ANNUITY FUND

The Annuity fund is a supplement to the Pension Plan. The difference is that the Pension Plan benefit is based on years of service and hours worked, whereas the Annuity fund benefit is based on direct contributions to individual accounts of covered members of the Union . Net investment yield and earnings on the total Annuity Fund assets, less administrative expenses, are credited to each individual account on a quarterly basis. Vesting in the Annuity Fund is based upon three years of contributions with a minimum of 750 hours worked per year.

Monies are paid out of the individual member's Annuity fund account on the basis of a monthly Annuity benefit or a lump sum benefit upon the following events:

•  Retirement from the Local 456 Pension Fund,

•  Permanent disability, or

•  Withdrawal from the Union after a six month waiting period.

The contribution amount of the Local 456 Annuity Fund is set forth in the various collective bargaining agreements, and currently ranges up to $5 per hour.