Page 68 - Pay'n Save Retirement Truat fund

SOUND RETIREMENT | 66

 Under the Sound Plan factors, the portion of your regular
pension benefit that is paid as a standard reduced pension is
reduced by ½ of 1% for each month you are younger than age
63 (but not younger than age 60), and ⅓ of 1% for each month
you are younger than age 60; the portion of your regular
pension benefit that is paid as a modified reduced pension is
reduced by 2/3 of 1% for each month you are younger than
age 65 (but not younger than age 60), and 5/12 of 1% for each
month you are younger than age 60.
 Under the Drug Plan factors, your regular pension benefit is
reduced by ¼ of 1% for each month you are younger than age
65 (but not younger than age 60), and ½ of 1% for each month
you are younger than age 60.

Note: if you retire after 2010 and you do not have two or more
years of future credited service after your most recent break-
in-service as a vested participant after September 30, 2010
(September 30, 2009 if you had no contributory hours during
the period October 1, 2010 through December 16, 2010), you will
not be eligible for the Standard Reduced Pension if you choose
to retire early. Instead, at early retirement you would receive the
Modified Reduced Pension described on page 21.

Any early retirement pension cannot be less than the pension
you would have received under the Drug Plan for benefits earned
through September 30, 2008.

Examples: Comparisons of Early Retirement Pension Amount

Example 1: No credited service earned after October 1, 2008
As of September 30, 2008, Bruce is age 55 and has 20 years of credited
service under the Drug Plan and a monthly benefit of $1,400, payable at
normal retirement as a single life annuity. He is not married. He does not earn
any additional credited service on or after October 1, 2008, and instead retires
on that date.
When he retires, Bruce’s benefit as of September 30, 2008 under the Drug
Plan is all he will receive. As a result, Bruce will receive $770 per month
($1,400 x 55%, his early retirement reduction factor), payable as a single
life annuity. Alternatively, he can receive an adjusted amount if he selects a
different form of payment, determined using the reduction factors in the Drug
Plan as of September 30, 2008.