Defined Benefit Pension Plan SPD - uphs

Early Retirement BenefitIf you retire early (any time after age 55 if you have five or more years of Vesting Service), you can chooseto begin receiving your monthly benefits before you reach your Normal Retirement Age. If you choose tostart your benefits before Normal Retirement Age, however, your benefits will be reduced because thePlan may have to pay benefits to you over a longer period of time. Your retirement benefits will bereduced by:• First 60 Months – 5/9 of 1% for each of the first 60 months that your benefits start before your NormalRetirement Age• Next 60 Months – 5/18 of 1% for each of the next 60 months that your benefits start before yourNormal Retirement AgeBy way of example, early retirees will receive the following percentages of their normal retirement benefit:Age 55 - 50%Age 60 - 66.67%Age 62 - 80%Age 63 - 86.67%Age 64 - 93.33%Example 3: This example shows how the Plan's benefit formula would work for someone who retiresearly. Assume that Anne retires at age 55 with 25 years of Benefit Accrual Service, that her Final AverageEarnings is $21,300, and that she elects to receive her retirement benefit immediately. Given thesefactors, Anne's monthly early retirement benefit would be calculated as follows:Anne's Final Average Earnings $21,300multiplied byPercentage Multiplier of 1.25% 1.25%multiplied byAnne's Years of Benefit Accrual Service 25multiplied by50% Early Retirement Reduction .50%divided by12 months 12equalsMonthly Plan Benefit $277.34The example shows that Anne would receive a monthly benefit of $277.34 for life, beginning at age 55.Note that if Anne had elected to retire at age 55 but postponed the start of her benefits until NormalRetirement Age, she would have received a full monthly normal retirement benefit of $554.69 (not reducedby 50% for early retirement).Postponed Retirement BenefitYou may continue to work beyond your Normal Retirement Age. If you delay retirement beyond yourNormal Retirement Age, your monthly benefit generally will start being paid to you when you retire.However, there may be some circumstances in which you can start receiving your benefits at your NormalRetirement Age if you are engaged in part-time employment. (See the "Special Situations" section formore information about in-service distributions on or after Normal Retirement Age). Benefits are requiredto begin no later than April 1 following the calendar year in which you reach 70½ or if later, terminateemployment with a Related Employer ("required beginning date"). You should also be sure that youunderstand how your benefits will be calculated if you delay payment until after Normal Retirement Age.(See the "Special Situations" section for information about suspension of benefits). If you have anyquestions about how these Plan provisions work, you should contact the UPHS Benefits Office at theaddress and phone number set forth in the "General Information" section.9