December 2000
TO: ALL PARTICIPANTS IN THE OUTSTATE MICHIGAN TROWEL TRADES’ PENSION FUND
RE: 1999 SUMMARY ANNUAL
REPORT
Dear Participant:
This is a summary of the annual report of the
Outstate Michigan Trowel Trades’ Pension Fund, Sponsor Identification Number
38-6222545, for the period of January 1, 1999 through December 31, 1999. The annual report has been filed with the
Internal Revenue Service, as required under the Employee Retirement Income
Security Act of 1974 (ERISA).
BASIC FINANCIAL STATEMENT
Benefits under the Plan are provided by employer contributions. Plan Expenses were $1,523,559. These expenses included $338,174 in administrative expenses (see Note A), $1,185,385 in benefits paid to participants and beneficiaries. A total of 921 persons were participants in or beneficiaries of the Plan at the end of the Plan Year, although not all of these persons had yet received the right to receive benefits.
The value of Plan assets, after subtracting Liabilities of the Plan, was $34,644,186 as of December 31, 1999, compared to $33,913,177 as of January 1, 1999. During the Plan Year, the Plan experienced an increase in its Net Assets of $731,009. This increase included unrealized appreciation or (depreciation) in the value of Plan assets; that is, the difference between the value of the Plan’s assets at the end of the year and the value of Plan assets at the beginning of the year, or the cost of the assets acquired during the year. The Plan had Total Income of $2,254,568, including employer contributions of $1,817,829, realized gains of $1,520,272 from the sale of assets, losses from investments of ($1,083,650) and miscellaneous income of $117.
MINIMUM FUNDING STANDARDS
An actuary’s statement shows that enough money was
contributed to the Plan to keep it funded in accordance with the minimum
funding standards of ERISA.
YOUR RIGHTS TO ADDITIONAL INFORMATION
You have a right to receive a copy of the full
annual report or any part thereof on request.
The items listed below are included in that report:
1.
An
accountant’s report;
2.
Assets
held for investment;
3.
Transactions
in excess of 5 percent of Plan assets; and
4.
Actuarial
information regarding the funding of the Plan.
To
obtain a copy of the full annual report, or any part thereof, write or call the
office of the Plan Administrative Manager, TIC International Corporation, 6525
Centurion Drive, Lansing, Michigan 48917-9275, and (877) 876-9357. The charge to cover copying costs will be
$7.75 for the full annual report or twenty-five cents per page for any part
thereof.
You also have the right to receive from the Plan Administrative
Manager, on request and at no charge, a Statement of the Assets and Liabilities
of the Plan and accompanying notes, or a Statement of Income and Expenses of
the Plan and accompanying notes, or both.
If you request a copy of the full annual report from the Plan
Administrative Manager, these two statements and accompanying notes will be
included as part of that report. The charge to cover copying costs given
above does not include a charge for the copying of these portions of the
report, because these portions are furnished without charge.
Additionally, you also have the legally protected right to examine the
annual report at the main office of the Plan at the address given, at your
local union office, at your employers’ establishment if at least 50 plan
participants are employed there, and at the U.S. Department of Labor in
Washington, D.C. To obtain a copy from
the U.S. Department of Labor upon payment of copying costs, requests to the
Department should be addressed to:
Public Disclosure Room, N5638, Pension and Welfare Benefits
Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W.,
Washington, DC 20210.
Sincerely,
JOINT
BOARD OF TRUSTEES, OUTSTATE MICHIGAN TROWEL TRADES’ PENSION FUND
Investment expenses $215,329
Administrative Manager’s Fee*
40,083
Legal Fees 25,107
Printing and miscellaneous 11,351
Actuarial fees 9,800
Audit fee 9,200
Payroll audit fees 8,678
Lockbox and bank service charges 7,213
Premiums paid Pension Benefit Guaranty
2,972
Trustee and fiduciary liability insurance 4,224
Trustee meeting expense
3,124
Premiums paid to Pension Benefit Guaranty
2,954
Summary annual report 1,111
TOTAL $338,174
· - Includes rent, equipment staffing, postage, computer services, etc.
December 2000
TO: PARTICIPANTS
OF THE
OUTSTATE MICHIGAN TROWEL
TRADES PENSION FUND
RE: SUMMARY
OF PLAN MODIFICATIONS
Dear Participant:
We are pleased to announce
that effective January 1, 2000 the following changes were made to the Pension
Plan:
·
Future
Service Credit will be calculated at 3.6% of Employers Contributions for all
Participants who were Active Participants as of that date and for all Inactive
Participants as of that date who subsequently become reinstated as Active
Participant provide they accumulate at least 1,500 Hours of Work within a 5
consecutive Plan Year period ending after January 1, 2000.
·
The
monthly pension benefit of any person receiving benefits as of December 31,
1999, shall be increase 2%.
·
A
Participant who has accrued 25 Years of Service and is Active on the date he
attains age 60 will be eligible for his monthly Accrued Benefit without
reduction.
·
The
definition of Total and Permanent Disability
was modified to include any physical or mental condition which rendered
the Participant totally unable to engage in any regular occupation or
employment in the cement mason trade and /or plasterer trade for
remuneration or profit and which condition is likely to be permanent and
continuous during the remainder of his life.
·
The
following Optional Forms of Benefit Payment were adopted: 75% Joint and Survivor Option, 100% Joint
and Survivor Option and Life-Ten Year Certain Option. It should be noted that, when a Participant inquires about his
pension benefits, the Fund Office will provide him with the benefit amount
under each of these Optional Forms as well as an explanation of the Optional
Form
Sincerely,
BOARD OF TRUSTEES
OUTSTATE MICHIGAN TROWEL
TRADES’ PENSION FUND
December 2000
Dear Plan Participant:
This notice applies only to Plan participants who do
NOT elect to retire at the normal
retirement age and who may choose to continue working. “Normal Retirement Age” under the Pension
Plan is age 65.
If you continue to work after reaching the normal retirement age, your Plan’s Suspension of Benefit Rules will be applied even though you have not actually retired.
Under the Suspension of Benefit Rules, no benefits
are payable if you work for more than one hundred sixty (160) hours per month
during the months of May, June, July, August, September or October, or for more
than forty (40) hours in the payroll periods falling within such other calendar
months, and the employment is in the same industry, same trade or craft, and
within the State of Michigan. This
suspension is applicable until the April 1st of the calendar year in
which you reach 70 ½. Thereafter, you
may both work and receive your monthly pension.
If you continue to work after reaching the normal retirement age, but work less than 40 hours per month or do not work at all, no pension benefits will be paid during such months. However, when you do retire, you may be entitled to additional benefits for those months between your normal retirement age and your actual date of retirement if you did not work at least 40 hours in the same industry, same trade or craft, and within the State of Michigan.
Be assured that application of the Suspension of
Benefits Rules while you are working after reaching the normal retirement age
will in no way affect your current vesting or benefit accrual status under the
Plan. When a participant who continued
to work after his normal retirement age decides to actually retire, his normal
retirement benefit will be determined in accordance with the regular Plan
provisions. Such provisions give credit
for work performed under the Plan prior to actual retirement if the requirement
of a minimum 300 hours of work in a plan year is met.
If you disagree with how the Suspension of Benefit
Rules are being applied to your particular case, you have the right to appeal
to the Board of Trustees. The Appeal
Procedure is set forth on Pages S-32 and S-33 of the Summary Plan Description.
If you have any questions about how the Suspension
of Benefit Rules will be applied to your employment situation, be sure to
contact the Fund Office before continuing to work beyond the normal retirement
age.
Sincerely,
JOINT BOARD OF
TRUSTEES
OUTSTATE MICHIGAN TROWEL TRADES’ PENSION
FUND
December 2000
TO: ALL RETIRED PARTICIPANTS OF THE
OUTSTATE
MICHIGAN TROWEL TRADES’ PENSION FUND
RE: SUSPENSION OF PENSION BENEFITS
(RETURN TO WORK) PROVISIONS
Dear Retired Participant:
This is to remind you of the provisions of the
Pension Plan governing Suspension of Pension Benefits for returning to work at
the Trade. Under these provisions,
Pension Benefits being paid to retired Participants may be suspended only if ALL of the following conditions
are met:
1.
A
Retiree is working more than one hundred sixty (160) hours per month during the
months of May, June, July, August, September or October, or for more than forty
(40) hours in the payroll periods falling within such other calendar months;
and
2.
The
work is in the same industry as the type of business activity engaged in by any
Employer who contributes to the Plan even through the Employer may not be a
Contributing Employer (such as non-union employer); and
3.
The
work is either at the same trade or craft in which the Retiree was working when
he/she earned benefits under the Plan.
(Self-employed work, as well as supervisory or managerial work can be
considered as a Return to Work, so long as the Retiree is using the same skill
or skills he/she acquired while he/she worked under a union collective bargaining
agreement); and
4.
The
work is performed within the State of Michigan.
These Suspension of Benefit Provisions are
applicable until the April 1st of the calendar year following the
calendar in which you reach age 70 ½.
Thereafter, you may both work and receive your monthly pension.
It is important to remember that every Retiree is
required to notify the Fund Office immediately if he/she returns to work in
any capacity, regardless of whether he/she returns to work for a
non-contributing employer (such as a non-union employer) or in a self-employed
capacity. Failure to notify the Fund
Office in a timely manner of a return to work may subject the Retiree to
possible suspension of his/her current and/or future Pension Benefits from the
Pension Fund.
Should you have any questions with regard to this
Notice, please call the Fund Office immediately.
Sincerely,
JOINT BOARD OF
TRUSTEES
OUTSTATE MICHIGAN TROWEL TRADES’ PENSION FUND
December 2000
TO: PLAN PARTICIPANTS
RE: WOMEN’S HEALTH AND CANCER RIGHTS
Dear Participant:
Due to recent changes in Federal Law, the Trustees of your Health and
Welfare Fund are issuing this annual notice in compliance with the Women’s
Health and Cancer Rights Act of 1998.
Your Health and Welfare Plan already provides the benefits required by
this new law. You have a right to this
notice, and the Trustees are providing the notice for your information so that
you may be assured that you are treated in accordance with Federal Law if the
need arises.
The Federal Law requires that all health care plans that provide medical
and surgical benefits for mastectomies provide participants and beneficiaries
receiving mastectomy benefits and who elect mastectomy related breast
reconstruction with coverage for the following:
·
Reconstruction
of the breast on which the mastectomy has been performed.
·
Surgery and
reconstruction of the other breast to produce a sym-metrical appearance; and
·
Prostheses
and physical complications of all stages of mastectomy including lymph edemas;
in a manner determined in consultation with the attending physician and the
patient. Such coverage may be subject
to annual deductibles and coinsurance provisions as may be deemed appropriate
and as are consistent with those established for other benefits under the plan
or coverage.
The Fund has provided coverage
for mastectomies for a number of years.
As part of this coverage, the Plan also covered the procedures necessary
to effect reconstruction of the breast on which the mastectomy was performed,
as well as the cost of prostheses and physical complications of all stages of
mastectomy, including lymph edemas, as recommended by the attending physician
of any patient receiving Plan benefits in connection with the mastectomy and in
consultation with the patient. The Plan
also covers any surgery and reconstruction of the other breast to achieve a
symmetrical appearance.
Please keep this notice with your
Summary Plan Description. If you have
any questions regarding these federal requirements, please contact the Fund
Office.
Sincerely,
BOARD OF TRUSTEES
OUTSTATE MICHIGAN TROWEL TRADES’ PENSION FUND