The Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees Summary Plan Description This description provides a summary of the benefits available to eligible employees of Bechtel Jacobs Company LLC and other select Department of Energy contractors under the Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees. This supersedes and replaces any prior communications to the contrary, whether written or oral. Eligible employees are described on page 1. Unless otherwise noted, the benefits described are those in effect for eligible employees as of August 1, 2008. This description is intended to comply with the summary plan description requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). While every attempt has been made to make this information as accurate and complete as possible, full details of the pension plan are contained in the official pension plan document. This plan document is available from your Human Resources representative. If the information in this description differs from a provision contained in the plan document, the plan document will govern. The Board of Controls of Bechtel Jacobs Company LLC or an authorized delegate has always had, and continues to have, the right to terminate, suspend, amend, modify or withdraw from the pension plan at any time and for any or no reason. Any such change or termination in benefits will be based solely on the discretion of the Board of Controls or an authorized delegate and may apply to active employees either as separate groups or as one group. This description does not create a contract or a guarantee of employment between the participating employers and any individual.
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The Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees
Summary Plan Description
This description provides a summary of the benefi ts available to el igible employees of Bechtel Jacobs Company LLC and other select Department of Energy contractors under the Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees. This supersedes and replaces any prior communications to the contrary, whether writ ten or oral . Eligible employees are described on page 1. Unless otherwise noted, the benefi ts described are those in effect for el igible employees as of August 1, 2008. This description is intended to comply with the summary plan description requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA). While every at tempt has been made to make this information as accurate and complete as possible, full details of the pension plan are contained in the official pension plan document. This plan document is available from your Human Resources representative. If the information in this description differs from a provision contained in the plan document, the plan document wil l govern. The Board of Controls of Bechtel Jacobs Company LLC or an authorized delegate has always had, and continues to have, the right to terminate, suspend, amend, modify or withdraw from the pension plan at any t ime and for any or no reason. Any such change or termination in benefi ts wil l be based solely on the discretion of the Board of Controls or an authorized delegate and may apply to active employees ei ther as separate groups or as one group. This description does not create a contract or a guarantee of employment between the part icipating employers and any individual.
CONTENTS INTRODUCING YOUR PENSION PLAN BENEFITS....1
ELIGIBILITY .........................................................1
PLAN PARTICIPATION ..........................................3
When Participation Begins ..................................... 3 When Participation Ends ....................................... 4 If You Are Rehired ................................................. 4 Cost ........................................................................... 4
VESTING...............................................................4
HOW THE PLAN WORKS.......................................4
About Your Service................................................. 4 Normal Retirement ................................................. 6 Calculating Your Normal Retirement Benefit ...................................................................... 6
AVERAGE MONTHLY EARNINGS ..........................6
Plan Formulas .......................................................... 7 SPECIAL RULES FOR PARTICIPANTS WITH TRANSFERRED SERVICE CREDIT ........................9
SPECIAL RULES FOR ATLC PARTICIPANTS .........9
Early Retirement...................................................... 9 Calculating Your Early Retirement Benefit........ 10 Unreduced Early Retirement ............................... 10
SPECIAL RULES FOR INVOLUNTARY TERMINATION ...................................................10
Deferred Vested Benefit....................................... 11 CALCULATING YOUR LATE RETIREMENT BENEFIT .............................................................11
WHEN BENEFITS ARE PAID ................................11
If You Become Disabled ...................................... 11 HOW PENSION BENEFITS ARE PAID..................12
Normal Forms of Payment .................................. 13 Optional Forms of Payment ................................ 13 Beneficiary Designation........................................ 14
If You Are Rehired After Receiving Benefits ...................................................................14 If You Die Before Benefit Payments Begin .......14 Survivor’s Benefit If You Die While Employed ...............................................................14 If You Die After Terminating Employment ......15 If You Die After Benefit Payments Begin..........16
TRANSFERRING YOUR BENEFITS....................... 16
TAX CONSIDERATIONS ...................................... 16
TOP-HEAVY PROVISIONS .................................. 16
INSURANCE OF PENSION PLAN BENEFITS .......... 17
PAYMENTS TO MINORS...................................... 17
ADMINISTRATIVE INFORMATION..................... 17
Pension Plan Documents .....................................17 Plan Amendment or Termination........................18 Right of Recovery ..................................................18 Claim and Appeal Procedures ..............................18 Administrative Facts .............................................19
YOUR RIGHTS UNDER ERISA.......................... 20
Receive Information About Your Plan and Benefits ...................................................................21 Prudent Actions by Plan Fiduciaries ...................21 Enforce Your Rights .............................................21 Assistance With Your Questions .........................22
Pension Plan SPD 1
INTRODUCING YOUR PENSION PLAN BENEFITS The Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees (the pension plan) provides a retirement benefit that steadily builds throughout your career and is designed to provide you with a regular monthly income when you retire. The pension plan, combined with Social Security, your savings under a 401(k) plan, and your own personal savings, can help provide you with the income you will need at retirement. The pension plan also provides benefits if you become disabled*, die, or terminate employment prior to retirement after you are vested. Key highlights include the following: 4 The sponsoring employers pay the full
cost of the pension plan — you make no contributions.
4 You become vested in your pension plan benefit after you complete five years of credited service.
4 You earn benefits in the pension plan based on your company service credit.
4 When you retire (age 65 or earlier, if you meet special age and service requirements), you choose from several regular monthly payment options.
4 You can retire early and receive an unreduced monthly payment if you are at least age 62 with at least 10 years of company service credit, when you are age 60 or 61 with at least 30 years of company service credit, or when your age and years of company service credit total 85 or more.
4 You can retire as early as age 50 and receive a reduced monthly payment if you have at least 10 years of company service credit.
4 If you have completed at least five years of
credited service and die before retirement, your spouse is eligible for a benefit from the pension plan.
4 The benefits you receive from the pension plan are in addition to any benefits you may receive from a 401(k) plan, your own personal savings or from Social Security.
ELIGIBILITY You are eligible to participate in the pension plan as described in this summary if you are a grandfathered employee who is employed by a participating employer in covered employment. (See definitions on pages 2-3). You are not eligible to participate in the pension plan if you are: 4 covered by a collective bargaining
agreement that does not provide for pension plan participation,
4 employed outside the United States and on the payroll of a facility located outside the United States,
4 a leased employee, 4 classified by your employer as an
independent contractor, casual employee, consultant or in another job classification not eligible to participate in the pension plan, or
4 a non-resident alien who receives no earned income that constitutes income from sources within the United States.
You will not accrue additional pension plan benefits if you lose your status as a grandfathered employee. See the definition of grandfathered employee for special rules.
*Note: Throughout this description, terms that are shown in bold have special meanings. These meanings are explained in this description.
Pension Plan SPD 2
Grandfathered employee – you must meet each of the following requirements: You were either: 4 an employee of Lockheed Martin Energy
Systems, Lockheed Martin Utility Services, or Lockheed Martin Energy Research (collectively, LM) on March 31, 1998; or
4 a bargaining unit member of the Paper, Allied-Industrial, Chemical and Energy Workers International Union, AFL-CIO (PACE) (at the East Tennessee Technology Park) who was on the LM recall list on March 31, 1998; or
4 a bargaining unit member of the Atomic Trades and Labor Council (ATLC) (at the Oak Ridge National Laboratory or Y-12 Plant), or PACE (at the Portsmouth Gaseous Diffusion Plant or Paducah Gaseous Diffusion Plant) who was either an LM employee, a United States Enrichment Corporation (USEC) employee, or on the LM or USEC recall list on the date of the applicable bargaining unit transition agreement;
and, you were either: 4 subsequently employed by Bechtel Jacobs
Company LLC or its first-tier or second-tier subcontractors for work in covered employment prior to April 1, 2000; or
4 a USEC employee (at the Portsmouth Gaseous Diffusion Plant or Paducah Gaseous Diffusion Plant) who transitions directly to Bechtel Jacobs Company LLC or its first-tier or second-tier subcontractors for work in covered employment after March 31, 2000, and before January 1, 2001; or
4 a former USEC employee (at the Portsmouth Gaseous Diffusion Plant or Paducah Gaseous Diffusion Plant) who received an involuntary reduction-in-force after March 31, 2000, and is subsequently hired by Bechtel Jacobs Company LLC or its first-tier or second-tier subcontractors for work in covered employment before January 1, 2001; or
4 covered by an applicable bargaining unit
transition agreement for which no employment deadline is specified.
If you have a termination of employment after December 31, 2000 for any reason other than an involuntary reduction-in-force, you will lose your grandfathered employee status and will not be a grandfathered employee even if you are reemployed. If the termination of employment is due to an involuntary reduction-in-force, you may be able to resume your grandfathered employee status upon reemployment by the Bechtel Jacobs Company LLC or a participating employer – see Benefits Administration for further details. New prime contractor – the following employers, but only with respect to employees performing work under the identified U.S. Department of Energy (DOE) contract for which their employer is the prime contractor: 4 DOE Contract DE-AC24-05OH20193:
Theta Pro2Serve Management Company LLC (TPMC)
4 DOE Contract DE-AC24-05OH20192: LATA/Parallax Portsmouth, LLC
4 DOE Contract DE-AC24-05OH20178: Swift & Staley Mechanical Contractors, Inc.
4 DOE Contract DE-AC30-06EW05001: Paducah Remediation Services, LLC.
New subcontractor – the following employers, but only with respect to employees working under the identified DOE contract for which their employer is the first- or second-tier subcontractor: 4 DOE Contract DE-AC24-05OH20192:
CDM Federal Services, Inc., Enercon Services Inc., S.M. Stoller Corporation, S.A. Solutions, Inc., Visionary Solutions, LLC, and Wastren, Inc. (as subcontractor to S.M. Stoller Corporation)
4 DOE Contract DE-AC24-05OH20178: Wastren, Inc. and Williams Professional Services, Inc.
Pension Plan SPD 3
4 DOE Contract DE-AC30-06EW05001: Tetra Tech, Inc., Perot Systems Government Services, Nuclear Fuel Services, Inc., Duratek Federal Services, Inc., GEO Consultants, LLC, TFE, Inc., and RSI.
Sponsoring employer – a company that has adopted and contributes to the pension plan. The sponsoring employers are Bechtel Jacobs Company LLC, Theta Pro2Serve Management Company LLC (TPMC), LATA/Parallax Portsmouth, LLC, Swift & Staley Mechanical Contractors, Inc. and Paducah Remediation Services, LLC. Covered employment – regular and permanent, full- or part-time employment which is, with respect to: 4 Bechtel Jacobs Company LLC, work
performed under the Oak Ridge Contract or the Remediation Contract;
4 the subcontractors, work performed in a staffing plan position under the Oak Ridge Contract or the Remediation Contract;
4 a new prime contractor, work performed under the identified DOE contract for which the new prime contractor is the prime contractor as designated by the U.S. Department of Energy;
4 a new subcontractor, work performed under the identified DOE contract by an employee who is a member of the class of employees with respect to whom the new subcontractor has properly adopted the Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees; and
4 a DOE-ORO, DOE-PPPO or NNSA Y-12 prime contractor, work performed by an employee for whom pension assets have been transferred from the Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees to a pension plan sponsored by such DOE-ORO, DOE-PPPO or NNSA Y-12 prime contractor.
Subcontractor – the first and second-tier subcontractors of Bechtel Jacobs Company LLC, but only with respect to employees
working under the Oak Ridge Contract or the Remediation Contract. The Oak Ridge Contract is DOE Contract DE-AC05-98OR22700 (covering the Department of Energy’s Oak Ridge operations). The Remediation Contract is DOE Contract DE-AC05-03OR22980. Staffing plan position – a regular, permanent, full- or part-time position identified on a subcontractor’s Staffing Plan, Exhibit “H,” “C” Form B Appendix 1, submitted pursuant to the requirements of the DOE Contracts and as approved by Bechtel Jacobs Company LLC. For purposes of bargaining unit employees, the terms of the applicable collective bargaining agreement govern whether a position is considered regular and permanent. Participating employer – a company that has signed an adoption agreement that allows its grandfathered employees who perform work under designated DOE contracts to participate in the Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees. A complete list of current participating employers is available from the Plan Administrator.
PLAN PARTICIPATION As long as you meet the eligibility requirements, participation in the pension plan is automatic. You do not have to enroll to participate in the pension plan.
When Participation Begins If you meet the eligibility requirements (i.e., you are a grandfathered employee of a participating employer in covered employment, and you are not otherwise excluded from participation), your participation in the pension plan begins on the date you are hired to perform work under a designated DOE contract with your employer.
Pension Plan SPD 4
When Participation Ends Your active pension plan participation ends (that is, you stop accruing benefits) when your employment with a participating employer ends, or when you transfer to a position that is not covered employment.
If You Are Rehired If you leave employment after becoming a participant but before pension benefits begin and later return to work for a participating employer as a grandfathered employee, you will resume your participation in the pension plan as of the date of your re-employment if you meet the eligibility requirements of the pension plan at that time. If you are rehired after pension benefits begin, see page 14.
Cost Sponsoring employers make all required contributions to the pension plan. You are not required or permitted to make plan contributions.
VESTING Vesting refers to ownership of your benefit — or your right to receive your benefit when you leave employment. You become 100% vested in your pension plan benefit once you complete five years of credited service or once you reach normal retirement age. Normal retirement age – the age you become eligible for normal retirement benefits under the plan, which is age 65.
HOW THE PLAN WORKS Your pension plan benefit at retirement will be based on your age, earnings and years of company service credit when you terminate employment with a participating employer.
About Your Service
In general, service refers to the length of time you work for a participating employer starting from your date of hire. There are two types of service —company service credit and credited service. Both are calculated based on completed years, months and days of service. This section explains each type of service and how it is used to determine your retirement benefit. COMPANY SERVICE CREDIT Company service credit is used to determine your benefit accrual – the amount of your pension plan benefit. Service on and after April 1, 1998 4 For service on and after April 1, 1998,
company service credit is the uninterrupted period of service that starts when you first perform an hour of service in covered employment for a participating employer and ends with the date you stop working for a participating employer in covered employment.
There are certain periods of time for which you will receive company service credit when you are still employed in covered employment but are not at work. These include: 4 service for a period of absence caused by a
temporary suspension of work or a leave of absence authorized by a participating employer, for a period of up to three months, so long as you return to work at the end of that period; or
4 service for absence due to maternity leave if you return to work at the end of your authorized leave of absence. If you do not return by that time, your company service credit will stop as of the date your authorized leave of absence ended.
There are certain periods of service during which you are not credited with company service credit. These include: 4 service during any time period when you
are receiving retirement benefits from this
Pension Plan SPD 5
or any other pension plan maintained by a participating employer; and
4 service while employed as an employee of a participating employer in a position that is not covered employment.
Additional Service for Benefit Accrual You also will receive company service credit under the pension plan for the following: 4 company service credit recognized under
the terms of a pension plan of an employer which is a contractor under the DOE’s Oak Ridge Operations and for which your benefit assets and liabilities are transferred to the pension plan, for example, the Restated Retirement Program Plan for Employees of Martin Marietta Energy Systems, Inc.;
4 service credit that is recognized for purposes of benefit accrual under the USEC Plan, so long as you are a grandfathered employee as of the date you become an employee of Bechtel Jacobs Company LLC; and
4 company service credit for benefit accrual that is recognized under another plan for which your benefit assets and liabilities are transferred to the pension plan.
Contact Benefits Administration if you have questions about service credit that may have transferred to the pension plan from your prior employer. CREDITED SERVICE Credited service is used to determine your vesting under the pension plan. It is calculated based on completed years, months, and days of service. Credited service is the period of service that begins when you first perform an hour of service for a participating employer and ends on your severance from service date. Your severance from service date is the earlier of:
4 the date that you quit, retire, or are discharged from a participating employer or covered employment;
4 the date you die; or 4 the last day of an approved leave of
absence, or the first anniversary of your first day of absence, whichever is later.
If you perform an hour of service within 12 months of your severance from service date, the severance from service will be disregarded. In addition, if you have an interruption in employment service for any other reason and return to work in covered employment within 12 months from the time you first ceased working for a participating employer, your period of absence will be treated as if you never left and you will be credited with credited service. If you are absent due to your pregnancy, the birth or adoption of your child or to care for your child immediately after birth or adoption, or for an approved leave of absence under the Family and Medical Leave Act, the first one-year period of absence will be considered part of your service eligible for credited service. You may be required to furnish information to establish the reason for your absence. For purposes of credited service, a break in service is a consecutive 12-month period, beginning with your severance from service date and ending on the first anniversary of that day, in which you do not earn at least one hour of service under the pension plan. If you have a break in service and are rehired by a participating employer in covered employment, you will be credited with your service prior to your termination of employment if any of the following apply: 4 you had less than five consecutive one-year
breaks in service prior to your rehire; 4 you were vested at the time your break in
service began; or
Pension Plan SPD 6
4 the length of your break in service did not equal or exceed your prior years of credited service.
Additional Service for Vesting You will also receive credited service for vesting purposes for the following: 4 your credited service recognized for vesting
purposes under the terms of the Restated Retirement Program Plan for Employees of Martin Marietta Energy Systems, Inc.;
4 your credited service recognized for vesting purposes under the terms of a pension plan for which your benefit assets and liabilities are transferred to the pension plan.
UNIFORMED MILITARY SERVICE If you have an interruption in employment as a result of uniformed service in the military, you will be credited with company service credit during your break if you return to work for a participating employer within the time prescribed by law. If you do not return to work within that time period, you will receive credited service for up to 12 months of absence. However, you will not receive any company service credit for your period of absence if you do not return to work within the time period required by law.
Normal Retirement You are eligible for a normal retirement benefit on your normal retirement date — the first day of the month following the date you reach your normal retirement age (age 65).
Calculating Your Normal Retirement Benefit The amount of your pension plan benefit is calculated using two factors: your average monthly earnings and your company service credit (as described on page 4).
AVERAGE MONTHLY EARNINGS Average monthly earnings is the monthly average of your highest straight time earnings for three full calendar years in the
ten years just prior to your retirement, or if greater, the monthly average of your straight time earnings for the 36 months just prior to your retirement.
Your straight time earnings under the pension plan include the straight-time portion of pay received while you are working in covered employment for a participating employer. Straight time earnings include shift differential or shift premium pay and hourly cost-of-living adjustments received from a participating employer for your regular working schedule. Straight time earnings also include incentive pay funded through the salary increase fund under Appendix B of the Oak Ridge Contract, including lump sum non-base merit in lieu of base merit increases and lump sum variable pay from a participating employer. Beginning January 1, 1999, straight time earnings includes amounts paid under the safety award program of Bechtel Jacobs Company LLC, or a substantially similar program to the Safety Award Program outlined in Appendix B of the Oak Ridge Contract. Beginning March 1, 2005, for straight time earnings, merit increases, variable pay and amounts paid under safety awards programs, combined, cannot exceed limits imposed under Appendix B of the Oak Ridge Contract. For participants who are grandfathered employees of workforce transition subcontractors and receive bonuses, the amount of bonus received in a calendar year that is straight time earnings under the pension plan will be limited to no more than 10% of your annual base pay. This means that any bonus amount over 10% will not be included for purposes of determining your pension benefit under the pension plan. Under the pension plan, bonus amounts include all lump sum variable pay and lump sum non-base merit pay, safety awards, and any incentive payments or awards in addition to annual base salary. Your straight time earnings also include your before-tax contributions to a cafeteria plan or a 401(k) or simplified employee
Pension Plan SPD 7
pension plan adopted by your participating employer. The Internal Revenue Service imposes an annual limit on the amount of straight time earnings taken into account for pension plan purposes. This limit is adjusted periodically by the IRS to reflect cost of living increases. The limit is $225,000 for 2007 and $230,000 for 2008.
Example of How Average Monthly Earnings are Calculated Tom was hired on January 1, 1976. He reaches age 65 on January 1, 2006, and decides to retire on that date. At retirement, Tom has 30 years of company service credit. His average monthly earnings are determined as follows: Tom’s straight time earnings for the 10 calendar years prior to his retirement are as follows:
Calendar Year Earnings
2005 $50,000 2004 $46,000 2003 $45,000 2002 $48,000 2001 $44,000 2000 $42,000 1999 $41,000 1998 $40,000 1997 $39,000 1996 $36,000
Tom’s highest three full calendar years of straight time earnings: = $50,000 + $46,000 + $48,000 = $144,000
Average monthly earnings: $144,000 ÷ 36 = $4,000
Plan Formulas Your monthly pension plan payment is determined based on the formula that produces the highest benefit payment for you. There are five formulas for calculating your pension under the pension plan: 4 Regular Formula
4 Alternate Formula 4 Minimum Formula 4 1.2 Formula 4 1.5 Formula
Regular Formula The regular formula provides a monthly benefit of 42% of your average monthly earnings at 30 years of company service credit. If you have less than 30 years of company service credit when you retire, the 42% is prorated for actual company service credit based on a full benefit at 30 years of company service credit. If you have more than 30 years of company service credit when you retire, you accrue an additional .5% per year up to the maximum accrual rate of 47% at 40 years of company service credit.
Alternate Formula The alternate formula provides a monthly benefit of 53% of your average monthly earnings at 30 years of company service credit minus 50% of your monthly primary Social Security benefit. If you have less than 30 years of company service credit when you retire, your benefit is prorated for actual company service credit based on a full benefit at 30 years of company service credit. If you have more than 30 years of company service credit when you retire, you will accrue an additional .5% per year up to the maximum accrual rate of 58% at 40 years of company service credit. Under this formula, no more than 50% of your primary Social Security benefit will be used to offset your earnings. If you provide Bechtel Jacobs Company LLC with complete Social Security Administration records of your covered earnings within six months of your retirement date, Bechtel Jacobs Company LLC
Pension Plan SPD 8
will use a Social Security benefit based on these earnings rather than an estimated earnings history if it provides a higher benefit. Otherwise, Bechtel Jacobs Company LLC will use your estimated earnings history. When you retire, your primary Social Security benefit for purposes of this formula is the benefit you would be eligible to receive at your retirement age or age 62, if later. This benefit is based on your estimated earnings before retirement and on the Social Security laws in effect on the date you retire.
Minimum Formula The minimum formula provides a monthly benefit of: $5 for each of your first 10 years of company service credit, plus $7 for each of the 11th through 20th years of company service credit, plus $9 for each year in excess of 20 years of company service credit, plus 10% of your average monthly earnings (if you have less than eight years of service, this will be reduced 1% per year for each year less than eight), plus $18.
Prior 1.2 Formula The prior 1.2 formula provides a monthly benefit of 1.2% of your average monthly earnings times your years and months of company service credit plus $18.
Prior 1.5 Formula The prior 1.5 formula provides a monthly benefit of 1.5% of your average monthly earnings times your years and months of company service credit minus 1.5% of your
primary Social Security benefit times your years and months of company service credit up to 33⅓ years. Under this formula, no more than 50% of your primary Social Security benefit will be used to offset your earnings. If you provide Bechtel Jacobs Company LLC with complete Social Security Administration records of your covered earnings within six months of your retirement date, Bechtel Jacobs Company LLC will use a Social Security benefit based on these earnings rather than an estimated earnings history if it provides a higher benefit. Otherwise, Bechtel Jacobs Company LLC will use your estimated earnings history. When you retire, your primary Social Security benefit for purposes of this formula is the benefit you would be eligible to receive at your retirement age or age 62, if later. This benefit is based on your estimated earnings before retirement and on the Social Security laws in effect on the date you retire.
Example of How the Formulas Work Tom was hired on January 1, 1976. He reaches age 65 on January 1, 2006, and decides to retire on that date. At retirement, Tom has 30 years of company service credit. Tom’s monthly benefit is determined by calculating his amount under each formula to determine the highest benefit amount. Here is how Tom’s information is used to determine his monthly benefit at retirement.
Regular Formula 42% times $4,000 (average monthly earnings) = $1,680 Benefit = $1,680 per month
Alternate Formula 53% times $4,000 (average monthly earnings) = $2,120 minus 50% times $1,680 (primary Social Security benefit) = $840 Benefit = $1,280 per month
Your primary social security benefit is the actual or projected monthly primary Social Security benefit to which you would become entitled on your normal retirement date, early retirement date or termination of employment date based on the Social Security Act as in effect on that date.
Pension Plan SPD 9
Minimum Formula $5 times 10 years = $50 plus $7 times 10 years = $70 plus $9 times 10 years = $90 plus 10% times $4,000 = $400 plus $18 Benefit = $628 per month 1.2 Formula 1.2% times $4,000 (average monthly earnings) = $48 times 30 years = $1,440 plus $18 Benefit = $1,458 1.5 Formula 1.5% times $4,000 (average monthly earnings) = $60 times 30 years = $1,800 minus 1.5% times 30 years times $1,680 (primary Social Security benefit) = $756 Benefit = $1,044 per month Tom’s accrued monthly benefit at retirement in this example is $1,680 per month determined under the Regular Formula, which is the highest benefit amount. Your monthly benefit payment will differ depending on when you retire and the payment option you elect. Monthly benefit payments begin on your normal retirement date unless you are still working for a participating employer.
SPECIAL RULES FOR PARTICIPANTS WITH TRANSFERRED SERVICE CREDIT If you receive company service credit under the pension plan from a prior employer’s plan and corresponding plan assets and liabilities are not
transferred to the pension plan, the benefit amount you receive under the pension plan will be adjusted by subtracting the value of the pension benefit earned under the prior employer’s plan.
SPECIAL RULES FOR ATLC PARTICIPANTS If you are a plan participant who is a bargaining agreement member of the Atomic Trades Labor Counsel (an ATLC Participant) and you terminate employment in the period beginning July 1, 2004 and ending June 22, 2009, your benefit will be determined based on the formulas described above. However, some special rules apply. Under the Regular Formula and Alternate Formula, there is no 30-year limit on company service credit and no maximum limit on the multiplier; instead, all years of company service credit are counted for purposes of calculating your benefit. The Regular and Alternate Formulas for ATLC participants are as follows:
Regular Formula 1.4% times average monthly earnings times
company service credit
Alternate Formula 1.7667% times average monthly earnings
times company service credit minus
50% times primary Social Security benefit
If you have less than 30 years of company service credit, the 50% is prorated based on a full benefit determined at 30 years of company service credit.
Early Retirement You may receive your benefit as an “early retirement” benefit before you reach normal retirement age if you terminate employment and: 4 You are at least 50 years old; and
Pension Plan SPD 10
You have at least 10 years of company service credit.
You may choose to have your monthly benefit begin immediately (the first day of the month following your retirement) or defer commencement of benefit payments until a later date (the first day of any month thereafter up to your normal retirement date).
Calculating Your Early Retirement Benefit The pension plan formula determines your benefit based on your normal retirement age. If you choose to take your benefit at early retirement, it will be reduced to account for the additional number of monthly payments expected to be made because you will be receiving benefit payments over a longer period of time. Any reduction for early retirement is in addition to the reduction that may be made if you elect a form of benefit that provides continuing payments to a beneficiary after your death. (See page 14.) Reduction for Early Retirement Your early retirement benefit reduction is based on your age and years of company service credit when benefits begin. The Early Retirement Reductions charts on pages 23 and 24 show the percentage payable at different ages.
Unreduced Early Retirement You may elect to postpone commencement of your early retirement benefit until the date you satisfy requirements for unreduced early retirement. In this case, there will be no reduction in your monthly benefit amount at your unreduced early retirement date. You are eligible for unreduced early retirement if, at the time benefits begin, you: 4 Have at least ten years of company service
credit and are at least age 62; or 4 Have at least 30 years of company service
credit and are at least age 60; or 4 The sum of your age plus years of
company service credit equals 85 or more.
SPECIAL RULES FOR INVOLUNTARY TERMINATION If you participate in a voluntary or an involuntary reduction in force or if you have an involuntary termination of employment for any reason other than cause, you may be credited with an additional two years of company service credit or age for purposes of satisfying the age and/or company service credit requirements to receive an unreduced early retirement benefit, as follows: 4 Age 62 and ten years of company service
credit. You may receive up to two years for satisfying the age and/or service requirement
4 Rule of 85. You may receive up to two years of credit for satisfying the age requirement only.
The additional credit will not be counted for purposes of determining the amount of your benefit payment.
Example of How the Plan Formula Works: Early Retirement Janice was hired on January 1, 1979. On January 1, 2006, Janice is age 55 and she has 27 years of company service credit. Because Janice is at least age 50 and has at least 10 years of company service credit on January 1, 2006, she is eligible for early retirement and decides to retire. To determine her early retirement benefit, we must first calculate her normal retirement benefit using the formula shown on page 8. Assuming that Janice’s normal retirement benefit would be $1,500 per month, her early retirement benefit will be calculated as follows: 4 Janice’s benefit will be reduced to 85% of
her normal retirement benefit based on her age (55) and years of company service credit (27).
4 85% of $1,500 = $1,275.00 4 Janice’s early retirement benefit would be
$1,275 per month.
Pension Plan SPD 11
Janice may elect to postpone receiving her pension benefit. If she waits until she is age 56½ and has 28½ years of company service credit, she will receive an unreduced pension benefit because her age plus years of company service credit equal 85.
Deferred Vested Benefit If you terminate employment prior to reaching the eligibility age for normal or early retirement and you have completed at least five years of credited service, you are eligible to receive a deferred vested retirement benefit. Your deferred vested benefit is your accrued benefit on the date you terminate employment. You may elect to begin receiving your benefit on the first day of the month following the date you turn age 65. Or, you may elect to begin receiving your benefit at any time after the first day of the month following the date you turn age 50 if you have five years of credited service. If you elect to begin receiving your benefit prior to age 65, your benefit will be reduced for early commencement by 5/9 of 1% for each month of commencement after age 62 and prior to age 65, and 5/12 of 1% for each month of commencement prior to age 62.
CALCULATING YOUR LATE RETIREMENT BENEFIT If you choose to work beyond age 65, your monthly payments will begin as of the first of the month following the date you retire. Your benefit will be calculated based on your average monthly earnings and company service credit at your termination of employment, with your benefits actuarially increased to reflect any service past the age of 70½.
WHEN BENEFITS ARE PAID Generally, you or your beneficiary may receive your accrued benefit:
4 when you retire from the company at normal retirement age;
4 when you retire from the company at early retirement age;
4 at age 65, if you terminate your employment with the employer and are not rehired as a grandfathered employee in covered employment by any participating employer; or
4 when you die. If you choose to retire after age 65, you will continue to earn credit for your service and pay for plan benefit purposes as long as you are in covered employment until you actually retire. Generally, if you are still in active service at age 70½, you will have a one-time opportunity to elect to: 4 start receiving your benefits while actively
employed; or 4 defer benefits until you stop working for a
participating employer and all of its affiliates.
If you stop working for a participating employer and all of its affiliates before age 70½, your benefits must begin by April 1 of the calendar year following the year in which you turn 70½ if you do not elect an earlier distribution. If you terminate employment before you reach normal retirement age, payment of your benefit must begin no later than March 1 of the calendar year following the year in which you reach normal retirement age.
If You Become Disabled Under the pension plan, you are considered disabled if you qualify for benefits under your employer’s long-term disability plan. If you become disabled while employed by a participating employer and covered by the pension plan, you will continue to earn company service credit during your period of disability (but not after reaching age 65) as if you had continued working. If your disability
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continues, you will receive your normal retirement benefit at age 65, with your average monthly earnings determined as if you had continued working with the same earnings you received on the date your disability began. Your company service credit will end if you are no longer disabled. If your disability ends before you reach age 65, you will receive company service credit for the period of your disability – provided you return to work. If you do not return to work after your disability ends, you will be considered to have terminated employment on the date your disability began.
HOW PENSION BENEFITS ARE PAID If you meet the eligibility requirements, you may begin receiving your pension plan benefits at early, normal or late retirement. In order to receive benefits, you must retire and terminate employment. Under the pension plan, to terminate employment means that you terminate employment with Bechtel Jacobs Company LLC and any participating employers and their affiliates. However, if you voluntarily terminate employment and therefore lose your grandfathered employee status, and if you are rehired by a participating employer or its affiliate, other than the employer from whom you retired or terminated employment, you will be able to continue to receive benefit payments as long as you are not earning company service credit under the pension plan. Once you retire, you will receive your benefit in monthly payments on the first business day of each month for the rest of your life. You may elect only one form of payment, and may not change the payment form once benefit payments begin. Your benefits — regardless of which payment option you choose — will be actuarially equivalent to your accrued benefit at the time benefit payments begin.
To request a distribution of your benefit, contact the BJC Pension Plan Helpline at 866-633-1767 at least 60 days but no more than 90 days before the date you want your retirement benefits to start. Your distribution will be made as soon as practicable following the approval of your distribution request. Payment of your pension plan benefit may be delayed if you do not furnish the information required to complete or verify your application for benefits. The pension application process may include a requirement that you certify information to verify that you have retired based on the pension plan document and Internal Revenue Service requirements for tax-qualified plans. If your claim for benefits is denied, in whole or in part, you have rights as described in “Claim and Appeal Procedures” beginning on page 18. You may elect, modify, or cancel any benefit option you are eligible for by filing a written application during the 90-day period before the date when your benefits are scheduled to begin. Once you begin receiving benefits, you may not change the form of payment. Suspension of Benefits If you are rehired as a grandfather employee after benefit payments begin and you receive payment for eight or more days (or work shift) in a calendar month, your benefit payments will be suspended until you again retire from service, or work for less than eight days (or work shifts) in the calendar month. When suspended payments resume, you will receive the suspended benefit in the same form as was paid to you immediately prior to the suspension. You will also receive the amount of benefit you earned on and after the date you were rehired. Any retiree who returns to perform any services for Bechtel Jacobs Company, LLC, for any of its subcontractors, or for a Portsmouth or Paducah
Pension Plan SPD 13
contractor or subcontractor, or for any affiliate of any of these companies should contract Benefits Administration immediately. Benefits Administration will review your situation with you to determine if distributions must be suspended.
Normal Forms of Payment There are two normal forms of payments – one for married employees and another for single employees. Your benefit will be paid according to the normal form of payment, depending on your marital status at the time of your election, unless your elect one of the optional forms of payment that are available under the pension plan. 4 If you are married – The normal form of
payment is a Joint and 50% Survivor Annuity. With this option, you will receive a reduced monthly payment throughout your lifetime. The reduction is based on the ages of you and your spouse and reflects that benefits are payable during both your lifetimes. Following your death, your spouse will continue to receive half of the monthly benefit you were receiving for his or her lifetime.
4 If payments have begun and your spouse dies before you, your Joint and 50% Survivor Annuity will be cancelled, your benefit will be recomputed as to future payments, and you will receive future payments in the form of a Single Life Annuity (as described below).
4 If you are single – The normal form of payment is a single life annuity. With this option, you will receive a monthly payment throughout your lifetime. When you die, your payments end; there are no payments to your beneficiary after your death.
Optional Forms of Payment Both single and married employees may choose an optional form of payment. However, if you are married and want to elect a payment option other than a Joint and 50% Survivor Dependent Annuity or Joint and 75% Survivor Dependent
Annuity with your spouse as beneficiary, your spouse must agree to your decision in writing by signing a statement witnessed by a notary public or a representative of the plan: 4 Single Life Annuity – You will receive a
monthly payment throughout your lifetime. After your death, benefit payments end.
4 Joint and 50% Survivor Dependent Annuity – You will receive a monthly payment throughout your lifetime. When you die, the benefit will be 50% of what you received while you were alive, and will be paid to your beneficiary for his or her lifetime. With this option, you may only elect as your beneficiary your spouse or a dependent child under age 23 or a dependent parent who could qualify as your dependent for federal income tax purposes.
4 If payments have begun and your beneficiary dies before you, your Joint and 50% Survivor Dependent Annuity will be cancelled, your benefit will be recomputed, and you will receive future payments in the form of a single life annuity (as described above).
4 Joint and 75% Survivor Dependent Annuity – You will receive a reduced monthly payment throughout your lifetime. When you die, the benefit will be 75% of what you received while you were alive, and will be paid to your beneficiary for his or her lifetime. With this option, you may only elect as your beneficiary your spouse or a dependent child under age 23 or a dependent parent who could qualify as your dependent for federal income tax purposes.
4 If payments have begun and your beneficiary dies before you, your Joint and 75% Survivor Dependent Annuity will be cancelled, your benefit will be recomputed, and you will receive future payments in the form of a single life annuity (as described above).
4 Level Income Option – You may elect this option if you are eligible for normal or early retirement when you terminate employment. If you begin payments before you are eligible to receive Social Security benefits, you may elect this option in
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addition to any other form of payment. Under this option, your plan benefit payment is increased until age 62 and is decreased after that time so that your combined income from the pension plan and Social Security is approximately the same throughout your retirement. The Social Security amount used for the calculation is an estimate based on your average monthly earnings for the calendar year immediately preceding your retirement date. If you elect this option, any survivor’s benefit will be based on the benefit amount before adjustment for the level income option.
Beneficiary Designation When you choose a joint and survivor dependent annuity payment option, you will need to designate a beneficiary to receive your benefit if you die. If you are married and want to name someone other than your spouse as your primary beneficiary, your spouse will have to provide written, notarized consent to your designation. You are allowed to name only one beneficiary under a joint and survivor dependent annuity payment option. If your named beneficiary under this option dies before you, no benefit will be paid in the event of your death. Please note that you cannot change your beneficiary designation after you begin receiving benefits from the pension plan.
If You Are Rehired After Receiving Benefits If you are already receiving your benefit in the form of an annuity and you are rehired as a grandfathered employee prior to your normal retirement age, your benefit payments will be suspended regardless of how many hours you work. A new election and waiver (if applicable) will be needed once you begin receiving benefits again. If you are already receiving your benefit in the form of an annuity and are rehired as a
grandfathered employee after your normal retirement date, benefit payments will continue unless you work on eight or more days or shifts in a calendar month, in which case benefit payments will be suspended for that month. You will be notified if this suspension applies to you. If your benefit is suspended, it will be recalculated when the benefit resumes.
If You Die Before Benefit Payments Begin Once you are vested, if you die before retirement benefits begin, your surviving spouse or dependent children or dependent parents may be eligible for a benefit from the pension plan. A benefit to your dependent children or parents is available only if there is no surviving spouse. Your dependent children are your unmarried children under age 23 who, on the date of your death, lived with you or for whom you are required to provide financial support as the result of a court order.
Survivor’s Benefit If You Die While Employed If you die while employed by a participating employer and you have at least five years of credited service, your spouse, dependent children, or dependent parents may be eligible for a benefit as described below. 4 If you have a surviving spouse, your
spouse will receive 50% of the benefit you would have received. Benefit payments will continue for your spouse’s lifetime. If your spouse dies while receiving the survivor benefit, your spouse’s benefit will continue to be paid to your dependent children.
4 If you have surviving dependent children only, 50% of your benefit amount will be paid to your dependent children. Benefit payments will continue until the child is no longer a dependent child or dies, if earlier. A dependent child who is totally and permanently disabled shall continue to receive a survivor’s benefit as long as they are disabled. Your dependent children share
Pension Plan SPD 15
equally in the benefits paid under the pension plan.
4 If you have dependent parents only, 50% of your benefit amount will be paid to your dependent parents for their lifetimes (commencing no later than a year after your death). Your dependent parents share equally in the benefits paid under the pension plan.
If one or more dependent children or one or more dependent parents are receiving the survivor’s benefit payments and cease to be eligible, any remaining survivors shall only be eligible to receive their share of payments. A dependent child is a natural or adopted child of the participant who has not reached age 23 and who qualifies as a dependent under the federal tax code. A dependent parent is a parent who qualifies as a dependent under the federal tax code. The benefit payment amount depends on the amount of company service credit you have earned as of the date of your death. 4 If you have at least ten years of company
service credit, the benefit payment amount is 50% of the benefit payment you would have received if you had retired on the day of your death and elected to receive your benefit as a Single Life Annuity. Payments will begin on the first of the month following your death. If your survivor is your spouse who is more than five years younger than you are, the benefit shall be reduced by ½% for each year by which your spouse is more than five years younger than you (to a maximum reduction of 25%).
4 If you have less than ten years of company service credit (but at least five years), the benefit payment amount is 50% of the benefit payment you would have received if you had terminated employment on the date of your death and elected to receive your benefit at age 65 as a Joint and 50% Survivor Annuity. Benefits will
begin on the first day of the month after you would have reached age 65. However, your beneficiary may elect to begin benefit payments as early as the date you would have reached age 50. The benefit shall be reduced by 6⅔% for each year (up to three years) before age 65, plus 5% for each year before age 62 in which benefit payments begin. Benefit payments will continue to your spouse for the rest of his or her life.
If you are employed and not married when you die, the benefit will be paid in equal shares to your dependent children until your children turn age 23 or get married, if earlier (or as long as a dependent child remains disabled). Your dependent children share equally in the benefits paid under the plan. If you have no dependent children, then the benefit will be paid in equal shares to your dependent parents.
4 If you have a surviving spouse and surviving dependent children, your dependent children are eligible for benefit payments upon the death of your spouse, provided your spouse was receiving pension plan benefits at the time of his or her death. Benefits will be made in the same manner as those described in the preceding paragraph.
If You Die After Terminating Employment If you terminate employment, are vested, and die before you begin to receive a pension plan benefit, benefits payments may be available to your surviving spouse (you must have been married at least one year on the date of your death). For your surviving spouse, benefit payments will begin on the later of: 4 the first of the month following your death;
or 4 the first of the month following the date
you would have reached age 50. The benefit to your surviving spouse is based on 50% of the participant’s benefit amount as described above for participants who die while
Pension Plan SPD 16
employed with less than ten years of company service credit (but at least five years), subject to reductions as described next. The pre-retirement death benefit coverage for a terminated vested participant is optional. If you do not waive coverage before your benefit begins, your benefit calculated as payable at normal retirement will be reduced as follows: Reduction for Each Year of Coverage After Termination of Employment Under age 45 .10% At least age 45, but less than 55 .20% At least age 55, but less than age 65 .50% As a terminated vested participant, you may elect to waive the provision to provide a pension plan benefit to your surviving spouse if you die before benefits begin. This election must be in writing and your spouse must provide written consent to your election that is witnessed by a notary public or a representative of the pension plan.
If You Die After Benefit Payments Begin If you die after having started receiving retirement benefits, your spouse or beneficiary may be eligible for a portion of your benefit, depending on the form of payment you elected when you began receiving your benefit. If you are single when your retirement benefits start and you later marry, your new spouse will not be entitled to any benefits when you die.
TRANSFERRING YOUR BENEFITS You generally cannot sell, transfer, assign, or otherwise promise any benefit payable under the pension plan before you receive the benefit. However, a court order may award all or part of your benefit to a present or former spouse, child, or other dependent through a Qualified Domestic Relations Order (QDRO). A QDRO is a judgment, decree, or order made under a state domestic relations law that establishes the rights
of another person to all or a portion of your benefits under the pension plan. Under a QDRO, payment will be made according to that order. You will be notified as soon as administratively practicable if notification is received to assign your benefits through a court order. A description of the procedures governing a QDRO, including a model QDRO, is available without charge from the BJC Pension Plan Helpline at 866-633-1767. QDROs must be submitted to the Plan Administrator at the following address: Bechtel Jacobs Company LLC Benefits Administration c/o Mercer
411 E. Wisconsin Avenue Suite 1500 Milwaukee, WI 53202-4417
You may also submit draft QDROs by fax to Benefits Administration at (414) 223-3112.
TAX CONSIDERATIONS The tax laws that apply to payments from qualified plans such as the pension plan are complicated. Generally, if you receive a pension plan distribution, it will be subject to income taxes. You will receive more information on taxes at the time you are eligible to receive a distribution of your benefit. Tax laws are complex and change from time to time. In addition, the potential tax impact will depend on your personal circumstance. The information provided in this summary should in no way be considered tax advice. You should consult your financial or tax advisor before you initiate a distribution.
TOP-HEAVY PROVISIONS The IRS has certain rules intended to ensure that tax-qualified plans like the pension plan are non-discriminatory. Under current tax law, if a plan provides more than 60% of its benefits to “key” employees — that is, owners, officers,
Pension Plan SPD 17
and highly compensated employees — that plan is considered to be “top-heavy.” At present, the pension plan is not top-heavy. In the unlikely event that it becomes top-heavy, you will be notified, and your benefits may be adjusted to provide more rapid vesting and special minimum benefits.
INSURANCE OF PENSION PLAN BENEFITS The benefits under this multiemployer plan are insured by the Pension Benefit Guaranty Corporation (PBGC), a federal insurance agency. A multiemployer pension plan is a collectively bargained pension arrangement involving two or more unrelated employers, usually in a common industry. Under the multiemployer plan program, the PBGC provides financial assistance through loans to pension plans that are insolvent. A multiemployer pension plan is considered insolvent if the plan is unable to pay benefits (at least equal to the PBGC’s guaranteed benefit limit) when due. The maximum benefit that the PBGC guarantees is set by law. Under the multiemployer program, the PBGC guarantee equals a participant’s years of service multiplied by (1) 100% of the first $11 of the monthly benefit accrual rate and (2) 75% of the next $33. The PBGC’s maximum guarantee limit is $35.75 per month times a participant’s years of service. For example, the maximum annual guarantee for a retiree with 30 years of service would be $12,870. The PBGC generally covers normal and early retirement benefits; disability benefits if you become disabled before the pension plan becomes insolvent; and certain benefits for your survivors. The PBGC guarantee generally does not cover benefits greater than the maximum guaranteed amount set by law; benefit increases and new benefits based on plan provisions that have been
in place for fewer than five years at the earlier of (1) the date the pension plan terminates or (2) the time the pension plan becomes insolvent; benefits that are not vested because you have not worked long enough; benefits for which you have not met all of the requirements at the time the pension plan becomes insolvent; and non-pension benefits such as health insurance, life insurance, certain death benefits, vacation pay and severance pay. If you would like additional information about PBGC insurance protection and its limitations, you may contact your Plan Administrator (listed on page 20) or the PBGC Technical Assistance Division. Inquiries to the PBGC should be addressed to:
PBGC Technical Assistance Division 1200 K Street, N.W., Suite 930 Washington, DC 20005-4026
The PBGC Technical Assistance Division may also be reached by calling 202-326-4000 (not a toll-free number). TTY/TDD users may call the federal relay service toll-free at 800-877-8339 and ask to be connected to 202-326-4000. Additional information about the PBGC’s pension insurance program is available through the PBGC’s website on the Internet at www.pbgc.gov.
PAYMENTS TO MINORS If anyone entitled to income from the pension plan is a minor or is judged to be physically or mentally incompetent, the Plan Administrator may direct the Trustee to pay the income directly to the minor or incompetent person, or to someone else for the benefit of the recipient (to a legal guardian, for example).
ADMINISTRATIVE INFORMATION
Pension Plan Documents This description is intended to provide you with accurate and easy-to-understand
Pension Plan SPD 18
information about your benefits from the Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees. It includes a summary of the plan and important information you need regarding your benefits. The official pension plan documents contain full details of the legal provisions of the plan. In case of a conflict between the official pension plan documents, this summary plan description, any written materials, or any oral statements made to you concerning your benefits, the official pension plan documents will govern. As described in the “Your Rights Under ERISA” section, you may review or obtain copies of the official pension plan documents. To receive copies, call or write to: Bechtel Jacobs Company LLC c/o Benefits Administration P.O. Box 4699 Highway 58, Gallagher Road Oak Ridge, TN 37831-7020 865-241-2664
Plan Amendment or Termination The Board of Controls of Bechtel Jacobs Company LLC or an authorized delegate has always had, and continues to have, the right to terminate, suspend, withdraw, amend, or modify, at any time and for any or no reason, the benefit plan described in this document. You will be notified of any change in benefits. If the pension plan is terminated, the Pension Benefit Guaranty Corporation (PBGC) will need to review and approve the termination prior to the allocation of any plan assets to provide benefits to employees. In addition, if pension plan assets are not sufficient to provide such benefits, the PBGC insures or guarantees individual vested benefits up to certain limits (see “Insurance of Pension Plan Benefits,” page 17).
Right of Recovery
The Plan Administrator and the trustee have the right to recover any excess payments or benefits that were not paid according to the terms of the pension plan.
Claim and Appeal Procedures The Plan Administrator administers claims for the pension plan.
Filing of Your Initial Application (or Claim) In most cases, to receive or apply for benefits, you or your designated beneficiary must file a written application with the Plan Administrator using the appropriate forms. You may contact Benefits Administration at (414) 223-3112 to obtain the forms.
Claim If you believe you are entitled to a plan benefit that differs from the benefit determined for you, you must file a written claim with the Plan Administrator.
Review of Your Initial Application (or Claim) The Plan Administrator will review your initial written application (or your written claim) within 90 days of the date that the Plan Administrator receives that application (or claim) unless the Plan Administrator determines that special circumstances require an extension of up to 90 additional days. The Plan Administrator will let you know if (and why) it needs an extension by providing you with a written notice before the end of the period that is being extended.
Your Initial Application (or Claim) is Denied If the Plan Administrator completely denies your initial application or makes an adverse determination on your written claim, the Plan Administrator will provide you with a written statement that contains the following information:
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4 Specific reason(s) for the denial or adverse determination.
4 Reference to the plan provision(s) on which the denial or adverse determination was based.
4 A description of additional information needed to perfect your application or claim, and why that information is necessary.
4 A description of the plan’s review procedures and time limits applicable to those procedures, including your right to bring a civil action under ERISA Section 502(a) following a denial or an adverse benefit determination on appeal.
4 An offer to provide you, on request, free of charge, reasonable access to and copies of all documents, records and other information relevant to your claim for benefits.
Filing of Your Written Appeal If your initial application is denied or your claim is determined adversely, you may appeal this denial or adverse determination in writing to the Plan Administrator within 60 days following the date that you receive your initial written denial or adverse determination.
As part of your appeal, you may submit written comments, documents, records, and other information relating to your benefit claim.
Review of Your Written Appeal The Plan Administrator will review your written appeal within 60 days of the date the Plan Administrator receives that appeal unless the Plan Administrator determines that special circumstances require an extension of up to 60 additional days.
The Plan Administrator will let you know if (and why) the Plan Administrator needs an extension by providing you with a written notice before the end of the period being extended.
The Plan Administrator’s review of your appeal will take into account all comments,
documents, records, and other information you submit, without regard to whether that information was submitted or considered in the initial benefit determination.
If Your Written Appeal is Wholly or Partially Denied If the Plan Administrator denies or makes an adverse determination on your appeal, the Plan Administrator will provide you with a written statement that contains the following information:
4 Specific reason(s) for the denial or adverse determination.
4 Reference to the plan provision(s) on which the denial or adverse determination was based.
4 A statement regarding your right to bring a civil action under ERISA Section 502(a).
4 An offer to provide you, on request, free of charge, reasonable access to and copies of all documents, records and other information relevant to your claim for benefits (including a statement of any internal rule, protocol or guideline relied upon for a disability claim and the identity of any medical or vocational expert whose advice was obtained in connection with a disability claim).
This decision will be final and binding unless a court overrides the determination. You may not submit a dispute to a court under the Plan more than one year after the date the Plan Administrator renders its final decision on appeal.
Administrative Facts Plan Name: The Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees. Plan Type: Defined benefit multiemployer pension plan. Plan Number: 001.
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Plan Year: Records for the plan are maintained on a calendar-year basis from January 1 to December 31. Plan Sponsor: Bechtel Jacobs Company LLC. The sponsoring employers of the plan are listed on page 3. Plan Administrator: The pension plan is self-administered through the Benefits and Investment Committee. Each sponsoring employer appoints one or more voting members to the committee. The Benefits and Investment Committee has delegated day-to-day administration of the plan to: Bechtel Jacobs Company LLC c/o Benefits Administration P.O. Box 4699 Highway 58, Gallaher Road Oak Ridge, TN 37831-7020 (865) 241-2664 The Benefits and Investment Committee or an authorized delegate has the sole and final discretion and authority to interpret plan provisions, decide questions that arise in connection with the administration of the pension plan, and review any denials of claims for benefits. This includes, but is not limited to, discretionary authority to resolve ambiguities and inconsistencies in the plan and determine all questions related to eligibility to participate in, be covered by, and receive a benefit under the plan. Employer Identification Number (EIN) Assigned to the Plan: 94-3287886 Agent for Service of Legal Process: CT Corporation Systems 800 South Gay Street, Suite 2021 Knoxville, TN 37929
CT Corporation Systems Kentucky Home Life Building Louisville, KY 40202 CT Corporation Systems 1300 East 9th Street Cleveland, OH 44114 Service of legal process may also be made on the Plan Administrator or the pension plan trustee. Pension Plan Trustee: BNY Mellon Bank 135 Santilli Highway Everett, MA 02149 Collective Bargaining Agreements: The pension plan is maintained pursuant to one or more collective bargaining agreements. A copy of such agreement(s) may be obtained by participants and beneficiaries upon written request to the Plan Administrator, and is available for examination by participants and beneficiaries, as required by Department of Labor Regulations Sections 2520.104b-1 and 220.104b30. Plan Funding: Benefits are funded through contributions from the sponsoring employers. Contributions are actuarially determined and paid to a trust. The Plan Administrator employs professional investment managers to invest and reinvest assets of the plan fund.
YOUR RIGHTS UNDER ERISA As a participant in the Bechtel Jacobs Company LLC Pension Plan for Grandfathered Employees, you and your beneficiaries are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, as amended (ERISA). These rights are outlined in this section.
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Receive Information About Your Plan and Benefits ERISA provides that all pension plan participants are entitled to: 4 Examine all pension plan documents
(including any insurance contracts where applicable) and copies of all documents filed by the plan with the U.S. Department of Labor, such as annual reports (including Form 5500 series) and plan descriptions. You may review these documents without charge at the Plan Administrator’s office during normal business hours. In addition, documents filed with the U.S. Department of Labor are available at the Public Disclosure Room of the Employee Benefits Security Administration.
4 Obtain copies of all documents governing the pension plan and other plan information (including insurance contracts, Form 5500 series, and an updated summary plan description) upon written request to the Plan Administrator. The Plan Administrator may charge a reasonable fee for copying the documents.
4 Receive a summary of the pension plan’s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this report.
4 Obtain a written statement telling you whether you have a right to receive a benefit at normal retirement age and, if so, what your benefit would be at normal retirement age if you stop working at the time the statement is prepared. If you do not have a right to a benefit, the statement will tell you how many more years you have to work to earn a right to a benefit. The statement must be requested in writing and is not required to be given more than once every 12 months. The Plan Administrator must provide the statement free of charge.
Prudent Actions by Plan Fiduciaries In addition to creating rights for plan participants, ERISA imposes duties upon people who are responsible for the operation of the pension plan. The people who operate the plan are called “fiduciaries” of the pension plan and have a duty to do so prudently and in the best interest of you and other plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a retirement benefit or exercising your rights under ERISA.
Enforce Your Rights If your claim for a pension benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce these rights. For instance, if you request a copy of plan documents or the latest annual report from the plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan Administrator’s decision (or lack thereof) concerning the qualified status of a QDRO, you may file suit in federal court. If it should happen that plan fiduciaries misuse the plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you
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are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay the costs and fees, for example, if it finds your claim is frivolous.
Assistance With Your Questions If you have questions about your plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the
nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, NW, Washington, DC 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publication hotline of the Employee Benefits Security Administration.
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Early Retirement Reductions
Actuarial Percentage Factors for Early Retirement (if employment is terminated by your employer
other than for cause)
Years of Company Service Credit Age 8-9 10-18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
35 & Over
48 40 40 45 50 50 50 50 50 50 55 60 65 70 75 80 85 90 95 100
49 40 40 45 50 50 50 50 50 50 55 60 65 70 75 80 85 90 100 100
50 40 40 45 50 50 50 50 50 50 55 60 65 70 75 80 85 100 100 100
51 45 45 45 50 55 55 55 55 55 60 65 70 75 80 85 100 100 ___ 100
52 50 50 50 50 55 60 60 60 60 65 70 75 80 85 100 100 ___ ___ 100
53 55 55 55 55 55 60 65 65 65 70 75 80 85 100 100 ___ ___ ___ 100
54 60 60 60 60 60 60 65 70 70 75 80 85 100 100 ___ ___ ___ ___ 100
55 65 65 65 65 65 65 65 70 75 80 85 100 100 ___ ___ ___ ___ ___ 100
56 70 70 70 70 70 70 70 75 80 85 100 100 ___ ___ ___ ___ ___ ___ 100
57 75 75 75 75 75 75 75 80 85 100 100 ___ ___ ___ ___ ___ ___ ___ 100
58 80 80 80 80 80 80 80 85 100 100 ___ ___ ___ ___ ___ ___ ___ ___ 100
59 85 85 85 85 85 85 85 100 100 ___ ___ ___ ___ ___ ___ ___ ___ ___ 100
60 100 100 100 100 100 100 100 100 ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ 100
61 100 100 100 100 100 100 100 ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ 100
62-64 100 ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ 100
Factors for intermediate ages and intermediate service are available.
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Early Retirement Reductions
Actuarial Percentage Factors for Early Retirement (except when employment is terminated by your employer
other than for cause)
Years of Company Service Credit Age 10-18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
35 & Over
50 40 45 50 50 50 50 50 50 55 60 65 70 75 80 85 90 95 100
51 45 45 50 55 55 55 55 55 60 65 70 75 80 85 90 95 100 100
52 50 50 50 55 60 60 60 60 65 70 75 80 85 90 95 100 ___ 100
53 55 55 55 55 60 65 65 65 70 75 80 85 90 95 100 ___ ___ 100
54 60 60 60 60 60 65 70 70 75 80 85 90 95 100 ___ ___ ___ 100
55 65 65 65 65 65 65 70 75 80 85 90 95 100 ___ ___ ___ ___ 100
56 70 70 70 70 70 70 75 80 85 90 95 100 ___ ___ ___ ___ ___ 100
57 75 75 75 75 75 75 80 85 90 95 100 ___ ___ ___ ___ ___ ___ 100
58 80 80 80 80 80 80 85 90 95 100 ___ ___ ___ ___ ___ ___ ___ 100
59 85 85 85 85 85 85 90 95 100 ___ ___ ___ ___ ___ ___ ___ ___ 100
60 90 90 90 90 90 90 95 100 ___ ___ ___ ___ ___ ___ ___ ___ ___ 100
61 95 95 95 95 95 95 100 ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ 100
62-64 100 ___
___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ 100
65 100 ___
__ ___ ___ ___ __ ___ ___ ___ __ ___ ___ ___ __ ___ ___ 100
Factors for intermediate ages and intermediate service are available. i:\cli\bechtel jacobs\legal\spd\mepp spd final.doc
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