Age At Retirement:

.2669

EXAMPLE #1

You, the Early Pensioner, have 10 Prior Credits and 40 Current Service Credits. You are 53 years old and estimate you will begin receiving $750.00 a month from Social Security at age 65:

10 Prior Credits @ $8.00

$    80.00

40 Current Service Credits @ $50.00

=

+2,000.00

Regular Pension Amount

=

Early % Factor

Early Pension Amount (rounded)

Social Security Amount

Level Income Factor

            Level Income Amount (rounded)

Plus Early Income Pension

Total Level Income Pension until age 65

Level Income Pension

Original Social Security estimate

Difference payable to you at age 65

In this example, $1,040.00 is the pension payable for the rest of your life.  Combined with the $750.00 you should begin to receive from Social Security, your income should remain level at $1,790.00.
                    

EXAMPLE #2

You retire at age 56 with the same credits as in example #1 but estimate you will receive $600.00 a month from Social Security at age 62:

10 Prior Credits @ $80.00

40 Current Service Credits @ $50.00

Regular Pension Amount

Early % Factor

Early Pension Amount (rounded)

Social Security Amount

Level Income Factor

            Level Income Amount (rounded)

Plus Early Pension

Total level income Pension until age 62

At age 62, your total pension amount is reduced by the original Social Security estimate:

Level Income Pension

Original Social Security Estimate

Difference payable to you at age 62

In this example, $1,469.00 is the pension payable for the rest of your life. Combined with the $600.00 you should begin to receive from Social Security, your income should remain level at $2,069.00.

If you elect the Level Income Option, the Husband-and-Wife Option is not available.

All the pensions provided by this Plan are payable in addition to Federal Social Security benefits.  Since Social Security benefits are subject to change by legislation from time to time, you should contact the office of the Social Security Administration to find out the most current retirement benefit information.

DEATH BENEFITS AND THE LEVEL INCOME OPTION

IMPORTANT: Because monthly payments under the Level Income Option are higher than they would otherwise be, death benefits are computed differently.

EXAMPLE #1

Guarantee=

120 Months @ $1,050

=

Payments=

24 months @ $1,050

=

Remaining=

96 months @ $1,050

=

EXAMPLE #2

If the same pensioner had the Level Income Option with a level income addition of $329.00 a month, the death benefits would be figured as follows:

24 months @$1,379

($1,050 + $329)

96 months

The remaining guarantee amount would be divided by the remaining number of months and a new monthly amount would be determined.  In this case, $968.00 per month would be paid to the spouse or beneficiary for the remainder of the guarantee period (96 months).

All Pensions will be paid in the form of a Husband-and-Wife Pension UNLESS you and you spouse elect not to receive the pension in that form.

Under the Husband-and-Wife Pension, you will receive a reduced monthly pension benefit during your lifetime and, upon your death, your surviving legal spouse, if any, will receive one-half (50%) of that reduced monthly pension benefit for the rest of his/her life.

The amount of reduction in the monthly benefit payable depends upon the participant's age and the age of his spouse on the effective date of the pension.

If you have elected the Husband-and-Wife Pension, you cannot also receive the 120-payment guarantee benefit.

IMPORTANT RULES FOR THE PAYMENT OF THE HUSBAND-AND-WIFE PENSION

• The Husband-and-Wife Pension protects only the spouse LEGALLY MARRIED to the participant for a minimum of one year prior to retirement.

• If the spouse dies before the retired participant, all pension benefits stop on the death of the retired participant, subject to the 36-month guarantee described below.

• Benefits may not be payable to a spouse whose marriage is legally terminated from the participant at the time he retires or dies.

• Monthly pension benefits to the retired participant will not be increased after payments begin, if the spouse dies or if their marriage is legally terminated.

• Payments to the surviving spouse are for her lifetime.  They do not stop even if she remarries.

• The lump-sum retirement benefit is NOT paid in one lump-sum.  Instead, the amount is pro-rated and a portion is added to your monthly pension benefit each month.

After both the participant and the spouse have died, all benefit payments end unless fewer than 36 monthly payments were made to the retiree and spouse.  In such cases the balance of 36 payments is paid to the beneficiary or heirs of the deceased participants.

The decision to accept or reject the Husband-and-Wife Pension is an important one.  The Fund Office will help you calculate the benefits both ways so that you can decide how you want your pension paid.  Once pension payments have begun, no changes can be made.

HOW IS A HUSBAND-AND-WIFE PENSION PAID?

Husband-and-Wife Pensions are paid using a formula which reduces the Regular Pension amount based upon the ages of the participant and spouse for Regular, Service and Early Pensions.  The monthly amount otherwise payable is multiplied by 94% minus 1/2 of 1% for each year the spouse's age is less than the participant's age or plus 1/2 of 1% for each year the spouse's age is greater than the participant's (but no more than 100%).  For example:

You will receive $2,178 per month for your lifetime.  At your death, your spouse will receive 50%, or $1,089, per month for his/her lifetime.

You will receive $2,260 per month for your lifetime.  At your death, your spouse will receive 
50%, or $1,130, per month for his/her lifetime.

You will receive $1,560 per month for your lifetime.  At your death, your spouse will receive 
50%, or $780, per month for his/her lifetime.

You will receive $1,577 per month for your lifetime.  At your death, your spouse will receive 50%, or $789, per month for his/her lifetime.

NOTE:  With an Early Pension, the Husband-and-Wife Pension is reduced by both Early and Husband-and-Wife factors.

For DISABILITY Pensions, the monthly pension otherwise payable is multiplied by 91.5% minus 4/10 of 1% for each year the spouse's age is less than the participant's age or plus 4/10 of 1% for each year the spouse's age is greater than the participant's (but no more than 100%).  For example:

You will receive $2,191 per month for your lifetime.  At your death, your spouse will receive 50%, or $1,096, per month for his/her lifetime.

You will receive $2,070 per month for your lifetime.  At your death, your spouse will receive 50%, or $1,035, per month for his/her lifetime.

Note that with Disability Pensions, if the Disability Pensioner is younger than age 45 at death, the Husband-and-Wife benefits are not payable to the spouse until the deceased pensioner would have reached age 45.  Therefore, an additional .5% is added to the percentage determined above for each year the Disability Pensioner is younger than 45 on the effective date of his Disability Pension.