Eligibility For Payments From Account

Eligibility of Employee

You become eligible to use your account on the first day of the calendar month in which you satisfy the following requirements:

• You have accrued $500 in your account; and
• You become eligible for medical benefits from the Carpenters Health and Security Plan—For Retired Carpenters, or you commence COBRA continuation coverage from the Carpenters Health and Security Plan—For Employed Carpenters in lieu of retiree medical benefits from the Retiree Health Plan.

You must be both retired and eligible for coverage under the Retiree Health Plan to use your account.

Eligibility of Dependent

Your dependent becomes eligible for payment of eligible expenses from your account on the date you become eligible, or if later, on the date your dependent becomes a dependent. Your dependent is also eligible for payment of eligible expenses from your account following your death, provided you have $500 or more in your account at the time of your death and your dependent is otherwise eligible for medical benefits under the Carpenters Health and Security Plan—For Retired Carpenters or for post-retirement COBRA coverage under the Carpenters Health and Security Plan—For Employed Carpenters.

Payment of Benefits/Eligible Expenses

If you are eligible, you are entitled to use the balance in your account to pay a portion of your monthly contribution needed to maintain coverage under the Retiree Health Plan. You may also use your account to help purchase COBRA coverage. No other expenses qualify as eligible expenses.

Forfeiture of Account and Termination of Employee Eligibility

Your account is forfeited and eligibility (if established) terminates on the earliest of:

• The last day of the plan year after you have no account activity for a period of 120 consecutive months regardless of the size of your account balance; or
• The last day of the first plan year in which you have had no account activity for 12 months, if the account balance is less than $500; or
• The date of termination of eligibility for retiree medical benefits under the Carpenters Health and Security Plan—For Retired Carpenters; or
• The date there is a zero balance in your account; or
• Upon your death, unless you are survived by eligible dependents, in which case your account will be forfeited upon termination of eligibility of all dependents.

For purposes of this section, "account activity" means there have been no contributions to the account and no payments from the account. A determination of whether there has been account activity during a plan year is made after allocation of employer contributions to accounts for the plan year.

Periods of qualified military service for which you retain reemployment rights under the Uniform Services Employment and Reemployment Rights Act are deemed to be activity in the account for purposes of determining whether there has been "account activity."

Termination of Dependent Eligibility

If a dependent has established eligibility before forfeiture of your account, then dependent eligibility terminates on the earliest of:

• The date of termination of the employee's eligibility, except by death;
• The day the dependent ceases to meet the definition of dependent;
• In the case of the employee's death, the last day of the plan year that is 60 months after the last account activity, regardless of the size of the account balance;
• In the case of the employee's death, the last day of the first plan year in which the employee has had no account activity for 12 months, if the account balance is less than $500; or
• The date there is a zero balance remaining in the employee's account.

Forfeiture

An employee's account is forfeited upon termination of eligibility, unless termination is due to the death of the employee who is survived by eligible dependents, in which case the employee's account is forfeited upon termination of eligibility of all dependents. Forfeited amounts are allocated to remaining active accounts.

Death

If you die, your eligible dependents may use your account balance for payment of eligible expenses until termination of dependent eligibility. The account will then be forfeited upon termination of eligibility of all dependents.