Payment Options
Section 6.01.     General.
  1. Unmarried Participants who formally reject the applicable Normal Form of benefit payment as explained in Section 5.05 and married Participants who formally reject the Husband-and-Wife Pension as explained in Section 5.02(f) may elect in writing an optional form of payment as provided in the Sections which follow, calculated on the principles of Actuarial Equivalence and equitable adjustment in accordance with Section 6.08.


  2. The Normal Form of benefit payment for a Regular or Early Retirement Pension is a Single Life Pension with 100-Month Guarantee for an unmarried person. The Normal Form of benefit payment for a Disability or Vested Pension is a Single Life Pension for an unmarried person. The Normal Form of benefit payment for a married Participant is the Husband-and-Wife Pension.


Section 6.02.     Single Life Pension with 100-Month Guarantee.

If a Pensioner dies before he receives 100 monthly payments, his monthly pension will continue to be paid to his designated Beneficiary, if any, until 100 such payments have been made, including payments to both the Pensioner and Beneficiary. The designation of Beneficiaries must be in accordance with Sections 3.17 and 3.18. This 100-Month Guarantee is available for Participants retiring on a Regular or Early Retirement Benefit and does not apply to Participant’s retiring on a Disability Pension or Vested Pension.

Section 6.03.     Partial Lump-Sum Payment Option.

An Employee eligible to receive a Regular or Early Retirement Benefit may elect, by written application filed with the Trustees, to have his monthly Pension Benefit actuarially adjusted so that he may receive at retirement a monthly Pension Benefit in a lower even dollar amount in return for a Lump-Sum Payment, subject to the limitations that:

  1. the monthly Pension benefit amount may not be reduced by more than 10%; and


  2. the Lump-Sum Payment may not exceed $2,000.00.


If this Lump-Sum Payment Option is elected, the provisions of the 100-Month Guarantee in Section 6.02 will apply.

Section 6.04.     100% Joint-Life and Survivorship Option.

An Employee eligible to receive a Regular or Early Retirement Benefit may designate a Beneficiary and may elect, by written application filed with the Trustees, a Joint-Life and Survivorship Option providing for a reduced monthly retirement benefit to be paid as long as the Employee lives after the Effective Date of his pension, with the further provision that 100% of the reduced monthly retirement benefit will be continued after his death to his surviving Beneficiary during the Beneficiary's remaining lifetime. An Employee who retires on a monthly Disability Benefit provided in Section 3.07 may not elect this option.

If elected this option is not effective until the later of twelve (12) months after the month it is filed with the Trustees or the Effective Date of the pension. Pension payments may begin before the date the option is effective. The reduced benefit in accordance with Section 6.08(d) will apply as of the effective date of the option.

In the case of an Employee who elects this option and designates his Qualified Spouse, as defined in Section 5.02(b), as his Beneficiary, if pension payments begin before the effective date of the option, payment will be made in the form of a Husband-and-Wife Pension in accordance with Section 5.02 with the reductions set forth in Section 6.08(c) until the date the option is effective. The reduced benefit in accordance with Section 6.08(d) will apply as of the effective date of the option.

If the Employee or Beneficiary dies before the option becomes effective, the election will be void and the Employee will be treated as though he made no election. In the case of an Employee who has designated his Qualified Spouse as his Beneficiary and who dies before the election becomes effective, the surviving Qualified Spouse will be entitled to a Surviving Spouse Pension determined in accordance with the provisions of Section 5.02 as if the Employee had retired the day before he died.

The election remains in effect if the Beneficiary dies after the effective date of the option. Once an election has been made and accepted by the Trustees, it cannot be changed or rescinded without the consent of the Trustees.

The election of this option automatically waives the payment guarantee provided for in Section 6.02, as of the effective date of the option.

Section 6.05.     66 2/3% Joint-Life and Survivorship Option.

Effective on or after January 1, 1991, for an Employee eligible to receive a Regular, or Early Retirement Pension and effective January 1. 1994 for an Employee eligible to receive a Disability Pension, who is married to a Qualified Spouse, as defined in Section 5.02, on the Effective Date of his pension may elect, by written application filed with the Trustees, a 66 2/3% Joint-Life and Survivorship Option benefit providing for a reduced monthly retirement benefit to be paid as long as the Employee lives after the Effective Date of his pension, with the further provision that 66 2/3% of such reduced monthly retirement benefit will be continued after his death to his Qualified Spouse during the Spouse's remaining lifetime. An Employee who retires on a Vested Pension as provided in Section 3.06 may not elect this option. The election of this option automatically waives the payment guarantee provided for in Section 6.02, as of the Effective Date of the pension. An election cannot be changed or rescinded after the Effective Date of the pension.

Section 6.06. 75% Joint-Life and Survivorship Option.

Effective on or after January 1, 1991, for an Employee eligible to receive a Regular or Early Retirement Pension, and effective January 1, 1994 for an Employee eligible to receive a Disability Pension, who is married to a Qualified Spouse, as defined in Section 5.02, on the Effective Date of his pension may elect, by written application filed with the Trustees, a 75% Joint-Life and Survivorship Option benefit providing for a reduced monthly retirement benefit to be paid as long as the Employee lives after the Effective Date of his pension, with the further provision that 75% of such reduced monthly retirement benefit will be continued after his death to his Qualified Spouse during the Spouse's remaining lifetime. An Employee who retires on a Vested Pension as provided in Section 3.06 may not elect this option. The election of this option automatically waives the payment guarantee provided for in Section 6.02, as of the Effective Date of the pension. An election cannot be changed or rescinded after the Effective Date of the pension.

Section 6.07.     Split Level Option.

An Employee eligible to receive an Early Retirement Benefit may elect, by written application filed with the Trustees, to have his monthly pension benefit increased until age 62 or 65, according to the age at which he expects to receive his Social Security benefit, and reduced thereafter, in order to approximate a pension before age 62 or 65 as nearly equal as possible to his combined income from the pension and Social Security after that age.

The election of this option automatically waives the payment guarantee provided for in Section 6.02.

An Employee retiring on or after January 1, 1999, who is married to a Qualified Spouse, as defined in Section 5.02, on the Effective Date of his pension may elect, by written application filed with the Trustees to add the 50% Surviving Spouse’s benefit to the Split Level Option. The addition of the 50% Surviving Spouse’s Benefit to the Split Level Option will reduce the monthly benefit payable to the Employee under the Split Level Option for the Employee’s lifetime (both before and after age 62 or 65) and after the Employee’s death will provide a benefit to his Qualified Spouse during the Spouse’s remaining lifetime. The amount payable to the Surviving Spouse is 50% of the Employee’s pension, before the adjustment for the Split Level Benefit, but reduced for early retirement, if applicable, and reduced for the 50% Surviving Spouse’s Benefit using the factors in Section 6.08(c)(1). Only the portion of the benefit payable during the Participant’s lifetime will be converted to the Split Level Option; it will not affect the calculation of the 50% Surviving Spouse’s benefit.

Section 6.08.     Option Conversion Factors After 1983.
  1. Effective Date.
    The provisions of this Section are effective for any pension that first becomes payable after 1983 and are amended as indicated for pensions that first becomes payable on or after January 1, 2000.


  2. Accrued Benefits.
    In no event, however, will the total monthly benefit with respect to a Participant be less, as the result of conversion to an optional form of payment, than the benefit accrued before 1984 when converted to the optional form of benefit. In no event, will the total monthly benefit with respect to a Participant be less, as the result of conversion to an optional form of payment, than the benefit accrued before 2000 when converted to the optional form of benefit.


  3. Husband-and-Wife Option.

    1. Non-Disability Pension.
      If payment of a non-Disability Pension is made in the form of a Husband-and-Wife Pension, the pension amount is adjusted by multiplying it by the following percentage: ninety-five percent (95%) minus one-half (.5) percent for each full year that the Spouse's age is less than the Participant's age or plus one-half (.5) percent for each full year that the Spouse's age is greater than the Participant's age; provided, however, that the resulting percentage will not be greater than ninety-nine percent (99%).


    2. Disability Pension.
      If payment of a Disability Pension is made in the form of a Husband-and-Wife Pension, the pension amount is adjusted by multiplying it by the following percentage: eighty-seven percent (87%) minus four-tenths (.4) percent for each full year that the Spouse's age is less than the Participant's age or plus four-tenths (.4) percent for each full year that the Spouse's age is greater than the Participant's age; in addition, the percentage will be increased by three-tenths (.3) percent for each full year the Participant is less than age 55. The resulting percentage will not be greater than ninety-three percent (93%).


    3. Pop-Up: Unreduced Pension.
      For non-Disability pensions effective on or after January 1, 1991, an Employee may elect an actuarially reduced pension payable under the Husband-and-Wife form of benefit, the 66 2/3% Joint-Life and Survivorship Option, the 75% Joint-Life and Survivorship Option and the 100% Joint-Life and Survivorship Option with the Qualified Spouse as the Beneficiary, which will increase the unreduced pension amount for the Employee's remaining lifetime if the Qualified Spouse predeceases the Employee. The monthly pension amount will be actuarially reduced to pay the cost of the option described herein in addition to any other reduction applicable under Section 6.08. This additional reduction is as follows: one percent (1%) for the Husband-and-Wife form of benefit; one and two-tenths percent (1.2%) for the 66 2/3% Joint-Life and Survivorship Option; one and three-tenths percent (1.3%) for the 75% Joint-Life and Survivorship Option and one and six-tenths percent (1.6%) for the 100% Joint-Life and Survivorship Option.

      This option may be elected in conjunction with the Husband-and-Wife Pension, the 66 2/3% Joint-Life and Survivorship Option, the 75% Joint-Life and Survivorship Option or the 100% Joint-Life and Survivorship Option only by an Employee eligible to elect the benefit form to which it applies.


  4. 100% Joint-Life and Survivorship Option.
    If payment of a non-Disability Pension is to be made in the form of a 100% Joint-Life and Survivorship Option, the pension amount is adjusted by multiplying it by the following percentage: eighty three percent (83%) minus seven-tenths (.7) percent for each full year that the Beneficiary's age is less than the Participant's age or plus seven-tenths (.7) percent for each full year that the Beneficiary's age is greater than the Participant's age; provided, however that the resulting percentage will not be greater than ninety-seven percent (97%).


  5. 100-Month Guarantee Limitation.

    1. This paragraph makes provision for compliance with Section 401(a)(9) of the Code, which, in general, limits payment after death of the Participant and of a Spouse entitled to benefits to a period of five (5) years. The following modification of payments applies to any choice of option made after December 31, 1983.


    2. If following (the later of) the death of the Participant and, if any, that of a surviving Spouse entitled to benefits, payment pursuant to the optional form of payment would, absent this limitation, continue for more than five (5) years, the actuarial value of such payments as of (the later of) the death of the Participant and of a surviving Spouse entitled to benefits will be paid in sixty (60) equal monthly payments.


    3. This limitation only applies to benefits paid to a surviving Beneficiary other than the Participant's Spouse to the extent required by Section 401(a)(9) of the Code as in effect on the date of the Participant's death.


    4. The conversion of the actuarial value of payments due under subsection (2) into sixty (60) equal payments will be computed on the basis of the 1971 Group Annuity Mortality Table and the interest rate promulgated by the Pension Benefit Guaranty Corporation, effective as of the beginning of the Calendar Year in which the payment is due to be made for the valuation of immediate annuities in terminated single employer pension plans that do not close out under a notice of sufficiency.


  6. Partial Lump-Sum Payment Option.

    1. The amount of a lump sum payable in accordance with Section 6.03 will be $132.00 for each reduction of $1.00 in the monthly benefit of the Participant at age 55, or $132.00 minus 18¢ for each full month over age 55 for each reduction of $1.00 in the monthly benefit if the Participant is older than age 55.


    2. Effective January 1, 2000, the amount of a lump sum payable in accordance with Section 6.03 will be the greater of the amount in Section 6.08(f)(1) above or the amount determined based on the actuarial assumptions specified in Section 1.02(b).


  7. Split Level Option.

    1. For a pension first payable after 1983, the earlier amount of the pension is determined by the following table. Months as well as years of attained age are taken into account; the value of each month in excess of an attained year is interpolated from the table. For the Split Level Option paid only for the life of the Participant, the appropriate factors below are applied to the amount of the Early Retirement Pension in Section 3.04. For the Split Level Option with the 50% Surviving Spouse's Benefit, the appropriate factor is applied to the amount of the Early Retirement Pension in the form of a Husband-and-Wife Pension under Section 5.02.


    2. Increase in Pension Until Age 62 or 65 For
      each $10 a Month by which the Increased Pension
      is to be Reduced Thereafter

      Pensioner's Age
      on Effective Date
      Increase for Each
      $10 Reduction At Age 62
      Increase for Each
      $10 Reduction
      At Age 65
      55 $4.99 $3.57
      56 5.48 3.92
      57 6.03 4.32
      58 6.64 4.76
      59 7.33 5.25
      60 8.11 5.81
      61 9.00 6.44
      62 --- 7.16
      63 --- 7.98
      64 --- 8.92

      In those cases in which the Split Level Option is elected for the life of the Employee only without the 50% Surviving Spouse’s Benefit, before using the above table, the Early Retirement benefit will be increased by use of the following factor for the attained age of the Employee at retirement.

      Age of Retirement
      Factor
      55
      1.020
      56
      1.023
      57
      1.025
      58
      1.028
      59
      1.031
      60
      1.035
      61
      1.040
      62
      1.045
      63
      1.050
      64
      1.057

    3. For a pension first payable on or after January 1, 2000, the amount of the pension payable under the Spilt Level Option described in this Section is the greater of the amount determined under the tables set forth in Section 6.08(g)(1) or the amount determined based on tables derived from the actuarial assumptions specified in Section 1.02(b).


  8. Pre-retirement Surviving Spouse Pension.
    If payment of a Pre-retirement Surviving Spouse Pension under Section 5.03(c)(1) is made, the lump sum amount will be converted into a life annuity by dividing the lump sum amount by the following factor shown for the Spouse's attained age on the Participant's date of death:


  9. Age Factor           Age Factor           Age Factor
    20 173.36           40 163.31           60 133.58
    21 173.08           41 162.44           61 131.23
    22 172.79           42 161.53           62 128.79
    23 172.49           43 160.56           63 126.26
    24 172.16           44 159.54           64 123.64
    25 171.81           45 158.47           65 120.92
    26 171.45           46 157.33           66 118.12
    27 171.06           47 156.14           67 115.20
    28 170.65           48 154.88           68 112.18
    29 170.21           49 153.55           69 109.05
    30 169.75           50 152.15           70 105.84
    31 169.26           51 150.68           71 102.58
    32 168.74           52 149.14           72 99.29
    33 168.18           53 147.51           73 96.01
    34 167.60           54 145.79           74 92.75
    35 166.98           55 143.99           75 89.50
    36 166.33           56 142.09           76 86.29
    37 165.64           57 140.10           77 83.10
    38 164.90           58 138.02           78 79.94
    39 164.13           59 135.85           79 76.83
                              80 73.76
  10. 66 2/3% Joint-Life and Survivorship Option.

    1. Non-Disability
      If payment of a pension is made in the form of a 66 2/3% Joint-Life and Survivorship Option pursuant to Section 6.05, the pension amount will be adjusted by multiplying it by the following percentage: ninety-two percent (92%) minus one-half (.5) percent for each full year that the Qualified Spouse's age is less than the Participant's age or plus one-half (.5) percent for each full year that the Spouse's age is greater than the Participant's age; provided, however, that the resulting percentage will not be greater than ninety-eight percent (98%).


    2. Disability
      If payment of a disability pension is made in the form of a 66 2/3% Joint-Life and Survivorship Option pursuant to Section 6.05, the pension amount will be adjusted by multiplying it by the following percentage: eighty and one-half percent (80.5%) minus one-half (.5) percent for each full year that the Qualified Spouse's age is less than the Participant's age or plus one-half (.5) percent for each full year that the Spouse's age is greater than the Participant's age; in addition, the percentage will be increased by four-tenths (.4) percent for each full year the Participant is less than age 55. The resulting percentage will not be greater than eighty-nine percent (89%).


  11. 75% Joint-Life and Survivorship Option.

    1. Non-Disability
      If payment of a pension is made in the form of a 75% Joint- Life and Survivorship Option pursuant to Section 6.06, the pension amount will be adjusted by multiplying it by the following percentage: ninety and one-half percent (90.5%) minus six-tenths (.6) percent for each full year that the Qualified Spouse's age is less than the Participant's age or plus six-tenths (.6) percent for each full year that the Spouse's age is greater than the Participant's age; provided, however that the resulting percentage will not be greater than ninety-eight percent (98%).


    2. Disability
      If payment of a disability pension is made in the form of a 75% Joint-Life and Survivorship Option pursuant to Section 6.06, the pension amount will be adjusted by multiplying it by the following percentage: seventy-nine percent (79%) minus one-half (.5) percent for each full year that the Qualified Spouse's age is less than the Participant's age or plus one-half (.5) percent for each full year that the Spouse's age is greater than the Participant's age; in addition, the percentage will be increased by four-tenths (.4) percent for each full year the Participant is less than age 55. The resulting percentage will not be greater than eighty-seven percent (87%).



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