Pension Plan Document PDF (355 KB)

    

Article IV, Section 4

Section 4. Optional Forms of Benefit.

1. A Participant in lieu of his normal, late or early retirement benefit, whichever is applicable, and including his screen credit benefit where applicable, shall be entitled to select one of the following optional forms of benefit:
   
   
   1. A benefit payable for the Participant's life, provided that a minimum of sixty (60) monthly payments will be paid to the Participant or his Beneficiary.
      
      
   2. A benefit payable for the Participant's life, provided that a minimum of 120 monthly payments will be paid to the Participant or his Beneficiary. This optional form of benefit shall provide a reduced monthly benefit payable to the Participant and the Beneficiary. The amount of the reduced benefit shall be determined by multiplying the monthly retirement benefit otherwise payable by the appropriate percentage for the Participant's age at retirement in accordance with the following table.
      
      

      Age of Participant at Retirement	Percentage
      52	98.5%
      53	98.4
      54	98.2
      55	98.0
      56	97.8
      57	97.6
      58	97.3
      59	97.0
      60	96.7
      61	96.3
      62	95.9
      63	95.4
      64	94.8
      65	94.2
      66	93.6
      67	92.9
      68	92.1
      69	91.3
      70	90.5
      71	89.6
      72	88.6
      73	87.6
      74	86.5
      75	85.3

      
      
      
   3. A benefit in the form of a joint and survivor annuity under which the benefit will be paid to the Participant and a designated joint annuitant for the life of the survivor, the benefit to be payable to the joint annuitant after the death of the Participant to be in an amount which may be 50%, 66-2/3%, 75% or 100% of the benefit paid during the Participant's lifetime; provided that if the Beneficiary is not the Participant's spouse, an election of one of these options will not be valid unless it complies with Article IV, Section 5(a) of this Plan. This option is canceled in the event that the Participant's designated joint annuitant dies prior to the Participant's retirement. Article V, Section 5 describes what happens if the Participant dies after electing this option but prior to retirement.
      
      This optional form of benefit shall provide a reduced monthly benefit payable to the Participant, determined by multiplying the monthly retirement benefit otherwise payable by the appropriate percentage as follows:
      
      
      1. 50% joint and survivor annuity. 90.0% minus .4% for each year the joint annuitant is younger than the Participant or plus .4% for each year the joint annuitant is older than that Participant, with a maximum of 100.0%.
         
         
      2. 66-2/3% joint and survivor annuity. 87.0% minus .5% for each year the joint annuitant is younger than the Participant or plus .5% for each year the joint annuitant is older than the Participant, with a maximum of 100.0%.
         
         
      3. 75% joint and survivor annuity. 85.5% minus .65% for each year the joint annuitant is younger than the Participant or plus .65% for each year the joint annuitant is older than the Participant, with a maximum of 100.0%.
         
         
      4. 100% joint and survivor annuity. 81.0% minus .7% for each year the joint annuitant is younger than the Participant or plus .7% for each year the joint annuitant is older than the Participant, with a maximum of 100.0%
         
         
   1. With respect to Participants who retire on an Early Retirement Date, a benefit in the form of a Social Security adjustment benefit under which the monthly payments from this Plan prior to the expected commencement date of the Participant's Social Security benefit (at age 62 or 65) will as nearly as possible equal the total of (1) the monthly Early Retirement Benefit that would be paid if the life annuity (with a 60 month minimum) were elected, and (2) the Participant's Social Security benefit after the expected commencement date of the Participant's Social Security benefit. The amount of monthly benefit payable from this Plan beginning at the expected commencement date of the Participant's Social Security benefit is set forth in (C) below.
      
      
   2. The amount of the monthly benefit payable from this Plan under this optional form of benefit prior to the expected commencement date of the Participant's Social Security Benefit is determined as follows:
      
      
      1. Multiply the estimated Social Security benefit payable to the Participant at the expected commencement date of his Social Security benefit by the factor for the Participant's age on his retirement date in accordance with the following table.
         
         

         Age of Participant On Effective Date	Factor
         	Social Security Payable at 62	Social Security Payable at 65
         52	.3886	.2810
         53	.4241	.3066
         54	.4635	.3351
         55	.5071	.3670
         56	.5558	.4022
         57	.6101	.4414
         58	.6708	.4853
         59	.7390	.5346
         60	.8156	.5900
         61	.9021	.6525
         62	-	.7232
         63	-	.8035
         64	-	.8951

         
         
         The factor in the above table shall be replaced by the corresponding factor based on the interest and mortality assumptions specified in Article IV, Section 11(c) and 11(d), if the latter factor produces a greater benefit. Months as well as years of attained age shall be taken into account, and the factor for each month in excess of an attained age shall be interpolated from the table.
         
         
      2. Add the product determined in (i) above to the monthly benefit otherwise payable from the Plan if the life annuity (with a 60 month minimum) were elected.
         
         
   3. The amount of monthly benefit payable from this Plan beginning at the expected commencement date of the Participant's Social Security benefit is determined by subtracting the estimated Social Security benefit from the increased benefit determined in (B)(ii) above. If the amount calculated in this subsection (C) is less than zero, this option is not available.
      
      

   A benefit in the form of a joint and survivor annuity with a pop-up option under which the benefit will be paid to the Participant and a designated joint annuitant for the life of the survivor, the benefit to be payable to the joint annuitant after the death of the Participant to be in an amount which may be 50%, 66-2/3%, 75% or 100% of the benefit paid during the Participant's lifetime. However, if the joint annuitant predeceases the Participant, then, commencing on the first day of the month following the month in which such death occurs, the monthly amount payable to the Participant shall be increased so as to equal the monthly pension which would have been payable had the Participant elected the normal form of benefit specified in Article IV, Section 1(b) at the time the Participant retired. Such increased monthly amount shall be payable for the lifetime of the Participant, and shall cease upon the Participant's death.
   
   If the Beneficiary is not the Participant's spouse, an election of one of these options will not be valid unless it complies with Article IV, Section 5(a) of this Plan. This option is canceled in the event that the Participant's designated joint annuitant dies prior to the Participant's retirement.
   
   This optional form of benefit shall provide a reduced monthly benefit payable to the Participant, determined by multiplying the monthly retirement benefit otherwise payable by the appropriate percentage as follows:

   1. 50% joint and survivor annuity with pop-up. 89.0% minus .4% for each year the joint annuitant is younger than the Participant or plus .4% for each year the joint annuitant is older than the Participant, with a maximum of 100.0%.
      
      
   2. 66-2/3% joint and survivor annuity with pop-up. 86.0% minus .5% for each year the joint annuitant is younger than the Participant or plus .5% for each year the joint annuitant is older than the Participant, with a maximum of 100.0%.
      
      
   3. 75% joint and survivor annuity with pop-up. 84.25% minus .65% for each year the joint annuitant is younger than the Participant or plus .65% for each year the joint annuitant is older than the Participant, with a maximum of 100.0%.
      
      
   4. 100% joint and survivor annuity with pop-up. 79.5% minus .7% for each year the joint annuitant is younger than the Participant or plus .7% for each year the joint annuitant is older than the Participant, with a maximum of 100.0%.
      
      
2. An election under paragraph (2) or (3) of subsection (a) above shall not be operative if the resulting monthly pension to a Participant or his joint annuitant would be less than $10.00 per month.
   
   
3. 1. A Participant may reject the normal form of payment described in Sections 1, 2, 3 and 9 of this Article (or revoke a previous rejection) and elect an optional form of payment, in writing on a form or forms prescribed by the Directors. Any such rejection or revocation must be made during the 180-day period ending on the Annuity Starting Date and is irrevocable on the Annuity Starting Date. Any such election must fulfill such other requirements as may be established by the Directors.
      
      
   2. The Plan shall provide each Participant with a written, nontechnical explanation of the automatic form of payment, the circumstances under which it will be provided, the availability and the relative financial effect of choosing a payment option, a description of how much larger benefits will be if the commencement of distribution is deferred, the Participant's right to make the election described herein, the right of the Participant's spouse to waive the Joint and 50% Survivor Annuity and consent to its rejection, and the right to make, and the effect of a revocation of any election. Such explanation will be provided not less than 30 days nor more than 180 days before the Annuity Starting Date.
      
      
   3. Any written election, rejection or revocation (including any change of a previous choice) made under Article IV, shall not take effect unless (A) the spouse of the Participant at the Annuity Starting Date consents in writing to such election, (B) such election designates a Beneficiary (or a form of benefits) which may not be changed without the consent of the spouse (or the consent of such spouse expressly permits designations by the Participant without any requirement of further consent by the eligible spouse), and (C) the spouse's consent acknowledges the effect of such election and is witnessed by a plan representative or a notary public. Notwithstanding the preceding sentence, no spousal consent shall be required if it is established to the satisfaction of the Directors that spousal consent may not be obtained because there is no spouse, because the spouse cannot be located, or because of such other circumstances as the Internal Revenue Service may by regulations prescribe. In addition, no spousal consent is required if the Participant elects a joint and survivor annuity option under subsection (a)(3) (with his or her spouse as joint annuitant) or a joint and survivor annuity with a pop-up under subsection (a)(5) (with his or her spouse as joint annuitant).
      
      
4. Notwithstanding any other provision of this Plan to the contrary, no "prohibited payment" shall be made during any period in which the Plan has a "liquidity shortfall," as defined in Section 302(e)(5) of ERISA. For this purpose, a "prohibited payment" means (i) any lump sum or other payment in excess of the monthly amount paid as a single life annuity (plus social security supplements described in Section 204(b)(1)(G) of ERISA) to a Participant or Beneficiary whose Annuity Starting Date occurs during the period the Plan has a liquidity shortfall, (ii) any payment for the purchase of an irrevocable commitment from an insurer to pay benefits, and (iii) any other payments specified by the Secretary of the Treasury.