Forms of payment

The way your pension is normally paid depends on whether you are married when payments start. Your pension benefit will automatically be paid in the normal form unless you elect otherwise. The normal form of payment if you are:

• Not married is a Life Only Pension.
• Married is a 50% Husband and Wife Pension.

Life Only Pension

A Life Only Pension pays you a monthly pension payment for as long as you live. If you die, no additional benefits are payable. This is an unreduced benefit.

50% Husband and Wife Pension

If you are legally married to your Spouse when your pension becomes payable, and if you and your Spouse do not elect otherwise, you will receive a 50% Husband and Wife Pension payable during your lifetime. After your death, 50% of your pension will be paid to your surviving Spouse for the rest of his or her life.

Because this pension arrangement usually results in benefit payments being paid over a longer period than under the Life Only Pension, your pension benefit is reduced based on your age and your Spouse’s age, as described in the Retirement and Pension Summary Plan Description (SPD) booklet.

Small Pension Amounts

If the actuarial present value of your pension is $5,000 or less as of the date payment is to start, the Trustees will pay your benefit in one lump-sum payment. This means that your entire pension benefit is paid in one payment.

Once a lump-sum payment is made, no additional benefits will be payable from the Plan. This lump sum distribution is considered a taxable payment. To learn more, refer to the Retirement and Pension Summary Plan Description (SPD) booklet.

Optional Forms of Payment

In addition to the normal forms of payment, the Plan also offers the following forms of payment as survivor protection:

1. 75% Husband and Wife Pension (available to your Spouse);
2. 100% Husband and Wife Pension (available to your Spouse);
3. 50% Husband and Wife Pension with Pop-Up (available to your Spouse);
4. 75% Husband and Wife Pension with Pop-Up (available to your Spouse);
5. 100% Husband and Wife Pension with Pop-Up (available to your Spouse); and
6. 10-Year Certain and Life Pension (available to your Spouse or Beneficiary).

You must elect the form of payment you want, in writing, before you begin receiving payment of your benefit. You may elect, change, or revoke a form of payment election at any time during the 180-day period before the date your pension begins.

To learn more about these optional forms of payment, refer to the Retirement and Pension Summary Plan Description (SPD) booklet