About the Plan: Article 4. Pension Credit and Breaks in Service

Article 4. Pension Credit and Breaks in Service

Section 4.01 Purpose

The purpose of this Article 4 is to define the basis on which Participants accumulate Pension Credit for purposes of determining pension benefits under the Plan. This Article 4 also defines the circumstances under which Pension Credit and Years of Service may be lost pursuant to a Break in Service.

Section 4.02 Past Service Credit for an Employer’s Contribution Date before January 1, 2000

Past Service Credit shall be granted with respect to a Participant whose Employer’s Contribution Date is before January 1, 2000, in accordance with Section 4.02 of Appendix A.

Section 4.03 Past Service Credit for an Employer’s Contribution Date on or after January 1, 2000

(a) For an Employer’s Contribution Date that is on or after January 1, 2000, Past Service Credit for any years of employment prior to the Employer’s Contribution Date will be granted to the Participant on the basis of one year of Past Service Credit for each year of Future Service Credit subsequently earned if:

(1) the Contributing Employer’s initial Contribution Rate is at least 50¢ per hour; and

(2) the Participant is employed by the Employer in Covered Employment on the Contribution Date or was employed by the Employer within the 24-month period preceding the Employer’s Contribution Date and is engaged in Covered Employment on the Employer’s Contribution Date.

(b) Past Service Credit granted in accordance with this section shall be limited to:

(1) a maximum of 10 years; and

(2) periods during which the Participant was actively employed by the Employer and not absent due to sick leave, jury duty, parental leave or similar circumstances.

(c) The provisions of Section 4.02 of Appendix A shall apply to Past Service Credit granted in accordance with this Section.

(d) Notwithstanding the provisions of subsection (a) that requires an Employer’s Contribution Date to be on or after January 1, 2000, the provision shall apply to:

(1) Effective August 11, 2005, Employees engaged in Covered Employment with SEMCO, Inc. (formerly known as Autoduct) from September 1999 and who continued to work in Covered Employment with SEMCO, Inc. through November 2000, under the terms of a Collective Bargaining Agreement with Local Union No. 32, shall be granted Past Service Credit in accordance with the provisions of this Section 4.03. The Contribution Date for both SEMCO, Inc. (formerly Autoduct) and the Covered Employees identified under this subsection (d)(1) shall be September 1, 1999 and all other provisions of this section 4.03 shall otherwise apply.

(2) Effective August 11, 2005, Employees engaged in Covered Employment with Hayes & Buri, as of October 1999 and who continued to work in Covered Employment with Hayes and Buri, Inc., through December 2003, under the terms of a Collective Bargaining Agreement with Local Union No. 71, shall be granted Past Service Credit in accordance with the provisions of this section 4.03. The Contribution Date for both Hayes & Buri, Inc. and the Covered Employees identified under this subsection (d)(2) shall be October 1, 1999 and all other provisions of this section 4.03 shall otherwise apply.

Section 4.04 Credit for Calendar Year of Contribution Date

For the first Calendar Year in which a Participant’s Contribution Date occurs, if the Contribution Date is on a date other than January 1^st, and if the Participant worked 150 days or earned $2500 in Covered Employment, he shall be given one (1) year of Past Service Credit for the full Calendar Year, as though it were a Year of Service for which the Employee is entitled to Past Service Credit. However, the period for which contributions have been made in that Calendar Year shall also be counted as minimum Future Service Credit under Section 4.09 of the Plan and toward the Years of Service for purposes of vesting under Section 8.07; provided that no Participant may receive credit for more than one (1) Calendar Year during any 12-consecutive month period of employment.

Section 4.05 Work for Employer Who Went Out of Business, or for Local That Becomes or Merges Into a Participating Local

(a) If a Participant worked for an employer who went out of business, and such business was taken over by a Contributing Employer, or in other comparable situations, credit for periods of employment with the employer who went out of business may be granted for purposes of Section 4.02 of Appendix A, if the Trustees, in their sole discretion, are satisfied on the basis of evidence submitted to them, that it is appropriate to treat the Contributing Employer as one who succeeded to the business of the employer who went out of business.

(b) If an individual performed employment in the Sheet Metal Industry for an employer that was not covered by a Collective Bargaining Agreement between the employer and a Local Union, but which was covered by a collective bargaining agreement between the employer and the Local that required that the employer contribute to a pension fund maintained by the Local, and the Local becomes a Participating Local or is merged into a Participating Local, the Trustees may grant credit for periods of employment with the employer during the period that the Local Union was not a Participating Local, if the Trustees, in their sole discretion, are satisfied on the basis of evidence submitted to them that it is appropriate to grant past service credit to all similarly-situated members of such Local Union in such a circumstance.

Section 4.06 Past Service Credit for Participants Not Covered by a Collective Bargaining Agreement

Any Past Service Credit granted under this Article 4 to a Participant who is a member of a special class of employees accepted for participation in the Plan under Section 2.05 of Appendix A, or who is employed by a Related Organization or a Participating Local, shall be granted in accordance with the requirements of Treasury Regulation Section 1.401(a)(4)–11(d). Notwithstanding any provision in this Article 4 to the contrary, a Participant who would be treated as a “collectively bargained employee” under paragraph (C) or (D) of Treasury Regulation Section 1.410(b)–6(d)(2)(ii) shall receive Past Service Credit only in a manner that is generally no more favorable than similarly situated Participants who are covered by a Collective Bargaining Agreement.

Section 4.07 Breaks in Service Prior to the Contribution Date (Past Service)

(a) If a Participant’s employment during the period prior to his Contribution Date was interrupted by three (3) consecutive Calendar Years in which the Participant failed to earn at least one (1) year of Past Service Credit, it shall be considered a “Break in Past Service.” In that case, no Past Service Credit shall be granted for the period preceding such Break in Past Service, but he shall be granted Past Service Credit for the years subsequent to such Break in Past Service in which he meets the requirements set forth in Section 4.03 and Section 4.02(b) of Appendix A.

(b) Notwithstanding the provisions of Section 4.07(a), above, no Break in Past Service shall be deemed to have occurred and consequently there shall be no loss of prior Past Service Credit if the Trustees determine, in their sole discretion, that the interruption of the Participant’s employment is attributable to:

(1) proven disability during a period of prior to January 1, 2000, whether occupational or non-occupational, involving total incapacity to work in the capacity in which he was employed when he became disabled and lack of any other employment for a period not exceeding five years;

(2) the Participant being a Reemployed Veteran (as defined in Section 4.15) who incurs a period of Qualified Military Service (as defined in Section 4.15);

(3) service as a full-time elected or appointed officer or employee of the Union; or

(4) notwithstanding the provisions of Section 4.02(a) of Appendix A or anything to the contrary in the Plan, and to the extent permitted under Section 401(a)(4) of the Code and the regulations thereunder, during a period of time prior to January 1, 2000, during which he does not exceed ten years as the owner of a small business employing no more than four people including himself who are covered by a Collective Bargaining Agreement, provided that the owner continues to work inside as a sheet metal worker and not outside erecting during such period and provided further that he subsequently returns to work in Covered Employment.

Section 4.08 Loss of Past Service Credit

(a) Notwithstanding any other provision of this Plan, if a Participant or Employee (or a former Participant or Employee) at any time after his Contribution Date performs at least one (1) hour of employment in the Sheet Metal Industry that is not covered by a collective bargaining agreement between the Union and the employer, then he shall lose all Past Service Credit for the purpose of calculating his benefit amount. However, notwithstanding the foregoing, this Section 4.08 shall not apply to the extent that it would cause any Participant’s or Employee’s Accrued Benefit to be less than it was on August 31, 1988, or to the extent that it would result in a forfeiture of any part of the Accrued Benefit of a Participant who has attained Vested Status under Section 8.07 prior to the date on which he first performs at least one (1) hour of employment in such Non-Covered Employment.

(b) In the event that a Participant or Employee loses all Past Service Credit pursuant to subsection (a) above, that Past Service Credit shall be restored if the Participant or Employee returns to Covered Employment and earns a number of months of Pension Credit, as otherwise determined under this Article 4, equal to the number of months during which he was previously employed for at least one (1) hour in the Sheet Metal Industry in a position not covered by a collective bargaining agreement between the Union and the employer. In the event that the Participant does not earn an equal amount of Pension Credit, the Past Service Credit shall be restored on a pro rata basis determined by dividing the number of months of Pension Credit earned subsequent to his return to Covered Employment by the number of months during which the individual previously worked at least one (1) hour in the Sheet Metal Industry in a position not covered by a collective bargaining agreement between the Union and the employer. Such percentage shall not be greater than 100%. Notwithstanding the foregoing, effective January 1, 2003, an Employee or Participant who returns to Covered Employment after working in the Sheet Metal Industry in a position not covered by a collective bargaining agreement between the Union and the employer shall have all of his Past Service Credit restored provided he (1) terminates the non-covered employment, (2) returns to Covered Employment between January 1, 2002 and December 31, 2004, and (3) thereafter earns at least twelve (12) months of Future Service Credit.

(c) A Participant or Employee’s right to restore lost Past Service Credit pursuant to the preceding paragraph shall be limited to his first return to Covered Employment after being employed for at least one (1) hour in the Sheet Metal Industry in a position not covered by a collective bargaining agreement between the Union and the employer. If the Participant or Employee then leaves Covered Employment again and is again employed for at least one (1) hour in the Sheet Metal Industry in a position not covered by a collective bargaining agreement between the Union and the employer, a subsequent return to Covered Employment shall not qualify for the remedial provisions set forth in the preceding paragraph.

Section 4.09 Pension Credit for Periods on and after the Contribution Date (Future Service Credit)

(a) Participant who performs Construction Work

(1) Calendar Years beginning on or after January 1, 1995

(A) For a Participant who performs Construction Work, for Calendar Years beginning on or after January 1, 1995, with respect to the period commencing on the later of the Participant’s Contribution Date or January 1, 1995, a Participant shall receive one (1) year of Future Service Credit during each Calendar Year in which he completes 1400 or more Hours of Work in Covered Employment. Proportionately less credit shall be granted in accordance with the schedule below:

Hours of Work in Covered Employment During Calendar Year	Months of Future Service Credit
Less than 116 hours 116-231 232-347 348-463 464-579 580-695 696-811 812-927 928-1043 1044-1159 1160-1275 1276-1399 1400 and over	0 1 2 3 4 5 6 7 8 9 10 11 12

(B) Notwithstanding the provisions of Section 4.09(a)(1)(A), if a Participant fails to complete 1400 or more Hours of Work in Covered Employment during a Calendar Year beginning on or after January 1, 1995 and before January 1, 2001, but his total number of Hours of Work in Covered Employment for two consecutive Calendar Years (excluding Calendar Years beginning on or after January 1, 2001) equals or exceeds 2800, he shall not receive proportional credit as shown in the schedule in Section 4.09(a)(1)(A); instead, he shall receive one (1) year of Future Service Credit for each of the two Calendar Years.

(C) Notwithstanding the provisions of Section 4.09(a)(1)(A), if a Participant fails to complete 1400 or more Hours of Work in Covered Employment during a Calendar Year, beginning on or after January 1, 1999 and before January 1, 2000, and if, and only if, his total number of Hours of Work in Covered Employment for 1999 and 2000 equals or exceeds 2800, he shall not receive proportional credit as shown in the schedule in Section 4.09(a)(1)(A), but instead shall receive the following:

(i) solely for purposes of benefit accrual under Section 5.02 of Appendix A, one (1) year of Future Service Credit in 1999; and

(ii) for all other purposes one (1) year of Future Service Credit each in 1999 and in 2000.

(D) In no event shall the special rules set forth in Sections 4.09(a)(1)(B) and (C) apply to any three consecutive Calendar Years.

(E) If a Participant commenced participation (or re-participation) in the Plan on a date other than January 1, and the Participant completes a Year of Service for purposes of Section 8.07 but less than 100 Hours of Work in Covered Employment during the Calendar Year, he shall be credited with a prorated portion of a full Year of Future Service Credit in the ratio that his Hours of Work in Covered Employment has to 1400.

(2) Calendar Years beginning prior to January 1, 1995.

(A) For a Participant who performs Construction Work, for Calendar Years beginning prior to January 1, 1995, with respect to the period commencing on the Participant’s Contribution Date, a Participant shall receive one (1) year of Future Service Credit during each Calendar Year (prior to the Calendar Year beginning on January 1, 1995) in which he completes 1200 or more Hours of Work in Covered Employment. Proportionately less credit shall be granted in accordance with the schedule below:

Hours of Work in Covered Employment During Calendar Year	Months of Pension Credit
Less than 100 hours 100-199 200-299 300-399 400-499 500-599 600-699 700-799 800-899 900-999 1000-1099 1100-1199 1200 and over	0 1 2 3 4 5 6 7 8 9 10 11 12

(B) For a Participant who performs Construction Work, for Calendar Years beginning prior to January 1, 1995, if the Participant commenced participation (or recommences participation) in the Plan on a date other than January 1, and the Participant completes a Year of Service for purposes of Section 8.07 but less than 100 Hours of Work in Covered Employment during the Calendar Year, he shall be credited with a prorated portion of a full Year of Future Service Credit in the ratio that his Hours of Work in Covered Employment has to 1,200.

(b) Participant who Performs Non-Construction Work

(1) Calendar Years beginning on or after January 1, 2000

(A) For a Participant who performs Non-Construction Work for Calendar Years beginning on or after January 1, 2000, with respect to the period commencing on the later of the Participant’s Contribution Date or January 1, 2000, the Participant shall receive one (1) year of Future Service Credit for each Plan Year in which he completes 1400 or more Hours of Work in Covered Employment. Proportionately less credit shall be granted in accordance with the schedule below:

Hours of Work in Covered Employment During Calendar Year	Months of Future Service Credit
Less than 116 hours 116-231 232-347 348-463 464-579 580-695 696-811 812-927 928-1043 1044-1159 1160-1275 1276-1399 1400 and over	0 1 2 3 4 5 6 7 8 9 10 11 1

(2) Calendar Years beginning after January 1, 1976, but before January 1, 2000

(A) For a Participant who performs Non-Construction Work, for the period commencing on his Contribution Date and before January 1, 2000, the Participant shall receive one (1) year of Future Service Credit starting each Calendar Year beginning after January 1, 1976, but before January 1, 2000, in which he completes 1800 or more Hours of Work in Covered Employment. Proportionately less credit shall be granted in accordance with the schedule below:

Hours of Work in Covered Employment During Calendar Years Beginning after January 1, 1976, but before January 1, 2000	Months of Future Service Credit
Less than 100 hours 100-164 165-328 329-492 493-656 657-820 821-984 985-1148 1149-1312 1313-1476 1477-1640 1641-1799 1800 and over	0 1 2 3 4 5 6 7 8 9 10 11 12

(B) Notwithstanding the provisions of Section 4.09(b)(2)(A), if a Participant fails to complete 1800 or more Hours of Work in Covered Employment during a Calendar Year beginning on or after January 1, 1995 and before January 1, 2001, but his total number of Hours of Work in Covered Employment for two consecutive Calendar Years (excluding Calendar Years beginning on or after January 1, 2001) equals or exceeds 3600, he shall not receive proportional credit as shown in the schedule in Section 4.09(b)(2)(A); instead, he shall receive one (1) year of Future Service Credit for each of the two consecutive Calendar Years.

(C) Notwithstanding the provisions of Section 4.09(b)(2)(A), if a Participant fails to complete 1800 or more Hours of Work in Covered Employment during 1999, and if his total number of Hours of Work in Covered Employment for 1999 and 2000 equals or exceeds 3600, he shall not receive proportional credit as shown in the schedule in Section 4.09(b)(2)(A), but instead shall receive the following:

(i) solely for purposes of benefit accrual under Section 5.02 of Appendix A, one (1) year of Future Service Credit in 1999; and

(ii) for all other purposes, one (1) year of Future Service Credit each in 1999 and in 2000.

(D) In no event shall the special rule set forth in Sections 4.09(b)(2)(B) or (C) apply to any three consecutive Calendar Years.

(3) Calendar Years beginning before January 1, 1976.

(A) For a Participant who performs Non-Construction Work, for the period commencing on his Contribution Date and before January 1, 1976, the Participant shall receive one (1) year of Future Service Credit for each Calendar Year before January 1, 1976, in which he completes 1800 or more Hours of Work in Covered Employment. Proportionately less credit shall be granted in accordance with the following schedule:

Hours of Work in Covered Employment During Calendar Years beginning before January 1, 1976	Months of Pension Credit
Less than 150 hours 150-299 300-449 450-599 600-749 750-899 900-1049 1050-1199 1200-1349 1350-1499 1500-1649 1650-1799 1800 and over	0 1 2 3 4 5 6 7 8 9 10 11 12

Section 4.10 Pension Credit for Periods of Unemployment

For Plan Years beginning prior to January 1, 2000 and only for purposes of receiving Pension Credit under this Article, a Participant shall be credited with Hours of Work in Covered Employment equal to the number of hours for which he receives unemployment benefits from a trust fund maintained by his Local Union and Contributing Employer, as specified in Section 4.10 of Appendix A.

Section 4.11 Pension Credit for Periods of Employment under Sheet Metal Workers’ Local Union #22’s Jurisdiction

A Participant shall receive Past Service Credit under Section 4.02(c)(2) of Appendix A for employment prior to December 20, 1996, in the jurisdiction of Sheet Metal Workers’ Local Union #22 as described in Section 4.11 of Appendix A.

Section 4.12 Credit for Periods of Employment as a “Salted Organizer” or “Youth-to-Youth” Apprentice

An individual (i) who is a member of a Local which is a Contributing Employer and who also is working in respect of the Local as a bona fide “Salted Organizer” or as a “Youth-to-Youth” apprentice after June 30, 1998 or (ii) who is an Employee who is working as a bona fide “Salted Organizer” after December 31, 1992 and before July 1, 1998 shall be credited with Hours of Work in Covered Employment for purposes of Sections 1.39, 4.09 and 4.13 of the Plan equal to the number of hours of work performed during such period of employment after December 31, 1992 (in the case of a Salted Organizer), or after June 30, 1998 (in the case of a Youth-to-Youth apprentice), as certified in writing to the Fund Office by the SMWIA. The Hours of Work that are earned under this Section for any one period of work as a Salted Organizer or Youth-to-Youth apprentice shall be credited as they are earned, provided that no such Hours of Work shall be credited unless and until the individual has an Hour of Work in Covered Employment after the last day of that period. The Hours of Service that are to be credited under this Section shall be credited as though they were worked at the prevailing Contribution Rate that was in effect in the jurisdiction of the Local during the individual’s period of employment as a bona fide Salted Organizer or a Youth-to-Youth apprentice, as the case may be.

Notwithstanding anything to the contrary in the Plan, the amount of Future Service Credit that may be granted pursuant to this Section 4.12 shall not exceed 12 months for any single period of employment with the same Employer as a bona fide Salted Organizer, or for all periods of employment as a Youth-to-Youth apprentice.

Section 4.13 Breaks in Service

(a) Purpose

The purpose of this Section is to define the terms “One-Year Break in Service” and “Permanent Break in Service.” This Section also describes the effect of a Break in Service on previously credited service for vesting, participation and benefit accrual purposes.

(b) One-Year Break in Service Defined

(1) An Employee incurs a One-Year Break in Service if he fails to complete 435 Hours of Work in Covered Employment during any Calendar Year after 1975.

(2) In determining whether an Employee has a One-Year Break in Service for purposes of subsections (c)(1) and (2) (i.e., for participation and vesting purposes only), Hours of Work in Non-Covered Employment shall also be taken into account in determining whether an Employee has completed 435 Hours of Work in Covered Employment, but only insofar as such Hours of Work in Non-Covered Employment would be creditable toward a Year of Service under Section 1.40(b) of the Plan.

(3) Solely for purposes of determining whether a One-Year Break in Service has occurred in a Calendar Year (or Eligibility Computation Period) on or after January 1, 1985, if an Employee is absent from Covered Employment by reason of the pregnancy of the Employee; the birth of a child of the Employee; the placement of a child with the Employee in connection with the adoption of such child by the Employee; or for purposes of caring for such child for a period beginning immediately following such birth or placement, the Employee shall receive credit for (i) the Hours of Work that otherwise would normally have been credited to such Employee but for such absence; or (ii) in any case where the Hours of Work in (i) are unable to be determined, eight (8) Hours of Work per day of absence. However, the total number of hours treated as Hours of Work under this subsection (3) by reason of any such pregnancy or placement shall not exceed 435 hours. The Hours of Work credited under this subsection (3) shall be credited in the Calendar Year (or Eligibility Computation Period) in which the absence begins to the extent that the crediting is necessary to prevent the Employee from incurring a One-Year Break in Service in that period, or in all other cases, in the immediately following Calendar Year (or Eligibility Computation Period).

(4) No One-Year Break in Service shall be deemed to have occurred if the Break in Service is attributable to the Participant being a Reemployed Veteran (as defined in Section 4.15) who incurs a period of Qualified Military Service (as defined in Section 4.15) during the Plan Year.

(1) Participation

Section 3.04(a) of the Plan describes the effect of a One-Year Break in Service on an Employee’s participation in the Plan.

(2) Vesting

In the case of any Employee who has incurred a One-Year Break in Service, the Years of Service credited to such Employee prior to his Break in Service shall be disregarded for purposes of Section 8.07. However, except as provided in subsection (f)(2) below (relating to the effect of a Permanent Break in Service), upon completing one (1) Year of Service after such One-Year Break in Service, his previously credited Years of Service shall be restored for purposes of Section 8.07.

(3) Pension Credit/Contribution Hours

In the case of any Employee who has incurred a One-Year Break in Service, the Pension Credit earned by such Employee under Article 4 prior to his Break in Service, and the Contribution Hours credited to the Employee in accordance with Section 5.03(c) prior to his Break in Service, shall be disregarded. However, except as provided in subsection (f)(3) below (relating to the effect of a Permanent Break in Service), upon completing one (1) Year of Service after returning to Covered Employment, his previously earned Pension Credit and Contribution Hours shall be restored under Article 4 on the same basis and in the same manner as his participation is reinstated under Section 3.04(a).

Nothing in this subsection (c) shall be construed to change the effects of a Permanent Break in Service.

(d) Permanent Break in Service Defined (Non-Vested Participants)

An Employee who has not attained Vested Status under Section 8.07 of the Plan shall be deemed to have incurred a Permanent Break in Service in accordance with the following rules:

(1) Permanent Break in Service after 1984 or after the Contribution Date, if later

An Employee who has not attained Vested Status under Section 8.07 of the Plan shall be deemed to incur a Permanent Break in Service when he has a number of consecutive One-Year Breaks in Service (including at least one after 1984) which equals or exceeds the greater of: (i) five (5), or (ii) the total number of Years of Service he earned before such Breaks in Service.

(2) Permanent Break in Service after 1975, or after Contribution Date if later, and before 1985

An Employee who has less than four (4) Years of Service shall be deemed to incur a Permanent Break in Service if (i) he has at least three (3) consecutive One-Year Breaks in Service after his Contribution Date, (ii) he has two (2) consecutive One-Year Breaks in Service in 1976 and 1977, and he failed to earn at least six months of Future Service Credit in the period from 1975 through 1977, or (iii) he has a One-Year Break in Service in 1976, and failed to earn at least six months of Future Service Credit in the period from 1974 through 1976. A person who has four (4) or more Years of Service shall incur a Permanent Break in Service when the number of his consecutive One-Year Breaks in Service equals or exceeds the Employee’s total number of Years of Service before such Breaks in Service. However, an Employee will not be deemed to have incurred a Permanent Break in Service under this subsection (2) if he earns at least six months of Future Service Credit in any three (3) consecutive Calendar Years. Nothing in the preceding sentence shall be construed to mean that an Employee may not subsequently incur a Permanent Break in Service under subsection (1) or this subsection (2).

(3) Permanent Break in Service before 1976 but after the Contribution Date

An Employee shall have incurred a Permanent Break in Service if, after the January 1 coincident with or next following his Contribution Date, he fails to earn at least six months of Future Service Credit in any three (3) consecutive Calendar Years.

(e) Exceptions

No Permanent Break in Service shall be deemed to have occurred and there shall be no loss of prior Pension Credits if the Break in Service described in subsections (d)(1), (2), and (3) above is attributable to:

(1) the Participant being a Reemployed Veteran (as defined in Section 4.15) who incurs a period of Qualified Military Service (as defined in Section 4.15) during the Plan Year;

(2) Service as a full-time elected or appointed officer or employee of the Union;

(3) For Years of Service (for vesting purposes) and Pension Credit earned prior to January 1, 2000, notwithstanding anything to the contrary in the Plan, and to the extent permitted under Section 401(a)(4) of the Code and the regulations thereunder, a period of time not exceeding ten years as the owner of a small business employing no more than four people including himself who are covered by a Collective Bargaining Agreement; provided, that the owner continues to work inside as a sheet metal worker and not outside erecting during such period and provided further that he subsequently returns to work in Covered Employment;

(4) Involuntary unemployment during one of the Calendar Years 1973, 1974, or 1975. Not more than one of these Calendar Years may be used in determining whether or not a Break in Service has occurred, and the Trustees shall be the sole and final judges of what constitutes involuntary unemployment for an Employee who has remained available for Covered Employment, on the basis of information received from the Employee, the Business Manager of the Local Union or any other source required for verification; or

(5) For Years of Service (for vesting purposes) and Pension Credit earned prior to January 1, 2000, proven disability, whether occupational or non-occupational, involving total incapacity to work in the capacity in which he was employed when he became disabled and lack of any other employment for a period not exceeding five years.

(f) Effect of a Permanent Break in Service

Notwithstanding any provision to the contrary in subsection (c), if an Employee who has not attained Vested Status under Section 8.07 has incurred a Permanent Break in Service under Section 4.13(d) above, he shall be affected as follows:

(1) Section 3.04(b) of the Plan describes the effect of a Permanent Break in Service on an Employee’s participation in the Plan.

(2) In the case of an Employee who has incurred a Permanent Break in Service, the Years of Service credited to such Employee prior to such Permanent Break in Service shall be permanently disregarded for purposes of Section 8.07.

(3) In the case of an Employee who has incurred a Permanent Break in Service, the Pension Credit earned by him under Article 4 prior to such Permanent Break in Service, and the Contribution Hours credited to the Employee in accordance with Section 5.03(c) prior to his Permanent Break in Service, shall be permanently disregarded, except as provided in Section 4.14.

Section 4.14 Restoration of Pension Credits and Contribution Hours Following a Permanent Break in Service

(a) Effective July 1, 2001, if an Employee who incurs a Permanent Break in Service under Section 4.13(d) and who has Pension Credit and/or Contribution Hours disregarded under Section 4.13(f) returns to Covered Employment, then, notwithstanding Section 4.13(f)(3), such Employee will, for each month of Future Service the Employee completes upon returning to Covered Employment, (i) have a month of such Employee’s Future Service Credit that was lost as a result of the Permanent Break in Service, restored, and (ii) have his Accrued Benefit that was lost as a result of the Permanent Break in Service restored pursuant to subsection (b). Such restoration will be subject to the following provisions:

(1) the Employee must attain Vested Status, as defined in Section 8.07, based on Covered Employment performed after the Permanent Break in Service;

(2) the Employee must perform at least one (1) Hour of Work in Covered Employment on or after July 1, 2001 and before December 31, 2006;

(3) the Employee must have lost at least 48 months of Future Service Credit as a result of the Permanent Break in Service;

(4) the Employee’s right to restoration may be utilized only once, and is limited to restoration of such Future Service Credit and/or Contribution Hours as were lost as of his most recent Permanent Break in Service; and

(5) Future Service restored under this provision shall be disregarded for the purpose of determining a Lump Sum Death Benefit under Section 7.01.

(b) The Accrued Benefit to be restored for each month of Future Service earned upon the Employee’s return to Covered Employment shall be the pension amount that was lost, determined under the terms of the Plan as in effect at the time the Participant incurred the Permanent Break in Service, based on the Future Service Credit and, as applicable, Contribution Hours he had accrued and the Contribution Rates at which he had worked prior to such Permanent Break in Service, divided by the number of disregarded months of Future Service Credit under Section 4.13(f)(3). The pension amount to be used shall be determined under Section 5.03 or Section 5.02 of Appendix A, as appropriate, as if the Employee had met the eligibility requirements for a Normal Pension.

Section 4.15 Military Service

(a) For purposes of Section 4.07, 4.13 and this Section, the following definitions shall apply:

(1) “Reemployed Veteran” means any Employee who terminated employment with an Employer, subsequently had the right to be reemployed by the Employer under chapter 43 of title 38 of the United States Code, and became reemployed by the Employer under that chapter as an Employee.

(2) “Qualified Military Service” means any service in the uniformed service (as defined in chapter 43 of title 38 of the United States Code as in effect as of December 12, 1994) by any individual if such individual is entitled to reemployment rights under such chapter with respect to such service.

(b) Effective December 12, 1994, notwithstanding any provision in this Plan to the contrary, contributions, benefits and service credit with respect to Qualified Military Service will be provided in accordance with Section 414(u) of the Code.

(c) To protect his full rights, a Reemployed Veteran should apply for reemployment with his Employer within the time prescribed by law. Furthermore, a Reemployed Veteran must call his claim for credit for military service to the attention of the Trustees and be prepared to supply the evidence that the Trustees will need in order to determine his rights.

Section 4.16 Family Medical Leave Act (“FMLA”)

Solely for purposes of determining whether an Employee has incurred a One-Year Break in Service during any Calendar Year for vesting and participation purposes, any period of unpaid FMLA leave (as defined in the regulations promulgated under the Family Medical Leave Act of 1993 (the “FMLA”)) during the Calendar Year shall be treated as Hours of Work in Covered Employment based on the Hours of Work that would have been completed in Covered Employment had the Employee not been on unpaid FMLA leave for that period, but only to the extent required by the FMLA or the regulations promulgated thereunder. Also, to the extent required by the FMLA, if the Plan requires an Employee to be employed on a specific date in order to be credited with a Year of Service for vesting, contributions or participation purposes, an Employee who is on unpaid FMLA leave on that date will be deemed to have been employed on that date. However, in no event shall any period of unpaid FMLA leave be treated as credited service for purposes of benefit accrual, vesting and eligibility to participate.

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