Article VII. Optional Forms Of Pension

Section 1. Joint and Survivor Options.

Benefits provided by this Section shall not be payable if payments are due under the 50% Joint and Survivor Pension.
In lieu of the pension otherwise payable to him a Participant may elect to receive a Joint and Survivor Option with his monthly pension reduced but with 100% or 75% of such monthly pension continuing after his death for the lifetime of a Contingent Annuitant named by him, subject to the provisions of Section 5 of Article VIII. The 75% Joint and Survivor Option is only available for Annuity Starting Dates on or after January 1, 2008.
a.    When a 100% Joint and Survivor Option becomes effective, the amount of the Participant's monthly pension will be reduced in accordance with the following:
1.    For an Annuity Starting Date prior to February 1, 2006, the pension amount shall be adjusted as follows:
i.    Non-Disability Pensions. If payment of a pension, other than a Disability Pension, is to be made in the form of a 100% Joint and Survivor Option, the pension amount shall be adjusted by multiplying it by the following percentage: 83.0 percent minus .5 percentage points for each year the Contingent Annuitant's age is less than the Participant's age or plus .5 percentage points for each year the Contingent Annuitant's age is greater than the Participant's age; provided, however, that in no event shall the resulting percentage be greater than 100.0 percent.
ii.    Disability Pensions. If payment of a Disability Pension is to be made in the form of a 100% Joint and Survivor Option, the pension amount shall be adjusted by multiplying it by the following percentage: 68.0 percent minus .5 percentage points for each year the Contingent Annuitant's age is less than the Participant's age or plus .5 percentage points for each year the Contingent Annuitant's age is greater than the Participant's age; provided, however that in no event shall the resulting percentage be greater than 100.0 percent.
2.    For an Annuity Starting Date on or after February 1, 2006, the pension amount shall be adjusted by multiplying it by the actuarial equivalent factor determined using the mortality table as described in Section 417(e) of the Internal Revenue Code and as specified in Revenue Ruling 2001-62, and an interest rate of 6.50%. However, in no event shall the resulting amount be less than the pension amount accrued through January 31, 2006 reduced according to the basis set forth in Section 1(a)(1) above.
The Joint and Survivor Option shall not be payable if it would result in a monthly benefit of less than $30 to the Participant.
b.    When a 75% Joint and Survivor Option becomes effective, the amount of the Participant's monthly pension will be adjusted by multiplying it by the actuarial equivalent factor determined using the mortality table as described in Section 417(e) of the Internal Revenue Code and as specified in Revenue Ruling 2001-62, and an interest rate of 6.50%. The 75% Joint and Survivor Option shall not be payable if it would result in a monthly benefit of less than $30 to the Participant. The 75% Joint and Survivor Option shall not be payable for Annuity Starting Dates prior to January 1, 1008.
c.    Election of the Joint and Survivor Option shall be subject to the following conditions:
1.    It must be made in writing in a form prescribed by the Plan Trustees and filed with the Plan Trustees prior to the date the first pension payment is made.
2.    The Joint and Survivor Option shall take effect only if the Participant and his Contingent Annuitant are both alive on the date when it is to take effect.
d.    Once elected the Joint and Survivor Option may not be revoked, except under the following conditions:
1.    Revocation must be made in writing on a form prescribed by the Plan Trustees and filed with the Plan Trustees prior to the date the first pension payment is made.
2.    The Option shall be automatically revoked if the Contingent Annuitant dies or (if the Contingent Annuitant is the Participant's spouse) is divorced from the Participant before a pension in the optional form becomes payable. In such event, the Participant may continue the Option if within 90 days of such an event he makes a choice of another Contingent Annuitant and communicates it to the Plan Trustees in writing.
e.    Notice will be provided by the Plan to the Participant including an explanation of the relative value of the optional forms of benefits provided hereunder.

Section 2. Ten-Year Certain Option.

Benefits provided by this Section shall not be payable if payments are due under the 50% Joint and Survivor Pension.
In lieu of the Pension otherwise available to him a Participant who is eligible to receive a Regular, Early Retirement, Vested, Service or Pro Rata Pension, may elect to receive a Ten-Year Certain Option whereby the amount of his monthly pension will be reduced but will continue, after his death, to his Beneficiary if he dies before receiving 120 monthly pension payments. Payments to his Beneficiary will continue until an aggregate of 120 payments have been made to the Pensioner and his Beneficiary.
a.    When a Ten-Year Certain Option becomes effective, the pension amount shall be adjusted by multiplying it by the appropriate factor for the Participant's age in accordance with the table on the right. Months as well as years of attained age shall be taken into account, and the factor for each month in excess of an attained age shall be interpolated from the table.

Ten-Year Certain Option

55 98.20%
56 98.01%
57 97.80%
58 97.56%
59 97.29%
60 96.98%
61 96.64%
62 96.25%
63 95.81%
64 95.33%
65 94.79%
66 94.20%
67 93.55%
68 92.86%
69 92.12%
70 91.32%
71 90.46%
72 89.54%
73 88.55%
74 87.50%
75 86.37%
76 85.19%
77 83.96%
78 82.69%
79 81.41%
80 80.10%
81 78.80%
82 77.49%
83 76.21%
84 74.95%
85 73.72%
86 72.54%
87 71.39%
88 70.29%
89 69.23%
90 68.20%

The Ten-Year Option shall not be available if it would result in a monthly Pension of less than $30 to the Participant, nor shall it be available if the life expectancy of the Participant, or the life expectancy of the Participant and his Beneficiary is less than 10 years.

  1. b.    Election of the Ten-Year Certain Option must be made in writing on a form prescribed by the Plan Trustees and filed with the Plan Trustees prior to the date the first pension payment is made.
  2. c.    The Ten-Year Certain Option may be revoked by a Participant at any time provided that such revocation must be made in writing on a form prescribed by the Plan Trustees and filed with the Plan Trustees prior to the effective date of the pension.

Section 3. Partial Lump Sum Payment Option.

Benefits provided by this Section shall not be payable if payments are due under the 50% Joint and Survivor Pension.
In lieu of the pension otherwise payable to him a Participant may elect to receive a Partial Lump Sum Payment Option whereby he receives a lump sum payment upon retirement with monthly payments continuing thereafter in accordance with a 50% Joint and Survivor Pension, a Five-Year Certain Pension, a Joint and Survivor Option or a Ten-Year Certain Option, whichever he elects.
a.    When a Partial Lump Sum Payment Option becomes effective the amount of the Participant's benefit shall be determined as follows:
1.    The Partial Lump Sum Payment shall be equal to twelve times the monthly payment the Participant would have received on his Annuity Starting Date under the Five-Year Certain form of payment.
2.    The Participant's monthly benefit payable thereafter shall be reduced to reflect the Partial Lump Sum Payment described in paragraph (1) above. The amount of the reduction shall be equal to the actuarial equivalent of the Partial Lump Sum Payment based on the Participant's age on the Annuity Starting Date and the actuarial assumptions outlined in paragraph (3) of this subsection (a). The Participant may elect to receive his reduced monthly benefit in any of the forms of payment provided by the Plan, subject to all of the requirements applicable to such forms of payment.
3.     
i.    For a Partial Lump Sum Payment option with an Annuity Starting Date prior to January 1, 2000, the actuarial equivalent of a nondisability pension shall be determined on the basis of the 1971 Group Annuity Mortality Table for Males, blended 60% with no set back and 40% set back seven years. The actuarial equivalent of a disability pension shall be determined on the basis of 60% of the PBGC Mortality Table for disabled males receiving Social Security benefits and 40% of the PBGC Mortality Table for disabled females receiving Social Security benefits. The interest rate shall be equal to the lesser of 7 percent per annum or the rate promulgated by the Pension Benefit Guaranty Corporation, effective as of January 1 of the calendar year in which the payment is due to commence, for the valuation of lump sum distributions in terminated single-employer pension plans.
ii.    For a Partial Lump Sum Payment Option with an Annuity Starting Date on or after January 1, 2000, but before January 1, 2002, the actuarial equivalent shall be determined on the basis of (A) or (B) below, whichever produces the greater monthly benefit under Section 3(a)(2) of this Article VII:
A.    The actuarial equivalent determined on the basis set forth in Section 3(a)(3)(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.
B.    The actuarial equivalent 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.
iii.    For a Partial Lump Sum Option with an Annuity Starting Date on or after January 1, 2002, but before January 1, 2008, the actuarial equivalent shall be determined on the basis set forth in Section 3(a)(3)(ii) (B) above.
iv.    For a Partial Lump Sum Payment option with an Annuity Starting Date on or after January 1, 2008, but before January 1, 2011 the actuarial equivalent 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.
v.    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.
vi.    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.
b.    After a Partial Lump Sum Payment has been made to a Participant, the amount of the Partial Lump Sum Payment will not be adjusted and an additional Partial Lump Sum Payment will not be payable under this Section 3. as a result of any changes made to the Participant's pension benefit including but not limited to the receipt of additional earnings credited either before or after the Annuity Starting Date.
c.    The Partial Lump Sum Payment Option will not be available to a Guild Office Participant for the benefit earned under the Guild Plan if such Guild Office Participant elected to receive such accrued benefit under an optional form of payment solely available under Appendix A.

Section 4. Pop-Up Option.

a.    Generally. Effective January 1, 1995, this Option shall be available to unmarried Participants electing the 100% Joint and Survivor Option, and, subject to spousal consent as required by Article IV, Section 6(d), to married Participants whose benefits are to be paid as a 50% Joint and Survivor Pension or who are electing to receive the 100% Joint and Survivor Option. Effective January 1, 2008, this Option shall be available to Participants who are electing to receive the 75% Joint and Survivor Option, subject to spousal consent as required by Article IV, Section 6(d). Under the Pop-Up Option, the Participant will receive a lower monthly amount during the joint lives of the Participant and Spouse or Contingent Annuitant, provided that if the Spouse or Contingent Annuitant predeceases the Participant, then, commencing on the first day of the month following the month in which such death occurs, the monthly amount payable to the Participant shall be increased so as to equal the monthly pension which would have been payable had the Participant's benefit been paid in the form of a 5-year certain and life annuity at the time the 50% Joint and Survivor Pension or Joint and Survivor Option was effective. Such increased monthly amount shall be payable for the lifetime of the Participant, and shall cease upon the Participant's death. However, if the Participant dies before receiving 60 monthly payments (including all payments received under the 50% Joint and Survivor Pension or Joint and Survivor Option), monthly payments in the amount the Participant was receiving at the time of death will be made to the designated beneficiary until a total of 60 payments have been made to the Participant and beneficiary combined.
b.    Adjustment of Pension Amount.
1.    50% Joint and Survivor Pension with Pop-Up Option. When a 50% Joint and Survivor Pension with the Pop-Up Option becomes effective, the amount of the Participant's monthly pension shall be reduced in accordance with the following:
i.    For an Annuity Starting Date prior to February 1, 2006, the pension amount shall be adjusted as follows:
A.    Non-Disability Pensions. If payment of a pension other than a Disability Pension is to be made in the form of a 50% Joint and Survivor Pension with the Pop-Up Option, the pension amount shall be adjusted by multiplying it by the following percentage: 90 percent minus .4 percentage points for each year by which the Spouse or Contingent Annuitant is younger than the Participant or plus .4 percentage points for each year by which the Spouse or Contingent Annuitant is older than the Participant; provided, however, that in no event shall the resulting percentage be greater than 100.0 percent.
B.    Disability Pensions. If payment of a Disability Pension is to be made in the form of a 50% Joint and Survivor Pension with the Pop-Up-Option, the pension amount shall be adjusted by multiplying it by the following percentage: 81.5 percent minus .4 percentage points for each year by which the Spouse or Contingent Annuitant is younger than the Participant or plus .4 percentage points for each year by which the Spouse or Contingent Annuitant is older than the Participant; provided, however, that in no event shall the resulting percentage be greater than 100.0 percent.
ii.    For an Annuity Starting Date on or after February 1, 2006, the pension amount shall be adjusted by multiplying it by the actuarial equivalent factor determined using the mortality table as described in Section 417(e) of the Internal Revenue Code and as specified in Revenue Ruling 2001-62, and an interest rate of 6.50%. However, in no event shall the resulting amount be less than the pension amount accrued through January 31, 2006 reduced according to the basis set forth in Section 4(b(1)(i) above.
2.    100% Joint and Survivor Option with Pop-Up Option. When a 100% Joint and Survivor Option with the Pop-Up Option becomes effective, the amount of the Participant's monthly pension shall be reduced in accordance with the following:
i.    For an Annuity Starting Date prior to February 1, 2006, the pension amount shall be adjusted as follows:
A.    Non-Disability Pensions. If payment of a pension other than a Disability Pension is to be made in the form of a 100% Joint and Survivor Option with the Pop-Up Option, the pension amount shall be adjusted by multiplying it by the following percentage: 81.5 percent minus .5 percentage points for each year by which the Contingent Annuitant is younger than the Participant or plus .5 percentage points for each year by which the Contingent Annuitant is older than the Participant; provided, however, that in no event shall the resulting percentage be greater than 100.0 percent.
B.    Disability Pensions. If payment of a Disability Pension is to be made in the form of a 100% Joint and Survivor Option with the Pop-Up Option, the pension amount shall be adjusted by multiplying it by the following percentage: 66 percent minus .5 percentage points for each year by which the Contingent Annuitant is younger than the Participant or plus .5 percentage points for each year by which the Contingent Annuitant is older than the Participant; provided, however, that in no event shall the resulting percentage be greater than 100.0 percent.
ii.    For an Annuity Starting Date on or after February 1, 2006, the pension amount shall be adjusted by multiplying it by the actuarial equivalent factor determined using the mortality table as described in Section 417(e) of the Internal Revenue Code and as specified in Revenue Ruling 2001-62, and an interest rate of 6.50%. However, in no event shall the resulting amount be less than the pension amount accrued through January 31, 2006 reduced according to the basis set forth in Section 4(b)(2)(i) above.
3.    75% Joint and Survivor Option with Pop-Up Option. When a 75% Joint and Survivor Option with the Pop-Up Option becomes effective, the amount of the Participant's monthly pension shall be adjusted by multiplying it by the actuarial equivalent factor determined using the mortality table as described in Section 417(e) of the Internal Revenue Code and as specified in Revenue Ruling 2001-62, and an interest rate of 6.50%.