Amount of Late Retirement Benefit

The benefits for a Participant who retires on a Late Retirement Date will be adjusted to reflect the delay in the start of benefits. For each year after the Participant’s Normal Retirement Date, the Normal Retirement Benefit amount will be increased to include the additional contributions made on the Participant’s behalf or an actuarial adjustment, whichever yields the greatest benefit. The actuarial adjustment is .8% per month for the first 59 months after attainment of age 65 and 1.2% for each month thereafter.

Example:

As in the previous example, let’s assume a married Participant with five Qualified Years has $15,000 in contributions to the Plan when he reaches age 65 on December 20, 2000. However, instead of retiring he continues to work in covered employment and has contributions of $3,000 in 2001 and $1,000 in 2002, and then retires on September 1, 2002. The monthly Late Retirement Benefit is computed as follows:

1. Benefit payable at Normal Retirement Date (January 1, 2001) = 48.30% of $15,000 = $7,245
   
   
2. 2001 adjustment equals the greater of:
   
   
   1. $3,000 of contributions in 2001 $7,245 + (48.30% x $3,000) = $8,694 as of 12/31/01; or
      
      
   2. actuarial increase = 12 months x .8% = 9.6% $7,245 x 1.096 = $7,940.52 as of 12/31/01.
      
      
3. The 2002 adjustment is applied to the retirement benefit at the end of 2001. The 2002 adjustment equals the greater of:
   
   
   1. $1,000 of contributions in 2002
      
      $8,694 + (48.30% x $1,000) = $9,177 as of 9/1/02; or
      
      
   2. actuarial increase = 8 months x .8% = 6.4% $8,694 x 1.064 = $9,250.42 as of 9/1/02.
      
      
4. The monthly benefit payable when the Participant retires on September 1, 2002, is the greater of 3.a. or 3.b. divided by 12, or $9,250.42 ÷ 12 = $770.87.

The monthly benefit would be reduced if any form of benefit other than a Five-Year Certain and Life Annuity is elected.