NOTICE OF CRITICAL STATUS FOR UNITED
FURNITURE WORKERS PENSION FUND A (THE "PLAN")

This is to inform you that on May 29, 2008 the Plan actuary certified to the U.S. Department of the Treasury, and also to the plan sponsor, that the Plan is in critical status for the plan year beginning March 1, 2008. Federal law requires that you receive this notice.

Critical Status

The Plan is considered to be in critical status because it has funding or liquidity problems, or both. More specifically, the Plan’s actuary determined that over the next three plan years, the Plan is projected to have an accumulated funding deficiency for the plan year ending 2011.

Rehabilitation Plan and Possibility of Reduction in Benefits

Federal law requires pension plans in critical status to adopt a rehabilitation plan aimed at restoring the financial health of the plan. The law permits pension plans to reduce, or even eliminate, benefits called “adjustable benefits” as part of a rehabilitation plan. If the trustees of the Plan determine that benefit reductions are necessary, you will receive a separate notice in the future identifying and explaining the effect of those reductions. Any reduction of adjustable benefits will not reduce the level of a participant’s basic benefit payable at normal retirement. In addition, the reductions may only apply to participants and beneficiaries whose benefit commencement date is on or after June 28, 2008. But you should know that whether or not the Plan reduces adjustable benefits in the future, effective as of June 28, 2008, the Plan is not permitted to pay lump sum benefits (or any other payment in excess of the monthly amount paid under a single life annuity) while it is in critical status. The plan sponsor will develop a rehabilitation plan for this Plan by January 24, 2009.

Adjustable Benefits

The Plan offers the following adjustable benefits which may be reduced or eliminated as part of any rehabilitation plan that it may adopt:

• Post-retirement death benefits;
• 36 month payment guarantees;
• Disability benefits (if not yet in pay status);
• Early retirement benefit or retirement-type subsidy;
• Benefit payment options other than a qualified joint-and survivor annuity (QJSA);
• Other similar benefits, rights, or features under the plan including:
  • Lump sum withdrawal benefits, and
  • Lump sum death benefits

Employer Surcharge

The law requires that all contributing employers pay to the Plan a surcharge to help correct the Plan’s financial situation.  The amount of the surcharge is equal to a percentage of the amount an employer is otherwise required to contribute to the plan under the applicable collective bargaining agreement.  With some exceptions, a 5% surcharge is applicable in the initial critical year and a 10% surcharge will be applicable for each succeeding plan year thereafter in which the plan is in critical status.

Where to Get More Information

For more information about this Notice, you may contact Ms. Dee Anne Walker at (615) 889-8860 or 1910 Air Lane Drive, Nashville, Tennessee 37210. You have a right to receive a copy of the rehabilitation plan from the Plan, once it has been adopted by the plan sponsor.

Questions & Answers

The Pension Protection Act of 2006 (PPA) requires the Board of Trustees of the United Furniture Workers Pension Fund A (the Plan) to develop a Rehabilitation Plan to improve its funding status. These Questions and Answers are intended to address many questions and concerns you may have.

• Q. What is the PPA?
  
  A. The Pension Protection Act, among other things, requires multi-employer pension funds to be evaluated by enrolled actuaries to determine whether they have a current or projected funding deficiency. If certain funding conditions are present, the fund will be required by law to implement a plan to improve funding under parameters set by the PPA. Under the PPA, improved funding may be brought about by benefit cuts, contribution increases or a combination of both.
  
  
• Q. Has the Plan been evaluated by an enrolled actuary?
  
  A. Yes. On May 28, 2008, Cheiron, the Plan’s actuary, certified that the Plan will be in Critical Status for the Plan Year beginning on March 1, 2008 for purposes of the PPA. A Notice was sent on 06/27/2008 informing all Participants, Local Unions and contributing Employers, Retirees and Beneficiaries that the Plan was in Critical Status.
  
  
• Q. Why is the Plan in Critical Status?
  
  

  A. The Plan is in Critical Status because the actuaries have projected that the Plan will incur a funding deficiency, as defined by the PPA, within four years.

• Q. What must the Plan do now that it is determined to be in Critical Status?
  
  

  A. Under the PPA, the Plan’s Trustees must develop and implement a Rehabilitation Plan to improve its funding situation.

• Q. What are the requirements of a Rehabilitation Plan under the PPA?
  
  

  A. The requirements of PPA state that a Fund must emerge from Critical Status within 10 years. To do so, the Plan must reverse all Critical Status triggers and demonstrate that it will have no projected funding deficiency after 10 years from the beginning of Rehabilitation Period that follows once the Fund enters Critical Status.

• Q. What are the components of a Rehabilitation Plan?
  
  

  A. The PPA requires implementation of a Default Schedule as part of a Rehabilitation Plan that will allow the Fund to exit Critical Status at the end of the rehabilitation period (which the PPA defines as being 10 years).  The PPA prescribes the elements of the Default Schedule.  The Default Schedule must contain a reduction in adjustable benefits, and additional employer contributions (if the benefit cuts are not sufficient by themselves to allow the Plan to exit Critical Status).  Additionally, under the PPA, the Board of Trustees might consider developing an alternative Schedule for Local Unions and their contributing Employers ("Bargaining Parties") to consider for adoption as an alternative to the Default Schedule.  This Schedule may contain less severe benefit cuts and with higher contribution increases if it achieves the goal of allowing the Plan to exit Critical Status at the end of the rehabilitation period.  The Default Schedule will be imposed if the Bargaining Parties fail to adopt an alternative Schedule.

• Q. Are benefits being changed for individuals who are currently receiving retirement or disability benefits?
  
  

  A. No. The PPA does not permit benefits to be cut for Participants who began receiving retirement benefits or who began receiving disability benefits prior to the date on which the Notice of being in Critical Status was sent. A successfully completed Rehabilition Plan period may allow the Plan to leave Critical Status and help ensure that retirement benefits will be paid out to current and future retirees.

• Q. Can my Employer offset the increases to employer contributions under the Default Schedule or a possible Alternative Schedule with reductions to the previously negotiated Employer contributions to the Plan?
  
  

  A. No. Once a plan is declared in Critical Status, the PPA prohibits Employers from reducing employer contributions to that benefit fund.

• Q. Is it possible that any of the benefit cuts will be restored or additional benefit cuts will be made over the next ten years?
  
  A. Under the requirements of the PPA, based on actuarial projections, it is unlikely that the eliminated benefits will be restored or that additional benefit cuts will need to be made during the time period in which the Plan is operating under a Rehabilitation Plan. However, it is possible that additional changes will be required if the funding status does not improve as expected.
  
  
• Q. What happens next?
  
  A. A detailed Rehabilitaion Plan is being worked on and will be communicated to all interested parties as soon as it is finalized.
  
  
• Q. I still have questions, what should I do?
  
  A. For further information, please call or contact the Fund Office.