Payment Options

Married Participants:

If you are married when you retire, you may choose from any of the following payment options:

(a) Straight Life Annuity – the Plan will pay you a monthly benefit for your lifetime only. Electing this option will require the consent of your spouse.

(b) 100% Joint and Survivor Annuity – the Plan will pay you a reduced benefit for your lifetime, and after your death, the Plan will pay your surviving spouse the same amount it was paying you.

(c) 75% Joint and Survivor Annuity – the Plan will pay you a reduced benefit for your lifetime, and after your death, the Plan will pay your surviving spouse 75% of the amount it was paying you.

(d) 50% Joint and Survivor Annuity – the Plan will pay you a reduced benefit for your lifetime, and after your death, the Plan will pay your surviving spouse 50% of the amount it was paying you.

(e) Single Sum Payment – the Plan will pay you a lump sum amount that is the actuarial equivalent of your Straight Life Annuity. Electing this option also requires your spouse’s consent. The single sum payment may be rolled over to an individual retirement arrangement (IRA) or another qualified plan to defer current liability for Federal and most state taxes. If you elect a single sum payment, your distribution can be taken in 2 ways:

(1) a Direct Rollover means that your distribution will be paid to the IRA account you have established and no income tax will be withheld from you distribution.

(2) Payment To You means that the Plan will distribute a check payable to you for the amount of your benefit, but the Fund is required to withhold 20% of your distribution in Federal income tax.

You should consult with your tax advisor regarding the tax consequences of receiving a single sum payment.

The Plan also offers a "pop-up" feature on each of the joint and survivor options. If you elect this feature, your monthly annuity is reduced by an additional amount, but if your spouse dies before you, your benefit "pops-up" to the straight life amount which would have been paid to you if you had not elected the Joint and Survivor benefit form.

If you retire on a Regular or Early Pension and elect any of the monthly payment options, you will receive a 120 month payment guarantee. This means that if you die before receiving at least 120 monthly payments, your spouse or other beneficiary will receive payments in the amount you were receiving for the rest of the 120-month period so that at least 120 total payments are made on your account. Your benefit is not reduced to pay for this guarantee.

Spousal Consent:

Under Federal law, a married participant is required to elect a payment form which provides a 50% survivor annuity for his spouse. If you elect a benefit that does not provide for at least this minimum protection, you must obtain your spouse’s consent for your election. If you do not make an election, your benefit will be paid in the 50% Joint and Survivor form, and after your death, the Plan will pay your surviving spouse 50% of the amount it was paying you.

Divorced Participants:

A Qualified Domestic Relations Order ("QDRO") can require the Plan to pay part or all of your pension benefits to a former spouse or other dependent. If you are divorced, your pension benefits may be affected if a QDRO is issued to the Plan. The Fund Office will need to review any decrees, agreements or orders relating to your marital situation to determine if they affect the payment of your benefits.

Single Participants:

If you are single when you retire, you may elect either the Straight Life Annuity, with the 120 payment guarantee, or the Single Sum Payment option, both of which are described above.

Disability Pensions:

If you are applying for pension benefits due to a disability, your benefit will be calculated as though you have reached age 60. You will have the option of selecting any of the payment forms described above, subject to the Spousal consent requirements if you are married.

Although your basic benefit will be calculated as though you are age 60, if you elect the single sum payment, your payment will be determined using the actuarial tables for disabled participants and an actuarial reduction to reflect your actual age.

If you elect the monthly benefit, you will continue to receive payments as long as you are entitled to Social Security Disability Payments. If you recover from your disability, your disability benefit will cease. In any event, you will be asked to provide proof of your continuing disability on a periodic basis.

Reduction Of Benefit Under A Joint And Survivor Annuity:

If a 100%, 75% or 50% Joint and Survivor Annuity is payable on your behalf, your monthly benefit is reduced because it costs the Plan more to provide benefits for 2 lifetimes (yours and your spouse’s) and the Plan is likely to pay benefits on your behalf over a longer period of time.

To determine your joint and survivor benefit, your basic monthly benefit will be multiplied by a reduction factor, which is based on the percent of your benefit you have elected to continue to your surviving spouse after your death and the difference in your ages on the date payments start, as outlined below.

100% Joint and Survivor Annuity:

Your benefit is reduced by multiplying it by a factor of 84.5% plus .8% for each year your spouse is older than you, or minus .4% for each year your spouse is younger than you, to a maximum factor of 99%. When you die, your surviving spouse will receive 100% of your reduced benefit for her lifetime.

If you elect the pop-up feature your benefit is reduced by multiplying it by a factor of 82.5% plus .6% for each full year your spouse is older than you or minus .6% for each year your spouse is younger than you, to a maximum factor of 99%.

75% Joint and Survivor Annuity:

Your benefit is reduced by multiplying it by a factor of 87.5% plus .8% for each year your spouse is older than you, or minus .4% for each year your spouse is younger than you, to a maximum factor of 99%. When you die, your surviving spouse will receive 75% of your reduced benefit for her lifetime.

If you elect the pop-up feature your benefit is reduced by multiplying it by a factor of 86% plus .5% for each year your spouse is older than you or minus .5% for each year your spouse is younger than you, to a maximum factor of 99%.

50% Joint and Survivor Annuity:

Your benefit is reduced by multiplying it by a factor of 92% plus .8% for each year your spouse is older than you, or minus .4% for each year your spouse is younger than you, to a maximum factor of 99%. When you die, your surviving spouse will receive 50% of your reduced benefit for her lifetime.

If you elect the pop-up feature your benefit is reduced by multiplying it by a factor of 91% plus .4% for each year your spouse is older than you and minus .4% for each year your spouse is younger than you, to a maximum factor of 99%.

Example #1:

You are married, with 37 continuous Years of Service, and you retire on an Early Pension on January 1, 2001. You are 59 years old and your spouse is 55 years old. Your unreduced benefit is $2,029.00, but you elect to receive the 75% Joint and Survivor Annuity.

A. Your reduced benefit is calculated as follows: $2,029.00 (unreduced benefit) x 6% (reduction factor for Early Pension at age 59) $ 121.74 (reduction for Early Pension) $2,029.00 - 121.74 $1,907.26 (Early Pension reduced for age 59) x 85.9% (reduction factor for 75% Joint and Survivor Annuity with spouse 4 years younger) $1,638.34 (your monthly benefit under the 75% Joint and Survivor Annuity, reduced for Early Pension) x 75% (percentage of your benefit payable to your surviving spouse after you die) $1,228.76(your surviving spouse’s lifetime survivor benefit in the event you die after retiring on a 75% Joint and Survivor Annuity)

B. Using the same example, if you should die after receiving 12 payments of $1,638.34, your surviving spouse would receive the same $1,638.34 each month for 108 more payments (under the 120 payment guarantee), after which she would receive $1,228.76 for the rest of her life. If your surviving spouse should die prior to receiving the 108 remaining guaranteed payments, your contingent beneficiary would continue to receive $1,638.34 each month until a total of 120 payments (12 to you, plus those to your spouse and other beneficiary) have been made, after which all payments will stop.

Example #2:

You are married with 30 Years of Service and you retire on an Early Pension on January 1, 2001. You are 57 years old and your spouse is 60 years old. Your unreduced benefit is $1,742.00, but you elect to receive the 50% Joint and Survivor Annuity.

A. Your reduced benefit is calculated as follows: $1,742.00 (unreduced benefit) x 18% (reduction factor for Early Pension at age 57) $ 313.56 (reduction for Early Pension) $1,742.00 $ 313.56 $1,428.44 (Early Pension reduced for age 57) x 94.4% (reduction factor for 50% Joint and Survivor Annuity with spouse 3 years older) $1,348.45 (your monthly benefit under the 50% Joint and Survivor Annuity) x 50% (percentage of your benefit payable to your surviving spouse if you die) $ 674.23 (your spouse’s lifetime survivor benefit in the event you die after retiring on a 50% Joint and Survivor Annuity)

B. Using the example in (A), if both you and your spouse die on January 1, 2002, when you have reached age 59, your contingent beneficiary will receive a survivor’s benefit of 96 monthly benefit payments of $1,348.45 (120 payments less 24 payments already made on your behalf).

Please note that the examples shown above are for illustration only and do not represent any actual participants.