into the Pension Trust orearned by the Pension Trust can be usedonly for the purpose of providing benefitsfor Plan participants and beneficiaries and

for reasonable expenses in administeringthe Plan.

Who is covered by the Plan?

The Plan covers employees who workfor employers who have signed either acollective bargaining agreement withI.U.O.E., Local 12, or a ParticipationAgreement approved by the Board ofTrustees . The Plan cannot acceptvoluntary contributions or contributionson behalf of a self-employed individual(sole proprietor or partner).

Do Social Security benefits affect thepensions provided under this Plan?

No. The benefits under this Plan are inaddition to benefits paid under SocialSecurity.

May pension benefits be assigned?

No. With limited exceptions, assignment isprohibited by federal law. The Plan must

comply with a lien from the InternalRevenue Service. In addition, the Plan isrequired by federal law to pay benefits inaccordance with a Qualified DomesticRelations Order (QDRO). You may alsoelect to have your premium for RetireeHealth and Welfare Plan coverageautomatically deducted from your monthlypension check.

Do I have to pay dues to get my

pension?

No. Payment of Union dues is for Unionmembership and does not affect yourentitlement to a pension under this Plan.

How much do I pay for my pension?

You do not pay for your pension benefits.Benefits are based solely on the employercontributions made to the Trust inaccordance with the collective bargainingagreements with I.U.O.E., Local 12, or anapproved Participation Agreement.

Can I withdraw pensioncontributions?

No. Withdrawals are not permitted. ThisPlan is not an IRA-type of plan where fundsmay be accumulated and withdrawn.Benefits are paid only in the mannerprovided by the Plan rules. Contributionsfor individual who are not eligible forbenefits are retained by the Plan to fundbenefits for eligible participants and toadminister the Plan.


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33

Are Plan benefits taxable?

Generally, yes. You should contact theInternal Revenue Service or your tax advisorregarding your individual situation. TheFund Office cannot provide tax advice.

Income tax may be withheld from yourpension check if you wish and, in somecases, the plan is required to withholdfederal and state income tax.

Can my check be directly deposited tomy bank account?

Yes, but the Fund Office needs your writtenpermission to do so. Call the PensionDepartment at the Fund Office to requesta Direct Deposit form. This form isalso available on the Plans website,www.oefi.org.


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CHECKLIST: THINGS FOR YOU TO DO


34

If you move

Keep the Fund Office informed of anychange in your mailing address to ensure

you receive our communications. Allmailings from the Fund Office will be madeto the last known address on record at theFund Office. Our mailing address, phonenumbers and website address are on page 35and 36.

A change of address will not be accepted bythe Fund Office unless the change is inwriting and signed by the Participant. Achange of address cannot be accepted by

telephone.

For your protection, pension checks cannotbe forwarded. They will be returned to theFund Office if your address is not up to date.Once three pension checks have beenreturned, your pension will be suspendeduntil your address is updated with the FundOffice. This is true even if you are havingyour checks directly deposited into yourbank account.

The Fund Office and the Union Office aretwo separate entities. Yo u mu st no ti fyboth offices separately of any change ofaddress.

If you are thinking about retirement

Contact the Fund Office by phone or in

writing to get an application package. If youare married, you will automatically receivean estimate of the amount of your benefitsunder the various optional forms of paymentalong with the application package. If youare not married, there is only one form ofpayment available to you, the Single LifeAnnuity.

You will need to provide copies of certaindocuments. The Fund Office can tell youwhat you will need.

Your pension cannot be effective prior tothe date your completed Application isreceived by the Fund Office. Therefore, weencourage you to contact the Fund Office atleast three months before the month youwant your pension to be effective.

If your marital status changes

If you are divorced, your former Spousemay be entitled to a portion of your pension.Under federal law, the Plan must complywith any order issued by the state court thatis a Qualified Domestic Relations Order(QDRO). If you or your attorney have anyquestions or would like assistance before theQDRO is finalized please contact the FundOffice.

Keep your records

The accuracy and completeness of the

records of your work is an important factorin determining eligibility, for and theamount of, your pension. You can protectyourself by checking the work records youreceive such as payroll check stubs until youare sure you have been credited with thatwork.

You will receive a statement from the FundOffice each year showing the amount ofhours reported by each employer for whom

you worked. Review this annual statementcarefully and report any errors to the FundOffice immediately.

The Fund Office and the Union Office aretwo separate entities. Yo u mu st no ti fyboth offices separately of any change ofaddress.


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35

Designate a beneficiary

For the protection of the person or personsyou want to receive the Plans deathbenefits, be sure that you have completed aDesignation of Beneficiary Form and filed itwith the Fund Office. You may change your

beneficiary at any time by filing a new form.The Designation of Beneficiary Form isavailable from the Fund Office, the UnionOffice or the Plans website, www.oefi.org .

Save this booklet

Put it in a safe place. If you lose your copy,you may receive another one from the FundOffice. This booklet is also available on thePlans website, www.oefi.org .

Additional questions? Ask the FundOffice or visit the Plans website

You should contact the Fund Office withany questions you have about the Plan andyour rights and benefits under it. You canalso check on your Pension Credits and get

an estimate of your monthly pension.You can also get information about the Planand download Pension Plan forms on thePlans website, www.oefi.org .


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FACTS ABOUT YOUR PLAN


36

Name, type of administration, andtype of Plan

The name of the Plan is the Operating

Engineers Pension Plan. I t is acollectively bargained, jointly-trusteed,labor-management trust. It is a definedbenefit pension plan.

Type of Plan

The Plan is an employee benefit pensionplan maintained for the purpose of providingpension benefits to participants in the Plan.

Plan Identification Numbers

The Employer Identification Number (EIN)issued by the Internal Revenue Service is95-6032478. The Plan Number is 001.

Agent for Service of Legal Process

The name and address of the agentdesignated for the service of legal process is:

Joseph R. Ehrbar

Operating Engineers Funds, Inc.100 E. Corson StreetPasadena, CA 91103(626) 356-1000

Legal process may also be served on a PlanTrustee.

Plan Administrator

The Board of Trustees is the PlanAdministrator. This means that the Board of

Trustees is responsible for seeing thatinformation regarding the Plan is reported togovernment agencies and disclosed to Planparticipants and beneficiaries in accordancewith ERISA.

The Board of Trustees has designated thefollowing administrative organization toperform the routine administrative functionsand day-to-day business of the Plan:

Operating Engineers Funds, Inc.100 E. Corson StreetPasadena, CA 91103(626) 356-1000

Board of Trustees

The Board of Trustees consists of an equalnumber of employer and unionrepresentatives selected by the employersand union in accordance with the provisionsof the Trust Agreement. If you wish tocontact the Board of Trustees, you shoulduse the following address and phonenumber:

Operating Engineers Pension Plan100 E. Corson StreetPasadena, CA 91103(626) 356-1000


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Names, Titles a nd Addresses of the Trustees.

As of the printing of this booklet, the Trustees of the Fund are:

Employer Trustees Union Trustees

Michael Crawford

Mickey J. Adams, President

Sukut Construction

I.U.O.E., Local 12

4010 W. Chandler

150 E. Corson Street

Santa Ana, CA 92704-5274

Pasadena, CA 91103

Walt Elliot

Dan Billy, District Representative

NCA

I.U.O.E., Local 12

2881 S. Valley View Blvd, #1

150 E. Corson Street

Las Vegas, NV 89102-0145

Pasadena, CA 91103

Mike Prlich Larry DavisonMike Prlich & Sons, Inc. Recording-Corresponding Secretary

5103 Elton Street I.U.O.E., Local 12Baldwin Park, CA 91706 150 E. Corson Street

Pasadena, CA 91103

Mike RoddySCCA

David Garbarino, Treasurer

6055 Washington Blvd., #200

I.U.O.E., Local 12

Los Angeles, CA 90040

150 E. Corson StreetPasadena, CA 91103

Dan E. Hawn, Financial Secretary

I.U.O.E., Local 12150 E. Corson StreetPasadena, CA 91103

Ronald J. Sikorski, Vice President

I.U.O.E., Local 12150 E. Corson StreetPasadena, CA 91103

William C. Waggoner, Business ManagerI.U.O.E., Local 12150 E. Corson StreetPasadena, CA 91103

Jim RyanAGC San Diego6212 Ferris SquareSan Diego, CA 92121


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Collective Bargaining Agreements

The Plan was established, and is maintained,through collective bargaining agreementsbetween the International Union ofOperating Engineers, I.U.O.E., Local 12,and participating employers. Contributionsto this Plan are made on behalf of eachparticipant in accordance with thesecollective bargaining agreements.

The Fund Office will provide you, uponwritten request, a copy of any of thecollective bargaining agreements. Thecollective bargaining agreements are alsoavailable for examination at the FundOffice.

Source of Contributions

The benefits described in this booklet areprovided through employer contributions tothis Plan. The amount of employercontributions is determined by theprovisions of the collective bargainingagreements which require contributions tothis Plan at a fixed rate per hour worked.The Fund Office will provide you, uponwritten request, information as to whether aparticular employer is contributing to thisPlan on behalf of participants working underthe collective bargaining agreement.

Trust Fund

The assets and reserves of the Plan are heldin trust by the Board of Trustees.

Plan Amendment and Termination

The Pension Plan may be amended at anytime by the Trustees, consistent with theprovisions of the Trust Agreement.However, no amendment may decrease theaccrued benefit of any Participant except asnecessary to maintain compliance with theprovisions of, or to meet the requirementsof, federal law.

Plan Termination Insurance

Your pension benefits under thismultiemployer plan are insured by thePension Benefit Guaranty Corporation(PBGC), a federal insurance agency. Amultiemployer plan is a collectivelybargained arrangement involving two ormore unrelated employers, usually in acommon industry.

Under a multiemployer plan, the PBGCprovides financial assistance through loansto plans that are insolvent. A multiemployerplan is considered insolvent if the plan isunable to pay benefits (at least equal to thePBGCs guaranteed benefit limit) when due.

The maximum benefit that the PBGCguarantees is set by law. Under themultiemployer program, the PBGCguarantee equals a participants years ofservice multiplied by (1) 100% of the first$11 of the monthly benefit accrual rate and(2) 75% of the next $33. The PBGCsmaximum guarantee limit is $35.75 permonth times a participants years of service.For example, the maximum annualguarantee for a retiree with 30 years ofservice would be $12,870.

The PBGC guarantee generally covers: (1)normal and early retirement benefits; (2)disability benefits if you become disabledbefore the plan becomes insolvent; and (3)certain benefits for your survivors.

The PBGC guarantee generally does not

cover: (1) benefits greater than themaximum guaranteed amount set by law; (2)benefit increases and new benefits based onplan provisions that have been in place forfewer than 5 years at the earlier of: (i) thedate the plan terminates, or (ii) the time theplan becomes insolvent; (3) benefits that arenot vested because you have not workedlong enough; (4) benefits for which youhave not met all of the requirements at the


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time the plan becomes insolvent; and (5)non-pension benefits, such as healthinsurance, life insurance, certain deathbenefits, vacation pay and severance pay.

For more information about the PBGC andthe benefit it guarantees, ask your planadministrator or contact the PBGCsTechnical Assistance Division, 1200 KStreet, N.W., Suite 930, Washington, D. C.20005-4026 or call 202-326-4000 (not atoll-free number). TTY/TDD users may callthe federal relay service toll-free at 1-800-877-8339 and ask to be connected to 202-326-4000. Additional information about thePBGCs pension insurance program isavailable through the PBGCs website onthe Internet at http://www.pbgc.gov.

Source of Financing of the Plan andIdentity of any Organization throughwhich Benefits are Provided

All financing of the Plan is made by contributions to the Pension Trust which aremade by individual employers under theprovisions of the collective bargainingagreements. No outside organization isinvolved in providing Plan benefits.Benefits are provided from the Trust assetswhich are accumulated under the provisionsof the collective bargaining agreements andthe Trust Agreement and held in a trust fundfor the purpose of providing benefits anddefraying reasonable administrativeexpense. Amalgamated Bank has beendesignated as the Corporate Co-Trustee tothe Plan. As of the printing of this booklet,the investment managers are:

Alcentra Artisan PartnersCrescent Direct Lending Crescent MezzanineHuber Capital Management Loomis SaylesMc Morgan & Co North Sky CapitalPanAgora Asset Management PIMCORice, Hall, James Siguler Guff & CompanySystematic Financial Management TCW Capital TrustULLICO Walter Scott Global Investment Management

Washington Capital Management Wellington ManagementWells Capital Management

Fiscal Plan Year

The fiscal records of the Plan are keptseparately for each fiscal Plan Year. Thefiscal Plan Year begins on July 1 and endson June 30.

The Plans Requirements with Respect

to Eligibility for Participation andBenefits

The eligibility requirements are specified onpages 13 through 17 of this booklet.Participation in the Plan starts when theemployee is first reported to the Trust as anemployee and contributions are made to theTrust on his behalf. There is no delay in

participation for either age or length ofservice.

Description of Provisions for Non-Forfeitable Pension Benefits

A Participant achieves vested status asdescribed on page 9.

Circumstances Resulting inDisqualification, Ineligibility orDenial or Loss of Benefits

Loss of eligibility is described on pages 27through 28 of this booklet.


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Review Procedure

If you r cla im is denied, in whole or in part,you will receive a written explanation givingdetailed reasons for the denial, specificreference to the Plan provisions on whichthe denial is based, a description of anyadditional material or information necessary

for you to perfect the claim and anexplanation of why such information ormaterial is necessary, as well as anexplanation of the Plans claim appealsprocedure. A description of the appealsprocedure appears on page 29 of thisbooklet.


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Statement of ERISA Rights

As a participant in the Operating EngineersPension Plan, you are entitled to certainrights and protections under the EmployeeRetirement Income Security Act of 1974(ERISA). ERISA provides that all planparticipants shall be entitled to:

Receive Information About Your Planand Benefits

Examine, without charge, at the PlanAdministrators Office (the Fund Office)and at other specific locations, such as worksites and union halls, all documentsgoverning the plan, including insurancecontracts, collective bargaining agreementsand a copy of the latest annual report (Form5500 Series) filed by the plan with the U.S.Department of Labor and available at theEmployee Benefits Security Administration.

Obtain, upon written request to the PlanAdministrator, copies of documentsgoverning the operation of the plan,including insurance contracts, collectivebargaining agreements and a copy of thelatest annual report (Form 5500 Series). TheAdministrator may make a reasonablecharge for the copies.

Receive the Annual Funding Notice whichprovides information regarding the financialhealth of the Plan, including descriptions ofthe Trustees funding and investmentpolicies and the allocation of the Plans

investments as of the close of the prior PlanYear. Effective January 1, 2009, thisAnnual Funding Notice replaced therequirement of providing you with aSummary Annual Report.

Obtain a statement telling you whether youhave a right to receive a

Documents

2014 Pension SPD Bookmarked