(B) F or benefits earned on and after your RP Schedule Effective If you do not have an hour of service on or after January 1, 1991, Date, the normal pension determined as if you were 65 years your reduction is based on the provisions of your prior plan. See old, reduced for early commencement by applying the appli- your prior plan SPD. cable early retirement reduction factor in in Table Thirteen for Note: If you are covered under the Default Schedule and have 20 or more years each year, or portion of year, that you are younger than age 65 of credited service, the early retirement reduction for benefits earned before your on the effective date of your early retirement pension. RP Schedule Effective Date is made only for each month you are younger than age 62 on the effective date of your pension provided that you have 1,200 hours of service, unless you have 600 hours of service in 1999 or later. HERE’S AN EXAMPLE: Early Retirement Pension for Grandfathered Participants If you are a Grandfathered Participant and retire with 20 years of Steve starts earning benefits under the Fund in 2010 at the service, including 1,200 hours of service; 600 hours of which were age of 40, earns benefits continually under the Fund until earned in 1993 or later, you are eligible for the Early Unreduced 2025, and stops working in 2025 at age 55 with 15 years of Pension. If you have 600 hours of service in 1999 or later, you are credited service. Steve worked 1,800 hours each year and is eligible for an Early Unreduced Pension with 20 years of vesting credited with employer contributions at a rate of $1.00 per service. Your pension is reduced only if you commence it before hour for 2010-2019 (with Schedule B as the applicable ben- age 62. See Table Twelve for details. efit schedule), and $2.00 per hour for 2020-2024. Steve’s RP Schedule Effective Date is January 1, 2020. 30 AND OUT PENSION Under the Default Schedule, if he were to retire at age 65, he would The 30 and Out pension provides a pension benefit payable at any receive a normal pension benefit of $649.80 per month calculated age if you have 30 years of credited service including 1,200 hours as follows: of credited service; 600 hours of which were earned in 1995 or lat- 2010-2019 10 years of future service at $1.00 rate = er. If you have 600 hours of vesting service in 1999 or later, you are $469.80 (10 x $46.98) eligible for a 30 and Out Pension with 30 years of vesting service. 2020-2024 5 years of future service at 1% of contributions Preferred Schedule 5 years at $2.00 per hour * 1,800 hours per year If you elect the 30 and Out Pension and are covered under the Pre- = $18,000 in contributions; $18,000 * 1% = $180.00 ferred Schedule, your benefit will be reduced by the early retire- His total monthly normal pension benefit = $649.80 ment reduction factors in Table Thirteen for every year, or portion ($469.80 + $180.00). of year, you are younger than age 65. Under the Default Schedule, if Steve retires in 2025 at age HERE’S AN EXAMPLE: 55, his early retirement pension is calculated as follows: Michael stops working at age 52 with 30 Years of credited (A) $469.80 (the portion of his monthly normal service and submits his completed pension application. The pension earned before his RP Schedule Effective amount of his monthly normal pension if Michael starts re- Date) reduced by 48% (four tenths of one percent ceiving payments at age 65 is $1,000 per month. (.004) for each month by which Steve is younger Under the Preferred Schedule, Michael may retire at age 52 on or than age 65) which equals $244.30 after his RP Schedule Effective Date, but his benefit will be reduced. — Plus — If Michael decides to retire at age 52, he will be eligible to collect his reduced early retirement pension. (B) $180.00 (the portion of his monthly normal pen- His early retirement pension is calculated as follows: sion earned on and after his RP Schedule Effective Date), reduced by 63.4% by applying the early Early retirement reduction factor at age 52 retirement reduction factor in Table Thirteen at age (.280) x $1,000 benefit = $280 55 (.366), for a monthly benefit of $65.88. As a result, Michael’s total monthly benefit would equal $280 As a result, Steve’s total monthly early retirement (a 72% reduction). Michael would be eligible to receive his full pension benefit = $310.18 ($244.30 + $65.88). retirement benefit of $1,000 per month only if he delays com- mencement of his benefit until age 65. SUMMARY PLAN DESCRIPTION 2023 // 15