Normal Forms of Benefit Payment

Regardless of whether you are single or married, if the total value of your retirement benefit is $1,000 or less, you will receive a single lump-sum payment of your retirement benefit.

If the total value of your retirement benefit is more than $1,000, you will be able to choose from several payment options. Your benefit is automatically paid in the normal form unless you choose otherwise.

There are two normal forms of benefit payment methods. If you are:

• Single – Refer to the Single Life Annuity
• Married – Refer to the Standard Joint & Survivor Annuity (50% J&S)

You do, however, have the right to elect an optional form of benefit payment.

You may change your election at any time before your retirement date. Upon your retirement date your election becomes irrevocable.

Single Life Annuity

If you are single when you are ready to begin receiving your benefit, your normal form of payment is a single life annuity. Under this form of payment, you receive a monthly benefit for the rest of your life; no benefit will be payable after you die.

Standard Joint and Survivor Annuity (50% J & S)

If you are married when you are ready to begin receiving your benefit, the normal form of payment is a standard 50% joint and survivor annuity for you and your spouse. Initially, your benefit amount is calculated according to the benefit formula shown in the SPD. Under this form of payment, you receive monthly payments for the rest of your life and, after your death, 50% of your benefit will be paid to your spouse for his or her lifetime. To reflect the fact that benefits are paid over two lifetimes, the joint and survivor annuity amount payable to you is less than the single life annuity amount. The amount is reduced by an actuarial factor determined on the basis of the joint life expectancy of you and your spouse. For the purposes of this plan, your “spouse” is your husband or wife to whom you were legally married on the date Plan benefits begin. Even if you are not married to your “spouse” at the time of your death, the benefit will still be payable to your “spouse” unless your “spouse” pre-deceases you.

Your benefit will be paid according to one of these methods, unless you elect an optional payment form in writing.

Optional Forms of Benefit Payment

You can elect an optional form of payment instead of the normal form. The value of any optional form of benefit is the actuarial equivalent of the normal form of benefit

If you are married and want to elect a form of payment other than the Standard Joint and Survivor Annuity with your spouse as contingent beneficiary, you must have your spouse’s written, notarized consent to such election.

You may revoke this election any time prior to when your benefit begins. If your election is made less than 30 days before your retirement date, your first month’s payment will be in the normal form. Then, the following month, your elected form of payment will begin.

Any optional form of benefit elected by a married participant will not be effective unless the spouse’s consent is given in writing before a notary public.

Cashout

If the actuarial present value of your vested accrued benefit is $5,000 or less when you terminate employment, you will be eligible to receive a cashout (a single sum payment) as soon as administratively possible. If you receive a cashout, no further benefits will be payable under the Plan. You may elect to roll over the portion of your cashout that qualifies as an eligible rollover distribution directly to an IRA or another qualified plan that accepts rollover contributions.

• If the actuarial present value of your vested accrued benefit is $1,000 or less, you will automatically be given a cashout.
• If the actuarial present value of your vested accrued benefit is more than $1,000 but is $5,000 or less, you may elect to receive a cashout.

Single Life Annuity

With your spouse’s consent, you may choose a single life annuity as an optional form of payment even though you are married. Under this form of payment, you receive a monthly benefit for the rest of your life; no benefit will be payable after you die.

Ten Year Certain and Continuous

You receive an actuarially reduced monthly benefit for your lifetime with a guarantee that at least 10 years (120 months) of benefit payment will be made. If you die before 120 payments (10 years of payments) are received, your beneficiary will receive the remaining monthly payments. You may name both primary and contingent beneficiaries. If you and your beneficiaries die before the 120 months of payments have been made, the remaining monthly benefits will be paid in a single sum to the estate of the last survivor. If your life expectancy, according to actuarial life expectancy tables is less than 10 years, you are not eligible to elect this form of benefit payment.

Joint and Survivor Annuity

You will receive an actuarially reduced monthly benefit for your lifetime. You may choose to continue payments to your survivor equal to any whole percentage of the amount you had been receiving. After your death, your named survivor (beneficiary) receives the elected percentage of your benefit until their death. Your surviving beneficiary may be anyone you name--be it a spouse, a relative, or a friend. Your named survivor must be one individual and cannot be changed after your benefits have commenced. If you elect a Joint and Survivor Annuity percentage above 50% and your survivor is anyone other than your spouse, the percentage of your monthly payments to be continued to your survivor may be limited.

Level Income (Only available if you retire before age 62)

If you retire before age 62, you may elect a monthly benefit that can provide you with a fairly level income throughout retirement. You may elect the Level Income option to be applied to the form of benefit you elected. This is accomplished by increasing your retirement income from the Plan by an amount estimated to be close to your age 62 Social Security benefit. The increased payments are made until you reach age 62, at which time you will be eligible for reduced Social Security benefits. At age 62 the monthly payments from the Plan are reduced, whether or not you actually begin receiving a Social Security Benefit. The reduced monthly payments will continue for your lifetime and, depending on the option you choose, possibly for the lifetime of your beneficiary.

This means you can keep your income fairly level throughout retirement. However, because your initial benefit is based on estimated Social Security benefits, your ultimate combined income from Social Security and the Plan after age 62 may be somewhat higher or lower than originally calculated.