Section 7.01 Death Benefit Before Retirement

(a)        General Rule

(1)        Except as provided in subsections 7.01(b) and (c), if a Participant dies before January 1, 2008 and satisfied (A) or (B) below at the time of his death, a Death Benefit shall be paid to the Participant’s Beneficiary in an amount equal to 50% of all contributions required to be made to the Fund on the Participant’s behalf; provided that in the case of a Participant who participated under a plan that was merged into the Plan, if it is not administratively feasible to compute such benefit, a Death Benefit shall be paid to his Beneficiary in accordance with the terms of the Plan in effect on December 31, 1999.  In the event that the Participant is survived by his spouse, the surviving spouse may elect a Death Benefit as provided in section 6.03 notwithstanding the designation of any other person as a recipient of a Death Benefit under this section 7.01.  The Death Benefit provided by this section is not payable if a Husband-and-Wife Pension is payable.

(A)       The Participant dies before he becomes a Pensioner, and after he has earned at least 60 months of Future Service Credit, which have not been lost as a result of a Permanent Break-in-Service; or

(B)       The Participant:

(i)         dies on or after January 1, 2000, before becoming a Pensioner, and

(ii)        dies before earning at least 60 months of Future Service Credit, and

(iii)       had at least 435 Hours of Work in Covered Employment within the 24-month period preceding his death.

If the Participant’s primary and successor Beneficiary or Beneficiaries die prior to the death of the Participant, or if no Beneficiary is designated, then any death benefit otherwise payable under this Section shall be paid in the following order:  (i) to the Participant’s spouse; (ii) if no spouse survives the Participant, to his children; (iii) if no children survive the Participant, to his parents; (iv) if no parents survive the Participant, to his brothers and/or sisters in equal shares.  If none of the persons enumerated in the foregoing listing of heirs survive the Participant, then the death benefit will be paid to the Participant’s estate.

(2)        Except as provided in subsections 7.01(b)(1) through (3) and (c), if a Participant dies after December 31, 2007, and satisfied (A), (B), (C), and (D)  below at the time of his death, a death benefit in the amount of $5,000 will be paid: (i) to his surviving child or children (in equal shares); (ii) if he has no surviving children, to his surviving parent or parents (in equal shares); or (iii) if he has no surviving parents, to his sibling or siblings (in equal shares).

(A)       At the time of his death, the Participant obtained Vested Status, was not a Pensioner, and was not married;

(B)       No portion of the Participant’s Accrued Benefit is payable to an alternate payee pursuant to a “qualified domestic relation order,” as defined in Section 206(d)(3) of ERISA;

(C)       The Participant had at least 435 Hours of Work in Covered Employment within the 24 months preceding his death;

(D)       The Participant is survived by one or more children, one or more parents, or one or more siblings.

            (b)        Loss of Entitlement to Death Benefit Before Retirement

(1)        If a Participant or Employee, or a former Participant or Employee, at any time 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, no Death Benefit shall thereafter be payable under Section 7.01(a).

(2)        If a Participant who has lost his entitlement to a Death Benefit pursuant to the preceding paragraph terminates his non-covered employment and then returns to Covered Employment and earns a number of months of Pension Credit, his entitlement to a Death Benefit shall be calculated on a pro rata basis determined by dividing the number of months of Pension Credit subsequently earned 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 his ineligibility waived 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.

(3)        A Participant or Employee’s right to reinstatement of his entitlement to a death benefit 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.

(4)        If all or a portion of Participant’s Accrued Benefit is payable to one or more alternate payees pursuant to a “qualified domestic relations order,” as defined by Section 206(d)(3) of ERISA, the death benefit that would otherwise be payable under Section 7.01(a) shall be reduced by the Actuarial Equivalent present value of the portion of the Participant’s Accrued Benefit payable to the alternate payee, determined as of the date of the Participant’s death.

If a Pensioner who is receiving a Normal Retirement Pension, an Early Retirement Pension, a Special Early Retirement Pension or, effective August 1, 2001, a 55/30 Pension, on the basis of having at least 15 years of Pension Credit dies on or after his Effective Date of Pension, and before he has received 60 monthly pension payments, his monthly pension shall continue to be paid to his designated Beneficiary or Beneficiaries, if any, until 60 such payments have been made, including the payments to both the Pensioner and his Beneficiary or Beneficiaries.  If no Beneficiary has been named, or if the last named Beneficiary has predeceased the Pensioner or dies before 60 payments have been made, any remaining payments shall be made to the executor or administrator of the Pensioner’s estate as an actuarially equivalent lump sum.  This provision for 60 Certain Payments shall not apply to a Pensioner who retires on a Normal Retirement Pension on the basis of the eligibility criteria of Section 5.02(b)(1)(B) of Appendix A, an Early Retirement Pension on the basis of the eligibility criteria of Section 5.04(a)(2), Disability Benefits, or to a Pensioner who has elected the Level Income Option provided in Section 6.10 or the 100% Husband-and-Wife Option provided in Section 6.11.  If benefits continue to a surviving spouse under the Husband-and-Wife Pension, the 60 Certain Payments shall apply as provided under Section 6.07. 

Section 7.03 Death Benefit after Retirement ¾ Lump Sum Death Benefit

If a Participant with less than 15 Years of Pension Credit who is receiving a Pension other than Disability Benefits, and who did not elect a Husband & Wife Pension, 120 Certain Payments Option provided in Section 6.09, Level Income Option provided in Section 6.10, or 100% Husband-and-Wife Option provided in Section 6.11, dies before receiving payments equal to the amount of the Death Benefit which would have been payable if he had died prior to retirement, the difference shall be paid to the Pensioner’s Beneficiary.

Section 7.04 Designation of Beneficiary

Subject to the Husband-and-Wife Pension provisions in Article 6, a Particpant may designate an individual, a peronal trust or estate as his primary Beneficiary for the Death Benefit, if any, payable in accordance with Section 7.01, and a Pensioner receiving a Normal Retirement Pension or Early Retirement Pension, Special Early Retirement Pension or 55/30 Pension may designate an individual, personal trust or estate as his primary Beneficiary for the monthly pension payments or amount of payments, if any, payable in accordance with Section 6.07, 6.09 or 7.02. Subject to Article 6, the Participant or Pensioner, as the case may be, may also designate an individual, personal trust or estate as his successor Beneficiary to receive such corresponding benefits in the event that the primary Beneficiary dies before receipt of the full number or amount of payments guaranteed in Sections 6.07, 6.09 or 7.02, and may change these designations from time to time. All designations of Beneficiaries shall be subject to the requirements of Article 6 and shall be made in the form and manner required by the Trustees, who shall be the sole judge of the validity thereof.