• FORM OF BENEFIT PAYMENT
• OPTIONAL FORMS OF PAYMENT
• REQUIRED BEGINNING DATE
• BENEFITS PAYABLE UNDER QUALIFIED DOMESTIC RELATIONS ORDER
• COMMENCEMENT OF PARTICIPANT'S BENEFIT PAYMENTS
• INVOLUNTARY CASHOUT
  

 

ARTICLE 9. PAYMENT OF BENEFITS

9.1 FORM OF BENEFIT PAYMENT.
All distributions required under Article 9 will be determined and made in accordance with Code Section 401(a)(9) and the proposed regulations thereunder, including the minimum incidental benefit requirements of Section 1.401(a)(9)-2 of the proposed regulations. Subject to the remaining provisions of Article 9, in the absence of an election in writing to the contrary during the qualified election period described below, the payment of a Participant's retirement benefits will be made to the Participant in the following manner:

(a) A Participant who is married on his Annuity Starting Date will receive his benefit in the form of a Joint and 50% Contingent Survivor Annuity.

(b) A Participant who is not married on his Annuity Starting Date, will receive his benefit in the form of a single sum payment.

The appropriate named fiduciary will provide each Participant no less than 30 days and no more than 90 days prior to his Annuity Starting Date, with a written non technical, general description of the terms and conditions of the Joint and 50% Contingent Survivor Annuity. The description will include information regarding the Participant's right to make, and the effect of, the Participant's election to waive such Joint and 50% Contingent Survivor Annuity, the rights of the Participant's Spouse to decline such a waiver and the Participant's right to make and the effect of, a revocation of a previous election to waive the Joint and 50% Contingent Survivor Annuity. The description will also include information regarding optional forms available under the Plan and the relative impact of choosing an optional form of benefit. Such description must provide that there will be no limit to the number of revocations during the qualified election period.

Each married Participant will be given the opportunity to elect, in writing, during the qualified election period described below, to receive his Plan benefits under Article 9.1 (b) or in any of the optional payment forms provided under Article 9.2. Any election made by the Participant may be revoked by the Participant, in writing, during the qualified election period. After such revocation, another written election may be made by the Participant, provided it is made within the qualified election period. Each such election will be subject to the spousal consent requirements of Article 8.6.

The qualified election period will be the 90 day period ending on the Annuity Starting Date for such participant.

A waiver of the Husband and Wife Pension is valid only if a written explanation of its effect has been provided to the Participant no earlier than 90 days before the Annuity Starting Date and no later than 30 days before the Annuity Starting Date. However, if the Participant, after receiving such written explanation, elects a form of distribution with his Spouse's written consent, the Annuity Starting Date may be less than 30 days after the written explanation was provided to the Participant if:

A. the written explanation clearly indicates that the Participant and Spouse have a right to at least 30 days to consider whether to waive the Husband and Wife Pension;

B. the Participant is permitted to revoke any election until the later of his Annuity Starting Date and expiration of the seven day period beginning the day after the written explanation in this Section 9.1 & 9.2 is provided to the Participant; and

C. pension payments to the Participant do not begin before expiration of the seven day period beginning the day after the written explanation in this Section 9.1 & 9.2 is provided to the Participant.

9.2 OPTIONAL FORMS OF PAYMENT.
Except for payments to be made under Article 9.6, and subject to Article 9.4, and the spousal consent requirements of Article 8.6 and 9.1 the benefits payable to a Participant, or to the designated Beneficiary of the Participant may be distributed in one of the forms of payment indicated below, as elected by the Participant (or by the Participant's designated Beneficiary, subject to the provisions of Article 8. 1):

(a) A single sum cash payment; or

(b) a non-periodic partial cash payment, but no non-periodic partial cash payment will be paid, if participant has an outstanding loan from the Plan.

The Participant's entire interest must be distributed or begin to be distributed no later than the Participant's required beginning date, as determined under Article 9.3.

The following minimum distribution rules will apply to distributions made after the required beginning date other than a single sum:

(i) The amount to be distributed each year, beginning with the first distribution calendar year, as defined in Article 8.7, will not be less than the quotient obtained by dividing the Participant's benefit by the lesser of (1) the applicable life expectancy determined under Article 8.7, or (2) if the Participant's Spouse is not the designated Beneficiary, the applicable divisor determined from the Table set froth in Q & A-4 of Section 1.401(a)(9)- 2 of the proposed regulations.

(ii) The minimum distribution required for the Participant's first distribution calendar year, as defined in Article 8.7, must be made on or before the Participant's required beginning date, as defined in Article 9.3. The minimum distribution for other calendar years, including the minimum distribution for the distribution calendar year in which the Participant's required beginning date falls, must be made on or before December 31 of that distribution calendar year.

(iii) If the Participant's benefit is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the equirements of Section 401 (a)(9) of the Code and the proposed regulations thereunder.

The terms of any annuity Contract purchased and distributed by the Plan to a Participant or the Participant's Spouse must comply with the requirements of this Plan.

9.3 REQUIRED BEGINNING DATE.
The required beginning date for a Participant is April 1 of the calendar year immediately following the calendar year in which the Participant attains age 70 1/2, provided, however, that for a Participant who reaches age 70 1/2 before 1988, the Required Beginning Date is April 1 of the calendar year in which the Participant no longer is covered by the Collective Bargaining Agreement if that is later.

9.4 BENEFITS PAYABLE UNDER QUALIFIED DOMESTIC RELATIONS ORDER.
Benefits payable under this Plan will be paid to the Participant or the Participant's designated Beneficiary upon the occurrence of a distributable event, as determined under the provisions of this Plan.

However, a distribution will be made before any distributable event occurs under this Plan, upon direction of the Plan Administrator or its designate of the Plan and if such distribution is made to an alternate payee pursuant to a qualified domestic relations order, as described in Code Section 414(p). The determination as to whether a domestic relations order is qualified will be the responsibility of the Plan Administrator or its designate.

Neither the Plan, the Employer, the Union, the Plan Administrator or its designate, nor the Trustees will be liable in any manner to any person, including any Participant or Beneficiary, for complying with any such court order or judgment.

9.5 COMMENCEMENT OF PARTICIPANT'S BENEFIT PAYMENTS.
Unless an earlier election to commence benefit payments is otherwise made by a Participant, the payment of benefits to the Participant will commence not later than the sixtieth (60th) day after the close of the Plan Year in which occurs the latest of the following events:

(a) The attainment by the Participant of age 62;

(b) The tenth (10th) anniversary of the date on which the Participant commenced participation in the Plan; or

(c) The date the Participant incurs a 6 Month Break in Service.

Except as required under Article 9.3 and this Article 9.5, this Plan will not distribute a Participant's Vested Interest (if the value exceeds, or has at the time of any prior distribution exceeded, $5,000 unless the Participant elects to commence distribution. If the Participant is married, and distribution commences before age 62, the Participant's Spouse must consent in writing to the distribution, except that, no spousal consent is required if the distribution is in the form of a joint and contingent survivor annuity. Notwithstanding the provisions of the preceding sentence, no consent from the Participant nor his Spouse is required if a distribution is made to satisfy Code Section 415 or Code Section 401(a)(9).

9.6 INVOLUNTARY CASHOUT.
Notwithstanding anything in the Plan to the contrary, if a distribution is to be made to any Participant, Spouse or Beneficiary and the Participant's Vested Interest under the Plan, if any, does not exceed or has not at the time of any prior distribution, exceeded $5,000 such Vested Interest will be paid in a single sum in full satisfaction of all liability under the Plan to such Participant or Beneficiary. In addition, the payment will be made without the consent of the Participant, and, if the Participant is married, without the consent of the Participant's Spouse.

No distribution will be made under this Article 9.6 after the first day of the first period for which an amount is received as an annuity in accordance with Article 9.