MTB-Pension Fund  Benefit Formula

The monthly accrued benefit in effect as of July 1, 1999 is equal to the following provided you have earned continuous years of service credits through June 30, 1999:

(i) $3.50 multiplied by the total years of credited past Service; plus

(ii) 3% of Creditable Employer Contributions, as defined in subparagraph (vi) below, made on behalf of the Participant on or after July 1, 2008; plus

(iii) 3% of Total Accumulated Employer Contributions made on behalf of the Participant prior to July 1, 2008; plus

(iv) 3% of accumulated Employer contributions during the period July 1, 1965 to June 30, 1992; plus

(v) $33.00 per month for each year of credited Future Service.

(vi) For purposes of (ii) above, “Creditable Employer Contributions” is an amount equal to the Employer Contributions that would have been required to be contributed to the Plan based on the contribution rate in effect for the Participant’s Contributing Employer on June 30, 2008, or if less, the current contribution rate in effect for the Contributing Employer. Should a participant change employment to another Contributing Employer after June 30,2008, then “Creditable Employer Contributions” for the period that he works for that Contributing Employer shall be based on the contribution rate in effect for that Contributing Employer on June 30, 2008, or if less, the Contributing Employer’s current contribution rate.  

If you retire before age 65, your accrued monthly benefit will be reduced by 1/2 of 1% for each month under age 62.

If you are eligible for a Disability Retirement Benefit, there is no reduction for age.

The following is an EXAMPLE of a retirement computation:

Assumed Employee Data:

Effective Date of Retirement: July 1, 2005 Date of Birth of Retiree: June 25, 1940 (age 65) Date of Birth of Spouse: May 15, 1944 (age 61)

a) Years of Participation prior to 7/1/65 (date contributions commenced): 1

b) Years of Participation from 7/1/65 to Retirement Date: 40

c) Total Accumulated Contributions from 7/1/65 to Retirement Date: $55,000.00

d) Accumulated Contributions from 7/1/65 to 6/30/92: $31,267.00

The employee qualifies for a Normal Pension as he meets the minimum years of service requirement of 5 years and the attained age requirement of 65.

Calculation of Monthly Benefits:

a) 1 year x $3.50: $ 3.50 b) 40 years of consecutive service X $33.00 = 1,320.00 c) $55,000.00 X 3% = 1,650.00 d) $31,267.00 X 3% = 938.01 Total Monthly Pension: $ 3,911.51

(The following information is based upon the example above and will fluctuate based on your actual ages.)

If you and your spouse elected not to take a Joint and Survivor Annuity, your monthly pension would be $3,911.51, payable for your lifetime.

If death occurs before 60 monthly payments are made, your beneficiary would receive the remaining monthly payments.

In this example, if the participant elected the 50% Joint & Survivor Option, your monthly pension will be reduced to $3,387.37, payable for his lifetime. Upon his death, the spouse would receive the remaining monthly payments, if applicable, and then 50% of the monthly payment ($1,693.68) would be payable for her lifetime.

If he elected the 50% Joint & Survivor Pop-Up Option, the benefit would be reduced to $3,363.90, payable for his lifetime. Upon his death, the spouse would receive the remaining monthly payments, if applicable, and then 50% of the monthly payment or $1,681.95 would be payable for her lifetime. However, if his spouse predeceases the participant, his benefit would "pop-up" to $3,911.51 for his lifetime.

Maximum benefit amount: You should be aware that there is a provision in the I.R.S. Code (§415) which places a maximum limitation on the benefits you can receive from a pension plan.

In addition to other limitations set forth in the Pension Plan, and not-withstanding any other provisions of this Plan, the accrued benefit, including the right to any optional benefit provided in this Plan (and all other defined benefit plans required to be aggregated with this Plan under the provisions of Section 415 of the Internal Revenue Code of 1954), shall not increase to an amount in the excess of the amount permitted under Section 415 of the Internal Revenue Code and any applicable amendments.

Under the law, the Plan cannot pay an annual benefit in excess of $185,000, as indexed, beginning when the Employee would be entitled to full Social Security benefits. If benefits are paid earlier, say in the case of an Early Pension, the $185,000 amount is actuarially adjusted.

A benefit payable in a form other than a straight life annuity must be adjusted to an actuarially equivalent straight life annuity before applying the limitations set forth above.

A participant’s highest three (3) years shall be the period of consecutive years, not more than three (3) during which he had the greatest aggregate compensation.