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BENEFIT PAYMENT OPTIONS

As discussed on page XX, if you are married, the standard form of payment for all types of pensions is the Husband-and-Wife benefit payment form. However, if both you and your spouse formally reject the Husband-and-Wife payment form in writing and have your signatures witnessed by a Notary Public (or a Plan Representative), together you may choose from other payment options. If you are not married at the time of your retirement, you may choose a form of payment other than the Single Life Pension for your lifetime. The available payment options are discussed below. Some payment options are available to all types of pension (i.e., Regular, Early Retirement, Disability, Vested). The chart below indicates which options are available with each type of pension.

Automatic Benefit Payment Options Regular Pension Early Pension Disability Pension Vested Pension
Married: 50% Husband & Wife Benefit Yes Yes Yes Yes
Unmarried: Single Life with 100-Payment Guarantee Yes Yes No No
Unmarried: Single Life No No Yes Yes
Benefit Payment Options        
Partial Lump Sum Yes Yes No No
Split Level Yes before SS age Yes No No
Split Level with J&S Yes before SS age Yes No No
100% J&S Yes Yes No No
66 2/3% J&S Yes Yes Yes No
75% J&S Yes Yes Yes No
Pop Up with 66 2/3% or 75% J&S Yes Yes No No
Single Life with 100 Payment Guarantee Yes Yes No No
Single Life No No Yes Yes
PARTIAL LUMP-SUM PAYMENT OPTION (SECTION 6.03)

If you are eligible to receive a Regular or Early Retirement Pension, you may elect to receive a lump-sum payment of up to $2,000 at retirement in addition to a lifetime monthly benefit. To allow for such a lump sum payment, your monthly benefit will be reduced, but it will not be reduced by more than 10%. The 100-Payment guarantee discussed on page ___ will still apply if you choose this optional form. This option is not available to Participants who retire on a Disability Pension or a Vested Pension.

    Example:

    Your pension will be reduced by the following amounts to provide a lump-sum payment of $2,000 at retirement: (Section 6.08(f))

    Age At Retirement Reduction in Monthly Pension
    58 15.93
    60 16.50
    62 17.11
    64 17.77

    Effective January 1, 2000, federal law requires that pension plans must use certain actuarial assumptions to calculate this benefit. Therefore, the Plan will calculate this benefit using the Plan provisions in effect before 2000 or the new assumptions required by law, whichever is more favorable to you.
SPLIT-LEVEL OR SOCIAL SECURITY OPTION (SECTION 6.07)

If you retire with a Regular Pension before age 65 or with an Early Retirement Pension, you may choose to have your monthly pension benefit paid to you in an increased amount until you reach 62 or 65 years of age and then in a reduced amount thereafter. This option will provide a monthly benefit before 62 or 65 years of age that is approximately equal to the combination of a reduced monthly benefit plus Social Security benefits, whether these begin when you reach 62 or 65 years of age.This option is not available to Participants who retire on a Disability Pension or a Vested Pension.

    Example:

    Suppose you are entitled to an Early Retirement Pension beginning when you reach 60 years of age of $3,080 per month, and you expect to receive a Social Security pension of $800 per month starting at age 62. Under the Split-Level or Social Security Option, you would receive the following benefits:
    (Section 6.07)
      From Age 60
    to Age 62
    After Social
    Security Starts
    From this Plan $3,836.60 $3,036.60
    From Social Security -0- $ 800.00
    Total $3,836.60 $3,836.60


    There is no 100-payment guarantee if this option is chosen, and it may not be canceled once payments have begun.

    For Participants retiring on or after January 1, 1999, if you are eligible to receive a Regular or Early Retirement Pension, you may choose the Split Level with 50% Joint and Survivor Option. This option provides for an increased monthly benefit until you reach 62 or 65 years of age and then a reduced amount thereafter. After your death, your surviving spouse receives the 50% survivor benefit in the same amount as the Husband-and-Wife payment form.

    Example:

    Suppose you could retire with a $3,080 per month pension at age 60, but instead chose this form of benefit. First, the benefit is reduced for the 50% Joint and Survivor benefit. Instead of $3,080 per month for your lifetime, 95% of that amount (assuming you and your spouse are the same age), $2,926.00 per month is the base benefit. Suppose you expect Social Security benefits of $800 per month. Your pension amount is then increased as follows:

      From Age 60
    to Age 62
    After Social
    Security Starts
    From this Plan $3,574.80 $2,798.80
    From Social Security -0- $ 800.00
    Total $3,574.80 $3,574.80

    When you die, your surviving spouse receives 50% of the $2,926.00 base benefit, $1,463.00 per month for the rest of her life.

    Effective January 1, 2000, federal law requires that pension plans must use certain actuarial assumptions to calculate this benefit. Therefore, the Plan will calculate this benefit using the Plan provisions in effect before 2000 or the new assumptions required by law, whichever is more favorable to you.
100% JOINT LIFE AND SURVIVORSHIP OPTION (SECTION 6.04)

If you are eligible to receive a Regular or Early Retirement Pension, you may choose for your beneficiary, whether it be your spouse or someone else, to receive a lifetime benefit equal to 100% of the reduced amount you have been receiving during retirement. This option is not available to Participants who retire on a Disability Pension or a Vested Pension.

If you elect the 100% Joint and Life Survivorship option, it will not take effect until twelve months after you have made this election. If you decide to retire before this twelve month period has elapsed, you will receive your Regular or Early Retirement Pension in the Husband-and-Wife form (if you are married and if applicable) until the option is effective. The amount that you will receive as of the effective date of the option will be reduced as follows:

The amount of the Regular or Early Retirement Pension is first multiplied by 83%. If you and your beneficiary are less than one year different in age, there is no further adjustment. For each full year your beneficiary is older than you, the 83% multiplier factor is increased by .7%. For each full year that your beneficiary is younger than you, the 83% multiplier factor is decreased by .7%. In any case, your benefit may not be greater than 97% of your original pension amount.

If you choose a beneficiary other than your spouse to receive this benefit and the beneficiary is more than ten years younger than you, your benefit may be reduced somewhat due to IRS regulations. If this applies to you, the Fund Office will let you know.

The 100% Joint Life and Survivorship Option will not take effect if you or your beneficiary dies before the first payment. Otherwise, unless you elect the Pop Up Option to apply to the 100% Joint Life and Survivorship Option, if your beneficiary dies after the effective date of the 100% Joint Life and Survivorship Option, you will continue to receive the reduced amount for the remainder of your lifetime.

If your pension begins on or after January 1, 1991, you can elect a Pop Up Option when you elect the 100% Joint and Life Survivorship Option, provided your spouse is your beneficiary. Under the Pop Up option, if your spouse dies before you do, your monthly pension returns to the full amount you would have received if you had elected the 100-Payment Guarantee option, however, the 100-Payment Guarantee feature will not apply. The increase is effective the month following your spouse's death. If you elect the Pop Up Option to apply to the 100% Joint Life and Survivorship Option, your monthly benefit will be reduced 1.6% to pay this protection.

66 2/3% AND 75% JOINT LIFE AND SURVIVORSHIP OPTION (SECTIONS 6.05 and 6.06)

If you are eligible to receive a Regular, Early Retirement or Disability Pension, you may choose for your spouse to receive a lifetime pension equal to either 66 2/3% or 75% of the reduced amount you have been receiving during retirement. If you elect the 66 2/3% or 75% options, you do not have to wait twelve months for the option to be effective. These options are not available to participants who retire on a Vested Pension.

If you elect the 66 2/3% Joint Life and Survivorship Option and you are not receiving a Disability Pension, the amount you will receive as of your pension effective date will be reduced as follows:

The amount of the Regular or Early Retirement Pension is first multiplied by 92%. If you and your spouse are less than one year different in age, there is no further adjustment. However, for each full year your spouse is older than you, the 92% multiplier is increased by .5%. For each full year that your spouse is younger than you, the 92% multiplier is decreased by .5%. In any case, your benefit may not be greater than 98% of your original pension amount. (Section 6.08(i)(1))

If you elect the 66 2/3% option and you are receiving a Disability Pension, the amount you will receive as of your pension effective date will be reduced as follows:

The amount of the Disability Pension is first multiplied by 80.5%. If you and your spouse are less than one year different in age, there is no further adjustment. However, for each full year your spouse is older than you, the 80.5% multiplier is increased by .5%. For each full year that your spouse is younger than you, the 80.5% multiplier is decreased by .5%. In addition, the multiplier is increased by .4 % for each full year you are less than age fifty-five. In any case, your benefit may not be greater than 89% of your original pension amount. (Section 6.08(i)(2)).

If you elect the 75% option and you are not receiving a Disability Pension, the amount you will receive as of your pension effective date will be reduced as follows:

The amount of the Regular or Early Retirement Pension is first multiplied by 90.5%. If you and your spouse are less than one year different in age, there is no further adjustment. However, for each full year your spouse is older than you, the multiplier is increased by .6%. For each full year your spouse is younger than you, the multiplier is decreased by .6%. In any case, you benefit may not be greater than 98% of your original pension amount. (Section 6.08(j)(1)).

If you elect the 75% option and you are receiving a Disability Pension, the amount you will receive as of your pension effective date will be reduced as follows:

The amount of the Disability Pension is first multiplied by 79%. If you and your spouse are less than one year different in age, there is no further adjustment. However, for each full year your spouse is older than you, the multiplier is increased by .5%. For each full year that your spouse is younger than you, the 79% multiplier is decreased by .5%. In addition, the multiplier shall be increased by .4 percentage points for each full year the Participant is less than age fifty-five. In any case, you benefit may not be greater than 87% of your original pension amount. Section 6.08(j)(2).

These options will not take effect if you or your spouse dies before the first payment. Otherwise, unless you elect the Pop Up Option in connection with either the 66 2/3% Survivorship Option or 75% Survivorship Option, if your spouse dies after the effective date of the option, you will continue to receive the reduced amount for the remainder of your lifetime.

If your pension begins on or after January 1, 1991, you can elect a Pop Up Option when you elect the 66 2/3% or 75% Joint and Life Survivorship Option. Under the Pop Up Option, if your spouse dies before you do, your monthly pension returns to the full amount you would have received if you had not elected the 66 2/3% or 75% Joint and Life Survivorship Option. The increase is effective the month following your spouse's death. If you elect the Pop Up Option, your monthly benefit will be reduced by 1.2% for the 66 2/3% option, or by 1.3% for the 75% option, to pay for this protection.

EFFECT OF WORK AFTER RETIREMENT ON PAYMENT OPTIONS (SECTION 7.09)

If you return to Covered Employment after retirement, your pension will be recomputed to take into account additional benefits you have earned but only if you complete a year of Vesting Service (950 hours in a calendar year) after your return to Covered Employment. If you originally retired before Normal Retirement Age (generally before age 65), return to Covered Employment and earn at least one year of Vesting Service (950 hours), you can elect a different benefit payment form for any additional benefits you earn during your return to work. If you originally retired at or after Normal Retirement Age (generally after age 65), any additional benefits you earn when you return to work will be paid in the benefit payment form you elected when you originally retired.

Regardless whether you originally retired before or after Normal Retirement Age, if you return to Covered Employment after your retirement and earn at least three (3) consecutive years of Vesting Service after you return, you will be allowed to elect, with the consent of your spouse, if applicable, a different benefit payment form for all of your benefits including those earned before your return to work.

The following special rules also apply:

  • If you rejected the 50% Husband-and-Wife payment form at retirement, the surviving spouse protection for active employees will be restored until the January 1st after you complete a year during which you work 950 hours or more.


  • If you chose any of the other optional forms of payment described above, you will not be entitled to the surviving spouse protection for active employees.


  • If you elected the 100-payment guarantee, its protection stops when you requalify for death benefits for active employees (350 hours of work in a calendar year). The guarantee will be in force when you retire again, but the payments made during your first retirement count toward the 100 payments.


  • The 100-payments guarantee is always based on all pension payments you ever receive from this Fund, even if you change you option when you retire again