November 20, 2006Dear Fund Participant:
The NMU Benefit Plans are pleased to inform you that, effective January 1, 2007, the NMU Vacation Fund (the “NMU Fund”) will merge into the Seafarers Vacation Fund (the “SIU Fund”). The Board of Trustees of each of the Funds anticipates that the merger will be mutually beneficial for all Fund participants.
Benefits Under the NMU Fund as of December 31, 2006
Up to and including December 31, 2006, if you have thirty (30) days of covered employment for which you have not yet collected a vacation benefit from the NMU Fund, you will be eligible to apply for such earned and uncollected benefits from the SIU Fund at any time on or before December 31, 2008. Please be aware that the SIU Fund allows participants to collect accrued vacation benefits while working in covered employment and, thus, you will be eligible to collect the vacation benefits that you accrued under the NMU Fund at any time before January 1, 2009 even if you continue to work in covered employment. However, on January 1, 2009, all uncollected vacation benefits that you accrued under the NMU Fund will expire.
Participation in the SIU Fund
If you have an uncollected vacation benefit under the NMU Fund as of December 31, 2006, you will be eligible to begin accruing vacation benefits under the SIU Fund beginning on January 1, 2007, pursuant to the terms of the SIU Fund’s Plan. (A copy of the SIU Fund’s Summary Plan Description, which will govern your benefits, will be provided to you by the SIU Fund Office.) If you do not have an uncollected vacation benefit under the NMU Fund as of December 31, 2006, you must become eligible to participate in the SIU Fund before you may begin accruing benefits under the SIU Fund in accordance with the terms of the SIU Fund’s Plan, including by satisfying the rule that requires sixty (60) days of covered employment prior to the commencement of participation.
Applying for Benefits
Whether you are applying for your vacation benefit earned under the NMU Fund or a benefit earned under the SIU Fund following the merger, beginning on January 1, 2007 you will be required to apply for your benefits from the SIU Fund, and all benefits to which you are entitled will be payable by the SIU Fund. If you have already applied for a benefit from the NMU Fund prior to the merger date, with payment to begin following the merger date, the benefit will be paid by the SIU Fund.
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The Board of Trustees of the SIU Fund reserves the right, in its sole and absolute discretion, to amend, modify or terminate the plan of benefits (including with respect to benefit levels and eligibility requirements), at any time and for any reason, consistent with the terms of any applicable collective bargaining agreement.
It has been a pleasure to serve you over the years. We know that the Board of Trustees of the SIU Fund looks forward to administering your benefits. For more information about the SIU Fund benefits, please contact the plan administrator at (301) 899-0675.
Sincerely,
Board of Trustees
NMU Vacation Fund
This Notice describes changes to the benefits provided under the NMU Vacation Plan (the “Plan”) which will take effect on January 1, 2007. This summary is intended to satisfy the requirements for the issuance of a Summary of Material Modification (“SMM”) under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). You should take the time to read this SMM carefully and keep it with your copy of the Summary Plan Description (“SPD”). If you have any questions regarding these changes, please contact the NMU Fund Office at 360 West 31st Street, New York, NY 10001, or by phone at (212) 337-4900 before December 31, 2006, or the SIU Fund Office, 5201 Auth Way, Camp Springs, MD 20746, or by phone at (301) 899-0675 as of January 1, 2007.
This SMM is intended to provide you with an easy-to-understand description of certain changes to the Plan. While every effort has been made to make this description as complete and as accurate as possible, this SMM, of course, cannot contain a full restatement of the terms and provisions of the Plan. If any conflict should arise between this summary and the Plan, or if any point is not discussed in this SMM or is only partially discussed, the terms of the Plan will govern in all cases.
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