National Pension FundNational Pension Fund

Summary plan deScriptionjuly 2013 edition

united food & commercial workers international union-industry pension fund

future Service penSion plan

National Pension Fund

1

u n i t e d f o o d

& c o m m e r c i a l

W o r k e r S

i n t e r n a t i o n a l

u n i o n - i n d u S t r y

p e n S i o n f u n d

f u t u r e S e r v i c e

p e n S i o n p l a n

Summary

plan

description

july 2013

edition

p.o. Box 6000

frankfort, illinoiS

60423-6000

312-649-1200

800-531-2385

www.ufcwnpf.org

National Pension Fund

2

este folleto con-

tiene un resumen

en Ingles de sus

derechos del Future

Service Plan bajo el

Fondo de Pensión

Nacional. Si usted

tiene dificultad en

entender parte de

este folleto, llame a

la Fund Office, P.O.

Box 6000, Frankfort,

Illinois 60423-6000.

Las horas de oficina

son de las 8:30 a.m.

a las 4:30 p.m. hora

central. Usted puede

llamar a la Fund

Office al 800-531-

2385 para asistencia.

Una versión del

este folleto escrito

en español esta

disponible sobre la

petición.

only the Board of Trustees is authorized to interpret the Future Service

Plan described in this Summary Plan Description (SPD or booklet). No

Employer, Union or any representative of such is authorized to interpret this

Future Service Plan nor can any such person act as an agent of the Trustees. If

you would like any information regarding this Plan, it will be communicated

in writing, on behalf of the Board of Trustees. Your right to pension benefits

from the United Food & Commercial Workers International Union-Industry

Pension Fund (National Pension Fund) is governed by the Future Service

Plan Document adopted by the Trustees in effect at the time that you left

Covered Employment unless the Plan Document provides otherwise. This

booklet describes the Future Service Plan in general terms, but does not

change or interpret the Future Service Plan. In the event of any inconsistency

between this summary and the Future Service Plan Document, the Future

Service Plan Document will control. The Trustees, from time to time, may

change, amend, or interpret the Future Service Plan Document. If the infor-

mation in this booklet changes, the Fund Office will send you a notice of the

change in accordance with the law.

This booklet is complete and up to date as of July 1, 2013, and replaces and

supersedes any prior SPD. However, since the Trustees change the Future

Service Plan from time to time, you should ask the Fund Office to confirm

that you have the full text of the current description.

To ensure that you receive all information concerning your benefits under

the Plan, be sure to notify the Fund Office immediately of any change in

your current mailing address.

este folleto con-

tiene un resumen

en Ingles de sus

derechos del Future

Service Plan bajo el

Fondo de Pensión

Nacional. Si usted

tiene dificultad en

entender parte de

este folleto, llame a

la Fund Office, P.O.

Box 6000, Frankfort,

Illinois 60423-6000.

Las horas de oficina

son de las 8:30 a.m.

a las 4:30 p.m. hora

central. Usted puede

llamar a la Fund

Office al 800-531-

2385 para asistencia.

Una versión del

este folleto escrito

en español esta

disponible sobre la

petición.

important

National Pension Fund

4

union trustees employer trustees

Anthony M. Perrone, Chairman Walter B. Blake, Secretary

David S. Blitzstein Stephen T. Brown

Kenneth R. Boyd Richard D. Cox

Richard O. Charette Richard A. Manka

William T. McDonough Michele A. MurphyRoger Robinson William M. Vaughn, III

alternate union trustees alternate employer trustees

David P. Fleming Scott M. Henderson

Robert W. Grauvogl Ward R. KraemerRonald M. Petronella Donald G. SchaperJohnny Rodriguez John A. Wagner

Marvin D. Russow

fund administrative manager fund co-counsel

Zenith American Solutions, Inc. Reinhart Boerner Van Deuren s.c.

Slevin & Hart, P.C.

fund co-consultants and fund auditor

co-actuaries Calibre CPA Group, PLLC

The Segal Company

Milliman, Inc.

Board of truSteeS

united food

& commercial

WorkerS

international

union-induStry

penSion fund

future Service

penSion plan

www.ufcwnpf.org

to all covered employees, contributing

employers, participating local unions and

others interested in the future Service plan:

The Board of Trustees of the National

Pension Fund is pleased to present this revised

Summary Plan Description, which outlines

features of the Future Service Plan as of July 1,

2013. Please keep this booklet in a safe place

for future reference.

This Summary Plan Description generally

explains the rules that apply if you have worked

in Covered Employment on or after July 1,

2013. If you have not worked in Covered

Employment on or after July 1, 2013, your

right to receive a pension, amounts you may

be entitled to receive, and benefit options

available to you, will be determined by the

provisions of the Plan in effect at the time

you left Covered Employment. Contact the

Fund Office for information about the Plan

and benefits in place before July 1, 2013.

The Trustees recognize the past years

of cooperation by covered Employees,

contributing Employers, and participating

Local Unions who have made it possible to

provide the pension benefits described in this

booklet. Continued efforts on our part, and

yours, will bring additional financial security to

more people covered by the Future Service

Plan for many years to come.

Sincerely,

Board of trustees

Board of truSteeS National Pension Fund

6

Highlights of the

Future Service Plan 1

Words With Special Meanings 3

Participation 5

Years of Vesting Service 7

Pension Credit 9

Appropriate Unit

Contribution Rates (AUCRs) 11

Loss of Credited Service 12

Reciprocity Agreements 15

Normal Retirement Pension 16

Early Retirement Pension 20

Benefit Commencement 25

Deferred Vested Pension 26

Disability Pension 28

Forms of Pension Payment 31

Explanation of Forms of

Pension Payment 33

Surviving Spouse Benefits

Before Pension Benefits Begin 39

Applying for a Pension 42

Appeal Procedure 45

Circumstances Causing

Loss of Benefits 47

Prohibited Employment

During Retirement 49

Questions and Answers 52

Important Facts About the

Future Service Plan 54

Statement of ERISA Rights 58

Appendix A —

Participating Plans 61

Appendix B —

Reciprocity Agreements 62

Appendix C —

Appropriate Unit Contribution

Rates (AUCRs) 64

Appendix D —

Closed Bargaining Groups 90

taBle of contentS

National Pension Fund

future Service plan History

The Future Service Plan described in this booklet

generally applies to Employees who have Covered

Employment under the Future Service Plan, which

became effective July 1, 1984. This booklet describes

the Future Service Plan as amended by the Trustees

through July 1, 2013. The benefits for service under

the National Pension Fund before July 1, 1984 are

determined under the terms of the Prior Plan. The

Prior Plan is described in other booklets that you

may obtain by contacting the Fund Office.

How the future Service plan Works

The Future Service Plan pays benefits only for

years of service after June 30, 1984, for which

Employer contributions are required to be paid to

the Future Service Plan. For this reason, generally

higher pension benefits are paid for service after

June 30, 1984. Unlike the Prior Plan, which consist-

ed of a basic benefit for the basic contribution and,

for some Local Unions, a supplemental benefit, the

Future Service Plan pays only one benefit.

As of September 1, 2005, the Future Service Plan

changed the provisions used to calculate benefits.

Separate provisions apply for Participants in the Plan

prior to September 1, 2005, as well as for those first

eligible to participate on or after September 1, 2005.

In addition, Participants with a first contribution date

on or after September 1, 2009 are subject to different

benefit accrual rates for their first ten years of partici-

pation. See page 17 for more information.

relationship of the prior plan to the future Service plan

You should understand the following about the

relationship of the benefits under the Prior Plan

and the Future Service Plan:

n The Prior Plan provided a pension benefit based

on all your years of Pension Credit earned

before July 1, 1984, including years before par-

ticipation in the Prior Plan (Past Service). In

addition, benefit improvements made under the

Prior Plan may have applied to all of your Pen-

sion Credit, including years for which no con-

tributions were required (Past Service). Future

Service Plan benefits are determined only under

the rules of the Future Service Plan.

n The Future Service Plan pays benefits only

for years of service after June 30, 1984, for

which contributions are required to be paid to

the Future Service Plan. Contributions to the

Future Service Plan provide a benefit for the

year the contribution is required to be paid.

Because Future Service Plan contributions gen-

erally do not fund benefits earned in prior years,

they can be used to provide higher annual ben-

efits for Future Service Plan Participants.

n The Prior Plan rules are separate from the

Future Service Plan rules, and benefits under

each plan are determined separately based

upon the rules of each Plan and the service

earned under that Plan. The benefits under

each Plan are then combined for purposes of

determining the total pension benefit provided

by the National Pension Fund. If your Annu-

ity Starting Date is on or after January 1, 2001,

there is no maximum limit on combined Future

Service or Prior Plan Pension Credit applied to

calculate a benefit; however, in no event can any

participant receive credit for more than 35 years

under the Prior Plan. You may accrue any num-

ber of additional years of Pension Credit under

the Future Service Plan.

1

HigHligHtS of tHe future Service plan

distinction Between participating plans and

relationship of participating plans to future

Service plan

A Participating Plan is a plan that either merged into

the National Pension Fund or adopted the Future

Service Plan. Please see Appendix A (page 61) for

a list of the Participating Plans as of July 1, 2013.

Eligibility for benefits under the Future Service Plan,

with the exception of Disability Pension benefits

(see page 28), is determined by combining Vesting

Service under both the merged Participating Plan

and the Future Service Plan. The National Pension

Fund may also agree to recognize Vesting Service

under a Participating Plan that has not merged.

The National Pen sion Fund pays all benefits earned

under the Future Service Plan and a merged Par-

ticipating Plan; bene fits earned before the merger

are determined under the merged Participating Plan

provisions and bene fits earned after the merger are

determined under the Future Service Plan provisions.

The National Pension Fund has no obligation to pay

benefits earned under a Participating Plan that does

not merge into the National Pension Fund.

reciprocity agreements

To help you avoid a Permanent Break in Service,

the National Pension Fund enters into Reciproc-

ity Agreements with certain other UFCW pension

plans to recognize a Participant’s work with an

employer who participates under a different plan.

A Reciprocity Agreement allows the National Pen-

sion Fund to consider your Vesting Service with

other UFCW pension plans in determining your

eligibility for a pension. It also allows your Vest-

ing Service under the National Pension Fund to

be counted toward eligibility for a benefit under

another UFCW pension plan. In both cases, the

other plan must have signed a Reciprocity Agree-

ment with the National Pension Fund.

Reciprocity applies only to eligibility to receive

a benefit (i.e., your Vesting Service, including a

Preretirement Surviving Spouse Benefit); it does

not increase the amount of benefits under the

National Pension Fund or another UFCW pen-

sion plan. Generally, reciprocity will not reinstate

Pension Credit previously cancelled by a Perma-

nent Break in Service. However, for Future Ser-

vice Pension Credit earned after June 30, 1984,

the Plan will recognize credit under the terms of

a Reciprocity Agreement to help prevent you

from incurring a Perma nent Break in Service,

provided your benefits initially go into pay status

after August 23, 1995 or, if later, the date of the

Reciprocity Agreement. See Appendix B (page

62) for a listing of UFCW pension plans that have

a Reciprocity Agreement with the National Pen-

sion Fund as of July 1, 2013.

2

annuity Starting date: The

first day that an annuity is pay-

able or the first day on which

you are entitled to a benefit, if

other than an annuity.

appropriate unit contribution

rate (aucr): This hourly, week-

ly, or monthly con tribution rate

provides a $1.00 monthly benefit.

Appropriate Unit Contribution

Rate is explained on page 11.

Benefit group: Each Employer

is assigned a Benefit Group that

will be used to determine the

Appropriate Unit Contribution

Rate for benefits earned under

the Future Service Plan.

contribution date: The first

day of the month for which any

Employer is required to make

a Contribution on your behalf

under the Future Service Plan.

covered employment:

Employment with an Employer

after June 30, 1984, for which

contributions are required to be

paid to the Future Service Plan

on the Employee’s behalf under

a collective bargaining agree-

ment with a Local Union or a

Participation Agreement with

the Trustees.

employee: A person employed

by an Employer participating

in the Future Service Plan and

on whose behalf the Employer

is required to contribute to the

Future Service Plan.

employer: An Employer

accepted by the Trustees for

participation under the Future

Service Plan that contributes to

the Future Service Plan.

eriSa: The Employee Retirement

Income Security Act of 1974, as

amended. This is a federal law that

regulates pension plans such as the

National Pension Fund.

fund office: The Trustees

employ a firm specializing in the

administration of pension plans,

like the Future Service Plan, to

maintain necessary records and

to process benefits. See page 55

for more information about the

Fund Office. The Fund Office is

also known as the Fund Admin-

istrative Manager.

future Service pension cred-

it: The Pension Credit earned

due to work performed for which

an Employer is required to make

contributions to the Future Ser-

vice Plan. See page 9 for explana-

tion of Minimum Benefit.

future Service plan: The

United Food & Commercial

Workers International Union-

Industry Pension Fund Future

Service Pension Plan (Future

Service Plan) described in this

booklet for benefits earned on or

after July 1, 1984.

Hours of Service: Each hour of

work for which an Employee is

paid or entitled to payment by an

Employer, including certain hours

of back pay. Hours of work for

an Employer outside of Covered

Employment while the Employer

is contributing to the Future Ser-

vice Plan can be counted as Hours

of Service if such Covered and

non-Covered Employment is not

interrupted by a quit, discharge,

or retirement.

local union: A Local Union

affiliated with the United Food

& Commercial Workers Inter-

national Union that has been

accepted as a participating Local

Union in the Future Service Plan

normal retirement date:

Normal Retirement Date is the

later of:

3

throughout this booklet, there are certain words and phrases that are used frequently and that you should know. Several of these words and phrases are defined below.

WordS WitH Special meaningS

n The date the Participant

attains age 65; or

n The Participant’s fifth anni-

versary as a Participant in

the Plan. Years preceding a

Permanent Break in Service

are disregarded in determin-

ing when participation com-

menced.

one-year Break in Service:

A Participant experiences a

One-Year Break in Service if,

before qualifying for a vested

benefit, he or she does not com-

plete at least 435 Hours of Ser-

vice in a Plan Year.

participant: An Employee who

meets the requirements for par-

ticipation under the Future Ser-

vice Plan as described on page 5.

participating plan: A quali-

fied pension plan that adopts the

Future Service Plan to provide

Future Service benefits and has

been accepted and has executed

the documents deemed appro-

priate by the Trustees for par-

ticipation in the Future Service

Plan. Some Participating Plans

have merged into the Future

Service Plan; others simply

adopted the Future Service Plan.

Appendix A (page 61) identifies

these Participating Plans.

pension credit: Service cred-

ited to a Participant under

the Future Service Plan or the

Prior Plan used to determine

the amount of a Participant’s

benefit.

permanent Break in Service:

A Permanent Break in Service

cancels all prior Pension Credit

and Vesting Service. The events

that will cause a Permanent

Break in Service are described

on page 12.

plan year: The 12-month peri-

od beginning July 1 and ending

June 30. All Pension Credit and

years of Vesting Service are cal-

culated based on the Plan Year.

prior plan: The United Food &

Commercial Workers Interna-

tional Union-Industry Pension

Plan in effect on or before June

30, 1984.

trustees: The Board of Trust-

ees of the United Food & Com-

mercial Workers International

Union-Industry Pension Fund.

union: The United Food &

Commercial Workers Interna-

tional Union.

unit Benefit value: The Unit

Benefit Value is the monthly

pension benefit payable as a

Single Life Annuity that the Par-

ticipant earned in a Plan Year.

The Unit Benefit Value is deter-

mined by dividing the contribu-

tion rate by the Appropri ate

Unit Contribution Rate and then

rounding to the nearest $0.25.

vesting Service: A Partici-

pant’s service under the Future

Service Plan, the Prior Plan, or a

Participating Plan that is used to

determine eligibility for a benefit

under the Future Service Plan.

4

participation

When participation Begins

On or After July 1, 1984

You will become a Participant on the first day of

the month following the later of the:

n Date your Employer is required to contribute

on your behalf to the Future Service Plan; or

n The first day of the month following your comple-

tion of 870 Hours of Service with an Employer

in your first 12-consecutive month period of

employment or in any Plan Year after the com-

mencement of your Covered Employment.

Participants in the Prior Plan or Participating Plan

If you are a Participant in the Prior Plan or a Par-

ticipating Plan and have contributions made to the

Future Service Plan without previously experienc-

ing a One-Year Break in Service, you will become

a Participant on the date your Employer is

required to contribute to the Future Service Plan

on your behalf. However, if you are a Participant

under the Prior Plan or a Participating Plan and

had a One-Year Break in Service before having

contributions made to the Future Service Plan, you

will become a Participant based on the provisions

described in the One-Year Break in Service section

or Reinstatement of Participation section.

interruption of participation

If you are not vested in a benefit (see page 7), you

are not a Participant during:

n A period while you are not working for an

Employer;

n A Plan Year in which you do not complete at

least 435 Hours of Service before having earned

a vested benefit under the Future Service Plan

(you incur a One-Year Break in Service); or

n The period that you work in a position for an

Employer for which no contributions are required

to be paid to the Future Service Plan under the

terms of a collective bargaining agreement or a

participation agreement with the Trustees.

reinstatement of participation

No Break in Service

If you resume Covered Employment after your

participation under the Future Service Plan has

been interrupted, and have not incurred a One-

Year Break in Service under the Future Service

Plan, you will again become a Participant as of the

first day of the month in which your Employer is

required to contribute to the Future Service Plan

on your behalf.

One-Year Break in Service

If you resume Covered Employment after incurring a

One-Year Break in Service under the Future Service

Plan, you will again become a Participant in the Future

Service Plan if the following conditions are met:

n You have not incurred a Permanent Break in

Service under the Future Service Plan before

becoming vested; and

n Your Employer’s contribution is for service

within a 12-consecutive month period in which

you complete at least 435 Hours of Service.

the requirements for participation must be met before you can receive any credit toward a benefit from the Future Service Plan. No Future Service Pension Credit can be earned until you become a Participant.

5

Your participation will be reinstated effective as of

the first day of the 12-month period during which

you completed 435 hours for which your Employer

was required to contribute to the Future Service

Plan on your behalf.

Permanent Break in Service

If you experience a Permanent Break in Service

under the Future Service Plan, then you must re-

qualify under the rules for initial participation for

new Employees described in When Participation Begins on page 5. See page 12 for a definition of

Permanent Break in Service.

Minimum Participation

Beginning July 1, 1995, the Trustees established a

minimum benefit for any Employee working with

an Employer in a category of employment covered

by the Employer’s collective bargaining agree-

ments requiring contri butions to the National Pen-

sion Fund, for which the Employee does not earn

Pension Credit under the National Pension Fund

or another pension plan for the same period, or

receive an appropriate matching or other employer

contribution to a defined contribution plan. In

addition, to be eligible for a minimum benefit, the

Employee must meet the minimum age (age 21)

and service requirement (i.e., a year of ser vice,

which is a 12-month period of employment in which

the Employee earns 870 or more Hours of Service,

measured by the first 12 months of employ ment

or anniversaries thereof) of the National Pen sion

Fund. On or after July 1, 1995, if you are such an

Employee, you can earn a minimum benefit for

each subsequent Plan Year you accumulate at least

870 Hours of Service that is not followed by a Per-

manent Break in Service. The benefit will be deter-

mined as if either the contribution rate on your

behalf was $20 per month or, if lower, the lowest

negotiated contribution rate for your geographic

area as of November 30, 1999. In order to receive a

pension, you must meet the Vesting rules described

on page 7.

6

example

John begins working with Employer X on

July 1, 2011 and averages 25 Hours of Ser-

vice per week throughout 2011. He is 22

years old. The collective bargaining agree-

ment with Local Union Y covering John

only requires monthly contributions to the

National Pension Fund for any Employee

working at least 30 hours per week in Cov-

ered Employment. As a result, no contri-

butions are made for John. John does not

participate under another pension plan

with Employer X. John is eligible to begin

participating in the Future Service Plan

on July 1, 2012 and will accrue a minimum

benefit for the year beginning July 1, 2012,

provided he earns at least 870 Hours of

Service during that year.

Becoming a vested participant

When you are a vested Participant, you have

earned a non-forfeitable right to a pension under

the Future Service Plan that cannot be taken away

from you. There are two different ways to become

a vested Participant under the Future Service Plan:

n You must have at least five years of Vesting

Service; or

n You must terminate Covered Employment on

or after your Normal Retirement Date.

earning years of vesting Service

You earn a year of Vesting Service during a Plan

Year if you:

n Are at least age 18; and

n Complete 870 or more Hours of Service during

a period of employment:

� For an Employer that occurs while the

Employer is participating in the Future Ser-

vice Plan, the Prior Plan, or a merged Partici-

pating Plan; or

� In non-covered service with the same

Employer due to a transfer from Covered

Employment where there is no intervening

quit, discharge, or retirement.

Your Hours of Service are not counted for vesting

purposes if those Hours of Service were earned:

n In employment during a period when your

Employer was not participating in the Future

Service Plan, the Prior Plan, or a merged Par-

ticipating Plan; or

n Before a Permanent Break in Service.

You will also earn Vesting Service for periods

spent in military service to the extent required

by federal law, as described on page 9.

If you are an Employee of an Employer that com-

mences participation in the Future Service Plan

on and after July 1, 1997 under one of the existing

Appropriate Unit Contribution Rate groups (listed

in Appendix C starting on page 64; see page 11 for

an explanation of Appropriate Unit Contribution

Rates) and you are employed in Covered Employ-

ment on the date the Employer commences partici-

pation, you can receive one year of past Vesting

Service for periods of service with an Employer

before the Employer’s participation in the Fund

for each year of Vesting Service you earn after the

Employer’s participation in the Fund. However, if

the Employer withdraws and ceases to contribute

within five years of its initial participation date in

the Fund, all Vesting Service before the Employer’s

participation date credited under this “one for one”

special rule is cancelled, except for:

n Pensioners who have already commenced

receiving benefits; or

n The beneficiaries of such pensioners.

counting Service under the prior plan or a participating plan

Years of Vesting Service under the Prior Plan or

a merged Participating Plan will be considered as

years of Vesting Service under the Future Service

Plan as long as the service was not followed by a

Permanent Break in Service.

pension distribution vesting requirements

Vesting is a right to receive some form of benefit

when you leave Covered Employment. If you are

7

yearS of veSting Service

8

vested, you cannot lose your right to your accrued

benefit.

counting Service under

a reciprocity agreement

In determining your Vesting Service, the Future

Service Plan will also count contributory service in

accordance with the terms of a Reciprocity Agree-

ment with another plan, provided that the service

has not been cancelled by a Permanent Break in

Service before the effective date of the Reciprocity

Agreement. However, Future Service Pension Credit

earned after June 30, 1984 that would otherwise be

lost due to a Permanent Break in Service can be

reinstated by credit recognized under the terms of a

Reciprocity Agreement, provided you initially receive

payment of your benefit after August 23, 1995 or, if

later, the date of the Reciprocity Agreement. For

more information on Reciprocity Agreements, see

page 15. Vesting Service will also be recognized for

periods spent in military service to the extent required

by federal law, as described on page 9.

9

earning pension credit

Future Service Pension Credit can be earned only

in full month units. No more than 12 months of

Future Service Pension Credit may be earned in

any Plan Year. Future Service Pension Credit

earned in one Plan Year cannot be carried over to

another Plan Year. Depending on how contribu-

tions are required to be paid on your behalf under

the collective bargaining agreement covering your

Employment, you will earn Future Service Pension

Credit as follows:

n monthly contributions: You will receive one

month of Future Service Pension Credit for

each month an Employer is required to make

contributions to the Future Service Plan on

your behalf.

n Hourly contributions: You will receive one

month of Future Service Pension Credit for

each 170 hours of Covered Employment in a

Plan Year for which an Employer is required to

make contributions to the Future Service Plan

on your behalf, not to exceed 12 months. All

hours of Covered Employment during the Plan

Year are counted.

n Weekly contributions: You will be credited

with 40 hours for each required weekly contri-

bution made on your behalf. All hours of Cov-

ered Employment during the Plan Year are

counted. You will receive one month of Future

Service Pension Credit for each 170 hours of

Covered Employment not to exceed 12 months

during a Plan Year.

maximum pension credit

There is no maximum Pension Credit that can

be used to calculate a benefit under the Future

Service Plan and the Prior Plan combined if you

begin receiving a benefit from the Plan on or after

Janu ary 1, 2001. However, a 35-year maximum

applies to Pension Credit earned under the Prior

Plan (before July 1, 1984). For Annuity Start Dates

before January 1, 2001, a 45-year maximum Pen-

sion Credit limit applied.

earning vesting Service and pension credit during military Service

If you stop working in Covered Employment to

enter military service, you will receive Vesting Ser-

vice and Future Service Pension Credit during that

period in accordance with federal law.

Specifically, the Uniformed Services Employ-

ment and Reemployment Rights Act (USERRA)

provides reemployment rights and benefits and

protection from discrimination to individuals who

performed voluntary or involuntary military ser-

vice in any branch of the uniformed services of

the United States. If you satisfy the conditions for

protection under USERRA, your period of mil itary

service will be treated as Hours of Service for all

purposes under the Plan, including eligibility, vest-

ing, and Pension Credit.

Generally, to be entitled to reemployment rights

and pension benefits under USERRA, you must:

n Be absent from Covered Employment because

of your military service;

future Service Pension Credit determines the amount of your pension benefit under the Future Service Plan. Only Pension Credit earned after June 30, 1984 is recognized under the Future Service Plan.

penSion credit

10

n Give advance notice of your military service to

your Employer, unless notice is prevented by

military necessity or it is otherwise impossible or

unrea sonable to give under the circumstances;

n Be absent due to military service for five years or

less, unless extended service is required as part of

your initial period of obligation or your service is

involuntarily extended, such as during a war;

n Receive an honorable discharge or satisfactorily

complete military service; and

n Re-apply for a job in Covered Employment

within the required time period, as explained

below.

For periods of military service:

n Of less than 31 days or an absence due to a fit-

ness exam, you must report back to Covered

Employment no later than the first regularly

scheduled work period on the first day, after an

eight-hour break, and after time for travel back

home;

n From 31 days to 180 days, you must reapply for

employment within 14 days after military ser-

vice; or

n Over 180 days, you must reapply within 90 days

after completion of military service.

These limits may be extended under the law in

particular circumstances.

death or permanent disability While in military Service

On or after January 1, 2007, if you are

unavailable for reemployment at the times

prescribed by USERRA above due to death

or Total and Permanent Disability while in

military service, the Plan will treat your ser-

vice as if you were reemployed on the day

before your death or disability and then ter-

minated Covered Employment on the date of

your death or disability. This means that you

may receive Hours of Service and Pension

Credit for the period of your military service,

in accordance with law.

11

determining the appropriate unit contribution rate

The Appropriate Unit Contribution Rate is deter-

mined separately for each Benefit Group by an

actuarial calculation based upon the age and ser-

vice of the Employees in the industry in a specific

geographic area. The groups initially participating

under the Future Service Plan were broken down

into 22 geographic areas with a separate Appropri-

ate Unit Contribution Rate for Participants work-

ing in the retail industry, packing industry, and

other industries in each geographic area. In 1994,

the packing and other industries were combined

into one industry across all geographic areas. The

classifications covered by the Future Service Plan

are called Benefit Groups and can be changed by

the Trustees from time to time.

Based on the criteria established by the Trustees, a

group accepted under the Future Service Plan after

June 30, 1984 may be included under one of the

existing Benefit Group Appropriate Unit Contribu-

tion Rates. If it does not fall within one of the exist-

ing groups, it may be given a special Appropriate

Unit Contribution Rate established for that group

based upon its own characteristics.

For Covered Employment between September 1,

2005 and August 31, 2009, the Appropriate Unit

Contribution Rate may be different for Employees

who were Participants before September 1, 2005

versus those who first became Participants on or

after September 1, 2005, for Covered Employment

on or after that date. Effective September 1, 2009,

the Appropriate Unit Contribution Rates were

changed to be the same for all Participants within a

Benefit Group regardless of participation date.

Listings of the Local Unions within each of the geo-

graphic areas and the Appropriate Unit Contribu-

tion Rates for each Benefit Group before and after

September 1, 2005 are shown in Appendix C. If you

would like the Appropriate Unit Contribution Rate

for your Benefit Group, you should either review

Appendix C or contact the Fund Office.

The Appropriate Unit Contribution Rates are

reviewed periodically and have been changed over

the years. Prior benefits to which you may be enti-

tled are unaffected by future changes to the Appro-

priate Unit Contribution Rate.

understanding the concept of the Appropriate Unit Contribution Rates is important in deter-mining your benefit under the Future Service Plan. The Appropriate Unit Contribution Rate is the hourly, weekly, or monthly contribution rate providing each $1.00 in monthly benefits.

example

If the monthly contribution paid on your

behalf is $152.00 and your Benefit Group

has an Appropriate Unit Contribution

Rate of $3.39, then the Unit Benefit

Value earned for a year of Future Ser-

vice Pension Credit at that rate is $44.75

in monthly benefits ($152.00 ÷ $3.39 =

$44.84, rounded to the nearest $0.25).

appropriate unit contriBution rateS (aucrs)

12

The Future Service Plan is designed to provide

retirement benefits to Participants who have many

years of work covered by the Future Service Plan.

If you are absent from Covered Employment for

an extended period before becoming a vested Par-

ticipant, your years of Vesting Service and Pension

Credit may be cancelled for the period before this

absence. These absences are called Breaks in Ser-

vice and there are two different types:

n One-Year Break in Service; and

n Permanent Break in Service.

Once you are vested under the Plan, you cannot

incur a Permanent Break in Service.

one-year Break in Service

A One-Year Break in Service is temporary and can

be repaired. A One-Year Break in Service occurs

in any Plan Year in which you complete less than

435 Hours of Service. If you have a One-Year

Break in Service before becoming vested, you are

no longer a Participant under the Future Service

Plan and your Pension Credit and years of Vesting

Service are temporarily lost.

To repair a One-Year Break in Service and restore

your Pension Credit and years of Vesting Service,

you must become a Participant again before incur-

ring a Permanent Break in Service by completing

435 or more Hours of Service in a 12-consecutive

month period.

permanent Break in Service

If you are not vested, the definition of a Permanent

Break in Service is different depending on when

the Break in Service occurred.

For years of Vesting Service and Pension Credit

that were not cancelled before July 1, 1987, you

have a Permanent Break in Service if the number

of your consecutive One-Year Breaks in Service

exceeds the greater of five years or the number of

your years of Vesting Service.

If you incur a Permanent Break in Service, all of

your Vesting Service and Pension Credit will be

cancelled.

loSS of credited Service

13

example 1

Years of Plan Hours Vesting One-Year Years of Service Service Break

Year 1 1,100 1 0

Year 2 1,400 1 0

Year 3 50 0 1

Year 4 110 0 1

Year 5 90 0 1

Year 6 80 0 1

Year 7 40 0 1

Total 2 5

Carla had two years of Vesting Service

and five-consecutive One-Year Breaks in

Service. Carla has a Permanent Break in

Service at the end of Year 7 that cancels

all Pension Credit and years of Vesting

Service.

If Carla returned to Covered Employ-

ment in Year 7, completed at least 435

Hours of Service, and then had another

One-Year Break in Service in Year 8, her

work record would look like Example 2.

example 2

Years of Plan Hours Vesting One-Year Years of Service Service Break

Year 1 1,100 1 0

Year 2 1,400 1 0

Year 3 50 0 1

Year 4 110 0 1

Year 5 90 0 1

Year 6 80 0 1

Year 7 900 1 0

Year 8 260 0 1

Total 3 1

Under this scenario, Carla’s reinstated

participation, Pension Credit, and years of

Vesting Service were reinstated by return-

ing to Covered Employment and earning

more than 435 hours in Year 7. Because

the number of consecutive One-Year

Breaks in Service as of Year 7 was less than

five, Carla was able to repair the One-Year

Breaks in Service and restore the Pension

Credit and years of Vesting Service. The

total number of One-Year Breaks in Ser-

vice is shown as one because the breaks in

Years 3, 4, 5, and 6 were repaired by the

900 hours earned in Year 7. Carla will not

have a Permanent Break in Service until

the end of Year 12, if no additional Hours

of Service are earned. This is because the

five One-Year Breaks in Service must be

consecutive before there can be a Perma-

nent Break in Service.

Permanent Break in Service Examples

The following examples assume Covered Employment on or after July 1, 1987 and show different scenarios

of when a Permanent Break in Service has occurred.

14

Special rule for participants in the prior plan or a participating plan

If you had at least five years of Vesting Service

credited under the Prior Plan or a Participating

Plan, you will not have a Permanent Break in Ser-

vice under the Future Service Plan until you incur a

Permanent Break in Service under the rules of the

Prior Plan or Participating Plan or under the rules

of the Future Service Plan, whichever happens

later. In addition, Vesting Service accumulated

under the rules of the Prior Plan or merged Par-

ticipating Plan counts as Vesting Service under the

Future Service Plan.

Special rule for maternity/paternity absence

You will not have a One-Year Break in Service if

you are absent from work because of a maternity or

paternity leave. The Plan will credit hours that you

would have accrued had you not gone on maternity

or paternity leave, up to a maximum of 435 hours.

You may be required to provide documentation

to confirm the purpose and number of days of

the absence. A maternity or paternity leave is an

absence from work due to pregnancy, birth of a

child, adoption (including placement for adoption)

of a child, or care of a child after birth, adoption, or

placement for adoption. This special rule applies to

maternity/paternity absences that begin after June

30, 1987.

Special rule for leave of absence

under family and medical leave act

Effective August 1, 1993, any leave of absence

granted by your Employer (up to 12 weeks) under

the Family and Medical Leave Act will not count

toward a Break in Service.

Special rule for participants

covered by reciprocity agreement

In determining whether you have a Break in

Service, the Future Service Plan will count ser-

vice under another plan with which the Future

Service Plan has a Reciprocity Agreement. To

be counted, the service under the Future Service

Plan must not have been cancelled by a Perma-

nent Break in Ser vice before July 1, 1984. This is

discussed further under the section titled Counting Service Under a Reciprocity Agreement on page 8.

15

The Future Service Plan has entered into Reciproc-

ity Agreements with other UFCW local plans. Each

plan signing a Reciprocity Agreement agrees that

contributory service earned under the rules of the

other plan may be counted for purposes of vest-

ing. For a list of these plans as of July 1, 2013, see

Appendix B (page 62).

rules governing reciprocity agreements

n Future Service Pension Credit earned after

June 30, 1984 that would otherwise be lost due

to a Permanent Break in Service can be rein-

stated by credit recognized under the terms of

a Reciprocity Agreement, provided your initial

Annuity Starting Date is after August 23, 1995

or, if later, the effective date of the Reciprocity

Agreement.

n Reciprocity only relates to eligibility and does

not increase the amount of pension payable by

a plan. For instance, in the previous example,

Kyle only had three years of Future Service

Pension Credit; therefore, Kyle would only

receive a pension from the Future Service Plan

based upon three years of Future Service Pen-

sion Credit.

n The reciprocity provision does not amend a

plan’s eligibility rules. It only expands the ser-

vice that will be counted under the eligibility

rules.

n Reciprocity Agreements do not apply to employ-

ees whose employment has been divided between

plans due to the transfer of an employer or bar-

gaining unit from one plan to another plan.

Because the rules regarding reciprocity are complex,

please contact the Fund Office if you would like

more detailed information about the Future Service

Plan benefits under a Reciprocity Agreement.

if, because of job changes or transfers, you have worked for many years under the jurisdiction of different plans, you may not qualify for a pension if you do not have sufficient service under the jurisdiction of any one plan. To remedy this, plans sometimes enter into agreements to recog-nize service with each other for purposes of vesting. These are called Reciprocity Agreements.

example

Kyle worked in employment covered by

a UFCW local plan and earned two years

of Vesting Service with that plan. He then

transfers (without experiencing a Permanent

Break in Service) to a job covered under the

Future Service Plan and earns three years

of Vesting Service and Future Service Pen-

sion Credit under the Future Service Plan.

There is a Reciprocity Agreement between

the Future Service Plan and the UFCW

local plan that was in effect before the date

Kyle transferred jobs. Assuming Kyle quali-

fies under the five-year vesting provision of

the Future Service Plan, Kyle is vested in

his benefit under the Future Service Plan

because the two earlier years of contributory

service with the other UFCW local plan will

count for purposes of Vesting Service under

the Future Service Plan.

reciprocity agreementS

16

eligibility

You will be eligible for a Normal Retirement Pen-

sion payable at your Normal Retirement Date

(gen erally on or after age 65) if you become a

vested Participant under either of the provisions

described on page 7.

calculation of Benefit

The amount of your Normal Retirement Pension

under the Future Service Plan is the sum of your Unit

Benefit Values earned for each Plan Year of participa-

tion under the Future Service Plan. If you have earned

a benefit under the Prior Plan, the benefit under both

the Future Service Plan and the Prior Plan will be

combined, subject to the maximum Prior Plan Pension

Credit limitations, described on page 1.

Unit Benefit Value

For each year of Pension Credit earned under the

Future Service Plan, there will be a Unit Benefit

Value. The Unit Benefit Value is the monthly

pen sion benefit earned in a Plan Year, based on

the Employer contribution required to be made

on your behalf and the AUCR for your Benefit

Group. For some periods, separate AUCRs apply

for those Participants who began participating in

the Plan before September 1, 2005 and those first

participating on or after September 1, 2005. See

Appendix C for a listing of AUCRs by time period

and group.

A Participant’s Unit Benefit Value earned on or

after September 1, 2009 may be impacted by the

Supplemental Contributions explained below. In

addition, Employees who first become Participants

on or after September 1, 2009 will have reduced

Unit Benefit Values during their first 10 years as

explained on page 17.

Supplemental Contributions

You will have one of two possible Supplemental

Contribution adjustments made to your Unit Bene-

fit Value for benefit accruals after August 31, 2009,

which are described below.

example

Joe, who was a Plan Participant before

September 1, 2005, belongs to a non-closed

Benefit Group that has an AUCR of $1.85

during the period from July 1, 1997 to March

31, 2002, an AUCR of $1.67 for the period

April 1, 2002 to August 31, 2005, an AUCR

of $1.80 during the period from September 1,

2005 to August 31, 2007, an AUCR of $1.85

for the period from September 1, 2007 to

August 31, 2009, and an AUCR of $2.34 for

the period after September 1, 2009. Assum-

ing his Employer contributes $150.00 per

month during this entire period, his Unit

Benefit Value for each period would be:

July 1, 1997 to March 31, 2002$150.00 ÷ $1.85 = $81.08, rounded to $81.00

April 1, 2002 to August 31, 2005$150.00 ÷ $1.67 = $89.82, rounded to $89.75

September 1, 2005 to August 31, 2007$150.00 ÷ $1.80 = $83.33, rounded to $83.25

September 1, 2007 to August 31, 2009

$150.00 ÷ $1.85 = $81.08, rounded to $81.00

On and after September 1, 2009

$150.00 X 10% = $15.00

$150.00 - $15.00 = $135.00

$135.00 ÷ $2.34 = $57.69, rounded to $57.75

normal retirement penSion

17

The 10% Supplemental Contribution, which affects

all bargaining groups and is effective the earlier

of (1) September 1, 2012 or (2) the first day of

the month following the first Collective Bargain-

ing Agreement (CBA) expiration date on or after

August 31, 2009. This 10% Supplemental Contribu-

tion is used to improve the funding of the National

Pension Fund and is not used to determine benefit

accruals. The 10% Supplemental Contribution is

deducted from the Employer contribution and the

remainder is then divided by the AUCR to arrive

at the new Unit Benefit Value.

The 30% Supplemental Contribution affects only

those participants in closed groups (See Appendix

D for a list). The effective date and the process of

determining the Unit Benefit Value is the same as

for the 10% Supplemental Contribution.

Reduced Benefits for New Participants

If your first date of participation in the National

Pension Fund is on or after September 1, 2009, the

benefit accrual rate will be reduced for your first 10

years of participation as follows:

n For the first five years (until the fifth anniver-

sary of your first Contribution Date), your Unit

Benefit Value will be 75% of the lowest Unit

Benefit Value applied to Participants in the

same classification (such as full-time or part-

time) covered under the same CBA with a par-

ticipation date before September 1, 2009.

n For the second five years (until the tenth anni-

versary of your first Contribution Date), your

Unit Benefit Value will be 87.5% of the low-

est Unit Benefit Value applied to Participants

in the same classification (such as full-time or

part-time) covered under the same CBA with a

participation date before September 1, 2009.

Other CBA Exceptions

For contributions required by CBAs negotiated

before July 1, 1984, the maximum Unit Benefit

Value is $35 per year of Pension Credit. Generally,

for new CBAs negotiated after July 1, 1984, there is

no maximum Unit Benefit Value. However, CBAs

negotiated after June 30, 1984, which are designed

to match an industry or area-wide provision negoti-

ated by other groups before July 1, 1984, are sub-

ject to the $35 maximum Unit Benefit Value.

If the actual contributions for a Participant cov-

ered by a CBA that is subject to this $35 maxi-

mum exceed the amount necessary to provide

the maximum $35 Unit Benefit Value, the excess

A closed group is a bargaining unit

that does not provide coverage for new

Employees under the National Pension

Fund after a certain hire date.

example for neW participantS

Initial Participation Date: July 2, 2012

Contribution rate for all employees under

the CBA: $111

Contribution rate used in benefit calcula-

tions: $100 ($111 minus 10% Supplemental

Contribution)

AUCR: $2.50 (Assuming same AUCR all

ten years)

Unit Benefit Value for first five years (from

7/2/2012 to 7/2/2017): $30 (75% of $100

divided by $2.50)

Unit Benefit Value for years 6 - 10 (7/3/2017

to 7/2/2022): $35 (87.5% of $100 divided by

$2.50)

Unit Benefit Value after 10 years: $40 (100%

of $100 divided by $2.50)

18

amount will be used to provide an additional pay-

ment at retirement, called the “Special Purpose

Benefit”. Many groups are not eligible for this ben-

efit, so you should contact the Fund Office if you

would like more detailed information regarding

whether this benefit is available to you.

If you earn less than a full year of Pension Credit

or have different contribution rates during the

Plan Year, adjustments will be made as described

below.

additional information

n The Unit Benefit Value for a Plan Year will be

rounded up or down to the nearest $0.25.

n If you earn less than a full year (12 months)

of Future Service Pension Credit in one Plan

Year, your Unit Benefit Value for that year

will be reduced proportionately. The partial

year of credit will be the fraction represented

by the number of months of credit earned

divided by 12.

n If you have more than one contribution rate

paid on your behalf in a Plan Year, the Unit

Benefit Value for the Plan Year will be the sum

of those portions of Unit Benefit Values earned

during the year based on the Pension Credit

earned at the different contribution rates.

n The maximum years of Pension Credit under

the Prior Plan is limited to 35 years. If you have

accumulated more than the maximum years of

Pension Credit based on your retirement date,

then the 35 years of Pension Credit that pro-

duces the highest benefit will be used.

n From time to time, the Trustees will evaluate

the amount of contributions necessary to sup-

port the benefit payable to each Benefit Group.

The Trustees may change a Benefit Group’s

AUCR periodically and recently have changed

them every two years. If the Trustees increase

the AUCR and your Employer does not pay a

revised contribution rate necessary to maintain

the same Unit Benefit Value by the effective date

of the increased AUCR, your benefits will be

reduced for Future Service Pension Credit earned

in the future under the new AUCR. Conversely,

your benefit will increase for contributions

required to be made after the Trustees reduce

the AUCR for your Benefit Group, even if your

Employer’s contribution rate remains the same.

example

Mike’s Unit Benefit Value for a full

year of Future Service Pension Credit is

$68.75. If Mike worked and earned only

five months (5/12 year or 0.417) of Future

Service Pension Credit, his Unit Benefit

Value for that Plan Year would be $28.67

($68.75 x 0.417).

example

During the first six months of the plan

year, the monthly contribution paid on

Bob’s behalf was $95.50 and increased to

$105.80 for the second six months. Bob’s

AUCR is $1.85. For the first six months,

Bob will be credited with a monthly ben-

efit of $25.75 (one-half of $51.50, which is

Bob’s annual Unit Benefit Value based

on the $95.50 contribution rate). For the

second six months, Bob will be credited

with $28.63 (one-half of $57.25, which is

Bob’s annual Unit Benefit Value based

on the $105.80 contribution rate). Bob’s

unit benefit value for that Plan Year

would be $54.38 ($25.75 + $28.63).

19

n If you terminate Covered Employment after

June 30, 1999, and were required to have a con-

tribution made on your behalf for the month

of June 1999, the Unit Benefit Value for each

Future Service Pension Credit earned in Plan

Years from July 1, 1984 through June 30, 1992,

is increased by 20%.

commencement of pension after normal retirement date

If you have retired, but choose to delay receiving

your benefit until after your Normal Retirement

Date, and you do not work in Prohibited Employ-

ment after your Normal Retirement Date, you are

eligible to receive an adjusted benefit to take into

account the later commencement of your benefit,

or you may elect to receive your benefit retroac-

tively to your Normal Retirement Date.

If you retire and then return to Covered Employ-

ment, you are required to notify the Fund Office.

Please review the section entitled Notifying the Plan of Work After Retirement on page 50 for important

information regarding the consequences of return-

ing to Covered Employment after retiring.

Actuarial Adjustment

If your pension begins after your Normal Retire-

ment Date, you are eligible to have your benefit

actuarially adjusted for periods prior to the com-

mencement of your benefit in which you were

not working in Prohibited Employment. Your

monthly benefit will be an amount equal to your

accrued benefit at your Normal Retirement Date

increased by 1% for each complete calendar

month from age 65 to age 70 and 1.5% for each

complete calendar month after age 70 in which

your pension was not suspended due to working

in Prohibited Employment. If you continue to

work in Covered Employment without retiring

after your Normal Retirement Date, you will not

be eligible to receive a benefit until you retire and

are no longer working in Prohibited Employment,

as described on page 51.

When you do retire, your benefit will be increased

to reflect the additional Pension Credit that you

earned after your Normal Retirement Date, but

you will not receive an actuarial adjustment for

those months in which you worked in Prohibited

Employment.

Retroactive Payment

If your pension begins after your Normal Retire-

ment Date and you are not working in Prohibited

Employment, instead of receiving an actuarially

adjusted benefit for periods you were not work-

ing in Prohibited Employment, you may elect to

receive your accrued benefit determined as of a

“retroactive annuity starting date.” This means that

for periods you were not working in Prohibited

Employment, you will receive a lump sum for the

pension payments that you would have received

if you had retired and applied for a pension as of

the later of your Normal Retirement Date or the

end of your Prohibited Employment, plus pay-

ment of interest for each complete cal endar month

your pension payments were delayed. The interest

will be based on the short-term investment fund

(known as the STIF) rate used by the Fund’s custo-

dial bank, as deter mined on the first day of the Plan

Year in which your pension payment is made.

To receive your pension based on a retroactive

annuity starting date, your spouse must consent to

this election if you are married when you make the

election.

20

eligibility

The Future Service Plan has two different eligibility

rules for an Early Retirement Pension.

rule 1: You will be eligible for an Early Retire-

ment Pension if you:

n Have at least 870 hours of Vesting Service after

June 30, 1988, and are in Covered Employment

after June 30, 1989;

n Have five or more years of Vesting Service;

n Have accumulated at least two years of Future

Service Pension Credit; and

n You retire:

� On or after age 62; or

� On or after age 55 and before age 62 and

have at least 435 Hours of Service in the Plan

Year immediately before your benefit com-

mencement date.

rule 2: You will be eligible for an Early Retire-

ment Pension if you:

n Have 10 or more years of Vesting Service;

n Have earned at least two years of Future Ser-

vice Pension Credit; and

n Are at least age 55 at the time of your benefit

commencement date.

The two years of Future Service Pension Credit

requirement referred to above includes Future

Service Pension Credit you earned under the

Prior Plan or a merged Participating Plan that

has not been lost due to a Permanent Break in

Service.

Benefit calculation

If you are eligible for an Early Retirement Pension,

you may apply to receive it as of the later of:

n When you reach age 55 (you must also stop

working in Covered Employment before you

can receive your pension); or

n When you terminate Prohibited Employment

(prior to reaching age 65)

The amount of the Early Retirement Pension is cal-

culated in the same way as the Normal Retirement

Pension but it is reduced to take into account that you

are retiring at a younger age and benefits will be paid

out for a longer period. The amount of the reduction

depends on when you became a Plan Participant,

when you left Covered Employment, if you were age

60 or older on August 31, 2009, and when benefits

were earned. The following sections describe how the

Early Retirement Pension is calculated. You can also

reference the chart(s) that show the Early Retirement

reduction factors that apply to your benefit. All Early

Retirement Pension charts and examples assume pay-

ment in the Single Life Annuity form (see page 31).

Early Retirement Benefit Calculations In Effect On August 31, 2009

For Service Before September 1, 2005

There is no actuarial reduction to your benefit for age

if you meet the eligibility requirements for an Early

Retirement Pension and begin your Early Retire-

ment Pension after you reach age 62. However, if you

begin your Early Retirement Pension before age 62,

the amount of your benefit is reduced for each full

month you are younger than age 62 when your pen-

sion payments begin. The amount of the reduction

depends on when the benefits were earned. If you left

Covered Employment after September 30, 1999 and

had a contribution required to be made on your

early retirement penSion

21

behalf for June 1998, the amount of the reduction for

benefits earned before September 1, 2005 is:

n 0.35% for each month you are younger than age

62 but age 57 or older; and

n 0.5% for each month you are younger than age

57 but age 55 or older.

Table 1 on page 22 shows the factors based on

exact age in months and years at retirement.

However, if you did not have a contribution

required to be made on your behalf for June 1998

but you earned Future Service Pension Credit

before June 1998, these reductions will still apply

to your pre-June 1998 service if you work at least

30 consecutive days for an Employer in employ-

ment covered by a Collective Bargaining Agree-

ment after June 1998 before incurring a Permanent

Break in Service and you have a 30-consecutive

day period of separation from employment or self-

employment in any industry over which the Union

has jurisdiction. The 30-day period of separation

from such Employment is not required if your

employment is terminated due to an involuntary lay

off or closure of the facility in which you worked.

If the above reduction does not apply, for benefits

earned before September 1, 2005, the amount of a

benefit payable as a Normal Retirement Pension is

reduced by 0.5% for each month that you are young-

er than age 62 when your pension payments begin.

For Service Between September 1, 2005 And August 31, 2009

If you were a Participant in the National Pen-

sion Fund prior to September 1, 2005, the follow-

ing early retirement reductions will apply for the

period of September 1, 2005 to August 31, 2009 for

benefits earned between those dates.

Retirement Directly From Covered Employment After Attaining Age 55. If you were a Participant in

the National Pension Fund prior to September 1,

2005 and retire with an Early Retirement Benefit

directly from Covered Employment on or after Sep-

tember 1, 2005, the benefits you earned between Sep-

tember 1, 2005 and August 31, 2009 will be subject to

a different early retirement reduction. The following

actuarial reduction factors will apply, based on your

exact age in months and years at retirement:

n 0.8% for each month you are younger than age

62 but are age 57 or older; and

n 0.55% for each month you are younger than age

57 but are age 55 or older.

Table 2 on page 23 shows the factors based on

exact age in months and years at retirement.

Deferred Vested Participants Younger than Age 55. If you were a Participant in the National Pension

Fund prior to September 1, 2005 and you terminate

Covered Employment after August 31, 2005 and

before attaining age 55, the Early Retirement Pen-

sion payable will be the greater of:

n the monthly benefit you earned as of August 31,

2005 using the following actuarial reduction fac-

tors:

� 0.35% for each month you are younger than

age 62 but are age 57 or older;

� 0.5% for each month you are younger than

age 57 but are age 55 or older.

-OR-

n the monthly benefit you earned at termination

of Covered Employment, actuarially adjusted

for early retirement using the factors in Table

3 on page 25 (“Early Retirement Reduction

Factors Based on Actuarial Equivalence to

Age 65.”) That chart shows the amount of the

reduction based on the Participant’s exact age

in months and years at retirement.

For more information, please refer to the section

titled Deferred Vested Pension on page 26.

22

Delayed Retirement After Terminating Covered Employment at Age 55 or Later. If you were a

Participant in the National Pension Fund prior

to September 1, 2005 and you terminate Covered

Employment after August 31, 2005 and after attain-

ing age 55, but you choose not to retire until some

later date, the benefits you earned between Septem-

ber 1, 2005 and August 31, 2009 will be subject to

the actuarial reduction factor in Table 2, based on

your age in months and years at retirement.

The following charts (Tables 1 and 2) show the fac-

tors used to calculate an Early Retirement Pension

for Participants who were Participants in the Plan

before September 1, 2005 and who retire on an Early

Retirement Pension at various years and months of

age; Table 1 is for benefits earned before September

1, 2005 and Table 2 is for benefits earned between

September 1, 2005 and August 31, 2009.

For Retirements On or After September 1, 2009.

If you retire before age 65, your Early Retirement

Pension will be calculated in the same way as a

Normal Retirement Pension and will be reduced,

based on your age on the date of retirement, using

the factors in Table 3 on page 25.

However, if you meet either of the following condi-

tions, your benefit will be calculated as described

below and in the sections that follow:

n If you were born on or before August 31, 1949,

your Early Retirement Pension will be calcu-

lated using the reduction factors in effect on

August 31, 2009 (Tables 1 & 2).

n If you were born on or after September 1, 1949,

your Early Retirement Pension will be calcu-

lated as the greater of your total accrued benefit

as of your date of retirement, as adjusted by the

factors in Table 3, or your accrued benefit as of

August 31, 2009, as adjusted by the factors in

effect on August 31, 2009 (Tables 1 & 2).

monthsyears

61 60 59 58 57 56 55

0

1

2

3

4

5

6

7

8

9

10

11

0.9580 0.9160 0.8740 0.8320 0.7900 0.7300 0.6700

0.9615 0.9195 0.8775 0.8355 0.7935 0.7350 0.6750

0.9650 0.9230 0.8810 0.8390 0.7970 0.7400 0.6800

0.9685 0.9265 0.8845 0.8425 0.8005 0.7450 0.6850

0.9720 0.9300 0.8880 0.8460 0.8040 0.7500 0.6900

0.9755 0.9335 0.8915 0.8495 0.8075 0.7550 0.6950

0.9790 0.9370 0.8950 0.8530 0.8110 0.7600 0.7000

0.9825 0.9405 0.8985 0.8565 0.8145 0.7650 0.7050

0.9860 0.9440 0.9020 0.8600 0.8180 0.7700 0.7100

0.9895 0.9475 0.9055 0.8635 0.8215 0.7750 0.7150

0.9930 0.9510 0.9090 0.8670 0.8250 0.7800 0.7200

0.9965 0.9545 0.9125 0.8705 0.8285 0.7850 0.7250

Table 1: Early Retirement Pension Reduction Factors for Benefits Earned Before September 1, 2005

23

example 1

Harry is 60 years old and is eligible for a Normal Retirement Pension of $1,500.00 per month at age

65: $1,000.00 of which he earned before September 1, 2005, $200.00 of which he earned between

September 1, 2005 and August 31, 2009, and $300 of which he earned after August 31, 2009. Harry

decides to retire at age 60. Harry’s Early Retirement Pension reduction factor, based on actuarial

equivalence to age 65 (Table 3 on page 25) is 0.6110, which provides a monthly benefit of $916.50

(see below). However, since Harry left Covered Employment after age 55, that calculation must be

compared to the amount Harry would have received using the rules in effect and Harry’s accrued

benefit as of August 31, 2009. Using the tables in this section, Harry’s Early Retirement Pension

reduction factor for his benefits earned before September 1, 2005 is 0.9160 and for benefits earned

between September 1, 2005 and August 31, 2009 is 0.8080. Because Harry is age 60 when he retires,

his monthly pension would be calculated as follows:

Benefit based on Actuarial Equivalence to Age 65 factors: $916.50 ($1,500 X 0.611)

Benefit based on leaving Covered Employment after age 55 and rules and accrued benefit as of 8/31/2009:

Earned Earned Before 9/1/05 9/1/05 - 8/31/09

Normal Retirement Pension: $ 1,000.00 $ 200.00

Early Retirement Pension Factor x .9160 x .8080

Early Retirement Pension: $ 916.00 $ 161.60

Total Early Retirement Pension: $ 1,077.60

Harry would receive the higher monthly benefit of $1,077.60.

monthsyears

61 60 59 58 57 56 55

0

1

2

3

4

5

6

7

8

9

10

11

0.9040 0.8080 0.7120 0.6160 0.5200 0.4540 0.3880

0.9120 0.8160 0.7200 0.6240 0.5280 0.4595 0.3935

0.9200 0.8240 0.7280 0.6320 0.5360 0.4650 0.3990

0.9280 0.8320 0.7360 0.6400 0.5440 0.4705 0.4045

0.9360 0.8400 0.7440 0.6480 0.5520 0.4760 0.4100

0.9440 0.8480 0.7520 0.6560 0.5600 0.4815 0.4155

0.9520 0.8560 0.7600 0.6640 0.5680 0.4870 0.4210

0.9600 0.8640 0.7680 0.6720 0.5760 0.4925 0.4265

0.9680 0.8720 0.7760 0.6800 0.5840 0.4980 0.4320

0.9760 0.8800 0.7840 0.6880 0.5920 0.5035 0.4375

0.9840 0.8880 0.7920 0.6960 0.6000 0.5090 0.4430

0.9920 0.8960 0.8000 0.7040 0.6080 0.5145 0.4485

Table 2: Early Retirement Pension Reduction Factors for Benefits Earned between September 1, 2005 and September 1, 2009, for Participants who Participated in the Plan Prior to September 1, 2005 and Retire From Covered Employment After Attaining Age 55

24

New Participants on or after September 1, 2005

Individuals who first become Participants on or

after September 1, 2005, and who satisfy the eligi-

bility requirements for an Early Retirement Pen-

sion, will be eligible to receive an Early Retirement

Benefit that is the actuarial equivalent to the ben-

efit payable at age 65 based upon the early retire-

ment reduction factors in Table 3 on page 25.

If you do not qualify for an unreduced pension at

age 62 under the Prior Plan or a merged Partici-

pating Plan and you elect to receive your pension

before age 65, the pension under the Prior Plan

or a merged Participating Plan will have the Early

Retirement Pension reduction provided in that

plan. Note that some merged Participating Plans

may not offer an unreduced benefit at age 62. If

you participated in a merged Participating Plan,

you should refer to that Plan’s booklet or contact

the Fund Office for a description of the available

payment options.

example 2

Betty is 56 years old and is eligible for a Normal Retirement Pension of $1,250.00 per month at age

65: $600.00 of which was earned before September 1, 2005, $250.00 of which was earned between

September 1, 2005 and August 31, 2009, and $400.00 of which was earned on or after September 1,

2009. Betty decides to leave Covered Employment and retire at age 56. Her Early Retirement Pen-

sion reduction factor based on actuarial equivalence to age 65 (Table 3 on page 25) is 0.4240, which

provides a monthly benefit of $530.00 (see below). If Betty retires at age 56, her Early Retirement

Pension reduction factor for benefits earned before September 1, 2005 is 0.7300, for benefits earned

between September 1, 2005 and August 31, 2009 is 0.4540. Since Betty left Covered Employment

after age 55, her Early Retirement Pension would be calculated as follows:

Benefit based on Actuarial Equivalence to Age 65 factors: $530.00 ($1,250 X 0.4240)

Benefits based on rules and accrued benefit as of 8/31/2009:

Earned Earned Before 9/1/05 9/1/05 - 8/31/09

Normal Retirement Pension: $ 600.00 $ 250.00

Early Retirement Pension Factor x .7300 x .4540

Early Retirement Pension: $ 438.00 $ 113.50

Total Early Retirement Pension: $ 551.50

Betty would receive the higher monthly benefit of $551.50.

25

monthsyears

64 63 62 61 60 59 58 57 56 55

0

1

2

3

4

5

6

7

8

9

10

11

Table 3: Early Retirement Reduction Factors Based on Actuarial Equivalence to Age 65

example

Tim became a Participant after September

1, 2005. At age 65, Tim’s Normal Retire-

ment Pension would be $800 per month.

Tim decides to retire at age 62. Tim’s Early

Retirement Pension reduction factor (from

the above table) is 0.7410. Tim’s monthly

pension would be calculated as follows:

Normal Retirement Pension: $ 800.00

Early Retirement Pension Reduction Factor: x 0.7410

Early Retirement Pension: $ 592.80

Benefit commencement

Generally, your Early Retirement Pension will

begin after your application is filed with the Fund

and after you have met all the conditions for this

benefit. If you are not in Prohibited Employment

on or after age 62, you may be eligible to elect to

receive your benefit retroactively to a date before

your benefit application was received by the Fund

Office. The Fund Office will provide you with more

information if this applies to you.

0.9030 0.8170 0.7410 0.6720 0.6110 0.5570 0.5080 0.4640 0.4240 0.3880

0.9110 0.8240 0.7470 0.6780 0.6160 0.5620 0.5120 0.4680 0.4270 0.3910

0.9190 0.8310 0.7540 0.6840 0.6210 0.5660 0.5160 0.4710 0.4310 0.3940

0.9270 0.8390 0.7600 0.6890 0.6260 0.5710 0.5200 0.4750 0.4340 0.3970

0.9350 0.8460 0.7660 0.6950 0.6310 0.5750 0.5240 0.4790 0.4370 0.4000

0.9430 0.8530 0.7730 0.7010 0.6360 0.5800 0.5280 0.4820 0.4410 0.4030

0.9520 0.8600 0.7790 0.7070 0.6420 0.5840 0.5330 0.4860 0.4440 0.4060

0.9600 0.8670 0.7850 0.7120 0.6470 0.5890 0.5370 0.4900 0.4470 0.4090

0.9680 0.8740 0.7920 0.7180 0.6520 0.5930 0.5410 0.4930 0.4510 0.4120

0.9760 0.8820 0.7980 0.7240 0.6570 0.5980 0.5450 0.4970 0.4540 0.4150

0.9840 0.8890 0.8040 0.7300 0.6620 0.6020 0.5490 0.5010 0.4570 0.4180

0.9920 0.8960 0.8110 0.7350 0.6670 0.6070 0.5530 0.5040 0.4610 0.4210

26

eligibility

Generally, you will be eligible to receive a Deferred

Vested Pension if you terminate Covered Employ-

ment with five or more years of Vesting Service.

Eligibility for a Deferred Vested Pension will be

determined by the provisions of the Plan in effect

at the time you leave Covered Employment.

calculation of Benefit

Once you are eligible and apply for a benefit, your

benefit will be calculated based on the provisions

of the Plan in effect on the day you left Covered

Employment. The amount of this Deferred Vested

Pension that is payable at age 65 is equal to the Nor-

mal Retirement Pension (see page 16) earned as of

the date you left Covered Employment. However,

a Deferred Vested Pension can be paid as early as

age 55 if you satisfy the eligibility requirements for

an Early Retirement Pension (see page 20). If you

are eligible to receive benefits before age 65, the

amount of the pension will be reduced based on the

Early Retirement reduction provisions of the Plan

when you left Covered Employment.

deferred veSted penSion

example 1

Joan is 52 years old and is eligible for a Normal Retirement Pension of $1,400 per month at age 65:

$900.00 of which was earned before September 1, 2005 and $500 of which was earned after Septem-

ber 1, 2005. Joan terminates Covered Employment prior to age 55 after satisfying the requirements

for a Deferred Vested Pension and an Early Retirement Pension and she elects to commence

benefits at age 55. Her Early Retirement Pension benefit amount would be the greater of her total

accrued benefit on her retirement date ($1,400.00 per month) adjusted by the actuarial equiva-

lence to age 65 factor of 0.3880 (Table 3 on page 25), or her accrued benefit as of August 31, 2005

($900.00 per month) adjusted by the reduction factor of 0.6700 (Table 1 on page 22). Joan’s Early

Retirement Pension would be calculated as follows:

Benefit based on Actuarial Equivalence to Age 65 factors: $543.20 ($1,400 X 0.3880)

Benefits based on leaving Covered Employment before age 55:

Earned Before

9/1/05

Normal Retirement Pension: $900.00

Early Retirement Pension Factor x 0.6700

Early Retirement Pension: $603.00

Joan would receive the higher monthly benefit of $603.00.

27

example 2

Jake left Covered Employment at age 57, after satisfying the service requirements for a Deferred

Vested Pension and the requirements for an Early Retirement Pension (see page 20). His Normal

Retirement Pension at age 65 would be $900 per month, of which $500 was earned before Septem-

ber 1, 2005, $300 was earned between September 1, 2005 and August 31, 2009, and $100 was earned

after September 1, 2009. Jake elects to commence benefits at age 60. His Early Retirement Pen-

sion would be the greater of his total accrued benefit at 65 ($900) adjusted by the actuarial equiva-

lence to age 65 factor of 0.6110 (Table 3 on page 25) or his accrued benefit as of August 31, 2009

adjusted by the reduction factor for benefits earned before September 1, 2005 of 0.9160 (Table 1

on page 22) and for benefits earned between September 1, 2005 and August 31, 2009, of 0.8080

(Table 2 on page 23). Jake’s benefit will be calculated as follows:

Benefit based on Actuarial Equivalence to Age 65 factors: $549.90 ($900 X 0.6110)

Benefits based on rules and accrued benefit as of 8/31/2009:

Earned Before Earned

9/1/05 9/1/05 - 8/31/09

Normal Retirement Pension: $500.00 $300.00

Early Retirement Pension Factor x 0.9160 x 0.8080

Early Retirement Pension: $458.00 242.40

Total Early Retirement Pension $700.40

Jake would receive the higher monthly benefit of $700.40.

28

eligibility

If your Covered Employment is terminated due to

a Total and Permanent Disability, you may be eligi-

ble for a Disability Pension if at that time you have

at least 10 years of Future Service Pension Credit.

You may be required to submit to an examination

by a physician or physicians selected by the Trust-

ees and to submit to reexamination periodically

as the Trustees direct. The Trustees may require

or accept as proof of your Total and Permanent

Disability a determination by the Social Security

Administration that you are entitled to a Dis-

ability Insurance Benefit under the Federal Social

Security Act.

If you terminated Covered Employment before Sep-

tember 1, 2005, there are different eligibility rules

for a Disability Pension. Contact the Fund Office

for information about Disability Pension eligibility

in place before September 1, 2005. The Future Ser-

vice Pension Credit you earn under the Prior Plan

or a merged Participating Plan can be used to meet

these eligibility requirements provided you have not

incurred a Permanent Break in Service.

covered employment must be terminated by disability

Except as noted below, you will only be eligible for

a Disability Pension if your Covered Employment

ended due to a Total and Permanent Disability.

Therefore, if you have other employment after

you leave Covered Employment, you may not be

eligible for a Disability Pension even if you subse-

quently become unable to work due to a disability.

One exception to this rule applies if you move

directly from Covered Employment to non-Cov-

ered Employment with the same Employer. If less

than 12 months has passed since the change from

Covered Employment to non-Covered Employ-

ment and employment has been continuous, a

Total and Permanent Disability ending your non-

Covered Employment with that Employer will

be treated the same as if you terminated Covered

Employment on account of Total and Permanent

Disability.

definitions

total and permanent disability: You are

considered Totally and Permanently Disabled

if, on the basis of medical evidence, the Trust-

ees determine that you are unable to engage in

any substantial gainful activity due to any medi-

cally determinable physical or mental impair-

ment expected to last for a continuous period of

not less than 12 months or expected to result in

death.

Substantial gainful activity: Substantial gainful

activity involves performance of significant physical

or mental duties, or a combination of both, that is

productive in nature. Gainful work activity is activity:

n For your remuneration or profit;

n For the remuneration or profit of persons, if

any, for whom you perform work; or

n Of a nature generally performed for remunera-

tion or profit.

For work activity to be substantial, it is not neces-

sary that it is performed on a full-time basis; work

activity performed on a part-time basis may also be

substantial. Work may still be substantial even if

the amount of work activity is less or it is of a less

responsible or gainful nature after the onset of your

impairment than before.

diSaBility penSion

29

You will be determined to be Totally and Perma-

nently Disabled if the Trustees determine that your

physical or mental impairment(s) is of such severity

that you are unable to do your previous work and

considering your age, education, and work experi-

ence, you cannot engage in any other kind of sub-

stantial gainful work.

disabilities not recognized

by the future Service plan

The Future Service Plan will not recognize disabili-

ties caused by:

n An injury suffered while engaged in a felonious

or criminal act or enterprise; or

n Service in the Armed Forces of the United

States that entitles you, within two years of

separation from military service, to a Veteran’s

Disability Pension.

Benefit calculation

The amount of your Disability Pension is the same

as your Normal Retirement Pension.

optional form of payment

If you are not married on the date your Disability

Pension begins, your Disability Pension will be paid

in the form of a Single Life Annuity (see page 33).

If you are married on the date your Disability Pen-

sion begins, your monthly benefit will be paid as a

50% Spouse Joint and Survivor Annuity (see page

33), unless you and your spouse waive that form of

benefit under the procedures described on page 33

and you elect a Single Life Annuity. For a complete

explanation of the forms of benefit payments avail-

able under the Future Service Plan, see pages 33-38.

Please note, if you retire on a Disability Pension

before age 55, elect a Single Life Annuity, and die

before age 55, your spouse will receive a Prere-

tirement Surviving Spouse Benefit, provided you

and your spouse were married throughout the 12

months preceding your death (see pages 39-41).

In this case, the Preretirement Surviving Spouse

Benefit available to your eligible surviving spouse

would be 50% of the Early Retirement Pension

benefit that you would have been eligible for at

age 55, not 50% of the unreduced Disability Pen-

sion benefit you received while living. However,

if you are married, retire on a Disability Pension

before age 55, elect a Single Life Annuity and die

at or after attaining age 55, your spouse will not

receive a surviving spouse benefit unless, at age 55,

you elected to change the form of your benefit to

an Early Retirement Pension paid in the form of

a 50% or 75% Spouse Joint and Survivor Annu-

ity (see below). In any event, if you are receiving a

Disability Pension and you die before age 55, your

spouse’s survivor benefit will not begin until the

month after you would have reached age 55.

Additional rules apply if you are divorced after

your Disability Pension begins and before age 55.

You should contact the Fund Office for these rules.

Optional Benefit Conversion/Form of Payment

Change at Age 55 If you begin to receive a Dis-

ability Pension before age 55, you will have the

one-time option, at age 55, to change your form

of payment if you elect to convert your Disability

Pension (not reduced for age) to an age-reduced

Early Retirement Pension. Before turning age 55,

the Fund Office will contact you and you will be

offered the opportunity to:

n Continue your Disability Pension benefit under

the same form of payment you originally elect-

ed (Single Life Annuity or 50% Spouse Joint

and Survivor Annuity), or

n Change your form of payment and convert your

Disability Pension to an age-reduced Early

Retirement Pension.

30

If you change your benefit form, your spouse, if

any, must consent in writing as described in the

Forms of Pension Payment section on pages 31-32.

payment

Payment of the Disability Pension begins on the

first of the month following the later of:

n A five-month period of Total and Permanent

Disability (six months for benefits earned in the

Michigan Food Fund Benefit Group and in the

Michigan Drug Fund Benefit Group); or

n The last payment of weekly accident and sick-

ness benefits from an Employer-sponsored plan.

If you first applied for a Disability Pension on or after

September 1, 2010, the maximum retroactive effec-

tive date of a Disability Pension is three years from

the date of the application for the Disability Pension.

If you terminated Covered Employment due to a

Total and Permanent Disability on or after Septem-

ber 1, 2009, you must apply for a Disability Pen-

sion within five years of the date of termination of

Covered Employment due to your Total and Per-

manent Disability. The application deadline may be

extended if the Trustees determine that a physical

or mental impairment prevented you from filing an

application within the five-year period.

When payments end

Your Disability Pension will end if you:

n Cease to be Totally and Permanently Disabled;

n Do not undergo a medical examination request-

ed by the Trustees (a medical examination will

not be required more frequently than twice a

year);

n Engage in any occupation or employment for

remuneration or profit, unless such occupation

or employment is found by the Trustees to be

for rehabilitation or is not incompatible with the

definition of Total and Permanent Disability; or

n Regain ability to engage in substantial gainful

activity.

If you are no longer eligible for a Disability Pen-

sion, you may:

n Return to work in Covered Employment and

earn additional Pension Credit; or

n Apply for another type of pension if you meet

all the requirements for such pension.

31

There are four forms of pension payments available

under the Plan:

n Single Life Annuity;

n 50% Spouse Joint and Survivor Annuity;

n 75% Spouse Joint and Survivor Annuity; or

n Level Income Annuity.

general rules

n If you are not married at the time your pension

is to begin, you will receive your pension in the

Single Life Annuity form of payment, unless

you are eligible for and elect the Level Income

Annuity (see page 37). A Single Life Annuity is

a monthly pension payable to you during your

lifetime. Under this form, no benefits are pay-

able to anyone after you die.

n If you are married on the date your pension is

to begin, you will receive a pension in the 50%

Spouse Joint and Survivor Annuity form of pay-

ment, unless you and your spouse waive this

option under the procedures described on page

33 and elect payment under another option (or

unless the law provides otherwise). Under the

50% Spouse Joint and Survivor Annuity option,

you will receive a smaller monthly pension than

you would receive under the Single Life Annuity

form during your lifetime and, upon your death,

50% of that monthly pension will be contin-

ued to your qualified surviving spouse for your

spouse’s lifetime.

n If you and your spouse decide to waive the

50% Spouse Joint and Survivor Annuity and

elect either the Single Life Annuity or Level

Income Annuity, your spouse gives up the right

to receive a lifetime monthly payment from the

Future Service Plan if you die first. Your spouse

must consent in writing to this election on the

form that the Fund requires and the consent

must be witnessed by a notary public. An elec-

tion without consent by your spouse waiving his/

her right to the 50% Spouse Joint and Survivor

Annuity will be disregarded, and the pension

will be paid as a 50% Spouse Joint and Survivor

Annuity unless one of the exceptions described

on page 35 applies.

n Alternatively, you can elect with your spouse’s

consent (witnessed by a notary public) to receive

a 75% Spouse Joint and Survivor Annuity. This

form of payment provides 75% of your reduced

benefit to your spouse upon your death.

n If you die after electing another form of pay-

ment (with your spouse’s consent) but before

payment of the benefit has begun, your surviv-

ing spouse may revoke the waiver of the 50%

Spouse Joint and Survivor Annuity.

n If you elect a form of benefit payment under the

Prior Plan or a Participating Plan, it will auto-

matically be extended to the benefits under the

Future Service Plan, if that form of benefit pay-

ment is allowed under the Future Service Plan.

n If you were married on the date your pension

begins and are subsequently divorced after pay-

ments begin under a 50% or 75% Spouse Joint

and Survivor Annuity, your monthly amount

will not be increased and your form of pay-

ment will not be changed. Further, your former

spouse is still entitled to the survivor annuity

when you die, unless a Qualified Domestic Rela-

tions Order provides otherwise.

formS of penSion payment

32

n In situations where the combined actuarial

present value of your benefit payable under the

Future Service Plan, Prior Plan, and merged

Participating Plan is $5,000 or less at the time

of your Annuity Starting Date, you will receive

a lump sum payment instead of payment under

any other form. The lump sum payment, which

will be in place of future monthly pension pay-

ments, is paid in this case regardless of your

marital status.

n In determining the actuarial present value of

your benefit under the Future Service Plan, the

amount of any lump sum payment to you, your

spouse, or your former spouse will be calculated

in accordance with the lump sum conversion fac-

tors in the Future Service Plan.

n If you are a disability pensioner who is to receive

a Disability Pension under a 50% Spouse Joint

and Survivor Annuity, there are special actuarial

factors, described on page 29, for calculating the

amount of your 50% Spouse Joint and Survivor

Annuity.

n The form of payment you elect cannot be

changed once the pension benefit payment is

cashed, deposited (including electronic funds

transfer), or otherwise negotiated. There is an

exception, however, if you are married and

begin to receive a Disability Pension before age

55 (see page 29). In addition, if you are receiving

a 50% Spouse Joint and Survivor Annuity and

your spouse dies on or after July 1, 1992, your

benefit will be readjusted as of the first day of

the month following your spouse’s death to the

amount that would have been paid to you as a

Single Life Annuity (this readjustment became

available to Participants or pensioners who were

former Participants of the Michigan Food Fund

Benefit Group or the Michigan Drug Fund Ben-

efit Group on July 1, 1998). Satisfacto ry proof of

your spouse’s death is required before the read-

justed benefit will be paid.

n The Plan will send you information about the

forms of payment available to you within 180

days of your Annuity Starting Date, but not

less than 30 days before. This information will

include a description of the Single Life Annuity

and the 50% Spouse Joint and Survivor Annu-

ity forms of payment, including the relative

financial values of the two, as well as optional

forms of payment such as the 75% Spouse Joint

and Survivor Annuity and the Level Income

Annuity. The optional forms information will

include a description of the forms of payment,

information about the right to waive the 50%

Spouse Joint and Survivor Annuity, the effect of

such a waiver, and your spouse’s right to with-

hold consent to the election of a form other than

the 50% Spouse Joint and Survivor Annuity.

You and your spouse may waive, in writing, the

30-day requirement, and the information can

be provided up to 7 days prior to the Annuity

Starting Date. In addition, you will be notified of

your right to defer a distribution and the conse-

quences of not deferring a Plan benefit.

33

Single life annuity

The Single Life Annuity form of payment provides

a monthly payment to you during your lifetime. No

payments are made after your death.

50% Spouse joint and Survivor annuity

If you are married on the day your pension benefit

begins, federal law requires payment in the form of a

50% Spouse Joint and Survivor Annuity unless you

and your spouse both agree to waive this form of

benefit. To waive this form of payment, you and your

spouse must consent to the waiver in writing and the

consents must be witnessed by a notary public.

A waiver of the 50% Spouse Joint and Survivor

Annuity is effective only if signed no more than 180

days immediately preceding the Annuity Starting

Date. You may revoke a waiver and execute a new

waiver at any time within this 180-day period. Gen-

erally, your distribution cannot begin until 30 days

after you have received information from the Plan

concerning the Spouse Joint and Survivor benefit

form and the right to request optional benefit forms

from the Plan. You and your spouse may waive in

writing the 30-day distribution waiting period , pro-

vided that the explanation is given at least (7) days

prior to the date of distribution. After you cash,

deposit or otherwise negotiate your benefit pay-

ment, you cannot change your election.

Because the 50% Spouse Joint and Survivor Annu-

ity form of payment assumes continuation of 50% of

the monthly pension benefit to your qualified spouse

after your death, the amount paid to you is less than

would be the case if no benefit continued after your

death. The amount of the pension will be reduced by

a factor based on your age at retirement and the dif-

ference in ages between you and your spouse.

For the 50% Spouse Joint and Survivor Annu-

ity form of payment to be available, you and your

spouse must be legally married on the date your

pension begins. Proof of marriage and proof of your

spouse’s age will be required. The fact that you

become divorced while receiving payments under

the 50% Spouse Joint and Survivor Annuity will not

by itself change the form of benefit payment.

How the 50% Spouse Joint and Survivor Reduction Works

For benefits earned after June 30, 1984 (or your

plan’s merger date, if later), the factor is based on

two components:

n Your age at retirement; and

n The difference between your age and your

spouse’s age.

The formula for the 50% Spouse Joint and Survivor

Annuity factor applied to that benefit is:

n Step 1: 90.2%:

� Plus 0.3% for each year you are younger

than age 65 when you retire; or

� Minus 0.3% for each year you are older than

age 65 when you retire.

n Step 2: The percent calculated in Step 1:

� Plus 0.4% for each full year your spouse is

older than you are when you retire; or

� Minus 0.4% for each full year your spouse is

younger than you are when you retire.

To calculate the amount of a 50% Spouse Joint and

Survivor Annuity, the factor is multiplied by your

you have up to 180 days after receiving an explanation of the benefit options available to you under the Future Service Plan to elect a form of benefit payment.

explanation of formS of penSion payment

34

Normal or Early Retirement Pension amount. In

no event will the factor exceed 99.0%

The factor for benefits accrued under the National

Pension Fund’s Prior Plan before July 1, 1984 is

86.2% plus 0.4% for each full year your spouse is

older than you or minus 0.4% for each full year

your spouse is younger than you. If you participat-

ed in a merged Participating Plan, you should refer

to that Plan to identify the pre-merger factor.

The following two examples show how the 50%

Spouse Joint and Survivor Annuity is calculated.

Special Rules for the 50% Spouse Joint and Survivor Annuity for Disability Pensioners

If you are married on the date your Disability Pen-

sion begins, you will receive a 50% Spouse Joint

and Survivor Annuity, unless you and your spouse

waive that form of payment and elect a Single Life

Annuity. If you are married and your Disability

Pension begins before age 55, see page 29 for an

explanation of the options available to you.

The amount of the Disability Pension payable as a

50% Spouse Joint and Survivor Annuity is calcu-

lated the same as Normal Retirement Pension but

will be reduced by the appropriate disability 50%

Spouse Joint and Survivor Annuity reduction factor

based on the difference in ages between you and

your spouse.

If you are receiving a Disability Pension in the form

of a 50% Spouse Joint and Survivor Annuity and

die before age 55, the survivor’s portion will not

be paid to your qualified surviving spouse until the

first day of the month following the date you would

have reached age 55.

example 2

Don is eligible to retire with a monthly pen-

sion of $1,000.00 per month. Both he and his

wife are age 62 when his pension is effective.

The reduction percentage applicable based

on the ages of Don and his wife is 91.1%

[90.2% + (0.3% X 3)].

Monthly Pension Amount: $1,000.00

Reduction Percentage: x 91.1%

Don’s 50% Spouse Joint

and Survivor Annuity: $ 911.00

Spouse’s 50% Reduction: x 50%

Spouse’s 50% Spouse Joint

and Survivor Annuity: $ 455.50

example 3

Marie is age 62 and eligible to retire with

a monthly pension of $1,200.00. Marie’s

husband will be 67 years old on the effec-

tive date of her pension. The reduction

percentage for an Employee age 62 with a

spouse age 67 is 93.1% [90.2% + (0.3% x 3)

+ (0.4% x 5)].

Monthly Pension Amount: $1,200.00

Reduction Percentage: x 93.1%

Marie’s 50% Spouse Joint

and Survivor Annuity: $1,117.20

Spouse’s 50% Reduction: x 50%

Spouse’s 50% Spouse Joint

and Survivor Annuity: $ 558.60

example 1

n If you and your spouse are both age 65,

the factor is 90.2%.

n If you are age 65 and your spouse is

three years younger than you are, the

factor is 89.0% [90.2% - (0.4% x 3)].

n If you are age 62 and your spouse is two

years older than you, the factor is 91.9%

[90.2% + (0.3% x 3) + (0.4% x 2)].

35

n The reduction factor for Disability Pension is 75.2%:

� Plus 0.6% for each full year your spouse is

older than you; or

� Minus 0.5% for each full year your spouse

is younger than you.

The following examples illustrate different scenari-

os of how to calculate a Disability Pension.

Example 2 shows how the 50% Spouse Joint and

Survivor Annuity is calculated for Disability Pensions.

Restrictions on Electing the 50% Spouse Joint and Survivor Annuity

Your benefit will not be paid in the 50% Spouse

Joint and Survivor Annuity form if:

n You are not married on the date your pension

begins, because you were never married or were

married and are divorced (unless a Qualified

Domestic Relations Order directs otherwise);

n Your spouse dies before your pension begins; or

n You are legally married on the date your pen-

sion begins, but:

� Your spouse consents to the waiver of the

50% Spouse Joint and Survivor Annuity and

the consent is witnessed by a notary public;

or

� You are legally separated or legally aban-

doned (within the meaning of local law) by

your spouse, unless a Qualified Domestic

Relations Order directs otherwise; or

� You are unable to locate your spouse.

You should be prepared to provide legal evidence

if you are married and any of these situations apply

to you.

Generally, once you have started receiving pension

checks or electronic payments, you cannot change

the form of payment, even if your personal circum-

stances change. However, if you are married and

begin to receive a Disability Pension before age

55, you may change the form of benefit when you

become age 55 to an Early Retirement Pension

reduced for age (see page 29).

75% Spouse joint and Survivor annuity

If you are married on the day your pension ben-

efit begins, you may elect to receive your pension

in the form of a 75% Spouse Joint and Survivor

Annuity. To elect the 75% Spouse Joint and Survi-

example 2

Frank and his spouse are both age 60 when he qualifies for a Disability Pension of $900.00 per month. The reduction percent-age for the Disability Pension based on the ages of Frank and his wife is 75.2%. Therefore, Frank would receive a 50% Spouse Joint and Survivor Annuity of $676.80 ($900.00 x 75.2%) per month dur-ing his life. Upon Frank’s death, his quali-fied surviving spouse will receive 50% of Frank’s pension or $338.40 ($676.80 x 50%) monthly for the remainder of her life.

If Frank and his spouse were age 50 when he became disabled instead of age 60 and if Frank died at age 52, the surviving spouse benefit of $338.40 would not be paid to his qualified surviving spouse until the first of the month after what would have been Frank’s 55th birthday.

example 1

n If you and your spouse are the same

age, the factor is 75.2%.

n If your spouse is three years younger

than you are, the factor is 73.7% [75.2%

- (0.5% x 3)].

n If your spouse is three years older than

you are, the factor is 77.0% [75.2% +

(0.6% x 3)].

36

vor Annuity, you and your spouse must waive the

50% Spouse Joint and Survivor Annuity. See the

section titled The 50% Spouse Joint and Survivor

Annuity on page 33. The 75% Spouse Joint and

Survivor Annuity is not available with a Disability

Pension.

If you elect the 75% Spouse Joint and Survivor

Annuity and die before your spouse, your spouse

will receive 75% of the benefit you were receiving.

If your spouse dies before you, your benefit will

not be increased and will remain the same for the

rest of your life.

Because the 75% Spouse Joint and Survivor

Annuity form of payment assumes that 75%

of the monthly pension benefit will continue

to your qualified spouse after your death, the

amount paid to you during your lifetime is less

than would be the case if no benefit continued

after your death. The amount of the pension

will be reduced by a factor based on your age at

retirement and the difference in ages between

you and your spouse.

To be eligible for the 75% Spouse Joint and Survi-

vor Annuity, you and your spouse must be legally

married on the date your pension benefit begins.

Proof of marriage and proof of your spouse’s age

will be required. The fact that you become divorced

while receiving payments under the 75% Spouse

Joint and Survivor Annuity will not by itself change

the form of benefit payment.

Once you cash, deposit or otherwise negotiate your

pension checks or electronic payments, the form of

payment cannot be changed even if your personal cir-

cumstances change.

How the 75% Spouse Joint and Survivor Reduction Works

The factor applied in changing from a Single Life

Annuity to a 75% Spouse Joint and Survivor Annu-

ity is based on two components:

n Your age at retirement; and

n The difference between your age and your

spouse’s age.

The formula for the 75% Spouse Joint and Survivor

Annuity factor applied to that benefit is:

n Step 1: 86.2%:

� Plus 0.5% for each year you are younger

than age 65 when you retire; or

� Minus 0.5% for each year you are older than

age 65 when you retire.

n Step 2: The percent calculated in Step 1:

� Plus 0.6% for each full year your spouse is

older than you are when you retire; or

� Minus 0.6% for each full year your spouse is

younger than you are when you retire.

To calculate the amount of a 75% Spouse Joint and

Survivor Annuity, the factor is multiplied by your

Normal or Early Retirement Pension amount. In

no event will the factor exceed 99.0%.

The following two examples show how the 75%

Spouse Joint and Survivor Annuity is calculated for

Normal and Early Retirement Pensions.

example 1

n If you and your spouse are both age 65,

the factor is 86.2%.

n If you are age 65 and your spouse is

three years younger than you are, the

factor is 84.4% [86.2% - (0.6% x 3)].

n If you are age 62 and your spouse is two

years older than you, the factor is 88.9%

[86.2% + (0.5% x 3) + (0.6% x 2)].

37

age at which social security payments start age 62 age 63 age 64 age 65

55

56

57

58

59

60

61

62

63

64

0.6141 0.5694 0.5265 0.4855

0.6556 0.6084 0.5631 0.5198

0.7000 0.6501 0.6023 0.5565

0.7542 0.6950 0.6444 0.5959

0.8110 0.7499 0.6896 0.6383

0.8707 0.8074 0.7452 0.6840

0.9335 0.8681 0.8036 0.7403

0.9321 0.8653 0.7996

0.9306 0.8623

0.9289

retirement age *

Sample Level Income Annuity Factors

* Level Income Annuity factors are based on your retirement age in years and months. The above table reflects whole years only; adjustments will be made for years and months.

example 2

Dan is eligible for a Normal Retirement

Pension of $1,000.00 per month. Both he

and his wife are age 65 when his pension is

effective. The reduction percentage appli-

cable based on the ages of Dan and his wife

is 86.2%

Normal Retirement Pension: $1,000.00

Reduction Percentage: x 86.2%

Dan’s 75% Spouse Joint

and Survivor Reduction: $ 862.00

Spouse’s 75% Reduction: x 75%

Spouse’s 75% Spouse Joint

and Survivor Annuity: $ 646.50

example 3

Selma is age 62 and eligible to retire with a

monthly pension of $1,200.00. Selma’s hus-

band will be 67 years old on the effective date

of her pension. The reduction percentage for

an Employee age 62 with a spouse age 67 is

90.7% [86.2% + (0.5% x 3) + (0.6% x 5)].

Early Retirement Pension: $1,200.00

Reduction Percentage: x 90.7%

Selma’s 75% Spouse Joint

and Survivor Annuity: $ 1,088.40

Spouse’s 75% Reduction: x 75%

Spouse’s 75% Spouse Joint

and Survivor Annuity: $ 816.30

level income annuity

This form of payment provides a higher monthly

amount of the Single Life Annuity payment to

you before Social Security benefits begin and a

lower monthly amount of the Single Life Annuity

payment after Social Security benefits begin. This

means that the monthly pen sion from this Plan

before Social Security benefits begin would be

approximately equal to the total income produced

by adding the reduced Plan benefit to the Social

Security monthly payment once it begins. That is

why this form of payment is called a Level Income

Annuity. You may elect a Level Income Annuity

only if you retire before age 65.

Under a Level Income Annuity, the monthly pay ment

from the Future Service Plan will be reduced as of the

first day of the month following your 62nd, 63rd, 64th,

or 65th birthday, depending on the age at which you

expect to begin receiving Social Security retirement

benefits. The factors used to calculate this benefit may

change as frequently as once a year, as required by

federal law. Contact the Fund Office for the most cur-

rent rates. The rates for retirements effective July 1,

2013 through June 30, 2014 are as follows:

38

example 1

Fred is age 62 and is eligible for a $1,200.00 per month pension benefit (after early retirement reduction) paid as a Single Life Annuity. His estimated Social Security retirement benefit at age 65 is $1,500.00 per month. Fred decides to have his benefits paid as a Level Income Annuity with his Social Security benefits beginning at age 65 on September 1, 2013. Because of Fred’s age at retirement and the age at which he plans to begin receiving Social Security benefits, the applicable Level Income Annuity factor is 0.7996. Fred’s Level Income Annuity would be calculated as follows:

pension between the ages of 62 and 65:

a) Level Income Annuity Factor: 0.7996

b) Fred’s estimated Social Security benefit at age 65: x $ 1,500.00

c) Subtotal $ 1,199.40

d) Fred’s Early Retirement Pension at age 62: + $ 1,200.00

e) Level Income Annuity paid between the ages of 62 and 65: $ 2,399.40

pension at age 65:

a) Fred’s Level Income Annuity between ages of 62 and 65 $ 2,399.40

b) Fred’s estimated Social Security benefit at age 65: - $ 1,500.00

c) Level Income Annuity starting at age 65: $ 899.40

d) Fred’s total retirement income at age 65 from the Fund and Social Security (b + c): $ 2,399.40

example 2

Cindy is age 58 and is eligible for an $800.00 per month pension benefit (after early retire-ment reduction) paid as a Single Life Annu-ity. Her estimated Social Security retirement benefit at age 62 is $1,200.00. Cindy decides to have her benefit paid as a Level Income Annuity with her Social Security benefit beginning at age 62 on November 1, 2013. Because of Cindy’s age at retirement and the age at which she plans to begin receiving Social Security benefits, the applicable Level Income factor applicable to Cindy is 0.7542. Cindy’s Level Income Annuity would be cal-culated as follows:

pension between the ages of 58 and 62

a) Level Income Annuity Factor: 0.7542

b) Cindy’s estimated Social Security benefit at age 62: x $ 1,200.00

c) Subtotal: $ 905.04

d) Cindy’s Early Retirement Pension at age 58: + $ 800.00

e) Level Income Annuity paid between the ages of 58 and 62: $ 1,705.04

pension at age 62

a) Cindy’s Level Income Annuity between ages of 58 and 62: $ 1,705.04

b) Cindy’s estimated Social Security benefit at age 62: - $ 1,200.00

c) Level Income Annuity starting at age 62: $ 505.04

d) Cindy’s total retirement income at age 62 from the Fund and Social Security (b + c): $ 1,705.04

Note: If the benefit actually paid by Social Security differs from the estimate made at retirement, the benefits paid by the Fund do not change.

No benefits are payable under the Level Income Annuity after your death. You may not elect the Level

Income Annuity if you are applying for a Disability Pension. The Trustees have set a limitation of $10.00 as

the minimum monthly benefit to be paid as a Level Income Annuity from the Future Service Plan.

Once payments begin under the Level Income Annuity form of payment, you cannot change either the elec-

tion of this form of payment or the amount paid under this form of payment, even if your Social Security

benefits are different than you anticipated.

39

Surviving SpouSe BenefitS Before penSion BenefitS Begin

If you die before your pension benefits begin, the

Future Service Plan provides a Preretirement Sur-

viving Spouse Benefit to your qualified surviving

spouse if, at the time of your death, you:

n Were married throughout the one-year period

ending on the date of your death; and

n Had satisfied the service requirements neces-

sary to be a vested Participant before your

death (see page 7).

The Preretirement Surviving Spouse Benefit is

available regardless of your age at the time of

death, but payment of the benefit cannot begin

before the benefit date described below.

Benefit date

Your benefit date is your date of death, or if later,

the earliest date on which you could have begun

receiving a pension benefit from the Future Service

Plan had you terminated Covered Employment on

the date of your death and survived.

Benefit calculation

The benefit paid to your qualified surviving spouse

is equal to one-half the monthly pension that you

would have received under the 50% Spouse Joint and

Survivor Annuity if you had retired and had begun to

receive a benefit the day before your benefit date.

When Benefits Begin

Payment of the Preretirement Surviving Spouse

Benefit to your qualified surviving spouse will begin

as of the first day of the month immediately follow-

ing your benefit date. Therefore, the benefit will not

begin until the first of the month following the date

on which you would have reached age 65 had you

lived, unless you were eligible for an Early Retire-

ment Pension at the time of your death. In that case,

the benefit for your spouse could begin on the first

of the month following the date on which you would

have reached age 55 had you lived.

Your qualified surviving spouse may elect to delay

the beginning of the Preretirement Surviving Spouse

Benefit to some later date beyond your benefit date.

However, the Preretirement Surviving Spouse Benefit

must begin by the later of December 31st of the cal-

endar year immediately following the calendar year

in which you die or December 31st of the calendar

year in which you would have turned age 70½. If your

qualified surviving spouse elects to delay the com-

mencement of the benefit, the amount of the monthly

payments is the actuarial equivalent of the benefit

amount that would have been payable at the earli-

est commencement date. If your qualified surviving

spouse dies before the date he or she elects to begin

receiving the Preretirement Surviving Spouse Benefit,

there will be no payments to any other beneficiary.

The Future Service Plan may charge for the Pre-

retirement Surviving Spouse Benefit protection,

but this charge will only apply to periods after you

receive notice and are given an opportunity to

waive the benefit.

If you die after you have left Covered Employment

with a vested benefit but before your pension begins,

the Preretirement Surviving Spouse Benefit paid

to your spouse will be based on the benefit you had

earned and the terms of the Future Service Plan that

existed at the time you left Covered Employment.

general rules

n No Preretirement Surviving Spouse Benefit will

be paid if you die before qualifying for a pen-

sion benefit.

n No Preretirement Surviving Spouse Benefit is

40

example 1

Mary dies at age 62 after meeting all the requirements for an Early Retirement pen-sion. Her husband is age 67 at the time of her death. Mary had left employment with an Employer but had not applied for a pension. At the time of her death, Mary was entitled to retire with an Early Retirement Pension of $1,200.00 per month. Her husband could choose to receive his surviving spouse annuity beginning the month following Mary’s death.

Early Retirement Pension: $1,200.0050% Spouse Joint and Survivor Annuity Factor: x 0.931Mary’s 50% Spouse Joint and Survivor Benefit: $1,117.2050% Spouse Reduction: x 0.50Spouse’s 50% Spouse Joint and Survivor Benefit: $ 558.60

paid to your surviving spouse if you and your

spouse were not married to each other through-

out the one-year period immediately before

your death, even if you meet the other require-

ments described on page 39.

n If you die before receiving any pension benefits

under a 50% Spouse Joint and Survivor Annu-

ity form of payment and you have not satisfied

the requirement for your spouse to become

eligible for a Preretirement Surviving Spouse

Benefit, there will be no payments made to your

surviving spouse following your death.

n If a Qualified Domestic Relations Order

entered by the court before your death provides

that your former spouse be treated as your sur-

viving spouse for purposes of the Preretirement

Surviving Spouse Benefit, the Future Service

Plan is required by federal law to do so, even

if you are married to another person at your

death.

example 2

Jeff has 25 years of Future Service Pension Credit, which would provide him with a benefit of $1,500.00 per month at age 65 ($1,000.00 was earned before September 1, 2005 and $500.00 was earned after Sep-tember 1, 2005). Jeff dies at age 53 while working in Covered Employment. At age 55, Jeff could have retired with an Early Retirement Pension. Jeff’s spouse, who is two years younger than him, is eligible to receive a survivor benefit beginning on the first day of the month following the month in which Jeff would have attained age 55. Since Jeff died at age 53, his qualified surviving spouse would receive the 50% Spouse Joint and Survivor benefit calculated as follows:

Greater of (1) or (2):

(1) Based on actuarial equivalence to age 65 factors: $582.00 ($1,500.00 x 0.388)

(2) Early Retirement Benefit as of 8/31/2005: $670.00 ($1,000.00 x 0.670)

Early Retirement Pension: $ 670.00

Reduction for 50% Spouse Joint and Survivor Annuity x 0.924

Jeff’s 50% Spouse Joint and Survivor Annuity $ 619.08

Spouse’s reduction x 50%

Spouse’s 50% Spouse Joint and Survivor Annuity $ 309.54

41

example 3

Molly has 20 years of Future Service Pension Credit, which would provide her with a benefit of $1,200.00 per month at age 65 ($1,000.00 was earned before September 1, 2005, $150.00 was earned between September 1, 2005 and August 31, 2009, and $50 was earned after August 31, 2009). How-ever, when Molly dies at age 53, she is not working in Covered Employment. At age 55, Molly could have retired with an Early Retirement Pension. Molly’s spouse, who is two years younger than her, is eligible to receive a survivor’s benefit beginning on the first day of the month following the month in which Molly would have attained age 55. Because Molly left Covered Employment before age 55, her monthly pension would be reduced for Early Retirement as outlined below and her qualified surviving spouse would receive the 50% Spouse Joint and Survivor Annuity benefit calculated as follows:

Greater of (1) or (2):

(1) Based on actuarial equivalence to age 65 factors: $1,200.00 x 0.388 = $465.60, or

(2) Early Retirement Pension benefits as of August 31, 2005: ($1,000.00 x 0.670) = $670.00

This amount is then reduced for payment in the 50% Spouse Joint and Survivor Annuity form, as follows:

Early Retirement Pension $ 670.00

Reduction for 50% Spouse Joint and Survivor Annuity x 0.924

Molly’s 50% Spouse Joint and Survivor Annuity $ 619.08

Spouse’s reduction x 50%

Spouse’s 50% Spouse Joint and Survivor Annuity $ 309.54

Special disability Surviving Spouse Benefit

If you are a married disability pensioner, die before

age 55, and have waived the 50% Spouse Joint and

Survivor Annuity, your qualified surviving spouse

will be eligible to receive a Preretirement Surviv ing

Spouse Benefit provided you were married for the

12 month period preceding your date of death. The

benefit amount will equal 50% of the benefit you

would have received under an Early Retirement

Pension if you had retired on a 50% Spouse Joint

and Survivor Annuity on your commencement

date. No Preretirement Surviving Spouse Benefit

is paid if you die on or after attain ing age 55 while

receiving a Single Life Annuity (see page 29).

death during Qualified military Service

If you die while performing qualified military ser-

vice, the Plan will treat you as if you were working

in Covered Employment the day before your death

and terminated employment due to your death.

This means your Spouse, if eligible otherwise,

would receive a Preretirement Surviving Spouse

benefit.

42

When Benefits Begin

Your pension will be effective on the first day of

the month following the date you have met all of

the conditions for payment of a pension, includ-

ing the filing of a pension application. If possible,

you should submit a completed application and all

requested documents three to six months in advance

of the date that you want your pension to start to

ensure timely processing of your application.

You may also be eligible to receive a retroactive

pension in some circumstances. See page 19 for

more detail.

completing and filing a pension application

n After you have met the eligibility requirements

for a pension under the Future Service Plan,

you must complete, sign and file a written pen-

sion applica tion with the Fund Office. You can

request a pension application and the written

instructions on filing this application from your

Local Union office or from the Fund Office at:

United Food & Commercial Workers

International Union-Industry Pension Fund

P.O. Box 6000

Frankfort, Illinois 60423-6000

800-531-2385

www.ufcwnpf.org

n The Board of Trustees will rely on the infor-

mation you provide. If you misrepresent any

infor mation at any time during the pension

application process, such misrepresentation may

result in the denial, suspension, or cancellation

of payments. If payments were made in error

due to the Plan’s reliance on these misrepresen-

tations, the Plan can recover any benefits that

you were not entitled to receive.

n Union or Employer representatives are not

authorized to tell you the amount of your pen-

sion benefit or whether you qualify for benefits

from the Future Service Plan. Authorized rep-

resentatives of the Board of Trustees must com-

municate this information to you in writing.

n You can ask for a benefit estimate from the

Fund Office. However, your final benefit

amount is always governed by the terms of the

Plan Document and will not be calculated until

you formally apply for a pension.

n When the pension application is completed,

you should forward the application and all

docu ments that the Fund Office requests to the

Fund Office. The date on which the Fund Office

receives the completed pension application and

all documents necessary for the processing of

your application will be considered your appli-

cation date.

n When submitting a pension application, all

information requested by the Trustees must be

provided. Generally, no pension payments will

be made for the period before the first day of

the month following the date the application is

received.

n You must submit proof of age when applying

for a pension, such as a copy of a birth certifi-

cate. The Fund Office will provide you with a

When you retire, there are some things you must do to begin receiving your pension and issues that you must consider as part of your retirement.

applying for a penSion

43

list of other types of acceptable proof of age if a

birth certificate is not available.

n If you are married and you want to waive

the 50% Spouse Joint and Survivor Annuity

form of payment, your spouse must consent

in writing to this waiver, unless a legal excep-

tion applies. The pension application includes

a consent form for the waiver of the 50%

Spouse Joint and Survivor Annuity, which

must be signed by your spouse and witnessed

by a notary public.

NOTE: If you are a pensioner or surviving spouse

receiving benefits from the National Pension Fund,

you must notify the Board of Trustees of any

change of address or else payments will be withheld

until such notice is given.

review of your pension application

n When you file an application for a pension

other than a Disability Pension, the applica-

tion will be reviewed by the Select Commit-

tee. Within 90 days after your application

date, you will receive a decision on your

application or an explanation as to why a

decision must be delayed because of special

circumstances. In the event the preliminary

decision on your application for a non-Dis-

ability Pension benefit is to deny, wholly or

partially, your application, you will be given

30 days to provide additional information

that you think will support a different conclu-

sion. If this information is not received on

time, the initial decision will become final,

subject to your rights to appeal the decision,

as described on page 45. If this information

is received on time, the information will be

reviewed and a final decision will be made,

subject to your right to appeal the decision,

as described on page 45.

If additional time is required to make a decision on

your application because of special circumstances,

you will be notified in writing of the reason for the

delay and the date that the Fund expects to issue a

final decision. A decision will be made with respect

to your application no more than 180 days from

the date your application is first filed with the Fund

Office.

If your application is for a Disability Pension, you

will receive written notice of a decision on your

initial application within 45 days of receipt of your

application, or if additional time is required to

make a determination on your claim (for reasons

beyond the control of the Fund), you will be noti-

fied within this time. The Plan may extend this

45-day period up to an additional 60 days maxi-

mum. However, if a determination is not made

within the first 75 days, you will be notified that an

additional 30 days is necessary.

In some instances, the Plan may require additional

information to process and make a deter mination

on your application for a Disability Pension. If

such information is required, the Fund will notify

you within 45 days of receiving your application.

You then have up to 45 days in which to submit the

additional information. If you do not provide the

information within this time, then your claim may

be denied.

n If your application is denied, you will be noti-

fied in writing of the denial and the reason for

the full or partial denial, as described on page

45. Decisions made by the Board of Trustees

will be given judicial deference unless they con-

stitute an abuse of discretion.

n The Board of Trustees has established an

appeal procedure for applicants who want a

review of the denial (see page 45 for informa-

tion about the appeal procedure).

44

incompetence or incapacity

If you (or your surviving spouse) become unable to

care for your affairs because of an illness, accident,

or a medical or physical condition, payments will

be made on your account to your legally appointed

representative, spouse, or other person deemed by

the Board of Trustees to incur expenses on your

behalf. Payment of the distribution in this manner

will be a complete discharge of the Plan’s liability

of your distribution under the Future Service Plan.

When Benefits must Begin

Federal law requires the Plan to commence pay-

ment of pension benefits no later than the April

1 following the calendar year in which you reach

age 70½, which is your required distribution date.

You will be required to pay additional taxes if your

pension payments do not begin by your required

distribution date.

Because you must apply for a pension before it can

begin, you must apply for your pension in a timely

manner. If you are age 70, you should contact

the Fund Office for information concerning your

required distribution date. If you continue to work

in Covered Employment after you reach age 70½

and accrue benefits, your pension benefits will be

recalculated each year.

If you fail to file an application in a timely manner,

the Fund Office will automatically begin payment

of your pension in the form of a 50% Spouse Joint

and Survivor Annuity. If the Fund does not have

your Spouse’s date of birth on record, it will be

assumed that your Spouse is the same age as you.

You may apply for a different form of payment, but

payments already made will be deducted from your

benefit.

Special rollover and

mandatory tax Withholding

If you, your surviving spouse, or your non-spouse

beneficiary receive a lump sum distribution because

the actuarial present value of your combined ben-

efit from the Future Service Plan, Prior Plan, and

merged Participating Plan is less than $5,000, your

pension distribution can be affected by federal tax

law. If this law applies to your pension benefit, the

Fund must withhold 20% of your pension distri-

bution unless you, your surviving spouse, or your

non-spouse beneficiary timely notify the Fund

to transfer (rollover) the distribution to an IRA

(including Roth IRA) or another pension plan that

accepts rollover payments. If you are eligible for

a lump-sum form of pension payment, the Fund

Office will provide you with additional information

regarding your rollover options.

45

if your pension application is denied

If your application is denied, in whole or in part,

the Trustees will send you a written notice explain-

ing their decision. The notice will include:

n The specific reason or reasons for the denial;

n Specific references to the Plan provisions on

which the denial is based;

n A description of any additional material or

information you need to submit to perfect your

claim and an explanation of why such material

or information is necessary;

n Appropriate information about the steps

you must take to submit the claim for further

review;

n A statement advising that you must exhaust all

Plan review procedures before bringing a lawsuit;

n A statement of your right, under ERISA, to

bring a lawsuit, following an adverse deci sion on

appeal; and

n In the case of a Disability Pension, the notice

will state whether any internal rule, guideline,

or protocol was relied upon and offer a copy,

free of charge, upon request.

requesting a review

The Board of Trustees has established an appeal

procedure that you must follow if you want to have

the Board of Trustees review the initial decision

denying your claim. This procedure will be sent to

you if you receive a denial notice.

If you want to appeal a decision of the Trustees

regarding your pension application, you or your

authorized representative must send a written

request for review to the Fund Office within 180

days after receiving the notice of the Board of

Trustees’ denial.

The written request must include:

n Your name and address;

n Your Social Security number;

n Your Local Union; and

n Your reason for disagreeing with the Trustees’

decision and documentation supporting your

reason.

When requesting a review of a denial, you have the

right to:

n Submit any additional information concerning

your application, including any comments that

you want to have considered on appeal;

n Examine and copy, upon request and free of

charge, certain documents or information in the

Fund Office files that pertain to your appeal;

and

n Know the identity of any medical experts when

filing an appeal for a Disability Pension.

If you do not submit a request for review within 180

days, the decision on your application will be final

and binding.

appeals committee review of denial

The Board of Trustees has established an

Appeals Committee to make determinations on

appeals. When the Appeals Committee reviews

your application, it will take into account all

information you submit in making a decision. The

Appeals Committee will make its decision at the

appeal procedure

46

first quarterly meeting following receipt of your

appeal. However, if you submit an appeal less

than 30 days before the first scheduled Appeals

Committee meeting, the appeal will be decided

at the second scheduled quarterly Appeals Com-

mittee meeting. If there are special circumstances

requiring a delay in the decision, the decision may

be made at the third meeting after the Appeals

Committee receives your appeal. If the Appeals

Committee requires a postponement of the deci-

sion to the next meeting, you will receive a notice

describing the reason for the delay and an expect-

ed date of decision.

The Appeals Committee will notify you in writ-

ing within five days after the date of the quarterly

meeting in which the decision was made. The deci-

sion will include:

n The specific reasons for the decision;

n Specific reference to Plan provisions on which

the decision is based; and

n A statement notifying you:

� That you have the right to request a free

copy of all documents, records, and relevant

information;

� That if your appeal is denied you may bring a

lawsuit under ERISA; and

� That you must exhaust all Plan review proce-

dures before bringing a lawsuit.

If your appeal on a Disability Pension claim is

denied, the notice also will include a statement that

you have the right to:

n Receive a copy, free of charge and upon

request, of any internal rule, guideline, protocol,

or other similar criteria on which the denial was

based; and

n Know the identity of any medical experts con-

sulted in making a determination of your appeal

if the claim is denied on the basis of a medical

judgment. The Plan will consult with a health care

professional who has appropriate training and

experience in the field of medicine involved in the

medical judgment and was not consulted (or is

not subordinate to the person who was consulted)

in connection with the denial of your application.

The Board of Trustees has complete authority

and discretion to make all benefit determinations,

including the ability to interpret and apply the

terms of the Future Service Plan and the terms of

a merged Participating Plan. The decision of the

Board of Trustees regarding the appeal is final and

binding.

duty to exhaust appeals procedure Before filing Suit

If your application for benefits under the Plan has

been denied, in whole or in part, you must exhaust

the Plan’s appeal procedure as provided in this Sec-

tion prior to bringing any action for benefits in court.

47

n permanent Break in Service: If, before

you become eligible for a pension, you have

a Permanent Break in Service, as described

on page 12, you will lose any Vesting Service

and Pension Credit you earned before the

Permanent Break in Service. However, the

Plan may recognize credit under the terms of

a Reciprocity Agreement to help prevent you

from incurring a Permanent Break in Service;

see page 12.

n death: In the event of your death, no further

benefits will be paid to anyone else if you:

� Die while receiving a Single Life Annuity or

Level Income Annuity;

� Are receiving benefits under a 50% or 75%

Spouse Joint and Survivor Annuity and your

spouse dies before you;

� Were not married during the year preceding

your death and die before benefits begin; or

� Were married but your death occurs before

meeting the eligibility conditions for the Pre-

retirement Surviving Spouse Benefit.

n prohibited employment on or after the

date pension benefits begin: No pension

payments will be made while you work in Pro-

hibited Employment, see page 49.

n disability: Once a Disability Pension begins,

payments will continue as long as you continue

to be Totally and Permanently Disabled. Dis-

ability Pension payments will stop if:

� The Trustees determine that you are no lon-

ger Totally and Permanently Disabled;

� You engage in employment that is not con-

sidered by the Trustees to be for the pur-

poses of rehabilitation or is incompatible

with the definition of Total and Permanent

Disability; or

� The Trustees ask you to be examined by

a doctor or clinic and you do not have the

medical examination.

� You regain ability to engage in substantial

gainful activity.

n continuance of the plan: It is intended that

the Future Service Plan will continue indefi-

nitely. However, the Trustees reserve the right

to change the Future Service Plan:

� If it becomes necessary to discontinue the

Future Service Plan, the assets of the Future

Service Plan must be used to provide benefits

according to the Future Service Plan docu-

ment, but the amount of benefits may be less

than the amount otherwise calculated under

the terms of the Future Service Plan.

� In connection with a Plan termination, you

should also review the information on page

56 concerning the Pension Benefit Guaranty

Corporation. In the event that all obligations

are satisfied at the time the Future Service

Plan terminates, the Trustees may transfer

any surplus to any other fund, which quali-

fies for favorable tax treatment under the

Internal Revenue Code, and that was estab-

lished to provide benefits for Employees

or former Employees for whom Employers

were required to contribute to the Future

Service Plan.

you should be aware of the following circumstances that could cause you to lose or forfeit your benefits under the Future Service Plan.

circumStanceS cauSing loSS of BenefitS

48

n transfer of liabilities: Under some situa-

tions, a successor pension plan may agree to

assume the obligations of the Future Service

Plan with respect to benefits for an affected

group and, in that case, benefits are payable

only from the successor plan.

n internal revenue Service limitation: The

Internal Revenue Service requires the Future

Service Plan to place limitations on the maxi-

mum benefits you can receive. These limitations

are necessary for the Future Service Plan to

qualify for favorable tax treatment. Based on

the present benefit levels of the Future Service

Plan, it is unlikely that the amount of benefits

under the Future Service Plan alone would

exceed these maximums. However, the combi-

nation of pensions under several pension plans

may, in some unusual cases, result in the reduc-

tion of pension payments. If you think that a

combination of pensions from multiple plans

will exceed the maximum limits, you should

contact the Fund Office for more information.

n failure to provide needed information:

If you are receiving benefits from the Future

Service Plan, you must periodically certify

that you are:

� Living;

� Receiving your benefits; and

� Not working in Prohibited Employment.

If this information is not submitted to the Fund

Office, the Trustees will suspend payments until

such information is submitted.

n cessation of contribution to maintain

benefits: The Future Service Plan has been

designed on the assumption that contributions

will be made by Employers on an ongoing basis

at the level necessary to maintain a Unit Benefit

Value for each Benefit Group. If contributions

are not paid at the level necessary to support

benefits, the Trustees reserve the right to adjust

Unit Benefit Values that apply to Pension Cred-

it, pursuant to actuarial advice and consistent

with applicable law.

49

Certain types of employment will result in the with-

holding of your pension benefits for the period of

such employment or a delay in the beginning of

your pension. This type of employment is referred

to as “Prohibited Employment.” You will not

receive a pension payment for any month in which

you work in Prohibited Employment unless the law

requires. See the Age 70½ Distribution section on

page 50 for more information. Generally, you must

experience a termination of Covered Employment

in order for benefits to commence.

A retired Participant (other than Participants

in the Michigan UFCW Unions and Employers

Retiree Health & Welfare Fund) engages in Pro-

hibited Employment if he or she is reemployed

by the Employer from which he or she retired

without expe riencing at least a 30-consecutive day

absence from employment or self-employment

over which the Union claims jurisdiction and the

Participant’s Annuity Starting Date occurred dur-

ing this absence. If the Participant has attained

Normal Retirement Date, then the Plan can only

suspend benefits if the re employment satisfies

Normal Retirement Date crite ria described below.

More restrictive rules were in place before Decem-

ber 1, 1999. Information regard ing the Prohibited

Employment rules in effect before December 1,

1999 can be found in the Summary Plan Descrip-

tion in effect on that date or you can contact the

Fund Office for more information. Participants in

the Michigan UFCW Unions and Employers Retir-

ee Health and Welfare Fund can contact the Plan

Office for the rules that apply to them.

If you are retired and are not receiving a Disabil-

ity Pension, you may work at any type of job after

your pension benefit begins that is not considered

Prohibited Employment and continue to receive a

monthly pension. If you are receiving benefits from

the Fund, you may periodically be asked to submit

a notice that you are receiving your pension benefits

and are not working in Prohibited Employment. If

this notice is not submitted to the Fund Office with-

in 60 days of the request, your pension benefits will

be suspended until the notice is submitted.

participants Who continue Working after normal retirement date or re-enter covered employment after retiring

If you do not retire, you will engage in Prohibited

Employment if you continue working with your

Employer after your Normal Retirement Date for

each month in which you work at least 40 hours per

month (or equivalent for shift work):

n In the same industry in which Participants

worked when benefits could have commenced;

n In the same trade or craft covered by the Plan (or

supervisory activities relating to that work); and

n In the geographic area covered by the Plan.

If you have engaged in Prohibited Employment,

your benefits for each month you continue to work

in Prohibited Employment will be permanently

withheld. For purposes of determining whether

your work is Prohibited Employment, work and

non-work hours for which you are paid will be

counted. The Plan will notify you when benefits

will be permanently withheld. The notice will

include a description of the specific reason for the

withholding, a description and copy of the relevant

Plan provisions, reference to the applicable Depart-

ment of Labor regulation and a summary of the

Plan’s appeal procedures.

proHiBited employment during retirement

50

Prohibited Employment and Disability Pensions

Disability pensioners may not perform any work

for wage or profit, and their Disability Pensions

will be stopped, unless the Board of Trustees deter-

mines that such work is primarily for rehabilita-

tion purposes or is not inconsistent with Total and

Permanent Disability. If you are on a Disability

Pension and you perform work, you will not be

considered Totally and Permanently Disabled and

your Disability Pension will be stopped.

notifying the plan of Work after retirement

It is your responsibility to notify the Fund Office,

in writing, of any work you do after retirement for

an Employer participating in the National Pension

Fund, regardless of the number of hours you work

in a month. You should obtain an advance determi-

nation from the Fund Office of whether the particu-

lar type of employment is Prohibited Employment.

Based on investigation of the work, the Board of

Trustees will determine whether the work is Pro-

hibited Employment that will result in a suspension

of your benefits. If you disagree with a determination,

you have the right to request a review. The request

for review will be processed in the same way as an

appeal of a pension denial (see page 45).

Suspension of Benefits during prohibited employment

If the Board of Trustees becomes aware that you

are working and you have not provided sufficient

information for a determination of whether pen sion

payments should be withheld because of Pro hibited

Employment, the Board of Trustees will assume

that you are working in Prohibited Employ ment

and your pension payments will be withheld until

such time that you prove that such work was not in

Prohibited Employment.

delay of pension payments due to prohibited employment

If you qualify for a pension but are working in Pro-

hibited Employment when your pension is sched uled

to start, the date your pension begins will be post-

poned until you stop working in Prohibited Employ-

ment or, if earlier, the April 1 of the calendar year

following the calendar year in which you reach age

70½. The above rules, describing Prohibited Employ-

ment for a pensioner, also apply to a pension appli-

cant, except that the date on which you would have

received a pension if you did not work in Prohibited

Employment is substituted for your retirement date.

Age 70½ Distribution

In general, the suspension of benefit rules do not

apply after the April 1 of the calendar year follow-

ing the calendar year in which you reach age 70½.

reinstatement of Suspended pension payments

If you work in Prohibited Employment and then

want to re-enter retirement and resume receiving

pension benefits, you must notify the Fund Office at

least 30 days before the date you want pension pay-

ments to be reinstated. While you will be entitled to

receive pension payments beginning the month fol-

lowing the last month of Prohibited Employment, the

actual payment may not be made until the first day

of the fourth month following the month in which

you stopped working in Prohibited Employment or,

if later, 30 days after the Fund Office receives your

written request to have the pension reinstated.

NOTE: If you are a pensioner or surviving spouse

receiving benefits from the National Pension Fund,

you must notify the Board of Trustees of any

change of address. Payments may be withheld until

such notice is given.

repaying Benefits paid during prohibited employment

It is important for you to understand that if you

work in Prohibited Employment and receive pen-

sion benefits, you are obligated to repay the pen-

51

sion amount received for any month in which you

worked in Prohibited Employment. The Fund has

the right to recover pension payments that were

improperly paid during a period of Prohibited

Employment, including the right to offset against

future benefit payments. This means subsequent

monthly pension payments will be reduced until the

improper payments are collected by the Fund.

recalculation of pension

Benefit after Suspension

If you work in Prohibited Employment, you may

earn additional Pension Credit. Your pension benefit

will be recalculated when you retire again to include

any additional Pension Credit you earn. If you origi-

nally retired on an Early Retirement Pension, your

recalculated pension will be actuarially adjusted to

take into account the benefit payments received

before your Prohibited Employment. Additional

benefit accruals will be offset by the value of pension

payments received if you retire on or after July 1,

2007 or your Normal Retirement Date.

In no event will the recalculation of your pension

benefit allow you to have more Pension Credit than

the maximum years of Pension Credit allowed by

the Future Service Plan based upon your original

retirement date. Your Pension Credit, up to this

maximum, which produces the highest benefit will

be used to recalculate your pension amount.

52

How are aucrs determined?

The AUCRs are established based on detailed

actuarial studies that calculated the pension ben-

efits that could be paid on a sound financial basis.

The calculations take into account:

n Age of Participants in the group;

n Pension Credit of Participants in the group;

n The employment characteristics of the industry;

n Contribution rates; and

n Other actuarially significant information.

What are some of the advantages of the future Service plan?

There are many advantages to a large pension fund

covering the entire nation, including:

n portability of pension credit: If you work

for an Employer in one part of the country and

you move to another location, you may still be

covered by the Future Service Plan if employment

in the new location is with an Employer. This also

means that you may change from one Employer

to another and continue to earn Pension Credit as

long as contributions are required to be made for

your work to the Future Service Plan.

n economical pension fund administration:

There are savings in cost for administration and

professional fees through the use of a single large

fund instead of a number of smaller separate funds.

These savings help to provide higher benefits to

Participants who retire.

n uniform eligibility rules: There are uniform

eligibility rules for pensions regardless of where

you work.

n central administration: The central admin-

istration for the Future Service Plan avoids the

necessity of setting up many fund offices and

record-keeping systems.

n federal law requirements: Federal law

requirements need to be met only once through

the Future Service Plan rather than many times for

separate plans.

if i leave covered employment before becoming vested, will i receive a refund of the money paid to the future Service plan on my behalf by my employers?

No. The Future Service Plan pays benefits only to

eligible Vested Participants.

can i receive pension payments and accident and sickness benefits for the same period?

No. You are not entitled to a pension for any

month or any part of a month for which you receive

a weekly accident and sickness (loss of time) ben-

efit under an employer sick pay or wage continua-

tion benefit plan.

if i owe money, can i sign over my retire-ment benefits?

No. With few exceptions, the Plan prohibits you

from making an assignment, pledge, or in any way

disposing of pension payments. This is done for

your protection.

can my pension benefits be attached or gar-nished by my creditors?

Generally, pension payments are not subject to gar-

nishment or attachment by creditors. However, there

is an exception to this rule for alimony, child support,

or other payments to a former spouse, child, or other

dependent if required under a Qualified Domestic

Relations Order (QDRO) issued by a court in accor-

dance with state domestic relations law.

A QDRO must meet certain requirements set

forth in the Internal Revenue Code of 1986 and

the Employee Retirement Income Security Act of

QueStionS and anSWerS

53

1974. A QDRO may require the Plan to pay a por-

tion of your benefits to a former spouse or child

(known as an alternate payee). Furthermore, a

QDRO may provide that a former spouse be treat-

ed as the surviving spouse for purposes of the sur-

vivor annuities payable from the Fund. A QDRO

may not require the Fund to provide any type or

form of benefit or any option not otherwise provid-

ed under the Future Service Plan.

When the Fund Office receives a judgment, decree,

or order (including court approval of a property set-

tlement agreement) that would require the Future

Service Plan to pay all or a portion of benefits to an

alternate payee pursuant to state domestic relations

law, the Fund Office will notify you and the pro-

spective alternate payee of the procedures for deter-

mining whether the order is a QDRO. The Future

Service Plan can only pay benefits to an alternate

payee if the Fund Administrator determines that

the court order meets all the requirements to be a

QDRO. Contact the Fund Office if you would like

additional information about QDROs, including a

copy of the Fund’s QDRO procedures.

Who administers the future Service plan?

The Future Service Plan is administered by the

Board of Trustees, appointed by the Union and the

Employers in accordance with the requirements of

federal law. The Board of Trustees manages the

Future Service Plan in accordance with an Agree-

ment and Declaration of Trust, which provides that

the money contributed by the Employers to the Fund

can be used only to provide benefits for Participants

and their beneficiaries covered by the Future Service

Plan and to pay administrative expenses.

54

plan name and type: This Future Service Plan is

the United Food & Commercial Workers Interna-

tional Union-Industry Future Service Pension Plan.

This Plan is a defined benefit plan.

Board of trustees: A Board of Trustees is responsi-

ble for the operation of the Future Service Plan. The

Board of Trustees consists of Employer and Union

representatives selected by the Employers and the

Union that have entered into collective bargaining

agreements that relate to this Future Service Plan. If

you wish to contact the Board of Trustees, you may

use the address and telephone number below:

Board of Trustees

United Food & Commercial Workers

International Union-Industry Pension Fund

P.O. Box 6000

Frankfort, Illinois 60423-6000

800-531-2385 www.ufcwnpf.org

the trustees of this plan are:

Union Trustees

Anthony M. Perrone, ChairmanInternational Secretary/TreasurerUnited Food and CommercialWorkers International Union1775 K Street, N.W. Washington, DC 20006

David S. BlitzsteinSpecial Assistant for Multiemployer FundsCollective Bargaining DepartmentUFCW International Union1775 K Street, N.W.Washington, DC 20006

Kenneth R. Boyd International Vice President and President, UFCW Local 1546 1649 West Adams Chicago, IL 60612

Richard O. CharettePresident, UFCW Local 144530 Stergis WayDedham, MA 02026

William T. McDonoughInternational Executive Vice PresidentCollective Bargaining Department DirectorUnited Food and Commercial WorkersInternational Union1775 K Street, N.W.Washington, DC 20006

Roger Robinson President, UFCW Local 876 876 Horace Brown Drive Madison Heights, MI 48071

Employer Trustees

Walter B. Blake, Secretary 4241 S. Meadowbrook Lane Evergreen, CO 80439

Stephen T. Brown 13 Tomahawk Drive Wayne, NJ 07470

Richard D. Cox Senior Vice President – Labor Relations Safeway Inc. 5918 Stoneridge Mall Road Pleasanton, CA 94588-3229

Richard A. Manka 11115 Ash StreetLeawood, KS 66211

Michele A. MurphyExecutive Vice PresidentHuman Resources & Corporate CommunicationsSUPERVALU, Inc.7075 Flying Cloud DriveEden Prairie, MN 55344

William M. Vaughn, IIIP. O. Box 74Sherborn, MA 01770

important factS aBout tHe future Service plan

55

Alternate Union Trustees

David P. Fleming President, UFCW Local 328 278 Silver Spring Street Providence, RI 02904

Robert W. GrauvoglPresident, UFCW Local 8809199 Market Place, Suite 2Broadview Heights, OH 44147

Ronald M. PetronellaSecretary-Treasurer, UFCW Local 371290 Post Road WestWestport, CT 06880

Johnny RodriguezInternational Vice PresidentPresident, UFCW Local 54017780 Preston RoadDallas, TX 75252

Marvin D. Russow President, UFCW Local 2273330 Pinecroft DriveLouisville, KY 40219-3055

Alternate Employer Trustees

Scott M. Henderson

Vice President, Treasurer

The Kroger Company

1014 Vine Street

Cincinnati, OH 45202

Ward R. Kraemer

Vice President

Retirement Plans and Compensation

The Stop & Shop Supermarkets Company

1385 Hancock Street

Quincy, MA 02169

Donald G. Schaper

Director Labor Relations

Schnuck Markets, Inc.

11420 Lackland Road

St. Louis, MO 63146

John A. Wagner

Vice President – Labor Relations

The Kroger Company

1014 Vine Street

Cincinnati, Ohio 45202 -1100

plan administrator: The Board of Trustees is

the Plan Administrator. This means that the Board

of Trustees is responsible for seeing that informa-

tion regarding the Future Service Plan is reported

to government agencies and disclosed to Future

Service Plan Participants and beneficiaries in accor-

dance with the requirements of ERISA. The Board

of Trustees has broad discretion to determine eligi-

bility for benefits and to interpret Plan language.

The Board of Trustees has engaged the professional

administrative firm of Zenith American Solutions,

Inc. to provide the day-to-day administrative ser-

vices necessary for the operation of the Future Ser-

vice Plan. Zenith American Solutions is referred to

as the Fund Administrative Manager, or the Fund

Office, and its address and telephone number is the

same as the Board of Trustees.

plan Sponsor: The Board of Trustees is the Plan

Sponsor.

participating employers: A list of Employers par-

ticipating under the Future Service Plan and their

addresses is maintained by the Fund Administrative

Manager. You may obtain information as to wheth-

er or not an employer is a participating Employer

in the Future Service Plan by contacting the Fund

Administrative Manager.

identification numbers: The number assigned to

the Future Service Plan by the Board of Trustees

pur suant to instructions of the Internal Revenue

Service is 001.The number assigned to the Board

of Trustees by the Internal Revenue Service is

51-6055922.

agent for Service of legal process: C.T. Cor-

poration is the Future Service Plan’s agent for ser-

56

vice of legal process. Accordingly, if legal disputes

involving the Future Service Plan arise, any legal

documents should be served upon C.T. Corpora-

tion, 208 South LaSalle Street, Suite 814, Chicago,

Illinois 60604 or upon any individual Trustee.

collective Bargaining agreement: The Future

Service Plan is maintained pursuant to collective

bargaining agreements between the Employers and

Local Unions. The Fund Administrative Manager

will provide, upon written request, information as to

whether a particular employer is contributing to the

Future Service Plan on behalf of Participants work-

ing under the collective bargaining agreements.

Source of contributions: The benefits described

in this booklet are provided through Employer con-

tributions. The provisions of the collective bargain-

ing agreements determine the amount of Employer

contributions and the Employees on whose behalf

contributions are made. Employee contributions

are not allowed.

plan assets and reserves: The Board of Trust-

ees holds all assets of the Future Service Plan in

trust for the purpose of providing benefits to eli-

gible Participants and defraying reasonable admin-

istrative expenses. The Future Service Plan assets

and reserves are invested through professional

investment managers and insurance companies

selected by the Trustees.

plan year: The records of the Future Service Plan

are kept separate for each Plan Year. The Plan

Year begins July 1 and ends June 30.

continuation of the plan: It is intended that

the Future Service Plan will continue indefinitely

and meet foreseeable situations that may occur.

However, the Trustees reserve the right to change

the Future Service Plan. If it becomes necessary to

discontinue the Future Service Plan, the Trustees

will use the assets of the Future Service Plan only

to provide benefits according to the Future Service

Plan document and federal law. If the Trustees take

any action to change or discontinue the Plan, you

will be informed of the changes in writing.

pension Benefit guaranty corporation: Your

pension benefits under this multiemployer plan are

insured by the Pension Benefit Guaranty Corpora-

tion (PBGC), a federal insurance agency. A multi-

employer plan is a collectively bargained pension

arrangement involving two or more unrelated

employers, usually in a common industry.

Under the multiemployer plan program, the PBGC

provides financial assistance through loans to plans

that are insolvent. A multiemployer plan is consid-

ered insolvent if the plan is unable to pay benefits

(at least equal to the PBGC’s guaranteed benefit

limit) when due.

The maximum benefit that the PBGC guarantees

is set by law. Under the multiemployer program,

the PBGC guarantee equals a Participant’s years of

service multiplied by (1) 100% of the first $11 of the

monthly benefit accrual rate and (2) 75% of the next

$33.The PBGC’s maximum guarantee limit is $35.75

per month times a Participant’s years of service. For

example, the maximum annual guarantee for a retiree

with 30 years of service would be $12,870.

The PBGC guarantee generally covers:

n Normal and early retirement benefits;

n Disability benefits if you become disabled

before the Plan becomes insolvent; and

n Certain benefits for your survivors.

The PBGC guarantee generally does not cover:

n Benefits greater than the maximum guaranteed

amount set by law;

n Benefits based on Plan provisions that have

been in place for fewer than five years at the

earlier of:

57

� The date the Plan terminates; or

� The time the Plan becomes insolvent;

n Benefits that are not vested because you have

not worked long enough;

n Benefits for which you have not met all of the

requirements at the time the Plan becomes

insolvent; and

n Non-pension benefits, such as health insurance,

life insurance, certain death benefits, vacation

pay and severance pay.

For more information about the PBGC and the

benefits it guarantees, ask your Plan Administrator

or contact:

PBGC’s Technical Assistance Division

1200 K Street N.W., Suite 930

Washington, D.C. 20005-4026

You may also call the PBGC at 202-326-4000 (not

a toll-free number). TTY/TDD users may call the

federal relay service toll-free at 800-877-8339 and

ask to be connected to 202-326-4000. Additional

information about the PBGC’s pension insurance

program is available through the PBGC’s web site

on the Internet at www.pbgc.gov.

rights and responsibilities: The benefits are

paid in accordance with the Future Service Plan

provisions from a trust fund that is used solely for

that purpose. If you have any questions or prob-

lems about benefit payments, you have the right to

get answers from the Trustees who administer the

Future Service Plan.

The same basic rights have been incorporated in

the Employee Retirement Income Security Act of

1974 (ERISA) for application to all benefit plans

and are described beginning on page 58.

58

Statement of eriSa rigHtS

As a Participant in the United Food & Commercial

Workers International Union-Industry Pension

Fund Future Service Plan, you are entitled to cer-

tain rights and protections under the Employee

Retirement Income Security Act of 1974 (ERISA).

ERISA provides that all Plan Participants be enti-

tled to the following rights.

receive information about your plan and Benefits

You have the right to:

n Examine, without charge, at the Plan Adminis-

trator’s office and at other specified locations,

such as worksites and Union halls, all docu-

ments governing the Plan, including insurance

contracts, collective bargaining agreements, and

a copy of the latest annual report (Form 5500

series) filed by the Plan with the U.S. Depart-

ment of Labor, which is available at the Public

Disclosure Room of the Employee Benefits

Security Administration (EBSA).

n Obtain, upon written request to the Plan

Administrator, copies of documents governing

the operation of the Plan, including insurance

contracts, collective bargaining agreements, and

copies of the latest annual report (Form 5500

series) and updated summary plan description.

The Plan Administrator may make a reasonable

charge for the copies.

n Receive a summary of the Plan’s annual funding

status. The law requires the Plan Administrator

to furnish each Participant with a copy of this

annual funding notice.

n Obtain a statement telling you whether you

have a right to receive a pension at your Normal

Retirement Date (generally age 65) and if so,

what your benefits would be at your Normal

Retirement Date if you stop working under the

Plan now. If you do not have a right to a pen-

sion, the statement will tell you how many more

years you have to work to get a right to a pen-

sion. This statement must be requested in writ-

ing and is not required to be given more than

once every 12 months. 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 the people who are

responsible for the operation of the employee

benefit plan. The people who operate your Plan,

called fiduciaries of the Plan, have a duty to do so

prudently and in the interest of you and other Plan

Participants and beneficiaries. No one, including

your Employer, your Union, or any other person,

may fire you or otherwise discriminate against

you in any way to prevent you from obtaining a

pension benefit or exercising your rights under

ERISA.

enforce your rights

If your claim for a pension 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 the Plan documents or the lat-

est annual report from the Plan and do not receive

them within 30 days, you may file suit in a fed-

eral court. In such a case, the court may require

the Plan Administrator to provide the materials

and pay you up to $110 a day until you receive

the materials, unless the materials were not sent

because of reasons beyond the control of the Plan

Administrator.

59

If you have a claim for benefits that 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 quali-

fied 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 dis-

criminated 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 these costs and fees,

for example, if it finds your claim is frivolous.

assistance With your Questions

If you have any questions about your Plan, you

should contact the Plan Administrator. If you have

any questions about this statement or about your

rights under ERISA, or if you need assistance in

obtaining documents from the Plan Administra-

tor, you should contact the nearest office of the

Employee Benefits Security Administration, U.S.

Department of Labor, 200 Constitution Avenue

N.W., Washington, DC 20210.

You may also obtain certain publications about

your rights and responsibilities under ERISA by

calling the publications hotline of the Employee

Benefits Security Administration.

60

appendix

National Pension Fund

61

n United Food and Commercial Workers Local 347 and Employers Pension Fund (participation began on

April 1, 1988; merger effective April 30, 1990).

n United Food and Commercial Workers Local 539 Pension Fund (merger effective April 1, 1988).

n Michigan United Food and Commercial Workers Unions and Food Employers Joint Pension Fund

(Locals 876 and 951) (participation began on January 1, 1990; merger effective April 3, 1990).

n Michigan United Food and Commercial Workers Unions and Drug Mercantile Employers Joint Pension

Fund (Locals 876 and 951) (participation began on January 1, 1990; merger effective April 3, 1990).

n First National Supermarkets, Inc. Part-time Employees’ Pension Plan (Locals 328, 371 and 1445)

(merger effective May 1, 1995).

n New England UFCW and Employers Pension Plan (merger effective February 1, 1999).

n Sausage Makers and Packinghouse Workers Pension Plan (participation began on July 1, 1998; merger

effective June 1, 2001).

Benefits accrued under a merged Participating Plan are subject to the provisions of that plan immediately

before participation in the Future Service Plan.

as of July 1, 2013, the Participating Plans that have adopted the Future Service Plan for Future Service only benefits are:

n United Food and Commercial Workers Local 88 Pension Fund (participation began January 1, 1986).

n Wisconsin Employees Pension Trust (participation began December 1, 1988).

n United Food and Commercial Workers Local 342-50 Pension Fund (participation began January 1, 1996).

n Production Service and Sales District Council Pension Fund (participation began January 1, 2002).

For more information on Participating Plans, please see page 2.

as of July 1, 2013, the Participating Plans that merged into the Future Service Plan are:

appendix a—participating planS

appendix

62

appendix B—reciprocity agreementS

reciprocity Agreements Signed as of July 1, 2013:

fund name effective date

Central Ohio UFCW Unions and Retail Employers Pension Fund1 10/25/88

Denver Area Independent Meat Packers and Butcher Workmen’s Pension Fund 01/01/88

Denver Area Meat Cutters and Employers Pension Fund 01/01/89

Desert States Employers & UFCW Unions Pension Fund 01/01/952

Employers and UFCW Local 534 Meat Employees Pension Fund 08/01/97

Food Employers Labor Relations Association (FELRA) & UFCW Pension Fund (Baltimore) 06/29/90

Fulton Fish Market Pension Fund 03/09/05

Indiana Area UFCW Unions and Retail Food Employers Joint Pension Trust Fund1 11/02/88

Intermountain Retail Food Industry Pension Trust Fund 09/28/89

Intermountain Retail Store Employees Pension Fund 01/01/89

Local 50 Trust Fund 08/01/00

Meat Cutters’ Union Local No. 88 and Food Employers’ and Allied Industry Pension Fund 05/24/95

New England UFCW and Employers Pension Fund 01/01/89

Northwest Ohio UFCW Union and Employers Joint Pension Fund1 01/01/97

Ohio Meatpackers, Meat Cutters & Butcher Workmen Pension Fund 11/11/89

Oregon Federation of Butchers Pension Trust 02/21/01

Retail Clerks Pension Trust (Washington)3 12/01/89

Retail Clerks Specialty Stores Pension Fund 10/23/02

Retail Drug Employees Pension Trust3 10/01/00

Retail Food Employers and UFCW Local 711 Pension Trust Fund 05/01/93

Rocky Mountain UFCW Unions and Employers Pension Trust Fund 10/20/88

Sausage Makers and Packinghouse Workers Pension Fund (Ohio) 04/01/88

Smoked Fish Workers Local 635 Retirement Fund 08/01/00

UFCW Consolidated Pension Fund1 01/01/12

UFCW District Union Local 2 and Employers Pension Fund 03/01/08

UFCW Local One Pension Fund4 11/01/88

UFCW Local One Western New York Pension Fund 11/01/88

UFCW Local 23 and Employers Pension Fund 09/09/88

UFCW Local 23 and Giant Eagle Pension Fund 12/02/92

UFCW Local 56 Retail Meat Pension Plan 09/28/04

UFCW Local 400 Meat and Poultry Pension Fund 12/11/01

UFCW Local 534 and Employers Grocery Employees Pension Fund 08/01/97

UFCW Local 1245 Labor-Management Pension Fund 07/16/96

UFCW Local 1439 & Food Industry Retirement Savings Fund 08/20/00

UFCW Local 1546 Pension Fund5 09/01/89

UFCW Local Unions and Employers Pension Plan of Southwestern Ohio Area Pension Fund 07/01/89

63

appendix B—reciprocity agreementS

effective date

UFCW Northern California Employers Joint Pension Plan 01/01/05

UFCW Pension Fund of Northeastern Pennsylvania 05/01/05

UFCW Union Local 227 and Employers Pension Fund 10/20/00

UFCW Union Local 655, AFL-CIO, Food Employers Joint Pension Fund 01/18/89

UFCW Union Local 880 - Mercantile Employers Joint Pension Fund 07/01/88

UFCW Union Local 880 - Retail Food Employers Joint Pension Fund 07/01/88

UFCW Union Local 919 and Contributing Employers Food Pension Fund 02/19/93

UFCW Union-Employer Pension Fund (Akron, OH) 07/01/88

UFCW Union and Wisconsin Meat and Allied Industry Pension Fund 01/01/89

UFCW Unions and Employers Midwest Pension Fund 10/04/89

UFCW Unions and Employers Pension Fund (Atlanta)1 07/01/88

UFCW Unions and Employers Pension Fund (Milwaukee) 01/01/89

UFCW Unions and Food Employers Pension Fund of Central Ohio 10/26/88

UFCW Unions and Participating Employers Pension Fund 09/29/04

Washington Meat Industry Pension Trust 12/01/89

1 Effective December 31, 2011, the following funds merged and became the UFCW Consolidated Pension Fund: - UFCW Unions and Food Employers Pension Fund of Central Ohio - Indiana Area UFCW Unions and Retail Food Employers Joint Pension Trust Fund - Northwest Ohio UFCW Union and Employers Joint Pension Fund - UFCW Unions and Employers Pension Fund (Atlanta)2 Or the effective date of a Predecessor Agreement (Rocky Mountain UFCW Unions & Employers Pension Plan).3 Effective October 1, 2008, the Retail Drug Pension Trust merged with the Retail Clerks Pension Trust (Washington).4 Formerly UFCW District Union Local One Pension Fund.5 Formerly UFCW Local 100A Pension Fund.

64

appendix c1 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/84 through 6/30/87

1 New England and New York State [Locals 15, 328, 371, 385, 592, 1445] Retail $3.58 $0.0210 Packing $3.11 $0.0180 Other $3.46 $0.0200

2 New York City and Northern New Jersey [Locals 5, 174, 342, 464A] Retail $4.78 $0.0280 Packing $3.46 $0.0200 Other $4.30 $0.0250

3 Eastern Pennsylvania, Southern New Jersey and Delaware [Locals 56, 72, 295] Packing $2.92 $0.0170 Other $2.92 $0.0170

5 Western Pennsylvania and Eastern Ohio [Locals 17, 23, 880] Retail $3.46 $0.0200 Packing $3.75 $0.0220 Other $3.46 $0.0200

6 Kentucky and West Virginia [Local 227]

Retail $3.11 $0.0180 Other $2.54 $0.0150

7 Western Ohio [Locals 7, 346, 610, 626, 1099]

Retail $3.11 $0.0180 Packing $3.11 $0.0180 Other $3.11 $0.0180

8 Indiana [Locals 37, 280, 398, 917]

Retail $3.46 $0.0200 Packing $3.75 $0.0220 Other $3.75 $0.0220

appendix c—appropriate unit contriBution rateS (aucrs)

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

65

appendix c1 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/84 through 6/30/87

9 Michigan [Locals 26, 539]

Retail $4.30 $0.0250 Packing $3.46 $0.0200

10 Illinois, Wisconsin and Eastern Iowa [Locals P40, 73A, 99A, 189, 225, 253, 431, P500, 543, 546, P1218]

Retail $3.46 $0.0200 Packing $3.11 $0.0180 Other $3.11 $0.0180

11 Minnesota [Locals P4, P6, 12A, P160, 789]

Retail $3.58 $0.0210 Packing $4.30 $0.0250 Other $3.31 $0.0190

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, P176, 271, 304, 310, 394, 440]

Retail $3.75 $0.0220 Packing $4.09 $0.0240 Other $4.09 $0.0240

13 Eastern Missouri [Local 655]

Packing $4.09 $0.0240 Other $4.09 $0.0240

14 Western Missouri and Kansas [Locals P20, P58, 340, 576] Retail $3.58 $0.0210 Packing $4.09 $0.0240 Other $3.31 $0.0190

15 Colorado, Wyoming and Arizona [Local 109] Retail $3.46 $0.0200

16 Nevada and Utah [Local 711] Packing $4.92 $0.0290

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

66

appendix c1 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/84 through 6/30/87

17 Washington, Oregon, Idaho, Montana, and Alaska [Local 368] Other $1.76 $0.0100

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 76, 210, 327, 408, 425, 540, 606, 1564] Retail $3.46 $0.0200 Other $2.68 $0.0160

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 157, 278, 405, 442, 525, P1224, 1529, 1625] Retail $3.46 $0.0200 Packing $3.11 $0.0180 Other $2.12 $0.0120

22 Hawaii [Local 594] Retail $3.46 $0.0200

Certain Part-Time Groups1 $1.65 $0.0100

Local 88 Pension Fund2 [Monthly] $3.40 ---

Local 88 Pension Fund2 [Hourly] --- $0.0120

1 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time-Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer.

2 The Local 88 Pension Fund began participation on January 1, 1986.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

67

appendix c2 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/87 through 6/30/90

1 New England and New York State [Locals 15, 328, 371, 592, 1445/385] Retail $3.40 $0.0200 Packing $2.91 $0.0170 Other $3.56 $0.0210

2 New York City and Northern New Jersey [Locals 5, 174, 342, 464A] Retail $4.53 $0.0270 Packing $3.56 $0.0210 Other $3.89 $0.0230

3 Eastern Pennsylvania, Southern New Jersey and Delaware [Locals 56, 72, 1357/295] Packing $2.75 $0.0160 Other $3.08 $0.0180

5 Western Pennsylvania and Eastern Ohio [Locals 17, 23, 880] Retail $3.56 $0.0210 Packing $3.89 $0.0230 Other $3.08 $0.0180

6 Kentucky [Local 227] Retail $2.91 $0.0170 Other $2.75 $0.0160

7 Western Ohio [Locals 7, 626, 1059/346, 1099/610] Retail $2.91 $0.0170 Packing $2.91 $0.0170 Other $2.75 $0.0160

8 Indiana [Locals 37, 280, 550R/398, 917] Retail $3.08 $0.0180 Packing $3.40 $0.0200 Other $3.40 $0.0200

9 Michigan [Locals 26, 539]1

Retail $4.05 $0.0240 Packing $3.24 $0.0190

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

68

appendix c2 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/87 through 6/30/90

10 Illinois, Wisconsin and Eastern Iowa [Locals P40, 73A, 99A, 100/P500, 189, 225/219, 253, 431, 543, 546, P1218] Retail $3.24 $0.0190 Packing $3.40 $0.0200 Other $3.24 $0.0190

11 Minnesota [Locals P4, P6, 12A, P160, 789] Retail $3.08 $0.0180 Packing $4.37 $0.0260 Other $3.24 $0.0190

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, P176, 271, 304, 310, 394, 440] Retail $3.40 $0.0200 Packing $3.72 $0.0220 Other $3.56 $0.0210

13 Eastern Missouri [Local 655] Packing $4.86 $0.0290 Other $4.86 $0.0290

14 Western Missouri and Kansas [Locals P58/P20, 340, 576] Retail $3.40 $0.0200 Packing $3.24 $0.0190 Other $3.89 $0.0230

15 Colorado, Wyoming and Arizona [Locals 99R/109] Retail $3.03 $0.0180

17 Washington, Oregon, Idaho, Montana, and Alaska [Local 368] Other $1.62 $0.0095

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 76, 210/327, 408, 425, 540, 606, 1564] Retail $3.24 $0.0190 Other $2.43 $0.0140

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

appendix c2 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/87 through 6/30/90

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 400/157, 204/525, 278, 405, 442, 1529, 1625] Retail $3.08 $0.0180 Packing $3.24 $0.0190 Other $2.75 $0.0160

22 Hawaii [Local 480/594] Retail $3.40 $0.0200

Special Groups Certain Part-Time Groups2 $1.53 $0.0090 Local 88 Pension Fund [Monthly] $3.40 --- Local 88 Pension Fund [Hourly] --- $0.0120 Local 347 Pension Fund3 $2.38 $0.0140 Michigan Food and Drug Funds4 $2.89 $0.0170 Wisconsin Employers Pension Trust5 $3.58 $0.0210

1 The Local 539 Pension Fund began participation on April 1, 1988.2 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time

Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer.

3 The Local 347 Pension Fund began participation on April 1, 1988.4 The Michigan Food and Drug Funds began participation on January 1, 1990.5 Wisconsin Employers Pension Trust began participation on December 1, 1988.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

69

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

70

appendix c3 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/90 through 6/30/91

1 New England and New York State [Locals 15, 328, 371, 592, 1445] Retail $2.57 $0.0151 Packing $2.07 $0.0122 Other $2.64 $0.0155

2 New York City and Northern New Jersey [Locals 174, 342-50, 464A] Retail $2.89 $0.0170 Packing $2.67 $0.0157 Other $2.94 $0.0173

3 Eastern Pennsylvania, Southern New Jersey and Delaware [Locals 56, 72, 1776/1357] Packing $1.79 $0.0105 Other $1.86 $0.0109

5 Western Pennsylvania and Eastern Ohio [Locals 17, 23, 880] Retail $2.79 $0.0164 Packing $2.12 $0.0125 Other $1.75 $0.0103

6 Kentucky [Local 227] Retail $2.48 $0.0146 Other $2.18 $0.0128

7 Western Ohio [Locals 7, 626, 1059, 1099] Retail $2.57 $0.0151 Packing $2.19 $0.0129 Other $1.52 $0.0089

8 Indiana [Locals 37, 280, 550R, 917] Retail $2.45 $0.0144 Other $2.77 $0.0163

9 Michigan [Locals 26, 539]1

Retail $3.77 $0.0222 Packing $2.77 $0.0163

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

71

appendix c3 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/90 through 6/30/91

10 Illinois, Wisconsin and Eastern Iowa [Locals 73A/P40, 99A, 100/P500, 253, 431, 536/543, 546, 881/225, P1218, 1444, 1540/189] Retail $2.90 $0.0171 Packing $2.51 $0.0148 Other $2.31 $0.0136

11 Minnesota [Locals P6, 12A, P160, 789/P4] Retail $2.60 $0.0153 Other $2.53 $0.0149

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, P176, 271/440, 304, 310, 394] Retail $2.27 $0.0134 Packing $2.91 $0.0171 Other $2.24 $0.0132

13 Eastern Missouri [Local 655] Packing $3.55 $0.0209

14 Western Missouri and Kansas [Locals P58/P20, 340, 576] Retail $3.02 $0.0178 Packing $2.40 $0.0141 Other $2.73 $0.0161

15 Colorado, Wyoming and Arizona [Local 99R] Retail $2.66 $0.0156

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 76, 210, 408, 425, 540, 606, 1564] Retail $2.18 $0.0128 Other $0.80 $0.0047

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 204, 278, 400, 405, 442, 1529, 1625] Retail $2.16 $0.0127 Packing $2.51 $0.0148 Other $1.44 $0.0085

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

72

appendix c3 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/90 through 6/30/91

22 Hawaii [Local 480] Retail $2.70 $0.0159

Special Groups

Certain Part-Time Groups2 $1.39 $0.0082 Local 88 Pension Fund [Monthly] $3.02 --- Local 88 Pension Fund [Hourly] --- $0.0118 Local 347 Pension Fund $2.32 $0.0136 Michigan Food and Drug Funds $2.89 $0.0170 Wisconsin Employers Pension Trust $2.43 $0.0140

Miscellaneous Groups [Chesapeake Enterprises $1.32 $0.0078 (Lee’s Contracting/Delta Food Service), Foodland (Ambridge, Center Township, East Rochester, New Brighton, Tusca Plaza), Heartland-Purity Supreme, Idaho Animal Products, etc.]

1 The Local 539 Pension Fund is included in Geographic Area 9.

2 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

73

appendix c4

united food & commercial Workers international union-industry pension fund

aucrs for the period 7/1/91 through 6/30/94

1 New England and New York State [Locals 328, 371, 1445/15/592] Retail $2.35 $0.0138 Packing $1.77 $0.0104 Other $2.25 $0.0132

2 New York City and Northern New Jersey [Locals 174, 342-50, 464A] Retail $2.28 $0.0134 Packing $2.52 $0.0148 Other $2.10 $0.0124

3 Eastern Pennsylvania, Southern New Jersey, and Delaware [Locals 56, 72, 1776, 2001] Retail $1.55 $0.0091 Packing $1.68 $0.0099 Other $1.66 $0.0098

5 Western Pennsylvania and Eastern Ohio [Locals 17, 23, 27, 880] Retail $2.69 $0.0158 Packing $1.93 $0.0114 Other $1.39 $0.0082

6 Kentucky [Local 227] Retail $2.38 $0.0140 Other $1.95 $0.0115

7 Western Ohio [Locals 7, 626, 1059, 1099] Retail $2.29 $0.0135 Packing $2.11 $0.0124 Other $1.52 $0.0089

8 Indiana [Locals 280, 700/37/99A/550R/917]1

Retail $2.17 $0.0128 Other $2.74 $0.0161

9 Michigan [Locals 26, 876/539, 951]2

Retail $3.54 $0.0208 Packing $2.17 $0.0128

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

74

appendix c4

united food & commercial Workers international union-industry pension fund

aucrs for the period 7/1/91 through 6/30/94

10 Illinois, Wisconsin and Eastern Iowa [Locals 73A, 100A, 431, 536, 546, 881, 1444, 1540] Retail $2.78 $0.0164 Packing $2.15 $0.0126 Other $1.94 $0.0114

11 Minnesota [Locals 6, 12A, P160, 789] Retail $2.39 $0.0141 Other $1.89 $0.0111

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, P176, 271, 304, 394, 1116/310] Retail $1.90 $0.0112 Packing $2.71 $0.0159 Other $1.66 $0.0098

13 Eastern Missouri [Local 655] Packing $3.16 $0.0186

14 Western Missouri and Kansas [Locals P58, 340, 576] Retail $2.78 $0.0164 Packing $2.13 $0.0125 Other $2.20 $0.0129

15 Colorado, Wyoming and Arizona [Local 99R] Retail $1.87 $0.0110

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 76, 210, 408, 540, 606, 1200, 1564, 2008/425] Retail $1.91 $0.0112 Other $0.70 $0.0041

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 204, 400/278, 405, 442, 1529, 1625] Retail $1.87 $0.0110 Packing $1.99 $0.0117 Other $1.26 $0.0074

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

75

appendix c4

united food & commercial Workers international union-industry pension fund

aucrs for the period 7/1/91 through 6/30/94

22 Hawaii [Local 480] Retail $2.27 $0.0134

Special Groups

Certain Part-Time Groups3 $1.36 $0.0080 Local 88 Pension Fund [Monthly] $3.02 --- Local 88 Pension Fund [Hourly] --- $0.0118 Local 347 Pension Fund $2.22 $0.0131 Michigan Food and Drug Funds $2.89 $0.0170 Seaboard (Guymon)4 $1.70 $0.0100 Wisconsin Employers Pension Trust $1.87 $0.0110 Miscellaneous Groups [Chesapeake Enterprises $1.32 $0.0078 (Lee’s Contracting/Delta Food Service), Foodland (Ambridge, Center Township, East Rochester, New Brighton, Tusca Plaza), Heartland-Purity Supreme, Idaho Animal Products, etc.]

1 Local 99A merged into Local 700 and moved into Geographic Area 8 on July 1, 1992.

2 The Local 539 Pension Fund is included in Geographic Area 9.

3 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer.

4 Seaboard (Guymon) began participation on January 1, 1992.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

76

appendix c5 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/94 through 6/30/97

Beginning July 1, 1994, the Packing and Other Industries were combined into one Appropriate Unit Con-

tribution Rate. The Appropriate Unit Contribution Rates for Geographic Areas 1 through 22 are for the

Retail Industry only.

1 New England and New York State [Locals 328, 371, 1445] $2.13 $0.0125

2 New York City and Northern New Jersey [Locals 174, 342-50 (A&P), 464A] $1.94 $0.0114

5 Western Pennsylvania and Eastern Ohio [Locals 17, 23, 27, 880] $2.26 $0.0133

6 Kentucky [Local 227] $2.15 $0.0126

7 Western Ohio [Locals 7A, 626/911, 1059, 1099] $2.27 $0.0134

8 Indiana [Locals 280, 700] $1.87 $0.0110

9 Michigan (Effective through September 30, 1997) [Locals 26, 876/539, 951]1 $3.18 $0.0187

10 Illinois, Wisconsin and Eastern Iowa [Locals 73A, 100A, 431, 536, 546, 881, 1444, 1540] $2.25 $0.0132

11 Minnesota [Locals 6, 12A, P160, 789] $1.93 $0.0114

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, P176, 271, 304, 394, 1116] $1.68 $0.0099

14 Western Missouri and Kansas [Locals 2/340/576/P58] $2.13 $0.0125

15 Colorado, Wyoming and Arizona [Local 99R] $1.57 $0.0092

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 210, 408, 540, 606, 1000/76/1200, 1564, 2008] $1.53 $0.0090

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 204, 400, 1529, 1625, 1995/405, 1996/442] $1.85 $0.0109

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

appendix c5 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/94 through 6/30/97

22 Hawaii [Local 480] $1.86 $0.0109

Special Groups

Packing and Other Industries2 $1.65 $0.0097 Certain Part-Time Groups3 $1.36 $0.0080 Local 88 Pension Fund [Monthly] $3.00 --- Local 88 Pension Fund [Hourly] --- $0.0118 Local 347 Pension Fund $2.11 $0.0124 Local 342 Pension Fund Full-Time4 $3.87 $0.0228 Local 342 Pension Fund Part-Time4 $1.51 $0.0089 Michigan Food and Drug Funds $2.89 $0.0170 Westmoreland5 $3.43 $0.0202 Miscellaneous Groups [Chesapeake (Lee’s Contracting/ $1.24 $0.0073 Delta Food Service), Foodland (Ambridge, New Brighton, Tusca Plaza), Heartland-Purity Supreme, Idaho Animal Products, etc.]

1 The Local 539 Pension Fund is included in Geographic Area 9.2 The Wisconsin Employers Pension Trust is included with the Packing and Other Industries.3 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time

Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer. The First National Supermarkets Part-time Employees’ Pension Plan began participation on May 1, 1995 and is included in this group.

4 The Local 342 Pension Fund began participation on January 1, 1996.5 Westmoreland began participation on April 1, 1996.

For Benefit Groups with AUCRs that increase, the AUCRs in effect as of July 1, 1991 for those affected groups will apply until the earlier of (1) the first of the month following the expiration of the last collective bargaining agreement concerning the affected group that is effective before October 1, 1994; or (2) October 1, 1997.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

77

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

78

appendix c6 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/97 through 3/31/02

The Appropriate Unit Contribution Rates for Geographic Areas 1 through 22 are for the Retail Industry

only.

1 New England and New York State [Locals 328, 371, 1445]1 $1.85 $0.0109

2 New York City and Northern New Jersey [Locals 174, 342-50 (A&P), 464A] $1.72 $0.0101

5 Western Pennsylvania and Eastern Ohio [Locals 17, 23, 27, 880] $1.97 $0.0116

6 Kentucky [Local 227] $1.91 $0.0112

7 Western Ohio [Locals 7A, 911, 1059, 1099] $1.97 $0.0116

8 Indiana [Local 700] $1.63 $0.0096

9 Michigan (Effective October 1, 1997) [Locals 26, 876/539, 951]2 $2.891 $0.01701

10 Illinois, Wisconsin and Eastern Iowa [Locals 73A, 100A, 431, 536, 546, 881, 1444, 1540] $1.96 $0.0115

11 Minnesota [Locals 6, 12A, P160, 789] $1.68 $0.0099

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, P176, 271, 304A, 1116] $1.85 $0.0109

14 Western Missouri and Kansas [Local 2] $1.96 $0.0115

15 Colorado, Wyoming and Arizona [Local 99R] $1.47 $0.0086

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 210, 408, 540/606, 1000, 1564, 2008] $1.33 $0.0078

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 204, 400, 1529, 1625, 1995, 1996] $1.74 $0.0102

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

appendix c6 united food & commercial Workers international union-industry pension fund aucrs for the period 7/1/97 through 3/31/02

22 Hawaii [Local 480] $1.62 $0.0095

Special Groups

Packing and Other Industries3 $1.50 $0.0088 Certain Part-Time Groups4 $1.51 $0.0089 Local 88 Pension Fund [Monthly] $2.61 --- Local 88 Pension Fund [Hourly] --- $0.0103 Local 88 Part-Time5 $2.33 $0.0131 Local 342 Pension Fund Full-Time $3.87 $0.0228 Local 342 Pension Fund Part-Time $1.51 $0.0089 Local 347 Pension Fund $2.11 $0.0124 Michigan Food and Drug Funds $2.89 $0.0170 National Beef6 $2.74 $0.0161 Production Service & Sales7 $3.81 $0.0224 Westmoreland $3.43 $0.0202 Miscellaneous Groups [Chesapeake (Hilton Environmental), $1.36 $0.0080 Foodland (New Brighton and Tusca Plaza), Idaho Animal Products, etc.]

1 The New England Pension Fund began participation on February 1, 1999. The Full-Time Participants of the New England Pension Fund are included in Geographic Area 1.

2 The $2.89/$0.0170 AUCR for Geographic Area 9 is effective from October 1, 1997 through December 31, 2001. Effective January 1, 2002 through March 31, 2002, the AUCR for Geographic Area 9 is $2.67/$0.0157. The Local 539 Pension Fund is included in Geographic Area 9.

3 The Sausage Makers and Packinghouse Workers Pension Fund, which began participation on June 1, 2001, and the Wisconsin Employers Pension Trust are included in the Packing and Other Industries group.

4 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer. The part-time Participants of the New England Pension Fund and the First National Supermarkets Part-Time Employees’ Pension Plan are included in this group.

5 The Local 88 Part-Time group began participation on January 1, 2001.6 National Beef began participation on January 1, 1999.7 The Production Services & Sales group began participation on January 1, 2002

For Benefit Groups with AUCRs that increase, the AUCRs in effect as of July 1,1994 for those affected groups will apply until the earlier of (1) the first of the month following the expiration of the last collective bargaining agreement concerning the affected group that is effective before October 1, 1997 or (2) July 1, 2002.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

79

80

appendix c7 united food & commercial Workers international union-industry pension fund aucrs for the period 4/1/02 through 8/31/05

The Appropriate Unit Contribution Rates for Geographic Areas 1 through 22 are for the Retail Industry

only.

1 New England [Locals 328, 371, 1445, 1459]1 $1.67 $0.0098

2 New York and Northern New Jersey [Locals 342 (A&P), 342/174, 464A] $1.91 $0.0112

5 Western Pennsylvania, Western Maryland and Eastern Ohio [Locals 17A, 23, 27, 880] $1.97 $0.0116

6 Kentucky [Local 227] $1.97 $0.0116

7 Western Ohio [Locals 7A, 911, 1059, 1099] $1.80 $0.0106

8 Indiana [Local 700] $1.63 $0.0096

9 Michigan (Effective October 1, 1997) [Locals 876/26/539, 951]2 $2.33 $0.0137

10 Illinois, Wisconsin and Eastern Iowa [Locals 73A, 431, 536, 881, 1444, 1546/1540/546/100A] $1.96 $0.0115

11 Minnesota [Locals 6, 12A, 789] $1.86 $0.0109

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, 271, 304A, 440, 1116] $1.85 $0.0109

14 Western Missouri and Kansas [Local 2] $1.96 $0.0115

15 Colorado, Wyoming and Arizona [Local 99] $1.63 $0.0096

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 408, 455/210, 540, 1000, 1564, 2008] $1.33 $0.0078

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 204, 400, 1529, 1625, 1995, 1996] $1.74 $0.0102

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

appendix c7 united food & commercial Workers international union-industry pension fund aucrs for the period 4/1/02 through 8/31/05

22 Hawaii [Local 480] $1.67 $0.0098

Special Groups

Packing and Other Industries3 $1.66 $0.0098 Certain Part-Time Groups4 $1.51 $0.0089 Local 88 Pension Fund [Monthly] $2.27 --- Local 88 Pension Fund [Hourly] --- $0.0103 Local 88 Part-Time $2.03 $0.0119 Local 342 Pension Fund Full-Time $3.37 $0.0198 Local 342 Pension Fund Part-Time $1.67 $0.0098 Local 347 Pension Fund $2.04 $0.0120 National Beef $2.74 $0.0161 Nemecek5 $3.66 $0.0215 Production Service & Sales $3.81 $0.0224 Westmoreland $3.13 $0.0184 Miscellaneous Groups [Chesapeake (Hilton Environmental $1.51 $0.0089 Automated Communication), Foodland (New Brighton and Tusca Plaza) and Idaho Animal Products]

1 The full-time Participants of the New England Pension Fund are included in Geographic Area 1.2 The Local 539 Pension Fund is included in Geographic Area 9.3 The Sausage Makers Pension Fund and the Wisconsin Employers Pension Trust are included in the Packing and

Other Industries group.4 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time

Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer. The part-time Participants of the New England Pension Fund and First National Supermarkets Part-time Employees’ Pension Plan are included in this group.

5 Nemecek began participation on July 1, 2002.

For Benefit Groups with AUCRs that increase, the AUCRs in effect as of July 1, 1997 for those affected groups will apply until the earlier of (1) the first of the month following the expiration of the last collective bargaining agreement concerning the affected group that is effective before July 1, 2002 or (2) July 1, 2007.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund

81

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

appendix c8 united food & commercial Workers international union-industry pension fund aucrs for the period 9/1/05 through 8/31/07

Beginning September 1, 2005, two AUCRs were established for each Geographic Area and Special Group; one AUCR for Individuals participating before September 1, 2005 and one for Individuals who first become Participants on or after September 1, 2005. The Appropriate Unit Contribution Rates for Geographic Areas 1 through 22 are for the Retail Industry only.

1 New England [Locals 328, 371, 1445, 1459]1 $1.80 $0.0106 $2.14 $0.0126

2 New York and New Jersey [Locals 342 (A&P), 342/174, 464A] $2.03 $0.0119 $2.12 $0.0125

5 Western Pennsylvania, Western Maryland and Eastern Ohio [Locals 17A, 23, 27, 880] $2.18 $0.0128 $2.61 $0.0154

6 Kentucky [Local 227] $2.82 $0.0166 $2.82 $0.0166

7 Western Ohio [Locals 7A, 911, 1059, 1099] $1.80 $0.0106 $2.52 $0.0148

8 Indiana [Local 700] $1.63 $0.0096 $2.34 $0.0138

9 Michigan [Locals 876/26/539, 951]2 $2.33 $0.0137 $2.33 $0.0137

10 Illinois, Wisconsin and Eastern Iowa [Locals 431, 536, 881, 1473/73A/1444, 1546/100A/546/1540] $2.14 $0.0126 $2.29 $0.0135

11 Minnesota [Locals 6, 12A, 789] $2.85 $0.0168 $2.85 $0.0168

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, 271, 304A, 440] $2.14 $0.0126 $2.29 $0.0135

14 Western Missouri and Kansas [Local 2] $2.14 $0.0126 $2.29 $0.0135

15 Colorado, Wyoming and Arizona [Local 99] $1.67 $0.0098 $2.23 $0.0131

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 408, 455/210, 540, 1000, 1564, 2008] $1.33 $0.0078 $2.22 $0.0131

82

first participating first participating prior to 9/1/05 on or after 9/1/05

geographic area monthly hourly monthly hourly

appropriate unit contribution rates for $1.00 Benefit

appendix c8 united food & commercial Workers international union-industry pension fund aucrs for the period 9/1/05 through 8/31/07

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 204, 400, 1529, 1625, 1995, 1996] $2.11 $0.0124 $2.54 $0.0149

22 Hawaii [Local 480] $1.96 $0.0115 $1.96 $0.0115

Special Groups

Packing and Other Industries3 $2.14 $0.0126 $2.14 $0.0126 Certain Part-Time Groups4 $1.77 $0.0104 $1.77 $0.0104 Local 88 Pension Fund [Monthly] $2.37 --- $2.37 --- Local 88 Pension Fund [Hourly] --- $0.0103 --- $0.0103 Local 88 Part-Time $2.07 $0.0122 $2.07 $0.0122 Local 342 Pension Fund Full-Time $5.96 $0.0351 $5.96 $0.0351 Local 342 Pension Fund Part-Time $2.25 $0.0132 $2.25 $0.0132 Local 400/347 Pension Fund $2.24 $0.0132 $2.24 $0.0132 National Beef $2.74 $0.0161 $2.74 $0.0161 Production Services & Sales $3.81 $0.0224 $3.81 $0.0224 Westmoreland $3.13 $0.0184 N/A N/A Miscellaneous Groups [Chesapeake (Automated $1.77 $0.0104 $1.77 $0.0104 Communication)], Foodland (New Brighton and Tusca Plaza) and Darling (Idaho Animal Products)

1 The full-time Participants of the New England Pension Fund are included in Geographic Area 1.2 The Local 539 Pension Fund is included in Geographic Area 9.3 The Sausage Makers Pension Fund and the Wisconsin Employers Pension Trust are included in the Packing and

Other Industries group.4 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time

Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer. The part-time Participants of the New England Pension Fund and First National Supermarkets Part-time Employees’ Pension Plan are included in this group.

For Benefit Groups with AUCRs that change, the AUCRs in effect as of July 1,2002 for those affected groups will apply until the earlier of (1) the first of the month following the expiration of the last collective bargaining agreement concerning the affected group that is effective before September 1, 2005 or (2) September 1, 2008.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

83

first participating first participating prior to 9/1/05 on or after 9/1/05

geographic area monthly hourly monthly hourly

appropriate unit contribution rates for $1.00 Benefit

appendix c9 united food & commercial Workers international union-industry pension fund aucrs for the period 9/1/07 through 8/31/09

The Appropriate Unit Contribution Rates for Geographic Areas 1 through 22 are for the Retail Industry only.

1 New England [Locals 328, 371, 1445, 1459]1 $1.85 $0.0109 $2.14 $0.0126

2 New York and New Jersey [Locals 342 (A&P), 342/174, 464A] $2.25 $0.0132 $2.35 $0.0138

5 Western Pennsylvania, Western Maryland and Eastern Ohio [Locals 17A, 23, 27, 880] $2.18 $0.0128 $2.61 $0.0154

6 Kentucky [Local 227] $2.82 $0.0166 $2.82 $0.0166

7 Western Ohio [Locals 7A, 911, 1059, 1099] $1.80 $0.0106 $2.47 $0.0145

8 Indiana [Local 700] $1.56 $0.0092 $2.23 $0.0131

9 Michigan [Locals 876/26/539, 951]2 $2.35 $0.0138 $2.35 $0.0138

10 Illinois, Wisconsin and Eastern Iowa [Locals 431, 536, 881, 1473, 1546] $2.14 $0.0126 $2.29 $0.0135

11 Minnesota [Locals 6, 789, 1116/12A] $2.85 $0.0168 $2.85 $0.0168

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, 271, 304A, 440] $2.14 $0.0126 $2.29 $0.0135

14 Western Missouri and Kansas [Local 2] $2.14 $0.0126 $2.29 $0.0135

15 Colorado, Wyoming and Arizona [Local 99] $1.71 $0.0101 $2.23 $0.0131

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 455/408, 540, 1000, 1564, 2008] $1.33 $0.0078 $2.12 $0.0125

84

first participating first participating prior to 9/1/05 on or after 9/1/05

geographic area monthly hourly monthly hourly

appropriate unit contribution rates for $1.00 Benefit

appendix c9 united food & commercial Workers international union-industry pension fund aucrs for the period 9/1/07 through 8/31/09

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 204, 400, 1048C, 1529, 1625, 1995, 1996] $2.11 $0.0124 $2.54 $0.0149

22 Hawaii [Local 480] $1.96 $0.0115 $1.96 $0.0115

Special Groups

Packing and Other Industries3 $2.14 $0.0126 $2.14 $0.0126 Certain Part-Time Groups4 $1.92 $0.0113 $1.92 $0.0113 Local 88 Pension Fund [Monthly] $2.39 --- $2.39 --- Local 88 Pension Fund [Hourly] --- $0.0098 --- $0.0098 Local 88 Part-Time $2.30 $0.0135 $2.30 $0.0135 Local 342 Pension Fund Full-Time $5.68 $0.0334 $5.68 $0.0334 Local 342 Pension Fund Part-Time $2.50 $0.0147 $2.50 $0.0147 Local 400 Pension Fund $2.39 $0.0141 $2.39 $0.0141 National Beef $2.61 $0.0154 $2.61 $0.0154 Pinnacle Foods $2.49 $0.0146 $2.49 $0.0146 Production Services & Sales $3.63 $0.0214 $3.63 $0.0214 Miscellaneous Groups [Chesapeake (Automated $1.92 $0.0113 $1.92 $0.0113 Communication)], Foodland (Tusca Plaza) and Darling-368A (Idaho Animal Products)

1 The full-time Participants of the New England Pension Fund are included in Geographic Area 1.2 The Local 539 Pension Fund is included in Geographic Area 9.3 The Sausage Makers Pension Fund and the Wisconsin Employers Pension Trust are included in the Packing and

Other Industries group.4 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time

Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer. The part-time Participants of the New England Pension Fund and First National Supermarkets Part-time Employees’ Pension Plan are included in this group.

For Benefit Groups with AUCRs that change, the AUCRs in effect as of September 1, 2005 for those affected groups will apply until the earlier of (1) the first of the month following the expiration of the last collective bargaining agreement con-cerning the affected group that is effective before September 1, 2007 or (2) September 1, 2010.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

85

first participating first participating prior to 9/1/05 on or after 9/1/05

geographic area monthly hourly monthly hourly

appropriate unit contribution rates for $1.00 Benefit

86

appendix c10 united food & commercial Workers international union-industry pension fund aucrs for work performed on or after September 1, 2009 through august 31, 2011, regardless of first participation date.

The Appropriate Unit Contribution Rates for Geographic Areas 1 through 22 are for the Retail Industry only.

1 New England [Locals 328, 371, 1445, 1459] $2.34 $0.0138

2 New York and Northern New Jersey [Locals 342 (A&P), 464A] $2.58 $0.0152

5 Western Pennsylvania, Western Maryland and Eastern Ohio [Locals 17A, 23, 880] $3.38 $0.0199

6 Kentucky [Local 227] $3.39 $0.0199

7 Western Ohio

[Locals 75/7A/911/1099, 1059)1 $3.39 $0.0199

8 Indiana [Local 700] $2.79 $0.0164

9 Michigan [Locals 876, 951] $2.56 $0.0151

10 Illinois, Wisconsin and Eastern Iowa [Locals 431, 536, 881, 1473, 1546] $3.39 $0.0199

11 Minnesota [Locals 6, 1189/789/1116] $3.39 $0.0199

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 22, 271, 304A, 440] $3.39 $0.0199

14 Western Missouri and Kansas [Local 2] $3.39 $0.0199

15 Colorado, Wyoming and Arizona [Local 99] $3.39 $0.0199

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 455/408, 540, 1000, 1564, 2008] $3.29 $0.0194

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 204, 400, 1529, 1625, 1995, 1996] $3.39 $0.0199

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

87

appendix c10 united food & commercial Workers international union-industry pension fund aucrs for work performed on or after September 1, 2009 through august 31, 2011, regardless of first participation date.

22 Hawaii [Local 480] $1.96 $0.0115

Special Groups

Packing and Other Industries $2.14 $0.0126 Certain Part-Time Groups2 $2.01 $0.0118 Local 88 Pension Fund [Monthly] $3.03 --- Local 88 Pension Fund [Hourly]3 --- $0.0135 Local 342 Pension Fund Full-Time $5.68 $0.0334 Local 342 Pension Fund Part-Time $3.39 $0.0199 Local 347 Pension Fund $3.39 $0.0199 National Beef $2.61 $0.0154 Pinnacle Foods $2.49 $0.0146 Production Service & Sales $3.63 $0.0214 Miscellaneous Groups [Chesapeake (Perkins $2.01 $0.0118 Management Services), Idaho Animal Products]

1 Certain non-closed Retail Groups under Geographic Area 7 are now covered under the jurisdiction of Geographic Area 6.

2 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer. The part-time Participants of the New England Pension Fund and First National Supermarkets Part-Time Employees’ Pension Plan are included in this group.

3 The Local 88 Pension Fund [Hourly] and the Local 88 Part-Time Groups were combined.

For Benefit Groups with AUCRs that change, the AUCRs in effect as of September 1, 2007 for those affected groups will apply until the earlier of (1) the first of the month following the expiration of the last collective bargaining agreement concerning the affected group that is effective before September 1, 2009 or (2) September 1, 2012.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

88

appendix c11 united food & commercial Workers international union-industry pension fund aucrs for work performed on or after September 1, 2011, regardless of first participation date.

The Appropriate Unit Contribution Rates for Geographic Areas 1 through 22 are for the Retail Industry only.

1 New England [Locals 328, 371, 1445, 1459] $2.34 $0.0138

2 New York and Northern New Jersey [Locals 27 (A&P), 342 (A&P),464A] $2.58 $0.0152

5 Western Pennsylvania, Western Maryland and Eastern Ohio [Locals 17A, 23, 880] $3.38 $0.0199

6 Kentucky [Local 227] $3.39 $0.0199

7 Western Ohio

[Locals 75/7A/911/1099, 1059)1 $3.39 $0.0199

8 Indiana [Local 700] $2.79 $0.0164

9 Michigan [Locals 876, 951] $2.56 $0.0151

10 Illinois, Wisconsin and Eastern Iowa [Locals 431, 536, 881, 1473, 1546] $3.39 $0.0199

11 Minnesota [Locals 6, 1189/789/1116] $3.39 $0.0199

12 Western Iowa, Nebraska, North Dakota, and South Dakota [Locals 293/22/271, 304A, 440] $3.39 $0.0199

14 Western Missouri and Kansas [Local 2] $3.39 $0.0199

15 Colorado, Wyoming and Arizona [Local 99] $3.39 $0.0199

20 New Mexico, Texas, Oklahoma, Arkansas, and Louisiana [Locals 455/408, 540, 1000, 1564, 2008] $3.29 $0.0194

21 Southern Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama, Mississippi, and Florida [Locals 204, 400, 1529, 1625, 1995, 1996] $3.39 $0.0199

appropriate unit contribution rates for $1.00 Benefitgeographic area monthly hourly

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Appendix C11 United Food & Commercial Workers International Union-Industry Pension Fund AUCRs for work performed on or after September 1, 2011, regardless of first participation date.

22 Hawaii [Local 480] $1.96 $0.0115

Special Groups

Packing and Other Industries $2.14 $0.0126 Certain Part-Time Groups2 $2.01 $0.0118 Certain Non-Kroger Employers3 $2.50 $0.0147 Local 88 Pension Fund [Monthly] $3.03 --- Local 88 Pension Fund [Hourly] --- $0.0135 Local 342 Pension Fund Full-Time $5.68 $0.0334 Local 342 Pension Fund Part-Time $3.39 $0.0199 Local 400 Pension Fund $3.39 $0.0199 National Beef $2.61 $0.0154 Pinnacle Foods $2.49 $0.0146 Production Service & Sales $3.63 $0.0214 Miscellaneous Groups [Chesapeake (Perkins $2.01 $0.0118 Management Services), Idaho Animal Products]

1 Certain non-closed Retail Groups under Geographic Area 7 are now covered under the jurisdiction of Geographic Area 6.2 Certain Part-Time Groups are generally comprised of former Participants of the National Pension Fund Part-Time Plan as well as certain other grandfathered part-time groups. Other part-time Employers may be covered under the Geographic Area of the Contributing Employer. The part-time Participants of the New England Pension Fund and First National Supermarkets Part-Time Employees’ Pension Plan are included in this group.

3 Certain Non-Kroger Employers that became effective January 1–December 31, 2012 that formerly participated in UFCW pension funds that merged into the UFCW Consolidated Pension Fund.

For Benefit Groups to which the 2007 AUCR is applicable on August 31, 2011, those groups will continue at the 2007 AUCR until the earlier of (1) the expiration date of the first collective bargaining agreement that is effective on or after September 1, 2011 or (2) September 1, 2014.

For Benefit Groups to which the 2009 AUCR is applicable on August 31, 2011, those groups will continue at the 2009 AUCR until the earlier of (1) the expiration date of the first collective bargaining agreement that is effective on or after September 1, 2011 or (2) September 1, 2016.

Not all employers with which the listed Local Unions bargain are Contributing Employers to the National Pension Fund.

Appropriate Unit Contribution Rates for $1.00 BenefitGeographic Area Monthly Hourly

90

7 Kroger (Cincinnati) - Local 75 Closed to employees hired on (formerly Local 1099) or after October 17, 1989

7 Kroger (Dayton) - Local 75 Closed to employees hired on (formerly Local 1099) or after October 12, 1989

7 Kroger - Local 1059 Closed to employees hired on or after September 25, 2000

15 Fry’s - Local 99 Closed to employees hired on or after December 9, 1997

15 Safeway - Local 99 Closed to employees hired on or after December 9, 1997

Special Local 342-50 Pension Fund Closed to employees hired on Group Full-Time Group All Employers not providing contributions for, and participation by, Employees hired or promoted after a certain date as set forth in their Collective Bargaining Agreements

Special Local 342-50 Pension Fund All Employers not providing Group Part-Time Group contributions for, and participation by, Employees hired or promoted after a certain date as set forth in their Collective Bargaining Agreements

geographic area Bargaining unit comment

appendix d—cloSed Bargaining groupS

the Board of Trustees is pleased to provide this Summary Plan Description for the Future Service Plan. If you or your spouse has any questions concerning your rights under the Future Service Plan or want to contact the Board of Trustees, please contact the United Food & Commercial Workers International Union-Industry Pension Fund Office:

United Food & Commercial Workers

International Union-Industry Pension Fund

P.O. Box 6000

Frankfort, Illinois 60423-6000

800-531-2385 or 312-649-1200

www.ufcwnpf.org

Nothing in this Summary Plan Description is meant to interpret or change in

any way the provisions expressed in the Future Service Plan. In the event of any

inconsistency between the explanatory material in this Summary Plan Description

and the Plan Document, the Plan Document will control. The Trustees reserve the

right to amend, modify, or discontinue all or part of this Plan whenever, in their

judgment, conditions so warrant.

National Pension Fund

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