Health & Welfare and Pension Funds
of Philadelphia and Vicinity

Amendment, Termination, Merger or Consolidation of the Pension Plan

The Trustees may at any time modify, alter or amend the Pension Plan in any respect provided, however, that the intent of the Plan is at all times to conform to all applicable laws including ERISA and the Labor Management Relation Act of 1947. It is also the intent of the Trustees that the Plan and Fund be a "qualified plan" and tax exempt trust pursuant to Sections 401 and 501(a) and other relevant sections of the Internal Revenue Code of 1986 and that the contributions by Employers to the Trust Fund will be deductible as an item of expense for income tax purposes. No modification, alteration or amendment shall adversely affect any retirement benefit being paid to any retired employee except as otherwise provided in the following portions of this section. The Trustees may at any time terminate the Pension Plan in accordance with the Trust Agreement and the following provisions shall apply to the extent permitted by regulations of the Pension Benefit Guaranty Corporation. In the event the Plan is terminated, the funds held in the Trust Fund shall be allocated in the following order of priority:

1. To provide benefits for those employees who are retired and who have begun to receive retirement benefits at least three years before the termination.

2. To provide benefits for those employees who were eligible to retire and receive a retirement benefit three years before the termination. The level of benefits to be used in allocating assets is the lowest level of benefits applicable in the five years preceding the date of termination.

3. To provide benefits for those employees who are vested under the Plan and whose benefits are guaranteed under Section 4022 of the Employee Retirement Income Security Act of 1974.

4. To provide all other Vested Benefits, excluding those benefits that are vested merely because the Plan is being terminated.

5. To provide all other benefits under the Plan.

In case of partial termination of the Plan, the provisions of this section shall be applicable to the terminated employees to the extent appropriate. In the event of termination or a partial termination of the Plan, the interest of all employees affected shall become nonforfeitable to the extent that the benefits are funded. In order to provide for equity among employees and retired employees, the Trustee shall have the right to reduce retirement benefits payable to retired employees on a basis uniformly applicable to all individuals in a nondiscriminatory manner.

In the event of any merger or consolidation with, or the transfer of assets or liabilities to, any other Plan, each employee shall be entitled to a benefit immediately after the merger, consolidation or transfer (if the Plan were then terminated) that is not less than the benefit he would have been entitled to receive immediately before the merger, consolidation or transfer (if the Plan had then terminated).

 Last Date Updated :  10/16/08