U.S. Bank Pension Plan Summary Plan Description

U.S. Bank Pension Plan SPD Effective January 2011
In the year 2016, Max is 65 years old and has 15 years of benefit service with U.S. Bank after the
Plan's effective date of January 1, 2002. In the 10 years prior to his retirement date, his final
average total pay is $80,000 and his final average base pay is $70,000. His average total pay in
excess of covered compensation is $5,000 (note: this example uses Max’s 2010 social security
covered compensation level for purposes of illustration). Also, the lifetime annuity commencing
at age 65 that Max earned under the prior plan is $5,500 a year.
Formula 1 – Total Pay Formula
A Portion Prior Plan Benefit $5,500
B Portion 0.9% of Final Average Total Pay times benefit
service beginning on or after January 1, 2002
(.009 x $80,000 x 15)
0.5% of Final Average Total Pay in excess of
Covered Compensation times benefit service
beginning on or after January 1, 2002
(.005 x $5,000 x 15)
14
$10,800
+ $375
Total Annual Benefit $16,675
Formula 2 – Base Pay Formula
A Portion Prior Plan Benefit $5,500
B Portion 1.2% of Final Average Base Pay times benefit
service beginning on or after January 1, 2002
(.012 x $70,000 x 15) $12,600
Total Annual Benefit $18,100
Formula 2 will provide Max with a larger total annual benefit than Formula 1. So, Max's benefit
will be determined by using Formula 2. Max's monthly payments will equal 1/12th of his total
annual pension benefit. Since Max's total annual benefit is $18,100, the benefit he is paid each
month for his life will be $1,508.33 ($18,100 divided by 12).
WHEN YOUR BENEFITS COMMENCE
Normal Retirement
If your employment ends on or after your 65th birthday, you can begin receiving your benefit as
early as the first day of the month after your termination of employment.
Required Beginning Date
Your benefit payments must begin no later than April 1 of the year after you attain age 70-1/2,
even if you are still employed by U.S. Bank.