Article 6. Normal Form of Pension and Optional Forms of Pension

Section 6.01 General 

The normal form of pension for a married Participant is a Husband-and-Wife Pension, and the normal form of pension for an unmarried Participant is a Lifetime Pension.  The Husband-and-Wife Pension provides a lifetime pension for a married Participant plus a lifetime pension for his or her surviving spouse, starting after the death of the Participant.  The monthly amount to be paid to the surviving spouse is one-half the monthly amount paid to the Participant.  When a Husband-and-Wife Pension is in effect, the monthly amount of the Participant’s pension is reduced in accordance with the provisions of Section 6.04 from the full amount otherwise payable.  The Lifetime Pension provides a pension for the life of the Participant and ceases with the Participant’s death. 

Section 6.02 Upon Retirement

(a)               Except as provided in paragraph (d) below, all pensions shall be paid in the form of a Husband-and-Wife Pension for a married Participant, or in the form of a Lifetime Pension to an unmarried Participant, unless the Participant has filed with the Trustees in writing a timely rejection of that form of pension, subject to all of the conditions of this Section.  In no event shall rejection of a Husband-and-Wife Pension, a Husband-and-Wife Pension with the Level Income Option under Section 6.10, or a 100% Husband-and-Wife Option under Section 6.11 by a Participant be effective unless (i) the spouse of the Participant has consented in writing to such rejection; (ii) if applicable, the rejection designates a specific alternate beneficiary, including any class of beneficiaries or any contingent beneficiaries, which may not be changed without spousal consent, unless the spouse expressly permits designations by the Participant without any further spousal consent; (iii) the spouse’s consent acknowledges the effect of the election; and (iv) the spouse’s consent is witnessed by a notary public.  Also, a Participant’s rejection of the Husband-and-Wife Pension shall not be effective unless the election designates a form of benefit payment which may not be changed without spousal consent, unless the spouse expressly permits designations by the Participant without any further spousal consent.  Notwithstanding the foregoing, no spousal consent shall be required if it is established to the satisfaction of the Trustees that there is no spouse or the spouse cannot be located.  If the spouse is legally incompetent to give consent, the spouse’s legal guardian may give consent, even if the guardian is the Participant.  Also, if the Participant is legally separated or the Participant has been abandoned by the spouse (within the meaning of local law) and the Participant has a court order to such effect, spousal consent is not required unless a qualified domestic relations order provides otherwise.

(b)               Time for Providing the Written Explanation of the Husband-and-Wife Pension and the Lifetime Pension

(1)      A Participant and his or her spouse shall be given a written explanation of the Husband-and-Wife Pension (or, in the case of an unmarried Participant, a Lifetime Pension) no less than 30 days and no more than 90 days before the first day of the month for which a pension first becomes payable, which shall include a description of:  (i) the terms and conditions of the Husband-and-Wife Pension (or, in the case of an unmarried Participant, a Lifetime Pension); (ii) the Participant’s right to make and the effect of a rejection of the Husband-and-Wife Pension (or, in the case of an unmarried Participant, a Lifetime Pension); (iii) the rights of a Participant’s spouse with respect to a Husband-and-Wife Pension; (iv) the right to make, and the effect of, a revocation of a previous rejection of the Husband-and-Wife Pension (or, in the case of an unmarried Participant, a Lifetime Pension); and (v) the relative values of the various optional forms of benefit under the Plan.  A Participant and his spouse may, in accordance with Section 6.02(a) above, elect to reject the Husband-and-Wife Pension (or revoke a previous rejection) at any time within 90 days before the Effective Date of Pension (i.e., within 90 days before the first day of the month for which a pension first becomes payable), and an unmarried Participant may elect in writing to reject the Lifetime Pension (or revoke a previous rejection) at any time within the 90 days before the Effective Date of Pension (i.e., within 90 days before the first day of the month for which a pension first becomes payable).

(2)      Effective for distributions on or after September 22, 1995, the Effective Date of Pension may be less than 30 days after the written explanation that is described in Section 6.02(b)(1) is provided to the Participant, provided that the Participant is given written information that indicates:  (i) that the Participant had at least 30 days to consider whether to waive the Husband-and-Wife Pension (or, in the case of an unmarried Participant, a Lifetime Pension); (ii) that the Participant is permitted to revoke a distribution election until the Effective Date of Pension, or, if later, at any time before the end of the seven-day period that begins the day after the written explanation that is described in Section 6.02(b)(1) is provided to the Participant; and (iii) distribution in accordance with the Participant’s affirmative election is not made before the end of the seven-day period that begins the day after the explanation that is described in the preceding paragraph is provided to the Participant.

(3)      Notwithstanding the foregoing provisions of this Section, effective for distributions beginning after December 31, 1996, the written explanation described in Section 6.02(b)(1) may be provided after the Effective Date of Pension, provided that:

(i) the period for a Participant and his spouse to elect to reject the Husband-and-Wife Pension (or, in the case of an unmarried Participant, for the Participant to elect to reject the Lifetime Pension) is no less than 30 days before pension benefits are first paid, unless the Participant and the Participant’s spouse (or, in the case of an unmarried Participant, just the Participant) elect to waive the requirement that the written explanation described in 6.02(b)(1) be provided at least 30 days before the first day of the month for which the pension first becomes payable, provided that the distribution election is revocable for 7 days or, if later, until the date that pension benefits are first paid, and the pension payments do not begin earlier than 8 days after such explanation is provided; and

(ii) for distributions beginning after December 31, 2003, in the event that the amount of survivor benefit payable to the spouse upon the Effective Date of Pension is less than the amount that would have been payable had the distribution begun after the written explanation described in section 6.02(b)(2), then the spouse must consent in writing to the Effective Date of Pension in the same manner and form as provided in 6.02(a) for the rejection of a Husband and Wife Pension.

(c)               If benefit payments are suspended in accordance with Section 8.06 for an Employee who continues in service without separation and who does not receive a benefit payment, this Section 6.02 shall apply upon the commencement of a pension after the period of suspension.

(d)               Notwithstanding anything in this Article 6 to the contrary, if the Actuarial Equivalent of a Participant’s nonforfeitable Accrued Benefit, as determined under Section 8.05(b), does not exceed the “applicable amount” described in Section 8.05(b)(1) as of the first day of the month for which a pension first becomes payable, the notice and spousal consent and other requirements of this Article 6 shall not apply, and the Participant’s benefit shall be paid in accordance with Section 8.05(b)(1).

(e)               If the Participant and spouse elect to reject the Husband-and-Wife Pension in accordance with this Section 6.02, the Participant may elect to receive a Lifetime Pension.

Section 6.03 Death of an Eligible Employee Before Retirement (Pre-Retirement Annuity)

(a)               Unless the election under paragraph (d) is made, if a Participant dies at a time when he has attained Vested Status under Section 8.07, and after completing one (1) or more Hours of Work after August 22, 1984, the Participant’s surviving spouse shall be entitled to a survivor’s pension.

(b)               Subject to the provisions of 16.07 and 8.05(a)(5), as, applicable, if the Participant’s death occurs after attainment of his earliest retirement age his spouse shall be paid a survivor’s pension as if the Participant had retired on a Husband-and-Wife Pension on the day before his death.  If the Participant’s death occurs before attainment of his earliest retirement age, his spouse shall be paid a survivor’s pension commencing with the month in which the Participant would have attained his earliest retirement age had he lived, and the amount of such pension shall be determined as if the Participant had left Covered Employment on the date of death, retired on a Husband-and-Wife Pension upon reaching his earliest retirement age, and died on the last day of the month in which earliest retirement age was reached.

(c)               This Section shall also apply to an inactive Participant who has met the requirements for a Normal Retirement Pension or Early Retirement Pension (i.e., has attained Vested Status under Section 8.07), had one or more Hours of Work on or after January 1, 1976 and dies after August 22, 1984.

(d)               Effective for benefits effective on or after August 1, 2005, the surviving spouse of a deceased Participant may waive the survivor’s benefit under this Section 6.03 and elect instead to receive the Death Benefit provided under Section 7.01 if the Participant had met the eligibility requirements for a Death Benefit and notwithstanding any designation of Beneficiary in accordance with section 7.01.  However, in no event shall the Death Benefit payable to such surviving spouse be less than the Actuarial Equivalent of the survivor’s benefit otherwise payable under this Section 6.03.

(e)               If a disabled Participant applies for a Disability Benefit under Article 16 and then dies prior to satisfaction of the six-month waiting period under Section 16.05 and death is related to the disability for which the Participant applied for benefits, the Participant's surviving spouse is entitled to a pre-retirement spousal benefit.  The spouse's lifetime benefit shall be calculated as one-half of what the Participant would have received under a Full Disability Husband-and-Wife Benefit, payable one month after the Participant's death.  The surviving spouse may not elect to receive the Death Benefit as provided for in Section 6.03(d) above.

(f)                 The surviving spouse of a deceased Participant may elect to defer commencement of the survivor benefit otherwise payable under this Section until a date not later than the date the Participant would have attained Normal Retirement Age.

Section 6.04 Adjustment of Pension Amount

Any pension or Disability Benefit which becomes effective on August 1, 1983 or later, shall be adjusted for the Husband-and-Wife Pension by multiplying the full amount otherwise payable by the following factors:

(a)               Disability Pensions ¾ 82% plus .4% for each full year that the spouse’s age is greater than the Participant’s age or minus .4% for each full year that the spouse’s age is less than the Participant’s age with a maximum factor of 99%.

(b)               All Other Pensions ¾ 90% plus .4% for each full year that the spouse’s age is greater than the Participant’s age or minus .4% for each full year that the spouse’s age is less than the Participant’s age with a maximum factor of 99%.

Section 6.05 Additional Conditions

(a)               A Husband-and-Wife Pension shall not be effective under any of the following circumstances:

(1)      The Participant and spouse were not married to each other on the Participant’s Effective Date of Pension.  The Trustees shall be entitled to rely on a written representation last filed by the Participant before his Effective Date of Pension as to whether he or she is married.  If such representation later proves to be false, the Trustees may adjust for any excess benefits paid as a result of the misrepresentation.

(2)      The spouse died before the Participant’s Effective Date of Pension.

(3)      The present value of the Participant’s non-forfeitable Accrued Benefit, as determined under Section 6.02(d), does not exceed the “applicable amount” described in Section 8.05(b).

(b)             Election or rejection of a Husband-and-Wife Pension (or, in the case of an unmarried Participant, a Lifetime Pension) may not be made or altered after a Participant’s Effective Date of Pension, except as specifically provided for in Section 6.02(b)(3).

Section 6.06 Continuation of the Husband-and-Wife Pension

(a)               The monthly amount of the Husband-and-Wife Pension, once it becomes payable, shall not be increased if the spouse is subsequently divorced from the Pensioner.

(b)               The Husband-and-Wife Pension is payable for the lifetime of the Pensioner and the surviving spouse to whom the Pensioner was married on his Effective Date of Pension and cannot be terminated on remarriage.

Section 6.07 Coordination with 60 Certain Payments

If the surviving spouse of a Pensioner eligible for benefits under Section 7.02, who is receiving benefits under a non-disability Husband-and-Wife Pension dies before the total payments made to the Pensioner and spouse equal 60 times the amount of the pension the Participant had been entitled to before reduction for the Husband-and-Wife Pension, the difference shall be paid to the Pensioner’s designated Beneficiary or Beneficiaries either in equal monthly payments or as a lump sum, as the Beneficiary or Beneficiaries elect(s).  If no Beneficiary has been named or if the last named Beneficiary has predeceased the Pensioner or spouse, payment shall be made to the executor or administrator of the Pensioner’s estate. 

Section 6.08 Reversion

(a)        If a Participant’s Effective Date of Pension is on or after March 1, 1999 and the spouse predeceases the Pensioner while the Pensioner is receiving a Husband-and-Wife Pension (which is not based on a Disability Benefit) pursuant to Section 6.02, the Husband-and-Wife Pension shall cease to be effective as of the date of the spouse’s death.  After that date, the monthly amount of the Participant’s pension shall increase to the monthly amount that would have been payable had the Pensioner and his spouse waived the Husband-and-Wife Pension at the time of his retirement without electing any optional form of pension (other than a Level Income Option, if such option was elected).

(b)        If the Participant’s Effective Date of Pension was prior to March 1, 1999, the monthly amount of the Husband-and-Wife Pension, once it becomes payable, shall not be increased if the spouse predeceases the Pensioner, unless the Participant had elected the reversion option described in Section 6.09 of the Plan as in effect prior to March 1, 1999 in a timely manner. 

Section 6.09 120 Certain Payments Option

(a)               A Participant may elect to have his monthly benefit actuarially reduced so that if he dies on or after his Effective Date of Pension, and before receiving 120 monthly pension payments, his designated primary and successor Beneficiaries will continue to receive the same monthly benefit until the monthly payments to both the Pensioner and his designated Beneficiaries total 120.

(b)               The 120 Certain Payments Option under this Section is subject to the following conditions:

(1)               This option must be selected by the Participant on the form provided for this purpose by the Trustees;

(2)               This option is available only to Participants with at least 10 Years of Service (for vesting purposes) or 10 years of Pension Credit who are approved for a Normal Retirement Pension, an Early Retirement Pension,  a Special Early Retirement Pension, or, effective August 1, 2001, a 55/30 Pension.

(3)               Once this option is elected, it cannot be revoked after the Participant’s Effective Date of Pension, except as provided in Section 6.02(b)(3); and

(4)               This option is in substitution for the 60 Certain Payments provided in Section 7.02.

(c)               If this option is elected, the Pension which would otherwise be payable as a Lifetime Pension under Section 6.02 shall be adjusted by multiplying the amount by the following factors:

(d)               If no Beneficiary has been named, or if the last named Beneficiary has predeceased the Pensioner or dies before 120 payments have been made, any remaining payments shall be made to the executor or administrator of the Pensioner’s estate and may be paid as an actuarially equivalent lump sum.

Section 6.10 Level Income Option

(a)               A Participant who has attained age 55, has at least 10 Years of Service (for vesting purposes) or 10 years of Pension Credit, who is retired on an Early Retirement Pension, a Special Early Retirement Pension, or, effective August 1, 2001, a 55/30 Pension, and whose benefit is paid in the form of a Husband-and-Wife Pension or a Lifetime Pension, may elect to have his benefit actuarially adjusted so that he may receive a pension benefit in a higher amount payable up to and including the month following his 62^nd or 65^th birthday and a reduced amount thereafter.  The purpose of such election is to enable the Participant to receive an approximately level monthly income for life together with the primary Social Security benefits, subject to the following:

(1)               This option must be elected by the Participant on the form provided for this purpose by the Trustees.

(2)               If the Level Income Option pension amount from the Plan commencing upon attainment of age 62 or 65 would be less than $15 a month, the Participant shall not have the right to elect this Option.

(3)               If the Level Income Option is elected, it cannot be revoked after the Participant’s Effective Date of Pension, except as provided in Section 6.02(b)(3). 

(b)               When a Participant has elected the Level Income Option, the monthly amount payable to him before age 62 or age 65 shall be increased by the following factors for each $1.00 by which the monthly benefit will be reduced after age 62 or age 65.