Summary Plan Description

Early Retirement

The Plan provides for the payment of the Early Retirement Benefit if you retire after reaching age 55, but before reaching age 60, and meet all of the eligibility requirements.

Eligibility

You will be eligible for the receipt of the Early Retirement Benefit when you reach age 55, and have completed at least 15 Years of Credited Service, of which at least 5 years are Future Credited Service (contributory service).

Early Retirement Discount Factor

If you decide to retire after reaching age 55, but before reaching age 60, and meet all of the eligibility requirements, the amount of the benefit you receive will be discounted by the Plan's Early Retirement Discount Factor. The purpose of the Early Retirement Discount Factor is to reduce the amount of the benefit paid
to a Participant retiring prior to the Normal Retirement Age so that his or her benefit during retirement is actuarially equal in value to that which would be payable at the Normal Retirement Age (at age 60).

The amount of the Early Retirement Discount Factor is 0.5% for each month that the Early Retirement Date precedes age 60.

Computation Of Benefit

You can estimate the amount of the Early Retirement Benefit you will receive each month after you retire by following these steps:

1.  Estimate the number of Years of Credited Service you will have earned at the time of your Early Retirement Date. You can find out the amount of Credited Service you have earned by making a written request to the Fund Office.

2.  Follow the same procedure provided at pages 22-23 to calculate your Normal Retirement Benefit.

3.  Multiply the number of months that your Early Retirement Date precedes your 60th birthday by the Early Retirement Discount Factor. For example, if you retire one year early, your monthly benefit will be reduced by
6.0% (0.5% x 12 months).

The amount of your benefit may also be reduced by the 2% penalty as explained at page 14, if applicable.

4.  Subtract the percentage computed in Step 3 from 100%. Multiply this percentage by the figure computed in Step 2. The result is the approximate monthly benefit you will receive on your Early Retirement Date.

5.  The application of the Qualified Joint and Survivor Benefit is explained in the Section entitled "Qualified Joint And Survivor Benefit" at page 43.

Example

Assume that you decide to retire on January 1, 1999 on your 57th birthday instead of waiting until your Normal Retirement Date at age 60, and that on your 57th birthday you estimate you will have completed 23 Years of Credited Service, and that your Normal Retirement Benefit is $1,000 per month. Your Early Retirement Date precedes your 60th birthday by 36 months; thus, your Early Retirement Discount Factor is 18% (36 months x 0.5%). This figure is the percentage by which the $1,000 will be reduced because of Early Retirement. The amount you will receive on your Early Retirement Date will be equal to $1,000 multiplied by 82% (100% minus 18%) or $820. You will receive this amount every month from your Early Retirement Date for the rest of your life. This example assumes that you and, if married, your spouse waived all Survivor Options.

 

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