News articles often refer to defined contribution plans, defined benefit plans, 401k’s, and other retirement arrangements. The Pension Plan is a “defined benefit plan.” This type of plan pays a monthly retirement benefit based on the Plan’s defined formula that takes into account years of Credited Service and rates established by the Board of Trustees. Since there is not a separate account with a dollar balance of contributions made on your behalf, the amount of your benefit is not affected by changes in the stock market or other investments.

A pension rate is established by the Board of Trustees for every contribution rate paid by an employer on behalf of its employees:

Employer’s Hourly Contribution Rate	Monthly Pension Rate
57¢ or more	$53.00
52¢	48.00
47¢	22.00
42¢	20.00
37¢	18.00
32¢	16.00
27¢	14.00
22¢	12.00
17¢	10.00
16¢	9.00
15¢	8.00
14¢	7.50
13¢	7.00
12¢	6.50
10¢ or 11¢	6.30
8¢ or less	5.80

Your Normal Pension is the pension payable to you at your Normal Retirement Age with no reductions for early retirement or for optional forms of payment.

To determine your Normal Pension amount:

• For your years of Credited Service earned through 2000: In the table above, find the Monthly Pension Rate that corresponds to the Hourly Contribution Rate for your most recent year (through 2000) of Credited Service. Multiply the Monthly Pension Rate by your total years of Credited Service. This is your monthly pension amount for service earned through 2000.
• For Credited Service earned in 2001 and after: The Monthly Pension Rate for each individual year of Credited Service will be based on the Hourly Contribution Rate paid by your employer for that year. First, multiply the Monthly Pension Rate for each year by your Credited Service earned for that year. Then, add up the amounts you have calculated. This is your monthly pension amount for service earned after 2000.
• Total Pension Amount: If you have Credited Service both before and after 2001, add together the two amounts you calculated above. This is your monthly Normal Pension amount.

• You are retiring at age 60 on December 1, 2002
• You earned 23 years of Credited Service through 2000 and your employer’s Hourly Contribution Rate was 52¢
• You earned 2 years of Credited Service after 2000 and your employer’s Hourly Contribution Rate increased in 2001 to 57¢

Your monthly Normal Pension will be:

23 years of Credited Service earned through 12/2000 x $48	= $1,104
1 year of Credited Service earned for 2001 x $53	= $53
1 year of Credited Service earned for 2002 x $53	= $53
Monthly Normal Pension payable for your lifetime	= $1,210

Your Early Pension is the pension payable to you as early as age 55 if you have earned at least 10 years of Eligibility Service without a Break-in-Service. An Early Pension that begins before your Normal Retirement Age, is payable in a reduced amount because you will be receiving pension payments for a longer period of time.

To determine your monthly Early Pension amount:

	First, determine your Normal Pension amount by following the steps above.
	Then reduce this amount by 1/3 of 1% for each month (4% per year) that you retire before your Normal Retirement Age.

This is your Early Pension payable with no reduction for optional forms of payment.

The following table shows the percentage of your Normal Pension that would be payable as an Early Pension at various ages:

Age at Retirement	Percent of Normal Pension Payable as an Early Pension*
64	100%
63	100%
62	100%
61	100%
60	100%
59	96%
58	92%
57	88%
56	84%
55	80%
*factors based on Normal Retirement Age 60

Example:

• You are retiring at age 58 on December 1, 2002, 24 months (2 years) before your Normal Retirement Age of 60
• You earned 23 years of Credited Service through 2000 and your employer’s Hourly Contribution Rate was 52¢
• You earned 2 years of Credited Service after 2000 and your employer’s Hourly Contribution Rate increased in 2001 to 57¢

23 years of Credited Service earned through 12/2000 x $48	= $1,104
1 year of Credited Service earned for 2001 x $53	= $53
1 year of Credited Service earned for 2002 x $53	= $53
Monthly Normal Pension payable for your lifetime	= $1,210

Then calculate your monthly Early Pension:

Early Reduction Amount of 1/3 of 1% x 24 months x $1,210	= $96.80
Reduction Amount subtracted from Normal Pension amount	= $1,113.20

Your monthly Early Pension payable for your lifetime will be $1,113.20.

Your Disability Pension is the pension payable to you at any age if you become permanently disabled. Refer to the Disability Retirement requirements listed on the “Retirement Ages and Types” page of this Web site.

Your monthly Disability Pension amount is the same as your Normal Pension amount. See Determining Your Normal Pension Amount above to determine the amount of your Disability Pension.