Article V. Death Benefit

Benefits provided by this Article shall not be payable if payments were due under the Joint and Survivor Option or the Ten-Year Certain Option.

  1. Death Before Age 65. In the event a Participant with at least five years of Pension Credit (or at least eight years of Pension Credit including, for purposes of this Section (1)(a) only, any years of Pension Credit which were otherwise lost due to a Permanent Break in Service) dies before retirement and before he has attained age 65, a lump sum Death Benefit equal to four times the annual Current Service Benefit which the Participant had accumulated at the time of his death, but not less than $1,500, shall be paid to his designated Beneficiary, or the person or persons selected in accordance with Section 4 of this Article. The designated beneficiary, or the person or persons selected in accordance with Section 4 of this Article may elect, within ninety (90) days after being given written notice by the Plan, to received this Death Benefit in equal monthly installments over a period not to exceed sixty (60) months, rather than in a single lump sum.
  2. Death After Age 65. If a Participant dies before retirement at a time when he has met the requirements for a Regular Pension, sixty monthly payments shall be made to his designated Beneficiary or the person or persons selected in accordance with Section 4 of this Article in an amount equal to the Regular Pension to which he would have been entitled had he retired and made application for a pension. The designated Beneficiary or the person or persons selected in accordance with Section 4 of this Article may elect, within ninety (90) days after being given written notice by the Plan, to receive these benefits in a single lump sum payment, rather than sixty (60) monthly installments. In the event a Participant with at least five years of Pension Credit (or at least eight years of Pension Credit including, for purposes of this Section (1)(b) only, any years of Pension Credit which were otherwise lost due to Permanent Break in Service) but less than ten years of Pension Credit, dies before retirement and is 65 or older, a lump sum Death Benefit equal to four times the annual Current Service Benefit which the Participant had accumulated at the time of his death, but not less than $1,500 shall be paid to his designated Beneficiary, or the person or persons selected in accordance with Section 4 of this Article. The designated beneficiary, or the person or persons selected in accordance with Section 4 of this Article may elect, within ninety (90) days after being given written notice by the Plan, to receive this Death Benefit in equal monthly installments over a period not to exceed sixty (60) months, rather than in a single lump sum.
  3. Benefits provided by this Section 1 shall not be payable if payments were due under the 50% Joint and Survivor Pension, unless the deceased Participant's surviving spouse elects, within ninety (90) days after being given written notice from the Plan, to receive these benefits instead of the 50% Joint and Survivor Pension. However, if the surviving spouse elects to receive benefits provided by this Section 1 instead of the 50% Joint and Survivor Pension and if the actuarial present value of the 50% Joint and Survivor Pension is greater than the amount of the lump sum payment under subsection (a) above or the actuarial present value of the 60 monthly payments under subsection (b) above, whichever is applicable, then the actuarial present value of the 50% Joint and Survivor Pension shall be paid to the surviving spouse as follows:
    1. If benefits are payable under subsection (a), then the amount of the lump sum benefit shall be increased so that the total amount of the lump sum benefit is equal to the actuarial present value of the 50% Joint and Survivor Pension.
    2. If the benefits are payable under subsection (b) above, then the monthly amount of the 60 monthly payments shall be increased so that the total amount of the 60 monthly payments is equal to the actuarial present value of the 50% Joint and Survivor Pension. The actuarial present value of the 50% Joint and Survivor Pension shall be determined in accordance with (i), (ii), or (iii) below, depending on the Participant's Annuity Starting Date.
      1. For an Annuity Starting Date prior to January 1, 2000, the actuarial present value of the 50% Joint and Survivor Pension shall be determined on the basis of the 1971 Group Annuity Mortality Table for Males blended 40% with no set back and 60% set back seven years. The interest assumption for the 50% Joint and Survivor Pension and the 60 monthly payments under subsection (b) above, shall be equal to the rate promulgated by the U.S. Pension Benefit Guaranty Corporation for lump sum distributions, effective as of January 1, of the calendar year that includes the Participant's Annuity Starting Date.
      2. For an Annuity Starting Date on or after January 1, 2000, but before January 1, 2002, the actuarial present value of the 50% Joint and Survivor Pension shall be determined on the basis of (A) or (B) below, whichever produces the greater actuarial present value:
        1. The actuarial present value determined on the basis set forth in Section 1(c)(2)(i) above, but using the interest rate promulgated by the U.S. Pension Benefit Guaranty Corporation for lump sum distributions, effective as of the December 1 preceding the calendar year that includes the Participant's Annuity Starting Date.
        2. The actuarial present value determined on the basis of the mortality table prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3) that is based on the prevailing commissioners' standard table (described in Code Section 807(d)(5) (A) and Revenue Ruling 95-6, 1995-1 C.B. 80) used to determine reserves for group annuity contracts issued on the Annuity Starting Date. The interest rate shall be equal to the lesser of 7% per annum or the annual rate of interest on 30-year Treasury securities as specified by the Commissioner of the Internal Revenue Service under Code Section 417(e)(3) for the month of November immediately preceding the Plan Year which contains the Annuity Starting Date.
      3. For an Annuity Starting Date on or after January 1, 2002, but before January 1, 2008, the actuarial present value of the 50% Joint and Survivor Pension shall be determined on the basis set forth in Section 1(c)(2)(ii)(B) above.
      4. For an Annuity Starting Date on or after January 1, 2008, but before January 1, 2011, the actuarial present value of the 50% Joint and Survivor Pension shall be determined using the mortality table prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3)(B) and the interest rate prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3)(C) for the month of November immediately preceding the Plan Year which contains the Annuity Starting Date.
      5. For an Annuity Starting Date during 2011, the actuarial present value of the 50% Joint and Survivor Pension shall be determined using the mortality table prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3)(B) and the interest rate prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3)(C) for August 2010 or November 2010, whichever is more favorable to the participant.
      6. For an Annuity Starting Date on or after January 1, 2012, the actuarial present value of the 50% Joint and Survivor Pension shall be determined using the mortality table prescribed by the Secretary of the Treasury pursuant to Code Section 417(e) (3)(B) and the interest rate prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3)(C) for the month of August immediately preceding the Plan Year which contains the Annuity Starting Date.
  4. If the surviving spouse dies before making the election allowed in subsection (c) and before receiving any payment under the 50% Joint and Survivor Pension, a 50% Joint and Survivor Pension in the amount accrued over the period of survival of the surviving spouse shall be paid to the estate of the surviving spouse; provided, however, that if the personal representative of the surviving spouse's estate gives a written waiver of such benefit, a death benefit may be paid under subsection (a) or subsection (b) (depending on the Participant's age at death) to the person or persons designated by the Participant as secondary Beneficiary or Beneficiaries or to the person or persons selected in accordance with Section 4 of this Article if no secondary Beneficiary was designated by the Participant.
  5. If a married Participant dies at a time when he has met the age and service requirements for a pension in accordance with Article III, but before the Annuity Starting Date of his pension, his surviving legal spouse may elect to receive the monthly amount that such spouse would have received had the participant retired on the day before his death and had elected the 100% Joint and Survivor Option as described in Section 1 of Article VII with his spouse named as the Contingent Annuitant. This benefit shall not be payable unless the Participant and his legal spouse have been married throughout the one-year period ending on the Participant's date of death. If benefits under this subsection are elected, no other Death Benefit is payable.
     

Section 2. Death After Retirement.

In the event a Pensioner receiving a Regular, Early Retirement, Disability, Service, Vested or Pro Rata Pension dies before receiving 60 monthly payments, monthly payments shall be continued to the retired Participant's Beneficiary, or the person or persons selected in accordance with Section 4 of this Article, until a total of 60 monthly payments have been paid to the Pensioner and his Beneficiary, or persons selected in accordance with Section 4 of this Article, combined. Benefits provided by this Section 2 shall not be payable if payments were due under the 50% Joint and Survivor Pension, Joint and Survivor Option or Ten-Year Certain Option.

Section 3. Designation of Beneficiary.

A Participant or Pensioner may designate a Beneficiary or Beneficiaries to receive any payments due and payable but not actually paid prior to the death of the Pensioner or any benefits provided in accordance with this Article V or Section 2 of Article VII by forwarding such designation on a form acceptable to the Plan Trustees. A Participant or Pensioner shall have the right to change his designation of Beneficiary without the consent of the Beneficiary, but no such change shall be effective or binding on the Plan Trustees unless it is received by the Plan Trustees prior to the time any payments are made to the Beneficiary whose designation is on file with the Plan Trustees. Any payments due and payable but not actually paid prior to the death of the Pensioner or any benefit provided in accordance with Article V or Section 2 of Article VII shall be paid to such designated Beneficiary. If such designated Beneficiary, who has survived the Participant or Pensioner and is entitled to the benefits, dies prior to the receipt of the payment of benefits, such benefits shall be paid in accordance with the procedure provided in Section 4 of this Article.

Section 4. Lack of Beneficiary.

If no Beneficiary is designated by a Participant, or if no designated Beneficiary survives the Participant or Pensioner, or if the designated Beneficiary survives but then dies prior to having received all of the payments which otherwise would have been payable to him, then any portion of the benefits provided under this Article V or Section 2 of Article VII which remains unpaid at the time of the Participant's death, or, in case it is the Beneficiary who has died, at the time of the Beneficiary's death, shall be paid to the first surviving class of the following classes of successive preference Beneficiaries: The Participant's or Pensioner's (a) widow or widower; (b) surviving children (including by right of representation the issue of any deceased child or children); (c) surviving parents; (d) surviving brothers and sisters; (e) any other person or persons who is an object of natural bounty of the deceased as selected by the Plan Trustees.

Section 5. Effect of Qualified Domestic Relations Order.

The rights of a prior spouse or other family member to any share of a Participant's benefit as set forth under a "qualified domestic relations order" as defined in Section 206(d)(3) of ERISA, shall take precedence over any claims of the beneficiary or other person entitled to benefits under this Article, at the time of the Participant's death.