BENEFITS INFORMATION AND RELATIVE VALUE DISCLOSURE
BENEFITS
Normal Pension:
Minimum age 65 with 5 years of Service Credit
(10 years of Service Credit required if your coverage ended before January
1, 1989). Once you accrue the stated amount of Service Credit, you
are vested and cannot lose your right to a pension.
Early Pension:
Minimum age 60 with 20 years of Service Credit
(25 years of Service Credit required if your employment by a Contributing
Employer ended before January 1, 1993). Pension amount is permanently
reduced based on your age on the effective date, because payments are expected
to be made for a longer period of time.
Disability Pension:
No minimum age; you must have a Social
Security Disability Award, 10 years of actual Service Credit and a contribution
for covered employment must have been made within 3 calendar years preceding
your entitlement date to Social Security Disability Pension. For
Disability Pensions commencing on or after January 1, 2003, the amount
is permanently reduced based on your age on the effective date, using the
same reduction factors as for Early Pension between ages 60 and 65.
If you are younger than 60, your Disability Pension is reduced as if you
were age 60. Options A and C are not available.
Lump Sum Disability Benefit:
If you are in receipt of a Social Security Disability
Award and vested, but not immediately eligible to receive any pension described
above, you may be eligible for a lump sum equal to total contributions
credited on your behalf (or 36 times the Normal Pension amount, if greater).
If you are immediately eligible for a pension but not yet receiving one,
you can still qualify for a lump sum if you submit two physicians' written
statements that your disability will result in death within one year of
the date of your application.
Death Benefit:
If you die before receiving pension and have
at least $250 contributed on your behalf, a lump sum death benefit equal
to total contributions credited on your behalf (or 36 times the Normal
Pension amount, if greater) will be paid to your beneficiary. If
you are married at the time of death, your spouse will have the choice
of a lump sum or a monthly Option B survivor pension.
Withdrawal Benefit:
If you do not earn enough Service Credit to qualify
for a Normal Pension, you may be eligible for a lump sum withdrawal benefit,
based on the total contributions, after you have incurred a break in service.
APPLYING FOR PENSION
When you are ready to apply for pension, you may write, call or fax the Plan Office for estimates and an Application for Pension. In order to prepare estimates, we will need your social security number, proposed retirement date and your spouse's date of birth if you are married. The toll free phone number is 1-877-429-2488.
You need to sign the application before the month you want your pension to begin, but no earlier than 90 days before the pension start date. You will also need to send proof of your age with the application. The Plan Office will accept a legible copy of your birth certificate, baptismal certificate or passport. In lieu of the above, you may submit a letter obtained from your Social Security Office indicating the date of birth they have established for you.
If you are applying for a Disability Pension, you need to send a copy of your Social Security Notice of Disability Award.
You will be asked to select a form of pension payment on the application. All four choices have approximately the same actuarial value. You should choose the option which best fits your circumstances. Some factors to consider are: your current health and the health of your spouse, your retirement income needs and other income sources, your life insurance coverage, your tax situation, and the person you and your spouse would want to receive benefits, if any, after your death. If you are married and do not select Option A or B, your spouse must consent in writing on a Selection & Spouse Consent form that will be sent to you. You designate your beneficiary(ies) on the Spouse Consent form or, if you are not married, on a separate Designation of Beneficiary form that will be sent to you.
If you are married, you have four choices of payment. The Sole Pension and Option C provide monthly pension payments for your lifetime. If you die before receiving guaranteed minimum payments, the remaining payments will be made to the person(s) you designate. Options A and B are options which cover two lives--yours and your spouse's after your death (payments continue until the last one dies). Options A and B offer the potential for payments over a longer period of time, so the monthly amounts are actuarially reduced. However, there is no minimum number of payments guaranteed. If you select Option A or B, a copy of your marriage certificate and your spouse's birth certificate will be needed.
If you are not married, you have two choices of payment: Sole Pension or Option C. Each provides a pension for your lifetime. If you die before receiving guaranteed minimum payments, the remaining payments will be made to the person(s) you designate.
FORMS OF MONTHLY PENSION PAYMENT AVAILABLE
Sole Pension:
Maximum pension amount. Provides monthly
pension for your lifetime, but in the event you die before receiving
60 monthly payments (5 year minimum guarantee), any remaining guaranteed
payments will be made to your beneficiary(ies).
Option A:
Actuarially reduced* pension amount based on
your age and the age of your spouse. Reduced pension is paid during
your lifetime. Upon your death, 100% of the monthly amount
will be paid to your eligible surviving spouse for life. The eligible
surviving spouse is the person married to you when payments begin. Once
payments begin, if your spouse dies, you will continue to receive the same
reduced pension amount for your lifetime, and payments end with your death.
This option does not have a minimum guarantee.
Option B:
Actuarially reduced* pension amount based on
your age and the age of your spouse. Reduced pension is paid during
your lifetime. Upon your death, 50% of the monthly amount
will be paid to your eligible surviving spouse for life. The eligible
surviving spouse is the person married to you when payments begin. Once
payments begin, if your spouse dies, you will continue to receive the same
reduced pension amount for your lifetime, and payments end with your death.
This option does not have a minimum guarantee.
Option C:
Actuarially reduced* pension amount based on
your age, to provide an extended period of guaranteed minimum payments.
Provides monthly pension for your lifetime, but in the event
you die before receiving 120 monthly payments (10 year minimum guarantee),
any remaining guaranteed payments will be made to the person you designate.
ALL PENSIONS ARE PAYABLE FOR YOUR LIFETIME. AFTER YOUR PENSION BEGINS, YOU CANNOT CHANGE THE FORM OF PAYMENT.
*The term "actuarially reduced" used under Options
A, B and C means those pension amounts are less than the Sole Pension form
of payment in order to provide an additional continuing benefit after your
death. When either Option A or B is chosen, it is reduced to provide
a lifetime pension for you, followed by a lifetime survivor benefit for
your spouse. The amount of reduction is based on the age difference
between you and your spouse. The reduction for Option A is somewhat
more than Option B, because Option A provides a greater benefit to your
spouse. Option C provides a lifetime pension for you, and doubles
the guaranteed minimum number of payments provided by the Sole Pension.
The "actuarial reduction" under Option C is based only on your age, without
regard to the person you designate to receive any remaining guaranteed
benefits.
RELATIVE VALUE DISCLOSURE
Relative Value of Pension Payment Options (Sole
vs. Options A, B & C):
IRS regulations require plans such as ours to
give retiring participants a comparison of the relative values of the benefit
payment options generally available under the plan. The goal is to
help you make an informed choice about the form in which you receive your
retirement benefits. Under this Pension Plan, all of the pension
payment options generally available to retiring participants have approximately
the same relative value as the normal form. This is true
for single participants retiring between ages 60 and 70. It is also
true for married participants between ages 60 and 70 with a spouse up to
10 years younger or older and for disabled participants retiring between
ages 30 and 65 with a spouse up to 10 years younger or older. This
conclusion is based on the valuation and reporting methodologies described
in the IRS regulation, which can be found at Treas. Reg. section 1.417(a)(3)-1.
Upon your written request to the Plan Office, we will give you a similar
comparison based on your own age and estimated benefits, and on the payment
forms for which you are eligible. We will also provide details of
the actuarial assumptions used to make the comparison.
What is the Relative Value Under our Plan and
How Was It Determined?
For single participants, the "relative values"
are based on comparing the actuarial value of Option C (10-year guarantee)
to the actuarial value of the Sole Pension (5-year guarantee).
For married participants, the "relative values" are based on comparing the actuarial values of the pension payment options to the actuarial value of the 50% Husband and Wife Pension (Option B).
Actuarial values of pension benefits are determined using:
What Happens if I Postpone the Start of my Pension?
If you are retired and eligible for an Early
Pension, the pension amount will be reduced for each month you are
younger than age 65. Deferring the start of your pension will increase
the amount based on the Age Reduction Factors in the Summary Plan Description.
If you are eligible for a Normal Pension
(age 65 and retired from the industry), your pension amount can increase
by 1% for each month you defer the start of your pension.
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