Article 2. Basis of Employer Participation in Plan

Section 2.01 General

The Pension Plan was established to provide retirement benefits for employees who are represented for the purpose of collective bargaining by the Union.  After a Collective Bargaining Agreement is concluded with an employer requiring contributions to the Pension Fund, the participation by the employees of that employer becomes effective when the group participates in the Plan. 

In general, the employees of employers will participate in the Plan if their joining the Plan is in accordance with the procedures established by the Trustees and if acceptance of the group will not impair the actuarial soundness of the Fund or the tax-qualified status of the Plan under Section 401(a) of the Code. 

In addition to employees represented for the purpose of collective bargaining by the Union, the Trustees have decided to permit participation by other classes of employees who are employed by a Contributing Employer but who may not be represented for the purpose of collective bargaining by the Union.  Such participation shall be on the terms and conditions determined by the Trustees, provided that the participation of any such group will not impair the actuarial soundness of the Fund or adversely affect the Plan’s tax-qualified status under Section 401(a) of the Code.  

Section 2.02 Acceptance of a New Employer for Participation

An employer will participate in the Plan as a Contributing Employer, within the meaning of Section 1.10(a), after it becomes a party to a Collective Bargaining Agreement or other agreement in a form approved by the Trustees that, in pertinent part, requires the employer to contribute to the Fund, in which case, the Contributing Employer shall abide by the terms of this Plan and the Trust Agreement.  When an employer seeks to be a Covered Employer, each Local may be required to furnish to the Fund Office the name, date of birth and employment history of each employee then covered by the Collective Bargaining Agreement between the Union and the new employer and such other information as may be requested for purposes of making the determinations described in Section 2.08(a).  A Participating Local or a Related Organization shall participate in the Plan in accordance with the terms of Sections 1.10(b) and 2.06, respectively.  An Owner-Member shall participate in the Plan in accordance with the terms of  Section 1.13(d). 

Section 2.03 Special Conditions

When a Contributing Employer participates in the Plan, or when a Contributing Employer becomes obligated to contribute to the Fund at a Contribution Rate higher than $0.25 per hour paid, the Trustees may, in writing, impose any terms and conditions they consider necessary to satisfy Section 2.08 and to preserve the equitable relationship between the basis of contributions of all Contributing Employers and the benefits provided for all Covered Employees; provided that such terms and conditions shall not result in the reduction or elimination of a benefit in violation of Section 411(d)(6) of the Code. 

Section 2.04 Termination of Participation

  The termination of an employer’s status as a Contributing Employer, or a Local’s status as a Participating Local, or an employee’s status as a Covered Employee as a result of a change in his Employer’s or Participating Local’s status shall be governed by Article 12. 

Section 2.05 Acceptance of Special Class of Employees of a Contributing Employer

The rules pursuant to which the Trustees could, prior to September 1, 1999, accept a special class of employees of a Contributing Employer for participation in the Plan are set forth in Appendix A.

Section 2.06 Related Organization as a Contributing Employer

A health or welfare fund, a pension plan, including the Plan (but solely for periods prior to June 15, 1996), joint apprenticeship committee or other organization which the Trustees find furthers the interests of the employees represented by a Participating Local or District Council (as defined in the SMWIA’s constitution), or the interest of the Sheet Metal Industry, may be accepted in the Plan as a Contributing Employer under the following conditions:

(a)       The organization submits data requested by the Trustees as to the employees covered by such application; and

(b)     The organization agrees to make contributions to the Fund on behalf of the employees covered in such application at the Contribution Rate in effect for Contributing Employers who have a Collective Bargaining Agreement with any related Participating Locals or District Councils.

Section 2.07 Owner-Members

The rules pursuant to which the Trustees could, prior to January 1, 2002, allow Owner-Member participation in the Plan are set forth in Appendix A.

Section 2.08 Basis for Participation and Continuing Participation

(a)        If it is determined at any time that the participation or continued participation of any Contributing Employer including, but not limited to, any Participating Local or Related Organization, or if participation or the continued participation of any Owner-Member or special class of employees, would or could, in the judgment of the Trustees with the advice of the actuaries of the Fund, adversely affect the actuarial soundness of the Fund or the ongoing tax-qualified status of the Plan under Section 401(a) of the Code, the Trustees may, as a condition of participation or continued participation, modify any terms and conditions of such participation and/or take any such actions (including, but not limited to, limiting participation in the fund) that they, in their sole discretion, consider necessary or appropriate to preserve the actuarial soundness of the Fund or the ongoing tax-qualified status of the Plan under Section 401(a) of the Code.  In considering the effect that continued participation of any Contributing Employer, Participating Local, Related Organization or Owner-Member could have on the actuarial soundness of the Fund or on the ongoing tax-qualified status of the Plan under Section 401(a) of the Code, the Trustees are authorized to consider the effect on the Fund if other Contributing Employers, Participating Locals, Related Organizations and/or Owner-Members were to participate on the same or similar terms.

(b)        Notwithstanding the foregoing, no action may be taken pursuant to this Section 2.08 to the extent it would cause a reduction or elimination of a benefit in violation of Section 411(d)(6) of the Code.

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