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SUMMARY PLAN DESCRIPTION
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| For Example: |
|
Bob,
who had more than 15 years of Pension Credit, is not married when he
retires at age 65 and begins receiving a pension of $925 per month. Bob
named his sister Mary as his beneficiary. Bob dies three years later after
receiving 36 pension payments from the Plan. Bob’s beneficiary Mary will
receive 24 payments of $925 after Bob’s death. |
50% Husband-and-Wife Pension
The 50% Husband-and-Wife Pension form of payment provides a lifetime pension for you. At your death, your spouse will begin receiving a lifetime pension of 50% of the amount you were receiving before your death. The amount of your benefit is reduced to provide this extra protection for your spouse.
If your spouse dies before you, your Pension will increase to the amount that would have been paid as though you had waived the Husband-and-Wife Pension. However, the increase will not apply to Disability or Industry-Related Disability Pensions paid in the Husband-and-Wife Pension form of payment.
If you are married and you are receiving the Normal Retirement, Early Retirement, Special Early Retirement or 55/30 Pension under the Husband-and-Wife Pension form of payment and you had earned at least 15 years of Pension Credit, the Plan provides you with 60 guaranteed payments. The provision works this way. If you and your spouse die before 60 payments have been made, your designated beneficiary will receive the balance of the amount that would have been paid in 60 monthly installments if you had not elected the Husband-and-Wife Pension.
A "pop
up" feature provides that your pension payments will increase,
or pop up to the amount of the Lifetime Pension if:
|
| For Example: | |
|
Tony, who had more than 15 years of Pension Credit, is married to Alice when he
retires at age 65 and begins receiving a 50% Husband-and-Wife Pension of $875
per month. Tony’s monthly pension before reduction for the Husband-and-Wife
Pension form of payment was $950. Tony named his daughter Andrea as his
beneficiary in the event of both his and his wife’s deaths.
Tony dies two years later after receiving 24 pension payments from the Plan.
Alice begins receiving payments of 50% of the amount Tony was receiving and dies
after receiving 12 payments. Andrea will receive the balance of the payments not
received by Tony and Alice. Andrea will receive monthly payments in the amount
of $950 until Andrea has received a total of $30,744 calculated as follows: |
|
|
60
payments x pension amount without the Husband-and-Wife election (60 x $950) Minus pension payments received by Tony ($875 x 24 payments) Minus pension payments received by Alice ($438 x 12 payments) Total amount paid to Andrea as Beneficiary |
|
To be eligible for the Husband-and-Wife Pension, you and your spouse must be married to each other on the Effective Date of your pension and the present value of your pension must exceed $5,000.
You and your spouse may reject this form of pension if you do so in writing. You may then elect any one of the optional forms of payment described in this booklet. The Pension Benefits Department will provide you with forms to elect or reject the 50% Husband-and-Wife Pension at the time you apply for your pension.
50% Husband-and-Wife Pension Amount
If your pension is paid in the form of a 50% Husband-and-Wife Pension, the following reduction factors will be applied to the amount otherwise payable.
factors will be applied to the amount otherwise payable.
Non-Disability Pensions
Multiply the full amount of the pension otherwise payable by 90% plus 0.4% for each full year that your spouse’s age is greater than your age or minus 0.4% for each full year that your spouse’s age is younger than your age. The maximum factor to be used is 99%.
Disability Pensions
Multiply the full amount of the pension otherwise payable by 82% plus 0.4% for each full year that your spouse’s age is greater than your age or minus 0.4% for each full year that your spouse’s age is younger than your age. The maximum factor to be used is 99%.
| For Example: | |
|
Mark retires
at age 65 and his Normal Retirement Pension is $972 per month. Mark and
his wife Sue decide that they wish to receive his pension as a 50%
Husband-and-Wife Pension. Sue is 3 years younger than Mark. Mark’s 50%
Husband-and-Wife Pension is calculated as follows: |
|
|
Normal
Retirement Pension 90% minus 1.2% (3 x 0.4%) for the 3 years Sue is younger than Mark 50% Husband-and-Wife Pension |
$ 972.00 |
|
If Mark were
receiving a Disability or Industry-Related Disability Pension his 50%
Husband-and-Wife Pension would be calculated as follows: |
|
|
Normal
Retirement Pension 82% minus 1.2% (3 x 0.4%) for the 3 years Sue is younger than Mark 50% Husband-and-Wife Disability Pension |
$ 972.00 |
|
*
Benefit amounts are rounded up to the next highest dollar. |
|
100% Husband-and-Wife Pension
The 100% Husband-and-Wife Pension provides a reduced lifetime pension for you. At your death, your spouse will begin receiving a lifetime pension of 100% of the amount you were receiving before your death. You may choose this form of payment if you retire on a Normal Retirement, Early Retirement, Special Early Retirement or 55/30 Pension.
The amount of your benefit is reduced to provide this extra protection for your spouse. However, if your spouse dies before you, your pension will increase to the amount that would have been paid as though you had waived the Husband-and-Wife Pension.
The same eligibility rules apply to the 100% Husband-and-Wife Pension as are applicable to the 50% Husband-and-Wife Pension.
100% Husband-and-Wife Pension Amount
If your pension is paid in the form of a 100% Husband-and-Wife Pension, the following reduction factors will be applied to the amount otherwise payable.
To calculate the 100% Husband-and-Wife Pension, multiply the full amount of the pension otherwise payable by 84% plus 0.7% for each full year that your spouse’s age is greater than your age or minus 0.7% for each full year that your spouse’s age is younger than your age. The maximum factor to be used is 99%.
| For Example: | |
|
Kevin retires
at age 65 and his Normal Retirement Pension is $1,000 per month. Kevin
and his wife Maureen decide that they wish to receive his pension as a
100% Husband-and-Wife Pension. Maureen is 4 years younger than Kevin.
Kevin’s 100% Husband-and-Wife Pension is calculated as follows: |
|
|
Normal
Retirement Pension 84% minus 2.8% (4 x 0.7%) for the 4 years Maureen is younger than Kevin 100% Husband-and-Wife Pension |
$ 1,000 |
Lifetime Pension with 120 Payments Certain
You are eligible to elect the 120 Certain Payments Option if:
§ You retire with at least 10 Years of Service or 10 years of Pension Credit, and
§ You retire on a Normal Retirement, Early Retirement, Special Early Retirement or 55/30 Pension.
This form of payment provides that you will receive a reduced monthly benefit in return for the guarantee that if you die before receiving a total of 120 payments, your pension will continue to be paid to your designated beneficiary until a total of 120 monthly payments has been made.
Under this form of payment, benefits are paid to you for your lifetime. If you receive 120 or more payments during your lifetime, then nothing is payable to your beneficiary upon your death. However, if you die before you receive 120 monthly payments, your beneficiary will receive the balance of the payments.
You may not choose this form of payment in combination with any other form of benefit. If you choose this form of payment, the 60 guaranteed payments provision will not apply and the Husband-and-Wife Pension must be rejected.
| Your pension benefit will be reduced to pay for this form of payment. |
120 Certain Payments Option Amount
If you elect this form of payment, the amount of the pension payments to which you are otherwise entitled will be reduced based on your age as shown in the following table:
|
Your Age on the Effective Date of
Your Pension |
Factor |
|
55 |
.9780 |
|
56 |
.9756 |
|
57 |
.9730 |
|
58 |
.9700 |
|
59 |
.9666 |
|
60 |
.9627 |
|
61 |
.9584 |
|
62 |
.9535 |
|
63 |
.9480 |
|
64 |
.9419 |
|
65 |
.9352 |
|
66 |
.9279 |
|
67 |
.9202 |
|
68 |
.9120 |
|
69 |
.9034 |
|
70 |
.8943 |
|
71 |
.8846 |
| For Example | |
|
Ken retires
at age 65 and his Normal Retirement Pension is $1,000 per month. Ken is
eligible for and chooses the 120 Certain Payments Option and names his
brother John as his beneficiary. Ken’s pension amount is calculated as
follows: |
|
|
Normal
Retirement Pension Reduction factor for age 65 Ken's Lifetime Pension with 120 Payments Certain Monthly Pension |
$ 1,000 |
|
Ken dies
after receiving 70 payments. Ken’s brother John will receive 50
payments (120 payments less the 70 already received by Ken) in the same
amount that Ken was receiving. *Benefit
amounts are rounded up to the next highest dollar. |
|
Level Income Option
You may choose the Level Income Option form of payment if:
§ You retire with at least 10 Years of Service or 10 years of Pension Credit,
§ You are receiving an Early Retirement, Special Early Retirement or 55/30 Pension, and
§ You are younger than age 65 when you retire.
Level Income Option Amount
The Level Income Option makes it possible for you to retire before age 65 and receive approximately the same monthly income for life after taking into account the estimated Social Security benefits you will receive either at age 62 or age 65. If you elect this form of payment, the monthly pension payable to you before age 62 or age 65 will be increased by multiples of each $1.00 by which the monthly benefit will be reduced after age 62 or age 65. These multiples are reflected in the following table. You are not eligible to elect this form of payment if the pension from the Plan would be less than $15 per month when you reach age 62 or 65.
|
Age
at which Early Retirement Pension is Effective |
Amount
of Increase in Monthly Benefit for each $1.00 Reduction |
|
|
At
Age 62 |
At
Age 65 |
|
|
55 |
.4989 |
.3573 |
|
56 |
.5478 |
.3923 |
|
57 |
.6026 |
.4316 |
|
58 |
.6640 |
.4756 |
|
59 |
.7332 |
.5251 |
|
60 |
.8112 |
.5810 |
|
61 |
.8996 |
.6443 |
|
62 |
-- |
.7162 |
|
63 |
-- |
.7982 |
|
64 |
-- |
.8921 |
| For Example: |
|
Albert retires at age 60 and the amount of his Early Retirement Pension is calculated to be $901. If Albert chooses the Level Income Option, his pension benefits will be coordinated with the estimated Social Security benefits he may be eligible to receive at age 62. Assuming his Social Security benefit at age 62 would be $734 per month, this amount is multiplied by .8112 (the amount for age 60 from the table) which equals $595.42. That amount is added to Albert’s Early Retirement benefit of $901, so that Albert would receive $1,497* per month from the Plan up until age 62. After
Albert reaches age 62 and is able to draw his $734 monthly Social
Security benefit, Albert will receive $763* ($1,497 - $734) per month
from the Plan after age 62. Thus, between Albert's Plan benefit
and estimated Social Security benefit, Albert would receive a combined
level benefit of $1,497* per month beginning at age 60. *
Benefit amounts are rounded up to the next highest dollar. |
Although this section of the Summary Plan Description makes reference to Social Security benefits, the Plan benefits under this Level Income Option are independent of the Social Security benefits provided by the federal government. You should first contact the Social Security Administration to find out the amount of your Social Security benefits before electing to retire on a Level Income Option.
You may elect a 50% Husband-and-Wife Pension with a Level Income Option. If you do so, the amount payable will be determined after the amount of your 50% Husband-and-Wife Pension has been determined. You cannot combine the Level Income Option with any other form of payment, other than the Lifetime Pension or a 50% Husband-and-Wife Pension. There is no 60-month payment guarantee if you elect the Level Income Option.
Small Benefit Payment
If the value of your vested benefit as of your Effective Date is $5,000 or less, it will be paid to you as a single lump sum. When a lump sum payment is made, no additional benefits will be payable from the Plan.
If the value of your vested benefit as of your Effective Date is greater than $5,000, but less than $10,000, you may elect to have the value paid to you in a single lump sum. This payment will be in place of monthly benefit payments under the Plan.
Rollovers
If you receive a small benefit payment that is eligible for a rollover, you may roll over all or part of it to an individual retirement account (IRA) or another qualified plan. If you do not choose to roll over the small benefit payment, federal law requires the Plan to withhold 20% of the total amount as federal income tax withholding.
Beginning Date of Benefits
Unless you elect otherwise, your benefits will begin on the 60th day after the later of the Plan Year in which you:
· Reach Normal Retirement Age, or
· Terminate Covered Employment and retire.
Note that benefits cannot begin until the month after you have filed your application. However, if you reach age 70½ in any calendar year after January 1, 1988, your benefit payments must begin no later than April 1 of the year after the year in which you reach age 70-1/2.
Overpayments
As a Participant or beneficiary, you are only entitled to the amount and form of benefits described in the Plan document, as amended from time to time. If you or any beneficiary receives an overpayment of benefits, the Plan will reduce or offset any future benefits to recover the overpayment, unless other arrangements can be made to the satisfaction of the Board of Trustees for the recovery of the overpayment.