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Summary Plan Description
STANDARD BENEFIT PAYMENT FORMS
HUSBAND-AND-WIFE PAYMENT FORM (SECTIONS 5.01, 5.02)
Unless you and your spouse reject this payment form in writing before a Notary Public or Plan representative, the Plan will pay your pension in the Husband-and-Wife payment form when you retire if:
Before your pension starts, the Plan is required to give you an explanation of the various payment options available under the Plan and how they affect the amount of your benefit. After you receive this information, you and your spouse will have at least 30 days to decide in what form you want your pension paid. You and your spouse can reject the Husband-and-Wife payment form at any time after you receive this information, but no more than 90 days before your pension effective date.
Under the Husband-and-Wife payment form, you will receive a fixed monthly amount for life, and your surviving spouse will receive a lifetime benefit equal to 50% of the amount you were receiving during retirement. The monthly amount of the pension you receive during retirement will be reduced, because your pension is also intended to protect your spouse for life, if he or she survives you. The reduction depends on the age difference between you and your spouse and whether you retired on a disability or non-disability pension, as follows:
Non-Disability Pension- The amount of a non-disability pension is multiplied by 95% if you and your spouse are less than one year different in age. For each full year your spouse is older than you, the 95% multiplier factor is increased by .5%. For each full year your spouse is younger than you, the 95% multiplier factor is decreased by .5%. In any case, your benefit cannot be greater than 99% of your original pension amount. (Section 6.08(c)(1))
Ralph is age 61 and eligible for a Regular Pension of $3,080 per month. His wife is age 58 and they do not reject the 50% Husband-and-Wife payment form. Ralph's Regular Pension would be adjusted as follows:
$3,080 x 93.5% (automatic adjustment) = $2,879.80
In this example, the 50% Husband-and-Wife multiplier factor was adjusted from 95% to 93.5% because Ralph's wife is three years younger than Ralph. (95% - (3 times .5% or 1.5%) = 93.5%) In this example, Ralph will get $2,879.80 per month for the rest of his life and 50% of that amount ($1,439.90) will be payable to his wife after his death, if she survives him.
Disability Pension- The amount of a non-disability pension is multiplied by 87% if you and your spouse are less than one year different in age. For each full year your spouse is older than you, the 87% multiplier factor is increased by .4%. For each full year your spouse is younger than you, the 87% multiplier factor is decreased by .4%. The percent will be increased by an additional .3% for each full year you are less than age 55. In any case, your benefit may not be greater than 93% of the original pension amount. (Section 6.06(c)(2) )
Assume George is age 56 and eligible for a Disability Pension of $2,180 per month. Remember, the Disability Pension is calculated the same way as the Regular Pension, regardless of your age when you become disabled. For this example, assume that George's wife is also age 56, and that he and his wife do not reject the 50% Husband-and-Wife payment form. His Disability Pension would be adjusted as follows:
$2,180 x 87% (automatic adjustment) = $1,896.60
In this example, George will receive $1,896.60 per month for life, or for as long as he remains eligible for a Disability Pension, and 50% of that amount (or $948.30) is payable to his wife for life after this death, if she survives him. There is no reduction other than this automatic adjustment because he and his wife are the same age.
ADDITIONAL REQUIREMENTS FOR HUSBAND AND WIFE BENEFIT PAYMENT FORM
For your spouse to receive a benefit upon your death under the Husband-and-Wife benefit payment form, you and your spouse must have been married to each other throughout the one-year period ending on the date your pension benefits begin. In addition, if you marry less than one year before the date pension payments begin your benefit will be paid in the Husband-and-Wife benefit payment form (unless you and your spouse reject this benefit payment form as described above) and if you and your spouse have been married for at least a one-year period ending on or before your date of death, then your spouse will receive a benefit upon your death under the Husband-and-Wife benefit payment form. If your benefit is paid in the Husband-and-Wife benefit payment form, under this special rule for those who have not been married for one year as of the date of retirement and you die before you have been married one year, the difference in the amount of the monthly benefit (between the benefit adjusted for the Husband-and-Wife benefit and the benefit for your life alone) will be paid to your spouse or to a designated beneficiary if your spouse is deceased. If your spouse dies before you have been married one year, your benefit is changed to the applicable benefit payment form for the type of pension on which you have retired—the Single Life Pension with 100-Payment Guarantee if you retired on a Regular or Early Retirement Pension or the Single Life Pension if you retired on a Disability or Vested Pension. This change is effective as of the first of the month following the death of your spouse. The difference in the amount of the monthly benefit (between the benefit adjusted for the Husband-and-Wife benefit and the benefit for your life alone) will be paid to you.
You cannot revoke the Husband-and-Wife payment form after your pension payments begin. The benefit payable to your surviving spouse under the Husband-and-Wife benefit payment form will begin on the first of the month following your death, even if you retired on a Disability Pension before you reached 55 years of age. Once your pension begins in the Husband-and-Wife benefit payment form, the amount you receive will not be increased if you and your spouse are later divorced. Your former spouse is treated as your spouse unless a Qualified Domestic Relations Order provides otherwise. Any rights of a former spouse under the Qualified Domestic Relations Order will be honored.
A Qualified Domestic Relations Order is a judgment, decree or order (including approval of a property settlement agreement) made under a state domestic relations law which relates to provision of child support, alimony, or marital property rights of a spouse, former spouse child or other dependent. To be considered “qualified” by the Plan, the order must meet certain requirements. Please contact the Fund Office if you need more information. A copy of the Plan’s Procedures for Processing Domestic Relations Orders is available from the Fund Office.
If your non-disability pension begins on or after January 1, 1991, you can elect a Pop Up Option when you elect the 50% Husband-and-Wife payment form. (Section 6.08(c)(3)). Under this benefit payment 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 50% Husband-and-Wife payment form. The increase is effective the month following your spouse’s death. If you elect the Pop Up Option, the 95% multiplier factor that is adjusted as described above, will be further reduced one percent (1%) to pay for this protection.
Ralph, in the example on page ____, and his spouse do not reject the Husband-and-Wife payment form but he also elects (and his spouse consents to) the Pop Up Option. Ralph's Regular Pension would be adjusted as follows:
$3,080.00 (monthly pension amount from example) x 92.5% = $2,849.00
In this example, Ralph will get $2,849.00 per month for the rest of his life and 50% of that amount ($1,424.50) will be payable to his wife, if she survives him. If Ralph's wife does not survive him, Ralph's pension will increase to $3,080.00, the Regular Pension amount determined in the example on page ___, the month following his wife's death. If Ralph had been younger than 61 years old when his pension began, his pension would increase to the Early Retirement amount under this option in the event he survived his wife.
If you do not elect the Pop Up option, the pension amount you receive will not increase if your spouse dies before you. As noted above, you may not elect a Pop Up if you are retiring on a Disability Pension with a 50% Husband-and-Wife benefit payment form.
PLEASE REMEMBER THAT, IF YOU ARE MARRIED, THE HUSBAND-AND-WIFE PAYMENT FORM WILL TAKE EFFECT AUTOMATICALLY, UNLESS YOU AND YOUR SPOUSE REJECT IT IN WRITING AND HAVE THE WAIVER WITNESSED BY A NOTARY PUBLIC. ONCE YOU RECEIVE THE REQUIRED INFORMATION FROM THE FUND OFFICE, YOU MAY JOINTLY REJECT THIS FORM OF PAYMENT AT ANY TIME DURING THE 90-PERIOD BEFORE YOUR PENSION BEGINS.
SINGLE LIFE PENSION WITH 100-PAYMENT GUARANTEE (SECTION 6.02)-
REGULAR AND EARLY RETIREMENT PENSIONS
If you are not married (or you and your spouse have properly rejected the Husband-and-Wife benefit payment form) and have elected no other optional form of benefit payment (except the Lump Sum Option, see page XX), the Regular or Early Retirement pension benefit payable to you for your life time is subject to a 100-Payment Guarantee. This is called a “Single Life” because it is paid based only on your life time. If you die before you have received 100 monthly payments, your monthly payment will continue to be paid to your designated beneficiary until both of you have received a combined total of 100 monthly payments. The 100-payment guarantee does not apply to Disability or Vested Pensions.
The protection of the 100-Payment Guarantee stops if you return to Covered Employment after retirement and re-qualify for the Pre-Retirement Surviving Spouse Pension for active employees. (Section 5.03). You re-qualify for the Pre-retirement Surviving Spouse Pension after you have worked 350 hours in a calendar year in Covered Employment. The balance of the 100-Payment Guarantee will continue in effect when you retire again.
SINGLE LIFE PENSION - DISABILITY AND VESTED PENSIONS (SECTION 6.01)
As noted above, the Single Life Pension with 100 Payment Guarantee is not available if you retire on a Disability or Vested Pension. If you are not married (or you and your spouse have properly rejected the Husband-and-Wife benefit payment form), you retire on a Disability or Vested Pension and do not elect an available optional form of benefit payment, the Disability or Vested Pension will be payable to you for your life time only with payment ending on your death.