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Pension Plan

 
Definitions

Unless the context or subject matter otherwise requires, the following definitions shall govern in the Plan.

"Actuarial Equivalent" means two benefits of equal Actuarial Present Value based on the actuarial factors or assumptions specified in the provision in which that phrase is used, or if not otherwise specified, based on the assumptions described in Section 1.02.

Unless otherwise specified in the Plan, "Actuarial Present Value" means:

  1. For determinations as of any Pension Effective Date that is on or after June 1, 2000, a benefit determined using the "Applicable Mortality Table" and the "Applicable Interest Rate". For this purpose:
    1. The "Applicable Mortality Table" for a calendar year is the table prescribed for use in that year in Regulations under Code Section 417(e), and which until modified or superseded, is the table set forth in Revenue Ruling 95-6; and
    2. The "Applicable Interest Rate" is, for a calendar year, the annual rate of interest on 30-year Treasury securities as specified by the commissioner of Internal Revenue for the month of November (as published in December) immediately preceding the calendar year that contains the Pension Effective Date.

    For determinations as of any Pension Effective Date that is on or after January 1, 2003, any reference in the Plan to the "Applicable Mortality Table" or the mortality table set forth in Revenue Ruling 95-6 shall be construed as a reference to the mortality table prescribed in Revenue Ruling 2001-62.

    Notwithstanding the above, for Pension Effective Dates on or after January 1, 2008, any reference in the Plan to the “Applicable Mortality Table” or the mortality table set forth in Revenue Ruling 95-6 or 2001-62 shall be construed as a reference to the mortality table specified for the plan year under subparagraph (A) of Code section 430(h)(3) (without regard to subparagraph (C) or (D) of such section).

    Notwithstanding the above, for Pension Effective Dates on or after January 1, 2008, the “Applicable Interest Rate” means the adjusted first, second, and third segment rates applied under the rules similar to the rules of Code section 430(h)(2)(C) for the month before the date of the distribution or such other time as the Secretary may by regulations prescribe. For this purpose, the segment rates shall be subject to the conditions set forth in Code section 417(e)(3)(D).
  2. For Pension Effective Dates prior to June 1, 2000, a benefit determined using the interest rate prescribed by the Pension Benefit Guaranty Corporation for valuing annuities under single-employer plans that terminate after November 30, 1980, without Notice of Sufficiency during the first day of the calendar year in which the date as of which the benefit is valued occurs. The mortality assumption shall be as follows:
    1. For payment where the Participant is not disabled per Section 3.08, the 1971 Group Annuity Mortality Table, weighted as follows:
      1. For a Participant's benefit, 100% male and 0% female;
      2. For the benefit of a Participant's spouse or former spouse, 0% male and 100% female; and
      3. In any other case, 50% male and 50% female.
    2. For payment where the Participant is disabled per Section 3.08, the PBGC Mortality Tables for Disabled Lives Eligible for Social Security Disability benefits weighted according to b.(1) above.

Alternative Schedule” is a schedule of revised benefit structures and revised contribution structures, pursuant to the Rehabilitation Plan, adopted by the bargaining parties (i.e., a Local Union and Contributing Employee) applicable to their Employees, effective as provided under the applicable collective bargaining agreement.

"Apprentice Trust Fund" means any apprentice training fund established under the terms of a Collective Bargaining Agreement relating to the training or qualifications of employees employed in the Resilient Floor Covering Industry, and jointly administered by a Signatory Association and a Union or a labor organization which is a successor to a Union.

"Bargaining Unit" means a group of Employees for which the Contribution Rate to the Fund is the same, and for which the Contribution Date, as fixed by the Board of Trustees is the same in accordance with Section 1.09. For the purpose of calculating a pension benefit, the Bargaining Unit applicable to a Participant or Pensioner is the one in which he or she first worked or worked the greatest number of hours during the period when he or she accumulated the most recent five Years of Credited Service, whichever produces the higher pension benefit.

"Calendar Year" means the period from January 1 to the next December 31. For the purposes of ERISA regulations, the Calendar Year shall serve as the vesting computation period and benefit accrual computation period, and after the initial period of employment or of reemployment following a Break in Service the computation period for eligibility to participate in the Plan.

"Collective Bargaining Agreement" means any written agreement requiring Contributions to this Fund on behalf of employees employed in the Resilient Floor Covering Industry, which is entered into by and between a Signatory Association or individual Employer and any Union or any labor organization which is a successor to a Union, including any extensions or renewals thereof.

"Contribution" or "Employer Contribution" means a payment made or to be made to the Fund by a Contributing Employer under the provisions of a Collective Bargaining Agreement, or in the case of a Non-Bargaining Employee (as defined in Section 1.11.b) under the provisions of a Subscription Agreement, or with regard to a Union or an apprentice Trust Fund, payment to the Fund under such conditions and manner as specified by the Board of Trustees.

From September 1, 2005 through August 31, 2006, $0.70 per hour for each Employer Contribution made on behalf a bargained employee, and 13.47% of the Employer Contributions for all other participants will be used to reduce the Plan’s funding deficit, as determined by the Plan’s Actuary, and will not be used in determining a participant’s Regular Pension under the Plan.

From September 1, 2006 through August 31, 2007, $1.40 per hour for each Employer Contribution made on behalf a bargained employee, and 27% of the Employer Contribution for all other participants will be used to reduce the Plan’s funding deficit, as determined by the Plan’s Actuary, and will not be used in determining a participant’s Regular Pension under the Plan.

Beginning September 1, 2007, $2.10 per hour for each Employer Contribution made on behalf a bargained employee, and 40% of the Employer Contributions for all other participants will be used to reduce the Plan’s funding deficit, as determined by the Plan’s Actuary, and will not be used in determined a participant’s Regular Pension under the Plan.

"Contributory Hours" means hours of work in Covered Employment for which contributions are made or are required to be made to the Fund, or hours credited pursuant to Section 6.05 for certain absences from Covered Employment.

"Contribution Date" means the date that a Collective Bargaining Agreement first required contributions to this Pension Fund as determined below:

For Employees Employed in the
Jurisdiction of:
  Contribution Date:
Local Union 1290   November 1, 1956
Local Union 1235   January 1, 1957
January 1, 1957   January 1, 1957
Local Union 1237 - Stockton Area
- Modesto Area
September 13, 1964
July 1, 1968
Local Union 1238   July 1, 1963
Local Union 1238 - Olympia Area
- Grays Harbor Area
- Whatcom County Area
- Skagit & Island Counties
August 1, 1964
April 1, 1965
October 13, 1965
August 18, 1965
Local Union 1288   January 1, 1964
Local Union 1711 (which is now merged into Local Union 1399) February 1, 1964
Local Union 1236   April 1, 1964
Local Union 1236 - Grants Pass - Medford Area
- Longview - Kelso Area
September 1, 1965
October 1, 1966
Local Union 419   January 1, 1967
Local Union 419 - Pueblo Area January 1, 1972
  1. The Contribution Date to be applied to each Employee shall be the date in Column (2) applicable to the Local Union shown in Column (1) in whose geographical jurisdiction the Employee was employed when the first Contribution to the Pension Fund was made on his or her behalf, unless the circumstances described in Subsection b. are applicable.
  2. If, in accordance with Section 12.04, Contributions are first paid for a group of Employees under a Collective Bargaining Agreement covering a geographical area which was not included in the Plan on the applicable date in Column (2) above, then the Contribution Date for such Employees shall be the first date any Contributing Employer in such area was obligated by a Collective Bargaining Agreement to make a Contribution to this Pension Fund.

"Contribution Date" for the Contributing Employers and their Non-Bargaining Employees covered under Article 5 means the first date for which an Employer is obligated by a Participation Agreement to contribute to the Pension Trust. The "Contribution Date" to be applied to each such Contributing Employer and Non-Bargaining Employee shall be the date applicable to the first Employer who makes contributions on behalf of such Contributing Employer or Non-Bargaining Employee.

"Covered Employment" means employment as an Employee as defined in Section 1.11.

"Continuous Non-Covered Employment" means employment for a Contributing Employer after January 1, 1976 in a job not covered by this Plan which is continuous with a Participant's Covered Employment with the same Contributing Employer. A period of Non-Covered Employment will be considered to be continuous with Covered Employment only if there is no quit, discharge, or other termination of employment between the periods of Covered and Non-Covered Employment.

Default Schedule” is a schedule of revised benefit structures and revised contribution structures, pursuant to the Rehabilitation Plan, either adopted by the bargaining parties (i.e., a Local Union and Contributing Employer) or imposed on the bargaining parties in the event of their failure to adopt an Alternative Schedule within 180 days following the expiration of a collective bargaining agreement in effect on the date that the Plan was certified to be in critical status, applicable to the Employees of a Local Union effective as of January 1, 2011.

"Employee" means an employee who performs one or more hours of work per day of employment in the Resilient Floor Covering Industry which is covered by a Collective Bargaining Agreement. The term "Employee" shall also include the following:

  1. Regular paid employees of Local Unions or Apprentice Trust Funds and the Board of Trustees on whose behalf Contributions are made to the Pension Fund under such conditions and manner as are specified by the Board of Trustees, except those employees of Local Unions and the Board of Trustees who are included in a unit of employees covered by a collective bargaining agreement, if retirement benefits were the subject of good faith bargaining between the parties thereto.

    The term "Employee" does not include employees of a labor organization which is a successor to a Union or which is a parent organization to a Union, unless (1) the employee is an Alumnus as defined in section c. below, and (2) the labor organization signs a written participation agreement obligating it to pay contributions for all of its employees who are eligible to participate as Alumni.
  2. Non-Bargained Employees of an incorporated Employer, which Employer is currently signatory to a Collective Bargaining Agreement requiring Contributions to this Pension Fund, and any Contributing Employer and his or her Non-Bargained Employees under the following conditions, provided inclusion of such individuals is permitted by existing law and regulations:
    1. The Employer makes Contributions to this Pension Fund for at least 1,500 hours of actual work in Covered Employment on behalf of his or her Bargaining Unit Employee(s) during each Calendar Year in which the Employer participates;
    2. The Employer contributes on behalf of all his or her eligible Non-Bargained Employees; and
    3. The Employer signs a written participation agreement.
  3. Alumni of an Employer currently signatory to a Collective Bargaining Agreement requiring Contributions to the Pension Fund, provided:
    1. The Employer makes Contributions to the Pension Fund for at least 1,500 hours of actual work in Covered Employment on behalf of his or her Bargaining Unit Employees during each Calendar Year in which the Alumni participate;
    2. The Employer contributes on behalf of all his or her employees who are eligible to participate as Alumni; and
    3. The Employer signs a written participation agreement.

    For purposes of this Subsection c., Alumni are Non-Bargained Employees who receive the same benefits under this Plan as Bargaining Unit Employees, except with respect to the vesting requirements. To be an Alumnus, an Employee must have earned at least one Contributory Benefit Unit (or one Contributory Year of Credited Service After January 1, 1997) under this Plan while a Bargaining Unit Employee and at least one-half of his or her total Hours of Service in the current Calendar Year or a prior Calendar Year must be worked as a Bargaining Unit Employee.

The term "Employee" does not include an individual who owns 10% or more of all shares of an incorporated Employer, unless (1) the individual participates as a Non-Bargained Employee in compliance with Subsection b. above, or (2) the individual participates as an Alumnus in compliance with Subsection c. above, or (3) the individual performs work covered by the applicable Collective Bargaining Agreement and the following conditions are met: (a) the Collective Bargaining Agreement specifically states that such shareholder-employees are members of the Bargaining Unit and obligates the Employer to pay Contributions to the Pension Fund on their behalf at the same hourly rate as for its other Bargaining Unit Employees, (b) the Employer makes Contributions to the Pension Fund for at least 1,500 hours of actual work in Covered Employment on behalf of Bargaining Unit Employees who own no shares of the Employer during each Calendar Year in which the shareholder-employee participates.

The term "Employee" does not include any person who is engaged in the Resilient Floor Covering Industry as a sole proprietor or partner.

The total number of Non-Bargained Employees participating pursuant to this Section may not exceed the maximum number permitted under Treasury Regulation Section 1.410(b)-6(d)(2)(ii) or any successor rule. To comply with this limitation, the Trustees may decline to accept Contributions tendered for Non-Bargained Employees and/or may retroactively refund such Contributions. In accordance with applicable Department of Labor regulations, any such refund shall not include interest.

"Employer" or "Contributing Employer" means any employer who is required by a Collective Bargaining Agreement or a Participation Agreement to make Contributions to the Pension Fund or who, in fact, makes one or more Contributions to the Pension Fund. The terms "Employer" or "Contributing Employer" shall also include the Board of Trustees or any Local Union or Apprentice Trust Fund which makes Contributions to the Pension Fund on behalf of its employees under such conditions and manner as are specified by the Board of Trustees.

The terms “Employer” or “Contributing Employer” shall not include a labor organization which is a successor to a Union or which is a parent organization to a Union, except as specifically authorized by the Board of Trustees pursuant to Section 1.11.a.

For purposes of identifying Highly Compensated Employees and applying the rules on Participation vesting and statutory limits on benefits under the Fund but not for determining Covered Employment the term “Contributing Employer” includes all members of an affiliated group with the Employer within the meaning of Internal Revenue Code Section 414(m) and all other business aggregated with the Employer under Internal Revenue Code Section 414(o).

"Fund Office" means the principal headquarters and Administrative Office of the Pension Fund.

"Highly Compensated Employee" means each highly compensated active employee and highly compensated former employee of an Employer. Whether an individual is a highly compensated employee is determined separately with respect to each Employer, based solely on that individual's compensation from or status with respect to that Employer.

A highly compensated active employee is an employee of the Employer who performs services for the Employer during the determination year and who:

  1. During the look-back year received compensation from the Employer in excess of $80,000 (as adjusted under Section 414(q) of the Internal Revenue Code) and was one of the top 20 percent of the employees of the employer during the look-back year when ranked on the basis of the compensation during that year.
  2. Is a 5% owner at any time during the look-back year or the determination year.
  3. The "determination year" is the Plan Year for which the test is being applied, and the look-back year is the 12-month period immediately preceding that Plan Year.

A highly compensated former employee is an employee who was a Highly Compensated Employee when he or she separated from service or was a Highly Compensated Employee at any time after attaining age 55.

The determination of who is a Highly Compensated Employee, will be made in accordance with Section 414(q) of the Internal Revenue Code and the regulations thereunder.

For this purpose, annual compensation means compensation within the meaning of Section 415(c)(3) of the Code.

"Hours of Service" means each hour for which an Employee is paid or entitled to payment by a Contributing Employer after the Contribution Date, directly or indirectly, but excluding any time compensated under a workers' compensation law or an unemployment compensation law or a plan pursuant to a mandatory disability benefits law, and excluding any hours of non-work time in excess of 501 hours in any continuous period. "Hours of Service" shall also include hours for which back pay, irrespective of mitigation of damages, is awarded or agreed to by a Contributing Employer, to the extent that such award or agreement is intended to compensate an Employee for periods during which the Employee would have been engaged in the performance of duties for the Employer. Two periods of paid non-work time shall be deemed continuous if they are compensated for the same reason and are not separated by at least 90 days. Furthermore, whenever it is necessary to compute Hours of Service in situations where no work is performed or where pay is computed on other than an hourly basis, or to determine the computation periods to which Hours of Service will be credited, the Board will establish a rule specifically permitted under applicable lawful regulations issued by the Department of Labor under ERISA, or some other rule no less favorable to the Participant.

"Non-Bargained Employee" means a Participant whose participation is not covered by a Collective Bargaining Agreement.

"Normal Retirement Age" means age 65 or, if later, the age of the Participant on the fifth anniversary of his or her Participation, provided such Participant has performed at least one Hour of Service on or after June 1, 1988. For Participants who have not performed at least one Hour of Service on or after June 1, 1988, "Normal Retirement Age" means age 65, or if later, the age of the Participant on the tenth anniversary of his or her Participation.

Participation before a Permanent Break in Service and Participation before a Temporary Break in Service in the case of a former Participant who has not returned to Covered Employment and reestablished Participation in accordance with Section 2.04 shall not be counted.

"Participant" means a Pensioner, Beneficiary or an Employee who meets the requirements for Participation in the Plan as set forth in Article 2., or a former Employee who has attained vested status under this Plan. A Beneficiary is a person (other than an Employee or a Pensioner) who is receiving benefits under this Plan because of his or her designation for such benefits by a Pensioner or Participant, or because of his or her relationship to a Pensioner or Participant.

"Pension Effective Date" for a Participant means the first day of the first calendar month starting after the Participant has fulfilled all of the conditions for entitlement to benefits and after the later of:

a. The first day of the month after submission by the Participant of a completed application for benefits, or

b. 30 days after the Plan advises the Participant of the available benefit payment options, unless

  1. The benefit is being paid as a Spousal Pension at or after the Participant's Normal Retirement Age;
  2. The benefit is being paid out automatically as a lump sum under Section 10.09; or
  3. The Participant and Spouse (if any) consent in writing to the commencement of payments before the end of that 30-day period.

The Pension Effective Date will not be later than the Participant's Required Beginning Date.

The Pension Effective Date for a Beneficiary or alternate payee designated under a Qualified Domestic Relations Order will be determined under this Section, except that references to the Spousal Pension and spousal consent do not apply.

A Participant who retires before his or her Normal Retirement Age and then earns additional benefit accruals under the Plan through reemployment will have a separate Pension Effective Date determined under this Section with respect to those additional accruals including the election of any benefit payment options available under the Plan, except that a Pension Effective Date that is on or after Normal Retirement Age shall apply for any additional benefits accrued through reemployment after that date.

A "Pensioner" means a former Employee to whom a pension is being paid under this Plan or to whom a pension would be paid but for the time required for administrative processing. A Pensioner who has returned to Covered Employment and is accruing benefits on the same basis as other Employees as of the effective date of a benefit increase will not be considered a Pensioner for purposes of that benefit increase.

"Pension Fund" or "Fund" means the Trust created and established by the Trust Agreement.

"Pension Plan" or "Plan" means this Pension Plan and any modification, amendment, extension or renewal thereof.

"Plan Year" means the Trust Fund's fiscal year, as follows:

  1. Prior to June 1, 2001, the twelve-month period from June 1 of any year through May 31 of the following year; and
  2. The seven-month period from June 1, 2001 through December 31, 2001; and
  3. Beginning January 1, 2002, the twelve-month period from January 1 of any year through December 31 of the same year.

"Rehabilitation Plan" is a plan that includes revised benefit structures and revised contribution structures in the form of Alternative Schedules and a Default Schedule, based on reasonably anticipated experience and reasonable actuarial assumptions, to enable the Plan to cease to be in critical status by the end of the rehabilitation period, in accordance with the Pension Protection Act of 2006.

"Required Beginning Date" means:

  1. For a Participant who is not a 5-percent (5%) owner and who attains age 70 1/2 on or after January 1, 1999, the Required Beginning Date will be the April 1 following the Calendar Year in which the Participant attains age 70 1/2 or, if later, the Calendar Year in which the Participant stops working in Covered Employment, whichever the Participant chooses.
  2. For a Participant who is a 5-percent (5%) owner (regardless of when such Participant attains age 70 1/2) or for a Participant who attains age 70 1/2 before January 1, 1999, the Required Beginning Date will be the April 1 following the Calendar Year in which the Participant attains age 70 1/2.
  3. As provided in Code Section 416(i)(1)(B)(i), a 5-percent (5%) owner means either (1) any person who owns (or is considered as owning under the Code) more than 5-percent (5%) of the outstanding stock of a contributing corporation or stock possessing more than 5-percent (5%) of the total combined voting power of all stock of the contributing corporation, or (2) any person who owns more than 5-percent (5%) of the capital or profits interest in a Contributing Employer which is not a corporation.

"Resilient Floor Covering Industry" means the industry which is involved in the manufacture, distribution and sales, whether retail or wholesale of carpet, linoleum, rubber and all other resilient floor coverings, and which involves the handling, measuring cutting and laying of new and old carpet, linoleum, rubber, cork carpet, oil cloth, mastipave, matting, linen and crash; rubber, mastic, linoleum vinyl, plastic, cork and asphalt tile, and all resilient floor covering, whether in sheets, squares, rolls or interlocked; drilling holes for sockets and pins; linoleum, rubber and cork carpet on walls and ceilings; fitting devices for the attachment of carpet, linoleum, rubber and all other resilient floor coverings, fitting of metal edgings, metal corners and caps used in the installation of linoleum, rubber and all resilient floor coverings on floors, walls, sinks, counters, tables and steps, the preparatory work for all the aforesaid work, including the application of vinyl tile, plastic tile, plastic laminates, metal tile, and liquid and/or plastic floor and wall covering and any other work covered by a Collective Bargaining Agreement which is of the type for which Contributions are made under such conditions and manner specified by the Board of Trustees.

"Signatory Association" means any employer organization, other than the individual Employers, which signs the Trust Agreement on behalf of its members or executes on behalf of such members a written acceptance of an agreement to be bound by the terms of the Trust Agreement.

"Spouse" means a person to whom a Participant is legally married.

"Trust Agreement" means the Master Trust Declaration establishing the Resilient Floor Covering Pension Fund and any modification, amendment, extension or renewal thereof.

"Trustee" means any natural person designated as such pursuant to the terms of the Trust Agreement. The term "Board of Trustees" or "Board" means the Board of Trustees established by the Trust Agreement

"Union" or "Local Union" means one of the following Local Unions of the International Union of Painters and Allied Trades; Carpet, Linoleum and Soft Tile Workers Local Union No. 12; Linoleum, Carpet, Resilient Floor Covering and Sign Workers Local No. 1237; Carpet, Linoleum and Soft Tile Layers' Union No. 1238; Linoleum, Carpet, Tile and Plastic Applications, Local No. 1236; Local No. 1399; Carpet, Linoleum and Resilient Tile Layers Local Union No. 419. Except as specifically provided herein, the term "Union" or "Local Union" does not include any labor organization which is a successor or parent to a Union named in this paragraph.

A "Vested Participant" means an Employee who has attained vested status in accordance with the provisions of Section 6.09.

References to specific section(s) of the Plan can be found in the Official Plan Document under Plan Documents on this website.

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