Assuming you remain in bargaining unit employment until age 65, you are eligible to retire with a normal retirement payment on the first day of the month in which you attain age 65, your normal retirement date, regardless of the number of your service credits. Service credits are defined on pages 12, 13 and 14.
However, if you were first hired and first became a Plan participant at age 65 or later, you will not become eligible to retire with a normal retirement payment until the fifth anniversary of the date of your initial participation in the Plan.
The annual amount of your normal retirement payment depends on when you last worked in bargaining unit employment. Please note that the provisions set forth below relate to the terms of the Plan as in effect in February, 2015.
The plan may be amended or terminated at any time, and future benefit accruals (if any) may be different from those that previously applied.
If you retired or terminated your bargaining unit employment prior to January 11, 2008, your retirement benefit will be determined in accordance with the terms and conditions contained in the Plan as of the date of your retirement or your date of termination of bargaining unit employment, whichever is earlier.
If you were an active regular employee of the Company on or after January 11, 2008 (or were treated as if you were an active regular employee for purposes of receiving Future Service credit on or after January 11, 2008" see "Is There Any Way an Employee Can Receive Service Credit for Time When Not in Bargaining Unit Employment?" on page 14), your retirement benefit (stated in the form of a single life annuity) will be determined as the sum of Part 1, Part 2, Part 3 and Part 4 of the following formula:
Your retirement benefit (stated in the form of a single life annuity) will be determined as the sum of Part 1, Part 2, Part 3 and Part 4 of the following formula:
2.03% x Final Average Pay
x
Years of Past and Future Service earned prior to January 1, 2004
up to a maximum of 40 years;
Plus
1.80% x Final Average Pay
x
Years of Future Service earned after December 31, 2007 but prior to
January 1, 2013 up to a maximum number of years equal to:
Plus
1.68% x Final Average Pay
x
Years of Future Service earned after December 31, 2003 but prior to January 1, 2008 up to a maximum number of years equal to:
Plus
0.65% x Final Average Pay
x
Years of Future Service earned after December 31, 2012
up to a maximum number of years equal to:
For example, if you commenced bargaining unit employment on January 1, 1974, worked continuously on a full-time basis until you stopped working and retired on December 31, 2014, earning 41 total Years of Past and Future Service, and were at least age 65 as of the month of January 2015, then effective as of January 1, 2015, your normal retirement payment would equal:
30 Years of Future Service multiplied by the 2.03% accrual rate, plus
5 Years of Future Service multiplied by the 1.80% accrual rate, plus
4 Years of Future Service multiplied by the 1.68% accrual rate, plus
1 Year of Future Service multiplied by the 0.65% accrual rate*,
all multiplied by your Final Average Pay (calculated taking into account all of your pay earned through December 31, 2014).
The calculations above do not apply to terminated vested participants or to members of decertified groups. If you are in one of these groups, please ask the Fund Office about your benefit payments. The Plan provisions in effect at the date your bargaining unit employment terminated will usually (but not always) apply. The Plan provisions govern the applicable formula.
* You only get one year of Future Service after December 31, 2012, instead of two years, because you already got credit for 39 years of Future Service prior to January 1, 2013, and one more year of Future Service brings you to your maximum of 40 years of total Past and Future Service.
Your Final Average Pay is your yearly average Base Pay determined based on the highest 20 of the most recent 40 full calendar quarters immediately preceding your death or termination of bargaining unit employment.
Effective January 1, 1988, your Base Pay is the rate of base pay in effect for the job grade classification in which you are normally assigned on the first day of the calendar month.
Your Base Pay includes any amounts that you elect to be contributed as employee tax deferred contributions to the ABC Savings and Investment Plan. However, it does not include overtime pay, penalties, turnaround pay, night shift differential, over-scale pay or any other form of extra compensation or pension plan contribution made on your behalf.
Further, if you were hired before January 1, 1983, and you were an active regular employee of the Company on or after January 11, 2008 (or were treated as if you were an active regular employee for purposes of receiving Future Service credit on or after January 11, 2008" see "Is There Any Way an Employee Can Receive Service Credit for Time When Not in Bargaining Unit Employment?" on page 14), your retirement benefit (stated in the form of a single life annuity) will not be less than the benefit produced by the formula below, which depends on Base Pay.
Effective January 1, 1992, the maximum amount of service credit recognized by the Plan was increased to 40 years of Past and/or Future Service. Under this provision, if you accumulate credit for more than 40 years of Past and/or Future Service, the amount of your retirement payment will be based upon your last 40 years of service credit. However, in applying this limitation, in no event will the amount calculated as of any date be less than the amount calculated as of any prior date.
The following example illustrates the normal retirement payment calculation:
John became a regular employee of the Company on January 1, 1974. His base pay for the 1978 Plan Year was $29,000 and his base pay from 1979 until his normal retirement date of January 1, 2015 is shown below.
| Year | Base Pay |
|---|---|
| 1979 | $30,000 |
| 1980 | $30,000 |
| 1981 | $31,500 |
| 1982 | $32,000 |
| 1983 | $33,000 |
| 1984 | $33,500 |
| 1985 | $34,000 |
| 1986 | $35,000 |
| 1987 | $38,000 |
| 1988 | $39,000 |
| 1989 | $40,000 |
| 1990 | $41,000 |
| 1991 | $41,000 |
| 1992 | $42,000 |
| 1993 | $45,000 |
| 1994 | $45,000 |
| 1995 | $50,000 |
| 1996 | $50,000 |
| 1997 | $52,000 |
| 1998 | $53,000 |
| 1999 | $55,000 |
| 2000 | $55,000 |
| 2001 | $57,000 |
| 2002 | $57,000 |
| 2003 | $59,000 |
| 2004 | $59,000 |
| 2005 | $60,000 |
| 2006 | $60,000 |
| 2007 | $62,000 |
| 2008 | $63,000 |
| 2009 | $63,000 |
| 2010 | $64,000 |
| 2011 | $65,000 |
| 2012 | $66,000 |
| 2013 | $67,000 |
| 2014 | $68,000 |
John's final average pay (2010-2014) is equal to $66,000. At his normal retirement date, after 41 years of Future Service (only 40 of which count under the Plan's formulas), John's retirement payment would be the greater of (1) or (2) below.
Therefore, John's annual normal retirement payment (stated in the form of a single life annuity) is determined under the Plan's regular formula (method (1), above) in the amount of $50,998.20, which is greater than the benefit produced under the Plan's minimum formula (method 2, above).
John's benefit, if paid in the form of a single life annuity, would be payable in equal monthly installments of $4,249.85 for life ($50,998.20 divided by 12).
Note that the amount of your Base Pay that is counted for purposes of determining your benefits under the Plan may be limited by applicable law and the terms of the Plan.