Page 29 - Pay'n Save Retirement Truat fund

27 | SOUND RETIREMENT

your regular pension, as described on page 16. In this case, even
if you become disabled before your normal retirement date, your
disability pension will not be reduced based on your age when
you begin receiving payments. However, this amount will be
reduced if you select a form of payment other than the single life
annuity.

Once the 2016 Rehabilitation Plan applies to you, your disability
pension amount is your regular pension (as described on page 16)
with a reduction for your age if you are younger than age 63. The
reduction is 6% per year (1/2% per month) for the first 3 years
that you are younger than age 63, 4% per year (1/3% per month)
from age 60 to age 47 with a maximum reduction of 70%. This
amount will be further reduced if you select a form of payment
other than the single life annuity.

Example: Disability Retirement Pension Benefit

Gwen’s employer is subject to the 2016 Rehabilitation Plan on February 1, 2017.
Gwen’s disability onset is effective on October 1, 2017 and she retires at age 52
under disability with a regular pension benefit of $1,750 per month (payable at
age 65 as a single life annuity).
Because Gwen’s disability onset date is after the 2016 Rehabilitation Plan
applies to her, her regular pension benefit will be reduced as follows.

For a disability
Gwen’s disability retirement reduction
For ages… retirement
is calculated as…
reduction of…
60 to 63 36 months x 1/2 of 1% per month 18%

52 to 60 96 months x 1/3 of 1% per month 32%

Gwen’s disability retirement reduction at age 58 = 50% per month

After adding together Gwen’s reduction percentages based on her age
at retirement, then subtracting from 100%, she is eligible for a disability
retirement pension equal to 50% (100% − 50%) of her regular pension
amount. She will therefore receive $875 per month ($1,750 x 50%), payable
as a single life annuity. If Gwen selects a different form of payment (for
example, if she is married and selects the 50% spouse pension), this monthly
amount will be further reduced.

ABOUT YOUR DISABILITY PAYMENTS
Disability pension payments are paid retroactively to the first of
the calendar month coinciding with or following the date you
become totally and permanently disabled, up to a maximum
of 6 months before the month in which your disability pension
application is received.