Page 20 - Pay'n Save Retirement Truat fund

SOUND RETIREMENT | 18

EARLY RETIREMENT PENSION

INTRODUCTION

There are several different types of early retirement pension:

 Standard Reduced Pension -- is a partly subsidized benefit
with no reduction for retirements at age 63 and above,
meaning that while the benefit is reduced based on your age,
it is not fully reduced as with the Modified Reduced Pension.

 Modified Reduced Pension-- is not subsidized at all and is fully
reduced to take into account the earlier age that you begin to
receive benefits before age 65. The early retirement factors
used to calculate this pension provide a monthly benefit that
is approximately equal in value at each early age. Because
there is no subsidy in this benefit, the reductions in the
Modified Reduced Pension are larger than for the Standard
Reduced.

 55/30 Partly Reduced Pension—is a “partly” reduced pension
because benefits earned before September 1, 2003 are not
reduced at all for your age. Your benefit earned on and after
September 1, 2003 is reduced based on your age, but it is
reduced using the same factors as the Standard Reduced
Pension, which do not reduce your benefit as much as they
would if they were to fully account for the early retirement.

The type that applies to the benefit you have earned depends
on your age, service, participation status and retirement date.
In general, an early retirement pension benefit is based on the
regular pension benefit you would be eligible to receive at age
65, but reduced because your benefit is expected to be paid for a
longer period of time.

WHEN DOES THE 2016 REHABILITATION PLAN
APPLY TO ME?

The benefit changes under the 2016 Rehabilitation Plan are
described in each section of this SPD. The rules under the prior
Rehabilitation Plans are in Appendix E. Most benefit changes
under the 2016 Rehabilitation Plan do not apply to retirements
occurring before January 1, 2017. The 2016 Rehabilitation Plan
applies to you the first day of the month following the earliest of:

 The date the 2016 Rehabilitation Plan is adopted under the
collective bargaining agreement between your employer and
your union; or
 The effective date of the first agreement that applies to you, if
you are not covered by a collective bargaining agreement; or