Page 67 - Pay'n Save Retirement Truat fund

65 | SOUND RETIREMENT

Example: Early Retirement Before Age 55
On October 1, 2008, Sam is age 45, has 23 years of unbroken credited service,
and a benefit of $1,000 per month under the terms of the Drug Plan. Sam
earns an additional 7 years of credited future service under the Sound Plan,
retiring on October 1, 2015. During that time, he earns an additional monthly
benefit of $72.
Because Sam earned an additional 7 years of credited future service, his total
years of unbroken credited service between the plans is 30 (23 + 7), allowing
him to retire before age 55. Sam’s early retirement monthly benefit starting
at age 52 will equal $370 per month ($1,000 x 37%, his early retirement
reduction factor), subject to further adjustment based on the form of payment
he selects.
At age 55, Sam is eligible to receive the $72 monthly benefit he earned under
the Sound Plan. Upon his election, this additional amount will be adjusted for
his age and the form of payment he selects, then added to the $370 he was
previously receiving.

Early Retirement On or After Age 55

You are eligible to begin receiving an early retirement pension if
you are age 55 or older and have:

 5 or more years of credited service (including 1 or more
years of credited future service earned on or after October 1,
2008) or 10 or more years of credited service (including any
continuous non-covered service), and

 You otherwise meet the eligibility requirements for early
retirement in the Sound Plan (see pages 18 - 25).

Just like for any Sound Plan participant that earned all of their
benefits under the Sound Plan, if you are eligible for early
retirement, your early retirement pension for retirement after
age 55 will first be determined in two steps: (1) calculation of
your regular pension amount in the portion that is eligible for the
Standard Reduced Pension and the portion that is eligible for the
Modified Reduced Pension; and (2) reducing each portion for
your age when you begin receiving payments using the Sound
Plan early retirement factors. However, the total of these amounts
will not be less than your regular pension amount under the Drug
Plan as of September 30, 2008, reduced for your age when you
begin receiving payments using the Drug Plan early retirement
factors.

Both the Sound Plan and Drug Plan early retirement reduction
factors prior to October 1, 2016 are described in the following
section.

Early Retirement Reduction Factors

Three sets of early retirement reduction factors may apply to your
pension benefit: Two sets applied to your total benefit you earn
under the Sound Plan formula, and one set applied to benefits
earned through September 30, 2008 under the Drug Plan.