AMERICAN FEDERATION OF MUSICIANS AND EMPLOYERS' PENSION FUND

SUMMARY PLAN DESCRIPTION

Table of Contents

NEW 75% JOINT AND SURVIVOR ANNUITY OPTION EFFECTIVE APRIL 1, 2009

Fund Participants currently may elect to receive monthly benefits in the form of either a Single Life Annuity or a 50% Joint and Survivor Annuity.  The Single Life Annuity provides a monthly payment to the participant during his or her lifetime.  Upon the participant’s death, no further payments are made (unless guaranteed payments attributable to benefits earned before 2004 are payable). The 50% Joint and Survivor Annuity provides a monthly payment to the participant during his or her lifetime and, upon the participant’s death, a monthly payment to the participant’s spouse or other designated joint annuitant for his or her lifetime equal to 50% of the participant’s monthly payment. 

The Fund will begin to offer a new 75% Joint and Survivor Annuity option to participants whose benefits begin on or after April 1, 2009.  The 75% Joint and Survivor Annuity provides a monthly payment to the participant during his or her lifetime and, upon the participant’s death, a monthly payment to the participant’s spouse or other designated joint annuitant for his or her lifetime equal to 75% of the participant’s monthly payment. 

Both the 50% and the 75% Joint and Survivor Annuity forms of benefit are the “actuarial equivalent” of the Single Life Annuity, which means that the value of each of these benefit forms is the same as the Single Life Annuity, taking into account all expected payments to the participant and the joint annuitant.  Under the 50% Joint and Survivor Annuity, the monthly benefit otherwise payable as a Single Life Annuity is reduced to “pay for” the expected 50% survivor benefit.  Under the 75% Joint and Survivor Annuity, that monthly benefit is further reduced to “pay for” the larger 75% survivor benefit.

No spousal consent is required for a married participant to elect a 75% Joint and Survivor Annuity with the spouse as a joint annuitant, but spousal consent is required for a married participant to elect a 75% Joint and Survivor Annuity with a non-spousal joint annuitant (just as the spouse must currently consent to the participant’s selection of a 50% Joint and Survivor Annuity with a non-spousal joint annuitant).

The new 75% Joint and Survivor Annuity is required to be provided to married participants and their spousal joint annuitants under the Pension Protection Act of 2006. Additionally,  the Trustees decided to permit any participant to elect this option with any joint annuitant (subject to spousal consent if applicable), with one limitation: IRS rules require that a 75% Joint and Survivor Annuity can be elected with a non-spouse joint annuitant only if the joint annuitant is not more than 19 years younger than the participant. No age limit applies to a 75% Joint and Survivor Annuity with the spouse as the joint annuitant.

This information is a “summary of material modifications” to your 2005 Summary Plan Description (“SPD”) and modifies the information in the SPD.  Please keep it with your SPD for future reference.

Click here to see affected section of SPD

Important Notice

The Fund’s administration of a Pre-retirement Death Benefit will change for beneficiaries of participants who die on or after January 1, 2009.  The new procedures will provide beneficiaries with more time to apply for death benefits without affecting the benefit amount.

As you know, the amount of the Pre-retirement Death Benefit depends on your age at your date of death. 

• If you are 55 or older at your death, your opposite-sex spouse or other beneficiary will receive the same monthly benefit that he or she would have received if, instead of dying, you began to receive a 50% Joint and Survivor Annuity with your opposite-sex spouse or other beneficiary as your joint annuitant, and died the next day.

• If you are younger than 55 at your death, your opposite-sex spouse or other beneficiary will receive a monthly benefit based on the benefit that he or she would have received if, instead of dying, you began to receive a 50% Joint and Survivor Annuity at age 55 with your opposite-sex spouse or other beneficiary as joint annuitant, and died the next day, actuarially reduced to account for commencement before you would have reached age 55.

If your beneficiary applies for the death benefit in time for it to begin to be paid within 6 months after the first day of the month following your death, it will be paid retroactive to that date.  This means that your beneficiary’s first payment will include an amount equal to the additional monthly payments that he or she would have received if payments had begun on the first day of the month following your death.   Any actuarial adjustment to the benefit will be based on the age (in whole years) you would have attained as of the first of the month following your death.

If your beneficiary does not apply for the death benefit in time for it to begin to be paid within 6 months after the first day of the month following your death, no retroactive payment will be made.  Instead, the benefit may be actuarially adjusted to account for the age you would have reached (in whole years) as of the benefit commencement date, rather than the date of death.  Thus, the benefit will be adjusted only if you would have turned another year older between the date of death and the date the benefit commences. 

Your beneficiary needs to remember that Pre-retirement Death Benefits are only paid after the Fund has received a complete application.  Specifically, if the application (and all required accompanying documentation) is submitted by the 15th day of any month, the benefit will begin on the first of the following month.  If the application is submitted after the 15th day of the month, the benefit will begin on the first day of the second following month.  The Pre-retirement Death Benefit application is available at afm-epf.org/forms.aspx or by contacting the Fund Office at 1-800-833-8065 extension 1311.

There will be no change to the following existing rules concerning the Pre-retirement Death Benefit:

1. Naming your beneficiary.  You may designate up to 3 individuals (or if greater, the number of your natural children or children placed for adoption) as primary beneficiaries, and up to an additional 3 individuals as alternate beneficiaries (or if greater, the number of your natural children or children placed for adoption), to share in your Pre-retirement Death Benefit. Alternate beneficiaries will receive the benefit only if all primary beneficiaries are deceased when benefits become payable. A trust or an estate cannot be designated as a beneficiary. If you want to name a minor child as a beneficiary, special rules apply.

1. Surviving spouse is automatic beneficiary.  If you are legally married to an opposite-sex spouse on the date of your death, your spouse will automatically be your sole beneficiary even if you designated a different primary beneficiary(ies) on the Fund’s beneficiary form.  If you are legally married to a same-sex spouse on the date of your death, your spouse will be your sole beneficiary only if there are no living primary or alternate beneficiaries or if the Fund Office does not have a complete beneficiary form for you on file.

1. No benefit is paid if no beneficiary form is on file.  If the Fund Office does not have a complete beneficiary form for you on file (or there is no living primary or alternate designated beneficiary) on the date of your death, no Pre-retirement Death Benefit will be payable unless you have a surviving spouse as described in the paragraph above. 

The Pre-retirement Death Benefit Beneficiary Designation Form is available here or by contacting the Fund Office at 1-800-833-8065 extension 1311.

This information is a “summary of material modifications” to your 2005 Summary Plan Description (“SPD”) and modifies the information in the SPD.  Please keep it with your SPD for future reference.

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IMPORTANT NOTICE

To:                  All Participants

From:             Board of Trustees

Re:                  Changes to Plan – Correction of Records

Date:               September 2008

This notice is a summary of material modifications that contains important information about your benefits from the American Federation of Musicians and Employers’ Pension Fund (the “Fund”).  This document amends the Summary Plan Description (“SPD”) for the Fund.  Please read it carefully and keep it with a copy of your SPD. 

The purpose of this notice is to advise you of a change in the rules regarding requests to correct the Fund’s records with respect to the “Pension Credit Review Procedure” (described on page 36 of your SPD and in the Fund’s procedures found at /index/policyprocedures/correctingPlanRecords.aspx).  The Pension Credit Review Procedure describes the method to correct information in the Fund’s records when you had Covered Employment that you believe was not properly credited (or not reported at all).

Under the new rule, beginning January 1, 2011, you must request a correction of your records with respect to contributions or Covered Employment within three years after the end of the calendar year in which you received wages for the Covered Employment.  The Fund will not consider a request for correction that is received more than three years after the year in which you received wages for the Covered Employment. 

The Annual Covered Earnings Report that the Fund sends to participants every fall should include all of the Covered Earnings paid during the previous calendar year.  Accordingly, any request to correct Covered Earnings received in 2007 that are not shown in the 2007 Annual Covered Earnings Report (which the Fund will send in September 2008) or any earlier report must be received by the Fund by December 31, 2010.  Similarly, a request to correct Covered Earnings received in 2008 that are not shown in the 2008 Annual Covered Earnings Report (which the Fund will send in September 2009) must be received by the Fund by December 31, 2011.

This rule is being adopted in large part because history has shown that requests to correct Covered Earnings from many years ago are likely to be denied (after a significant amount of costly research by the Fund Office) because, as time passes, it becomes more and more difficult to obtain evidence verifying that there is an inaccuracy.  This rule will not only conserve Fund resources but will also help ensure that mistakes are addressed promptly – when there is the greatest likelihood that they can be corrected.  The Trustees have made this change effective January 1, 2011 to give participants a significant amount of time to review their records and report any incorrect information to the Fund.  Until that time, the existing procedures, which require various levels of proof, depending on the time that has elapsed, will remain in place.

Please remember that you should always review your Annual Covered Earnings Report carefully as soon as you receive it.  The only way to obtain a correction of Covered Employment or contributions is to submit to the Fund Office a complete pension credit review form available at PCRFORMREVISED.pdf along with other documentation requested in the form, within the relevant time limits.

If you have any questions, please contact the Fund office at 1-800-833-8065 extension 1311.

Applying for Your Pension Benefit

In order to receive your pension benefit, you must file a complete pension application as described in Step 1 and a follow-up “choice of benefit” form described in Step 2, and all required attachments, within the time periods described below.

Step 1: The Initial Pension Application

You must complete a pension application form, which is available from the Fund Office or on the Fund’s website at www.afm-epf.org. 

The completed pension application form, including all applicable proof of age, marriage and divorce documents, should be returned to the Fund Office at least 90 days before the date that you want your pension benefit to begin. We will notify you in writing if you are not eligible for a pension benefit or if additional items are needed to complete the application.  If you do not provide the requested items within 90 days of our request, your application will expire and you will need to begin the application process again. 

Step 2: The Choice of Benefit Form

Within 30 days of receiving a complete initial pension application from you, the Fund Office will send you a “choice of benefit” form for you to choose how your pension will be paid, along with a written explanation of your normal form of payment, other payment options that are available to you, and your spouse’s rights with respect to payment options and the financial effect of waiving the normal form of payment. You must return to the Fund Office a fully completed choice of benefit form and the spousal consent, if required, before your pension can begin.

Your pension will become effective on the first day of the month following the date on which the Fund receives a complete choice of benefit form, or the first day of the second month following that date if we receive the form after the 15th day of the month. 

If, based on this timing, the effective date of your pension would be more than 180 days after you were provided with the choice of benefit form, then your application will expire and you will need to complete the application process again.

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IMPORTANT NOTICE

To:      All Participants

From:  Board of Trustees

Re:      Changes to the Plan Effective April 1, 2007

Date:   March 15, 2007

            This notice contains important information about your future benefits from the American Federation of Musicians and Employers’ Pension Fund (the “Fund”). Please read it carefully and keep it with a copy of your Summary Plan Description.  The changes described in this notice will have no effect on your benefits earned through March 31, 2007, which will be paid under the Fund’s rules currently in effect.

As you may recall, the Fund, like many other pension funds, was severely affected by the significant decline of the financial markets during 2000 through early 2003. The resulting investment losses required action on the part of the Trustees so that the Fund would continue to satisfy the Internal Revenue Service (“IRS”) funding rules applicable to tax-qualified plans. As we previously reported to you, after extensive deliberations the Trustees decided upon a two-part approach, consisting of implementing benefit modifications effective January 1, 2004 and applying to the IRS for relief from its funding rules.  The Trustees recognized that additional benefit modifications would likely be necessary if the relief was not granted, but nevertheless decided that seeking relief was preferable to making even steeper benefit reductions. Unfortunately, the IRS has advised the Fund that it would not provide relief on the basis requested by the Trustees, and proposed restrictions on the relief that were so onerous that the Trustees ultimately withdrew the application. 

The Fund’s overall funding status has improved since 2003 due both to generally strong investment results and the projected cost savings from the 2004 benefit modifications.    However, despite this improvement, the Fund’s actuaries project that the Fund will not be able to satisfy the IRS funding rules in the near future because of the way in which gains and losses are required to be recognized for purposes of IRS funding rules.  Put simply, under the IRS’s rules, gains and losses are required to be spread out over extended periods.  As a result, the investment losses incurred over the plan years ending March 31, 2001 through March 31, 2003 are still being taken into account, whereas the gains from later years are not yet fully recognized.  Although the recent gains exceed the Fund’s investment assumptions, they are not yet sufficient to make up for the unusually large losses in the previous years, particularly since they must be allocated over so long a period of time.  Thus, while the Fund’s financial condition has improved from a long-term perspective, over the short-term the Fund is not projected to satisfy the IRS funding rules. As a result, an additional benefit modification is required.

The Trustees have carefully considered, along with the Fund’s actuaries and other advisors, the changes to the Fund’s benefits designed to impose the least hardship on participants but still position the Fund to be financially stable for many years to come.  As part of these considerations, at the Trustees’ request the actuaries have carefully reviewed each of the Fund’s actuarial assumptions and adjusted them where appropriate. The updated assumptions add to the cost of the Fund but will ultimately add to the Fund’s financial health over the long term. 

While we deeply regret having to reduce future benefits, we have done so with the intention of placing the Fund on a very stable financial basis for many years.  We are pleased to report that, with the benefit modification and using the updated assumptions, the Fund is now projected to continue to meet the current IRS funding rules through 2041, the longest period over which the Fund’s actuaries have calculated projections. 

The specific changes are as follows:

1.         CHANGE IN THE BENEFIT MULTIPLIER FOR ALL PENSION BENEFITS EXCEPT RE-DETERMINATION BENEFITS

            As you know, the monthly pension benefits paid to a participant by the Pension Fund are generally determined by multiplying every $100 of contributions earned by a participant by a specified dollar amount, known as the “benefit multiplier.” 

            The benefit multiplier will be reduced for all contributions earned on and after April 1, 2007, with a delayed effective date for re-determination benefits described in section 2 below.  The benefit multiplier for each age at which benefits begin is shown in the chart below.  Column A shows the benefit multiplier for contributions earned through December 31, 2003.  Column B shows the benefit multiplier for contributions earned from January 1, 2004 through March 31, 2007. Column C shows the benefit multiplier that will apply to contributions earned on and after April 1, 2007.

            Participants with contributions both before and after April 1, 2007 will have their benefits calculated by adding together the benefit produced by:

1.   the contributions earned before January 1, 2004, if any, calculated using the benefit multiplier in column A; plus
2.   the contributions earned between January 1, 2004 and March 31, 2007 calculated using the benefit multiplier in column B; plus
3.   the contributions earned on and after April 1, 2007 calculated using the benefit multiplier in column C.

Examples of how this will work are shown below.  Note that the examples assume that benefits are paid in the form of a single life annuity (with a guarantee, in the case of benefits based on contributions earned before 2004).  If benefits are ultimately paid in the form of a joint and survivor annuity, they will be reduced to pay for the survivor annuity, just as under current Fund rules (with pop-up and 60-month guarantee features for the portion of the benefit based on contributions earned before 2004).

Example 1A

Jack begins to receive his pension in August 2009 at age 65.  Total contributions made on his behalf are $57,600 for work before 2004, $30,100 for work between January 1, 2004 and March 31, 2007, and $23,500 for work on or after April 1, 2007.  Jack’s monthly benefit is $4,495.65, calculated by adding:
(1) the benefit attributable to the $57,600 ($57,600 ÷ 100 X $4.65 = $2,678.40), plus (2) the benefit attributable to the $30,100 ($30,100 ÷ 100 X $3.50 = $1,053.50), plus (3) the benefit attributable to the $23,500 ($23,500 ÷ 100 X $3.25 = $763.75). 

If the rules had not changed, contributions for work after April 1, 2007 would have been calculated at the rate previously in effect and Jack would have received a monthly benefit of $4,554.40: ($57,600 ÷ 100 X $4.65 = $2,678.40) plus ($30,100 ÷ 100 X $3.50 = $1,053.50) plus ($23,500 ÷ 100 X $3.50 = $822.50).
                                                                                                       
Example 1B

Willa begins to receive her pension in March 2008 at age 55.  Total contributions made on her behalf are $50,200 for work before 2004, $5,700 for work between January 1, 2004 and March 31, 2007, and $1,500 for work on or after April 1, 2007.  Willa’s monthly benefit is $1,260.47 calculated by adding:
(1) the benefit attributable to the $50,200 ($50,200 ÷ 100 X $2.33 = $1,169.66), plus (2) the benefit attributable to the $5,700 ($5,700 ÷ 100 X $1.28= $72.96), plus
(3) the benefit attributable to the $1,500 ($1,500 ÷ 100 X $1.19=$17.85). 

If the rules had not changed, contributions for work after April 1, 2007 would have been calculated at the rate previously in effect, and Willa would have received a monthly benefit of $1,261.82 ($50,200  ÷ 100 X $2.33= $1,169.66) plus ($5,700 ÷ 100 X $1.28= $72.96) plus ($1,500 ÷ 100 X $1.28 = $19.20) . 

Example 1C

Richard begins to receive his pension in October 2011 at age 61. Total contributions made on his behalf are $11,200 for work before 2004, $3,200 for work between January 1, 2004 and March 31, 2007, and $6,500 for work on or after April 1, 2007. Richard’s monthly benefit is $649.65, calculated by adding:
(1) the benefit attributable to the $11,200 ($11,200 ÷ 100 X $3.91 = $437.92), plus (2) the benefit attributable to the $3,200 ($3,200 ÷ 100 X $2.29 = $73.28), plus
(3) the benefit attributable to the $6,500 ($6,500 ÷ 100 X $2.13 = $138.45). 

If the rules had not changed, contributions for work after April 1, 2007 would have been calculated at the rate previously in effect, and Richard would have received a monthly benefit of $660.05 ($11,200 ÷ 100 X $3.91 = $437.92) plus ($3,200 ÷ 100 X $2.29 = $73.28) plus ($6,500 ÷ 100 X $2.29 = $148.85).

2.         BENEFITS EARNED BY WORKING PENSIONERS AGE 65 AND OLDER (“RE-DETERMINATION BENEFITS”)

            As you know, benefits earned by working pensioners age 65 and older are currently calculated by multiplying the contributions received by the Fund (or determined to be due, if earlier) in any particular year by the age 65 benefit multiplier.  The resulting amount is then reduced by the actuarial value of the re-determination benefits paid during the previous calendar year (to the extent those benefits were earned after 2003).  The additional benefit, if any, is paid beginning the July 1 following the year in which the benefit was earned.

The current $3.50 benefit multiplier will continue to apply to benefits earned in calendar year 2007 by working pensioners age 65 and older. The benefit multiplier for benefits earned in or after calendar year 2008 by working pensioners age 65 and older will be changed to $3.25. 

The following are examples of this change.  As in the case of the previous examples, the examples assume that benefits are paid in the form of a single life annuity.  The examples do not specify the actuarial factor used by the Fund Office to calculate the offset, since factors change every April 1.

Example 2A:

Veronica begins to receive her pension in February 2004 at age 65.  After she begins her pension, the Fund receives additional contributions for engagements during March through December 2004 in the amount of $4,500.  These contributions result in a monthly benefit in addition to her regular pension benefit, known as a “re-determination benefit,” of $157.50 ($4,500 ÷ 100 X $3.50) beginning July 1, 2005.

The Fund receives additional contributions on behalf of Veronica for engagements in 2005 in the amount of $3,000.  Her additional monthly benefit commencing July 1, 2006 will be $105.00 ($3,000 ÷ 100 X $3.50), less $6.84/month (the actuarial value of the $945 in re-determination benefits received in 2005 using the applicable actuarial factor), or $98.16 per month, for a total monthly re-determination benefit of  $255.66 ($157.50 + $98.16).

The Fund receives additional contributions on behalf of Veronica for engagements in 2006 in the amount of $600.  Her additional monthly benefit commencing July 1, 2007 will be $21 ($600 ÷ 100 X $3.50) less $18.51/month (the actuarial value of the $2,478.96 in re-determination benefits received in 2006 using the applicable actuarial factor), or $2.49 per month, for a total monthly re-determination benefit of  $258.15 ($255.66 + $2.49).

The Fund receives additional contributions on behalf of Veronica for engagements in 2007 in the amount of $700.  Her additional monthly benefit commencing July 1, 2008 will be $24.50 ($700 ÷ 100 X $3.50) less $23.71/month (the actuarial value of the $3,082.86 in re-determination benefits received in 2007 using the applicable actuarial factor), or $0.79 per month, for a total monthly re-determination benefit of $258.94 ($258.15 + $0.79).

The Fund receives additional contributions on behalf of Veronica for engagements in 2008 in the amount of $1,000.  Her additional monthly benefit commencing July 1, 2009 will be $32.50 ($1,000 ÷ 100 X $3.25) less $24.62/month (the actuarial value of the $3,102.54 in re-determination benefits received in 2008 using the applicable actuarial factor), or $7.88 per month, for a total monthly re-determination benefit of  $266.82 ($258.94 + $7.88). 

The Fund receives additional contributions on behalf of Veronica for engagements in 2009 of $200.  Her additional monthly benefit commencing July 1, 2010 will be $6.50 ($200 ÷ 100 X $3.25) less $25.86/month (the actuarial value of the $3,154.56 in re-determination benefits received in 2009 using the applicable actuarial factor).  Since the value of benefits paid in 2009 is greater than the additional benefits earned in that same year, her monthly re-determination benefit at July 1, 2010 will remain the same at $266.82. 

If the rules had not changed, Veronica’s additional monthly benefit commencing July 1, 2009 would have been $35.00 ($1,000 ÷ 100 X $3.50) less $24.62/month (the actuarial value of the $3,102.54 in re-determination benefits received in 2008 using the same applicable actuarial factor used in the paragraph above), or $10.38 per month per month, for a total monthly re-determination benefit of $269.32.  Her additional monthly benefit commencing July 1, 2010 would have been $7.00 ($200 ÷ 100 X $3.50) less $25.98/month (the actuarial value of the $3,169.56 in re-determination benefits received in 2009 using the same applicable actuarial factor used in the paragraph above). Since the value of benefits paid in 2009 would have been greater than the additional benefits earned in that same year, her monthly re-determination benefit at July 1, 2010 would have remained the same at $269.32.

Example 2B:  

Peter begins to receive his pension in January 2004 at age 65.  After he begins his pension, the Fund receives additional contributions for engagements during January through December 2004 in the amount of $4,500.  These contributions result in a monthly re-determination benefit of $157.50 ($4,500 ÷ 100 X $3.50) beginning July 1, 2005.

The Fund receives additional contributions on behalf of Peter for engagements in 2005 in the amount of $4,500.  His additional monthly benefit commencing July 1, 2006 will be $157.50 ($4,500 ÷ 100 X $3.50), less $6.84/month (the actuarial value of the $945 in re-determination benefits received in 2005 using the applicable actuarial factor), or $150.66 per month, for a total monthly re-determination benefit of $308.16 ($157.50 + $150.66).

The Fund receives additional contributions on behalf of Peter for engagements in 2006 in the amount of $4,500.  His additional monthly benefit commencing July 1, 2007 will be $157.50 ($4,500 ÷ 100 X $3.50) less $20.86/month (the actuarial value of the $2,793.96 in re-determination benefits received in 2006 using the applicable actuarial factor), or $136.64 per month, for a total monthly re-determination benefit of $444.80 ($308.16 + $136.64). 

The Fund receives additional contributions on behalf of Peter for engagements in 2007 in the amount of $4,500.  His additional monthly benefit commencing July 1, 2008 will be $157.50 ($4,500 ÷ 100 X $3.50) less $34.75/month (the actuarial value of the $4,517.76 in re-determination benefits received in 2007 using the applicable actuarial factor), or $122.75 per month, for a total monthly re-determination benefit of  $567.55 ($444.80 + $122.75).

The Fund receives additional contributions on behalf of Peter for engagements in 2008 in the amount of $4,500.  His additional monthly benefit commencing July 1, 2009 will be $146.25 ($4,500 ÷ 100 X $3.25) less $48.19/month (the actuarial value of the $6,074.10 in re-determination benefits received in 2008 using the applicable actuarial factor), or $98.06 per month, for a total monthly re-determination benefit of  $665.61 ($567.55 + $98.06). 

The Fund receives additional contributions on behalf of Peter for engagements in 2009 of $4,500.  His additional monthly benefit commencing July 1, 2010 will be $146.25 ($4,500 ÷ 100 X $3.25) less $60.66/month (the actuarial value of the $7,398.96 in re-determination benefits received in 2009 using the applicable actuarial factor), or $85.59 per month, for a total monthly re-determination benefit of  $751.20 ($665.61 + $85.59). 

If the rules had not changed, Peter’s additional monthly benefit commencing July 1, 2009 would have been $157.50 ($4,500 ÷ 100 X $3.50) less $48.19/month (the actuarial value of the $6,074.10 in re-determination benefits received in 2008 using the same applicable actuarial factor used in the paragraph above), or $109.31 per month, for a total monthly re-determination benefit of  $676.86.  His additional monthly benefit commencing July 1, 2010 would have been $157.50 ($4,500 ÷ 100 X $3.50) less $61.21/month (the actuarial value of the $7,466.46 in re-determination benefits received in 2009 using the same applicable actuarial factor used in the paragraph above), for a total of $96.29 per month, for a total monthly re-determination benefit of $773.15.

Example 2C:  

Evan begins to receive his pension in September 2004 at age 66.  After he begins his pension, the Fund receives additional contributions for engagements during September through December 2004 in the amount of $300.  These contributions result in a monthly re-determination benefit of $10.50 ($300 ÷ 100 X $3.50) beginning July 1, 2005.

The Fund receives additional contributions on behalf of Evan for engagements in 2005 in the amount of $200.  His additional monthly benefit commencing July 1, 2006 will be $7.00 ($200 ÷ 100 X $3.50), less $0.46/month (the actuarial value of the $63.00 in re-determination benefits received in 2005 using the applicable actuarial factor), or $6.54 per month, for a total monthly re-determination benefit of  $17.04 $10.50 + $6.54).

The Fund receives additional contributions on behalf of Evan for engagements in 2006 in the amount of $600.  His additional monthly benefit commencing July 1, 2007 will be $21.00 ($600 ÷ 100 X $3.50) less $1.23/month (the actuarial value of the $165.24 in re-determination benefits received in 2006 using the applicable actuarial factor), or $19.77 per month, for a total monthly re-determination benefit of  $36.81 ($17.04 + $19.77). 

The Fund receives no additional contributions on behalf of Evan for engagements in 2007.  His monthly re-determination benefit at July 1, 2008 will remain the same at $36.81.

The Fund receives additional contributions on behalf of Evan for engagements in 2008 in the amount of $100.  His additional monthly benefit commencing July 1, 2009 will be $3.25 ($100 ÷ 100 X $3.25) less $3.50/month (the actuarial value of the $441.72 in re-determination benefits received in 2008 using the applicable actuarial factor). Since the value of benefits paid in 2008 is greater than the additional benefits earned in that same year, his monthly re-determination benefit at July 1, 2009 will remains the same at $36.81.   

The Fund receives additional contributions on behalf of Evan for engagements in 2009 of $200.  His additional monthly benefit commencing July 1, 2010 will be $6.50 ($200 ÷ 100 X $3.25) less $3.62/month (the actuarial value of the $441.72 in re-determination benefits received in 2009 using the applicable actuarial factor), or $2.88 per month, for a total monthly re-determination benefit of  $39.69 ($36.81 + $2.88). 

If the rules had not changed, Evan’s additional monthly benefit commencing July 1, 2009 would have been $3.50 ($100 ÷ 100 X $3.50) less $3.50/month (the actuarial value of the $441.72 in re-determination benefits received in 2008 using the same applicable actuarial factor used in the paragraph above).  Since the value of benefits paid in 2008 would have been equal to the additional benefits earned in that same year, his monthly re-determination benefit at July 1, 2009 would have remained the same at $36.81.  His additional monthly benefit commencing July 1, 2010 would have been $7.00 ($200 ÷ 100 X $3.50) less $3.62/month (the actuarial value of the $441.72 in re-determination benefits received in 2009 using the same applicable actuarial factor used in the paragraph above), or $3.38 per month, for a total monthly re-determination benefit of $40.19.

This notice is required to be furnished to you pursuant to Section 204(h) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and Section 4980F of the Internal Revenue Code.  This notice also constitutes a summary of material modifications under Sections 102(a) and 104(b) of ERISA.

Click here to see affected section of SPD

• The Plan is a defined benefit multi-employer pension plan. A defined benefit plan specifies the benefits to which participants may become entitled. Defined benefit plans do not have individual participant accounts into which employer contributions are paid (even though your benefit is based on the contributions made on your behalf). A multi-employer plan is a plan that is maintained in accordance with collective bargaining agreements between one or more unions and one or more employers that employ individuals represented by the union(s).
• Your Employer makes all contributions to the Fund. You are neither required nor allowed to contribute.
• You become an Active Participant as soon as you earn $750 from Covered Employment in a calendar year.
• The more you earn in Covered Employment over the course of your career, the greater your pension benefit will be.
• You become vested in your pension benefit (which means you can never lose it) generally after you complete five years of Vesting Service.
• Once you're vested, you can start to receive your benefit as early as age 55, if you retire.
• When you receive your pension benefit, you generally have a choice of payment options. (If you're Married, special rules apply.)
• If you return to Covered Employment after you begin to receive your Initial Pension Benefit, you may be eligible for additional benefits.
• A Disability Pension Benefit is available to eligible Participants.
• If you die after becoming vested, but before you retire from Covered Employment, your Spouse (if you are Married) or other beneficiary (if you are not Married) may receive a Pre-retirement Death Benefit.

Some of the more technical terms are defined in the Glossary.

• you are employed as a musician or by the Fund, the Union, or other Employer acceptable to the Board of Trustees, and
• your Employer has entered into a Collective Bargaining Agreement acceptable to the Board of Trustees requiring the Employer to contribute to the Fund on your behalf.

• complete five years of Vesting Service (as described below) including at least one-quarter year of Vesting Service after 1986, or
• reach Normal Retirement Age while you are an Active Participant. Normal Retirement Age is your 65th birthday or, if later, the date on which you complete five years of participation on or after April 1, 1988.

Being vested means you have earned a non-forfeitable right to receive a pension benefit - even if you stop working in Covered Employment.

Many different Employers contribute to the Fund. As long as you are working in Covered Employment - even if you work for more than one Employer or change from one Employer to another - and have sufficient total Covered Earnings each calendar year, you will continue to earn Vesting Service based on all of your Covered Earnings.

• certain periods of military service;
• the first year in which you had an absence from work covered under the Family and Medical Leave Act of 1993 (FMLA) or, for leaves before the FMLA became effective, an absence from work because of pregnancy, the birth of your child, adopting a child, or caring for a newborn or newly adopted child;
• a period during which vesting service is earned under the Canadian Plan;
• certain periods of Non-covered Employment for a contributing Employer.

If you are not vested, you will have a Permanent Break in Service if you have five consecutive One-year Breaks in Service.

If you stop working in Covered Employment after you become vested, you will never lose credit for Vesting Service or the contributions made on your behalf.

Fund Participants are neither required nor allowed to make contributions to the Fund on their own behalf.

• Regular Pension Benefits, which provide benefits as early as age 55 to eligible Participants;
• Disability Pension Benefits, which provide benefits to eligible Participants who cease Covered Employment due to a Total Disability;
• Additional pension benefits if you return to Covered Employment after your Regular Pension Benefit or Disability Pension Benefit (both of which are sometimes referred to as your Initial Pension Benefit) begins. There are two different types of additional pension benefits: Re-retirement Pension Benefits, which are earned before your Normal Retirement Age - usually age 65 - and Re-determination Benefits, which are earned after your Normal Retirement Age;
• Retirement Account Benefits (RAB), which may be available to eligible Participants who had Covered Earnings prior to 1968;
• Death Benefits, which provide financial protection to a Spouse or other beneficiary when an eligible Participant dies.

NOTICE OF CHANGE
Please refer to March 15, 2007 204(h) notice that affects this section of the plan.

You earn a Regular Pension Benefit based on contributions made on your behalf up until the time you start to receive a pension benefit.

Eligibility for a Regular Pension Benefit

You become eligible to receive a Regular Pension Benefit when you file a complete application with the Fund Office and meet either of the following requirements:

• You reach your Normal Retirement Age (generally age 65) while you are still an Active Participant; or
• You reach age 55, are vested, and retire from all Covered Employment.

• total vested contributions credited to you;
• your age when your pension benefit begins, and
• the form of payment you elect.

• $45,000 for Covered Employment performed before 2004
• $15,000 for Covered Employment performed in 2004 and after

Different benefit forms (such as lump sum and life annuity) are frequently described as having an "actuarial equivalent value," or an amount payable in one form is described as being the "actuarial equivalent value" of an amount payable in a different form. This means that the two different benefit forms or amounts have an equal value under a set of actuarial assumptions with respect to interest rates and mortality that are set forth in the Plan and that change from time to time. Similarly, when a benefit is "actuarially" increased or reduced, it is increased or reduced in accordance with these assumptions to account for a later or earlier start date (or older or younger age) and the corresponding expectation that the benefit will be paid over a shorter or longer period of time, respectively.

• $200,000 for Covered Employment performed before 2004
• $18,000 for Covered Employment performed in 2004 and after

NOTICE OF CHANGE
Please refer to April 1, 2009 update that affects this section of the plan.