Annuity Vesting

You are "vested" in your Annuity Account Benefit under the plan if you:

• have earned at least three (3) Years of Vesting Service, or
• had earned at least two (2) Years of Credited Service prior to December 1, 2008.

You may also be vested if you are working in Covered Employment at the later of age 65 or the 5th anniversary of  your participation in the Plan.

The rules on Years of Vesting Service, breaks in service and cancellation of Vesting Service for your Annuity Benefit are the same as for the Accrued Monthly Pension benefit. If you pass away or leave work under the Plan before you are vested, you will not receive any Annuity Benefit account money.

If you are divorced before retirement, your spouse will lose all of his/her rights to your benefits under the Plan, unless the Plan is served with a qualified domestic relations order ("QDRO") from a state court. The state court can preserve a former spouse or child's right to share in your pension benefits. Your former spouse and child may receive a portion of your pension under a QDRO, and a QDRO may require you to retain your former spouse or child as a beneficiary under the guaranteed payment form. A divorce after retirement has no effect on the payment of benefits to your spouse by the Plan after your death under the normal joint and survivor form.

The Plan will pay all or a portion of your benefit in compliance with a court-issued Qualified Domestic Relations Order (QDRO) that meets Plan and all other ERISA standards. The Fund Office will treat a domestic relations order as a claim for benefits under the Plan and issue a letter acknowledging that the order is "qualified" (so as to entitle the spouse to benefits) or that it is "not
qualified" and will not be accepted by the Plan. Any party to the order can appeal the determination of the Fund Office under the procedures for appeal of a benefit denial. If you are scheduled to receive payment of your benefits while the Plan is considering the qualified status of the order, the Plan will segregate any amounts potentially payable to the spouse while the qualified status of the order is under consideration (up to a maximum of 18 months).

The Plan will generally ask you about any divorce or property settlement agreement when you apply for payment of benefits. You and your former spouse may need to verify that a former spouse has no right or claim to your Plan benefits before payment to you begins.

Covered Employment is work covered by a collective bargaining agreement in the carpentry or related trade within our geographic area, or a reciprocal area that requires an employer to make contributions to the Pension and Annuity Plan. Covered Employment also includes work as an employee of an employer which is required to contribute to the Plan under a participation agreement.

The amount and time for payment of your benefits depends on the predominant type of carpentry work that you perform during your work life. This makes it necessary to distinguish between one type of Covered Employment and another according to the hourly contribution rate that applies to that employment.

You may need to sign an authorization for the transfer of contributions pursuant to a reciprocal agreement.

You will be considered an "inactive" participant if you have less than 200 Credited Hours during any Plan Year. You may also become "inactive" earlier if you cease to be available for and seeking Covered Employment. When you work again in Covered Employment for 800 or more Credited Hours in a Plan Year, you will become an active participant at the end of the Plan Year.

Your "Beneficiary" is a surviving individual, trust or estate that you designate on a Plan form. In the absence of a designation, your beneficiary is, in order, your spouse (regardless of the length of marriage), child or children in equal parts, mother, father, or if no such relative survives, the executor or administrator of your estate. A person who kills a participant cannot be a beneficiary and the death benefit will pass to the next beneficiary in the order listed. Your beneficiary designation is invalid if your beneficiary is your former spouse and you made the designation prior to your divorce.