Retirement Plan SPD

Your retirement effective date is the later of the first of any month following your 55th birthday or the first of the month following receipt of your completed Application.

For additional information about regular early retirement eligibility, please see Article 4.2.1 and Article 6.12.1.

Key Point

Under no circumstances can you postpone your retirement past April 1 of the calendar year immediately following the later of: (1) calendar year in which you attain age 70-1/2; or (2) the calendar year in which you retire. For additional information about this rule, please see Article 6.12.4(b).

Monthly Benefit

Under regular early retirement, your monthly income is your total monthly benefit, less the appropriate reduction for early retirement, less the appropriate reduction for a joint and survivor benefit (if applicable). Your total monthly benefit is reduced because your monthly payments will begin earlier and will probably be paid for a longer period of time than if you had retired under normal retirement. Regular early retirement reduction factors are listed in Table 5. Joint and survivor factors are listed in Table 7. The following examples illustrate how to calculate a regular early retirement income.

Your regular early retirement income can be increased with the pension enhancement option (please see Pension Enhancement Option).

Calculations

Example 1

You retire at age 62 with a single life benefit of $2,000.00:

Total Monthly Benefit x Regular Early Reduction Factors = Monthly Benefit

$2,000.00 x .9100 (91.00%) = $1,820.00

In this example, your $2,000.00 total monthly benefit is reduced by $180.00 for regular early retirement.

Example 2

You retire at age 62 with a total monthly benefit of $2,000.00. Your spouse is five years younger than you and you elect a 50% joint and survivor benefit:

Total Monthly Benefit x Regular Early Reduction Factors = Monthly Benefit

$2,000.00 x .9100 (91.00%) = $1,820.00

Reduced Monthly Benefit x Joint and Survivor Reduction Factor = Monthly Benefit

$1,820.00 x .8550 (85.50%) = $1,556.10

$1,556.10 per month for your lifetime

$778.05 per month for your surviving spouse’s lifetime

In this example, your $2,000.00 total monthly benefit is reduced by $180.00 for regular early retirement and by $263.90 to provide a continuing monthly income for your surviving spouse’s lifetime.

Helpful Hint

The graph on page 38 compares a true actuarial reduction with the reduction provided by this plan’s regular early retirement reduction factors (Table 5) and this plan’s special early retirement reduction factors (Table 6). An actuarial reduction provides no plan subsidy. The regular early and special early retirement reductions are subsidized by the plan to provide early retirees with an improved benefit.

For additional information about the monthly benefit available under regular early retirement, please see Article 6.2.1.

Regular Early Retirement

Eligibility and Retirement Effective Date

Monthly Benefit