Central States, Southeast and Southwest Areas Pension Plan

Item #9 

Does the application include a demonstration that the limitations on individual suspensions are 

satisfied, including calculations regarding:

• the guarantee-based limitation,

• the disability-based limitation, and

• the age-based limitation.

See section 4.01. 

The demonstration is attached as document number 9.1. Detailed calculation examples are 

attached as document number 9.2. 

9.0
4.01 Demonstration that limitations on individual suspensions are satisfied. 

There are three limitations on the benefit suspensions that can apply to individual participants:

• The section 432(e)(9)(D)(i) guarantee-based limitation 

• The section 432(e)(9)(D)(ii) age-based limitation 

• The section 432(e)(9)(D)(iii) disability-based limitation 

Below are descriptions of the operation of each of these limitations, followed by detailed 

calculation examples that illustrate how each limitation affects participants in each category 

identified in section 2.02(3) of Revenue Procedure 2015-34.

Guarantee-Based Limitation 

Under section 432(e)(9)(D)(i), a participant’s pension cannot be reduced below 110% of the 

amount that the PBGC would guarantee if the Plan were to become insolvent. The calculation of 

the PBGC guarantee considers both the years of service that have been worked and rate of 

benefit accrual that the Plan has credited. 

The maximum monthly benefit that the PBGC will guarantee is $35.75 for each year of service 

that has been earned. Thus, for a participant with 30 years of service, the maximum PBGC 

guarantee is $1,072.50 per month. 110% of this amount is $1,179.75. 

The PBGC formula generally does not guarantee all benefits that have been earned. For example, 

in order for a participant with 30 years of service to receive the maximum monthly PBGC benefit 

of $1,072.50, the benefit payable from the Plan would have to be higher than this amount. Also, 

it means that participants with benefits from the Plan that are below the PBGC maximum 

guarantee would generally receive less than their full benefits under the PBGC guarantee 

formula.

To calculate the PBGC guarantee amount, it is first necessary to calculate the rate of monthly 

benefit accrual that the Plan has provided. This is equal to the monthly benefit payable from the 

Plan, divided by the years of credited service that have been earned. The amount of the guarantee 

is then equal to 100% of the first $11 of the monthly benefit accrual rate, plus 75% of the next 

$33 of the monthly benefit accrual rate, times the years of credited service. There is no limit to 

the total years of service that are credited for calculating the guaranteed benefit.

The guaranteed monthly benefit, therefore, is limited to $35.75 per month (($11 x 100%) + ($33 

x 75%) = $35.75) times a participant's year of credited service. For example, if a participant has 

30 years of service, the maximum benefit guaranteed by the PBGC is $35.75 x 30 = $1,072.50. 

If the application of the benefit suspension formula for benefits attributable to Tier 2 and Tier 3 

contributions would result in a benefit that is below 110% of the PBGC guarantee for a particular 

participant, then that participant’s benefit would not be reduced below 110% of the PBGC 

9.1.1
guarantee. Benefits attributable to Tier 1 contributions are always reduced to 110 of the PBGC 

guarantee, unless either the age-based or disability-based limitations apply. 

Age-Based Limitation

Section 432(e)(9)(D)(ii) provides that if a participant is 80 or older as of the end of the month 

containing the effective date of the benefit reduction, in this case July 31, 2016, the participant 

will not be subject to any reduction. All benefits payable to participants who meet this condition 

are fully protected from benefit reductions. 

Pension benefit reductions for participants who are at least 75 but less than 80 as of July 31, 

2016 are determined by the number of months remaining until the participant reaches 80 divided 

by 60 months. For example, if a participant is exactly 78 years old as of July 31, 2016, there are 

still 24 months remaining until the participant reaches 80 years of age. Dividing 24 months by 60 

months results in a fraction equal to 0.4. 

So if, for example, the maximum amount of benefit reduction that could apply to a 78-year old 

participant (after taking into account the benefit suspension formula, the guarantee-based 

limitation and the disability-based limitation) is $500 per month, then the age-based limitation

would restrict this maximum reduction to $200 per month (0.4 x $500). If the benefit suspension 

formula would otherwise result in a greater benefit reduction, that amount would be overridden 

so that the actual reduction amount applied to this participant would be $200 per month. 

In the case of the surviving spouse of a participant who is deceased as of July 1, 2016, the 

surviving spouse’s age as of July 31, 2016 is used to determine whether the age-based limitation

applies to the benefit. However, if a participant is not deceased as of July 1, 2016, the 

participant’s age as of July 31, 2016 will be used to determine the age-based limitation for a joint 

and survivor. 

If a benefit has been split in a divorce in accordance with a Qualified Domestic Relations Order 

(“QDRO”), the application of the age-based limitation to the alternate payee’s benefit depends 

on the type of QDRO. For a shared interest QDRO in which the alternate payee receives a 

portion of each benefit payment, but the participant retains the right to choose the time and form 

of the payments, it is the participant’s age as of July 31, 2016 that will determine the age-based 

limitation. However, for a separate interest QDRO where the alternate payee has a right to 

receive benefits at a different time and in a different form from the participant, the alternate 

payee’s age as of July 31, 2016 will determine the age-based limitation. 

Disability-Based Limitation 

Disability benefits under the Plan cannot be reduced under MPRA. Additionally, if a participant 

receiving a disability benefit under the terms of the Plan converts to a retirement pension under 

the Plan, that participant’s benefits cannot be reduced below the amount of the disability benefit 

received prior to the conversion. 

9.1.2
Calculation Examples 

Document number 9.2 contains detailed calculation examples showing the operation of each 

limitation for a participant in each category identified in section 2.02(3) of Revenue Procedure 

2015-34. 

9.1.3
Central States, Southeast and Southwest Areas Pension Plan

GUARANTEE-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(1) 

DISABILITY-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(2) 

AGE-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(3) 

GUARANTEE-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(1) 

DISABILITY-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(2) 

AGE-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(3) 

GUARANTEE-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(1) 

DISABILITY-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(2) 

AGE-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(3) 

GUARANTEE-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(1) 

DISABILITY-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(2) 

AGE-BASED 

LIMITATION

Rev. Proc. 2015-34 

Section 4.01(3) 

TIER 1

EXAMPLE 13 

110% OF PBGC 

GUARANTEE

EXAMPLE 14 

110% OF PBGC 

GUARANTEE

EXAMPLE 15 

110% OF PBGC 

GUARANTEE

EXAMPLE 16 

110% OF PBGC 

GUARANTEE

EXAMPLE 17 

110% OF PBGC 

GUARANTEE

EXAMPLE 18 

110% OF PBGC 

GUARANTEE

EXAMPLE 19 

110% OF PBGC 

GUARANTEE

EXAMPLE 20 

110% OF PBGC 

GUARANTEE

EXAMPLE 21 

110% OF PBGC 

GUARANTEE

EXAMPLE 22 

110% OF PBGC 

GUARANTEE

EXAMPLE 23 

110% OF PBGC 

GUARANTEE

EXAMPLE 24 

110% OF PBGC 

GUARANTEE

TIER 2

EXAMPLE 25-25A

1% OF TIER 2 

CONTRIBUTIONS

NO CAP

EXAMPLE 26

1% OF TIER 2 

CONTRIBUTIONS

NO CAP

EXAMPLE 27

1% OF TIER 2 

CONTRIBUTIONS

NO CAP

EXAMPLE 28

1% OF TIER 2 

CONTRIBUTIONS

50% CAP

EXAMPLE 29

1% OF TIER 2 

CONTRIBUTIONS

50% CAP

EXAMPLE 30

1% OF TIER 2 

CONTRIBUTIONS

50% CAP

EXAMPLE 31

.5% OF TIER 2 

CONTRIBUTIONS

NO CAP

EXAMPLE 32

.5% OF TIER 2 

CONTRIBUTIONS

NO CAP

EXAMPLE 33

.5% OF TIER 2 

CONTRIBUTIONS

NO CAP

EXAMPLE 34

1% OF TIER 2 

CONTRIBUTIONS

50% CAP

EXAMPLE 35

1% OF TIER 2 

CONTRIBUTIONS

50% CAP

EXAMPLE 36

1% OF TIER 2 

CONTRIBUTIONS

50% CAP

TIER 3

EXAMPLE 37

1% OF TIER 3 

CONTRIBUTIONS

NO CAP

EXAMPLE 38

1% OF TIER 3 

CONTRIBUTIONS

NO CAP

EXAMPLE 39

1% OF TIER 3 

CONTRIBUTIONS

NO CAP

EXAMPLE 40

1% OF TIER 3 

CONTRIBUTIONS

40% CAP

EXAMPLE 41

1% OF TIER 3 

CONTRIBUTIONS

40% CAP

EXAMPLE 42

1% OF TIER 3 

CONTRIBUTIONS

40% CAP

EXAMPLE 43

.5% OF TIER 3 

CONTRIBUTIONS

NO CAP

EXAMPLE 44

.5% OF TIER 3 

CONTRIBUTIONS

NO CAP

EXAMPLE 45

.5% OF TIER 3 

CONTRIBUTIONS

NO CAP

EXAMPLE 46

1% OF TIER 3 

CONTRIBUTIONS

40% CAP

EXAMPLE 47

1% OF TIER 3 

CONTRIBUTIONS

40% CAP

EXAMPLE 48

1% OF TIER 3 

CONTRIBUTIONS

40% CAP

Demonstration that the Limitations on Individual Suspensions are Satisfied

<20 YEARS >=20 YEARS <20 YEARS >=20 YEARS

PROPOSED BENEFIT SUSPENSION EXAMPLE CATEGORIES

Contributory Service 

Credits: 

ACTIVE, RETIRED OR BENEFICIARY TERMINATED VESTED

9.2.1
Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(a )

Monthly Benefit

The monthly benefit amount earned by the participant or beneficiary under the terms of the plan. The monthly benefit amount before the suspension. 

(b )

Total Contributions The total amount of contributions submitted to the plan on behalf of the participant including self-contributions made by the participant.

(c )

Tier 1 

Contributions

The amount of contributions submitted to the plan by Tier 1 employers on behalf of the participant plus the amount of self-contributions made by the participant for a 

period of employment with a Tier 1 employer.

(d )

Tier 2 

Contributions

The amount of contributions submitted to the plan by Tier 2 employers on behalf of the participant plus the amount of self-contributions made by the participant for a 

period of employment with a Tier 2 employer.

(e )

Tier 3 

Contributions

The amount of contributions submitted to the plan by Tier 3 employers on behalf of the participant plus the amount of self-contributions made by the participant for a 

period of employment with a Tier 3 employer.

(f )

Contributory 

Service

The amount of contributory service credit years earned by the participant as a result of service with a contributing employer required to make employer contributions 

on his or her behalf pursuant to a collective bargaining agreement. 

(g )

PBGC Years of 

Service

The years of credited service as defined for purposes of the PBGC guarantee formula. Years of credited service includes the amount of contributory service credit 

years earned by the participant, the amount of non-contributory service credit years earned by the participant to the extent it increases the participant's accrued 

benefit under the terms of the plan, and fractional years of credited service. A full year of service is credited for this purpose for any calendar year in which 40 or 

more weeks, 180 or more days, or 1,200 or more hours of service were earned (35 weeks prior to 1976), and a fractional year is credited for any calendar year in 

which less than 40 weeks, 180 days, or 1,200 hours were earned (35 weeks prior to 1976).

(h )

Contribution 

Accrual Rate

The percentage of contributions made on the participant's behalf that is accrued towards the participant's monthly benefit per the proposed benefit suspension plan. 

The percentage of contributions varies depending on participant's status as active, terminated vested, or retired and the amount of contributory service credit years.

(i )

Tier 2 Suspension 

Cap

The maximum percentage suspension applicable to the Tier 2 portion of the monthly benefit per the proposed benefit suspension plan.

Central States, Southeast and Southwest Areas Pension Plan

Description of the Proposed Benefit Suspension Calculation and

Calculation Terms and Definitions

9.2.2
Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

Central States, Southeast and Southwest Areas Pension Plan

Description of the Proposed Benefit Suspension Calculation and

Calculation Terms and Definitions

(j )

 Tier 3 Suspension 

Cap

The maximum percentage suspension applicable to the Tier 3 portion of the monthly benefit per the proposed benefit suspension plan.

(k )

Participant Age at 

Retirement

The participant's age at retirement is used to determine the appropriate age reduction factor for early retirements as well as the appropriate joint and survivor 

reduction factor should the participant elect the joint and survivor form of payment.

(l )

Early Retirement 

Factor

The applicable age reduction factor that can apply to a retirement benefit if the retirement occurs prior to the normal retirement age. If no reduction is applicable 

based on the age of the participant at retirement, then the early retirement factor is 1 and no reduction for early retirement is applied.

(m )

Spouse Age at 

Retirement

The age of the participant's spouse at retirement is used to determine the appropriate joint and survivor reduction factor to be applied to a retirement benefit if the 

joint and survivor form of payment is elected.

(n )

Form of Payment

The form of payment elected by the participant at retirement. The form of payment options are the Joint and 50% Surviving Spouse Option, the Joint and 75% 

Surviving Spouse, the Lifetime Only Option, and the Lifetime with Limited Surviving Spouse Option.

(o )

Joint and Survivor 

Factor

The reduction factor applicable when the joint and survivor form of payment is elected. If the joint and survivor form of payment is not elected or if the participant or 

participant's beneficiary is not in pay status, then the joint and survivor factor is 1 and no reduction for joint and survivor is applied.

(p )

Survivor Benefit 

Factor

The percentage (in decimal notation) of the participant's benefit that is payable to a survivor beneficiary after the participant's death. The percentage is based on the 

joint and survivor form of payment elected. For example, if the 50% joint and survivor form of payment is elected and the payee is the surviving beneficiary, then the 

survivor benefit factor is .5. If the joint and survivor form of payment is not elected, if the participant or participant's beneficiary is not in pay status, or if the payee is 

the participant, then the survivor benefit factor is 1 and no survivor benefit reduction is applied.

(q )

Months To 

Age 80

The number of months during the period that begins with the month after the month in which the suspension is effective and ends with the month in which that 

participant or beneficiary attains the age of 80.

(r )

 Amount Based On 

Disability

The amount of the monthly benefit that is based on disability. The examples shown with amounts based on disability are of participants who convert from a disability 

benefit to a retirement benefit upon reaching normal retirement age. The amount of the retirement benefit is Monthly Benefit (a ) and the portion of Monthly Benefit 

(a ) that is based on the disability benefit is Amount Based on Disability (r ). 

9.2.3
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$82,280.00 $82,280.00 $0.00 $0.00 12.55 0.8591 1 60 $0.00

(s )

Benefit 

Accrual

1. $89.40

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $453.13

(v )

110% PBGC 

Guarantee

$498.44

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$498.44

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

64 years;

2 months 0.95 56 years Joint And 50% Surviving Spouse

LANE 6 LANE 7

$1,133.12 12.675 1.0% 50% 40%

EXAMPLE 13 Calculation of the Proposed Benefit Suspension of a Tier 1 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.4
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$82,280.00 $82,280.00 $0.00 $0.00 12.55 0.8591 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

64 years;

2 months 0.95 56 years Joint And 50% Surviving Spouse

LANE 6 LANE 7

$1,133.12 12.675 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $498.44

(jj )

Maximum 

Suspendable

$634.68

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $634.68

(mm )

Post 

Suspension 

Benefit

18. $498.44

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the retired participant s monthly benefit of $1,133.12 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. The 

age-based limitation does not apply because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and the disability-based limitation does not apply because $0 (Amount Based on Disability - r ) of the 

participant s benefit is based on disability. A benefit suspension applied to the maximum extent permissible is one that reduces the benefit to $498.44 (110% PBGC Guarantee - v ), the guarantee-based limitation. As a result, the retiree s monthly benefit would be 

reduced to $498.44 (Post Suspension Benefit - mm ).

EXAMPLE 13 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.5
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$82,280.00 $82,280.00 $0.00 $0.00 12.55 0.8591 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

64 years;

2 months 0.95 56 years Joint And 50% Surviving Spouse

LANE 6 LANE 7

$1,133.12 12.675 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 13 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.6
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$105,213.80 $105,213.80 $0.00 $0.00 15.425 1 1 60 $915.00

(s )

Benefit 

Accrual

1. $111.89

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $596.13

(v )

110% PBGC 

Guarantee

$655.74

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$655.74

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,865.81 16.675 1.0% 50% 40%

EXAMPLE 14 Calculation of the Proposed Benefit Suspension of a Tier 1 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.7
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$105,213.80 $105,213.80 $0.00 $0.00 15.425 1 1 60 $915.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,865.81 16.675 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $655.74

(jj )

Maximum 

Suspendable

$950.81

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $950.81

(mm )

Post 

Suspension 

Benefit

18. $915.00

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the retired participant s monthly benefit of $1,865.81 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. In this 

example, there is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ). However, the disability-based limitation applies because $915 (Amount Based on Disability - 

r ) of the participant s benefit is based on disability and this amount is higher than $655.74 (Sum of Tier Benefits - ii; 110% PBGC Guarantee - v ), the reduced benefit amount per the proposed suspension and guarantee based limitation. As a result, the maximum 

amount that can be suspended is $950.81 (Maximum Suspendable - jj ) and the retiree s monthly benefit would be reduced to $915 (Post Suspension Benefit - mm ).

EXAMPLE 14 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.8
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$105,213.80 $105,213.80 $0.00 $0.00 15.425 1 1 60 $915.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,865.81 16.675 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 14 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.9
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$65,145.40 $65,145.40 $0.00 $0.00 10.972 1 1 16 $0.00

(s )

Benefit 

Accrual

1. $120.32

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $392.25

(v )

110% PBGC 

Guarantee

$431.48

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$431.48

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,320.12 10.972 1.0% 50% 40%

EXAMPLE 15 Calculation of the Proposed Benefit Suspension of a Tier 1 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.10
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$65,145.40 $65,145.40 $0.00 $0.00 10.972 1 1 16 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,320.12 10.972 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $431.48

(jj )

Maximum 

Suspendable

$888.64

(kk )

Applicable 

Percentage

16. 26.67%

(ll )

Suspended 

Amount

17. $236.97

(mm )

Post 

Suspension 

Benefit

18. $1,083.15

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

EXAMPLE 15 (continued)

The benefit suspension of the retired participant s monthly benefit of $1,320.12 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. In this 

example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. However, the age-based limitation applies because the participant has reached age 75 as of the effective date of 

the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 26.67% (Applicable Percentage - kk ) and $888.64 (Maximum Suspendable - jj ) resulting in $236.97 (Suspended Amount - ll ). 

Accordingly, the retiree s monthly benefit would be reduced to $1,083.15 (Post Suspension Benefit - mm ) which is the result of $1,320.12 (Monthly Benefit - a ) minus $236.97 (Suspended Amount - ll ).

Note: The retiree s birth date is in November 1937, making the retiree 78 years and 8 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 16 (Months to Age 80 - q ) months during the period that begins 

with the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (November 2017).

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.11
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$65,145.40 $65,145.40 $0.00 $0.00 10.972 1 1 16 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,320.12 10.972 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 15 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.12
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$99,899.80 $99,899.80 $0.00 $0.00 30 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $96.86

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $1,107.21

(v )

110% PBGC 

Guarantee

$1,217.93

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$1,217.93

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

57 years;

3 months 0.715 N/A LifetimeOnly

LANE 6 LANE 7

$3,000.00 30.971 1.0% 50% 40%

EXAMPLE 16 Calculation of the Proposed Benefit Suspension of a Tier 1 Active, Retired or Beneficiary Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.13
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$99,899.80 $99,899.80 $0.00 $0.00 30 1 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

57 years;

3 months 0.715 N/A LifetimeOnly

LANE 6 LANE 7

$3,000.00 30.971 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $1,217.93

(jj )

Maximum 

Suspendable

$1,782.07

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $1,782.07

(mm )

Post 

Suspension 

Benefit

18. $1,217.93

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the retired participant s monthly benefit of $3,000 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. The agebased limitation does not apply because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and the disability-based limitation does not apply because $0 (Amount Based on Disability - r ) of the participant s 

benefit is based on disability. A benefit suspension applied to the maximum extent permissible is one that reduces the benefit to $1,217.93 (110% PBGC Guarantee - v ), the guarantee-based limitation. As a result, the retiree s monthly benefit would be reduced to 

$1,217.93 (Post Suspension Benefit - mm ).

EXAMPLE 16 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.14
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$99,899.80 $99,899.80 $0.00 $0.00 30 1 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

57 years;

3 months 0.715 N/A LifetimeOnly

LANE 6 LANE 7

$3,000.00 30.971 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 16 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.15
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$101,717.40 $101,717.40 $0.00 $0.00 20.85 1 1 60 $865.00

(s )

Benefit 

Accrual

1. $89.37

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $760.58

(v )

110% PBGC 

Guarantee

$836.64

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$836.64

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,901.32 21.275 1.0% 50% 40%

EXAMPLE 17 Calculation of the Proposed Benefit Suspension of a Tier 1 Active, Retired or Beneficiary Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.16
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$101,717.40 $101,717.40 $0.00 $0.00 20.85 1 1 60 $865.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,901.32 21.275 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $836.64

(jj )

Maximum 

Suspendable

$1,036.32

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $1,036.32

(mm )

Post 

Suspension 

Benefit

18. $865.00

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the retired participant s monthly benefit of $1,901.32 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. In this 

example, there is no applicable age-based limitation because the retiree has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ). However, the disability-based limitation applies because $865 (Amount Based on Disability - r ) of 

the retiree s benefit is based on disability and this amount is higher than $836.64 (Sum of Tier Benefits - ii; 110% PBGC Guarantee - v ), the reduced benefit amount per the proposed suspension and guarantee-based limitation. As a result, the maximum amount that 

can be suspended is $1,036.32 (Maximum Suspendable - jj ) and the retiree s monthly benefit would be reduced to $865 (Post Suspension Benefit - mm ).

EXAMPLE 17 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.17
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$101,717.40 $101,717.40 $0.00 $0.00 20.85 1 1 60 $865.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,901.32 21.275 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 17 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.18
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$117,027.00 $117,027.00 $0.00 $0.00 36.444 1 1 9 $0.00

(s )

Benefit 

Accrual

1. $95.48

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $1,310.52

(v )

110% PBGC 

Guarantee

$1,441.57

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$1,441.57

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

65 years;

5 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$3,500.00 36.658 1.0% 50% 40%

EXAMPLE 18 Calculation of the Proposed Benefit Suspension of a Tier 1 Active, Retired or Beneficiary Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.19
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$117,027.00 $117,027.00 $0.00 $0.00 36.444 1 1 9 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

5 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$3,500.00 36.658 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $1,441.57

(jj )

Maximum 

Suspendable

$2,058.43

(kk )

Applicable 

Percentage

16. 15.00%

(ll )

Suspended 

Amount

17. $308.76

(mm )

Post 

Suspension 

Benefit

18. $3,191.24

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the retired participant s monthly benefit of $3,500 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. In this 

example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. However, the age-based limitation applies because the participant has reached age 75 as of the effective date of 

the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 15.00% (Applicable Percentage - kk ) and $2,058.43 (Maximum Suspendable - jj ) resulting in $308.76 (Suspended Amount - ll ). 

Accordingly, the retiree s monthly benefit would be reduced to $3,191.24 (Post Suspension Benefit - mm ) which is the result of $3,500 (Monthly Benefit - a ) minus $308.76 (Suspended Amount - ll ).

Note: The retiree s birth date is in April 1937, making the retiree 79 years and 3 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 9 (Months to Age 80 - q ) months during the period that begins with the 

month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (April 2017).

EXAMPLE 18 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.20
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$117,027.00 $117,027.00 $0.00 $0.00 36.444 1 1 9 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

5 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$3,500.00 36.658 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 18 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.21
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$38,731.80 $38,731.80 $0.00 $0.00 15.5 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $39.25

(t)

PBGC 

Accrual

2. $32.19

(u )

PBGC 

Guarantee

3. $517.62

(v )

110% PBGC 

Guarantee

$569.38

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$569.38

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

EXAMPLE 19 Calculation of the Proposed Benefit Suspension of a Tier 1 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$631.15 16.08 0.5% 50% 40% N/A 1 N/A N/A

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.22
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$38,731.80 $38,731.80 $0.00 $0.00 15.5 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$631.15 16.08 0.5% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $569.38

(jj )

Maximum 

Suspendable

$61.77

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $61.77

(mm )

Post 

Suspension 

Benefit

18. $569.38

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the participant s monthly benefit of $631.15 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. The agebased limitation does not apply because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and the disability-based limitation does not apply because $0 (Amount Based on Disability - r ) of the participant s 

benefit is based on disability. A benefit suspension applied to the maximum extent permissible is one that reduces the benefit to $569.38 (110% PBGC Guarantee - v ), the guarantee-based limitation. As a result, the participant s monthly benefit would be reduced to 

$569.38 (Post Suspension Benefit - mm ).

EXAMPLE 19 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.23
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$38,731.80 $38,731.80 $0.00 $0.00 15.5 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$631.15 16.08 0.5% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 19 (continued)

9.2.24
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$155,984.00 $155,984.00 $0.00 $0.00 17 1 1 60 $1,015.00

(s )

Benefit 

Accrual

1. $133.49

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $632.56

(v )

110% PBGC 

Guarantee

$695.82

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$695.82

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$2,361.94 17.694 0.5% 50% 40%

EXAMPLE 20 Calculation of the Proposed Benefit Suspension of a Tier 1 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.25
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$155,984.00 $155,984.00 $0.00 $0.00 17 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$2,361.94 17.694 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $695.82

(jj )

Maximum 

Suspendable

$1,346.94

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $1,346.94

(mm )

Post 

Suspension 

Benefit

18. $1,015.00

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

*For illustration purposes, this example assumes the terminated vested participant becomes eligible for the disability benefit under the plan.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the participant s monthly benefit of $2,361.94 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. In this 

example, there is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ). However, the disability-based limitation applies because $1,015 (Amount Based on Disability - 

r ) of the participant s benefit is based on disability and this amount is higher than $695.82 (Sum of Tier Benefits - ii; 110% PBGC Guarantee - v ), the reduced benefit amount per the proposed suspension and guarantee-based limitation. As a result, the maximum 

amount that can be suspended is $1,346.94 (Maximum Suspendable - jj ) and the participant s monthly benefit would be reduced to $1,015 (Post Suspension Benefit - mm ).

EXAMPLE 20 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.26
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$155,984.00 $155,984.00 $0.00 $0.00 17 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$2,361.94 17.694 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 20 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.27
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$25,850.00 $25,850.00 $0.00 $0.00 12.675 1 1 1 $0.00

(s )

Benefit 

Accrual

1. $33.01

(t)

PBGC 

Accrual

2. $27.51

(u )

PBGC 

Guarantee

3. $361.76

(v )

110% PBGC 

Guarantee

$397.94

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$397.94

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$434.02 13.15 0.5% 50% 40%

EXAMPLE 21 Calculation of the Proposed Benefit Suspension of a Tier 1 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.28
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$25,850.00 $25,850.00 $0.00 $0.00 12.675 1 1 1 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$434.02 13.15 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $397.94

(jj )

Maximum 

Suspendable

$36.08

(kk )

Applicable 

Percentage

16. 1.67%

(ll )

Suspended 

Amount

17. $0.60

(mm )

Post 

Suspension 

Benefit

18. $433.42

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the participant s monthly benefit of $434.02 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. In this 

example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. However, the age-based limitation applies because the participant has reached age 75 as of the effective date of 

the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 1.67% (Applicable Percentage - kk ) and $36.08 (Maximum Suspendable - jj ) resulting in $0.60 (Suspended Amount - ll ). 

Accordingly, the participant s monthly benefit would be reduced to $433.42 (Post Suspension Benefit - mm ) which is the result of $434.02 (Monthly Benefit - a ) minus $0.60 (Suspended Amount - ll ).

Note: The participant s birth date is in August 1936, making the participant 79 years and 11 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 1 (Months to Age 80 - q ) month during the period that 

begins with the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (August 2016).

EXAMPLE 21 (continued)

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.29
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$25,850.00 $25,850.00 $0.00 $0.00 12.675 1 1 1 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$434.02 13.15 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

EXAMPLE 21 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

9.2.30
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$51,260.50 $51,260.50 $0.00 $0.00 33.725 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $26.41

(t)

PBGC 

Accrual

2. $22.56

(u )

PBGC 

Guarantee

3. $768.73

(v )

110% PBGC 

Guarantee

$845.60

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$845.60

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

EXAMPLE 22 Calculation of the Proposed Benefit Suspension of a Tier 1 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$900.00 34.075 1.0% 50% 40% N/A 1 N/A N/A

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.31
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$51,260.50 $51,260.50 $0.00 $0.00 33.725 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$900.00 34.075 1.0% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $845.60

(jj )

Maximum 

Suspendable

$54.40

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $54.40

(mm )

Post 

Suspension 

Benefit

18. $845.60

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the participant s monthly benefit of $900 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. The age-based 

limitation does not apply because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and the disability-based limitation does not apply because $0 (Amount Based on Disability - r ) of the participant s benefit is 

based on disability. A benefit suspension applied to the maximum extent permissible is one that reduces the benefit to $845.60 (110% PBGC Guarantee - v ), the guarantee-based limitation. As a result, the participant s monthly benefit would be reduced to $845.60 

(Post Suspension Benefit - mm ).

EXAMPLE 22 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.32
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$51,260.50 $51,260.50 $0.00 $0.00 33.725 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$900.00 34.075 1.0% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 22 (continued)

9.2.33
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$157,672.00 $157,672.00 $0.00 $0.00 20.95 1 1 60 $965.00

(s )

Benefit 

Accrual

1. $114.54

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $748.96

(v )

110% PBGC 

Guarantee

$823.86

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$823.86

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$2,399.65 20.95 1.0% 50% 40%

EXAMPLE 23 Calculation of the Proposed Benefit Suspension of a Tier 1 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.34
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$157,672.00 $157,672.00 $0.00 $0.00 20.95 1 1 60 $965.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$2,399.65 20.95 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $823.86

(jj )

Maximum 

Suspendable

$1,434.65

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $1,434.65

(mm )

Post 

Suspension 

Benefit

18. $965.00

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

*For illustration purposes, this example assumes the terminated vested participant becomes eligible for the disability benefit under the plan.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the participant s monthly benefit of $2,399.65 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. In this 

example, there is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ). However, the disability-based limitation applies because $965 (Amount Based on Disability - 

r ) of the participant s benefit is based on disability and this amount is higher than $823.86 (Sum of Tier Benefits - ii; 110% PBGC Guarantee - v ), the reduced benefit amount per the proposed suspension and guarantee based limitation. As a result, the maximum 

amount that can be suspended is $1,434.65 (Maximum Suspendable - jj ) and the participant s monthly benefit would be reduced to $965 (Post Suspension Benefit - mm ).

EXAMPLE 23 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.35
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$157,672.00 $157,672.00 $0.00 $0.00 20.95 1 1 60 $965.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$2,399.65 20.95 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 23 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.36
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$27,741.00 $27,741.00 $0.00 $0.00 22 1 1 0 $0.00

(s )

Benefit 

Accrual

1. $23.16

(t)

PBGC 

Accrual

2. $20.12

(u )

PBGC 

Guarantee

3. $449.74

(v )

110% PBGC 

Guarantee

$494.71

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

100.00% 0.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $0.00

(bb )

Tier 1 

Benefit

$494.71

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$517.65 22.353 1.0% 50% 40%

EXAMPLE 24 Calculation of the Proposed Benefit Suspension of a Tier 1 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.37
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$27,741.00 $27,741.00 $0.00 $0.00 22 1 1 0 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$517.65 22.353 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $494.71

(jj )

Maximum 

Suspendable

$22.94

(kk )

Applicable 

Percentage

16. 0.00%

(ll )

Suspended 

Amount

17. $0.00

(mm )

Post 

Suspension 

Benefit

18. $517.65

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the participant s monthly benefit of $517.65 (Monthly Benefit - a ) is applied to the maximum extent permissible because 100% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. In this 

example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. However, the age-based limitation applies because the participant has reached age 75 as of the effective date of 

the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 0% (Applicable Percentage - kk ) and $22.94 (Maximum Suspendable - jj ) resulting in $0 (Suspended Amount - ll ). Accordingly, the 

participant s monthly benefit would remain at $517.65 (Post Suspension Benefit - mm ) which is the result of $517.65 (Monthly Benefit - a ) minus $0 (Suspended Amount - ll ).

Note: The participant s birth date is in April 1936, making the participant 80 years and 3 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 0 (Months to Age 80 - q ) months during the period that begins 

with the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (April 2016).

*For illustration purposes, this example assumes the terminated vested participant becomes eligible for the disability benefit under the plan. EXAMPLE 24 (continued)

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.38
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$27,741.00 $27,741.00 $0.00 $0.00 22 1 1 0 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$517.65 22.353 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

EXAMPLE 24 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

9.2.39
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$146,751.60 $0.00 $146,751.60 $0.00 19.478 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $109.78

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $696.34

(v )

110% PBGC 

Guarantee

$765.97

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$2,138.31 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$1,467.52

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $1,467.52

EXAMPLE 25 Calculation of the Proposed Benefit Suspension of a Tier 2 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$2,138.31 19.478 1.0% 50% 40% N/A 1 N/A N/A

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.40
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$146,751.60 $0.00 $146,751.60 $0.00 19.478 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$2,138.31 19.478 1.0% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $1,467.52

(jj )

Maximum 

Suspendable

$670.79

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $670.79

(mm )

Post 

Suspension 

Benefit

18. $1,467.52

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $2,138.31 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $146,751.60 (Tier 2 Contributions - d ) . No cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the 

proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the 

effective date of the suspension (see Months To Age 80 - q ), there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability, and there is no applicable guarantee-based limitation because 

$765.97 (110% PBGC Guarantee - v ) is lower than $1,467.52 (Sum of Tier Benefits - ii ) , the reduced benefit amount per the proposed suspension. As a result, the retiree s monthly benefit would be reduced to $1,467.52 (Post Suspension Benefit - mm ).

EXAMPLE 25 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.41
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$146,751.60 $0.00 $146,751.60 $0.00 19.478 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$2,138.31 19.478 1.0% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 25 (continued)

9.2.42
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$146,751.60 $0.00 $146,751.60 $0.00 19.478 0.8441 1 60 $0.00

(s )

Benefit 

Accrual

1. $75.99

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $696.34

(v )

110% PBGC 

Guarantee

$765.97

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$1,480.05 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$1,015.76

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $1,015.76

EXAMPLE 25A Calculation of the Proposed Benefit Suspension of a Tier 2 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service*

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,480.05 19.478 1.0% 50% 40% 62 years;

0 months 0.82 59 Joint and 75%Surviving Spouse

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.43
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$146,751.60 $0.00 $146,751.60 $0.00 19.478 0.8441 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,480.05 19.478 1.0% 50% 40% 62 years;

0 months 0.82 59 Joint and 75%Surviving Spouse

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $1,015.76

(jj )

Maximum 

Suspendable

$464.29

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $464.29

(mm )

Post 

Suspension 

Benefit

18. $1,015.76

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

*To illustrate how the benefit of a participant who is not in pay status is calculated at retirement, this example assumes the active participant from Example 25 retires at age 62, has a spouse who is age 59 at retirement, and elects the Joint and 75% Surving Spouse option as 

the form of payment.

EXAMPLE 25A (continued)

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $1,480.05 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $146,751.60 (Tier 2 Contributions - d ) Times 0.82 (Early Retirement Factor - l ) times 0.8441 (Joint and Survivor Factor - o ) 

times 1 (Survivor Benefit Factor - p ). No cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - f ). 

In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ), there is no applicable disability-based limitation because $0 (Amount Based on 

Disability - r ) of the participant s benefit is based on disability, and there is no applicable guarantee-based limitation because $765.97 (110% PBGC Guarantee - v ) is lower than $1,015.76 (Sum of Tier Benefits - ii ) , the reduced benefit amount per the proposed 

suspension. As a result, the participant s monthly benefit would be reduced to $1,015.76 (Post Suspension Benefit - mm ).

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.44
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$146,751.60 $0.00 $146,751.60 $0.00 19.478 0.8441 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,480.05 19.478 1.0% 50% 40% 62 years;

0 months 0.82 59 Joint and 75%Surviving Spouse

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 25A (continued)

9.2.45
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$90,090.80 $0.00 $90,090.80 $0.00 12.072 1 1 60 $1,015.00

(s )

Benefit 

Accrual

1. $91.02

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $447.05

(v )

110% PBGC 

Guarantee

$491.76

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$1,138.26 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$900.91

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $900.91

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$1,138.26 12.505 1.0% 50% 40%

EXAMPLE 26 Calculation of the Proposed Benefit Suspension of a Tier 2 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.46
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$90,090.80 $0.00 $90,090.80 $0.00 12.072 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,138.26 12.505 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $900.91

(jj )

Maximum 

Suspendable

$123.26

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $123.26

(mm )

Post 

Suspension 

Benefit

18. $1,015.00

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

*For illustration purposes, this example assumes the active participant becomes eligible for the disability benefit under the plan.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The active participant s monthly benefit of $1,138.26 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $90,090.80 (Tier 2 Contributions - d ) . No cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under 

the proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the 

effective date of the suspension (see Months To Age 80 - q ) and there is no applicable guarantee-based limitation because $491.76 (110% PBGC Guarantee - v ) is lower than $900.91 (Sum of Tier Benefits - ii ). However, the disability-based limitation applies 

because $1,015 (Amount Based on Disability - r ) of the participant s benefit is based on disability and this amount is higher than $900.91 (Sum of Tier Benefits - ii ), the reduced benefit amount per the proposed suspension. As a result, the maximum amount that can 

be suspended is $123.26 (Maximum Suspendable - jj ) and the participant s monthly benefit would be reduced to $1,015 (Post Suspension Benefit - mm ).

EXAMPLE 26 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.47
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$90,090.80 $0.00 $90,090.80 $0.00 12.072 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,138.26 12.505 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 26 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.48
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$68,185.00 $0.00 $68,185.00 $0.00 17.575 1 1 32 $1,015.00

(s )

Benefit 

Accrual

1. $71.29

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $644.39

(v )

110% PBGC 

Guarantee

$708.83

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$1,285.01 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$681.85

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $681.85

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,285.01 18.025 1.0% 50% 40%

EXAMPLE 27 Calculation of the Proposed Benefit Suspension of a Tier 2 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.49
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$68,185.00 $0.00 $68,185.00 $0.00 17.575 1 1 32 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,285.01 18.025 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $681.85

(jj )

Maximum 

Suspendable

$270.01

(kk )

Applicable 

Percentage

16. 53.33%

(ll )

Suspended 

Amount

17. $144.00

(mm )

Post 

Suspension 

Benefit

18. $1,141.01

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the retiree s monthly benefit of $1,285.01 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $68,185 (Tier 2 Contributions - d ) times 1 (Early Retirement Factor - l ) times 1 (Joint and Survivor Factor 

- o ) times 1 (Survivor Benefit Factor - p ). No cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - 

f ). In this example, the disability-based limitation and the guarantee-based limitation apply because $1,015 (Amount Based on Disability - r ) and $708.83 (110% PBGC Guarantee - v ) are higher than $681.85 (Sum of Tier Benefits - ii ). Since $1,015 (Amount Based 

on Disability - r ) is higher than $708.83 (110% PBGC Guarantee - v ) the disability-based limitation prevails and the maximum amount that can be suspended is $270.01 (Maximum Suspendable - jj ). In addition, the age-based limitation also applies because the 

retiree has reached age 75 as of the effective date of the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 53.33% (Applicable Percentage - kk ) and $270.01 (Maximum Suspendable - jj ) 

resulting in $144 (Suspended Amount - ll ). Accordingly, the retiree s monthly benefit would be reduced to $1,141.01 (Post Suspension Benefit - mm ) which is the result of $1,285.01 (Monthly Benefit - a ) minus $144 (Suspended Amount - ll ).

Note: The retiree s birth date is in March 1939, making the retiree 77 years and 4 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 32 (Months to Age 80 - q ) months during the period that begins with 

the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (March 2019).

EXAMPLE 27 (continued)

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9 2 50
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$68,185.00 $0.00 $68,185.00 $0.00 17.575 1 1 32 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,285.01 18.025 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

EXAMPLE 27 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

9.2.51
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$39,638.00 $0.00 $39,638.00 $0.00 30 0.9417 0.5 60 $0.00

(s )

Benefit 

Accrual

1. $27.89

(t)

PBGC 

Accrual

2. $23.67

(u )

PBGC 

Guarantee

3. $721.77

(v )

110% PBGC 

Guarantee

$793.95

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$850.35 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$130.64

(dd )

Tier 2 

Minimum

$425.18

(ee )

Tier 2 

Benefit

10. $425.18

EXAMPLE 28 Calculation of the Proposed Benefit Suspension of a Tier 2 Active, Retired or Beneficiary Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$850.35 30.493 1.0% 50% 40% 53 years;

1 month 0.7 54 years Joint And 50% Surviving Spouse

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.52
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$39,638.00 $0.00 $39,638.00 $0.00 30 0.9417 0.5 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$850.35 30.493 1.0% 50% 40% 53 years;

1 month 0.7 54 years Joint And 50% Surviving Spouse

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $425.18

(jj )

Maximum 

Suspendable

$56.40

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $56.40

(mm )

Post 

Suspension 

Benefit

18. $793.95

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The beneficiary s monthly benefit of $850.35 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $39,638 (Tier 2 Contributions - d ) times 0.7 (Early Retirement Factor - l ) times 0.9417 (Joint and Survivor Factor - o ) times 0.5 

(Survivor Benefit Factor - p ). A 50% cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the proposed benefit suspension plan because the participant had 20 or more years of contributory service credit (see Contributory Service - f ). In 

this example, there is no applicable age-based limitation because the beneficiary has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and there is no applicable disability-based limitation because $0 (Amount Based on 

Disability - r ) of the beneficiary s benefit is based on disability. However, the guarantee-based limitation applies because $793.95 (110% PBGC Guarantee - v) is higher than $425.18 (Sum of Tier Benefits - ii ), the reduced benefit amount per the proposed 

suspension. As a result, the maximum amount that can be suspended is $56.40 (Maximum Suspendable - jj ) and the beneficiary s monthly benefit would be reduced to $793.95 (Post Suspension Benefit - mm ).

EXAMPLE 28 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.53
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$39,638.00 $0.00 $39,638.00 $0.00 30 0.9417 0.5 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$850.35 30.493 1.0% 50% 40% 53 years;

1 month 0.7 54 years Joint And 50% Surviving Spouse

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 28 (continued)

9.2.54
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$76,419.80 $0.00 $76,419.80 $0.00 21.702 1 1 60 $965.00

(s )

Benefit 

Accrual

1. $63.60

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $786.36

(v )

110% PBGC 

Guarantee

$865.00

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$1,398.84 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$764.20

(dd )

Tier 2 

Minimum

$699.42

(ee )

Tier 2 

Benefit

10. $764.20

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,398.84 21.996 1.0% 50% 40%

EXAMPLE 29 Calculation of the Proposed Benefit Suspension of a Tier 2 Active, Retired or Beneficiary Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.55
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$76,419.80 $0.00 $76,419.80 $0.00 21.702 1 1 60 $965.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,398.84 21.996 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $764.20

(jj )

Maximum 

Suspendable

$433.84

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $433.84

(mm )

Post 

Suspension 

Benefit

18. $965.00

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The retiree s monthly benefit of $1,398.84 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $76,419.80 (Tier 2 Contributions - d ) times 1 (Early Retirement Factor - l ) times 1 (Joint and Survivor Factor - o ) times 1 (Survivor 

Benefit Factor - p ). There is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ). Both, the guarantee-based limitation and the disability-based limitation apply 

because $865 (110% PBGC Guarantee - v ) and $965 (Amount Based on Disability - r ) are higher than $764.20 (Sum of Tier Benefits - ii ), the reduced benefit amount per the proposed suspension. Since $965 (Amount Based on Disability - r ), the disability-based 

limitation, is higher than $865 (110% PBGC Guarantee - v ), the guarantee-based limitation, the disability-based limitation prevails. As a result, the maximum amount that can be suspended is $433.84 (Maximum Suspendable - jj ) and the retiree s monthly benefit 

would be reduced to $965 (Post Suspension Benefit - mm ).

EXAMPLE 29 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.56
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$76,419.80 $0.00 $76,419.80 $0.00 21.702 1 1 60 $965.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,398.84 21.996 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 29 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.57
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$80,034.80 $0.00 $80,034.80 $0.00 33.35 0.9093 1 34 $0.00

(s )

Benefit 

Accrual

1. $83.36

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $1,202.99

(v )

110% PBGC 

Guarantee

$1,323.29

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$2,805.00 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$607.68

(dd )

Tier 2 

Minimum

$1,402.50

(ee )

Tier 2 

Benefit

10. $1,402.50

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

59 years;

3 months 0.835 57 Joint and 50%Surviving Spouse

LANE 6 LANE 7

$2,805.00 33.65 1.0% 50% 40%

EXAMPLE 30 Calculation of the Proposed Benefit Suspension of a Tier 2 Active, Retired or Beneficiary Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.58
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$80,034.80 $0.00 $80,034.80 $0.00 33.35 0.9093 1 34 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

59 years;

3 months 0.835 57 Joint and 50%Surviving Spouse

LANE 6 LANE 7

$2,805.00 33.65 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $1,402.50

(jj )

Maximum 

Suspendable

$1,402.50

(kk )

Applicable 

Percentage

16. 56.67%

(ll )

Suspended 

Amount

17. $794.75

(mm )

Post 

Suspension 

Benefit

18. $2,010.25

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The benefit suspension of the retiree s monthly benefit of $2,805.00 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $80,034.80 (Tier 2 Contributions - d ) times 0.835 (Early Retirement Factor - l ) times 0.9093 (Joint and 

Survivor Factor - o ) times 1 (Survivor Benefit Factor - p ). A 50% cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the proposed benefit suspension plan because the participant has 20 or more years of contributory service credit (see 

Contributory Service - f ). In this example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the retiree s benefit is based on disability. However, the age-based limitation applies because the retiree has reached age 75 

as of the effective date of the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 56.67% (Applicable Percentage - kk ) and $1,402.50 (Maximum Suspendable - jj ) resulting in $794.75 

(Suspended Amount - ll ). Accordingly, the retiree s monthly benefit would be reduced to $2,010.25 (Post Suspension Benefit - mm ) which is the result of $2,805.00 (Monthly Benefit - a ) minus $794.75 (Suspended Amount - ll ).

Note: The retiree s birth date is in May 1939, making the retiree 77 years and 2 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 34 (Months to Age 80 - q ) months during the period that begins with the 

month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (May 2019).

EXAMPLE 30 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.59
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$80,034.80 $0.00 $80,034.80 $0.00 33.35 0.9093 1 34 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

59 years;

3 months 0.835 57 Joint and 50%Surviving Spouse

LANE 6 LANE 7

$2,805.00 33.65 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 30 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.60
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$23,771.00 $0.00 $23,771.00 $0.00 6 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $75.46

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $225.22

(v )

110% PBGC 

Guarantee

$247.74

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$475.42 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$118.86

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $118.86

EXAMPLE 31 Calculation of the Proposed Benefit Suspension of a Tier 2 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$475.42 6.3 0.5% 50% 40% N/A 1 N/A N/A

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.61
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$23,771.00 $0.00 $23,771.00 $0.00 6 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$475.42 6.3 0.5% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $118.86

(jj )

Maximum 

Suspendable

$227.68

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $227.68

(mm )

Post 

Suspension 

Benefit

18. $247.74

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $475.42 (Monthly Benefit - a ) is proposed to be suspended to 0.5% (Contribution Accrual Rate - h ) of $23,771 (Tier 2 Contributions - d ). No cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the 

proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the 

effective date of the suspension (see Months To Age 80 - q ) and there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. However, the guarantee-based limitation applies because 

$247.75 (110% PBGC Guarantee - v ) is higher than $118.86 (Sum of Tier Benefits - ii ), the reduced benefit amount per the proposed suspension. As a result, the maximum amount that can be suspended is $227.67 (Maximum Suspendable - jj ) and the 

participant s monthly benefit would be reduced to $247.75 (Post Suspension Benefit - mm ).

EXAMPLE 31 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.62
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$23,771.00 $0.00 $23,771.00 $0.00 6 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$475.42 6.3 0.5% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 31 (continued)

9.2.63
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$89,449.90 $0.00 $89,449.90 $0.00 11.139 1 1 60 $1,015.00

(s )

Benefit 

Accrual

1. $106.30

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $398.22

(v )

110% PBGC 

Guarantee

$438.04

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$1,184.08 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$447.25

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $447.25

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$1,184.08 11.139 0.5% 50% 40%

EXAMPLE 32 Calculation of the Proposed Benefit Suspension of a Tier 2 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.64
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$89,449.90 $0.00 $89,449.90 $0.00 11.139 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,184.08 11.139 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $447.25

(jj )

Maximum 

Suspendable

$169.08

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $169.08

(mm )

Post 

Suspension 

Benefit

18. $1,015.00

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

*For illustration purposes, this example assumes the active participant becomes eligible for the disability benefit under the plan.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $1,184.08 (Monthly Benefit - a ) is proposed to be suspended to 0.5% (Contribution Accrual Rate - h ) of $89,449.90 (Tier 2 Contributions - d ). No cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the 

proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the 

effective date of the suspension (see Months To Age 80 - q ) and there is no applicable guarantee-based limitation because $438.04 (110% PBGC Guarantee - v ) is lower than $447.25 (Sum of Tier Benefits - ii ). However, the disability-based limitation applies 

because $1,015 (Amount Based on Disability - r ) of the participant s benefit is based on disability and this amount is higher than $447.25 (Sum of Tier Benefits - ii ), the reduced benefit amount per the proposed suspension. As a result, the maximum amount that can 

be suspended is $169.08 (Maximum Suspendable - jj ) and the participant s monthly benefit would be reduced to $1,015 (Post Suspension Benefit - mm ).

EXAMPLE 32 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.65
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$89,449.90 $0.00 $89,449.90 $0.00 11.139 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,184.08 11.139 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 32 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.66
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$24,588.00 $0.00 $24,588.00 $0.00 6.15 1 1 27 $0.00

(s )

Benefit 

Accrual

1. $82.23

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $219.86

(v )

110% PBGC 

Guarantee

$241.85

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$505.73 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$122.94

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $122.94

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$505.73 6.15 0.5% 50% 40%

EXAMPLE 33 Calculation of the Proposed Benefit Suspension of a Tier 2 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.67
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$24,588.00 $0.00 $24,588.00 $0.00 6.15 1 1 27 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$505.73 6.15 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $122.94

(jj )

Maximum 

Suspendable

$263.88

(kk )

Applicable 

Percentage

16. 45.00%

(ll )

Suspended 

Amount

17. $118.75

(mm )

Post 

Suspension 

Benefit

18. $386.98

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $505.73 (Monthly Benefit - a ) is proposed to be suspended to 0.5% (Contribution Accrual Rate - h ) of $24,588 (Tier 2 Contributions - d ). No cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the 

proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the 

participant s benefit is based on disability but the guarantee-based limitation applies because $241.85 (110% PBGC Guarantee - v ) is higher than $122.94 (Sum of Tier Benefits - ii ) and therefore the maximum suspendable amount is $263.88 (Maximum Suspendable 

- jj ). The age-based limitation also applies because the participant has reached age 75 as of the effective date of the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 45% (Applicable 

Percentage - kk ) and $263.88 (Maximum Suspendable - jj ) resulting in $118.75 (Suspended Amount - ll ). Accordingly, the participant s monthly benefit would be reduced to $386.98 (Post Suspension Benefit - mm ) which is the result of $505.73 (Monthly Benefit - 

a ) minus $118.75 (Suspended Amount - ll ).

Note: The participant s birth date is in October 1938, making the participant 77 years and 9 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 27 (Months to Age 80 - q ) months during the period that 

begins with the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (October 2018).

EXAMPLE 33 (continued)

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.68
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$24,588.00 $0.00 $24,588.00 $0.00 6.15 1 1 27 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$505.73 6.15 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

EXAMPLE 33 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

9.2.69
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$11,163.00 $0.00 $11,163.00 $0.00 23.5 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $10.10

(t)

PBGC 

Accrual

2. $10.10

(u )

PBGC 

Guarantee

3. $241.80

(v )

110% PBGC 

Guarantee

$265.98

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$241.80 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$111.63

(dd )

Tier 2 

Minimum

$120.90

(ee )

Tier 2 

Benefit

10. $120.90

EXAMPLE 34 Calculation of the Proposed Benefit Suspension of a Tier 2 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$241.80 23.943 1.0% 50% 40% N/A 1 N/A N/A

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.70
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$11,163.00 $0.00 $11,163.00 $0.00 23.5 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$241.80 23.943 1.0% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $120.90

(jj )

Maximum 

Suspendable

$0.00

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $0.00

(mm )

Post 

Suspension 

Benefit

18. $241.80

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $241.80 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $11,163 (Tier 2 Contributions - d ). A 50% cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the 

proposed benefit suspension plan because the participant has 20 or more years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the effective 

date of the suspension (see Months To Age 80 - q ) and there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. However, the guarantee-based limitation applies because $265.98 

(110% PBGC Guarantee - v ) is higher than $120.90 (Sum of Tier Benefits - ii ), the reduced benefit amount per the proposed suspension. As a result, the maximum amount that can be suspended is $0 (Maximum Suspendable - jj ) and the participant s monthly 

benefit would remain at $241.80 (Post Suspension Benefit - mm ).

EXAMPLE 34 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.71
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$11,163.00 $0.00 $11,163.00 $0.00 23.5 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$241.80 23.943 1.0% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 34 (continued)

9.2.72
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$97,717.70 $0.00 $97,717.70 $0.00 24.083 1 1 60 $1,015.00

(s )

Benefit 

Accrual

1. $53.00

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $895.50

(v )

110% PBGC 

Guarantee

$985.05

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$1,327.67 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$977.18

(dd )

Tier 2 

Minimum

$663.84

(ee )

Tier 2 

Benefit

10. $977.18

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$1,327.67 25.049 1.0% 50% 40%

EXAMPLE 35 Calculation of the Proposed Benefit Suspension of a Tier 2 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.73
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$97,717.70 $0.00 $97,717.70 $0.00 24.083 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,327.67 25.049 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $977.18

(jj )

Maximum 

Suspendable

$312.67

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $312.67

(mm )

Post 

Suspension 

Benefit

18. $1,015.00

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

*For illustration purposes, this example assumes the terminated vested participant becomes eligible for the disability benefit under the plan.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $1,327.67 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $97,717.70 (Tier 2 Contributions - d ). A 50% cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the 

proposed benefit suspension plan because the participant has 20 or more years of contributory service credit (see Contributory Service - f ). There is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the 

suspension (see Months To Age 80 - q ). Both, the guarantee-based limitation and the disability-based limitation apply because $985.05 (110% PBGC Guarantee - v ) and $1,015 (Amount Based on Disability - r ) are higher than $977.18 (Sum of Tier Benefits - ii ), 

the reduced benefit amount per the proposed suspension. Since $1,015 (Amount Based on Disability - r ), the disability-based limitation, is higher than $985.05 (110% PBGC Guarantee - v ), the guarantee-based limitation, the disability-based limitation prevails. As a 

result, the maximum amount that can be suspended is $312.67 (Maximum Suspendable - jj ) and the participant s monthly benefit would be reduced to $1,015 (Post Suspension Benefit - mm ).

EXAMPLE 35 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.74
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$97,717.70 $0.00 $97,717.70 $0.00 24.083 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,327.67 25.049 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 35 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.75
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$39,365.00 $0.00 $39,365.00 $0.00 20.6 1 1 6 $0.00

(s )

Benefit 

Accrual

1. $32.22

(t)

PBGC 

Accrual

2. $26.92

(u )

PBGC 

Guarantee

3. $557.92

(v )

110% PBGC 

Guarantee

$613.71

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 100.00% 0.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$667.78 $0.00

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$393.65

(dd )

Tier 2 

Minimum

$333.89

(ee )

Tier 2 

Benefit

10. $393.65

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$667.78 20.725 1.0% 50% 40%

EXAMPLE 36 Calculation of the Proposed Benefit Suspension of a Tier 2 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.76
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$39,365.00 $0.00 $39,365.00 $0.00 20.6 1 1 6 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$667.78 20.725 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$0.00

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $0.00

(ii )

Sum of Tier 

Benefits

14. $393.65

(jj )

Maximum 

Suspendable

$54.07

(kk )

Applicable 

Percentage

16. 10.00%

(ll )

Suspended 

Amount

17. $5.41

(mm )

Post 

Suspension 

Benefit

18. $662.37

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $667.78 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $39,365 (Tier 2 Contributions - d ). A 50% cap to the amount of the suspension applies (see Tier 2 Minimum - dd ) under the 

proposed benefit suspension plan because the participant has 20 or more years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the 

participant s benefit is based on disability but the guarantee-based limitation applies because $613.71 (110% PBGC Guarantee - v ) is higher than $393.65 (Sum of Tier Benefits - ii ) and therefore the maximum suspendable amount is $54.07 (Maximum Suspendable - 

jj ). The age-based limitation also applies because the participant has reached age 75 as of the effective date of the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 10% (Applicable 

Percentage - kk ) and $54.07 (Maximum Suspendable - jj ) resulting in $5.41 (Suspended Amount - ll ). Accordingly, the participant s monthly benefit would be reduced to $662.37 (Post Suspension Benefit - mm ) which is the result of $667.78 (Monthly Benefit - a ) 

minus $5.41 (Suspended Amount - ll ).

Note: The participant s birth date is in January 1937, making the participant 79 years and 6 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 6 (Months to Age 80 - q ) months during the period that 

begins with the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (January 2017).

EXAMPLE 36 (continued)

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.77
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$39,365.00 $0.00 $39,365.00 $0.00 20.6 1 1 6 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$667.78 20.725 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

EXAMPLE 36 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

9.2.78
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$67,514.00 $0.00 $0.00 $67,514.00 14.75 0.8821 1 60 $0.00

(s )

Benefit 

Accrual

1. $69.00

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $544.29

(v )

110% PBGC 

Guarantee

$598.72

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $1,050.58

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

EXAMPLE 37 Calculation of the Proposed Benefit Suspension of a Tier 3 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,050.58 15.225 1.0% 50% 40% 65 years;

0 months 1 64 years Joint And 50% Surviving Spouse

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.79
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$67,514.00 $0.00 $0.00 $67,514.00 14.75 0.8821 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,050.58 15.225 1.0% 50% 40% 65 years;

0 months 1 64 years Joint And 50% Surviving Spouse

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$595.54

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $595.54

(ii )

Sum of Tier 

Benefits

14. $595.54

(jj )

Maximum 

Suspendable

$451.86

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $451.86

(mm )

Post 

Suspension 

Benefit

18. $598.72

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The retired participant s monthly benefit of $1,050.58 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $67,514 (Tier 3 Contributions - e ) times 1 (Early Retirement Factor - l ) times 0.8821 (Joint and Survivor Factor - o ) 

times 1 (Survivor Benefit Factor - p ). No cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - f ). 

In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and there is no applicable disability-based limitation because $0 (Amount Based on 

Disability - r ) of the participant s benefit is based on disability. However, the guarantee-based limitation applies because $598.72 (110% PBGC Guarantee - v ) is higher than $595.54 (Sum of Tier Benefits - ii ) , the reduced benefit amount per the proposed 

suspension. As a result, the retiree s monthly benefit would be reduced to $598.72 (Post Suspension Benefit - mm ).

EXAMPLE 37 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.80
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$67,514.00 $0.00 $0.00 $67,514.00 14.75 0.8821 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,050.58 15.225 1.0% 50% 40% 65 years;

0 months 1 64 years Joint And 50% Surviving Spouse

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 37 (continued)

9.2.81
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$86,976.00 $0.00 $0.00 $86,976.00 16.775 1 1 60 $915.00

(s )

Benefit 

Accrual

1. $103.70

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $599.71

(v )

110% PBGC 

Guarantee

$659.68

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $1,739.52

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,739.52 16.775 1.0% 50% 40%

EXAMPLE 38 Calculation of the Proposed Benefit Suspension of a Tier 3 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.82
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$86,976.00 $0.00 $0.00 $86,976.00 16.775 1 1 60 $915.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,739.52 16.775 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$869.76

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $869.76

(ii )

Sum of Tier 

Benefits

14. $869.76

(jj )

Maximum 

Suspendable

$824.52

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $824.52

(mm )

Post 

Suspension 

Benefit

18. $915.00

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The retired participant s monthly benefit of $1,739.52 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $86,976 (Tier 3 Contributions - e ). No cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the 

proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the 

effective date of the suspension (see Months To Age 80 - q ) and there is no applicable guarantee-based limitation because $659.68 (110% PBGC Guarantee - v ) is lower than $869.76 (Sum of Tier Benefits - ii ), the reduced benefit amount per the proposed 

suspension. However, the disability-based limitation applies because $915 (Amount Based on Disability - r ) is higher than $869.76 (Sum of Tier Benefits - ii ) . As a result, the retiree s monthly benefit would be reduced to $915 (Post Suspension Benefit - mm ).

EXAMPLE 38 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.83
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$86,976.00 $0.00 $0.00 $86,976.00 16.775 1 1 60 $915.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,739.52 16.775 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 38 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.84
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$117,254.00 $0.00 $0.00 $117,254.00 15 1 1 7 $0.00

(s )

Benefit 

Accrual

1. $127.85

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $536.25

(v )

110% PBGC 

Guarantee

$589.88

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $1,917.74

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

71 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,917.74 15 1.0% 50% 40%

EXAMPLE 39 Calculation of the Proposed Benefit Suspension of a Tier 3 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.85
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$117,254.00 $0.00 $0.00 $117,254.00 15 1 1 7 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

71 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,917.74 15 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$1,172.54

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $1,172.54

(ii )

Sum of Tier 

Benefits

14. $1,172.54

(jj )

Maximum 

Suspendable

$745.20

(kk )

Applicable 

Percentage

16. 11.67%

(ll )

Suspended 

Amount

17. $86.94

(mm )

Post 

Suspension 

Benefit

18. $1,830.80

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The retired participant s monthly benefit of $1,917.74 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $117,254 (Tier 3 Contributions - e ). In this example, there is no applicable disability-based limitation because $0 

(Amount Based on Disability - r ) of the participant s benefit is based on disability and there is no applicable guarantee-based limitation because $589.88 (110% PBGC Guarantee - v ) is lower than $1,172.54 (Sum of Tier Benefits - ii ). The age-based limitation also 

applies because the participant has reached age 75 as of the effective date of the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 11.67% (Applicable Percentage - kk ) and $745.20 

(Maximum Suspendable - jj ) resulting in $86.94 (Suspended Amount - ll ). Accordingly, the retiree s monthly benefit would be reduced to $1,830.80 (Post Suspension Benefit - mm ) which is the result of $1,917.74 (Monthly Benefit - a ) minus $86.94 (Suspended 

Amount - ll ).

Note: The participant s birth date is in February 1937, making the participant 79 years and 5 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 7 (Months to Age 80 - q ) months during the period that 

begins with the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (February 2017).

EXAMPLE 39 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.86
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$117,254.00 $0.00 $0.00 $117,254.00 15 1 1 7 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

71 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$1,917.74 15 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 39 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.87
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$69,506.00 $0.00 $0.00 $69,506.00 20 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $59.68

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $728.41

(v )

110% PBGC 

Guarantee

$801.25

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $1,215.88

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

EXAMPLE 40 Calculation of the Proposed Benefit Suspension of a Tier 3 Active, Retired or Beneficiary in Pay Status with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,215.88 20.375 1.0% 50% 40% 65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.88
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$69,506.00 $0.00 $0.00 $69,506.00 20 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,215.88 20.375 1.0% 50% 40% 65 years;

0 months 1 N/A LifetimeOnly

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$695.06

(gg )

Tier 3 

Minimum

$729.53

(hh )

Tier 3 Benefit

13. $729.53

(ii )

Sum of Tier 

Benefits

14. $729.53

(jj )

Maximum 

Suspendable

$414.63

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $414.63

(mm )

Post 

Suspension 

Benefit

18. $801.25

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The retiree s monthly benefit of $1,215.88 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $69,506 (Tier 3 Contributions - e ). A 40% cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the 

proposed benefit suspension plan because the participant has 20 or more years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the retiree has not reached age 75 as of the effective 

date of the suspension (see Months To Age 80 - q ) and there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the retiree s benefit is based on disability. However, the guarantee-based limitation applies because $801.25 

(110% PBGC Guarantee - v ) is higher than $729.53 (Sum of Tier Benefits - ii ) , the reduced benefit amount per the proposed suspension. As a result, the retiree s monthly benefit would be reduced to $801.25 (Post Suspension Benefit - mm ).

EXAMPLE 40 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.89
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$69,506.00 $0.00 $0.00 $69,506.00 20 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,215.88 20.375 1.0% 50% 40% 65 years;

0 months 1 N/A LifetimeOnly

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 40 (continued)

9.2.90
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$22,251.00 $0.00 $0.00 $22,251.00 20.725 1 1 60 $265.00

(s )

Benefit 

Accrual

1. $19.19

(t)

PBGC 

Accrual

2. $17.14

(u )

PBGC 

Guarantee

3. $355.23

(v )

110% PBGC 

Guarantee

$390.75

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $397.64

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$397.64 20.725 1.0% 50% 40%

EXAMPLE 41 Calculation of the Proposed Benefit Suspension of a Tier 3 Active, Retired or Beneficiary in Pay Status with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.91
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$22,251.00 $0.00 $0.00 $22,251.00 20.725 1 1 60 $265.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$397.64 20.725 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$222.51

(gg )

Tier 3 

Minimum

$238.58

(hh )

Tier 3 Benefit

13. $238.58

(ii )

Sum of Tier 

Benefits

14. $238.58

(jj )

Maximum 

Suspendable

$6.89

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $6.89

(mm )

Post 

Suspension 

Benefit

18. $390.75

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The retiree s monthly benefit of $397.64 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $22,251 (Tier 3 Contributions - e ). A 40% cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the 

proposed benefit suspension plan because the participant has 20 or more years of contributory service credit (see Contributory Service - f ). There is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the 

suspension (see Months To Age 80 - q ). Both, the guarantee-based limitation and the disability-based limitation apply because $390.75 (110% PBGC Guarantee - v ) and $265 (Amount Based on Disability - r ) are higher than $238.58 (Sum of Tier Benefits - ii ), the 

reduced benefit amount per the proposed suspension. Since $390.75 (110% PBGC Guarantee - v ), the guarantee-based limitation, is higher than $265 (Amount Based on Disability - r ), the disability-based limitation, the guarantee-based limitation prevails. As a 

result, the maximum amount that can be suspended is $6.89 (Maximum Suspendable - jj ) and the retiree s monthly benefit would be reduced to $390.75 (Post Suspension Benefit - mm ).

EXAMPLE 41 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.92
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$22,251.00 $0.00 $0.00 $22,251.00 20.725 1 1 60 $265.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$397.64 20.725 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 41 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.93
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$158,894.00 $0.00 $0.00 $158,894.00 28.65 0.8657 1 45 $0.00

(s )

Benefit 

Accrual

1. $78.16

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $1,024.24

(v )

110% PBGC 

Guarantee

$1,126.66

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $2,239.22

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

68 years;

0 months 1 67 Joint and 50%Surviving Spouse

LANE 6 LANE 7

$2,239.22 28.65 1.0% 50% 40%

EXAMPLE 42 Calculation of the Proposed Benefit Suspension of a Tier 3 Active, Retired or Beneficiary in Pay Status with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.94
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$158,894.00 $0.00 $0.00 $158,894.00 28.65 0.8657 1 45 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

68 years;

0 months 1 67 Joint and 50%Surviving Spouse

LANE 6 LANE 7

$2,239.22 28.65 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$1,375.55

(gg )

Tier 3 

Minimum

$1,343.53

(hh )

Tier 3 Benefit

13. $1,375.55

(ii )

Sum of Tier 

Benefits

14. $1,375.55

(jj )

Maximum 

Suspendable

$863.67

(kk )

Applicable 

Percentage

16. 75.00%

(ll )

Suspended 

Amount

17. $647.75

(mm )

Post 

Suspension 

Benefit

18. $1,591.47

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The retired participant s monthly benefit of $2,239.22 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $158,894 (Tier 3 Contributions - e ) times 1 (Early Retirement Factor - l ) times 0.8657 (Joint and Survivor Factor - o ) 

times 1 (Survivor Benefit Factor - p ). A 40% cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the proposed benefit suspension plan because the participant has 20 or more years of contributory service credit (see Contributory Service - 

f ). In this example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability and there is no applicable guarantee-based limitation because $1,126.66 (110% PBGC Guarantee - v ) is 

lower than $1,375.55 (Sum of Tier Benefits - ii ). The age-based limitation applies because the participant has reached age 75 as of the effective date of the suspension (see note below). Because the age-based limitation applies the suspended amount is determined 

by the product of 75% (Applicable Percentage - kk ) and $863.67 (Maximum Suspendable - jj ) resulting in $647.75 (Suspended Amount - ll ). Accordingly, the retiree s monthly benefit would be reduced to $1,591.47 (Post Suspension Benefit - mm ) which is the 

result of $2,239.22 (Monthly Benefit - a ) minus $647.75 (Suspended Amount - ll ).

Note: The participant s birth date is in April 1940, making the participant 76 years and 3 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 45 (Months to Age 80 - q ) months during the period that 

begins with the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (April 2020).

EXAMPLE 42 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.95
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$158,894.00 $0.00 $0.00 $158,894.00 28.65 0.8657 1 45 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

68 years;

0 months 1 67 Joint and 50%Surviving Spouse

LANE 6 LANE 7

$2,239.22 28.65 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 42 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.96
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$74,212.00 $0.00 $0.00 $74,212.00 11 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $132.45

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $400.40

(v )

110% PBGC 

Guarantee

$440.44

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $1,483.44

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

EXAMPLE 43 Calculation of the Proposed Benefit Suspension of a Tier 3 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,483.44 11.2 0.5% 50% 40% N/A 1 N/A N/A

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.97
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$74,212.00 $0.00 $0.00 $74,212.00 11 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,483.44 11.2 0.5% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$371.06

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $371.06

(ii )

Sum of Tier 

Benefits

14. $371.06

(jj )

Maximum 

Suspendable

$1,043.00

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $1,043.00

(mm )

Post 

Suspension 

Benefit

18. $440.44

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $1,483.44 (Monthly Benefit - a ) is proposed to be suspended to 0.5% (Contribution Accrual Rate - h ) of $74,212 (Tier 3 Contributions - e ). No cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the 

proposed benefit suspension plan because the terminated vested participant has less than 20 years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached age 

75 as of the effective date of the suspension (see Months To Age 80 - q ) and there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. However, the guarantee-based limitation 

applies because $440.44 (110% PBGC Guarantee - v ) is higher than $371.06 (Sum of Tier Benefits - ii ) , the reduced benefit amount per the proposed suspension. As a result, the participant s monthly benefit would be reduced to $440.44 (Post Suspension Benefit - 

mm ).

EXAMPLE 43 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.98
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$74,212.00 $0.00 $0.00 $74,212.00 11 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,483.44 11.2 0.5% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 43 (continued)

9.2.99
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$54,430.00 $0.00 $0.00 $54,430.00 10.025 1 1 60 $1,015.00

(s )

Benefit 

Accrual

1. $105.61

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $372.69

(v )

110% PBGC 

Guarantee

$409.96

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $1,100.96

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$1,100.96 10.425 0.5% 50% 40%

EXAMPLE 44 Calculation of the Proposed Benefit Suspension of a Tier 3 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.100
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$54,430.00 $0.00 $0.00 $54,430.00 10.025 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,100.96 10.425 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$272.15

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $272.15

(ii )

Sum of Tier 

Benefits

14. $272.15

(jj )

Maximum 

Suspendable

$85.96

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $85.96

(mm )

Post 

Suspension 

Benefit

18. $1,015.00

The participant s earned monthly benefit of $1,100.96 (Monthly Benefit - a ) is proposed to be suspended to 0.5% (Contribution Accrual Rate - h ) of $54,430 (Tier 3 Contributions - e ). No cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under 

the proposed benefit suspension plan because the terminated vested participant has less than 20 years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached 

age 75 as of the effective date of the suspension (see Months To Age 80 - q ). Both, the guarantee-based limitation and the disability-based limitation apply because $409.96 (110% PBGC Guarantee - v ) and $1,015 (Amount Based on Disability - r ) are higher than 

$272.15 (Sum of Tier Benefits - ii ), the reduced benefit amount per the proposed suspension. Since $1,015 (Amount Based on Disability - r ), the disability-based limitation, is higher than $409.96 (110% PBGC Guarantee - v ), the guarantee-based limitation, the 

disability-based limitation prevails. As a result, the maximum amount that can be suspended is $85.96 (Maximum Suspendable - jj ) and the participant s monthly benefit would be reduced to $1,015 (Post Suspension Benefit - mm ).

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

*For illustration purposes, this example assumes the terminated vested participant becomes eligible for the disability benefit under the plan.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

EXAMPLE 44 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.101
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$54,430.00 $0.00 $0.00 $54,430.00 10.025 1 1 60 $1,015.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,100.96 10.425 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 44 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.102
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$27,553.00 $0.00 $0.00 $27,553.00 12.5 1 1 19 $0.00

(s )

Benefit 

Accrual

1. $31.36

(t)

PBGC 

Accrual

2. $26.27

(u )

PBGC 

Guarantee

3. $339.91

(v )

110% PBGC 

Guarantee

$373.90

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $405.75

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$405.75 12.939 0.5% 50% 40%

EXAMPLE 45 Calculation of the Proposed Benefit Suspension of a Tier 3 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.103
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$27,553.00 $0.00 $0.00 $27,553.00 12.5 1 1 19 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$405.75 12.939 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$137.77

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $137.77

(ii )

Sum of Tier 

Benefits

14. $137.77

(jj )

Maximum 

Suspendable

$31.85

(kk )

Applicable 

Percentage

16. 31.67%

(ll )

Suspended 

Amount

17. $10.09

(mm )

Post 

Suspension 

Benefit

18. $395.66

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

EXAMPLE 45 (continued)

The participant s monthly benefit of $405.75 (Monthly Benefit - a ) is proposed to be suspended to 0.5% (Contribution Accrual Rate - h ) of $27,553 (Tier 3 Contributions - e ). No cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the 

proposed benefit suspension plan because the participant has less than 20 years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the 

participant s benefit is based on disability but the guarantee-based limitation applies because $373.90 is higher than $137.77 (Sum of Tier Benefits - ii ) and therefore the maximum suspendable amount is $31.85 (Maximum Suspendable - jj ). The age-based limitation 

also applies because the participant has reached age 75 as of the effective date of the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 31.67% (Applicable Percentage - kk ) and $31.85 

(Maximum Suspendable - jj ) resulting in $10.09 (Suspended Amount - ll ). Accordingly, the participant s monthly benefit would be reduced to $395.66 (Post Suspension Benefit - mm ) which is the result of $405.75 (Monthly Benefit - a ) minus $10.09 (Suspended 

Amount - ll ).

Note: The participant s birth date is in February 1938, making the participant 78 years and 5 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 19 (Months to Age 80 - q ) months during the period that 

begins with the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (February 2018).

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.104
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$27,553.00 $0.00 $0.00 $27,553.00 12.5 1 1 19 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$405.75 12.939 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

EXAMPLE 45 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

9.2.105
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$105,272.00 $0.00 $0.00 $105,272.00 28.5 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $61.72

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $1,018.88

(v )

110% PBGC 

Guarantee

$1,120.77

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $1,759.14

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

EXAMPLE 46 Calculation of the Proposed Benefit Suspension of a Tier 3 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,759.14 28.5 1.0% 50% 40% N/A 1 N/A N/A

LANE 6 LANE 7

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.106
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$105,272.00 $0.00 $0.00 $105,272.00 28.5 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,759.14 28.5 1.0% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

(ff )

Tier 3 

Accrual

$1,052.72

(gg )

Tier 3 

Minimum

$1,055.48

(hh )

Tier 3 Benefit

13. $1,055.48

(ii )

Sum of Tier 

Benefits

14. $1,055.48

(jj )

Maximum 

Suspendable

$638.37

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $638.37

(mm )

Post 

Suspension 

Benefit

18. $1,120.77

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $1,759.14 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $105,272 (Tier 3 Contributions - e ). A 40% cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the 

proposed benefit suspension plan because the terminated vested participant has 20 or more years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 

as of the effective date of the suspension (see Months To Age 80 - q ) and there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. However, the guarantee-based limitation applies 

because $1,120.77 (110% PBGC Guarantee - v ) is higher than $1,055.48 (Sum of Tier Benefits - ii ) , the reduced benefit amount per the proposed suspension. As a result, the participant s monthly benefit would be reduced to $1,120.77 (Post Suspension Benefit - 

mm ).

EXAMPLE 46 (continued)

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.107
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$105,272.00 $0.00 $0.00 $105,272.00 28.5 1 1 60 $0.00

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

$1,759.14 28.5 1.0% 50% 40% N/A 1 N/A N/A

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5 LANE 6 LANE 7

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 46 (continued)

9.2.108
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$97,704.00 $0.00 $0.00 $97,704.00 22.65 1 1 60 $665.00

(s )

Benefit 

Accrual

1. $79.55

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $810.63

(v )

110% PBGC 

Guarantee

$891.69

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $1,803.77

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$1,803.77 22.675 1.0% 50% 40%

EXAMPLE 47 Calculation of the Proposed Benefit Suspension of a Tier 3 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.109
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$97,704.00 $0.00 $0.00 $97,704.00 22.65 1 1 60 $665.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,803.77 22.675 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$977.04

(gg )

Tier 3 

Minimum

$1,082.26

(hh )

Tier 3 Benefit

13. $1,082.26

(ii )

Sum of Tier 

Benefits

14. $1,082.26

(jj )

Maximum 

Suspendable

$721.51

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $721.51

(mm )

Post 

Suspension 

Benefit

18. $1,082.26

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

*For illustration purposes, this example assumes the terminated vested participant becomes eligible for the disability benefit under the plan.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $1,803.77 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $97,704 (Tier 3 Contributions - e ). A 40% cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the 

proposed benefit suspension plan because the terminated vested participant has 20 or more years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 

as of the effective date of the suspension (see Months To Age 80 - q ) and there is no applicable guarantee-based limitation or disability-based limitation because $891.69 (110% PBGC Guarantee - v ) and $665 (Amount Based on Disability - r ) are lower than 

$1,082.26 (Sum of Tier Benefits - ii ), the reduced amount per the proposed suspension. As a result, the participant s monthly benefit would be reduced to $1,082.26 (Post Suspension Benefit - mm ).

EXAMPLE 47 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.110
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability*

$97,704.00 $0.00 $0.00 $97,704.00 22.65 1 1 60 $665.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,803.77 22.675 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 47 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.111
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$26,742.00 $0.00 $0.00 $26,742.00 22 1 1 44 $0.00

(s )

Benefit 

Accrual

1. $22.36

(t)

PBGC 

Accrual

2. $19.52

(u )

PBGC 

Guarantee

3. $429.44

(v )

110% PBGC 

Guarantee

$472.38

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

0.00% 0.00% 100.00%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$0.00 $491.84

(bb )

Tier 1 

Benefit

$0.00

(cc )

Tier 2 

Accrual

$0.00

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $0.00

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$491.84 22 1.0% 50% 40%

EXAMPLE 48 Calculation of the Proposed Benefit Suspension of a Tier 3 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.112
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$26,742.00 $0.00 $0.00 $26,742.00 22 1 1 44 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$491.84 22 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$267.42

(gg )

Tier 3 

Minimum

$295.10

(hh )

Tier 3 Benefit

13. $295.10

(ii )

Sum of Tier 

Benefits

14. $295.10

(jj )

Maximum 

Suspendable

$19.46

(kk )

Applicable 

Percentage

16. 73.33%

(ll )

Suspended 

Amount

17. $14.27

(mm )

Post 

Suspension 

Benefit

18. $477.57

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

The participant s monthly benefit of $491.84 (Monthly Benefit - a ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $26,742 (Tier 3 Contributions - e ). A 40% cap to the amount of the suspension applies (see Tier 3 Minimum - gg ) under the 

proposed benefit suspension plan because the participant has 20 or more years of contributory service credit (see Contributory Service - f ). In this example, there is no applicable disability-based limitation because $0 (Amount Based on Disability - r ) of the 

participant s benefit is based on disability but the guarantee-based limitation applies because $472.38 (110% PBGC Guarantee - v ) is higher than $295.10 (Sum of Tier Benefits - ii ) and therefore the maximum suspendable amount is $19.46 (Maximum Suspendable - 

jj ). The age-based limitation also applies because the participant has reached age 75 as of the effective date of the suspension (see note below). Because the age-based limitation applies the suspended amount is determined by the product of 73.33% (Applicable 

Percentage - kk ) and $19.46 (Maximum Suspendable - jj ) resulting in $14.27 (Suspended Amount - ll ). Accordingly, the participant s monthly benefit would be reduced to $477.57 (Post Suspension Benefit - mm ) which is the result of $491.84 (Monthly Benefit - a ) 

minus $14.27 (Suspended Amount - ll ).

Note: The participant s birth date is in March 1940, making the participant 76 years and 4 months of age as of the end of the month in which the suspension becomes effective (July 2016) and thus there is 44 (Months to Age 80 - q ) months during the period that 

begins with the month after the month in which the suspension is effective (August 2016) and ends with the month in which the retiree attains the age of 80 (March 2020).

EXAMPLE 48 (continued)

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.113
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$26,742.00 $0.00 $0.00 $26,742.00 22 1 1 44 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$491.84 22 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

EXAMPLE 48 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

9.2.114
Central States, Southeast and Southwest Areas Pension Plan

TIER 1

TIER 2

TIER 3

EXAMPLE 49 

 TIER 1 - 110% OF PBGC GUARANTEE /

TIER 2 - 1% OF TIER 2 CONTRIBUTIONS

 NO CAP /

TIER 3 - 1% OF TIER 3 CONTRIBUTIONS

NO CAP

EXAMPLE 50 

TIER 1 - 110% OF PBGC GUARANTEE /

TIER 2 - 1% OF TIER 2 CONTRIBUTIONS

 50% CAP /

TIER 3 - 1% OF TIER 3 CONTRIBUTIONS

40% CAP

EXAMPLE 51 

TIER 1 - 110% OF PBGC GUARANTEE /

TIER 2 - .5% OF TIER 2 CONTRIBUTIONS

NO CAP /

TIER 3 - .5% OF TIER 3 CONTRIBUTIONS

 NO CAP

EXAMPLE 52 

TIER 1 - 110% OF PBGC GUARANTEE /

TIER 2 - 1% OF TIER 2 CONTRIBUTIONS

50% CAP /

TIER 3 - 1% OF TIER 3 CONTRIBUTIONS

40% CAP

ADDITIONAL CALCULATION ILLUSTRATIONS

PARTICIPANTS WITH SERVICE IN MULTIPLE TIERS

Contributory Service 

Credits: 

ACTIVE, RETIRED OR BENEFICIARY TERMINATED VESTED

<20 YEARS >=20 YEARS <20 YEARS >=20 YEARS

9.2.115
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$61,458.40 $12,245.20 $22,189.00 $27,024.20 18.434 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $45.45

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $693.66

(v )

110% PBGC 

Guarantee

$763.03

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

19.92% 36.10% 43.97%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$318.32 $387.72

(bb )

Tier 1 

Benefit

$152.00

(cc )

Tier 2 

Accrual

$221.89

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $221.89

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$881.78 19.403 1.0% 50% 40%

EXAMPLE 49 Calculation of the Proposed Benefit Suspension of a Tier 1, 2, and 3 Active, Retired or Beneficiary Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.116
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$61,458.40 $12,245.20 $22,189.00 $27,024.20 18.434 1 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$881.78 19.403 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$270.24

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $270.24

(ii )

Sum of Tier 

Benefits

14. $644.13

(jj )

Maximum 

Suspendable

$118.75

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $118.75

(mm )

Post 

Suspension 

Benefit

18. $763.03

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

A portion of the benefit suspension of the retiree s monthly benefit of $881.78 (Monthly Benefit - a ) is applied to the maximum extent permissible because 19.92% (Tier 1 Percentage - w ) of the retiree s benefit is attributable to service with Tier 1 employers. The 

portion of the retiree s benefit attributable to service with Tier 2 and Tier 3 employers (Tier 2 Percentage - x and Tier 3 Percentage - y ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $22,189 (Tier 2 Contributions - d ) and 1% (Contribution 

Accrual Rate - h ) of $27,024.20 (Tier 3 Contributions - e ). In this example, there is no applicable age-based limitation because the retiree has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and there is no disability-based 

limitation because $0.00 (Amount Based on Disability - r ) of the retiree s benefit is based on disability. However, the guarantee-based limitation applies because $763.03 (110% PBGC Guarantee - v ) is higher than $644.16 (Sum of Tier Benefits - ii ), the reduced 

benefit amount per the proposed suspension. As a result, the maximum amount that can be suspended is $118.75 (Maximum Suspendable - jj ) and the retiree s monthly benefit would be reduced to $763.03 (Post Suspension Benefit - mm ).

EXAMPLE 49 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.117
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$61,458.40 $12,245.20 $22,189.00 $27,024.20 18.434 1 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

65 years;

0 months 1 N/A LifetimeOnly

LANE 6 LANE 7

$881.78 19.403 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 49 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.118
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$130,250.20 $12,103.20 $15,802.00 $102,345.00 26.156 0.8664 1 60 $0.00

(s )

Benefit 

Accrual

1. $65.57

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $964.57

(v )

110% PBGC 

Guarantee

$1,061.03

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

9.29% 12.13% 78.58%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$214.59 $1,390.12

(bb )

Tier 1 

Benefit

$98.59

(cc )

Tier 2 

Accrual

$136.91

(dd )

Tier 2 

Minimum

$107.30

(ee )

Tier 2 

Benefit

10. $136.91

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

67 years;

6 months 1 65 Joint and 50% Surviving Spouse

LANE 6 LANE 7

$1,769.05 26.981 1.0% 50% 40%

EXAMPLE 50 Calculation of the Proposed Benefit Suspension of a Tier 1, 2, and 3 Active, Retired or Beneficiary Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.119
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$130,250.20 $12,103.20 $15,802.00 $102,345.00 26.156 0.8664 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

67 years;

6 months 1 65 Joint and 50% Surviving Spouse

LANE 6 LANE 7

$1,769.05 26.981 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$886.72

(gg )

Tier 3 

Minimum

$834.07

(hh )

Tier 3 Benefit

13. $886.72

(ii )

Sum of Tier 

Benefits

14. $1,122.22

(jj )

Maximum 

Suspendable

$646.83

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $646.83

(mm )

Post 

Suspension 

Benefit

18. $1,122.22

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

A portion of the benefit suspension of the retiree s monthly benefit of $1,769.05 (Monthly Benefit - a ) is applied to the maximum extent permissible because 9.29% (Tier 1 Percentage - w ) of the retiree s benefit is attributable to service with Tier 1 employers. The 

portion of the retiree s benefit attributable to service with Tier 2 and Tier 3 employers (Tier 2 Percentage - x and Tier 3 Percentage - y ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $15,802 (Tier 2 Contributions - d ) and 1% (Contribution 

Accrual Rate - h ) of $102,345 (Tier 3 Contributions - e ). In this example, there is no applicable age-based limitation because the retiree has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and there is no disability-based 

limitation because $0 (Amount Based on Disability - r ) of the retiree s benefit is based on disability. The guarantee-based limitation does not apply because $1,061.03 (110% PBGC Guarantee - v ) is lower than $1,122.22 (Sum of Tier Benefits - ii ), the reduced 

benefit amount per the proposed suspension. As a result,the retiree s monthly benefit would be reduced to $1,122.22 (Post Suspension Benefit - mm ).

EXAMPLE 50 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.120
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$130,250.20 $12,103.20 $15,802.00 $102,345.00 26.156 0.8664 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

67 years;

6 months 1 65 Joint and 50% Surviving Spouse

LANE 6 LANE 7

$1,769.05 26.981 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 50 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.121
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$113,483.60 $48,209.00 $20,326.60 $44,948.00 15.95 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $112.91

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $587.80

(v )

110% PBGC 

Guarantee

$646.58

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

42.48% 17.91% 39.61%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$332.50 $735.27

(bb )

Tier 1 

Benefit

$274.67

(cc )

Tier 2 

Accrual

$101.63

(dd )

Tier 2 

Minimum

$0.00

(ee )

Tier 2 

Benefit

10. $101.63

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$1,856.41 16.442 0.5% 50% 40%

EXAMPLE 51 Calculation of the Proposed Benefit Suspension of a Tier 1, 2, and 3 Terminated Vested Participant with less than 20 Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.122
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$113,483.60 $48,209.00 $20,326.60 $44,948.00 15.95 1 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,856.41 16.442 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$224.74

(gg )

Tier 3 

Minimum

$0.00

(hh )

Tier 3 Benefit

13. $224.74

(ii )

Sum of Tier 

Benefits

14. $601.04

(jj )

Maximum 

Suspendable

$1,209.83

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $1,209.83

(mm )

Post 

Suspension 

Benefit

18. $646.58

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

A portion of the benefit suspension of the participant s monthly benefit of $1,856.41 (Monthly Benefit - a ) is applied to the maximum extent permissible because 42.48% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. 

The portion of the participant s benefit attributable to service with Tier 2 and Tier 3 employers (Tier 2 Percentage - x and Tier 3 Percentage - y ) is proposed to be suspended to 0.5% (Contribution Accrual Rate - h ) of $20,326.60 (Tier 2 Contributions - d ) and 0.5% 

(Contribution Accrual Rate - h ) of $44,948 (Tier 3 Contributions - e ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and there is no 

disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. However, the guarantee-based limitation applies because $646.58 (110% PBGC Guarantee - v ) is higher than $601.04 (Sum of Tier Benefits - 

ii ), the reduced benefit amount per the proposed suspension. As a result, the maximum amount that can be suspended is $1,209.83 (Maximum Suspendable - jj ) and the participant s monthly benefit would be reduced to $646.58 (Post Suspension Benefit - mm ).

EXAMPLE 51 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.123
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$113,483.60 $48,209.00 $20,326.60 $44,948.00 15.95 1 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$1,856.41 16.442 0.5% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 51 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.124
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$153,388.80 $39,112.60 $82,144.20 $32,132.00 31.581 1 1 60 $0.00

(s )

Benefit 

Accrual

1. $79.08

(t)

PBGC 

Accrual

2. $35.75

(u )

PBGC 

Guarantee

3. $1,142.28

(v )

110% PBGC 

Guarantee

$1,256.51

(w )

Tier 1 

Percentage

(x )

Tier 2 

Percentage

(y )

Tier 3 

Percentage

25.50% 53.55% 20.95%

(z )

Tier 2 Share 

of Benefit

(aa )

Tier 3 Share 

of Benefit

$1,353.12 $529.29

(bb )

Tier 1 

Benefit

$320.40

(cc )

Tier 2 

Accrual

$821.44

(dd )

Tier 2 

Minimum

$676.56

(ee )

Tier 2 

Benefit

10. $821.44

5. Tier 1 Percentage (w ) = Tier 1 Contributions (c ) / Total Contributions (b ) ;

Tier 2 Percentage (x ) = Tier 2 Contributions (d ) / Total Contributions (b ) ;

Tier 3 Percentage (y ) = Tier 3 Contributions (e ) / Total Contributions (b )

6. Tier 2 Share of Benefit (z ) = Tier 2 Percentage (x ) x Monthly Benefit ( a ) ;

Tier 3 Share of Benefit (aa ) = Tier 3 Percentage (y ) x Monthly Benefit ( a )

7. Tier 1 Benefit (bb ) = Tier 1 Percentage (w ) x 110% PBGC Guarantee (v ) 

8. Tier 2 Accrual (cc ) = Tier 2 Contributions (d ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

9. Tier 2 Minimum (dd ) = if Contributory Service (f ) >= 20 then

 Tier 2 Share of Benefit (z ) x (1 - Tier 2 Suspension Cap (i )) 

 otherwise $0

Tier 2 Benefit (ee ) = the greater of Tier 2 Accrual (cc ) or Tier 2 Minimum (dd )

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

Benefit Accrual (s ) = Monthly Benefit (a ) / PBGC Years of Service (g )

PBGC Accrual (t) = 100% of the first $11 in (s ) + 75% of the next $33 in (s )

PBGC Guarantee (u ) = PBGC Accrual (t) x PBGC Years of Service (g )

4. 110% PBGC Guarantee (v ) = PBGC Guarantee (u ) x 110%

N/A 1 N/A N/A

LANE 6 LANE 7

$2,526.70 31.952 1.0% 50% 40%

EXAMPLE 52 Calculation of the Proposed Benefit Suspension of a Tier 1, 2, and 3 Terminated Vested Participant with 20 or more Years of Contributory Service

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

Computation of the PBGC 

Guarantee

Computation of the 

Proposed Benefit 

Suspension By Tier

9.2.125
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$153,388.80 $39,112.60 $82,144.20 $32,132.00 31.581 1 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$2,526.70 31.952 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

(ff )

Tier 3 

Accrual

$321.32

(gg )

Tier 3 

Minimum

$317.57

(hh )

Tier 3 Benefit

13. $321.32

(ii )

Sum of Tier 

Benefits

14. $1,463.16

(jj )

Maximum 

Suspendable

$1,063.54

(kk )

Applicable 

Percentage

16. 100.00%

(ll )

Suspended 

Amount

17. $1,063.54

(mm )

Post 

Suspension 

Benefit

18. $1,463.16

12. Tier 3 Minimum (gg ) = if Contributory Service (f ) >= 20 then

 Tier 3 Share of Benefit (aa ) x (1 - Tier 3 Suspension Cap (j )) 

 otherwise $0

Tier 3 Benefit (hh ) = the greater of Tier 3 Accrual (ff ) or Tier 3 Minimum (gg )

Sum of Tier Benefits (ii ) = Tier 1 Benefit (bb ) + Tier 2 Benefit (ee ) + Tier 3 Benefit (hh )

15. Maximum Suspendable (jj ) = Monthly Benefit (a ) - the greater of 110% PBGC

 Guarantee (v ), Sum of Tier Benefits (ii ), or 

 Amount Based on Disability (r ) except that where the result is

 less than zero then zero.

Applicable Percentage (kk ) = Months to Age 80 (q ) / 60

Suspended Amount (ll ) = Maximum Suspendable (jj ) x Applicable Percentage (kk )

Post Suspension Benefit (mm ) = Monthly Benefit (a ) - Suspended Amount (ll )

A portion of the benefit suspension of the participant s monthly benefit of $2,526.70 (Monthly Benefit - a ) is applied to the maximum extent permissible because 25.5% (Tier 1 Percentage - w ) of the participant s benefit is attributable to service with Tier 1 employers. 

The portion of the participant s benefit attributable to service with Tier 2 and Tier 3 employers (Tier 2 Percentage - x and Tier 3 Percentage - y ) is proposed to be suspended to 1% (Contribution Accrual Rate - h ) of $82,144.20 (Tier 2 Contributions - d ) and 1% 

(Contribution Accrual Rate - h ) of $32,132 (Tier 3 Contributions - e ). In this example, there is no applicable age-based limitation because the participant has not reached age 75 as of the effective date of the suspension (see Months To Age 80 - q ) and there is no 

disability-based limitation because $0 (Amount Based on Disability - r ) of the participant s benefit is based on disability. The guarantee-based limitation does not apply because $1,256.51 (110% PBGC Guarantee - v ) is lower than $1,463.16 (Sum of Tier Benefits - 

ii ), the reduced benefit amount per the proposed suspension. As a result, the participant s monthly benefit would be reduced to $1,463.16 (Post Suspension Benefit - mm ).

EXAMPLE 52 (continued)

11. Tier 3 Accrual (ff ) = Tier 3 Contributions (e ) x Contribution Accrual Rate (h ) x

 Early Retirement Factor (l ) x Joint and Survivor Factor (o ) x 

 Survivor Benefit Factor (p )

Application of the 

Guarantee-Based 

Limitation, the DisabilityBased Limitation, and the 

Age-Based Limitation

Monthly Benefit Amount 

After the Proposed Benefit 

Suspension is Applied.

9.2.126
Central States, Southeast and Southwest Areas Pension Plan

Illustration of How the Proposed Benefit Suspension Affects Individuals in Each Category Differently 

(b )

Total 

Contributions

(c )

Tier 1 

Contributions

(d )

Tier 2 

Contributions

(e )

Tier 3 

Contributions

(f )

Contributory 

Service

(o )

Joint and 

Survivor 

Factor

(p )

 Survivor 

Benefit 

Factor

(q )

Months To 

Age 80 

(r )

 Amount 

Based On 

Disability

$153,388.80 $39,112.60 $82,144.20 $32,132.00 31.581 1 1 60 $0.00

LANE 1 LANE 2 LANE 3 LANE 4 LANE 5

N/A 1 N/A N/A

LANE 6 LANE 7

$2,526.70 31.952 1.0% 50% 40%

 (a )

Monthly

Benefit 

(g )

 PBGC Years 

of Service

(h )

Contribution 

Accrual Rate

(i )

Tier 2 

Suspension Cap

(j )

 Tier 3 

Suspension Cap

(k )

Participant Age 

at Retirement

(l )

Early Retirement 

Factor

(m )

Spouse Age at 

Retirement

(n )

Form of Payment

No

No

No

No

No

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(b)(1)(A) exclusion of certain benefits and benefit increases in effect for less than 60 months?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the limitations contained in the section 4022A(c)(2) definition of the accrual rate used for calculating the monthly guaranteed benefit (the accrual rate must be based on a benefit that is no greater than the monthly benefit 

payable under the plan at normal retirement age in the form of a single life annuity (for example, if the benefit reflected an actuarial increase related to delayed retirement or is paid in the form of a social security level income option) and must be calculated without regard to any reduction under § 

411(a)(3)(E), divided by years of credited service (credited service cannot exceed 1 year for any year of participation))?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(d) limitation that the guaranteed benefit will not exceed the benefit calculated under the plan as reduced under § 411(a)(3)(E)?

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(e) exclusion, pursuant to section 4022(b)(6), of benefits that would not be guaranteed if paid under a single-employer plan (benefits paid from a plan that does not satisfy the requirements of § 401(a) 

or § 404(a)(2))?

EXAMPLE 52 (continued)

Is the monthly guaranteed benefit calculated under section 4022A reduced on account of the section 4022A(a) exclusion of certain forfeitable benefits (for example, increased benefits that have not become part of the accrued benefit)?

9.2.127