The recent merger of the New Jersey and New York benefit funds hasled to several changes in our members’ pension and retirement benefits.

An important goal of the New Jersey Carpenters Funds (now theNortheast Carpenters Funds) has been to achieve a full 100% accrualrate of Pension contributions. Prior to the January 1, 2016 merger, thecollective bargaining agreement required a 14% Pension contributionto be paid on your behalf by your employers, along with a 14% ProfitSharing contribution to your Annuity, for a total 28% contribution intoyour retirement funds. However, you actually received only 10% of thePension contribution with the other 4% being diverted towards paying-offthe Unfunded Pension Liability (UPL). Participants received the full 14%credit on their employer’s Profit Sharing contribution.

Beginning January 1, 2016, the 4% previously dedicated to the UPLhas been included in our members’ Pension contributions and 4% ofthe Profit Sharing contribution will also be re-directed into yourPension fund. Going forward, this will now allow for full 18% accrualof your Pension contributions while the Profit Sharing contribution willbe set at 10%.

The letter sent to participants outlining the details of these changes,dated December 15, 2015, indicated that they would be phased-in over afive year period and fully implemented by 2020. However, the Board of

Trustees decided to take advantage of the financial benefits resulting fromthe merger by implementing the goal immediately. What is the new “Normal” Retirement Age?

The Pension plan’s new “normal”retirement age, beginning 1/1/16, isage 65, with unreduced benefits at age 62 on post-merger credits with 10years of vesting. The Normal Retirement Age had actually been age 62 formany years. The Board of Trustees formerly (prior to 1/1/16) allowed forthe rules to offer unreduced benefits starting at age 60.

Due to economic reasons, construction industry trends, and the realityof members living longer and working longer, this change to the plan isnow necessary in order to keep the plan financially sound. What is the calculation for Vesting Service?

Since 2003, a full credited year was based on earning 26 pensioncredits. Moving forward, the calculation for a full credited year will bebased on 1,000 hours worked, and partial service year credit will bebased on 1/10th of a vesting year for every 100 work hours. Only oneyear of service can be earned in one calendar year. This decision wasbased on the fact that the NJ Carpenters Pension Fund has merged withthe Empire State Fund and that fund’s vesting service rule will be utilizedin the future.

(Continued on Page 2)

New Pension/Retirement Benefits for 2016Full 18% Accrual of Pension Contributions Now in Effect

Publication of Northeast Carpenters Funds April 2016

Minimal Increase in COBRA Rates for Active MembersEARLY RETIREE RATES

REMAIN THE SAMEThe continuing rise in health care costs

and the impact of Affordable Care Act (ACA)mandates has led trustees of the NortheastCarpenters Health Fund to authorize a smallincrease in COBRA rates for our active com-mercial members. COBRA provides continuedhealth care coverage at group rates to eligibleemployees and family members who have lostcoverage due to certain qualifying events orreasons “other than gross misconduct.” Thecost of this continuation coverage is on a self-pay basis, meaning you must pay the premiumeach month to be covered for that month.

For the Benefit Plan Year that beginsApril 1, 2016, COBRA rates for active

commercial members purchasing Level #2coverage is $12,250 a year ($1,021 a month)and $8,167 a year ($681 a month) for Level#1 coverage. This represents only a $150annual increase (1%) for Level #2 coverage(or $12.50 a month) and a $67 a yearincrease for Level #1 coverage (or about$5.60 a month).

Meanwhile, self-pay rates for earlyretirees who qualify for the Retired HealthBenefit Plan (at least 25 years of coverageunder the Health Fund and active coverageupon your retirement) will remain the samefor the coming Plan Year: $11,500 a year($958 a month) for Level #2 coverage and$9,000 ($750 a month) for Level #1 coverage.This is the first time in five years that the

trustees have not increased self-pay rates forqualifying early retirees.

A full explanation of theCOBRA program – includingmember/family eligibility, qualifying standards, benefitsand the application process –can be found on pages 26-30 of the CarpentersHealth Plan Summary PlanDescription (SPD), andpages 45-47 of theCarpenters RetiredHealth Plan (SPD). Formore information on the Northeast CarpentersCOBRA program, contact the Funds Officeat 1-800-624-3096.

NORTHEAST CARPENTERS FUNDS Benefits WatchApril 20162

The Board of Trustees of the NortheastCarpenters Funds, at their March 22, 2016meeting, approved three separate SummaryMaterial Modifications (SMMs), regarding thehealth benefit plans.

The first SMM applies only to the HealthReimbursement Arrangement (HRA) medicalplan. It states: “Effective January 1, 2017,

Level #1 health coverage will no longer be an option under the HRA medical plan.” Thischange is required to meet the new AffordableCare Act (ACA) guidelines.

The following two SMMs apply to all threehealth plans (Active, Retired and HRA).

1. “Any appeals that are wholly or par-tially denied by the Board of Trusteesallow the member to file suit againstthe Fund. A time limit of one year hasbeen set by the Board to file such alaw suit. The one year period beginson the date of the meeting at whichthe Trustees denied the appeal. For

all other actions against the Fund or its Trustees, a lawsuit must be filedwithin one year after the date onwhich the violation of Plan termsis alleged to have occurred.”

2. “The minimum balance required in your HRA has been reduced from$2,000 to $1,000 for the reimburse-ment of Eligible Medical Expenses.Balances at or below $1,000 can only be used for medical premiums.Members are still required to have a $2,000 balance to activate theiraccount.”

Northeast Regional Council of CarpentersGains Members in Merger with Metropolitan Council

The Northeast Regional Council of Carpenters(NRCC) has gained more than 13,500 newmembers, following announcement by theUnited Brotherhood of Carpenters that theMetropolitan Regional Council of Carpenters(MRCC) and some of its locals have mergedwith the NRCC and two other carpentercouncils.

John Ballantyne, Executive Secretary-Treasurer of the NRCC, said the mergerwill increase council membership to nearly40,000, covering the states of New Jerseyand Delaware, and parts of New York,Pennsylvania and Maryland.

“This is an exciting opportunity for ourorganization,” Ballantyne said. “It will enhancebenefits for our membership and expand marketopportunities for our contractor partners through-out the council’s geographical jurisdiction.

“This will also create more significantleverage with contractors in collective nego-tiations, streamline our work rules, and providecontractors the ability to fill jobs at a moment’snotice by providing access to an even broaderselection of our specialized labor force withkey skillsets.”

In a letter announcing the disbanding of theMetropolitan Regional Council, headquarteredin the Philadelphia-area, and its merger with theNRCC, the Keystone Mountain Lakes Council,and the Eastern Millwright Council, UBCGeneral President Douglas McCarron wrote:

“After careful review and consideration of the substantial benefits to the members,including but not limited to reducing costs andmaximizing available resources, I have deter-mined that it would be in the best interests ofthe UBC and its members to take the actions

recommended in a detailed analysis preparedby Mr. (Phil) Newkirk of the Western District.”

McCarron said the disbanding and mergerwill also involve the establishment of severalnew local unions and the merger of otherspreviously affiliated with the MetropolitanCouncil into existing locals that are now part of the Northeast, Keystone and EasternMillwright councils.

“The expanded Northeast Regional Councilof Carpenters will provide new and excitingbenefits for all of its members, and I lookforward to working with the entire member-ship and our partners to ensure they havelong-lasting work,” Ballantyne concluded.“Our commitment to our members remains the same: to ensure openness, transparency andaccountability in Council operations while rep-resenting the best interests of our membership.”

How will these changes impact your Pension?

• If you are a career carpenter, the impact will be extremely positivesince you will be receiving an 18% pension contribution at fullaccrual (nearly double the previous 10% rate).

• All of your Pension credits earned up to December 31, 2015are protected and held to the standard of the current pensionrules.

• If you qualify, the Rule of 85 is still in the Pension plan so there is no change.

• Moving forward, unreduced benefits begin at age 62. The EarlyRetirement Factor of a 4% penalty per year will be applied from age62 back to age 55. As a result, credits earned after 1/1/16, taken inearly retirement at age 55, would have a 72% pension value.

• Also, it is possible you can retire with two sets of credits that havetwo different Early Retirement Factors. Your credits under the planprior to 1/1/16 have an Early Retirement Factor based on age 60 witha 4% penalty per year back to age 55. This means you would receive80% of your pension value at age 55 as an Early Retiree.*

*Prior merged plans have different early retirement factors.

2016 Pension/Retirement BenefitsContinued from Page 1

Trustees Authorize Summary Material Modifications

NORTHEAST CARPENTERS FUNDS Benefits WatchApril 20163

Self Payment Provisions& Regulations

Active members and retirees who are making use of theNortheast Carpenters Health Fund’s Self Payment provisions forCOBRA, Medicare, or to obtain a higher level of coverage, arereminded that their premium payments are due in the Funds Officethe first day of every month for which they are seeking coverage.Failure to comply with this rule will result in all eligible medicalclaims being pended until your self-payment is received. In addition,you will be denied access to the Fund’s prescription drug benefituntil such payment is made.

If payment is not received by the last day of the month inquestion, your coverage will be terminated retroactive to the first day of the month. Please make your self-payment checkspayable to the: Northeast Carpenters Health Fund.

3 Percent Returnon Annuity FundExceeds Expectations

The performance of the NJ Carpenters Annuity investment portfolioonce again exceeded the industry norm in 2015 with a gratifying return of some 3% on investments, despite otherwise sluggish results in theoverall market. Following the fund’s successful performance in both2013 and 2014, last year’s positive return will bolster our members’savings and retirement outlook and further solidify the recovery fromthe market sell-off in 2008.

Northeast Carpenters Funds Director George R. Laufenberg said thereturn was especially impressive, considering the overall performance ofthe market in 2015 when the vast majority of union funds either barelybroke even or suffered losses. He attributed much of the portfolio’s successto the excellent returns achieved by its increased real estate holdings, whichwere not hampered by the mundane returns seen in stocks and bonds.

Since the Carpenters Annuity Fund’s real estate investments aredesignated for union built and approved construction projects, theyhave the added advantage of creating more union jobs and millions of union member working hours.

Laufenberg also said the Annuity Fund returns serve to reaffirm thewisdom of the trustee’s decision to assume direct oversight of the fundbeginning in 2010 in order to mitigate the potential for significant lossesthat some of our members suffered in the stock market crash.

“While we can’t provide a guarantee against any future losses, we can erect barriers against them by requiring that all participantsreceive a proportionate share of the investment income of the Fund as a whole,” Laufenberg noted. “It helps to better ensure that the Fund willremain a reliable source of future financial security for our membersand their families.”

Members are also reminded that the interest rate for Annuity loans isbased on the Prime Rate set by the Federal Reserve plus 1%. The rateis constantly monitored and is subject to change after any of the eightFederal Reserve FMOC meeting dates held annually. The next meeting isscheduled for April 26th.

When it Comes to Opioid Painkillers...Less is Better

For the first timeever, the Centers forDisease Control andPrevention (CDC)has issued guidelineson the prescribing of powerful opioidpainkillers such asOxyContin andVicodin, warningthat the risks fromlong-term use ofsuch drugs can out-weigh the benefitsfor many patientswith chronic pain.

The federal healthagency took action

against the liberal dispensing of morphine-like, addictive drugs inMarch in an effort to combat what it describes as a “deadly prescriptionpainkiller epidemic.” The guidelines carve out an exception for patientsreceiving cancer treatment or end-of-life care. When doctors determinesuch drugs are necessary in specific situations, the CDC advises thelowest possible dose be prescribed for the least amount of time.

The CDC estimates that about 40 Americans die each day fromoverdosing on prescription painkillers. In 2013, an estimated 1.9 million people abused or were dependent on prescription opioids. “We know of no other medication routinely used for a non-fatal condition that kills patients so frequently,” said CDC Director Thomas Frieden.

The CDC directed the guidelines to primary care physicians whoprescribe nearly half of opioid usage. The agency hopes the guidelineswill help doctors determine when to begin or continue opioids forchronic pain, which type of painkiller to choose, how long to administerthe drugs, and how to weigh their risks. The guidelines also urgephysicians to try drug-free methods to relieve chronic pain, such asexercise, weight loss, physical therapy and non-opioid pain relievers.

The U.S. Food & Drug Administration approved OxyContin andother opioid pain medications in the mid-1990s for short-term painonly. But doctors soon began prescribing the pills for long-term orchronic pain. When patients built-up a tolerance, pain experts anddrug company representatives instructed doctors to give higher doses.

Dr. Gary Franklin, medical director of the Washington StateWorkers’ Compensation Program, and five researchers published astudy in 2006 that found opioid pain medications were actually killingpeople. “Otherwise healthy workers who took painkillers for minorinjuries were ending up dead a few years later,” Dr. Franklin said.

“Workers are on the job, they report a back sprain, and then they aredead. They might make a practice of taking one more pill than they shouldbefore they go to bed and then one day never wake-up.” The CDC’s initiative hopes to change that by reducing the potential for addiction.

NORTHEAST CARPENTERS FUNDS Benefits WatchApril 20164

Introduction

This notice includes important information about the funding status of your multiemployer pension plan (“the Plan”). It also includes generalinformation about the benefit payments guaranteed by the Pension BenefitGuaranty Corporation (“PBGC”), a federal insurance agency. All tradi-tional pension plans (called “defined benefit pension plans”) must providethis notice every year regardless of their funding status. This notice doesnot mean that the Plan is terminating. It is provided for informationalpurposes and you are not required to respond in any way. This notice isrequired by federal law. This notice is for the plan year beginning July 1,2015 and ending December 31, 2015 (“Plan Year”). How Well Funded Is Your Plan

The law requires the administrator of the Plan to tell you how well thePlan is funded, using a measure called the “funded percentage.” The Plandivides its assets by its liabilities on the Valuation Date for the plan year toget this percentage. In general, the higher the percentage, the better fundedthe plan. The Plan’s funded percentage for the Plan Year and each of thetwo preceding plan years is shown in the chart below. The chart also statesthe value of the Plan’s assets and liabilities for the same period.

Funded Percentage

Year-End Fair Market Value of AssetsThe asset values in the chart above are measured as of the Valuation Date.

They also are “actuarial values”. Actuarial values differ from market valuesin that they do not fluctuate daily based on changes in the stock or other mar-kets. Actuarial values smooth out those fluctuations and can allow for morepredictable levels of future contributions. Despite the fluctuations, market values tend to show a clearer picture of a plan’s funded status at a given pointin time. The asset values in the chart below are market values and are meas-ured on the last day of the Plan Year. The chart also includes the year-endmarket value of the Plan’s assets for each of the two preceding plan years.

Endangered, Critical or Critical and Declining StatusUnder federal pension law a plan generally is in “endangered” status if

its funded percentage is less than 80 percent. A plan is in “critical” status ifthe funded percentage is less than 65 percent (other factors may also apply).A plan is in “critical and declining” status if it is in critical status and isprojected to become insolvent (run out of money to pay benefits) within15 years (or within 20 years if a special rule applies). If a pension planenters endangered status, the trustees of the plan are required to adopt afunding improvement plan. Similarly, if a pension plan enters critical sta-tus or critical and declining status, the trustees of the plan are required toadopt a rehabilitation plan. Funding improvement and rehabilitation plansestablish steps and benchmarks for pension plans to improve their fundingstatus over a specified period of time. The plan sponsor of a plan in critical

and declining status may apply for approval to amend the plan to reducecurrent and future payment obligations to participants and beneficiaries.

The Plan was not in endangered, critical or critical and declining statusin the Plan Year.

If the Plan is in endangered, critical or critical and declining status forthe plan year ending 12/31/2016, separate notification of that status hasbeen or will be provided.Participant Information

The total number of participants and beneficiaries covered by the Planon the valuation date was 15,032. Of this number, 4,810 were currentemployees, 7,225 were retired and receiving benefits, and 2,997 wereretired or no longer working for the employer and have a right to futurebenefits. Funding & Investment Policies

Every pension plan must have a procedure to establish a funding policyfor plan objectives. A funding policy relates to how much money is neededto pay promised benefits. The funding policy of the Plan is to fund thePlan through a combination of contributions received from contributingemployers and investment income generated by the Plan’s investments.The funding level is designed to comply with the requirements of ERISAand the Internal Revenue Code. These requirements include minimumfunding levels and also include maximum limits on the contributions thatmay be deducted by contributing employers for federal income tax purposes.The Plan’s Trustees develop and implement the funding policy and monitorthe funding level with the assistance of the Plan’s enrolled actuary and thePlan’s investment advisor.

Pension plans also have investment policies. These generally are writtenguidelines or general instructions for making investment management deci-sions. The investment policy of the Plan has been adopted by the Board ofTrustees with the advice of the Plan’s investment consultant. It is intendedto generate returns that equal or exceed the Plan’s actuarial assumed rate ofreturn and to control risk. Based on the advice of the investment consultant,the Trustees have diversified the Plan’s investments with allocations to a number of different asset classes.

Under the Plan’s investment policy, the Plan’s assets were allocatedamong the following categories of investments, as of the end of the PlanYear. These allocations are percentages of total assets:

Annual Funding Notice for

2015 2014 2013

ValuationDate 7/1/15 7/1/14 7/1/13

FundedPercentage 82.43% 80.16% 80.25%

Value ofAssets $1,040,505,363 $1,000,455,417 $945,715,708

Value ofLiabilities $1,262,352,161 $1,248,036,733 $1,178,395,169

Asset Allocations Percentage1. Interest bearing cash 1.15%2. U.S. Government securities 4.94%3. Corporate debt instruments (other than employer securities):

Preferred 4.83%All other 4.30%

4. Corporate stocks (other than employer securities):PreferredCommon 34.44%

5. Partnership/joint venture interests 19.666. Real estate (other than employer real property)7. Loans (other than to participants)8. Participant loans9. Value of interest in common/collective trusts 16.90%10. Value of interest in pooled separate accounts 1.97%11 Value of interest in 103-12 investment entities 1.07%12. Value of interest in registered investment companies (e.g., mutual funds) 7.81%13. Value of funds held in insurance co. general account (unallocated contracts)14 Employer-related investments:

Employer SecuritiesEmployer real property

15. Buildings and other property used in plan operation16. Other 2.93%

Date 12/31/2015 12/31/2014 12/31/2013

Fair MarketValue of Assets $2,201,794,333 $991,948,259 $1,002,223,784

NORTHEAST CARPENTERS FUNDS Benefits WatchApril 20165

Events with Material Effect on Assets or LiabilitiesBy law this notice must contain a written explanation of new events

that have a material effect on plan liabilities or assets. This is because such events can significantly impact the funding condition of a plan. For the plan year beginning on January 1, 2016 and ending on December 31, 2016, the Plan expects the following events to havesuch an effect: effective 12/31/2015, New Jersey Carpenters Pension Fund (EIN 22-6174423, PN 001) and The United Brotherhood ofCarpenters and Joiners of America Albany/Adirondack Pension Fund(EIN 14-6075969, PN 001) merged into the Empire State CarpentersPension Fund which was renamed the Northeast Carpenters PensionFund (EIN 11-1991772, PN 001). All assets and liabilities have beenmerged as a result.

Right to Request a Copy of the Annual ReportPension plans must file annual reports with the US Department of

Labor. The report is called the “Form 5500”. These reports contain financialand other information. You may obtain an electronic copy of your Plan’sannual report by going to www.efast.dol.gov and using the search tool.Annual reports also are available from the US Department of Labor,Employee Benefits Security Administration’s Public Disclosure Room at200 Constitution Avenue, NW, Room N-1513, Washington, DC 20210, orby calling 202.693.8673. Or you may obtain a copy of the Plan’s annualreport by making a written request to the plan administrator. Annual reportsdo not contain personal information, such as the amount of your accruedbenefit. You may contact your plan administrator if you want informationabout your accrued benefits. Your plan administrator is identified belowunder “Where To Get More Information.”

Summary of Rules Governing Insolvent PlansFederal law has a number of special rules that apply to financially trou-

bled multiemployer plans that become insolvent, either as ongoing plansor plans terminated by mass withdrawal. The plan administrator is requiredby law to include a summary of these rules in the annual funding notice. Aplan is insolvent for a plan year if its available financial resources are notsufficient to pay benefits when due for that plan year. An insolvent planmust reduce benefit payments to the highest level that can be paid from theplan’s available resources. If such resources are not enough to pay benefitsat the level specified by law (see Benefit Payments Guaranteed by thePBGC, below), the plan must apply to the PBGC for financial assistance.The PBGC will loan the plan the amount necessary to pay benefits at theguaranteed level. Reduced benefits may be restored if the plan’s financialcondition improves.

A plan that becomes insolvent must provide prompt notice of its statusto participants and beneficiaries, contributing employers, labor unionsrepresenting participants, and PBGC. In addition, participants and benefi-ciaries also must receive information regarding whether, and how, theirbenefits will be reduced or affected, including loss of a lump sum option.

Benefit Payments Guaranteed by the PBGCThe maximum benefit that the PBGC guarantees is set by law. Only

benefits that you have earned a right to receive and that cannot be forfeited(called vested benefits) are guaranteed. There are separate insuranceprograms with different benefit guarantees and other provisions for single-employer plans and multiemployer plans. Your Plan is covered by PBGC’smultiemployer program. Specifically, the PBGC guarantees a monthlybenefit payment equal to 100 percent of the first $11 of the Plan’s monthly

benefit accrual rate, plus 75 percent of the next $33 of the accrual rate,times each year of credited service. The PBGC’s maximum guarantee,therefore, is $35.75 per month times a participant’s years of creditedservice.

Example 1: If a participant with 10 years of credited service has anaccrued monthly benefit of $600, the accrual rate for purposes of determin-ing the PBGC guarantee would be determined by dividing the monthlybenefit by the participant’s years of service ($600/10), which equals $60.The guaranteed amount for a $60 monthly accrual rate is equal to the sum of$11 plus $24.75 (.75 x $33), or $35.75. Thus, the participant’s guaranteedmonthly benefit is $357.50 ($35.75 x 10).

Example 2: If the participant in Example 1 has an accrued monthlybenefit of $200, the accrual rate for purposes of determining the guaranteewould be $20 (or $200/10). The guaranteed amount for a $20 monthlyaccrual rate is equal to the sum of $11 plus $6.75 (.75 x $9), or $17.75.Thus, the participant’s guaranteed monthly benefit would be $177.50($17.75 x 10).

The PBGC guarantees pension benefits payable at normal retirementage and some early retirement benefits. In addition, the PBGC guaranteesqualified preretirement survivor benefits (which are preretirement deathbenefits payable to the surviving spouse of a participant who dies beforestarting to receive benefit payments). In calculating a person’s monthlypayment, the PBGC will disregard any benefit increases that were madeunder a plan within 60 months before the earlier of the plan’s termination orinsolvency (or benefits that were in effect for less than 60 months at thetime of termination or insolvency). Similarly, the PBGC does not guaranteebenefits above the normal retirement benefit, disability benefits not in paystatus, or non-pension benefits, such as health insurance, life insurance,death benefits, vacation pay, or severance pay.

For additional information about the PBGC and the pension insuranceprogram guarantees, go to the Multiemployer Page on PBGC’s website atwww.pbgc.gov/multiemployer. Please contact your employer or plan admin-istrator for specific information about your pension plan or pension benefit.PBGC does not have that information. See “Where to get More InformationAbout Your Plan” below.

Where to Get More InformationFor more information about this notice, you may contact Mr. George

R. Laufenberg, Funds Director, at (732) 417-3900, Raritan Plaza II, PO Box 7818, Edison, NJ 08818. For identification purposes, the officialplan number is 001 and the plan sponsor’s employer identification numberor “EIN” is 11-1991772.

Disclosure Statement and DisclaimerThis notice is intended to comply with the requirements of section

101(f) of the Employee Retirement Income Security Act of 1974, asamended. The disclosures provided in this notice are based on informa-tion available and believed to be accurate as of the date this notice is provided. All computations reflected in these disclosures have been per-formed based on a good faith interpretation of the applicable statutory andregulatory guidance in effect on the date this notice is provided. Suchinformation and computations include, but are not limited to, the meas-urement of Plan liabilities, reported values of plan assets, and allocationof assets. However, actual results for the Plan Year may change and willnot be considered final until filed with the Department of Labor as partof the Annual Report (i.e., the Form 5500).

Northeast Carpenters Pension Fund

On January 1, 2016, the EmpireState Apprenticeship Training Fund merged with the New JerseyCarpenters Apprentice Training andEducational Fund. The merger wasa part of a larger merger involvingthe Empire State’s Pension,Welfare and Annuity Funds withthe New Jersey Carpenters Fundsand was anticipated since the join-ing of the two states’ carpenters unions several years ago.

The newly formed Northeast Carpenters Apprentice Training andEducational Fund now serves almost 2,000 apprentices and willincorporate the same quality training and service to the constructionindustry that our union is known for in both states.

Along with the two New Jersey training centers in Kenilworth andHammonton, we will now have four additional state of the art trainingcenters in Albany, Long Island, Rochester and Rock Tavern, NY. Thereare also four smaller satellite locations in Elma, Horseheads, Syracuseand Binghamton NY, where journey level skill enhancement trainingis delivered.

“The combination of the two training programs solidifies EasternDistrict Vice President Michael Capelli’s commitment to unifying thecarpenters unions in New Jersey and New York and brings with it greatpossibilities for educational advancements in training,” said FundExecutive Director Ridgeley Hutchinson.

“New Jersey and New York training directors can now easily sharetheir ideas on such issues as curriculum and training methods to blend the best qualities of each program, forming what we believe will be themost modern and effective apprenticeship training available in the con-struction industry.”

Call Ahead foran Appointment

To avoid confusion and needless delays, please include either yourSocial Security number or your United Brotherhood membership num-ber when corresponding with the Northeast Carpenters Funds Office.This information will help the Funds’ staff expedite a response to yourinquiry or request. Also, whenever possible, please make an appoint-ment before making a visit to the Funds’ office. This will enable us tobetter prepare for your visit and gather the information needed toanswer your questions. As a reminder, the Funds office has eveninghours every Tuesday and Thursday until 6:00 pm. TO MAKE ANAPPOINTMENT, PLEASE CALL: 1-800-624-3096.

NORTHEAST CARPENTERS FUNDS Benefits WatchApril 20166

Obesity, a Growing Threatfor the Elderly

By the year 2050, the number of older adults in the U.S. is expected to more than double, rising from 40.2 million to 88.5 million. Other thansmoking or substance abuse, obesity is going to be a major factor indetermining who lives well into their golden years … and who doesn’t.

Carrying too much extra weight (obesity) is especially hazardous to an aging body’s vital organs. While there is no marked difference in the rate of obesity between men and women, the Centers for DiseaseControl reports that more than 33% of adults aged 65 and older (morethan 8 million adults) are obese.

Dr. Seun Sowemimo, considered an expert on obesity-related issuesand medical director at Prime Surgicare, says that extra weight can bedangerous for seniors, whose bodies are more susceptible to disease.Obesity increases inflammation in the body, which, in turn, can weakenthe immune system and open the door to serious chronic conditions,including:

• Diabetes

• Heart Disease

• High Cholesterol/Stroke Risk

• Cancer

• Bone and Muscle Loss and Weakness

• Depression.

Dr. Sowemimo says it used to be thought that older people would notrespond well to treatment for obesity due to their slowing metabolism,reluctance to change their lifestyle, and physical limitations preventingexercise. But now, study after study is proving this to be false.

If you are ready tolose weight, don’t go italone.

By age 50, manypeople are living with achronic disease or usingsome kind of medicationregularly. Therefore,before you start a weightloss plan or join a gym,first meet with your pri-mary healthcare doctorto discuss weight lossgoals. Depending onyour current health,your doctor may recommend a program or lifestyle change you had noteven considered. He may also run tests to ensure that your body ishealthy enough to undergo a particular program.

If you are taking any medicines regularly, bring them with you andtalk to the doctor about any potential issues. Once you are medicallycleared, your lifestyle and weight loss plan will generally be similar tothat of someone in their 30s or 40s, just with closer medical supervision.

Today’s older adults are living well into their 80s and 90s, thanks tomodern medicine. There is no reason to let extra weight complicate orlessen your quality of life. Why not be as healthy as you can be to trulyenjoy your golden years?

Merger of NJ & NYCarpentersApprenticeship Programsto Provide SignificantTraining Improvements

NORTHEAST CARPENTERS FUNDS Benefits WatchApril 20167

Due to the recent merger of the New Jersey and New York carpentersbenefit funds, members should be aware of the various benefits and eligi-bility requirements of participation in the merged Northeast CarpentersAnnuity Fund.

The Carpenters Annuity Fund was established as a Defined ContributionPlan in 1982 to supplement both the Carpenters Pension Plan and the federalSocial Security Program in providing a substantial measure of financialsecurity for retired members of the Carpenters Union. The Fund is adminis-tered by a joint employer/employee Board of Trustees who amendedthe Plan in 2009 by establishing a Profit Sharing sub-account to accompanythe existing Money Purchase Plan.

The rules of each sub-account are slightly different. As we move forwardwith the merger of the New Jersey and New York benefit funds, members should be aware of the following, partial list of regulations and eligibilityrequirements that will be in place for each of the Annuity Plan’s sub-accounts.

PROFIT SHARINGRegular distributions from the Profit Sharing account will be paid out

on the 14th of each month (or closest business day if the 14th falls on aweekend). Applications are due in the Funds Office at least one weekprior to the payout. To be eligible for a distribution, a member must beone of the following:

• Retired and collecting a pension• Disabled and on Social Security Disability (must provide proof)• Out of work: Member worked less than 106 hours in a job cov-

ered by a Collective Bargaining Agreement (CBA) or ParticipationAgreement during the prior six (6) month period, or memberworked no hours in a job covered by a CBA or ParticipationAgreement during a three (3) consecutive month period during theprior twelve (12) consecutive months.

• A participant with 60 months in the Plan may receive one distributionper plan year

• Members aged 59 ½ with 20 years participation may receive up totwo in-service withdrawals per plan year

• Ex-spouse payments made under a Qualified Domestic RelationsOrder (QDRO)

Benefits can be rolled-over into another fund, or they can be receivedin a full or partial lump payment, or through a monthly distribution.Monthly distributions are calculated over the member’s life expectancyand are provided through direct deposit. Members who begin a monthlydistribution cannot stop, unless they withdraw the balance of the account.

Distributions and payouts are liable to a mandatory 20% federal taxwithholding. However, members can choose to have additional taxes with-held. They can also choose the amount they want withheld for New Jerseyor New York state taxes.

Regarding application forms:• Member should have the correct address (or complete an address

change form)• Member must sign and have a witness sign page 1• Members must choose how they want to be paid• Member chooses marital status (married or single). If married, the

spouse’s signature must be notarized. In some cases, a member’sspouse may refuse to give payout rights, other than to a Joint &Survivor Annuity benefit

• Mandatory 20% federal tax withheld (unless the member is over 70years of age or the monthly distribution extends for over 10 years)

• Member elects to have either NJ or NY state taxes withheld• Member signs completed application form at bottomWhen applying for a HARDSHIP payout under the Profit Sharing

account, members must show proof and stipulate one of the followingtypes of hardship:

1. To prevent eviction from or foreclosure of the participant’s principalresidence, or to satisfy a tax lien filed against the participant’s princi-pal residence by a federal, state or local government agency or entity.

2. For payment of tuition and/or room and board for 12 months for theparticipant, spouse, dependent children or immediate family memberat a post-secondary educational institution, or school or institutionfor physically or mentally handicapped or emotionally disturbedchildren.

3. For payment of burial or funeral expenses for the participant’sdeceased parent, spouse, dependent or immediate family member.

4. For the purchase, construction, or substantial rehabilitation of yourprincipal residence.

5. For payment of medical emergencies or other medical expenses of$1,000 or more (in the aggregate) of the participant, spouse, depend-ent children or immediate family member that are not reimbursableby the Northeast Carpenters Health Fund.

6. For payment of up to 18 months of COBRA premiums or up to 12months of self-pay premiums for coverage under the NortheastCarpenters Health Fund or other health insurance.

7. For emergency repairs to the participant’s principal residence, includ-ing but not limited to repairs for damage due to fire, storms, flood,or other water or sewer damages or other casualty loss, to the extentnot covered by insurance.

8. For any other circumstances of sufficient severity that a participant is confronted by present or impending financial ruin, or his family isclearly endangered by present or impending want or privation,subject to the approval of the Board of Trustees.

MONEY PURCHASEMoney purchase account payouts are made on the 7th and 21st of each

month (or closest business day if those dates fall on a weekend). Also,applications are due in the Funds Office at least one week prior to payouts.

To be eligible for a distribution from the Money Purchase account, amember must be one of the following:

• Retired and currently collecting a pension• Disabled and currently on Social Security Disability (must

provide proof)• Out of work: Member worked less than 106 hours in a job cov-

ered by a Collective Bargaining Agreement (CBA) or ParticipationAgreement during the prior six (6) month period, or memberworked no hours in a job covered by a CBA or ParticipationAgreement during a three (3) consecutive month period during theprior twelve (12) consecutive months.

• Ex-spouse payments made under a Qualified Domestic RelationsOrder (QDRO)

As with the Profit Sharing account, members can receive paymentsthrough either a direct rollover, in a full lump or partial lump payout, or in monthly distributions. In addition, Money Purchase payments can bemade to a) a Joint & Survivor Annuity, b) a Joint & 75% SurvivorAnnuity, c) a Joint & 50% Survivor Annuity, or d) a Single Annuity.

Again, distributions are liable to a mandatory 20% federal tax andmembers can choose the amount they want withheld for NJ or NYstate taxes.

Finally, the requirements for completed forms are the same for boththe Profit Sharing and Money Purchase accounts.

For a more detailed breakdown of Annuity Fund rules and regulations,refer to the Fund’s Summary Plan Description (SPD), effective April 1,2011, and any subsequent Summary Material Modifications (SMMs) thatmay have been issued since that time. If you have any questions regardingthe newly merged Northeast Carpenters Annuity Fund, please contact theFunds Office at 1-800-624-3096.

Understanding the Rules and Requirements of the Newly Merged Northeast Carpenters Annuity Fund

NORTHEAST CARPENTERS FUNDS Benefits WatchApril 20168

REMINDER:Submit Working SpouseEligibility Forms

As part of the Northeast Carpenters Health Plan’sWorking Spouse Program, all eligible spousesare required to enroll in their employer-sponsoredbenefits plans as their primary coverage wheneveravailable. The program is one of several steps

taken by the trustees as a means of ensuring the health fund’s continuedfinancial strength.

By now, all spouses should have received the annual verificationform to confirm their employment status, which must be completedand returned to the Funds Office each year before any health careclaims submitted on their behalf will be considered for payment.Claims will be held pending until the form is received.

Exemptions: Spouses are not subject to the requirements of theprogram under the following conditions:

• Spouses who are not employed.

• Spouses who are self-employed.

• Spouses who work part-time (less than 30 hours a week).

• Spouses whose employer does not offer health care coverage.

• Spouses whose employer requires employees to pay 100% of theirhealth care premium with no employer contributions.

Spouses who do not comply and refuse to enroll in their employer-sponsored health plan, or those who fail to return the form, will nolonger be eligible for coverage under the Health Fund. Also, workingspouses who are eligible for health coverage through their employer buthave missed the open enrollment election period, must enroll at the nextavailable opportunity or their carpenters’ coverage will be terminated.

“We want to emphasize that all spouses eligible for primary coverageunder their employer’s plan will continue to receive secondary coveragethrough the Carpenters’ Plan, assuming the member is eligible,” saidNortheast Carpenters Funds Director George R. Laufenberg.

If you have any questions regarding the Working Spouse program,please contact the Fund’s Office at 1-800-624-3096 at your earliest convenience.

Voluntary CoveragePrograms Remain in Place

The voluntary dental, vision and hearing aid programs available toour members are being continued for the upcoming Plan Year.

Please remember that these are voluntary programs in which you may ormay not wish to participate. The programs are not administered by the HealthFund, nor is the Fund responsible for the services these programs provide. Alladministration and payments for these benefits, including the enrollmentprocess, are transacted directly between the member and the carrier.

It is your responsibility to make sure you understand the guidelines of any program, prior to your enrollment. These programs have beenreviewed by the Health Fund, and we believe they offer substantial valueto members who wish to enroll. Please evaluate them carefully to ensurethey provide coverage that is appropriate for your family.

Remember, members are responsible for the entire cost of thisvoluntary coverage. Listed below is contact information for thesevoluntary benefit programs:

DENTAL PROGRAMSCigna DentalContact – John Blasch at 917-439-9173 (cell)

Delta DentalContact – Enrollment - Toll Free Customer service at 866-808-4234

Benefit Questions/New Cards at 800-422-4234Website – www.njcfdelta.com

Smile SolutionsContact – Jeff Motto at 800-982-5529

VISIONDavis VisionContact – Toll Free Customer Service at 888-444-5616

HEARING AID BENEFITEpic HearingContact – Toll Free Customer Service at 866-956-5400

When inquiring about any of these programs, please indicate that youare a member of the Northeast Carpenters Health Fund. Also, please beaware that the Delta Dental Program has a limited enrollment period,beginning March 1st and ending May 15th.

Out-Of-Network Reimbursements Based on Northeast Carpenters Fee Schedules

Some members have the false impression that the Northeast CarpentersHealth Fund will reimburse them for up to 80% of the charges, if andwhen they select an out-of-network provider. They then become frustrat-ed when informed that the fund will reimburse them only up to the levelof our fee schedule, which is 120% of the Medicare RBRVS feeschedule. The Northeast Carpenters fee schedule is usually much lessthan 80% of the actual charges that may be billed by an out-of-networkprovider.

Participating members of the Northeast Carpenters Health Fund have

a responsibility to make sure their provider is in our network in order toreduce or eliminate their out-of-pocket costs. Otherwise, they will beresponsible for the difference between our fee schedule payment and theactual charges billed by an out-of-network provider.

Once again, please be cautioned that if you choose a non-participating,or out-of-network provider for your health care needs, the NortheastCarpenters Health Fund will reimburse you only up to the level ofthe fee schedule (120% of the Medicare fee schedule) it has contractedwith in-network participating providers for that specific procedure.

Members Must Maintain PIP Coverage for Auto InjuriesAny injuries suffered in an automobile acci-

dent, or any injuries suffered involving an auto-mobile, must be submitted to your automobileinsurer who will serve as the primary payer ofany claims incurred. As set forth on page #17of the Summary Plan Description (SPD), only a deductible of $250 and the 20% co-paymentof the first $5,000 in total eligible charges willbe considered for reimbursement through theNortheast Carpenters Health Fund. Benefit pay-ments are subject to the limits and guidelines of the Plan.

You CANNOT waive your Personal InjuryProtection (PIP) to have the NortheastCarpenters Health Fund be the primarypayer for automobile related claims.

Automobile insurance coverage includesmany items which most people are unaware of, such as but not limited to, shutting a vehicledoor on your fingers, injuries incurred whileworking on your vehicle, slips and falls whileentering or exiting a vehicle, or injuries sus-tained while removing items from your vehicle.

If your automobile insurance carrier terminates(or fails to authorize) medical coverage regarding a particular accident at a time when you still require treatment/therapy, please refer to the section titled SUBROGATION AND REIM-BURSEMENT on pages #15 & #16 of the SPD for information relating to the Plan’s rules should you decide to pursue a lawsuit against the auto-mobile insurance carrier or other entity.

Members are also reminded that onlyLevel #1 health benefits (excluding servicesprovided by acute, sub-acute or skilled nurs-ing rehabilitation facilities) are authorizedfor the treatment of injuries suffered in amotorcycle or recreational vehicle accident.No Major Medical/Co-Pay benefits will beeligible for reimbursement (i.e. follow-upoffice visits, physical therapy, occupationaltherapy, rehabilitation facilities (acute orsub-acute), skilled nursing, prescriptiondrugs, or durable medical equipment.)Recreational vehicles include, but are notlimited to, ATVs, ski mobiles, and any othermotorized vehicles not ordinarily used pri-marily for travel upon public roadways.

One of the reasons that theCarpenters Annuity Fund was able to achieve an impressive 3% returnon investments in 2015, despite adecidedly languid stock market, wasdue to the Fund’s increased holdings in the real estate sector. By utilizing the services of the Intercontinental RealEstate Corporation (Intercontinental),the Annuity Fund not only bolstered the returns for its investment portfolio,

it also helped insure development of several union-built constructionprojects in New Jersey.

Intercontinental is a real estate investment firm headquartered inBoston, MA, with approximately $5B in assets under management.The Northeast Carpenters have invested in the firm’s managed fundknown as the “Intercontinental Build Real Estate Investment Fund,LLC.” The firm has a long history of being labor-friendly and this particular Fund is driven by a “value-add” investment strategy, targetingspecific opportunities to develop and/or reposition assets in New Jersey,Pennsylvania, New York, and Delaware. To date, the Fund has investedsolely in the State of New Jersey.

Completed projects in the Fund include the following:

• The 774,718 gross square foot, 800 Scudders Mill Road project in the Princeton Forrestal Center, Plainsboro, NJ. The project hascompletely renovated the property to provide Class A LEED certi-fied office space. It serves as the North American headquarters ofNovo Nordisk, a global pharmaceutical company with an industryleading position in diabetes care products. The project created an estimated 865,602 union hours of work in construction andoperations.

• The Class A, 135-unit apartment community at 900 Monroe Street in Hoboken, NJ. The development, on 1.18 acres, is an 11-storyLEED Certified Gold residential tower, which features 13,400square feet of retail space. The property also includes a state-of-the-art, automated parking facility with 144 above-grade parkingspaces. The project created an estimated 350,230 union hoursof work.

On June 30, 2014, the Intercontinental fund closed on the acquisition ofthe first of three parcels of land (known as Monroe Center) located at 701Harrison Street in Hoboken, NJ. Subsequently, the Fund acquired twoadditional parcels of land at 605 Jackson Street and 700 Monroe Streetrespectively. These three acquisitions will be used for the proposed devel-opment of approximately 450 to 500 Class A apartments in a 14-storyLEED Certified residential/mixed-use tower, consisting of more than450,000 rentable square feet of residential and retail space. The pro-posed project will also include 450 to 500 structured parking spaces.Construction is set to begin in the fall of 2016 and will create anestimated 1.2 million union hours of work.

Novo Nordisk headquarters in Plainsboro, NJ

Real Estate Investments Boost Annuity Fund Returns andCreate Work for New Jersey Union Carpenters

NORTHEAST CARPENTERS FUNDS Benefits WatchApril 20169

The George H. Laufenberg Scholarship Fund will hold its 21st AnnualAwards Luncheon, Wednesday, June 29th, at the Club House at GallopingHill Country Club in Kenilworth, NJ. The prestigious scholarship programis open to the children and grandchildren of eligible members of theNortheast Regional Council of Carpenters, including New York-based localunions that participate in the newly merged Northeast Carpenters Funds.

The program presented some 37 four-year scholarships in 2015 valued at nearly $175,000, as well as one-time payments of $500 to some 127qualified applicants who did not receive scholarships. The 2015 figureof $235,000 raised the program’s total monetary commitment to morethan $3 Million since its inception in 1996. In all, the Fund has awarded

scholarships to some 440 recipients over the past two decades.Student applicants must be the child or grandchild of 1) an active member

of the Northeast Regional Council of Carpenters who has been a member ofthe Brotherhood a minimum of five years, 2) a retired member receiving apension from the Northeast Carpenters Funds at the time the application isfiled, or 3) a current employee of the funds who has been employed by thefunds a minimum of five years. Recipients must have maintained a B-gradeaverage in high school and must maintain a B-grade average in college.

The program’s namesake, the late George H. Laufenberg, was longtimepresident of the New Jersey State Council of Carpenters, and BusinessManager of former Madison Local Union #620.

NORTHEAST CARPENTERS FUNDSBenefits WatchRaritan Plaza II, P.O. Box 7818Edison, New Jersey 08818-7818

RETURN SERVICE REQUESTED

Northeast CARPENTERS FundsLABOR TRUSTEES MANAGEMENT TRUSTEES

Laufenberg Scholarship Fund Begins 3rd Decade of Service

John Ballantyne, Co-Chairman*William Banfield*Michael Capelli*

Scott ColtonMichael DeRosaDavid Haines*

Paul LeoAlex Lopez

Thomas Mairs

James MalcomAndrew Pacifico*Robert Satriano

Michael ShanahanWilliam Sproule*

Frederick Swayze, Jr.Robert Tarby

Anthony VerrelliPeter Woodward

John DeLollis, Co-Chairman*Robert Epifano*Glenn GarlattiEarl R. HallMark Hall*

Todd Helfrich*Aaron Hilger*Eric JensenFrank Jones

Brad JorreyJack Kocsis*James Logan

Brian McGloneJohn O’Hare

F. Matthew PepeRobert Polisano

Adam SchmitAlan Seidman

George R. Laufenberg, Funds Director David B. Stewart, Assistant Funds Director

*Designates members of the Executive Finance Committee

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