Pension Plan No. 5 y October 2012 1
Electrical Pension
Trustees Pension Plan
No. 5
As a participant in Pension Plan No. 5, you earn pension benefits
while you work for employers who contribute to the Electrical
Contractors’ Association and Local Union 134, I.B.E.W. Joint
Pension Trust of Chicago (“Pension Trust”). At retirement, you can
look forward to a lump sum distribution of your account balance or
other benefits from the Plan based on that account balance.
For More Information…
See the “Rules,
Regulations and
Administrative Information”
section of this Booklet for
important details about
Plan administration and
your rights as a Plan
participant. You also can
contact the Fund Office for
The amount you will receive when you retire is based on the total accumulated
contributions made to your account in the Plan as adjusted for investment earnings,
investment losses and Plan expenses. Your pension benefits may also be a source
of income to you if you become disabled, or to your survivors if you die.
more information. See
“Contact Information” on
page 26 for the Fund
Office’s phone number
Pension Plan No. 5 is a non-contributory, defined contribution money purchase
pension plan. That means: and web address.
• the Plan provides a specific contribution amount based on the collective
bargaining agreement you work under, and
• you cannot contribute toward your pension benefit. Contributing employers
make all contributions to the Pension Trust.
In This SPD See Page
About This SPD.................................................................................................... 3
Your Pension Plan Benefits at-a-Glance........................................................... 4
What Happens If…............................................................................................... 6
Participation......................................................................................................... 8
Plan Eligibility .................................................................................................. 8
Naming a Beneficiary...................................................................................... 8
Contributions to the Plan................................................................................. 9
Military Service................................................................................................ 9
Making Your Investment Selection.................................................................. 10
Investment Fund Choices ............................................................................. 11
Administrative Expenses............................................................................... 13
Your Account ..................................................................................................... 14
Your Account Statement ............................................................................... 14
Vesting .......................................................................................................... 14
When Your Account Is Paid .......................................................................... 14
How Your Account Is Paid ............................................................................ 15
Paying Taxes................................................................................................. 16
Survivor Protection........................................................................................ 16
Applying for Benefits ..................................................................................... 17
Electrical Pension Trustees Pension Plan No. 5
2 October 2012 y Pension Plan No. 5
Rules, Regulations and Administrative Information...................................... 18
Complying with Section 404(c)...................................................................... 18
If Your Application for Benefits Is Denied...................................................... 19
Assignment of Benefits.................................................................................. 20
Other Plan Details ......................................................................................... 21
Future of the Plan.......................................................................................... 23
Allocation of Fiduciary Responsibility............................................................ 23
Your Rights Under ERISA............................................................................. 24
Contact Information........................................................................................... 26
Pension Plan No. 5 y October 2012 3
About This SPD
To understand your benefits from the Electrical Contractors’
Association and Local Union 134, I.B.E.W. Joint Pension Trust of
Chicago Pension Plan No. 5 (referred to as “Pension Plan No. 5" or
“Plan”), you must read this Booklet in its entirety. The Plan may
provide retirement or disability benefits to you and survivor benefits
for your spouse or named beneficiary.
The Plan is financed by
contributions made by the
contributing employers to
the Electrical Contractors’
Association and Local
Union 134, I.B.E.W. Joint
Pension Trust of Chicago.
Read this Booklet carefully
to understand the benefits
that apply to Plan
This Booklet is a Summary Plan Description of Pension Plan No. 5 as it applies to
Plan participants on or after July 1, 2009. It covers the following topics: participants on or after
July 1, 2009. Please note
that this Booklet is also
• Your Pension Plan Benefits at-a-Glance available online at
• What Happens If… www.fundoffice.org.
• Participation
• Making Your Investment Selection
• Your Account
• Rules, Regulations and Administrative Information
• Contact Information
Every effort has been made to describe Plan provisions in a manner intended to
be understood by Plan participants. If there is any variation between the language
in this Booklet and in the official Plan documents, the official Plan documents will
prevail.
Additional information about the Plan is readily available from the Fund Office.
The Fund Office can inform you if a particular employer is a contributing employer
and, if so, the employer’s address. You may examine copies of the applicable
collective bargaining agreement and other documents at the Fund Office. See
“Contact Information” on page 26 for the phone number and web address of the
Fund Office.
Electrical Pension Trustees Pension Plan No. 5
4 October 2012 y Pension Plan No. 5
Your Pension Plan
Benefits at-a-Glance
This section highlights and summarizes basic Plan provisions.
Feature Pension Plan Benefits
Eligibility You become a participant in Pension Plan No. 5 on the day your employer is
required, under the terms of the collective bargaining agreement, to make a
contribution to the Pension Trust on your behalf.
Cost of Coverage The Plan is funded entirely by contributions made by contributing
employers.
Contributions The contribution rate is established by the collective bargaining agreement
you work under. You receive a contribution for each hour of work performed
under the collective bargaining agreement.
Vesting You are immediately 100% vested in your Pension Plan No. 5 account.
When Benefits Are Payable After you leave Industry Employment, and:
• You have reached age 55 with 10 years of eligibility service under a
pension plan sponsored by the Trustees,
• You are at least age 62 and have had contributions made on your behalf
for at least 10 calendar years,
• You are age 65 or older,
• You are receiving a Social Security disability benefit or you have applied
for a Social Security disability benefit and the Trustees determine that
you are unable to perform any work for an indefinite period because of a
serious physical or mental impairment,
• You have not performed Industry Employment for at least two years, or
• You have not worked for a contributing employer for at least two years
(roll over option only).
Payment Method • Cash Lump Sum — You receive your account balance in one lump
sum payment.
• Single Life Annuity — This is the normal payment form if you are
single. Your benefit will be paid as a life annuity (an unreduced monthly
pension income for as long as you live).
• 50% Contingent Annuity — This is the normal payment form if you are
married. Your benefit will be paid as a 50% contingent annuity (reduced
monthly retirement income for as long as you live and, after your death,
your surviving spouse will receive a monthly benefit equal to 50% of
your reduced monthly benefit for the remainder of the surviving spouse’s
life).
• 75% Contingent Annuity — This is an optional payment form if you are
married. Your benefit will be paid as a 75% contingent annuity (reduced
monthly retirement income for as long as you live and after your death,
your surviving spouse will receive a monthly benefit equal to 75% of
your reduced monthly benefit for the remainder of the surviving spouse’s
life).
Feature Pension Plan Benefits
If you are single or have been married for less than one year and you die
before your pension begins, your beneficiary may be eligible to receive your
account balance.
Survivor Benefits
If you have been married for at least one year, your spouse may receive
your account balance or may be eligible to receive a Qualified Preretirement
Survivor Annuity, paying a monthly benefit to your spouse for his or her
lifetime.
Pension Plan No. 5 y October 2012 5
Electrical Pension Trustees Pension Plan No. 5
6 October 2012 y Pension Plan No. 5
What Happens If…
This section shows how different situations may affect your
participation in the Plan.
You Are a New Participant
Your participation in the Plan is automatic and begins on the date your employer
is required to make the first contribution to the Plan on your behalf.
You Change Your Marital Status
Marriage
Your new spouse may be entitled to a benefit under the Plan when you die.
Contact the Fund Office to receive a new beneficiary designation form.
Divorce
You may be required to have payments made from your Plan account to your
former spouse, child or other dependent if a qualified domestic relations order is
issued by a court of law.
You Are Laid Off
You may receive benefits if you have not performed Industry Employment for at
least two years. You may also be able to roll over your account balance if you are
working in the industry, but you have not worked for a contributing employer for at
least two years.
You Become Disabled
You may be eligible to receive your account balance if you are receiving Social
Security disability payments or you have applied for Social Security disability
payments and the Trustees determine that you are unable to perform any work
for an indefinite period because of a serious physical or mental impairment.
You Retire
You may receive a benefit from the Plan at age 65, at age 62 if you have had
contributions made on your behalf for at least 10 calendar years, or at age 55 if
you have at least 10 years of eligibility service under a pension plan sponsored
by the Trustees.
Applying for Benefits
To apply for benefits, you should contact the Fund Office for benefit application
forms. You must file a completed application with the Fund Office, who will then
present the application to the Trustees for approval. You may be asked to supply
evidence of age and any other information that is necessary to process your
application.
The Fund Office should receive the completed application at least 90 days before
you expect to receive a distribution from the Plan.
Pension Plan No. 5 y October 2012 7
Your Employer Stops Making Contributions to the Trust
Active participation ends if your employer no longer makes the required
contributions to the Pension Trust on your behalf. Your account will remain in the
Plan and you will be able to change your investment elections, as described in
“
For More Information…
Contact the Fund Office
Investment Fund Choices” on page 11. You can receive a distribution of your
account balance when you meet the requirements described in “ for more information. See
When Your
Account Is Paid “Contact Information” on
” on page 14. Contact the Fund Office for more information. page 26 for the Fund
Office’s phone number
You Die and web address.
If you die while actively employed or before you receive a distribution of your
entire account balance, your spouse or named beneficiary will be eligible to
receive your account balance. If you have been married for at least one year,
your spouse may be entitled to receive a Qualified Preretirement Survivor
Annuity.
Applying for Benefits If You Die
To apply for benefits, your spouse (or named beneficiary) should contact the
Fund Office for benefit application forms. Your spouse (or named beneficiary)
must file a completed application with the Fund Office, who will then present the
application to the Trustees for approval. Your spouse (or named beneficiary)
must submit a copy of your death certificate and any other information that is
necessary to process the application.
The Fund Office should receive the completed application at least 90 days before
your spouse (or beneficiary) expects to receive a distribution from the Plan.
Electrical Pension Trustees Pension Plan No. 5
8 October 2012 y Pension Plan No. 5
Participation
This section explains when you participate in the Plan, how
contributions are made once you are eligible to participate and how
to name a beneficiary.
Plan Eligibility
You are automatically eligible to participate in Pension Plan No. 5 if your
employer is required, under the terms of a collective bargaining agreement, to
make a contribution on your behalf to the Plan. You continue as a participant until
you receive the full balance of your account in the Plan.
Naming a Beneficiary
As soon as you become a participant of the Plan, you should name a beneficiary,
someone who receives your account if you die before you receive the entire
balance of your account in the Plan. You may name any person or persons you
wish and change your designation at any time by submitting a new beneficiary
form to the Fund Office. However, if you have been married for at least one year
and you name a primary beneficiary other than your spouse, you must have
written, notarized consent of your spouse to your beneficiary election in order for
such beneficiary designation to be valid.
You may revoke your beneficiary designation at any time prior to receiving the
entire balance of your account in the Plan. To do so you must provide the
Trustees with a written revocation on a form prescribed by the Trustees. Contact
the Fund Office to request a revocation form or download the form from the
Plan’s website. See “Contact Information” on page 26 for the Fund Office’s phone
number and the Plan’s website.
If you marry, remarry or divorce, your existing beneficiary designation becomes
invalid and you must designate a new beneficiary. Otherwise, any benefits will be
paid in accordance with the “If you die without a beneficiary” rules described in
the box below.
Please note that if you divorced prior to July 1, 2005, your beneficiary designation
is not deemed invalid and if you wish to name a new beneficiary you must follow
the procedures listed above.
Pension Plan No. 5 y October 2012 9
If You Die Without a Beneficiary
If you die before you receive the entire balance of your account in the Plan or
before annuity payments begin and you did not designate a beneficiary before
your death, or none of your designated beneficiaries survives you, your account
in the Plan will be paid in the following order:
• your spouse,
• your children, in equal shares,
• your parents, and
• your estate.
Contributions to the Plan
Your employer contributes to the Plan on your behalf at the rate established by
the collective bargaining agreement you work under. Contributions are made for
each hour of work you complete under the collective bargaining agreement. Your
account grows tax-deferred while the funds stay in the Plan.
For More Information…
Contact the Fund Office
for more information. See
“Contact Information” on
If you work in another jurisdiction, your account may also receive contributions
made by your employer to another fund and transferred to the Pension Trust
under a reciprocity agreement. The hourly contribution rate for such contributions
is established by the collective bargaining agreement in that jurisdiction.
page 26 for the Fund
Office’s phone number
and web address.
Only your employer can contribute to the Plan on your behalf. However, you may
be able to roll over a balance from another qualified retirement plan or an IRA into
the Plan. Contact the Fund Office for more information.
Military Service
The Plan complies with the provisions of the Uniformed Services Employment
and Reemployment Rights Act of 1994 (USERRA). If you serve in qualifying
military service and you return to work within the timeframes prescribed by
USERRA, you may be eligible for service credit and contributions that would have
been made during your leave.
If you do not return to work due to a disability or death resulting from your time in
qualified military service, you will be treated as if you had met the reemployment
requirements under USERRA on the day preceding your death or disability and
will receive contributions as if you had terminated employment on the actual day
of your death or disability.
Electrical Pension Trustees Pension Plan No. 5
10 October 2012 y Pension Plan No. 5
Making Your Investment
Selection
You may invest the employer’s contributions made to the Plan on
your behalf among any of the investment funds listed in “Investment
Fund Choices” on page 11 in 1% increments — with the total
amount equaling 100%. If you do not make an election, your
employer’s contributions will be invested in the IBEW/NECA Stable
Value Investment Fund. If you still have not made an investment
election after six months, any contributions made after six months
will be invested in the SSgA Target Retirement Portfolio that
corresponds to your 62nd birthday. You can make your investment
election using the Plan’s toll-free number or website, as explained
below.
Please Note: If your date of birth is missing or not known, your
investments will default to the SSgA Target Retirement Income
Commingled Trust.
For New Participants
Shortly after your employer makes the first contribution to the Plan on your
behalf, you will receive an investment kit and personal identification number (PIN)
from Mercer, the Plan’s recordkeeper. To direct the investment of the employer’s
contributions made to the Plan on your behalf, call the Plan’s toll-free number
from any touchtone phone — (888) 752-6555. You will be connected to an
automated telephone system that walks you through your choices. Just follow
directions for making your choices. You may also visit the Plan’s website at
www.ibenefitcenter.com.
For Current Participants
The Plan is flexible. You can change how your existing Plan account balances
are invested and how future contributions are to be invested by calling
(888) 752-6555 or going online at www.ibenefitcenter.com. Make sure you have
your PIN available when you call or go online. If you do not know your PIN, call
(888) 752-6555 or click on the “Don’t know your PIN?” section of the homepage
on the website. You may request a PIN confirmation statement by using either
the Plan’s toll-free number or the website.
Pension Plan No. 5 y October 2012 11
Investment Fund Choices
You choose how to invest the money in your account from among several
investment fund options. Diversify Your Savings
Your account grows or declines in value depending on the performance of the
investment fund or funds you select. If you have any questions about how to use
these investment funds to best meet your retirement objectives, refer to your
investment selection kit or call a customer service representative at
(888) 752-6555. An easy way to remember the number is (888) PLAN555. You
may also visit the Plan’s website at
When choosing among the
investment fund options in
the Plan, you should also
consider how your
personal savings outside
www.ibenefitcenter.com. the Plan are invested. This
can help you to determine
The Trustees may change the investment funds from time to time. These are the
available investment fund options as of June 30, 2012. how to invest the money in
your Pension Plan No. 5
Important Note! Pension Plan No. 5 is intended to comply with the requirements
of ERISA Section 404(c). Under these rules, you have control over your
investment fund selections and the Plan’s fiduciaries may be relieved of liability
for any losses that are the direct and necessary result of investment instructions
given by you or your beneficiary. See “
account.
Complying with Section 404(c)” on
page 18 for more information.
Your Investment Fund Choices
Fund Type Funds
• SSgA Target Retirement 2050 Portfolio Asset Allocation (ready-
mixed) Investments • SSgA Target Retirement 2045 Portfolio
• SSgA Target Retirement 2040 Portfolio
• SSgA Target Retirement 2035 Portfolio
• SSgA Target Retirement 2030 Portfolio
• SSgA Target Retirement 2025 Portfolio
• SSgA Target Retirement 2020 Portfolio
• SSgA Target Retirement 2015 Portfolio
• SSgA Target Retirement 2010 Portfolio
• SSgA Target Retirement Income
• IBEW/NECA Stable Value Investment Fund Capital Preservation
Investments
• SSgA U.S. Treasury Inflation Protected Income Investments Securities (TIPS) Index
• SSgA U.S. Aggregate Bond Index
• PIMCO Total Return Fund
• MFS Large Cap Value Equity Value Investments
• SSgA S&P 500 Equity Index Fund Blend Investments
• SSgA Russell 2000 Index
• EB Diversified Stock Fund
• GMO International Equity
• ING Small Cap Core Equity
• Growth Fund of America Growth Investments
Electrical Pension Trustees Pension Plan No. 5
12 October 2012 y Pension Plan No. 5
Your account is adjusted for investment earnings or losses on a daily basis.
Investment income, net of administrative charges, includes interest, dividends
and other earnings and also gains and losses in the market value of the
investment funds you select. Earnings from your account are reinvested into your
account.
The growth of your account depends on your contributed hours, the employer
contribution rate and investment returns. For example, if your employer
contributes $3,440 a year on your behalf and your account earns an average
investment return of 2%, 4%, 6% or 8% a year, your account would grow as
shown in the chart below:
The following chart shows how an investment of $10,000 would grow over 30
years at different rates of return. As you can see, even a small difference in the
rate of return may make a big difference in your total account balance.
Pension Plan No. 5 y October 2012 13
Administrative Expenses
The Plan currently charges a fee of $6.75 per month ($81 per year) per
participant to pay Mercer’s recordkeeping fees and to defray administrative
expenses of the Fund Office. These fees are deducted monthly from your
account on the fifth business day of the month.
Plan Recordkeeper and
Custodian
Mercer is the recordkeeper
Pursuant to a Plan Expense Reimbursement Agreement between Mercer and the
Plan’s Trustees, any compensation Mercer receives from third parties by virtue of
the Plan’s investments is used to reduce the annual administrative fees that
would otherwise be charged by Mercer, in this way directly benefiting the
participant.
for the Plan. Mercer Trust
Company is the Plan’s
custodian, with
contributions sent to
Mercer Trust Company for
investment.
Electrical Pension Trustees Pension Plan No. 5
14 October 2012 y Pension Plan No. 5
Your Account
This section provides information about your account, including
information you will receive from the Plan, when you become
vested, and when and how your account can be paid.
Your Account Statement
The balance of your account will change as employer contributions are made to
your account and based on the investment performance of your account. Four
times a year, you will receive a statement of your account. You may also receive
your current account information online at www.ibenefitcenter.com.
Your statement will show:
• the market value of your account balance at the beginning of the quarter,
• employer contributions made for you during the quarter,
• your share of investment income, including the net gain or loss in market
value of your investment in each fund, net of administrative charges,
• any fees deducted for recordkeeping and administrative charges, and
• any fund transfers you may have made, and the market value of your account
balance at the end of each quarter.
Vesting
Vesting refers to your right to a Plan benefit. You are immediately 100% vested in
your account balance in Pension Plan No. 5.
When Your Account Is Paid
You can receive a distribution of your entire account balance by filing a
completed application form with the Trustees after leaving Industry Employment if
you:
What Is Industry
Employment?
• have reached age 55 with 10 years of eligibility service under a pension plan
sponsored by the Trustees,
Industry Employment is
considered employment
within the trade and • are age 62 and have had contributions made on your behalf for at least 10
years,
geographical jurisdiction of
Local Union 134. • are age 65,
• are receiving a Social Security disability benefit, or you have applied for a
Social Security disability benefit and the Trustees have determined you are
unable to perform any work for an indefinite period because of a serious
mental or physical impairment, or
• have not performed Industry Employment for at least two years, or have not
worked for a contributing employer for at least two years but are working in
the industry. In this case, your only payment option is a direct rollover. A
direct rollover is a transfer of an eligible balance from one qualified plan to
another, or to an individual retirement account (IRA).
Pension Plan No. 5 y October 2012 15
Please Note: While you are registered at the referral hall, you are considered to
be in Industry Employment because you are actively seeking covered
employment.
You must start receiving payments by April 1 following the calendar year you
reach age 701⁄2, even if you are still working.
For more information on requesting a payment, see “Applying for Benefits” on
page 17.
How Your Account Is Paid
When it is time to receive a distribution of your account, the Plan provides you
with several options. You may elect a payment form as described below.
However, if you are married, your spouse must give written consent for you to
elect the cash lump sum or the single life annuity form of payment.
Cash Lump Sum
You receive your entire account balance in one cash payment. No further benefit
is then payable.
Single Life Annuity
Your account pays you a monthly payment for as long as you live. After your
death, no payments will be made to anyone else. If you are single, this is your
normal form of payment.
50% Contingent Annuity
If you are married, you are eligible for this option. Your account pays you a
reduced monthly amount for your lifetime. After your death, your spouse will be
paid 50% of your payment each month for the rest of his or her life. If you are
married, this is your normal payment form.
You will receive written information about the 50% Contingent Annuity between
30 and 90 days before the annuity payments are scheduled to begin. However, in
certain situations, the annuity can begin sooner than 30 days after you receive
this information.
75% Contingent Annuity
If you are married, you are eligible for this optional form of benefit. Your account
pays you a reduced monthly amount for your lifetime. After your death, your
spouse will receive 75% of your reduced monthly benefit for the remainder of his
or her life.
Electing an Optional Form of Payment If You Are Married
If you are married, you may elect a cash lump sum or a single life annuity if you
have your spouse’s consent. You must provide the Fund Office with your
spouse’s written and notarized consent within 90 days before payment may be
made. Please note that once your annuity payments begin, you may not make a
change to the form of benefit.
Electrical Pension Trustees Pension Plan No. 5
16 October 2012 y Pension Plan No. 5
Paying Taxes
If you receive a cash lump sum, you should be aware that federal tax withholding
up to 20% of your account balance is deducted from the payment you receive
from the Plan. Your account balance is taxed as ordinary income in the year you
receive it and, depending on your age and circumstances, may also be subject to
a 10% federal tax penalty for early withdrawal.
You can defer the payment of income taxes and avoid the 20% withholding and
any applicable penalty by instructing the Trustees to roll over the eligible balance
directly into another qualified plan or an individual retirement account (IRA).
Another option is for you to receive your account balance and then roll it over
yourself into another qualified plan or IRA within 60 days from the date of receipt.
In this case, you defer income taxes, but the 20% withholding is still deducted
from the Plan payment. As a result, only 80% of your account balance is available
to be rolled over, and the remaining 20% would be taxable. To roll over an
amount equal to 100% of your account balance and defer taxes on the full
amount of your account balance, you will need to use other money to replace the
20% that was withheld by the Plan. This option is not available for a non-spouse
beneficiary.
You should contact your personal tax advisor to get further information on the tax
implications of any payment you receive from the Plan.
To request payment of the balance in your account after your employment ends
and you meet the requirements under “When Your Account Is Paid” on page 14,
call Mercer at (888) 752-6555 or the Fund Office at (312) 782-5442.
Survivor Protection
If you die before benefit payments begin and you are single or have been married
for less than one year, your beneficiary will receive the entire amount of your
account in a lump sum payment.
If you have been married for at least one year at the time of your death, but
before your Plan payments begin, your death benefit will be paid to your
designated beneficiary. For purposes of designating a beneficiary, your individual
account is divided into two equal portions: a spousal rights portion and a non-
spousal rights portion.
The spousal rights portion will be paid in the form of a Qualified Preretirement
Survivor Annuity (QPSA) unless your spouse consents to another person being
designated as the beneficiary of the spousal rights portion. The QPSA is the
actuarial equivalent of 50% of the balance of your account on the date of your
death. Benefit payments will begin the first of the month following the month in
which you die and will continue until your spouse dies. Your spouse may elect to
waive the QPSA form of payment and elect a lump sum distribution of 50% of the
balance of your account on the date of your death.
The second portion is the non-spousal rights portion which is paid to your
designated beneficiary. You can designate your spouse as your beneficiary and it
will be paid at the same time and in the same manner in which your spouse
elected to have the spousal rights portion distributed. If you chose a non-spouse
as your beneficiary, the non-spousal rights portion will be paid as an immediate
lump sum or may be rolled over to an inherited IRA.
Pension Plan No. 5 y October 2012 17
Please note that your spouse’s written and notarized consent will be required if:
• the spouse elects not to receive the Qualified Preretirement Survivor Annuity,
or
• you designate a beneficiary other than your spouse to receive more than
50% of your account balance.
If you do not name a beneficiary (or your named beneficiary does not survive
you), or your beneficiary designation is invalid, your account (or the portion of
your account that is not payable to your spouse in the form of a Qualified
Preretirement Survivor Annuity) will be paid in the following order:
• your spouse,
• your children, in equal shares,
• your parents, or
• your estate.
Applying for Benefits
To apply for your Pension Plan No. 5 benefits, you (or your named beneficiary)
may telephone or write to the Fund Office for benefit application forms. You (or
your named beneficiary) must file a completed application with the Fund Office,
which will then present the application to the Trustees for approval. You (or your
named beneficiary) may be asked to supply evidence of age and any other
additional information the Trustees consider necessary to process the application.
Depending on the payment form you choose, it may take up to 90 days before
you can expect payment. It is your responsibility to furnish any information
needed, including a current mailing address. Failure to do so may delay the
distribution of the benefit.
Electrical Pension Trustees Pension Plan No. 5
18 October 2012 y Pension Plan No. 5
Rules, Regulations and
Administrative
Information
This section provides information on how Pension Plan No. 5
complies with federal legislation, what to do if your benefit is denied
or you receive a court order affecting your benefit, who is
responsible for overseeing the Plan and how to contact them, and
your rights under federal legislation.
Complying with Section 404(c)
Pension Plan No. 5 is intended to comply with the requirements of ERISA
Section 404(c). Under these rules, you have control over your investment fund
selections and the Plan’s fiduciaries may be relieved of liability for any losses that
are the direct and necessary result of investment instructions given by you or
your beneficiary. According to section 404(c) of ERISA, you may obtain the
following information about the Plan’s available investment fund options:
• A description of the annual operating expenses of each investment fund
option and how they affect the net investment return of that investment fund,
and the aggregate amount of these expenses expressed as a percentage of
average net assets of the investment fund,
• Copies of any prospectuses, financial statements, reports and other similar
materials relating to the investment funds that have been provided to Pension
Plan No. 5,
• A list of the assets that make up the portfolio of each investment fund and the
value of each asset or the proportion of the investment fund which it
comprises,
• With respect to fixed rate investment contract fund options, the name of the
contract issuer and the term of the contract and rate of return on the contract,
and
• Information concerning the total value of shares or units in each of the
investment fund options, as well as the past and current investment
performance of each investment fund, determined net of expenses, and
information concerning the value of shares or units in the investment fund
options in which your Plan account is invested.
For any of the above information, please contact a Mercer customer service
representative at (888) 752-6555.
Pension Plan No. 5 y October 2012 19
If Your Application for Benefits Is Denied
If an application is partially or wholly denied, you (or your beneficiary) will be
notified within 90 days (45 days if the application is on account of your disability)
from the time the application is received by the Trustees or within 180 days (75
days with one extension or 105 days with two extensions, if the application is on
account of your disability) if the Trustees notify you before the end of the initial
notification period that additional time is needed for processing the application. To
help you refile your application the denial notice will give you:
• the specific reason for the denial;
• reference to the specific Plan provisions on which the determination is based;
• a description of any additional material or information necessary for you to
perfect the claim and an explanation of why it’s needed;
• a description of the Plan’s review procedures and time limits;
• a statement of your right to bring a civil action under Section 502(a) of ERISA
following a denial of your claim on review;
• if your application is for benefits on account of your disability, your right to
receive, upon your request, a copy of any internal rules, guidelines, protocols,
or other similar criteria used as a basis for the denial; and
• if your application is for benefits on account of your disability, your right to
receive, upon your request, an explanation of the scientific or clinical
judgment that was used in applying the terms of the Plan to your medical
circumstances.
You or your beneficiary may request a review by the Trustees no later than 60
days after a notice of denial is received (180 days if the denied application is on
account of your disability). This request must be in writing and specify that it is an
appeal for a review of a denied application for benefits. In connection with this
appeal, you, your beneficiary or a representative has the right to review pertinent
documents and submit issues and comments in writing to the Trustees. You may
request copies of all documents, records and other information relevant to your
denied claim. If you are appealing a denial of an application for benefits on
account of your disability, you may also request access to:
• any policy, statement or guidance concerning the denied treatment option or
benefit for your diagnosis, regardless of whether it was relied on in the denial;
and
• the identity of medical or vocational experts whose advice was obtained on
behalf of the Plan in connection with the denial, regardless of whether the
advice was relied on in the denial.
Electrical Pension Trustees Pension Plan No. 5
20 October 2012 y Pension Plan No. 5
Your appeal will be decided by the Board of Trustees or a sub-committee of the
Board. The Trustees hold regular meetings at least four times per year. If your
appeal is filed more than 30 days before a regular meeting of the Trustees, your
appeal will be decided at that meeting unless special circumstances require an
extension of time for processing, in which case a decision will be made on your
appeal at the next following meeting of the Trustees. If your appeal is filed within
the 30-day period immediately preceding a regular meeting of the Trustees, the
appeal will not be decided at that meeting but will be decided at the next following
meeting, unless special circumstances require an extension of time for
processing your appeal. In that case, a decision will be made on your appeal at
the third regular meeting following the date your appeal was filed.
Once the Board of Trustees has decided your appeal, the Plan will send you a
written notice of the decision. The notice will be mailed within five days of the
Trustees’ decision. If the Trustees uphold the denial of your claim, you will then
have the right to file suit under the authority of the Employee Retirement Income
Security Act of 1974, as amended (ERISA). Also, if your appeal is denied, you
are entitled to receive upon request at no cost, copies of documents and
information that the Plan relied on in denying your claim. See “Your Rights Under
ERISA” on page 24 for more information.
No lawsuit or other action against the Pension Trust or its Trustees may be filed
until the matter has been submitted for review under these procedures. In the
event your appeal has been denied, no legal action can be brought after 90 days
from the decision on appeal.
Assignment of Benefits
Generally, your benefit may not be assigned, sold, transferred, garnished or
pledged as collateral. Part or all of your benefit, however, may be allocated to an
alternate payee (your spouse, ex-spouse, child, or other dependent) to satisfy a
qualified domestic relations order (QDRO). A QDRO, issued by a state court,
provides that a portion of your benefit be paid for support, maintenance or marital
property rights.
Benefits payable to you will be paid in accordance with the payment provisions
described in “How Your Account Is Paid” on page 15. If specified in the QDRO,
the alternative payee may receive an immediate payment. The alternate payee
may also choose to have the benefit held in the Plan until the later of:
• 60 days after the end of the Plan year in which you reach age 65,
• 60 days after the end of the Plan year in which you terminate employment, or
• April 1 following the calendar year in which you reach age 701⁄2 or would have
reached age 701⁄2.
The QDRO must specify when the alternate payee’s payments are to begin and
the payment form. The payment forms available for an alternate payee are:
• a lump sum cash payment,
• installment payments, or
• a single life annuity.
Pension Plan No. 5 y October 2012 21
The QDRO may state that on your death the alternate payee will be your named
survivor for all or a portion of your benefit. The QDRO may provide that the
alternate payee may specify a beneficiary who will receive the alternate payee’s
benefits if he or she dies before receiving payment.
You may obtain a copy of the Plan’s model QDRO and the procedures governing
QDRO determinations without charge from the Fund Office.
Other Plan Details
This section contains other important information about the administration and
funding of Pension Plan No. 5.
Plan Name
The official name of the Plan is the Electrical Contractors’ Association and Local
Union 134, I.B.E.W. Joint Pension Trust of Chicago Pension Plan No. 5.
Plan Administrator and Plan Sponsor
The Plan Administrator and Plan Sponsor of the Plan, as described in this SPD,
is the:
Board of Trustees of Electrical Contractors’ Association and Local Union 134,
I.B.E.W. Joint Pension Trust of Chicago
221 North LaSalle Street, Suite 200
Chicago, Illinois 60601
The benefit program is administered under provisions of the Employee
Retirement Income Security Act of 1974, as amended (ERISA) and the Internal
Revenue Code of 1986, as amended. All of your rights and benefits are solely
governed, respectively, by the Joint Pension Trust and Pension Plan No. 5.
Agent for Legal Process
Sean P. Madix, Fund Administrator, located at 221 North LaSalle Street, Suite
200, Chicago, Illinois 60601, is the agent for service of legal process concerning
the Plan. The telephone number is (312) 782-5442.
Service may also be made on the Board of Trustees or an individual Trustee at
the addresses listed below.
Trustees
The Plan Trustees who authorize benefit payments have the authority to resolve
questions concerning the Plan and to make rules to implement the Plan. The
Trustees have discretion to interpret the Plan’s language to determine eligibility
and Plan benefits.
As of July 1, 2012, the members of the Board of Trustees are as follows:
Employer Trustees
William T. Divane, Jr.
Divane Bros. Electric Co.
2424 North 25th Avenue
Franklin Park, Illinois 60131
(847) 455-7143
Electrical Pension Trustees Pension Plan No. 5
22 October 2012 y Pension Plan No. 5
Kevin M. O’Shea
Shamrock Electric Company, Inc.
1281 East Brummel Avenue
Elk Grove Village, Illinois 60007
(847) 593-6070
Steven Diamond
Malko Electric Company
6200 Lincoln Avenue
Morton Grove, Illinois 60053
(847) 967-9500
Michael R. Walsdorf
Advent Systems, Inc.
435 W. Fullerton Avenue
Elmhurst, Illinois 60126
(630) 279-7171
Kenneth Bauwens
Jamerson & Bauwens Electrical Contractors, Inc.
3055 MacArthur Blvd
Northbrook, Illinois 60002
(847) 291-2000
Union Trustees
Terry Allen
John P. Dalton
Christopher N. McCormick
Samuel Evans
Kevin Connolly
I.B.E.W. Local 134
600 West Washington Boulevard
Chicago, Illinois 60661
(312) 454-1340
All questions and requests for information should be sent to the Trustees at the
following address:
Attention: Plan Administrator
Electrical Contractors’ Association and Local 134 I.B.E.W. Joint Pension
Trust of Chicago Pension Plan No. 5
221 North LaSalle Street, Suite 200
Chicago, Illinois 60601
Plan Funding
Coverage for you under the Plan is paid for by contributions of the contributing
employers to the Board of Trustees of Electrical Contractors’ Association and
Local Union 134, I.B.E.W. Joint Pension Trust of Chicago. The amount of the
contribution is established by the collective bargaining agreements. Assets are
held in trust by the Trustees and disbursed by them. Contributions are sent to the
Plan’s custodian, Mercer Trust Company, for investment.
Pension Plan No. 5 y October 2012 23
Plan Year
Plan administration and Plan records are maintained on a fiscal year basis with
the Plan year ending on June 30.
Employer Identification Number
The employer identification number for federal government purposes is EIN
51-6030753.
Plan Number
The Plan number is 005.
Future of the Plan
Although the Trustees intend to continue this Plan indefinitely, the Trustees
reserve the right to change or discontinue the Plan at any time for any reason.
Modifications or amendments may be made retroactively, if necessary, to qualify
or maintain the benefits program in order to meet the requirements of applicable
law, including the Internal Revenue Code of 1986, as amended and the
Employee Retirement Income Security Act of 1974, as amended (ERISA). No
amendment will deprive you of any benefits to which you have earned the right, to
the extent that those benefits are then funded. If the Plan is terminated, your
benefits under the Plan will be 100% vested.
Since this is a defined contribution plan, with benefits based on your actual
account balance, your benefit is not guaranteed by the Pension Benefit Guaranty
Corporation (PBGC). The PBGC is a federal agency that insures benefits based
on a defined benefit formula.
Allocation of Fiduciary Responsibility
The Trustees have full power and discretionary authority to interpret and
administer the Plan. This includes, but is not limited to, discretionary authority to
determine all questions relating to eligibility to participate in, be covered by, and
receive a benefit under the Plan. The Trustees may rely on administrative
guidelines and precedents and seek advice from third party consultants. The
Trustees may delegate authority, in whole or in part, in certain circumstances,
subject to review by the Trustees under applicable procedures. Benefits will only
be paid when the Board of Trustees, or persons delegated by them to make such
decisions, decide, in their sole discretion, that the participant or beneficiary is
entitled to benefits under the terms of the Plan.
Electrical Pension Trustees Pension Plan No. 5
24 October 2012 y Pension Plan No. 5
Your Rights Under ERISA
As a Plan participant, you are entitled to certain rights and protections under the
Employee Retirement Income Security Act of 1974, as amended (ERISA), as
outlined in this section.
Receive Information About Your Plan and Benefits
ERISA provides that all Plan participants are entitled to:
• Examine documents governing the Plan (including any insurance contracts
where applicable and collective bargaining agreements) and copies of all
documents filed by the Plan with the U.S. Department of Labor, such as
annual reports (including Form 5500 series). You may review these
documents without charge at the Plan Administrator’s office during normal
business hours. In addition, documents filed with the U.S. Department of
Labor are available at the Public Disclosure Room of the Employee Benefits
Security Administration.
• Obtain copies of Plan documents and other Plan information (including
insurance contracts, collective bargaining agreements, Form 5500 series,
and an updated Summary Plan Description) upon written request to the Plan
Administrator. The Plan Administrator may charge a reasonable fee for
copying the documents.
• Receive a summary of the Plan’s annual financial report. The Plan
Administrator is required by law to furnish each participant with a copy of this
report.
• Obtain a statement telling you the amount of benefit to which you are entitled.
The statement must be requested in writing and is not required to be given
more than once a year. The Plan must provide the statement free of charge.
Prudent Actions by Plan Fiduciaries
In addition to creating rights for Plan participants, ERISA imposes duties upon
people who are responsible for the operation of the Plan. The people who
operate the Plan are called “fiduciaries” of the Plan and have a duty to do so
prudently and in the best interest of you and other Plan participants and
beneficiaries. No one, including your employer, your union, or any other person,
may fire you or otherwise discriminate against you in any way to prevent you from
obtaining a retirement benefit or exercising your rights under ERISA.
Enforce Your Rights
If your claim for a benefit is denied or ignored, in whole or in part, you have a right
to know why this was done, to obtain copies of documents relating to the decision
without charge, and to appeal any denial, all within certain time schedules.
Under ERISA, there are steps you can take to enforce the above rights. For
instance, if you request a copy of Plan documents or the latest annual report from
the Plan and do not receive them within 30 days, you may file suit in a federal
court. In such a case, the court may require the Plan Administrator to provide the
materials and pay you up to $110 a day until you receive the materials, unless the
materials were not sent because of reasons beyond the control of the
Administrator.
Pension Plan No. 5 y October 2012 25
If you have a claim for benefits which is denied or ignored, in whole or in part, you
may file suit in a state or federal court. In addition, if you disagree with the Plan’s
decision, or lack thereof, concerning the qualified status of a domestic relations
order, you may file suit in federal court. If it should happen that Plan fiduciaries
misuse the Plan’s money, or if you are discriminated against for asserting your
rights, you may seek assistance from the U.S. Department of Labor, or you may
file suit in a federal court.
The court will decide who should pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these costs and
fees. If you lose, the court may order you to pay the costs and fees, for example,
if it finds your claim is frivolous.
Assistance with Your Questions
If you have any questions about the Plan, you should contact the Plan
Administrator. If you have any questions about this statement or about your rights
under ERISA, you should contact the nearest office of the Employee Benefits
Security Administration (EBSA), U.S. Department of Labor, listed in your
telephone directory, or the:
Division of Technical Assistance and Inquiries
Employee Benefits Security Administration (EBSA)
U.S. Department of Labor
200 Constitution Avenue N.W.
Washington, D.C. 20210
EBSA’s regional office is located at 230 South Dearborn Street, Suite 2160,
Chicago, Illinois 60606, and its telephone number is (312) 353-0900.
You may also obtain certain publications about your rights and responsibilities
under ERISA by contacting the Employee Benefits Security Administration as
follows:
• By calling (866) 444-3272;
• Sending electronic inquires to www.askebsa.dol.gov; or
• Visiting the web site of EBSA at www.dol.gov/ebsa.
Electrical Pension Trustees Pension Plan No. 5
26 October 2012 y Pension Plan No. 5
Contact Information
The following table shows you who to contact when you have
questions about your benefits.
For Information on… Contact Phone Number and Website
Your investment options
and account balance Mercer (888) 752-6555 or
(888) PLAN555
www.ibenefitcenter.com
Requesting a distribution
from your account or
applying for benefits
The Fund Office (312) 782-5442
www.fundoffice.org
