Default Schedule Grandfathered Participants. If you elect the 30 and Out Pension and are covered under the Default See Table Twelve. Schedule, your benefit will be calculated differently for the portion that is earned before and after your RP Schedule Effective Date, as follows: (A) for benefits earned before the RP Schedule Effective Date, the unreduced normal pension to which you would have been enti- tled if you were then 65 years of age, plus (B) for benefits e arned on or after the RP Schedule Effective Date, a reduced benefit based on the early retirement reduction factors in Table Thirteen. HERE’S AN EXAMPLE: Michael starts earning benefits under the Fund in 2005 at the age of 22, earns benefits continually under the Fund until 2035 and stops working in 2035 at age 52 with 30 Years of credited service (with Schedule B as the applica- ble benefit schedule). Michael worked 1,800 hours each year and is credited with employer contributions at a rate of $1.00 per hour for 2005-2019, and $2.00 per hour for 2020-2034. Michael’s RP Schedule Effective Date is January 1, 2020. Under the Default Schedule, if he were to retire at age 65, he would receive a normal pension benefit of $1,244.70 per month calculated as follows: 2005-2019 15 years of future service at $1.00 rate = $704.70 (15 x $46.98) 2020-2034 15 years of future service at 1% of contributions 15 years at $2.00 per hour * 1,800 hours per year = $54,000 in contributions ELIGIBILITY FOR 20 AND AGE 62 PENSION 30 AND $54,000 * 1% = $540.00 OUT PENSION His total monthly normal pension benefit = $1,244.70 ($704.70 + $540.00). For qualified participants, years of vesting service can count as credited service in determining eligibility for the early pension at age 62 for participants with 20 years of credited service and the 30 Under the Default Schedule, if Michael retires in 2035 at age 52, and Out pension, but will not count in determining the amount of his 30 and Out Pension is calculated as follows: the participant’s pension. (A) $704.70 (the portion of his monthly 30 and Out Pension To qualify, participants must have at least 600 hours of service in earned before his RP Schedule Effective Date) 1999 or later. For purpose of the years of service requirement, pre- — Plus — decessor plan service will count as vesting service. (B) $540.00 (the portion of his monthly 30 and Out In the case of most plans that have merged into the National Pen- Pension earned on and after his RP Schedule Effective sion Plan, years of credited and vesting service under the merged Date), reduced by 72.0% by applying the early retirement reduction factor in Table Thirteen at age 52 plan will also count in determining eligibility for the National Pen- (.280) = $151.20. sion Fund’s early pensions. As a result, Michael’s monthly 30 and Out Pension benefit = Years of credited service and vesting service must be nonduplicative $855.90 ($704.70 + $151.20), beginning at age 52. — that is, for any single calendar year, you cannot be credited with more than one year of service toward eligibility for your pension. 16 \\ How Much Will Your Pension Benefit Be?