If you leave the Company for any reason after completing at least five years of Credited Service, you are “vested.” Being vested means you have a nonforfeitable right to receive plan benefits.

Credited service generally means the time you work at the Company, from your first hour of service until you sever from service.

Further discussion follows on Credited Service and Severance from Service.

Benefit Amount
The amount of your vested pension payable at age 65 depends on your average straight-time earnings (including executive incentive compensation, shift differential and hourly COLA), your total Company Service at the time you leave the Company, and your age at the time you want your pension payments to begin.  The three formulas described previously are used to calculate your pension, but with these differences:

• The flat amount of $18 per month under the Minimum formula will be multiplied by a “service fraction.” This fraction is your actual years of Company Service divided by your years of Company Service that would be credited had you continued with the Company until age 65.
• If your vested benefit is calculated using the Minimum formula and you have less than ten years of Company Service, that part of the formula using 10% of your average straight-time earnings will be reduced by 1% for each full year less than ten.

Payment of Benefits
Vested benefits normally become payable at age 65.  However, you can elect to receive a reduced benefit as early as age 50, but the benefit will be calculated as described in this section, and not as an early retirement benefit.  The amount of the reduction will depend on how many years before age 65 you elect to begin benefits.  The reduction is 6 2/3% for each year before age 65, for up to three years (age 62).  In addition, the reduction is 5% for each year before age 62 that plan payments start.  For example, if you leave the Company and begin receiving your pension at age 60, your benefit will be reduced 30%, that is 20% for the years between 65 and 62 (6 2/3% x 3) plus 10% for the years between 60 and 62 (5% x 2).

Your benefits will begin on the first of the month following receipt of your written request.  If you are married at the time of your request, your benefit will automatically be paid as a 50% joint and survivor benefit, unless you elect otherwise with your spouse’s written consent witnessed by a notary public or representative of the Plan Administrator.  If your benefit is paid in the 50% joint and survivor form, it will be reduced according to Table 3 at the end of this section.  It will also be reduced for each year that pre-retirement coverage is in effect as described later in this section.

Pre-Retirement Spouse’s Benefit
If you leave the Company with vested benefits and you die before plan payments begin, your spouse may be eligible to receive a pre-retirement benefit equal to 50% of the benefit you would have received under the 50% joint and survivor benefit.  Your spouse will be eligible if:

• you and your spouse have been married at least one year at the time of your death, and
• you did not waive this pre-retirement benefit option at the time you terminated.

To waive this optional coverage, you must have your spouse’s written and witnessed consent.

If you die after age 50, payments will begin on the first of the month following your death.  If you die before age 50, payments will begin on the first of the month following the date you would have reached age 50.

Your pension payments, as well as payments to your spouse, will be reduced for receipt as a 50% joint and survivor benefit (see Table 3 at the end of this section), and for each year or part of a year that the pre-retirement coverage is in effect after your termination, as shown below:

For each year of coverage after termination:	Your pension reduction will be:
Under age 45	.10%
From age 45 to age 55	.20%
From age 55 to age 65	.50%

Forfeiture of Benefits
If your employment terminates before you have completed five years of Credited Service, you will forfeit your right to any plan benefits.