PENSION DISTRIBUTION - LEAVING PAYROLL BEFORE 12/31/xx

Prior to 2005; we had 60 days to request a Lump Sum, but today that IS
NO LONGER TRUE.  The 2004 Collective Bargaining Agreement [Election
Period – Page 253/254] eliminated that limitation.

The only limitation we now have electing a lump sum is the need to do so
before Age 65.

An Employee can leave the payroll prior to 12/31; and defer their lump
sum election until the following year [or after; as long as they do so
prior to age 65].

In this case; the employee is entitled to receive the GATT Rate, Age and
Mortality Table in effect for the year the lump sum is distributed.

Pension band increases for the following year[s] DO NOT APPLY.

Entitlement to vacation for the following year’s DO NOT APPLY.

The 2007 GATT rate was 4.69% - 2008 GATT rate is currently 4.52% - 2009 is now set at 4.00%.

When the GATT rate goes down; lump sum values go up. If the rate goes
up; the lump sum value goes down.

RETIREMENTS 1/1/xx [when possible]
In order to gain next years GATT rate, next year's pension band increase
and next year’s vacation; an employee must declare their last day on
payroll as 1/1/xx or after.

RETIREMENTS 12/31/xx [when possible]
The 12//31/xx date is used as the last day on payroll when the employee
wants the current year’s GATT Rate and next year's vacation*; however
they are not entitled to any band increase for the following year.

*Vacation Year – Defined in Article 2 as Dec 31 – Dec 30. Legacy SBC
policy is that an employee has to work one day into the vacation year to
gain access to 2009 PENSION BAND INCREASE there is a pension band increase effective 1/1/09 @ 2.25% + applicable cola.

The above is a very general outline only; if you are thinking of retiring, please call the Hall and speak to your Benefit Rep., Kim Egan, with any questions.